The URL can be used to link to this page

Home My WebLink About2024-07-22 City Council Meeting Packet AGENDA MAPLEWOOD CITY COUNCIL 7:00 P.M. Monday, July 22, 2024 City Hall, Council Chambers Meeting No. 14-24 A. CALL TO ORDER B. PLEDGE OF ALLEGIANCE C. ROLL CALL D. APPROVAL OF AGENDA E. APPROVAL OF MINUTES 1. July 08, 2024 City Council Workshop Meeting Minutes 2. July 08, 2024 City Council Meeting Minutes F. APPOINTMENTS AND PRESENTATIONS 1. Administrative Presentations a. Council Calendar Update 2. Council Presentations 3. 2023 Annual Comprehensive Financial Report G. CONSENT AGENDA – Items on the Consent Agenda are considered routine and non- controversial and are approved by one motion of the council. If a councilmember requests additional information or wants to make a comment regarding an item, the vote should be held until the questions or comments are made then the single vote should be taken. If a councilmember objects to an item it should be removed and acted upon as a separate item. 1. Approval of Claims 2. Call for Special Meeting to Canvass 2024 Primary Election Results 3. Public Safety Aid Funds Transfer 4. Resolution Supporting Application for a Minnesota Department of Employment and Economic Development (DEED) Contamination Cleanup Grant, 1375 Frost Avenue East 5. Memorandum of Agreement with Minnesota North College for Clinical Internships with the City of Maplewood 6. Contract Modification Number 01 with Leo A. Daly Architect for the East Metro Public Safety Training Facility H. PUBLIC HEARINGS – If you are here for a Public Hearing please familiarize yourself with the Rules of Civility printed on the back of the agenda. Sign in with the City Clerk before addressing the council. At the podium please state your name and address clearly for the record. All comments/questions shall be posed to the Mayor and Council. The Mayor will then direct staff, as appropriate, to answer questions or respond to comments. 1. Hill-Murray Project Public Hearing I. UNFINISHED BUSINESS None J. NEW BUSINESS 1. Resolution Ordering the Abatement of Hazardous Building and Public Nuisance Conditions at 1279 Ripley Avenue East 2. Harvest Park Master Plan 3. EAB Private Ash Tree Relief Policy K. AWARD OF BIDS None L. ADJOURNMENT Sign language interpreters for hearing impaired persons are available for public hearings upon request. The request for this must be made at least 96 hours in advance. Please call the City Clerk’s Office at 651.249.2000 to make arrangements. Assisted Listening Devices are also available. Please check with the City Clerk for availability. RULES OF CIVILITY FOR THE CITY COUNCIL, BOARDS, COMMISSIONS AND OUR COMMUNITY Following are rules of civility the City of Maplewood expects of everyone appearing at Council Meetings - elected officials, staff and citizens. It is hoped that by following these simple rules, everyone’s opinions can be heard and understood in a reasonable manner. We appreciate the fact that when appearing at Council meetings, it is understood that everyone will follow these principles: Speak only for yourself, not for other council members or citizens - unless specifically tasked by your colleagues to speak for the group or for citizens in the form of a petition. Show respect during comments and/or discussions, listen actively and do not interrupt or talk amongst each other. Be respectful of the process, keeping order and decorum. Do not be critical of council members, staff or others in public. Be respectful of each other’s time keeping remarks brief, to the point and non-repetitive. E1 MINUTES MAPLEWOOD CITY COUNCIL MANAGER WORKSHOP 6:00P.M. Monday, July08, 2024 City Hall, Council Chambers A.CALL TO ORDER A meeting of the City Council was heldin the City Hall Council Chambers and was called to order at6:00 p.m.by Mayor Abrams. B.ROLL CALL Marylee Abrams, MayorPresent Rebecca Cave, CouncilmemberPresent Kathleen Juenemann, CouncilmemberPresent Chonburi Lee, CouncilmemberPresent Nikki Villavicencio, CouncilmemberPresent C.APPROVAL OF AGENDA CouncilmemberLee moved toapprove the agenda as submitted. Seconded by CouncilmemberCave Ayes– All The motion passed. D.UNFINISHED BUSINESS None E.NEW BUSINESS 1.Intent to Close Meeting Pursuant to Minn. Stat. Section 13D.05 subd.3(a) City Manager 90-Day Review Update Mayor Abrams moved pursuant to Minn. Stat. Section 13D.05 subd. 3(a), to close the regular meeting and go into closed session to conduct the 90-day performance evaluation of City Manager Michael Sable. Seconded by Councilmember Juenemann Ayes– All The motion passed. Mayor Abrams closed the meeting at 6:02p.m. Present at the closed session: Mayor Abrams, Councilmember Cave, Councilmember Juenemann, Councilmember Lee, Councilmember Villavicencio, and City Manager Sable. Mayor Abrams called the meeting back to order at 6:17p.m. Mayor Abrams gave a summary of City Manager Sable’s 90-day performance evaluation. July08, 2024 Council Manager Workshop Minutes 1 Council Packet Page Number 1 of 380 E1 2.DR Horton Concept Plan Review, Ramsey County’s Former Ponds at Battle Creek Golf Course Community Development Director Parr introduced the agenda item. Deb Ridgeway and Mike Suel, with DR Horton gave the presentation. The council shared their visions and asked questions of the presenters. No Action Required. D.ADJOURNMENT Mayor Abramsadjourned the meetingat6:51p.m. July08, 2024 Council Manager Workshop Minutes 2 Council Packet Page Number 2 of 380 E2 MINUTES MAPLEWOOD CITY COUNCIL 7:00 P.M. Tuesday, July 08, 2024 City Hall, Council Chambers Meeting No. 13-24 A.CALL TO ORDER A meeting of the City Council was held in the City Hall Council Chambersand was called to order at7:01byMayor Abrams. Mayor Abrams reflected onthe cancellation of the Light It Up event and mentioned the fireworks are tentatively rescheduled for September 18, 2024 in conjunction with the Touch-a-Truck event. B.PLEDGE OF ALLEGIANCE C.ROLL CALL Marylee Abrams, MayorPresent Rebecca Cave, CouncilmemberPresent Kathleen Juenemann, CouncilmemberPresent Chonburi Lee, CouncilmemberPresent Nikki Villavicencio, CouncilmemberPresent D.APPROVAL OF AGENDA The following items were added to Council Presentations: League of Minnesota CitiesAnnual Conference AANHPI Economic Summit National Night Out CouncilmemberCavemoved to approve the agenda as amended. Seconded by CouncilmemberJuenemann Ayes – All The motion passed. E.APPROVAL OF MINUTES 1.June 24, 2024 City Council Workshop Meeting Minutes CouncilmemberLeemoved to approve the June 24, 2024 City Council Workshop MeetingMinutes assubmitted. Seconded by CouncilmemberCaveAyes – All July 08, 2024 City Council Meeting Minutes 1 Council Packet Page Number 3 of 380 E2 The motion passed. 2.June24, 2024 City Council Meeting Minutes CouncilmemberJuenemannmoved to approve the June 24, 2024 City Council Meeting Minutes assubmitted. Seconded by CouncilmemberVillavicencioAyes – All The motion passed. F.APPOINTMENTS AND PRESENTATIONS 1.Administrative Presentations a.Council Calendar Update City ManagerSablegave an update to the council calendar and reviewed other topics of concern or interest requested by councilmembers. 2.Council Presentations League of Minnesota Cities Councilmember Leeshared attending the League of Minnesota Cities annual conference with Mayor Abrams and City Manager Sable and gave a recap. AANHPI Economic Summit Councilmember Leeshared attending the Asian American, Native Hawaiian and Pacific Islander Economic Summit with Councilmember Villavicencio and gave a recap. National Night Out Councilmember Juenemannannounced National Night Out will be held Tuesday, August th 6and encouraged residents toregister for a party. G.CONSENT AGENDA – Items on the Consent Agenda are considered routine and non- controversial and are approved by one motion of the council. If a councilmember requests additional information or wants to make a comment regarding an item, the vote should be held until the questions or comments are made then the single vote should be taken. If a councilmember objects to an item it should be removed and acted upon as a separate item. Agenda items G3 & G4 were highlighted. CouncilmemberCavemoved toapprove agenda items G1-G4. Seconded by CouncilmemberLee Ayes – All July 08, 2024 City Council Meeting Minutes 2 Council Packet Page Number 4 of 380 E2 The motion passed. 1.Approval of Claims CouncilmemberCavemoved to approve the approval of claims. ACCOUNTS PAYABLE: $ 1,721,830.30 Checks # 121280 thru # 121340 dated 06/28/24 $ 456,288.50 Disbursements via debits to checking account dated 06/17/24 thru 06/30/24 $ 2,178,118.80 Total Accounts Payable PAYROLL $ 752,824.23 Payroll Checks and Direct Deposits dated 06/21/24 $ 752,824.23 Total Payroll $ 2,930,943.03 GRAND TOTAL Seconded by Councilmember LeeAyes – All The motion passed. 2.Conditional Use Permit Review, St. John’s Hospital, 1575 Beam Avenue CouncilmemberCavemoved to approve the CUP review for St. John’s Hospital, located at 1575 Beam Avenue East, and review only if a problem arises or a significant change is proposed. Seconded by CouncilmemberLeeAyes – All The motion passed. 3.Conditional Use Permit Review, Cochran Recovery Services, 2000 White Bear Avenue CouncilmemberCavemoved to approve theCUP review for Cochran Recovery Services, located at 2000 White Bear Avenue North, and review only if a problem arises or a significant change is proposed. Seconded by CouncilmemberLeeAyes – All July 08, 2024 City Council Meeting Minutes 3 Council Packet Page Number 5 of 380 E2 The motion passed. 4.Conditional Use Permit Review, Kline Nissan, 3090 Maplewood Drive CouncilmemberCavemoved to approve the CUP review for Kline Nissan, located at 3090 Maplewood Drive North, and review again in one year. Seconded by Councilmember Lee Ayes – All The motion passed. H.PUBLIC HEARINGS – If you are here for a Public Hearing please familiarize yourself with the Rules of Civility printed on the back of the agenda. Sign in with the City Clerk before addressing the council. At the podium please state your name and address clearly for the record. All comments/questions shall be posed to the Mayor and Council. The Mayor will then direct staff, as appropriate, to answer questions or respond to comments. None I.UNFINISHED BUSINESS 1.Abatement Agreement Regarding Conditions Creating a Hazardous Property and Public Nuisance, 1145 Glendon St N Community Development Director Parr gave the staff report. oved to approve the Abatement Agreement for the property CouncilmemberCavem located at 1145 Glendon St N and authorize the mayor and city clerkto execute the agreement andfor the city attorney tomake minor revisions that may be needed. Seconded by Councilmember JuenemannAyes – All The motion passed. J.NEW BUSINESS None K.AWARD OF BIDS 1.Resolution Receiving Bids and Awarding Construction Contract, 2024 EAB Mitigation Project, City Project 23-17 Public Works Director Love gave the staff report. CouncilmemberJuenemannmoved to approve the resolution receiving bids and awarding a construction contract for the 2024 EAB Mitigation Project, City Project 23-17, to TreeStory, Inc. Resolution 24-07-2330 July 08, 2024 City Council Meeting Minutes 4 Council Packet Page Number 6 of 380 E2 RECEIVING BIDS AND AWARDING CONSTRUCTION CONTRACT WHEREAS, pursuant to a resolution of the City Council adopted April 22nd, 2024, that approved a grant agreement between the City of Maplewood and the Minnesota Department of Natural Resources forthe Shade Tree Program Bonding Grants, 2023-2027, and WHEREAS, pursuant to a resolution passed by the City Council on May 28, 2024, approving plans and specifications and advertising for bids for the 2024 EAB Mitigation Project, City Project 23-17, and WHEREAS, the plans and specifications were advertised for bids, and WHEREAS, bids were received and opened on June 25, 2024 at 10:00 A.M. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF MAPLEWOOD, MINNESOTA that the bid of TreeStory, Inc. in the amount of $537,000 is the lowest responsible bid for the completion of the 2024 EAB Mitigation Project, City Project 23-17, and the Mayor and the City Manager are hereby authorized and directed to enter into a contract with said bidder for and on behalf of the City. The financing plan for the 2024 EAB Mitigation Project, City Project 23-17 includes a $450,000 contribution from the MN DNR in the form of a Shade Tree Bonding Grant and a contribution from the Street Revitalization fund in the amount of $87,000. The Finance Director is hereby authorized to make the financial transfers necessary to implement the financing plan for the project. Seconded by CouncilmemberVillavicencio Ayes – All The motion passed. 2.Resolution Receiving Bids and AwardingConstruction Contract, 2024 Maplewood Stump Grinding Project, City Project 24-09 Public Works Director Love gave the staff report. CouncilmemberJuenemannmoved to approve the resolution receiving bids and awarding a construction contract for the 2024 Maplewood Stump Grinding Project, City Project 24-09, to TreeStory, Inc. Resolution 24-07-2331 RECEIVING BIDS AND AWARDING CONSTRUCTION CONTRACT WHEREAS, the plans and specifications for the 2024 Maplewood Stump Grinding Project, City Project 24-09 were advertised for bids, and WHEREAS, bids were received and opened on June 28, 2024 at 10:00 A.M. July 08, 2024 City Council Meeting Minutes 5 Council Packet Page Number 7 of 380 E2 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF MAPLEWOOD, MINNESOTA that the bid of TreeStory, Inc. in the amount of $134,805.00 is the lowest responsible bid for the completion of the 2024 Maplewood Stump Grinding Project, City Project 24-09, and the Mayor and the City Manager are hereby authorized and directed to enter into a contract with said bidder for and on behalf of the City. The cost for the 2024 Maplewood Stump Grinding Project, City Project 24-09 shall be paid for via the Street Revitalization fund. The Finance Director is hereby authorized to make the financial transfers necessary to implement the financing plan for the project. Seconded by Councilmember LeeAyes – All The motion passed. L.ADJOURNMENT Mayor Abrams adjourned the meeting at 7:31p.m. July 08, 2024 City Council Meeting Minutes 6 Council Packet Page Number 8 of 380 F1a CITY COUNCIL STAFF REPORT Meeting DateJuly 22, 2024 REPORT TO: City Council REPORT FROM: Michael Sable, City Manager PRESENTER: Michael Sable, City Manager AGENDA ITEM: Council Calendar Update Action Requested: Motion Discussion Public Hearing Form of Action: Resolution Ordinance Contract/Agreement Proclamation Policy Issue: This item is informational and intended to provide the Council an indication on the current planning for upcoming agenda items and the Work Session schedule. These are not official announcements of the meetings, but a snapshot look at the upcoming meetings for the City Council to plan their calendars. Recommended Action: No motion needed. This is an informational item. Upcoming Agenda Items and Work Sessions Schedule: August 12: EDA Meeting: TIF Review and Housing Strategy August 16: Special Council Meeting: Canvass of Primary Election Results August 26: Workshop: Public Safety Tabletop September 9: Workshop: Public Safety Tabletop September 9: Council Meeting: 2025 Preliminary Levy Council Comments: Comments regarding Workshops, Council Meetings or other topics of concern or interest. Council Packet Page Number 9 of 380 F1a 2024 Major Community Outreach Events National Night Out Tuesday, August 6 (5 – 9 pm) City Wide Event Cop on a Rooftop for Special Olympics Friday, August 16 (6 – 11:30 am) Dunkin Donuts (County Road D / Hwy 610 Celebrate Summer - August Wednesday, August 21 (5:30 – 8 pm) Afton Heights Park Touch a Truck / Light It Up Maplewood Wednesday, September (Time TBD) Location TBD Fire Department Open House Saturday, October 5 (Time TBD) North Fire Station Trunk or Treat Sunday, October 27 (1 - 4 pm) City Hall Parking Lot Council Packet Page Number 10 of 380 F3 CITY COUNCIL STAFF REPORT Meeting Date July 22, 2024 REPORT TO:Michael Sable, City Manager REPORT FROM: Joe Rueb, Finance Director PRESENTER:Joe Rueb, Finance Director AGENDA ITEM: 2023 Annual Comprehensive Financial Report Action Requested: Motion Discussion Public Hearing Form of Action: Resolution Ordinance Contract/Agreement Proclamation Policy Issue: The City Council will review and consider acceptance of the 2023 Annual Comprehensive Financial Report. The City’s external auditors, BerganKDV, will present the report. The auditors issued an unmodified opinion on the report, the highest opinion given. Recommended Action: Motion to accept the Maplewood 2023 Annual Comprehensive Financial Report. Fiscal Impact: Is There a Fiscal Impact? No Yes, the true or estimated cost is N/A Financing source(s): Adopted Budget Budget Modification New Revenue Source Use of Reserves Other: N/A Strategic Plan Relevance: Community Inclusiveness Financial & Asset Mgmt Environmental Stewardship Integrated Communication Operational Effectiveness Targeted Redevelopment Minnesota law requires the City to have an annual external audit. The audit provides reasonable assurance to the City Council and stakeholders that the financial statements are free of material misstatement and that the financial report is complete and reliable. Background: The Annual Comprehensive Financial Report (ACFR) of the City is complete for the year-ended December 31, 2023. The report is the City’s official annual report prepared by the Finance Department. The certified public accounting firm BerganKDV has audited the information contained in the report. Their unmodified opinion on the fair presentation of the financial statements is included within the report. The report includes the Independent Auditor’s Report and the Reports on Compliance with Government Auditing Standards Uniform Grant Guidance. A Legal Compliance Report and Communications Letter are included for your review. There were no audit findings. Council Packet Page Number 11 of 380 F3 Members of the City Council have received a copy of the Annual Comprehensive Financial Report and supporting documentation. An electronic version will be available on the City’s website. Attachments: 1.BerganKDV PowerPoint 2. BerganKDV Communications Letter 3. BerganKDV Legal Compliance Report 4. Maplewood Annual Comprehensive Financial Report for the Year Ended December 31, 2023 Council Packet Page Number 12 of 380 F3, Attachment 1 Audit Presentation City of Maplewood Council Packet Page Number 13 of 380 F3, Attachment 1 The Audit Council Packet Page Number 14 of 380 F3, Attachment 1 Ïno significant deficiencies or material weaknesses in internal Independent AuditorÔs Report ÑunmodifiedÒ or ÑcleanÒ opinion. Government Auditing Standards controlIndependent AuditorÔs Report on Minnesota Legal Compliance Ïno compliance findings Independent AuditorÓs Report Council Packet Page Number 15 of 380 F3, Attachment 1 Financial Communications Council Packet Page Number 16 of 380 F3, Attachment 1 General Fund Revenues Council Packet Page Number 17 of 380 F3, Attachment 1 General Fund Revenues ÎBudget to Actual Council Packet Page Number 18 of 380 F3, Attachment 1 General Fund Revenues Council Packet Page Number 19 of 380 F3, Attachment 1 General Fund Expenditures Council Packet Page Number 20 of 380 F3, Attachment 1 Budget to Actual General Fund Expenditures Î Council Packet Page Number 21 of 380 F3, Attachment 1 General Fund ÎExpenditures Council Packet Page Number 22 of 380 F3, Attachment 1 General Fund Operations Council Packet Page Number 23 of 380 F3, Attachment 1 Tax Capacity, Levy and Rates Council Packet Page Number 24 of 380 F3, Attachment 1 Ambulance Service Fund Council Packet Page Number 25 of 380 F3, Attachment 1 Environmental Utility Fund Council Packet Page Number 26 of 380 F3, Attachment 1 Recycling Project Fund Council Packet Page Number 27 of 380 F3, Attachment 1 Sanitary Sewer Fund Council Packet Page Number 28 of 380 F3, Attachment 1 Street Light Utility Fund Council Packet Page Number 29 of 380 F3, Attachment 1 Auditor Council Packet Page Number 30 of 380 F3, Attachment 1 AUDIT SHAREHOLDER952-563-6862ANDY.GRICE@CREATIVEPLANNING.COM Andrew Grice Council Packet Page Number 31 of 380 F3, Attachment 1 Thank You Council Packet Page Number 32 of 380 F3, Attachment 1 tained herein has been obtained This commentary is provided for general information purposes only, should not be construed as investment, tax or legal advice, and does not constitute an attorney/client relationship. Past performance of any market results is no assurance of future performance. The information confrom sources deemed reliable but is not guaranteed. Council Packet Page Number 33 of 380 F3, Attachment 2 City of Maplewood Communications Letter December 31,2023 Council Packet Page Number 34 of 380 F3, Attachment 2 City of Maplewood Table of Contents Report on Matters Identified as a Result of the Audit of the Basic Financial Statements 1 Required Communication 3 Financial Analysis 7 Emerging Issue 20 Council Packet Page Number 35 of 380 F3, Attachment 2 Report on Matters Identified as a Result of the Audit of the Basic Financial Statements Honorable Mayor,Members of the City Council, and Management City of Maplewood Maplewood,Minnesota In planning and performing our audit of the basic financial statements of the governmental activities, business-type activities,each major fund,and the aggregate remaining fund information of the City of Maplewood,Minnesota,as of and for the year ended December 31,2023,in accordance with auditing standards generally accepted in the United States of Americaand the standards to financial audits contained in Government Auditing Standards,issued by the Comptroller General of the United States,we considered the City's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinionson the financial statements,but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly,we do not express an opinion on the effectiveness of the City'sinternal controlover financial reporting. Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and, therefore, material weaknesses or significant deficiencies may exist that have not been identified. In addition, because of inherent limitations in internal control, including the possibility of management override of controls, misstatements due to error, or fraud may occur and not be detected by such controls. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the City's basic financial statements will not be prevented, or detected and corrected, on a timely basis. A reasonable possibility exists when the likelihood of an event occurring is either reasonably possible or probable as defined as follows: Reasonably possible. The chance of the future event or events occurring is more than remote but less than likely. Probable. The future event or events are likely to occur. We did not identify any deficiencies in internal control that we consider to be material weaknesses. A significant deficiency is a deficiency,or a combination of deficiencies,in internal control that is less severe than a material weakness,yet important enough to merit attention by those charged with governance. The accompanying memorandum also includes financial analysis provided as a basis for discussion. The matters discussed herein were considered by us during our audit and they do not modify the opinion expressed in our Independent Auditor's Report dated June 21, 2024, on such statements. 1 Council Packet Page Number 36 of 380 F3, Attachment 2 This communication, which is an integral part of our audit,is intended solely for the information and use of the Members of the City Council,management and others within the City,and state oversight agencies and is not intended to be, and should not be, used by anyone other than these specified parties. Minneapolis,Minnesota June 21,2024 2 Council Packet Page Number 37 of 380 F3, Attachment 2 City of Maplewood Required Communication We have audited the basic financial statements of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of the City as of and for the year ended December 31, 2023. Professional standards require that we advise you of the following matters related to our audit. Our Responsibility in Relation to the Financial Statement Audit As communicated in our engagement letter, our responsibility, as described by professional standards, is to form and express opinions about whether the basic financial statements prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America. Our audit of the basic financial statements does not relieve you or management of its respective responsibilities. Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the basic financial statements are free of material misstatement. An audit of the basic financial statements includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control over financial reporting. Accordingly, as part of our audit, we considered the internal control of the City solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control. We are also responsible for communicating significant matters related to the audit that are, in our professional judgement, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures for the purpose of identifying other matters to communicate to you. Generally accepted accounting principles provide for certain Required Supplementary Information (RSI) to supplement the basic financial statements. Our responsibility with respect to the RSI, which supplements the basic financial statements, is to apply certain limited procedures in accordance with generally accepted auditing standards. However, the RSI was not audited and, because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance, we do not express an opinion or provide any assurance on the RSI. Our responsibility for the supplementary information accompanying the basic financial statements, as described by professional standards, is to evaluate the presentation of the supplementary information in relation to the basic financial statements as a whole and to report on whether the supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. Our responsibility with respect to the other information in documents containing the audited basic financial statements and auditor's report does not extend beyond the basic financial information identified in the report. We have no responsibility for determining whether this other information is properly stated. This other information was not audited, and we do not express an opinion or provide any assurance on it. 3 Council Packet Page Number 38 of 380 F3, Attachment 2 City of Maplewood Required Communication Our Responsibility in Relation to Government Auditing Standards As communicated in our engagement letter, part of obtaining reasonable assurance about whether the basic financial statements are free of material misstatement, we performed tests of the City's compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of basic financial statement amounts. However, the objective of our tests was not to provide an opinion on compliance with such provisions. Planned Scope and Timing of the Audit We conducted our audit consistent with the planned scope and timing we previously communicated to you. Compliance with All Ethics Requirements Regarding Independence The engagement team, others in our firm, as appropriate, our firm, and our network firms have complied with all relevant ethical requirements regarding independence. Significant Risks Identified We have identified the following significant risks of material misstatement: Riskof Improper Revenue Recognition Revenue recognition is considered a fraud risk on substantially all engagements as it is generally the largest line item impacting a City's change in fund balance or net position. Riskof Misappropriation of Assets Misappropriation of Assets is considered a risk in substantially all engagements as assets may be misappropriated due to fraud or error. Riskof Management Override of Controls Management override of internal control is considered a risk in substantially all engagements as management may be incentivized to produce better results. Risk of Significant estimates for Total Other Post Employment Benefits (OPEB) Liability, Deferred Outflows of Resources Related to OPEB and Deferred Inflows of Resources Related to OPEB, Net Pension Liability, Deferred Outflows of Resources Related to Pensions and Deferred Inflows of Resources Related to Pensions -Accounting estimates are an integral part of the judgements. Qualitative Aspects of the City's Significant Accounting Practices Significant Accounting Policies Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the City is included in the notes to the basic financial statements. There have been no initial selection of accounting policies and no changes to significant accounting policies or their application during 2023. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus. 4 Council Packet Page Number 39 of 380 F3, Attachment 2 City of Maplewood Required Communication Qualitative Aspects of the City's Significant Accounting Practices (Continued) Significant Accounting Estimates Accounting estimates are an integral part of the basic financial statements prepared by management and are based on management's current judgements. Those judgements are normally based on knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the basic financial statements and because of the possibility that future events affecting them may differ markedly from management's current judgements. The most sensitive estimates affecting the basic financial statements relate to: Total Other Post Employment Benefits (OPEB) Liability, Deferred Outflows of Resources Related to OPEB, and Deferred Inflows of Resources Related to OPEB These balances are based on an actuarial study using the estimates of future obligations of the City for post employment benefits. Net Pension Liability, Deferred Outflows of Resources Related to Pensions, and Deferred Inflows of Resources Related to Pensions These balances are based on an allocation by the pension plans using estimates based on contributions. We evaluated the key factors and assumptions used to develop the accounting estimates and determined that they are reasonable in relation to the basic financial statements taken as a whole and in relation to the applicable opinion units. Financial Statement Disclosures Certain basic financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to basic financial statement users. The basic financial statement disclosures are neutral, consistent, and clear. Significant Difficulties Encountered during the Audit We encountered no significant difficulties in dealing with management relating to the performance of the audit. 5 Council Packet Page Number 40 of 380 F3, Attachment 2 City of Maplewood Required Communication Uncorrected and Corrected Misstatements For the purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effects of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the basic financial statements taken as a whole and each applicable opinion unit. Management did not identify, and we did not notify them of any uncorrected financial statement misstatements. In addition, professional standards require us to communicate to you all material, corrected misstatements that were brought to the attention of management as a result of our audit procedures. None of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to the basic financial statements taken as a whole. Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to the City's basic financial statements or the auditor's report. No such disagreements arose during the course of our audit. Representations Requested from Management We have requested certain written representations from management, which are included in the management representation letter. Management's Consultations with Other Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management has informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters. Other Significant Matters, Findings, or Issues In the normal course of our professional association with the City, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, significant events or transactions that occurred during the year, operating and regulatory conditions affecting the City, and operating plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as the City's auditor. Other Information Included in Annual Reports Pursuant to professional standards, our responsibility as auditors for other information, whether financial or nonfinancial, included in the City's annual reports, does not extend beyond the information identified in the audit report, and we are not required to perform any procedures to corroborate such other information. We applied certain limited procedures to the RSI that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI. 6 Council Packet Page Number 41 of 380 F3, Attachment 2 City of Maplewood Financial Analysis With respect to the supplementary information accompanying the financial statements, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the basic financial statements or to the basic financial statements themselves. We were not engaged to report on the other information accompanying the financial statements but are not RSI. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it. The following pages provide graphic representation of select data pertaining to the financial position and operations of the City for the past five years. Our analysis of each graph is presented to provide a basis for discussion of past performance and how implementing certain changes may enhance future performance. We suggest you view each graph and document if our analysis is consistent with yours. A subsequent discussion of this information should be useful for planning purposes. General Fund Revenues The General Fund revenues for the past five years are depicted in the following graph: General Fund Revenues $27,500,000 $25,000,000 $22,500,000 $20,000,000 $17,500,000 $15,000,000 $12,500,000 $10,000,000 $7,500,000 $5,000,000 $2,500,000 $- $(2,500,000) 20192020202120222023 Miscellaneous $61,673$72,984$49,709$152,361$128,052 Investment Income311,788260,862(73,522)(449,216)625,400 Fines and Forfeits 163,016130,099144,747153,347164,131 Charges for Services 1,106,7251,339,1521,132,0401,100,420769,275 Special Assessments 101464157-277 Intergovernmental1,456,0571,646,1355,907,3521,396,6512,590,152 Licenses and Permits 1,444,5031,914,0371,955,9262,436,0192,331,544 Taxes 15,980,15917,347,52217,076,99118,088,12919,546,242 7 Council Packet Page Number 42 of 380 F3, Attachment 2 City of Maplewood Financial Analysis General Fund Revenues (Continued) General Fund revenues increased $3,277,362, or 14.3% during the year, from $22,877,711 in 2022 to $26,155,073 in 2023. The largest fluctuation was in taxes which increased $1,458,113 or 8.1%, due to an increase in the tax levy. Intergovernmental revenue increased $1,193,501 or 85.5%, due to receiving public safety aid from the state, which was new in 2023. Investment Income increased $1,074,616 or 239.2%, due to an increase in interest rates, market conditions, and unrealized gain on investments. Charges for services decreased $331,145 or 30.1% primarily due to the DMV closing during 2023. The chart below presents a comparison of budget and actual General Fund revenues by source. The chart shows the City's actual revenues and other financing sources of $28,094,458 were over the budget of $25,272,299 by $2,822,160, or 11.2%. Intergovernmental was over budgeted amounts by $1,303,292. This was due to the city receive public safety aid from the state which was unknown during budgeting process. License and permits were over budget $705,744 and investment income over budget $565,400 due to budgeting conservatively as these revenues fluctuate from year to year. Taxes were under budget $213,496 due to less collections than anticipated. Charges for services were under budget $210,125 due to the DMV closing during mid-2023, but had a budget for all 2023. Revenues in all other categories were relatively consistent with budgeted amounts. Over/(Under) BudgetActualBudgetPercent Taxes19,759,738$ 19,546,242$ (213,496)$ -1.1% Licenses and permits1,625,800 2,331,544 705,744 43.4% Intergovernmental1,286,860 2,590,152 1,303,292 101.3% Special assessments- 277 277 100.0% Charges for services979,400 769,275 (210,125) -21.5% Fines and forfeits140,000 164,131 24,131 17.2% Investment income60,000 625,400 565,400 942.3% Miscellaneous50,500 128,052 77,552 153.6% Transfers and other sources1,370,000 1,939,385 569,385 41.6% Total revenue and other financing sources25,272,298$ $ 28,094,458$ 2,822,16011.2% Revenues by category, as a percentage of total revenues, are depicted in the graphs on the following page. General Fund revenues by source increased from 2022 to 2023 as a result of increase in intergovernmental revenue, charges for services, and investment income as discussed on the previous page. Overall, taxes accounted for 74.7% and 79.1% of General Fund revenue in 2023 and 2022, respectively. 8 Council Packet Page Number 43 of 380 F3, Attachment 2 City of Maplewood Financial Analysis General Fund Revenues (Continued) 2022 General Fund Revenues Taxes 79.1% Miscellaneous 0.7% Licenses and Investment Permits Income 10.6% -2.0% Charges for Fines and ServicesIntergovernmental Forfeits 6.1% 4.8% 0.7% 9 Council Packet Page Number 44 of 380 F3, Attachment 2 City of Maplewood Financial Analysis General Fund Expenditures The General Fund expenditures for the past five years are depicted in the following graph. General fund expenditures increased 8.0%, from $23,371,005 in 2022 to $25,244,430. Police increased $690,236 due to increased wages and benefits. Fire increased $292,875 due to increased wages and benefits. Public works increased $246,861 due to increased wages and benefits. Capital outlay increased $512,619 due to the taser finance purchase. Finance decreased $244,864 due to the DMV closing mid-2023. All other categories were relatively consistent with the prior year. 10 Council Packet Page Number 45 of 380 F3, Attachment 2 City of Maplewood Financial Analysis General Fund Expenditures (Continued) The chart below presents a comparison of budget and actual General Fund expenditures by function. The Fund's actual expenditures and transfers out of $26,394,430 were over the budget of $25,272,298 by $1,122,132 or 4.4%. Police expenditures had the largest variance as expenditures were under budget by $722,647 or 6.1%, primarily due to staff vacancies, budgeting conservatively, and the taser payments moving to debt service payments but budgeted in police. Finance was under budget by $247,467 or 16.0% due to DMV closing mid-2023. Public works were under budget $200,867 due to budgeting conservatively for wages and benefits, fees for service, and repairs and maintenance. Fire was over budget due to more wages and benefits than anticipated. Capital outlay was over budget $614,061 and debt service of $170,960 due to the issuance of the taser finance purchase and related debt service payments made. Expenditures in all other categories were all under budget and relatively consistent with budgeted amounts. Over/(Under) BudgetActualBudgetPercent Community Development1,684,580$ 1,823,645$ 139,065$ 8.3% Administration1,904,5291,950,55946,0302.4% Finance1,549,8781,302,411(247,467)-16.0% Fire2,689,8372,883,127193,2907.2% Legislative168,366166,404(1,962)-1.2% Parks and Recreation553,686535,355(18,331)-3.3% Police11,866,05811,143,411(722,647)-6.1% Public Works4,855,3644,654,497(200,867)-4.1% Capital Outlay- 614,061 614,061 0.0% Debt Service- 170,960 170,960 0.0% Transfers to other funds - 1,150,0001,150,000 0.0% Total expenditures25,272,298$ 26,394,430$ 1,122,132$ 4.4% Expenditures by function as a percentage of total expenditures are depicted in the graphs on the following page. Police expenditures are the largest component within the General Fund, accounting for 44.4% of the total, followed by public works with 18.6% of total expenditures. 11 Council Packet Page Number 46 of 380 F3, Attachment 2 City of Maplewood Financial Analysis General Fund Expenditures (Continued) 2022 General Fund Expenditures Police 44.8% Parks and Recreation 2.1% Legislative 0.7% Fire 11.1% Public Works 18.9% Finance 6.6% Capital Outlay Community 0.4% Administration Development 8.3% 7.1% 12 Council Packet Page Number 47 of 380 F3, Attachment 2 City of Maplewood Financial Analysis General Fund Operations Revenues exceeded expenditures in 2023 by $910,643. After taking into consideration transfers, proceeds from the sale of capital assets and proceeds from issuance of finance purchase, fund balance increased by $1,700,028 from 2022 to 2023. The unassigned fund balance of $15,364,120 as of December 31, 2023, represents 58.7% of the current year's revenue. This was an increase from the prior year. The unassigned fund balance also represents 60.9% of the current year's expenditures which is in line with the city policy of a minimum of 40% and a desired level of 50%. The bar chart below highlights General Fund results for the last five years. $27,500,000100.0% $25,000,000 $22,500,000 80.0% $20,000,000 $17,500,000 60.0% $15,000,000 $12,500,000 40.0% $10,000,000 $7,500,000 20.0% $5,000,000 $2,500,000 $-0.0% 20192020202120222023 Revenues $20,524,022$22,711,255$26,193,400$22,877,711$26,155,073 Expenditures 20,508,58822,210,96122,072,27123,371,00525,244,430 Unassigned Fund Balance 10,133,91110,900,30113,225,73813,349,89015,364,120 Fund Balance as a Percent of the Year's 49.4%48.0%50.5%58.4%58.7% Revenues 13 Council Packet Page Number 48 of 380 F3, Attachment 2 City of Maplewood Financial Analysis Tax Capacity, Levy, And Rates The chart below graphs the tax capacity, certified tax levy, and City tax rate for 2019 through 2023. The tax capacity is based on total tax capacity, prior to adjustments for captured Tax Increment Financing (TIF) and fiscal disparities. The certified tax levy amount is also prior to fiscal disparity adjustments. With increasing market values, the City's tax capacity increased from 2022 to 2023 by $7,074,892, or 12.6%. With a decreasing tax capacity and 6.55% increase in the levy, the City's tax rate decreased to 40.55%. Tax Capacity, Levy, and Rates $65,000,00080.00% $63,229,418 $60,000,000 70.00% $55,000,000 $56,154,526 $55,877,000 $50,000,000 $52,994,762 60.00% $50,434,970 $45,000,000 50.00% $40,000,000 $35,000,000 44.65% 44.69% 40.00% 43.66% 41.95% $30,000,000 40.55% $25,000,000 30.00% $25,966,460 $24,369,853 $20,000,000 $23,217,300 $23,217,300 $22,109,600 20.00% $15,000,000 $10,000,000 10.00% $5,000,000 $-0.00% 20192020202120222023 Total Tax CapacityCertified Tax LevyTax Capacity Rate *Property tax data was obtained from Ramsey County Department of Property Records and Revenue. 14 Council Packet Page Number 49 of 380 F3, Attachment 2 City of Maplewood Financial Analysis Ambulance Service Funds The Ambulance Service Fund accounts for service charges that are used to finance emergency medical services. The Ambulance Service Fund experienced an operating loss for 2023 totaling $1,490,394. Operating revenues increased $13,084. Operating expenses increased $511,355 due to increased wages and overtime and in turn benefits. The fund also receives property taxes and intergovernmental grants classified as nonoperating revenue. The net position decreased from $3,051,500 in 2022 to $2,423,223 in 2023. The cash balance of the fund at December 31, 2023, was $494,203 which was a decrease of $869,885. Ambulance Service Fund $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $3,583,725 $2,718,017 $2,731,101 $2,956,113 $2,448,358 $2,000,000 $4,221,495 $3,054,914 $3,424,593 $3,288,764 $3,710,140 $1,500,000 $675,048 $1,000,000 $500,000 $528,811 $- $(761,556)$(788,447) $(1,355,675) $(124,056) $(500,000) $(332,651) $(976,235)$(1,490,394) $(992,123) $(1,000,000) $(1,500,000) $(2,000,000) 20192020202120222023 Operating RevenuesOperating Expenses Operating Income (Loss)Operating Income Excluding Depreciation 15 Council Packet Page Number 50 of 380 F3, Attachment 2 City of Maplewood Financial Analysis Environmental Utility Fund The Environmental Utility Fund accounts for revenues and expenses related to the administration, planning, implementation, and maintenance of the storm water management program. Operating revenues increased by $141,853, or 4.5%, in 2023 due to increase in rates. Operating expenses increased $40,905 from 2022. In 2023, this fund contributed $170,000 to the General Fund for administrative fees, and $1,213,170 to various Capital Improvement Funds and Debt Service Funds. The cash balance of the fund at December 31, 2023, was $1,815,434, an increase of $666,509. 16 Council Packet Page Number 51 of 380 F3, Attachment 2 City of Maplewood Financial Analysis Recycling Program Fund The Recycling Program Fund accounts for recycling charges that are levied to cover cart fees, finance recycling costs, and public education on solid waste reduction and recycling. Operating revenues increased $90,250 or 7.5%, compared with the prior year, while operating expenses increased $161,276 or 15.4%. Operating revenues increased as a result of the City increasing recycling rates and expenditures increased due to increased costs from collection. After factoring transfers in and out of the fund, the net position increased in 2023 by $182,930. The cash balance of the fund at December 31, 2023, was $904,793, an increase of $253,135. Recycling Project Fund $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $1,294,687 $708,235 $953,091 $1,204,437 $1,179,153 $400,000 $692,451 $1,210,381 $1,033,172 $978,608 $1,049,105 $200,000 $84,306 $145,981 $155,332 $15,784 $- $(25,517) $(200,000) 20192020202120222023 Operating RevenuesOperating ExpensesOperating Income (Loss) 17 Council Packet Page Number 52 of 380 F3, Attachment 2 City of Maplewood Financial Analysis Sanitary Sewer Fund The Sanitary Sewer Fund accounts for customer sewer charges which are used to finance sewer system operating expenses. Operating revenues increased $347,770 or 5.5% from 2022 due to increased rates. Operating expenses increased $284,595 due to increased sewage treatment costs. In 2023, this fund contributed $390,000 to the General Fund for administrative fees and $320,962 to various Capital Improvement Funds and Debt Service Funds. The cash balance of the fund at December 31, 2023, was $2,653,500, an increase of $105,890. Sanitary Sewer Fund $7,000,000 $6,000,000 $5,000,000 $6,694,133 $5,243,659 $5,198,428 $6,346,363 $5,550,967 $4,000,000 $5,959,628 $4,868,090 $4,989,965 $4,902,935 $5,675,033 $3,000,000 $2,000,000 $671,330 $734,505 $253,694 $648,032 $330,338 $1,000,000 $1,100,185 $739,597 $1,010,666 $628,339 $1,036,750 $- 20192020202120222023 Operating RevenuesOperating Expenses Operating IncomeOperating Income Excluding Depreciation 18 Council Packet Page Number 53 of 380 F3, Attachment 2 City of Maplewood Financial Analysis Street Light Utility Fund The Street Light Utility Fund accounts for electric franchise fee revenues that are used to finance street light expenses. Operating revenues decreased $2,361 from 2022, while operating expenses decreased $13,523 due to decreased repairs and maintenance costs, resulting in an operating income before transfers of $245,435. The cash balance of the fund at December 31, 2023, was $1,517,255, an increase of $232,912. Street Light Utility Fund $500,000 $450,000 $400,000 $350,000 $446,107 $448,741 $446,380 $445,405 $448,473 $300,000 $250,000 $200,000 $150,000 $253,970 $240,447 $199,427 $210,339 $180,737 $100,000 $235,066 $205,933 $265,370 $249,046 $194,771 $50,000 $- 20192020202120222023 Operating RevenuesOperating ExpensesOperating Income 19 Council Packet Page Number 54 of 380 F3, Attachment 2 City of Maplewood Emerging Issues Executive Summary The following is an executive summary of financial related updates to assist you in staying current on emerging issues in accounting and finance. This summary will give you a preview of the new standards that have been recently issued and what is on the horizon for the near future. The most recent and significant updatesinclude: Implementation Guide No. 2021-1 Amending Capitalization Requirements GASB has issued Implementation Guide No. 2021-1, amending previously issued guidance regarding capitalization requirements for capital assets that are significant in the aggregate but below the government's capitalization threshold individually. Accounting Standard Update GASB Statement No. 100 Accounting Changes and Error Corrections GASB has issued GASB Statement No. 100 relating to accounting and financial reporting for accounting changes and error corrections. The requirements of this Statement will improve the clarity of the accounting and financial reporting requirements for accounting changes and error corrections, which will result in greater consistency in application in practice. In turn, more understandable, reliable, relevant, consistent, and comparable information will be provided to financial statement users for making decisions or assessing accountability. Accounting Standard Update GASB Statement No. 101 Compensated Absences GASB has issued GASB Statement No. 101 relating to accounting and financial reporting for compensated absences. The unified recognition and measurement model in this Statement will result in a liability for compensated absences that more appropriately reflects when a government incurs an obligation. In addition, the model can be applied consistently to any type of compensated absence and will eliminate potential comparability issues between governments that offer different types of leave. The following are extensive summaries of each of the current updates. As your continued business partner,we are committed to keeping you informed of new and emerging issues. We are happy to discuss theseissueswith you further and itsapplicability to your city. Implementation Guide No. 2021-1 Amending Capitalization Requirements Implementation Guide No. 2021-1, amended previously issued guidance contained in Implementation Guide No. 2015-1 regarding capitalization requirements for capital assets that are significant in the aggregate. Original guidance stated that it may be appropriate for a government to establish a capitalization policy that would require capitalization for certain types of assts with individual acquisition costs that are less than the threshold for an individual asset. Amended guidance states that a government should capitalize assets whose individual acquisition costs are less than the threshold for an individual asset if those assets in the aggregate are significant. Computers and classroom furniture are common examples of asset types that could be significant collectively. The amended guidance clarifies that if 100 computers costing $1,500 each totaling a $150,000 aggregate amount is significant, the government should capitalize the computers. Information provided above was obtained from www.gasb.org. 20 Council Packet Page Number 55 of 380 F3, Attachment 2 City of Maplewood Emerging Issues Accounting Standard Update GASB Statement No. 100 Accounting Changes and Error Corrections an Amendment of GASB Statement No. 62 The primary objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. This Statement defines accounting changes as changes in accounting principles, changes in accounting estimates, and changes to or within the financial reporting entity and describes the transactions or other events that constitute those changes. As part of those descriptions, for (1) certain changes in accounting principles and (2) certain changes in accounting estimates that result from a change in measurement methodology, a new principle or methodology should be justified on the basis that it is preferable to the principle or methodology used before the change. That preferability should be based on the qualitative characteristics of financial reporting understandability, reliability, relevance, timeliness, consistency, and comparability. This Statement also addresses corrections of errors in previously issued financial statements. This Statement prescribes the accounting and financial reporting for (1) each type of accounting change and (2) error corrections. This Statement requires that (a) changes in accounting principles and error corrections be reported retroactively by restating prior periods, (b) changes to or within the financial reporting entity be reported by adjusting beginning balances of the current period, and (c)changes in accounting estimates be reported prospectively by recognizing the change in the current period. The requirements of this Statement for changes in accounting principles apply to the implementation of a new pronouncement in absence of specific transition provisions in the new pronouncement. This Statement also requires that the aggregate amount of adjustments to and restatements of beginning net position, fund balance, or fund net position, as applicable, be displayed by reporting unit in the financial statements. This Statement requires disclosure in notes to financial statements of descriptive information about accounting changes and error corrections, such as their nature. In addition, information about the quantitative effects on beginning balances of each accounting change and error correction should be disclosed by reporting unit in a tabular format to reconcile beginning balances as previously reported to beginning balances as restated. Furthermore, this Statement addresses how information that is affected by a change in accounting principle or error correction should be presented in Required Supplementary Information (RSI) and Supplementary Information (SI). For periods that are earlier than those included in the basic financial statements, information presented in RSI or SI should be restated for error corrections, if practicable, but not for changes in accounting principles. GASB Statement No. 100 is effective for reporting periods beginning after June 15, 2023. Earlier application is encouraged. Information provided above was obtained from www.gasb.org. 21 Council Packet Page Number 56 of 380 F3, Attachment 2 City of Maplewood Emerging Issues Accounting Standard Update GASB Statement No. 101 Compensated Absences The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. This Statement requires that liabilities for compensated absences be recognized for (1) leave that has not been used and (2) leave that has been used but not yet paid in cash or settled through noncash means. A liability should be recognized for leave that has not been used if (a) the leave is attributable to services already rendered, (b) the leave accumulates, and (c) the leave is more likely than not to be used for time off or otherwise paid in cash or settled through noncash means. Leave is attributable to services already rendered when an employee has performed the services required to earn the leave. Leave that accumulates is carried forward from the reporting period in which it is earned to a future reporting period during which it may be used for time off or otherwise paid or settled. In estimating the leave that is more likely than not to be used or otherwise paid or settled, a government should consider relevant factors such as employment policies related to compensated absences and historical information about the use or payment of compensated absences. However, leave that is more likely than not to be settled through conversion to defined benefit postemployment benefits should not be included in a liability for compensated absences. This Statement requires that a liability for certain types of compensated absences including parental leave, military leave, and jury duty leave not be recognized until the leave commences. This Statement also requires that a liability for specific types of compensated absences not be recognized until the leave is used. This Statement also establishes guidance for measuring a liability for leave that has not been used, generally using an employee's pay rate as of the date of the financial statements. A liability for leave that has been used but not yet paid or settled should be measured at the amount of the cash payment or noncash settlement to be made. Certain salary-related payments that are directly and incrementally associated with payments for leave also should be included in the measurement of the liabilities. With respect to financial statements prepared using the current financial resources measurement focus, this Statement requires that expenditures be recognized for the amount that normally would be liquidated with expendable available financial resources. This Statement amends the existing requirement to disclose the gross increases and decreases in a liability for compensated absences to allow governments to disclose only the net change in the liability (as long as they identify it as a net change). In addition, governments are no longer required to disclose which governmental funds typically have been used to liquidate the liability for compensated absences. GASB Statement No. 101 is effective for reporting periods beginning after December 15, 2023. Earlier application is encouraged. Information provided above was obtained from www.gasb.org. 22 Council Packet Page Number 57 of 380 F3, Attachment 3 City of Maplewood Ramsey County,Minnesota Reports on Compliance with Government Auditing Standards and Minnesota Legal Compliance December 31, 2023 Council Packet Page Number 58 of 380 F3, Attachment 3 City of Maplewood Table of Contents Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 1 Minnesota Legal Compliance 3 Council Packet Page Number 59 of 380 F3, Attachment 3 Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards Independent Auditor's Report Honorable Mayor and Members of the City Council City of Maplewood Maplewood,Minnesota We have audited,in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards,issued by the Comptroller General of the United States,the financial statements of the governmental activities,the business-type activities,each major fund and the aggregate remaining fund information of the City of Maplewood,Minnesota,as of and for the year ended December 31, 2023,and the related notes to financial statements,which collectively comprise the City's basic financial statements and have issued our report thereon dated June 21, 2024. Internal Control overFinancial Reporting In planning and performing our audit of the financial statements,we considered the City's internal control over financial reporting (internal control) as a basis for designingaudit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements,but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly,we do not express an opinion on the effectiveness of the City's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees,in the normal course of performing their assigned functions,to prevent, or detect and correct,misstatements on a timely basis. A material weakness is a deficiency,or a combination of deficiencies,in internal control such that there is a reasonable possibility that a material misstatement of the City's financial statements will not be prevented,or detected and corrected,on a timely basis. A significant deficiency is a deficiency,or a combination of deficiencies,in internal control that is less severe than a material weakness,yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses, or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that were not identified. 1 Council Packet Page Number 60 of 380 F3, Attachment 3 Compliance and Other Matters As part of obtaining reasonable assurance about whether the City's financial statements are free from material misstatement,we performed tests of its compliance with certain provisions of laws, regulations,contracts,and grant agreements,noncompliance with which could have a direct and material effect on financial statement. However,providing an opinion on compliance with those provisions was not an objective of our audit,and accordingly,we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing,and not to provide an opinion on the effectiveness of the City's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control and compliance. Accordingly,this communication is not suitable for any other purpose. Minneapolis,Minnesota June 21, 2024 2 Council Packet Page Number 61 of 380 F3, Attachment 3 MinnesotaLegal Compliance Independent Auditor's Report Honorable Mayor and Members of the City Council City of Maplewood Maplewood,Minnesota We have audited,in accordance with auditing standards generally accepted in the United States of America,and the standards applicable to financial audits contained in Government Auditing Standards,issued by the Comptroller Generalof the United States,the financial statements of the governmental activities,the business-type activities,each major fund,and the aggregate remaining fund information of the City of Maplewood,Minnesota,as of and for the year ended December 31, 2023,andthe related notes to financial statementswhich collectively comprise the City's basic financial statements,and have issued our report thereon dated June 21, 2024. In connection with our audit, nothing came to our attention that caused us to believe that the City failed to comply with the provisions of the contracting bid laws, depositories of public funds and public investments, conflicts of interest, public indebtedness, claims and disbursements, miscellaneous provisions, and tax increment financing sections of the Minnesota Legal Compliance Audit Guide for Cities, promulgated by the State Auditor pursuant to MinnesotaStatute§ 6.65, insofar as they relate to accounting matters.However, our audit was not directed primarily toward obtaining knowledge of such noncompliance. Accordingly, had we performed additional procedures, other matters may have come to our attention regarding the City's noncompliance with the above referenced provisions, insofar as they relate to accounting matters. The purpose of this report is solely to describe the scope of our testing of compliance and the results of that testing,and not to provide an opinion on compliance. Accordingly,this communication is not suitable for any other purpose. Minneapolis,Minnesota June 21, 2024 3 Council Packet Page Number 62 of 380 F3, Attachment 4 Annual Comprehensive Financial Report for the year ended December 31, 2023 City of Maplewood Minnesota Council Packet Page Number 63 of 380 F3, Attachment 4 Council Packet Page Number 64 of 380 F3, Attachment 4 ANNUAL COMPREHENSIVE FINANCIAL REPORT OF THE CITY COUNCIL OR MAPLEWOOD, MINNESOTA Year Ended December 31, 2023 Melinda Coleman, City Manager PREPARED BY: THE FINANCE DEPARTMENT Council Packet Page Number 65 of 380 F3, Attachment 4 City of Maplewood Table of Contents Introductory Section Page Elected Officials and Administration 1 Organizational Chart 2 Location of City 3 Letter of Transmittal 5 Certificate of Achievement for Excellence in Financial Reporting 9 Financial Section Independent Auditor's Report 11 Management's Discussion and Analysis 15 Basic Financial Statements Government-Wide Financial Statements Statement of Net Position 28 Statement of Activities 29 Fund Financial Statements Balance Sheet Governmental Funds 30 Reconciliation of the Balance Sheet to the Statement of Net Position Governmental Funds33 Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds34 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities Governmental Funds 37 Statement of Net Position Proprietary Funds 38 Statement of Revenues, Expenses, and Changes in Fund Net Position Proprietary Funds40 Statement of Cash Flows Proprietary Funds 42 Notes to Basic Financial Statements 47 Required Supplementary Information Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual General Fund90 Schedule of Changes in Net OPEB Liability and Related Ratios 92 Schedule of City's Proportionate Share of Net Pension Liability General Employees Retirement Fund94 Schedule of City's Proportionate Share of Net Pension Liability Police and Fire Retirement Fund94 Schedule of City Contributions General Employees Retirement Fund 95 Schedule of City Contributions Police and Fire Retirement Fund 95 Notes to Required Supplementary Information 96 Supplementary Information Combining and Individual Fund Statements and Schedules Nonmajor Governmental Funds 107 Combining Balance Sheet Nonmajor Governmental Funds 108 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds 109 Nonmajor Special Revenue Funds 111 Combining Balance Sheet Nonmajor Special Revenue Funds 112 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Special Revenue Funds 114 Council Packet Page Number 66 of 380 F3, Attachment 4 City of Maplewood Table of Contents Financial Section (Continued) Page Supplementary Information (Continued) Combining and Individual Fund Statements and Schedules (Continued) Nonmajor Capital Projects Funds 117 Combining Balance Sheet Nonmajor Capital Projects Funds 120 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Capital Projects Funds 126 Schedules of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual Special Revenue Fund Charitable Gambling Tax 132 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Special Revenue Fund Maplewood Area EDA 133 Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual Special Revenue Fund Police Services 134 Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual Special Revenue Fund Tree Preservation 135 Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual Special Revenue Fund Cable Television 136 Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual Special Revenue Fund Fire Training Facility Operations 137 Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual Debt Service Fund 138 Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual Capital Projects Fund Public Improvement Projects Fund 139 Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual Capital Projects Fund Street Revitalization Fund 140 Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual Capital Projects Fund Fire Station Fund 141 Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual Capital Projects Fund General Building Replacement Fund 142 Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual Capital Projects Fund Community Center Building Improvements 143 Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual Capital Projects Fund Capital Improvement Projects 144 Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual Capital Projects Fund - Police Vehicles and Equipment 145 Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual Capital Projects Fund Park Development 146 Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual Capital Projects Fund Public Safety Training Facility Fund 147 Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual Capital Projects Fund Right-of-Way 148 Council Packet Page Number 67 of 380 F3, Attachment 4 City of Maplewood Table of Contents Financial Section (Continued) Page Supplementary Information (Continued) Schedules of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual (Continued) Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual Capital Projects Fund Tax Increment Economic Development District 1-11149 Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual Capital Projects Fund Tax Increment Economic Development District 1-12150 Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual Capital Projects Fund Tax Increment Housing 1-4151 Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual Capital Projects Fund Tax Increment Housing 1-5152 Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual Capital Projects Fund Tax Increment Housing 1-6153 Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual Capital Projects Fund Tax Increment Housing 1-7154 Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual Capital Projects Fund Tax Increment Housing 1-8155 Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual Capital Projects Fund Tax Increment Housing 1-10156 Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual Capital Projects Fund Tax Increment Housing 1-13157 Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual Capital Projects Fund Tax Increment Housing 1-14158 Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual Capital Projects Fund Water Availability Charge North St. Paul District159 Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual Capital Projects Fund Water Availability Charge St. Paul District160 Internal Service Funds 161 Statement of Net Position Internal Service Funds 162 Statement of Revenues, Expenses, and Changes in Fund Net Position Internal Service Funds164 Statement of Cash Flows Internal Service Funds 166 Combining Balance Sheet Debt Service Funds 170 Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances Debt Service Funds174 Statistical Section Table Page Net Position by Component 1 184 Changes in Net Position 2 186 Fund Balances of Governmental Funds 3 190 Changes in Fund Balances of Governmental Funds 4 192 Tax Capacity, Estimated Market Value, and Indicated Market Value 5 194 Direct and Overlapping Property Tax Rates 6 195 Principal Property Taxpayers 7 196 Council Packet Page Number 68 of 380 F3, Attachment 4 City of Maplewood Table of Contents Statistical Section (Continued) Table Page Property Tax Levies and Collections 8 197 Ratios of Outstanding Debt by Type 9 198 Ratios of General Bonded Debt Outstanding and Legal Debt Margin 10 200 Direct and Overlapping Governmental Activities Debt 11 201 Legal Debt Margin Information 12 202 Pledged Revenue Coverage 13 204 Demographic and Economic Statistics 14 205 Principal Employers 15 207 Full-Time Budgeted City Government Employees by Function/Program 16 208 Operating Indicators by Function/Program 17 210 Capital Asset Statistics by Function 18 212 Miscellaneous Statistical Facts 19 214 Council Packet Page Number 69 of 380 F3, Attachment 4 City of Maplewood Elected Officials and Administration December 31, 2023 1 Council Packet Page Number 70 of 380 F3, Attachment 4 City of Maplewood Organizational Chart December 31, 2023 2 Council Packet Page Number 71 of 380 F3, Attachment 4 City of Maplewood Location of City December 31, 2023 3 Council Packet Page Number 72 of 380 F3, Attachment 4 4 Council Packet Page Number 73 of 380 F3, Attachment 4 June , 2024 To the Honorable Mayor, City Council, and Citizens of the City of Maplewood: State law requires the chief financial officer in cities with a population of more than 2,500 to submit to the state auditor audited financial statements within 180 days after the close of each fiscal year. State law also requires that these statements be submitted to the Mayor and council members within 210 days after the close of each fiscal year. Pursuant to that requirement, the Annual Comprehensive Financial Report of the City of Maplewood for the fiscal year ended December 31, 2023, is submitted herewith. This report consists of managementÔs representations concerning the finances of the City of Maplewood. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management has established a comprehensive internal control framework that is designed both to protect the governmentÔs assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the financial statements in conformity with generally accepted accounting principles (GAAP). Because the cost of internal controls should not outweigh their benefits, the comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The financial statements in this report have been audited by BerganKDV, Ltd., a firm of licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City of Maplewood for the fiscal year ended December 31, 2023, are free of material misstatement. The independent audit involved examining on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the City of MaplewoodÔs financial statements for the fiscal year ended December 31, 2023, are fairly presented in conformity with GAAP. The independent auditorÔs report is presented as the first component of the financial section of this report. GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of ManagementÔs Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The MD&A can be found immediately following the report of the independent auditors. Profile of the Government The City of Maplewood, incorporated in 1957, is located in Ramsey County, Minnesota, adjacent to the City of St. Paul. The City is comprised of an area of 19.13 square miles. The population of the City according to the 2020 U.S. Census Bureau is 42,088, which is a 10.7% increase over the 2010 Census count of 38,018. The City of Maplewood is empowered to levy a property tax on real estate properties located within its boundaries. 5 Council Packet Page Number 74 of 380 F3, Attachment 4 Profile of the Government (Continued) The City of Maplewood has operated under the council-manager form of government since 1974. Policy-making and legislative authority are vested in a governing council consisting of the mayor and four other members. The governing 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 governing council, for overseeing the day-to-day operations of the government, and for appointing the heads of the various departments. The council is elected on a non-partisan basis. Council members serve four-year staggered terms and are elected at large. The City of Maplewood provides a full range of services, including police and fire protection; the construction and maintenance of streets and other infrastructure; and recreational activities. The annual budget serves as the foundation for the City of MaplewoodÔs financial planning and control. Budget-to-actual comparisons are provided in this report for each individual governmental fund for which an appropriated annual budget has been adopted. For the General Fund, this comparison is presented on page 90 as part of the required supplementary information for the governmental funds. For governmental funds, other than the General Fund, with appropriated annual budgets, these comparisons are presented in the governmental fund subsection of this report, starting on page 120. Factors Affecting Financial Condition The information presented in the financial statements is best understood when it is considered from the broader perspective of the specific environment within which the City of Maplewood operates. Local Economy: The region has a varied tax base that adds to the relative stability of the unemployment rate. Local and national unemployment rates have decreased over this past year as evidenced by the non-seasonally adjusted unemployment rates listed in the following graph. 6 Council Packet Page Number 75 of 380 F3, Attachment 4 Factors Affecting Financial Condition (Continued) 3M Company accounts for a large portion of the CityÔs tax base with their headquarters being located in Maplewood, its operations have a major effect on the economic climate of the area. 3M will continue to invest in its Maplewood campus and maintain its strong presence in the City. 3M is a diversified manufacturing and technology company and is one of the largest employers in Minnesota with operations in more than 60 countries. It is one of 30 stocks that make up the Dow Jones Industrial Average. 3M Company created a new medical spin-off company called Solventum. This new company leases one of the 3M buildings on the 3M campus in Maplewood. Solventum absorbed nearly 3,000 of 3MÔs previous employees. Long-Term Financial Planning: The 2024-2028 Capital Improvement Plan (CIP) for the City of Maplewood will coordinate the financing and timing of major equipment purchases and construction projects. The CIP was adopted by the City Council in December of 2023. The Capital Improvement Plan is updated each year, focusing on City needs and goals. Many of the projects scheduled for 2024-2028 will result in the accomplishment of several City goals that are as follows: 1.Redevelopment efforts are reflected by the inclusion of the following projects in the 2024- 2028 CIP Plan: 1) Housing Replacement Program; and 2) Gladstone Area Redevelopment (phase III). 2.An analysis of all Maplewood City buildings calls for investment in the cityÔs facilities. The City will utilize tax levies over the next five years to complete the items listed in the CIP. 3.Revenues in the Park Development Fund are expected to trend up as the housing market and commercial development recover. Maplewood is nearly fully developed. Park projects in this plan will proceed as Park Availability Charge (PAC) revenue is available. 4.A Parks System Master Plan was completed in 2014, which called for major investment in MaplewoodÔs existing parks. The City will issue Tax Abatement bonds as needed to complete some items in the plan. 5.The CityÔs ash trees are infected with the Emerald Ash Borer. The City is levying a tax in the amount of $100,000 per year for the next three years to remove and replace infected ash trees. 6.Annual expenditures of approximately $500,000 are proposed for the planning period for replacement of vehicles and equipment in the Fleet Management Fund. This investment is necessary to keep maintenance costs to a minimum. 7.A Public Safety Equipment Fund and a Fire Equipment Fund accounts for vehicle and equipment purchases for the Police and Fire Departments. An ongoing levy will be needed for years 2024-2028. 8.Five major street projects are proposed for years 2024-2028. The costs of these projects total more than $44.6 million. The City will finance the pavement projects with gas franchise fees and general obligation debt. 9.Two ambulances will be replaced over the five-year planning period. Relevant Financial Policies The City has established a comprehensive set of financial policies for use as a guideline during the budget process. One of the policies deals with unpredictable revenues. The City uses a conservative approach in making ongoing revenue assumptions by utilizing growth patterns and knowledge of the developing areas. Changes in state tax law over the years have resulted in funding changes for both schools and local governments. Due to the uncertainty in receiving the aid from the state, the state aid revenues are no longer included in the General Fund budget. 7 Council Packet Page Number 76 of 380 F3, Attachment 4 Awards and Acknowledgements The Government Finance Officers Association of the United States and Canada (G.F.O.A.) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Maplewood for its annual comprehensive financial report for the fiscal year ended December 31, 2022. In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily readable and efficiently organized annual comprehensive financial report, whose contents conform to program standards. Such reports must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe our current report continues to conform to Certificate of Achievement program requirements, and we will submit it to G.F.O.A. to determine its eligibility for another certificate. We would like to express our appreciation and thanks to all City personnel who supported or assisted in the preparation of essential information for this report. Special thanks go to the Finance Department staff whose dedicated service enabled this report. Also, we would like to express our appreciation and thanks to the staff of BerganKDV, Ltd. who have provided advice and assistance in the preparation of this report. Respectfully submitted, Melinda Coleman City Manager 8 Council Packet Page Number 77 of 380 F3, Attachment 4 City of Maplewood Certificate of Achievement for Excellence in Financial Reporting 9 Council Packet Page Number 78 of 380 F3, Attachment 4 10 Council Packet Page Number 79 of 380 F3, Attachment 4 Independent Auditor's Report Honorable Mayor and Members of the City Council City of Maplewood Maplewood,Minnesota Report on the Audit of the Financial Statements Opinions We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of Maplewood, as ofand for the year endedDecember 31, 2023, and the related notes to the financial statements, which collectively comprise City of Maplewood's basic financial statements as listed in the Table of Contents. In our opinion, the accompanying financial statements 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 City of Maplewood, as ofDecember 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 (GAAS) 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 City of Maplewood and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management for the Financial Statements The City of Maplewood's 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 City of Maplewood's ability to continue as a going concern for twelve monthsbeyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. 11 Council Packet Page Number 80 of 380 F3, Attachment 4 Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS 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 GAAS and Government Auditing Standards, we: Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of City of Maplewood'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 City of Maplewood'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 controlrelated 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, which follows this report letter, and Required Supplementary 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 (GASB), 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. 12 Council Packet Page Number 81 of 380 F3, Attachment 4 Supplementary Information Our audit wasconducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Maplewood'sbasic financial statements.The accompanying supplementary information identified in the Table of Contents ispresented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the accompanying supplementary information isfairly 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 Comprehensive Financial 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 21, 2024,on our consideration of the City of Maplewood'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 issolelyto 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 onthe effectiveness ofinternal 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 Maplewood's internal control over financial reporting and compliance. Minneapolis,Minnesota June 21,2024 13 Council Packet Page Number 82 of 380 F3, Attachment 4 14 Council Packet Page Number 83 of 380 F3, Attachment 4 City of Maplewood ManagementÔs Discussion and Analysis As management of the City of Maplewood, we offer readers of the City of MaplewoodÔs financial statements this narrative overview and analysis of the financial activities of the City of Maplewood 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, located on pages 5-8 of this report. Financial Highlights The assets and deferred outflows of resources of the City of Maplewood exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $201,913,149 (net position). Of this amount, $24,217,685 (unrestricted net position) is available to meet the governmentÔs ongoing obligations to citizens and creditors in accordance with the CityÔs fund designations and fiscal policies. The CityÔs total net position increased in the current year by $7,471,438. As of the close of the current fiscal year, the City of MaplewoodÔs governmental funds reported combined ending fund balances of $44,596,381. At the end of the current fiscal year, unassigned fund balance for the General Fund was $15,364,120, or 58.74% percent of total General Fund revenues. The City of MaplewoodÔs long-term liabilities for governmental and business-type activities decreased by $4,139,692 during the current fiscal year. Overview of the Financial Statements This discussion and analysis are intended to serve as an introduction to the City of MaplewoodÔs basic financial statements. The City of MaplewoodÔs basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to 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 of MaplewoodÔs finances, in a manner similar to a private-sector business. The statement of net position presents information on all of the City of MaplewoodÔs assets, deferred outflows of resources, liabilities, and deferred inflow of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City of Maplewood is improving or deteriorating. The statement of activities presents information showing how the CityÔs 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 of Maplewood 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 of Maplewood include general government, public safety, public works, parks and recreation, citizen services, and community development. The business-type activities of the City of Maplewood include ambulance service, street light utility, and sanitary sewer, environmental utility, and recycling program. 15 Council Packet Page Number 84 of 380 F3, Attachment 4 City of Maplewood ManagementÔs Discussion and Analysis Government-Wide Financial Statements (Continued) The government-wide financial statements are located on pages 28-29 of this report. Fund Financial Statements A fund is a grouping of related accounts used to maintain control over resources that have been segregated for specific activities or objectives. The City of Maplewood, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. City of Maplewood funds are divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental Funds Governmental funds 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 governmentÔs near-term financial 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 statement. By doing so, readers may better understand the long-term impact of the CityÔs near term financial decisions. Both the governmental fund balance sheet and governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City of Maplewood maintains three individual major governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures and changes in fund balances for the General Fund, Debt Service Fund and Public Improvement Projects Fund, all of which are considered to be major funds. Data from the other governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements elsewhere in this report. The City of Maplewood adopts an annual appropriated budget for its general, special revenue, debt service, and capital project funds. A budgetary comparison statement is provided for those funds to demonstrate compliance with this budget. The basic governmental financial statements are located on pages 30-35 of this report. Proprietary Funds The City of Maplewood maintains two different types of proprietary funds. Enterprise funds report the same functions presented as business-type activities in the government-wide financial statements. The City of Maplewood uses enterprise funds to account for its ambulance service, environmental utility, recycling program, sanitary sewer, and street light utility operations. Internal service funds are accounting devices used to accumulate and allocate costs internally among the City of MaplewoodÔs various functions. The City of Maplewood uses internal service funds to account for its information technology, employee benefits, fleet management, and risk management. Because these services predominantly benefit governmental rather than business-type functions, they have been included within governmental activities in the government-wide financial statements. 16 Council Packet Page Number 85 of 380 F3, Attachment 4 City of Maplewood ManagementÔs Discussion and Analysis Proprietary Funds (Continued) 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 ambulance service, environmental utility, recycling program, sanitary sewer, and street light utility operations. All are major funds of the City of Maplewood. Conversely, all internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this report. The basic proprietary fund financial statements are located on pages 38-45 of this report. Fiduciary Funds Fiduciary funds account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City of MaplewoodÔs own program. The accounting used for fiduciary funds is similar to that used for proprietary funds. There are no basic fiduciary fund financial statements included in 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 governmentÏwide and fund financial statements. The notes to the financial statements are located on pages 47-88 of this report. Other Information The combining statements referred to earlier in connection with non-major governmental funds and internal service funds are presented following the Required Supplementary Information. Combining and individual fund statements and schedules are located on pages 107-173 of this report. Government-Wide Financial Analysis As noted earlier, net position may serve over time as a useful indicator of a governmentÔs financial position. In the case of the City of Maplewood, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $201,913,149 at the close of the most recent fiscal year. By far the largest portion of the City of MaplewoodÔs net position, 78%, reflects its net investment in capital assets (e.g., infrastructure, land, buildings, vehicles, and equipment) less any outstanding related debt used to acquire those assets. The City of Maplewood uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City of MaplewoodÔs investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. 17 Council Packet Page Number 86 of 380 F3, Attachment 4 City of Maplewood ManagementÔs Discussion and Analysis Government-wide Financial Analysis (Continued) City of MaplewoodÔs Net Position GovernmentalBusiness-Type ActivitiesActivitiesTotal 202320222023202220232022 Current assets/other60,886,074$ $ 56,409,030$ 12,948,856$ 11,935,111$ 73,834,930$ 68,344,141 Capital assets 170,749,524 170,908,964 37,651,890 37,230,553 208,401,414 208,139,517 Total assets 231,635,598 227,317,994 50,600,746 49,165,664 282,236,344 276,483,658 Deferred outflow of resources 20,316,375 23,553,697 380,558 401,903 20,696,933 23,955,600 Current liabilities 11,811,762 11,629,036 617,715 398,670 12,429,477 12,027,706 Noncurrent liabilities66,232,261 91,128,794 1,090,250 1,487,150 67,322,511 92,615,944 Total liabilities 78,044,023 102,757,830 1,707,965 1,885,820 79,751,988 104,643,650 Deferred inflows of resources 20,686,664 1,179,742 581,476 174,155 21,268,140 1,353,897 Net position Net Investment in Capital Assets 119,448,917 115,135,340 37,651,890 37,230,553 157,100,807 152,365,893 Restricted 21,824,657 19,242,250 - 21,824,657- 19,242,250 Unrestricted 11,947,712 12,556,529 11,039,973 10,277,039 22,987,685 22,833,568 Total net position153,221,286$ $ 146,934,119$ 48,691,863$ 47,507,592$ 201,913,149$ 194,441,711 A portion of the City of MaplewoodÔs net position represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position, $22,987,685, is available to meet the CityÔs ongoing obligations to citizens and creditors. At the end of the current fiscal year, the City of Maplewood is able to report positive balances in all categories of net position for the government as a whole. However, unrestricted net position in governmental activities was $11,947,712, due to the GASB 68 and GASB 71 requirement to report a total net pension liability of $16,682,348 and the GASB 75 requirements to report a total OPEB liability of $1,509,358. The City of MaplewoodÔs net position increased by $7,471,438 in 2023, compared to an increase of $9,508,813 in 2022. Governmental activities increased the CityÔs net position by $6,287,167. Business-type activities decreased the net position by $1,184,271. Key elements of this net increase are noted on the following page: 18 Council Packet Page Number 87 of 380 F3, Attachment 4 City of Maplewood ManagementÔs Discussion and Analysis City of MaplewoodÔs Changes in Position GovernmentalBusiness-Type ActivitiesActivitiesTotal 202320222023202220232022 Revenues Program revenues Charges for services$ 5,065,928$ 7,428,503$ 14,443,786$ 13,853,190$ 19,509,714$ 21,281,693 Operating grants and contributions2,561,164 1,318,151 942,593 281,223 3,503,757$ 1,599,374 Capital grants and contributions 3,474,832 5,494,798 1,305,117 674,833 4,779,949 6,169,631 General revenues General property taxes 25,751,465 24,257,221 145 25,751,610199 24,257,420 Miscellaneous taxes 1,820,760 1,862,843 - 1,820,760- 1,862,843 Tax increment collections 2,001,506 2,030,992 - 2,001,506- 2,030,992 Grants and contributions not restricted to specific programs 1,383,797 1,655,117 - 1,383,797- 1,655,117 Unrestricted investment earnings 2,056,610 (1,330,806) 369,237 (230,327) 2,425,847 (1,561,133) Other 51,224 155,282 - 1,987 51,224 157,269 Gain on disposal of capital assets 1,583,274- - 2,500 1,585,774- Total revenues 44,167,286 44,455,375 17,060,878 14,583,605 61,228,164 59,038,980 Expenses General government 4,884,643 5,465,774 - 4,884,643- 5,465,774 Public safety 16,776,044 15,202,237 - 16,776,044- 15,202,237 Public works 12,676,771 9,852,407 - 12,676,771- 9,852,407 Parks & recreation 1,360,223 1,560,453 - 1,360,223- 1,560,453 Community development 3,232,966 3,578,402 - 3,232,966- 3,578,402 Interest and fiscal charges 1,123,604 1,170,514 - 1,123,604- 1,170,514 Sewer - 5,970,126- 5,683,267 5,970,126 5,683,267 Environmental utility - 2,061,382- 1,991,448 2,061,382 1,991,448 Recycling program - 1,210,251- 1,050,352 1,210,251 1,050,352 Ambulance service - 4,220,262- 3,721,153 4,220,262 3,721,153 Street light utility - - 240,454 254,160 240,454 254,160 Total expenses 40,054,251 36,829,787 13,702,475 12,700,380 53,756,726 49,530,167 Increase (decrease) in net position before transfers 4,113,035 7,625,588 3,358,403 1,883,225 7,471,438 9,508,813 Transfers 2,174,132 3,712,755 (2,174,132) (3,712,755) - - Increase (decrease) in net position 6,287,167 11,338,343 1,184,271 (1,829,530) 7,471,438 9,508,813 Net position on January 1 146,934,119 135,595,776 47,507,592 49,337,122 194,441,711 184,932,898 Change in accounting principle - - - - - - Net position on January 1 - restated146,934,119 135,595,776 47,507,592 49,337,122 194,441,711 184,932,898 Net position on December 31$ 153,221,286$ 146,934,119$ 48,691,863$ 47,507,592$ 201,913,149$ 194,441,711 19 Council Packet Page Number 88 of 380 F3, Attachment 4 City of Maplewood ManagementÔs Discussion and Analysis Governmental Activities Overall, governmental revenues decreased 0.65%, or $288,089, due to several factors. Property taxes increased $1,452,161. Capital grants decreased $2,019,966, due to less grants related to street projects in 2023. Other Revenues decreased $1,583,274 due to the sale of an old fire station in 2022. Operating grants increased 94.3%, or $1,243,013, partially due to one-time public safety aid funds received in 2023. Investment earnings increased $3,387,416, due to a large market value adjustment made at year-end and improved interest rates. Expenses for governmental activities increased 8.8%, or $3,224,464, in 2023, mostly due to inflationary increases and the implementation of a compensation study. The graphs below provide comparisons of the governmental activities program revenues and expenses. 20 Council Packet Page Number 89 of 380 F3, Attachment 4 City of Maplewood ManagementÔs Discussion and Analysis Business-Type Activities Revenues for business-type activities increased 17%, or $2,477,273, partially due to increases in capital contributions. Utility billing charges were up 5.5%, or $347,770 due to rate increases. Ambulance grants were up $666,464 partially due to one-time public safety aid funds received in 2023. Sewer treatment expenses were up 4.2%, or $177,553. The graphs below show the business- type activities revenue and expense comparisons. 21 Council Packet Page Number 90 of 380 F3, Attachment 4 City of Maplewood ManagementÔs Discussion and Analysis Financial Analysis of the GovernmentÔs Funds Governmental Funds The focus of the City of MaplewoodÔs governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City of MaplewoodÔs financing requirements. In particular, unassigned fund balance may serve as a useful measure of a governmentÔs net resources available for spending at the end of the fiscal year. At the end of the current fiscal year, the City of MaplewoodÔs governmental funds reported combined ending fund balances of $44,596,381. Approximately 33.6% of this total, or $15,006,423, constitutes unassigned fund balance. The remainder of the total fund balance, $29,589,958, is not available for new spending because it is either A) nonspendable $53,322 B) restricted $16,980,050, C) committed, $1,596,083, or D) assigned, $10,960,503, for other purposes. The fund balance in the General Fund increased by $1,700,028 in 2023, compared to the 2022 decrease of $2,155,309. From 2022 to 2023, total revenues of the general fund increased 14.3% and total expenditures increased 8%. The most significant increases in General Fund revenues occurred in general property taxes which increased $1,471,128 to offset expenditure increases due to a compensation study completed in 2022. Intergovernmental revenue also increased due to $1,170,004 in one-time public safety aid received in 2023. In 2023, General Fund revenues exceeded expenditures by $910,643 before transfers. Overall, revenues came in at 109.4% of the final budget, primarily due to building permit collections and public safety aid. Expenditures were 99.9% of the final budget. Other funding sources totaling $1,150,000 are related to the 2022 General Fund surplus funds that were transferred to other funds in 2023. The fund balance of the General Fund at year- end is $16,974,679. The fund balance in the Debt Service Funds decreased by $361,671, primarily due to principal retirements and interest payments. The fund balance in the Public Improvement Projects Fund increased in 2023 by $176,613 partially based on investment income due to higher investment rates. The fund balance in the Fire Capital Project Fund decreased $858,002, due to capital outlay purchases for the new fire station and two partial payments towards a new ladder truck totaling $732,022. Proprietary Funds The City of MaplewoodÔs financial statements for proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. The unrestricted net position in the five proprietary funds totals $10,368,825. All proprietary funds ended the year with positive unrestricted net position. The Ambulance Service Fund accounts for customer service charges used to finance the operating expenses for ambulance services. Operating revenues and expenses in fiscal year 2023 were $2,731,101 and $4,221,495, respectively. In addition, there were net non-operating revenues of $862,117. The year-end net position decreased by $628,277. Cash and cash equivalents decreased $453,003 due to the acquisition of six cardiac monitors and an ambulance. 22 Council Packet Page Number 91 of 380 F3, Attachment 4 City of Maplewood ManagementÔs Discussion and Analysis Proprietary Funds (Continued) The Environmental Utility Fund is used to account for the CityÔs storm water management program and projects. These activities are financed by an environmental utility charge that began in October 2003. Financial data for 2023 and 2022 is as follows: Environmental Utility Fund 20232022 Operating revenues$ 3,277,485$ 3,135,632 Operating expenses (2,037,863) (1,996,958) Operating income 1,239,622 1,138,674 Add back depreciation 767,318 702,433 Operating income before depreciation$ 2,006,940$ 1,841,107 Environmental utility charges were last increased by 3.0% effective January 1, 2023, to finance operating expenses and capital improvements. The Recycling Program Fund accounts for the use of recycling charges that are levied to finance recycling costs and public education on solid waste reduction and recycling. Operating revenues and expenses for 2023 and 2022 are as follows: Recycling Fund 20232022 Operating revenues$ 1,294,687$ 1,204,437 Operating expenses (1,210,381) (1,049,105) Operating loss/income$ 84,306$ 155,332 23 Council Packet Page Number 92 of 380 F3, Attachment 4 City of Maplewood ManagementÔs Discussion and Analysis Proprietary Funds(Continued) The Sanitary Sewer Fund accounts for financing (by user charges) the cost of sewage treatment, system maintenance, and administrative operations. Most of the annual sewer operating expense is attributable to sewage treatment services provided by the Metropolitan Council. These charges were $4,372,131 in 2023 and $$4,194,578 in 2022. Consequently, the CityÔs sewer utility rates are determined by the Metropolitan Council sewage treatment charges. Financial data for 2023 and 2022 is shown below: Sewer Fund 20232022 Operating revenues$ 6,694,133$ 6,346,363 Operating expenses (5,959,628) (5,675,033) Operating income 734,505 671,330 Add back depreciation 365,680 365,420 Operating income before depreciation$ 1,100,185$ 1,036,750 Sewer rates increased 15.7% in 2022 and 4.3% in 2023. The Street Light Utility Fund accounts for electric franchise fee revenues used to finance the street light expenses. In fiscal year 2023, operating revenues and expenses in the Street Light Utility Fund were $446,380 and $240,447, respectively. Budgetary Highlights General Fund Most general municipal services are accounted for in the CityÔs General Fund. The following is a summary of the transactions: General Fund Budget Report Variance Favorable Amended (Unfavorable) BudgetActual Revenues$ 23,902,298$ 26,155,073$ 2,252,775 Expenditures (25,272,298) (25,244,430) 27,868 Other financing sources (uses) 1,370,000 789,385 (580,615) Net change$ 1,700,028-$ $ 1,700,028 Fund balance: January 1, 2023 15,274,651 December 31, 2023$ 16,974,679 24 Council Packet Page Number 93 of 380 F3, Attachment 4 City of Maplewood ManagementÔs Discussion and Analysis Budgetary Highlights (Continued) General Fund (Continued) General Fund revenues were 109.4% of the final budget, due to continued robust building permit activity and public safety aid. Expenditures were 99.9% of the budget. The December 31, 2023, fund balance amount increased above the amount anticipated in the final 2023 budget by $1,700,028. At the end of 2023, the unassigned fund balance for the General Fund was $15,364,120 or 58.7% percent of General Fund operating revenues. There were no amendments to the original budget for the General Fund in 2023. The expenditure budgets were not increased. Capital Asset and Debt Administration Capital Assets The City of MaplewoodÔs net investment in capital assets for its governmental and business-type activities, as of December 31, 2023, is $155,870,807 (net of accumulated depreciation and related debt). This net investment in capital assets includes land, buildings and structures, infrastructure, construction in progress, equipment, vehicles, and other improvements. Major capital asset events during the current fiscal year included the following: Net decrease to construction in progress of $1,588,390. Net increase in infrastructure, buildings, equipment, vehicles and other improvements totaling $8,677,950 before depreciation. City of MaplewoodÔs Capital Assets (Net of Depreciation) GovernmentalBusiness-Type ActivitiesActivities Total Infrastructure$ 99,213,328$ 99,213,328-$ Land 14,057,335 11,624 14,068,959 Buildings and structures 25,108,033 358,663 25,466,696 Equipment 3,423,960 307,255 3,731,215 Vehicles 3,485,599 484,844 3,970,443 Other improvements 755,855 36,489,504 37,245,359 Construction in progress 24,649,373 24,649,373- Leased equipment 56,041 - 56,041 Total$ 170,749,524$ 37,651,890$ 208,401,414 Additional information on the City of MaplewoodÔs capital assets is located in Note 4 on pages 61-63 of this report. 25 Council Packet Page Number 94 of 380 F3, Attachment 4 City of Maplewood ManagementÔs Discussion and Analysis Long-Term Liabilities The City of MaplewoodÔs long-term liabilities for governmental activities outstanding on December 31, 2023, were $54,391,104, with $51,589,650 consisting of outstanding general obligation (G.O.) bonds and premiums. The outstanding principal on G.O. bonds decreased $4,223,091 during 2023 due to scheduled payments of $6,168,091 and new issuances of $1,945,000. Finance purchases payable at year-end totaled $745,482. Leases liability at year-end totaled $48,944. In addition, the City has long-term liabilities in the amount of $2,007,028 for employee benefits. The City of Maplewood maintains an AA+ credit rating from S&P Global Ratings. State statutes limit the amount of general obligation debt a Minnesota city may issue to 3% of total estimated market value. The current debt limitation for the City of Maplewood is $160,771,572. Only $14,360,000 of the CityÔs outstanding debt is included in the statutory limitation as the other debt is either wholly or partially financed by revenues other than a general tax levy. Additional information on the City of MaplewoodÔs long-term debt is located in Notes 6 and 7 on pages 64-68 of this report. Economic Factors and Next YearÔs Budget and Rates Maplewood had an average annual unemployment rate at the end of 2023 of 2.7%. This compares with unemployment rates of 2.3% for Ramsey County, 2.6% for the State of Minnesota and 3.5% for the United States. The CityÔs local tax capacity increased by 4.8% for property taxes payable in 2024. City population is expected to increase 1.5% in 2024. Many factors were considered in preparing the CityÔs budget for the 2024 fiscal year. The CityÔs adopted 2024 budget includes a property tax levy of $28,289,957, which is 8.96% greater than the 2023 levy. Requests for Information This financial report is designed to provide a general overview of the City of MaplewoodÔs finances for all those with an interest in the governmentÔs finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Finance Director, 1830 County Road B East, Maplewood, MN 55109. 26 Council Packet Page Number 95 of 380 F3, Attachment 4 BASIC FINANCIAL STATEMENTS 27 Council Packet Page Number 96 of 380 F3, Attachment 4 City of Maplewood Statement of Net Position December 31, 2023 Governmental Business-Type ActivitiesActivitiesTotal Assets $ 50,934,468 $ 7,385,185$ 58,319,653 Cash and investments (including cash equivalents) Receivables Accounts receivable 663,088 2,056,049 2,719,137 171,677 27,411 199,088 Interest receivable 551,032 335 551,367 Taxes receivable 7,039,569 - 7,039,569 Special assessments receivable 100,000 - 100,000 Notes receivable Internal balances (1,575,620) 1,575,620 - 1,526,605 1,479,053 3,005,658 Due from other governments 140,085 - 140,085 Inventory 334,723 425,203 759,926 Prepaid items Assets held for resale 1,000,447 - 1,000,447 Capital assets not being depreciated 14,057,33511,624 14,068,959 Land 24,649,373 - 24,649,373 Construction in progress Capital assets net of accumulated depreciation/amortization Vehicles 3,485,599 484,844 3,970,443 25,108,033358,663 25,466,696 Buildings and structures 3,423,960307,255 3,731,215 Furniture and equipment 755,85536,489,504 37,245,359 Improvements other than buildings 99,213,328 - 99,213,328 Infrastructure Lease equipment 56,041 - 56,041 231,635,598 50,600,746 282,236,344 Total assets Deferred Outflows of Resources Deferred outflows of resources related to city pensions 19,553,994 194,101 19,748,095 Deferred outflows of resources related to OPEB 762,381 186,457 948,838 20,316,375 380,558 20,696,933 Total deferred outflows of resources $ 251,951,973$ 50,981,304$ 302,933,277 Total assets and deferred outflows of resources Liabilities $ 3,252,593$ 373,458$ 3,626,051 Accounts and contracts payable 560,346 - 560,346 Interest payable 512,070 165,118 677,188 Salaries and benefits payable Due to other governments 133,829 43,145 176,974 881,667 - 881,667 Deposits payable 120,708 - 120,708 Unearned revenue Bonds payable, net 5,845,000 - 5,845,000 Payable within one year Payable after one year 45,744,650 - 45,744,650 Lease liability 21,327 - 21,327 Payable within one year 27,617 - 27,617 Payable after one year Finance purchase payable 242,569 - 242,569 Payable within one year 502,913 - 502,913 Payable after one year Compensated absences payable 94,483 - 94,483 Payable within one year Payable after one year 1,912,545 - 1,912,545 Total OPEB liability 147,170 35,994 183,164 Payable within one year 1,362,188 333,153 1,695,341 Payable after one year Net pension liability Payable after one year 16,682,348 757,097 17,439,445 78,044,023 1,707,965 79,751,988 Total liabilities Deferred Inflows of Resources Deferred inflows of resources related to city pensions 19,411,231 269,541 19,680,772 Deferred inflows of resources related to OPEB 1,275,433 311,935 1,587,368 Total deferred inflows of resources 20,686,664 581,476 21,268,140 Net Position Net investment in capital assets 119,448,917 37,651,890 155,870,807 Restricted for Public safety 1,170,044 - 1,170,044 Economic development 1,533,793 - 1,533,793 Debt service 11,715,402 - 11,715,402 Tax increment 2,191,732 - 2,191,732 Park development 1,777,377 - 1,777,377 Capital projects 3,436,309 - 3,436,309 Unrestricted 11,947,712 11,039,973 24,217,685 Total net position 153,221,286 48,691,863 201,913,149 $ 251,951,973$ 50,981,304$ 302,933,277 Total liabilities, deferred inflows of resources, and net position See notes to basic financial statements. 28 Council Packet Page Number 97 of 380 F3, Attachment 4 29 See notes to basic financial statements. Council Packet Page Number 98 of 380 F3, Attachment 4 City of Maplewood Balance Sheet - Governmental Funds December 31, 2023 Debt ServiceCapital Projects Public Street Debt Service Improvement Revitilization GeneralFundsProjects FundFund Assets Cash and investments$ 18,306,331$ 7,648,625$ 3,726,373$ 4,026,978 Accrued interest receivable 57,453 23,887 16,583 15,279 Due from other governments 111,071 - 332,049 909,810 Accounts receivable 158,602 - - 352,739 Notes recievable - - - - Due from other funds - - - 279,897 Property taxes receivable 315,412 162,210 - - Special assessments receivable 900 4,441,026 - 2,597,643 Prepaid items 44,221 - - - Assets held for resale - - - - Total assets$ 18,993,990$ 12,275,748$ 4,075,005$ 8,182,346 Liabilities Accounts payable$ 412,777$ -$ 1,548,550$ - Contracts payable - - 126,112 - Deposits payable 767,815 - - - Due to other governments 92,805 - - - Salaries and benefits payable 323,603 - - - Due to other funds - - - - Advance payable - - - - Unearned revenues 103,408 - - - Total liabilities 1,700,408 - 1,674,662 - Deferred Inflows of Resources Unavailable revenue - taxes and assessments 318,903 4,495,143 - 2,563,034 Unavailable revenue - State shared taxes - - - 909,810 Total deferred inflows of resources 318,903 4,495,143 - 3,472,844 Fund Balances Nonspendable 44,221 - - - Restricted 1,170,044 7,780,605 2,400,343 - Committed - - - - Assigned 396,294 - - 4,709,502 Unassigned 15,364,120 - - - Total fund balances 16,974,679 7,780,605 2,400,343 4,709,502 Total liabilities, deferred inflows of resources, and fund balances$ 18,993,990$ 12,275,748$ 4,075,005$ 8,182,346 See notes to basic financial statements. 30 Council Packet Page Number 99 of 380 F3, Attachment 4 Nonmajor Total Governmental Governmental FundsFunds $ 13,629,789$ 47,338,096 44,470 157,672 96,436 1,449,366 151,747 663,088 100,000 100,000 - 279,897 73,410 551,032 - 7,039,569 9,101 53,322 1,000,447 1,000,447 $ 15,105,400$ 58,632,489 $ 973,319$ 2,934,646 20,419 146,531 113,852 881,667 13,952 106,757 13,349 336,952 279,897 279,897 904,472 904,472 17,300 120,708 2,336,560 5,711,630 37,588 7,414,668 - 909,810 37,588 8,324,478 9,101 53,322 5,629,058 16,980,050 1,596,083 1,596,083 5,854,707 10,960,503 (357,697) 15,006,423 12,731,252 44,596,381 $ 15,105,400$ 58,632,489 31 Council Packet Page Number 100 of 380 F3, Attachment 4 32 Council Packet Page Number 101 of 380 F3, Attachment 4 City of Maplewood Reconciliation of the Balance Sheet to the Statement of Net Position - Governmental Funds December 31, 2023 Total fund balances - governmental funds$ 44,596,381 Amounts reported for governmental activities in the Statement of Net Position are different because: Capital assets used in governmental activities are not current financial resources and, therefore, are not reported as assets in governmental funds. are not reported as assets in governmental funds. Cost of capital assets 253,930,234 Less accumulated depreciation/amortization (86,255,671) Long-term liabilities, including bonds payable, are not due and payable in the current period and, therefore, are not reported as liabilities in the funds. Long-term liabilities at year-end consist of: (49,965,000) Bonds payable (1,624,650) Unamortized bond premium and discount (745,482) Finance purchase payable (48,944) Lease liability (1,509,358) Total OPEB liability (16,682,348) Net pension liability Delinquent receivables will be collected in subsequent years, but are not available soon enough to pay for the current period's expenditures and, therefore, are deferred in the funds. 433,664 Taxes 25,569 Special assessments Deferred outflows of resources and deferred inflows of resources are created as a result of various differences related to pensions that are not recognized in the governmental funds. Deferred inflows of resources related to city pensions (19,411,231) Deferred inflows of resources related to OPEB (1,275,433) Deferred outflows of resources related to city pensions 19,553,994 Deferred outflows of resources related to OPEB 762,381 Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. 6,955,435 Deferred special assessments 909,810 State shared taxes (560,346) Governmental funds do not report a liability for accrued interest due and payable. Internal Service Funds are used by management to charge the costs of insurance and capital equipment to individual funds. The assets and liabilities of the Internal Service Funds are 4,132,281 included in governmental activities in the Statement of Net Position. $ 153,221,286 Total net position - governmental activities See notes to basic financial statements. 33 Council Packet Page Number 102 of 380 F3, Attachment 4 City of Maplewood Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds Year Ended December 31, 2023 Debt ServiceCapital Projects Public Street Debt Service Improvement Revitilization GeneralFundsProjects FundFund Revenues General property taxes $ 19,539,483 $ 4,825,548$ -$ - Tax increment collections - - - - Miscellaneous taxes 6,759 - - 1,234,089 Licenses and permits 2,331,544 - - - Intergovernmental 2,590,152 524,706 214,283 1,681,513 Special assessments 277 895,162 - 978,928 Charges for services 769,275 - - - Fines and forfeitures 164,131 - - - Investment income 625,400 282,254 187,827 251,019 Miscellaneous Contributions and donations 9,446 - - - Rent 2,339 - - - Other 116,267 - 820,127 42,975 Total revenues 26,155,073 6,527,670 1,222,237 4,188,524 Expenditures Current Community development 1,823,645 - - - Administration 1,950,559 - - - Finance 1,302,411 40,328 - - Fire 2,883,127 - - - Legislative 166,404 - - - Parks and recreation 535,355 - - - Police 11,143,411 - - - Public works 4,654,497 - - 133,981 Debt service Principal retirement 154,156 6,362,643 - - TIF developer payments - - - - 16,804 1,519,571 - - Interest and other charges Capital outlay Administration - - - - Police 614,061 - - - Fire - - - - Parks and recreation - - - - Public works - - 7,680,869 - Total expenditures 25,244,430 7,922,542 7,680,869 133,981 Excess of revenues over (under) expenditures 910,643 (1,394,872) (6,458,632) 4,054,543 Other Financing Sources (Uses) Issuance of bonds - 1,945,000 - - Premium on bonds issued - 178,500 - - Issuance of finance purchases 557,061 - - - Transfers in 1,370,000 957,646 6,635,245 - Transfers out (1,150,000) (2,047,945) - (4,135,200) Proceeds from sale of capital assets 12,324 - - - Total other financing sources (uses) 789,385 1,033,201 6,635,245 (4,135,200) Net change in fund balances 1,700,028 (361,671) 176,613 (80,657) Fund Balances Beginning of year 15,274,651 8,142,276 2,223,730 4,790,159 End of year $ 16,974,679 $ 7,780,605$ 2,400,343$ 4,709,502 See notes to basic financial statements. 34 Council Packet Page Number 103 of 380 F3, Attachment 4 Nonmajor Total Governmental Governmental FundsFunds $ 1,292,749$ 25,657,780 2,001,506 2,001,506 579,912 1,820,760 17,071 2,348,615 52,500 5,063,154 - 1,874,367 583,472 1,352,747 6,150 170,281 569,379 1,915,879 500 9,946 168,341 170,680 56,526 1,035,895 5,328,106 43,421,610 20,722 1,844,367 604,037 2,554,596 - 1,342,739 91,233 2,974,360 48,381 214,785 11,227 546,582 - 11,143,411 54,094 4,842,572 345 6,517,144 1,365,553 1,365,553 28 1,536,403 83,010 83,010 401,739 1,015,800 1,109,000 1,109,000 853,668 853,668 - 7,680,869 4,643,037 45,624,859 685,069 (2,203,249) - 1,945,000 - 178,500 - 557,061 735,000 9,697,891 (645,614) (7,978,759) 686,727 699,051 776,113 5,098,744 1,461,182 2,895,495 11,270,070 41,700,886 $ 12,731,252$ 44,596,381 35 Council Packet Page Number 104 of 380 F3, Attachment 4 36 Council Packet Page Number 105 of 380 F3, Attachment 4 City of Maplewood Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities - Governmental Funds Year Ended December 31, 2023 Net change in fund balances - governmental funds$ 2,895,495 Amounts reported for governmental activities in the Statement of Activities are different because: Capital outlays are reported in governmental funds as expenditures. However, in the Statement of Activities, the cost of those assets is allocated over the estimated useful lives as depreciation expense. 6,241,688 Capital outlays (5,649,468) Depreciation/amortization expense (821,314) Loss on disposal OPEB obligations are recognized as paid in the governmental funds but recognized as the 151,719 expense is incurred in the Statement of Activities. Governmental funds recognize pension contributions as expenditures at the time of payment in the funds whereas the Statement of Activities factors in items related to pensions on a full accrual perspective. Pension expense (2,012,122) Principal payments on long-term debt are recognized as expenditures in the governmental funds but have no impact on net position in the Statement of Activities. 6,168,091 Bonds payable Refunded bonds payable 328,629 Finance purchase payable 20,424 Lease liability Governmental funds report the effects of bond premiums and discounts when debt is first issued, 186,029 whereas these amounts are deferred and amortized in the Statement of Activities. Interest on long-term debt in the Statement of Activities differs from the amount reported in the governmental funds because interest is recognized as an expenditure in the funds when it is due and, thus, requires use of current financial resources. In the Statement of Activities, however, 48,270 interest expense is recognized as the interest accrues, regardless of when it is due. Proceeds from long-term debt are recognized as an other financing source in the governmental (2,502,061) funds but have no impact on net position in the Statement of Activities. Certain receivables will be collected in subsequent years, but are not available soon enough to pay for the current period's expenditures and, therefore, are deferred in the funds. 93,685 Property taxes delinquent (4,103) Special assessments delinquent (428,627) Special assessments deferred 909,810 State shared taxes Internal Service Funds are used by management to charge the costs of insurance and capital equipment to individual funds. The net revenue of certain activities of Internal Service Funds is 661,022 reported with governmental activities in the government-wide financial statements. Change in net position - governmental activities $ 6,287,167 See notes to basic financial statements. 37 Council Packet Page Number 106 of 380 F3, Attachment 4 City of Maplewood Statement of Net Position - Proprietary Funds December 31, 2023 Business-Type Activities Enterprise Funds 604 606 Ambulance Environmental 605 Recycling 601 Sanitary ServiceUtilityProgramSewer Assets Current assets $ 494,203$ 1,815,434$ 904,793$ 2,653,500 Cash and cash equivalents 834 7,203 3,541 9,780 Accrued interest receivable 309 410,849 276,332 791,172 Due from other governments 1,711,974 18,186 140,048 75,181 Accounts receivable - net - - - 61,353 Advance due from other funds 335 - - - Property taxes receivable - - - - Inventory 10,451 2,000 - 412,752 Prepaid items 2,218,106 2,253,672 1,324,714 4,003,738 Total current assets Noncurrent assets - - - 843,119 Advance due from other funds Capital assets - - - - Buildings 1,660,39840,236,754 - 25,676,719 Structures, vehicles, and equipment 1,660,398 40,236,754 - 25,676,719 Total capital assets (942,268) (14,696,876) - (14,287,215) Less: allowance for depreciation 718,130 25,539,878 - 11,389,504 Net capital assets 2,936,236 27,793,550 1,324,714 16,236,361 Total assets Deferred Outflows of Resources Deferred outflows of resources related to OPEB 121,989 32,674 1,963 29,831 Deferred outflows of resources related to pensions - 98,915 10,953 84,233 121,989 131,589 12,916 114,064 Total deferred outflows of resources $ 3,058,225$ 27,925,139$ 1,337,630$ 16,350,425 Total assets and deferred outflows of resources Liabilities Current liabilities Accounts payable $ 30,392$ 3,150$ 315,912$ 17,227 Due to other governments 41,139 - - - Salaries payable 117,872 11,174 2,505 33,567 Total other post employment benefits (OPEB) liability current portion 23,549 6,307 379 5,759 Employee benefits payable - current portion - - - - Total current liabilities 212,952 20,631 318,796 56,553 Noncurrent liabilities Employee benefits payable - noncurrent portion - - - - Total other post employment benefits (OPEB) liability - noncurrent portion 217,967 58,378 3,508 53,300 Net pension liability - 385,822 42,723 328,552 Less amount due within one year - - - - Total noncurrent liabilities 217,967 444,200 46,231 381,852 Total liabilities 430,919 464,831 365,027 438,405 Deferred Inflows of Resources Deferred inflows of resources related to OPEB 204,083 54,661 3,285 49,906 Deferred inflows of resources related to pensions - 137,360 15,210 116,971 204,083 192,021 18,495 166,877 Total deferred inflows of resources Net Position Net investment in capital assets 718,130 25,539,878 - 11,389,504 Unrestricted 1,705,093 1,728,409 954,108 4,355,639 Total net position 2,423,223 27,268,287 954,108 15,745,143 Total liabilities, deferred inflows of resources, $ 3,058,225$ 27,925,139$ 1,337,630$ 16,350,425 and net position Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds Net position of business-type activities See notes to basic financial statements. 38 Council Packet Page Number 107 of 380 F3, Attachment 4 Business-Type Activities Enterprise Funds Governmental Activities - 607 Street Internal Light UtilityTotalService Funds $ 1,517,255$ 7,385,185$ 3,596,372 6,053 27,411 14,005 391 1,479,053 77,239 110,660 2,056,049 - - 61,353 - - 335 - - - 140,085 - 425,203 281,401 1,634,359 11,434,589 4,109,102 - 843,119 - - - 37,790 6,255 67,580,126 7,815,936 6,255 67,580,126 7,853,726 (1,877) (29,928,236) (4,778,765) 4,378 37,651,890 3,074,961 1,638,737 49,929,598 7,184,063 - 186,457 - - 194,101 - - 380,558 - $ 1,638,737$ 50,310,156$ 7,184,063 $ 6,777$ 373,458$ 171,416 2,006 43,145 27,072 - 165,118 175,118 - 35,994 - - - 94,483 8,783 617,715 468,089 - - 2,007,028 - 333,153 - - 757,097 - - - (94,483) - 1,090,250 1,912,545 8,783 1,707,965 2,380,634 - 311,935 - - 269,541 - - 581,476 - 4,378 37,651,890 3,074,961 1,625,576 10,368,825 1,728,468 1,629,954 48,020,715 4,803,429 $ 1,638,737$ 50,310,156$ 7,184,063 671,148 $ 48,691,863 39 Council Packet Page Number 108 of 380 F3, Attachment 4 City of Maplewood Statement of Revenues, Expenses, and Changes in Fund Net Position - Proprietary Funds Year Ended December 31, 2023 Business-Type Activities Enterprise Funds 604 606 Ambulance Environmental 605 Recycling 601 Sanitary ServiceUtilityProgramSewer Operating Revenues Utility/recycling/ambulance billings$ 2,730,792$ 3,277,474$ 1,271,177$ 6,585,477 - - - - Franchise tax Other sales and services 309 11 23,510 108,656 Total operating revenues 2,731,101 3,277,485 1,294,687 6,694,133 Operating Expenses Personnel services 3,224,861 845,870 60,909 758,020 Materials and supplies 197,640 11,585 60,834 50,262 Contractual services 664,275 413,090 1,088,638 4,785,666 Depreciation 134,719 767,318 - 365,680 Total operating expenses 4,221,495 2,037,863 1,210,381 5,959,628 Operating income (loss) (1,490,394) 1,239,622 84,306 734,505 Nonoperating Revenues (Expenses) 74,987 68,603 30,858 130,287 Investment income 819,738 48 122,766 41 Intergovernmental 145 - - - General property taxes (32,753) - - - Gain (loss) on disposal of capital assets 862,117 68,651 153,624 130,328 Total nonoperating revenues (expenses) Income (loss) before (628,277) 1,308,273 237,930 864,833 contributions and transfers Capital Contributions - 934,964 - 370,153 Transfers in - - - - Transfers out - (1,383,170) (55,000) (710,962) Change in net position (628,277) 860,067 182,930 524,024 Net Position Beginning of year 3,051,500 26,408,220 771,178 15,221,119 End of year$ 2,423,223$ 27,268,287$ 954,108$ 15,745,143 Change in net position reported above adjustment to reflect the consolidation of internal service fund activities Fund activities related to enterprise funds Change in net position of business-type activities See notes to basic financial statements. 40 Council Packet Page Number 109 of 380 F3, Attachment 4 Business-Type Activities Enterprise Funds Governmental Activities - 607 Street Internal Light UtilityTotal Service Funds $ -$ 13,864,920$ - 446,380 446,380 - - 132,486 9,930,481 446,380 14,443,786 9,930,481 - 4,889,660 8,087,804 - 320,321 708,044 240,134 7,191,803 792,000 313 1,268,030 505,580 240,447 13,669,814 10,093,428 205,933 773,972 (162,947) 64,502 369,237 140,731 - 942,593 127,887 - 145 - - (32,753) 62,653 64,502 1,279,222 331,271 270,435 2,053,194 168,324 - 1,305,117 37,790 - - 455,000 (25,000) (2,174,132) - 245,435 1,184,179 661,114 1,384,519 46,836,536 4,142,315 $ 1,629,954$ 48,020,715$ 4,803,429 $ 1,184,179 92 $ 1,184,271 41 Council Packet Page Number 110 of 380 F3, Attachment 4 City of Maplewood Statement of Cash Flows - Proprietary Funds Year Ended December 31, 2023 Business-Type Activities - Enterprise Funds 604 606 Ambulance Environmental 605 Recycling 601 Sanitary ServiceUtilityProgramSewer Cash Flows - Operating Activities Receipts from customers$ 2,785,003$ 3,243,648$ 1,219,032$ 6,536,279 Interfund services provided and used - (261,360) - (152,900) Payments to suppliers for goods and services (839,908) (184,846) (908,152) (5,082,910) Payments to employees for services (3,298,236) (814,094) (56,278) (722,867) Other operating revenues 309 11 23,510 108,656 Net cash flows - operating activities (1,352,832) 1,983,359 278,112 686,258 Cash Flows - Noncapital Financing Activities Property taxes 327 - - - Intergovernmental receipts 819,738 48 5 41 Transfer from other funds - - - - Transfer to other funds - (170,000) (55,000) (390,000) Net cash flows - noncapital financing activities 820,065 (169,952) (54,995) (389,959) Cash Flows - Capital and Related Financing Activities Acquisition of capital assets (453,003) - - - Transfer to other funds - (1,213,170) - (320,962) 36,000 - - - Proceeds from disposal of capital assets Net cash flows - capital and related financing activities (417,003) (1,213,170) (320,962)- Cash Flows - Investing Activities Investment income 79,885 66,272 30,018 130,553 Net change in cash and cash equivalents (869,885) 666,509 253,135 105,890 Cash and Cash Equivalents January 1 1,364,088 1,148,925 651,658 2,547,610 December 31 $ 494,203$ 1,815,434$ 904,793$ 2,653,500 See notes to basic financial statements. 42 Council Packet Page Number 111 of 380 F3, Attachment 4 Business-Type Activities - Enterprise Funds Governmental Activities - 607 Street Internal Light UtilityTotalService Funds $ 445,862$ 14,229,824$ - - (414,260) 9,862,343 (251,769) (7,267,585) (1,370,641) - (4,891,475) (8,006,264) - 132,486 74,299 194,093 1,788,990 559,737 - 327 - - 819,832 127,887 - - 455,000 (25,000) (640,000) - (25,000) 180,159 582,887 - (453,003) (537,444) - (1,534,132) - - 36,000 62,653 (1,951,135)- (474,791) 63,819 370,547 138,882 232,912 388,561 806,715 1,284,343 6,996,624 2,789,657 $ 1,517,255$ 7,385,185$ 3,596,372 43 Council Packet Page Number 112 of 380 F3, Attachment 4 See notes to basic financial statements. 44 Council Packet Page Number 113 of 380 F3, Attachment 4 (Continued) Business-Type Activities - Enterprise Funds Governmental Activities - 607 Street Internal Light UtilityTotalService Funds $ 205,933$ 773,972$ (162,947) 313 1,268,030 505,580 - 82,388 - (521) (37,564) 1,562 3 (43,912) 4,599 - (422,347) 52,394 - - 11,657 (12,327) 229,394 128,779 - (69,575) (40,898) 692 23,232 (2,409) - (14,628) - - - 61,420 (11,840) 1,015,018 722,684 $ 194,093$ 1,788,990$ 559,737 $ -$ 1,305,117$ - 45 Council Packet Page Number 114 of 380 F3, Attachment 4 46 Council Packet Page Number 115 of 380 F3, Attachment 4 City of Maplewood Notes to Basic Financial Statements NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of the City of Maplewood,Minnesota have been prepared in conformity with accounting principles generally accepted in the United States of America as applied to governmental units by GASB. The following is a summary of the significant accounting policies. A.Financial Reporting Entity The criteria used to determine the financial reporting entity were in conformity with GASB Statement No. 14,The Financial Reporting Entity. In accordance with Statement No. 14 for financial reporting purposes,the City's financial statements include all funds,departments,agencies,boards, commissions,and other organizations over which the City is considered to be financially accountable. The City is financially accountable if: 1.It appoints a voting majority of an organization's body and is able to impose its will on that organization or the potential for the organization to provide specific financial benefits to,or impose specific financial burdens,on the City; or, 2.An organization is fiscally dependent on the City. As a result of applying the criteria of Statement No. 14 the City has one blended component unit. 1.Blended Component Unit During 2009,the City adopted Ordinance No. 891 establishing the Maplewood Area Economic Development Authority,an entity legally separate from the City. Although legally separate,the EDA is reported as if it were part of the primary government because it provides services exclusively for the City. In addition,the Authority consists of the Mayor and members of the City Council. The City Manager acts as Director and ex-officio member. Separate financial statements for the Authority are not prepared and the City has operational responsibility for the EDA. The following provide an advisory function and have been included as part of the primary government: Heritage Preservation Commission Police Civil Service Commission Community Design Review Board Planning Commission Parks and Recreation Commission Environmental and Natural Resources Commission Housing and Economic Development Commission Human Rights Commission The above commissions,board,and authority were created by the City to carry out specific advisory functions with members appointed by the City Council. All funding for these advisory bodies is derived from the City. 47 Council Packet Page Number 116 of 380 F3, Attachment 4 City of Maplewood Notes to Basic Financial Statements NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 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 activities of the primary government and its component unit. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The Statement of Activities demonstrates the degree to which the direct expenses of a given function or business-type activity are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or business-type activity. Interest on general long-term debt is considered an indirect expense and is reported separately in the Statement of Activities. 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. Internally dedicated revenues are reported as general revenues rather than program 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. C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers all revenues, except reimbursement grants, to be available if they are collected within 60 days of the end of the current fiscal period. Reimbursement grants are considered available if they are collected within one year of the end of the current 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, licenses, special assessments, intergovernmental revenues, charges for services, and interest associated with the current period are all considered to be susceptible to accrual and so have been recognized as revenues of the current period. Only the portion of special assessments receivable due within the current period is considered to be susceptible to accrual as revenue of the current period. Intergovernmental revenue is recognized when eligibility requirements have been meet. All other revenue items are considered to be measurable and available only when cash is received by the City. 48 Council Packet Page Number 117 of 380 F3, Attachment 4 City of Maplewood Notes to Basic Financial Statements NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) 1.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. a.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. b.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 State credits 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) and taxes and credits not received at year end are classified as delinquent and due from County taxes receivable. The portion of delinquent taxes not collected by the City in January are fully offset by deferred inflows because they are not available to finance current expenditures. 2.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. 49 Council Packet Page Number 118 of 380 F3, Attachment 4 City of Maplewood Notes to Basic Financial Statements NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) 2. Special Assessment Revenue Recognition (Continued) 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 remitted to the City in payment of delinquent special assessments. 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. a.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. b.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. All remaining delinquent and deferred assessments receivable in governmental funds are offset by deferred inflows. Description of Funds: Major Governmental Funds: General Fund This fund is the City's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. Debt Service Fund This fund accounts for the accumulation of resources for, and the payment of, general and special assessment long-term debt principal, interest, and fiscal agents' fees. Public Improvement Projects Fund This fund accounts for financial resources to be used to finance public works construction projects that are financed wholly or partially by special assessments levied against properties that benefit from the public improvements. Street Use Revitalization Fund This fund accounts for street revitalization efforts. Major Proprietary Funds: Ambulance Service Fund This fund accounts for customer service charges that are used to finance emergency medical services. Environmental Utility Fund This fund accounts for revenues and expenses related to the administration, planning, implementation, and maintenance of the storm water management program. 50 Council Packet Page Number 119 of 380 F3, Attachment 4 City of Maplewood Notes to Basic Financial Statements NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) Description of Funds (Continued): Major Proprietary Funds (Continued): Recycling Program Fund This fund accounts for recycling charges that are levied to finance recycling costs and public education on solid waste reduction and recycling. Sanitary Sewer Fund This fund accounts for customer sewer charges which are used to finance sewer system operating expenses. Street Light Utility Fund This fund accounts for water surcharges on St. Paul water utility bills that will be used to finance future water system improvements that cannot be financed by special assessments. Additional Fund Types: Special Revenue Funds Used to account for the proceeds of specific revenue sources (other than major capital resources) that are restricted to expenditures for specified purposes. Capital Projects Funds Used to account for financial resources to be used for the acquisition or construction of major capital facilities or major purchases of equipment (other than those financed by Proprietary Funds). Internal Service Funds Used to account for information technology, employee benefits, dental insurance, risk management, and fleet management services provided by one department to other departments of 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. Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. 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 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. 51 Council Packet Page Number 120 of 380 F3, Attachment 4 City of Maplewood Notes to Basic Financial Statements NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) When both restricted and unrestricted resources are available for an allowable use, it is the City's policy to use restricted resources first, then unrestricted resources as they are needed. D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Equity 1. Deposits and Investments Cash and investments include balances from all funds that are combined and invested to the extent available in various securities as authorized by state law. Earnings from the pooled investments are allocated to the individual funds based on the average of month-end cash and investment balances. The City's cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition. Minnesota Statutes authorize the City to invest in obligations of the U.S. Treasury, agencies and instrumentalities, shares of investment companies whose only investments are in the aforementioned securities, obligations of the State of Minnesota or its municipalities, bankers' acceptances, future contracts, repurchase and reverse repurchase agreements, and commercial paper of the highest quality with a maturity of no longer than 270 days and in the Minnesota Municipal Investment Pool. Certain investments for the City are reported at fair value as disclosed in Note 3. The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The Hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. In accordance with GASB Statement No. 79, the Minnesota Municipal Investment Pool securities are valued at amortized cost, which approximates fair value. There are no restrictions or limitations on withdrawals from the 4M Liquid Asset Fund. Investments in the 4M Plus must be deposited for a minimum of 14 calendar days. Withdrawals prior to the 14-day restriction period will be subject to a penalty equal to 7 days interest on the amount withdrawn. 7 day's notice of redemption is required for withdrawals of investments in the 4M Term Series withdrawn prior to the maturity date of that series. A penalty could be assessed as necessary to recoup the Series for any charges, losses, and other costs attributable to the early redemption. 2. Receivables and Payables All trade and property tax receivables are shown net of an allowance for uncollectibles. At December 31, 2023, an allowance of $360,000 was recorded in the Ambulance Service Fund. Special deferred assessments are not currently collectible due to the City's policy of granting temporary deferments of assessments for trunk sewer and water lines until laterals permit connection. Special deferred assessments also include temporary deferments granted under Minnesota Statutes for senior citizens and green acres. The amount due from the County represents special assessments collected by the County but not yet transmitted to the City. 52 Council Packet Page Number 121 of 380 F3, Attachment 4 City of Maplewood Notes to Basic Financial Statements NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Equity (Continued) 2. Receivables and Payables (Continued) During the course of operations, numerous transactions occur between individual funds for goods provided or services rendered. These receivables and payables are classified as "due from other funds" or "due to other funds" on the balance sheet and are expected to be eliminated in 2023. Long-term interfund loans, if any, are classified as "advances to/from other funds." Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as "internal balances." 3. Inventory, Land Held for Resale, and Prepaid Items Inventory of materials and supplies has been valued at cost using the first-in, first-out (FIFO) method. Inventory maintained by the City is in its Internal Service Fund for the fleet maintenance. Land was acquired by the City for subsequent resale for redevelopment purposes. Land held for resale is reported as an asset at lower of cost or estimated realizable value in the fund that acquired it. 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. 4. Capital Assets Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business- type activities columns in the government-wide financial statements. Capital assets are defined by the City as assets with an estimated useful life of at least two years and an initial individual cost meeting the following thresholds: Capital assets may also include groups of assets which were acquired at the same time for one location, where individual asset items are less than the capitalization limit, but when all assets of that group are added together the dollar amount far exceeds the capitalization limit (i.e., furniture and MCC equipment). 53 Council Packet Page Number 122 of 380 F3, Attachment 4 City of Maplewood Notes to Basic Financial Statements NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Equity (Continued) 4. Capital Assets (Continued) Assets are valued at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are valued at acquisition value at the date of donation. The construction of sewer mains is generally financed by the Capital Project Funds. When construction has been completed and special assessments levied, these sewer mains are capitalized in the Enterprise Fund. The City implemented GASB 51, Accounting and Financial Reporting for Intangible Assets effective January 1, 2010, which required the City to capitalize and amortize intangible assets. Pursuant to GASB Statement 51, in the case of initial capitalization of intangible assets, the City chose not to retroactively report permanent easements. The City had already accounted for temporary easements and computer software at historical cost and therefore retroactive reporting was not necessary. The amounts of these assets are not material to the financial statements and therefore, have not been reported separately from other capital assets. The City acquired no intangible assets for the year ending December 31, 2023. Depreciation has been charged on assets using the straight-line method over the estimated useful lives of the various assets as follows: No depreciation is taken in the year of acquisition and a full year of depreciation is taken in the year of retirement. 5.Deferred Outflows/Inflows of Resources In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until that time. The City has two items that qualify for reporting in this category. The City presents deferred outflows of resources on the Statement of Net Position for deferred outflows of resources related to pensions and OPEB for various estimate differences that will be amortized and recognized over future years. 54 Council Packet Page Number 123 of 380 F3, Attachment 4 City of Maplewood Notes to Basic Financial Statements NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Equity (Continued) 5.Deferred Outflows/Inflows of Resources (Continued) In addition to liabilities, the statement of financial position and fund financial statements will sometimes report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has two items that qualify for reporting in this category. The City presents deferred inflows of resources on the Governmental Fund Balance Sheet as unavailable revenue. The governmental funds report unavailable revenues from two sources: property taxes and special assessments. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. The City presents deferred inflows of resources on the Statement of Net Position for deferred inflows of resources related to pensions and OPEB for various estimate differences that will be amortized and recognized over future years. 6.Compensated Absences All employee benefits including compensated absences are recorded in the Employee Benefits (Internal Service) Fund. The cost of employee benefits is charged to all governmental and proprietary funds as they are accrued. Consequently, the liability for compensated absences is recorded in the Employee Benefits (Internal Service) Fund. See Note 5 for further information on employee benefits. 7. Pensions For purposes of measuring the net pension liability, deferred outflows/inflows of resources, and pension expense, information about the fiduciary net position of the Public Employees Retirement Association (PERA) and the relief association and additions to/deductions from PERA's and the relief association's fiduciary net position have been determined on the same basis as they are reported by PERA and the relief association except that PERA's fiscal year end is June 30. For this purpose, plan contributions are recognized as of employer payroll paid dates and benefit payments and refunds are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. 8. Long-Term Obligations In the government-wide financial statements and proprietary fund types in the fund financial statements, long-term debt, and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type Statement of Net Position. Bond premiums and discounts are deferred and amortized over the life of the bond. Bonds payable are reported net of the applicable bond premium or discount. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. 55 Council Packet Page Number 124 of 380 F3, Attachment 4 City of Maplewood Notes to Basic Financial Statements NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D.Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Equity (Continued) 9.Fund Equity a.Classification In the fund financial statements,fund balance is divided into five classifications based primarily on the extent to which the City is bound to observe constraints imposed upon the use of resources reported in governmental funds. These classifications are as follows: Nonspendable Fund BalancesThese are amounts that cannot be spent because they are not in spendable form. Restricted Fund BalancesThese are amounts that consist of amounts related to externally imposed constraints established by creditors,grantors,or contributors; or constraints imposed by state statutory provisions. Committed Fund BalancesThese are amounts that are constrained for specific purposes that are internally imposed by formal action (resolution) of the City Council. Those committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified use by taking the same type of action it employed to previously commit those amounts. Assigned Fund BalancesThese are amounts intended to be used by the City for specific purposes but do not meet the criteria to be classified as restricted or committed. In governmental funds other than the General Fund,assigned fund balance represents the remaining amount that is not restricted or committed. In the General Fund,assigned amounts represent intended uses established by the governing body itself or by an official to which the governing body delegates the authority. Pursuant to City Council Resolution,the City's Finance Manager/Director,Asst. City Manager and/or City Manager is authorized to establish assignments of fund balance. Unassigned Fund BalancesThese are residual amounts in the General Fund not reported in any other classification. The General Fund is the only fund that can report a positive unassigned fund balance. Other funds would report a negative unassigned fund balance should the total of nonspendable,restricted,and committed fund balances exceed the total net resources of that fund. When both restricted and unrestricted resources are available for use,it is the City's policy to use restricted resources first,then unrestricted resources as they are needed. When unrestricted resources are available for use it is the City's policy to use resources in the following order: committed,assigned,and unassigned. b.Minimum Fund Balance The City's unassigned fund balance in the General Fund shall be maintained at a minimum level of 40%, with a desired level of 50%, of annual General Fund operating expenditures. 56 Council Packet Page Number 125 of 380 F3, Attachment 4 City of Maplewood Notes to Basic Financial Statements NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D.Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Equity (Continued) 10.Net Position In the government-wide financial statements, net position represents the difference between assets and deferred outflows of resources,and liabilities and deferred inflows of resources. Net position is displayed in three components: Net Investment in Capital Assets Consists of capital assets, net of accumulated depreciation, reduced by any outstanding debt attributable to acquire the capital assets. Restricted Net Position Consists of net position restricted when there are limitations imposed on their use through external restrictions imposed by creditors,grantors,laws,or regulations of other governments. Unrestricted Net Position All other net position that do not meet the definition of "restricted"or "net investment in capital assets". There is a reclassification of $1,230,000between net investment in capital assets and unrestricted net position on the total column in the Statement of Net Position to recognize the portion of debt attributable to capital assets donated from governmental activities to business- type activities. 11.Interfund Transactions Interfund services provided and used are accounted for as revenues,expenditures,or expenses. Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that are properly applicable to another fund,are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed. All other interfund transactions are reported as transfers. 12.Right-to-Use Lease Assets/Lease Liabilities The City recorded right-to-use lease assets as a result of implementing GASB Statement No. 87, Leases. The right-to-use lease assets are initially measured at an amount equal to the initial measurement of the lease liability plus any payments made prior to the lease term, less lease incentives, and plus ancillary charges necessary to place the lease into service. The right-to-use assets are amortized on a straight-line basis over the life of the related lease. Key estimates and judgments related to leases include (1) the discount rate, (2) lease term, (3) lease payments, and (4) amortization. The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the City determines its estimated borrowing rate based on the applicable State and Local Government Securities rate. The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option the City is reasonably certain to exercise. 57 Council Packet Page Number 126 of 380 F3, Attachment 4 City of Maplewood Notes to Basic Financial Statements NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Equity (Continued) 12. Right-to-Use Lease Assets/Lease Liabilities (Continued) The City monitors changes in circumstances that would require a re-measurement of the leases and will remeasure the right-to-use lease assets and liabilities if certain changes occur that are expected to significantly affect the amount of the lease liability. E. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Estimates also affect the reported amounts of revenue and expenditures/expense during the reporting period. Actual results could differ from those estimates. F. Budgetary Information The City legally adopts annual budgets for the General Fund. The City also adopts annual budgets for the Special Revenue, Debt Service, and Capital Projects Funds which are prepared on the modified accrual basis of accounting, except for the Legacy Village Park Development, and Tax Increment Economic Development District 1-15. Budgets were not adopted for these funds in 2023, and therefore, individual budget schedules are not presented. The budgets adopted for the Special Revenue and Capital Projects Funds indicate the amount that can be expended by fund based upon detailed budget estimates for individual expenditure accounts. The General Fund budget is by department and the budget for Debt Service Fund is adopted as totals for all bond issues. Budgets are also adopted as needed to calculate user charges for the Enterprise and Internal Service Funds and to determine debt service tax levies. The City Manager may approve the transfer of budget amounts between accounts within a department's budget. City Council approval is required for any increase in a department's budget. Therefore, the legal level of budgetary control is at the department level in funds that have a budget. NOTE 2 STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY A.Deficit Fund Equity At December 31, 2023, individual funds with deficit fund balances are as follows: Fund FundBalance Capital Projects Funds Public Safety Training Facility Fund$ (139,137) Tax Increment Economic Development District 1-11 (127,870) Tax Inrement District 1-13 (77,800) Tax Increment Financing District 1-15 (12,890) 58 Council Packet Page Number 127 of 380 F3, Attachment 4 City of Maplewood Notes to Basic Financial Statements NOTE 3 DEPOSITS AND INVESTMENTS Cash balances of the City's funds are combined (pooled) and invested to the extent available in various investments authorized by Minnesota Statutes. Each fund's portion of this pool (or pools) is displayed in the financial statements as "cash and cash equivalents" or "investments". For purposes of identifying risk of investing public funds, the balances and related restrictions are summarized as follows. A.Deposits Custodial Credit Risk Deposits: This is the risk that in the event of a bank failure, the City's deposits may not be returned to it. The City has a policy that requires the City's deposits be collateralized as required by Minnesota Statutes for an amount exceeding FDIC, SAIF, BIF, or FCUA coverage. As of December 31, 2023, the City's bank balance was $0 and not exposed to custodial credit risk. The book balance as of December 31, 2023, was $0 for deposits. B.Investments Investment Maturities (In Years) FairLess Pooled Investment TypeValueThan 11 - 56 - 10 External Investment Pool - 4M Fund$ 15,634,297$ 15,634,297$ -$ - Brokered Money Market Funds 1,020,938 1,020,938 - - Long-term bonds 26,621,053 5,310,094 19,574,976 1,735,983 U.S. Agencies 3,076,490 1,333,090 1,743,400 - Brokered certificates of deposit 10,997,764 4,605,212 6,392,552 - Total$ 57,350,542$ 27,903,631$ 27,710,928 $ 1,735,983 Investment Maturities (In Years) FairLess Non-Pooled Investment TypeValueThan 11 - 56 - 10 Brokered Money Market Funds$ 946,975$ 483,595$ 463,380$ - Concentration of Credit Risk: The City's investment policy states the City will diversify its investment portfolio to eliminate the risk of loss resulting from over concentration of assets in a specific issuer, or a specific class of maturities. As of December 31, 2023, the City's investments follow the guidelines stated in its investment policy. 59 Council Packet Page Number 128 of 380 F3, Attachment 4 City of Maplewood Notes to Basic Financial Statements NOTE 3 DEPOSITS AND INVESTMENTS(CONTINUED) B.Investments (Continued) Credit Risk: The City's investment policy limits investments to those specified in the above statutes. As of December 31, 2023, the FFCB and FHLMC bonds were rated AA+ by Standard and Poor's (S&P) and Aaa by Moody's Investors Services, while municipal bonds were rated AA-to AAA by S&P and A1 to Aaa by Moody's Investors Services. Brokered certificates of deposit, money market mutual funds, and U.S. Treasury notes and bonds are unrated. Interest Rate Risk: This is the risk that market values of securities in a portfolio would decrease due to changes in market value interest rates. The City's objective relating to interest rate risk is to mitigate declines in market value of investments due to changes in interest rates. The policy states the "prudent investor"standard of judgment should be used by those making investment decisions. The policy calls for diversity in type and maturity in order to achieve market rate of return and prevent loss. Custodial Credit Risk Investments: This is the risk in the event of the failure of the counterparty the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The City's policy states all investments must be fully insured and registered in the name of the City. Some City Securities held by the City's broker-dealer are not registered to the City but are held in an insured account. The account is insured up to $500,000 SIPC insurance and the broker-dealer provides an additional aggregate insurance policy for all of its customers as a group, not individually. It is unknown what portion of this policy is applicable to the City's portfolio. The City has the following recurring fair value measurements as of December 31,2023: $1,020,938of investmentsare valued using a quoted market prices (Level 1 inputs) $40,695,307of investmentsare valued using a matrix pricing model (Level 2 inputs) Summary of cash deposits and investments as of December 31,2023,were as follows: Petty cash and other cash on hand$ 22,136 Investments (Note 3.B.) 58,297,517 Total deposits and investments$ 58,319,653 Deposits and investments are presented in the December 31, 2023,basic financial statements as follows: Statement of Net Position Cash and investments$ 58,319,653 Total deposits and investments$ 58,319,653 60 Council Packet Page Number 129 of 380 F3, Attachment 4 City of Maplewood Notes to Basic Financial Statements NOTE 4 CAPITAL ASSETS Capital asset activity for the year ended December 31, 2023, was as follows: BeginningEnding BalanceIncreasesDecreasesBalance Governmental activities Capital assets, not being depreciated Land $ 14,756,520$ -$ (699,185)$ 14,057,335 Construction in progress 26,237,763 9,074,244 (10,662,634) 24,649,373 Total capital assets, not being depreciated 40,994,283 9,074,244 (11,361,819) 38,706,708 Capital assets, being depreciated Buildings 42,779,150 - (192,219) 42,586,931 Equipment 8,439,271 715,791 (405,614) 8,749,448 Vehicles 8,301,802 856,419 (620,083) 8,538,138 Other improvements 1,434,227 - - 1,434,227 Infrastructure 154,851,893 6,833,102 - 161,684,995 Lease equipment 83,513 - - 83,513 Total capital assets, being depreciated 215,889,856 8,405,312 (1,217,916) 223,077,252 Less accumulated depreciation for Buildings 16,728,830 969,281 (219,213) 17,478,898 Equipment 5,027,133 663,409 (365,054) 5,325,488 Vehicles 4,845,053 678,242 (470,756) 5,052,539 Other improvements 668,240 50,896 (40,764) 678,372 Infrastructure 58,700,644 3,771,023 - 62,471,667 Less accumulated amortization for Lease equipment 5,275 22,197 - 27,472 Total accumulated depreciation and amortization 85,975,175 6,155,048 (1,095,787) 91,034,436 Total capital assets being depreciated - net 129,914,681 2,250,264 (122,129) 132,042,816 Governmental activities capital assets - net $ 170,908,964$ 11,324,508$ (11,483,948)$ 170,749,524 Note: Construction in progress decreases exceeds capital asset additions for the year because some of the projects relate to enterprise fund additions. This is broken out once the project is completed and capital contributions are recognized. 61 Council Packet Page Number 130 of 380 F3, Attachment 4 City of Maplewood Notes to Basic Financial Statements NOTE 4 CAPITAL ASSETS (CONTINUED) Depreciation and amortization expense was charged to functions/programs of the City as follows: Governmental activities General government$ 675,480 Public safety 705,648 Public works 3,826,305 Parks and recreation 431,472 Community development 10,563 Fleet management 505,580 Total depreciation/amortization expense - governmental activities$ 6,155,048 62 Council Packet Page Number 131 of 380 F3, Attachment 4 City of Maplewood Notes to Basic Financial Statements NOTE 4 CAPITAL ASSETS (CONTINUED) NOTE 5 EMPLOYEE BENEFITS PAYABLE The Employee Benefits (Internal Service) Fund accounts for employee fringe benefit expenses and provides a reserve to finance accumulated leave benefits and severance pay. The liabilities included in this report are the portion of accrued vacation, annual leave, sick leave, and compensatory time off hours that are payable as severance pay. These employee benefits were as listed below. Vacation, annual leave, and compensatory time off are payable when used or upon termination of employment. Sick leave is payable when used and in some cases upon termination of employment. Also, in some cases, sick leave can be converted to deferred compensation or vacation. For sworn police officers, sick leave is payable upon retirement or termination under satisfactory conditions after at least ten years of service at a rate of 50% times accumulated sick leave up to 300 days. Employees hired after May 19, 1978, receive no severance pay if their position is covered by the A.F.S.C.M.E. or Metro Supervisory Association union contracts. All other employees are eligible to receive severance pay for sick leave upon termination at a rate of 50% times accumulated sick leave with a maximum allowance of 50 day's pay. 63 Council Packet Page Number 132 of 380 F3, Attachment 4 City of Maplewood Notes to Basic Financial Statements NOTE 6 LONG-TERM DEBT A. Governmental Activities During 2023, the amount of the City's long-term liabilities changed as follows: Principal and interest payments on the general obligation bonds are financed by the Debt Service Fund. The bonds are payable from special assessments, to be levied and collected for local improvement, from general property taxes, and from state street aid. The general credit of the City is obligated only to the extent that liens foreclosed against properties involved in special assessment districts are insufficient to retire outstanding bonds. Employee benefits payable will be financed by an internal service fund. It is not practicable to determine the specific year for payment of employee benefits payable. 64 Council Packet Page Number 133 of 380 F3, Attachment 4 City of Maplewood Notes to Basic Financial Statements NOTE 6 LONG-TERM DEBT (CONTINUED) A. Governmental Activities (Continued) A summary of outstanding debt at December 31, 2023, is as follows: All long-term bonded indebtedness outstanding at December 31, 2023, is backed by the full faith and credit of the City, including special assessments and water revenue bond issues. Delinquent assessments receivable at December 31, 2023, were $25,569. Long-term bonded indebtedness listed above were issued to finance acquisition and construction of capital facilities/equipment or to refinance (refund) previous bond issues. 65 Council Packet Page Number 134 of 380 F3, Attachment 4 City of Maplewood Notes to Basic Financial Statements NOTE 6 LONG-TERM DEBT (CONTINUED) A. Governmental Activities (Continued) The scheduled annual principal and interest payments on the City's indebtedness as of December 31, 2023, are the following: 66 Council Packet Page Number 135 of 380 F3, Attachment 4 City of Maplewood Notes to Basic Financial Statements NOTE 6 LONG-TERM DEBT (CONTINUED) A. Governmental Activities (Continued) Future revenue pledged for the payment of long-term debt is as follows: Revenue PledgedCurrent Year Debt Service Percentas a of TotalPercent RemainingPrincipalPledged Debtof Net Use ofTerm ofPrincipaland InterestRevenue Service Bond IssueProceedsTypeRevenuesPledgeand InterestPaidReceived TIF district financing 1999B Tax incrementTax increment100%n/a2012-2022$ - $ 105,001 $ - Infrastructure improvements 2012B ImprovementState-aid100n/a2015-2023 257,869 263,606 263,606 Infrastructure improvements 2013B RefundingSpecial assessments13n/a2014-2024 205,000 204,875 4,053 Infrastructure improvements 2015A RefundingSpecial assessments9n/a2016-2026 985,850 327,300 137 Infrastructure improvements 2015B Improvement/TIFTax increment75n/a2016-2031 662,600 107,900 64,400 Infrastructure improvements 2015C RefundingSpecial assessments30n/a2016-2027 2,082,071 683,175 95,213 Infrastructure improvements 2016A ImprovementSpecial assessments30n/a2016-2027 2,281,256 255,438 45,459 Infrastructure improvements 2016B RefundingSpecial assessments30n/a2016-2027 558,250 1,011,200 34,762 Infrastructure improvements 2017A ImprovementSpecial assessments40n/a2018-2025 2,762,000 372,925 70,886 Infrastructure improvements 2017B Advance RefundingSpecial assessments13n/a2018-2025 426,500 611,350 32,693 Infrastructure improvements 2018A Improvement/AbateSpecial assessments26n/a2018-2025 6,408,075 579,050 79,486 Infrastructure improvements 2019A ImprovementSpecial assessments36n/a2018-2025 4,344,413 367,025 86,072 Infrastructure improvements 2020A RefundingSpecial assessments39n/a2021-2032 4,783,014 631,358 243,386 Infrastructure improvements 2020B ImprovementSpecial assessments36n/a2021-2036 6,453,850 498,400 149,669 Capital Improvements 2021A CIP Fire StationProperty Taxes76n/a2022-2042 10,876,149 305,988 598,680 Infrastructure improvements 2021B RefundingSpecial assessments9n/a2022-2035 7,934,650 1,172,925 49,792 Infrastructure improvements 2022A ImprovementSpecial assessments55n/a2022-2038 3,862,075 124,338 - Infrastructure improvements 2023A ImprovementSpecial assessments30n/a2023-2039 2,739,458 - - Total$ 57,623,080$ 7,621,854$ 1,818,294 B. Lease Liability The City entered into lease agreements for copiers. The lease agreements include annual principal and interest payments as noted on the previous page. Interest and discount rates on the lease agreements are 3.5%. 67 Council Packet Page Number 136 of 380 F3, Attachment 4 City of Maplewood Notes to Basic Financial Statements NOTE 7 TAX INCREMENT DISTRICTS The City is the administering authority for the following Tax Increment Districts. The following table reflects values as of December 31, 2023: The City issued tax increment bonds in the amount of $5,185,000 in 2002, $692,297 in 1999, $8,190,000 in 1993, $1,735,000 in 1989, and $2,490,000 in 1986 for the above tax increment financing districts. These bonds were not allocated among the above districts. 68 Council Packet Page Number 137 of 380 F3, Attachment 4 City of Maplewood Notes to Basic Financial Statements NOTE 8 FUND BALANCE DETAIL At December 31, 2023, a summary of the governmental fund balance classifications are as follows: PublicStreet Nonmajor GeneralDebtImprovementRevitilizationGovernmental FundServiceProjects FundFundFundsTotal Nonspendable Prepaid items$ 44,221$ - $ - $ - $ 9,101$ 53,322 Restricted for Public safety 1,170,044 - - - - 1,170,044 Debt service - 7,780,605 - - - 7,780,605 Economic development - - - - 1,533,793 1,533,793 TIF districts - - - - 2,191,732 2,191,732 Park development - - - - 1,777,377 1,777,377 Community center improvements - - - - 126,156 126,156 Public improvement projects - - 2,400,343 - - 2,400,343 Total restricted 1,170,044 7,780,605 2,400,343 - 5,629,058 16,980,050 Committed to Charitable gambling - - - - 96,039 96,039 Police services - - - - 87,484 87,484 Tree preservation - - - - 174,643 174,643 Cable television - - - - 1,118,674 1,118,674 Fire training facility - operations - - - - 119,243 119,243 Total committed - - - - 1,596,083 1,596,083 Assigned to Public safety 396,294 - - - - 396,294 Capital projects - - - - 257,477 257,477 Fire stations - - - - 3,374,659 3,374,659 Police vehicles and equipment - - - - 418,180 418,180 Right-of-way - - - - 152,242 152,242 Streets - - - 4,709,502 668,954 5,378,456 WAC districts - - - - 983,195 983,195 Total assigned 396,294 - - 4,709,502 5,854,707 10,960,503 Unassigned 15,364,120 - - - (357,697) 15,006,423 Total fund balance$ 16,974,679 $ 7,780,605$ 2,400,343$ 4,709,502$ 12,731,252 $ 44,596,381 69 Council Packet Page Number 138 of 380 F3, Attachment 4 City of Maplewood Notes to Basic Financial Statements NOTE 9 INTERFUND ASSETS/LIABILITIES The City has the following interfund balances at December 31, 2023: Interfund balances of $279,897 represents amounts due to/from other funds and represent temporary balances due to reclassifications of funds with internally reported negative cash balances which will be eliminated with a combination of tax levies, bond proceeds, and other operating revenues. Interfund balances of $904,472 represent an advance due to the Sanitary Sewer Fund from Nonmajor Governmental Funds which represents an interfund loan related to the purchase of land. The amount of the advance is $904,472 and carries an interest rate of 3.0% until the loan is satisfied. 70 Council Packet Page Number 139 of 380 F3, Attachment 4 City of Maplewood Notes to Basic Financial Statements NOTE 10 TRANSFERS All transfers of assets between funds require city council approval. A summary of transfers by fund type are as follows: Interfund transfers allow the City to allocate financial resources to the funds that receive benefit from services provided by another fund, or to establish or close out funds. All of the City's 2023 transfers fell under that category and are considered routine and consistent with previous practice. Transfers from Debt Service Funds, into the Public Improvement Projects Fund were planned as part of the capital project financing and PIP budgets. NOTE 11 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; employment practices; injuries to employees; auto liability and physical damage; land use claims; and natural disasters. 71 Council Packet Page Number 140 of 380 F3, Attachment 4 City of Maplewood Notes to Basic Financial Statements NOTE 11 RISK MANAGEMENT (CONTINUED) 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 LMCIT based on estimated payroll and is subject to audit for the actual payroll during the policy term. The LMCIT reinsures its workers' compensation through the Workers Compensation Reinsurance Association (WCRA) as required by law. The City can select from a number of deductible options per occurrence to lower its premium costs. An experience modification factor is applied to the policy based on loss experience from the prior three years of each policy term. The premium is adjusted either up or down based on the experience modification factor. The LMCIT may also apply a premium discount to the policy which is subjective. The amount of premium adjustment, if any, is considered immaterial and not recorded until received or paid. Property and casualty insurance coverage is provided through a pooled self-insurance program through the LMCIT. The City pays an annual premium to the LMCIT based on reported exposures for the new policy term. The policy has a package modification factor based on claims experience from the past three years prior to the policy term, and the City receives a premium adjustment for its deductible and aggregate choices. The LMCIT uses various reinsurers for excess liability coverage needs and higher limit requirements based on contractual agreements. The City is subject to supplemental assessments if deemed necessary by the LMCIT. For property and casualty coverage, each occurrence deductible is $50,000 with an annual aggregate deductible of $200,000 (if the aggregate is reached, the deductible is $1,000 per loss). Settlements have not exceeded coverages for each of the past three years. The City carries commercial insurance for all other risks of loss, including life, employee health, and accident insurance. NOTE 12 PENSION PLANS The City participates in various pension plans. Total pension expense for the year ended December 31, 2023, was $4,491,777. The components of pension expense are noted in the following plan summaries. The General Fund and Environmental Utility, Recycling Program, and Sanitary Sewer Funds typically liquidate the liability related to pensions. Public Employees' Retirement Association A. Plan Description The City participates in the following cost-sharing multiple-employer defined benefit pension plans administered by PERA. PERA's defined benefit pension plans are established and administered in accordance with Minnesota Statutes Chapters 353 and 356. PERA's defined benefit pension plans are tax qualified plans under Section 401(a) of the Internal Revenue Code. General Employees Retirement Plan All full-time and certain part-time employees of the City are covered by the General Employees Plan. General Employees Plan members belong to the Coordinated Plan. Coordinated Plan members are covered by Social Security. 72 Council Packet Page Number 141 of 380 F3, Attachment 4 City of Maplewood Notes to Basic Financial Statements NOTE 12 PENSION PLANS Public Employees' Retirement Association (Continued) A.Plan Description (Continued) Public Employees Police and Fire Plan The Police and Fire Plan, 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 Police and Fire Plan 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. General Employees Plan Benefits General Employees Plan benefits are based on a member's highest average salary for any 5 successive years of allowable service, age, and years of credit at termination of service. Two methods are used to compute benefits for PERA's Coordinated Plan members. Members hired prior to July 1, 1989, receive the higher of Method 1 or Method 2 formulas. Only Method 2 is used for members hired after June 30, 1989. Under Method 1, the accrual rate for Coordinated members is 1.2% for each of the first 10 years of service and 1.7% for each additional year. Under Method 2, the accrual rate for Coordinated 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. Beginning in 2019, 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. 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 and the statute delaying increases for members retiring before full retirement age. Police and Fire Plan Benefits Benefits for the Police and Fire Plan 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 10 years of credited service. Benefits for Police and Fire Plan members first hired after June 30, 2014, vest on a prorated basis from 50% after 10 years up to 100% after 20 years of credited service. The annuity accrual rate is 3% of average salary for each year of service. For Police and Fire Plan 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. 73 Council Packet Page Number 142 of 380 F3, Attachment 4 City of Maplewood Notes to Basic Financial Statements NOTE 12 PENSION PLANS (CONTINUED) Public Employees' Retirement Association (Continued) B. Benefits Provided (Continued) Police and Fire Plan Benefits (Continued) 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. 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. General Employees Fund 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 General Employees Fund for the year ended December 31, 2023, were $568,535. The City's contributions were equal to the required contributions as set by state statute. Police and Fire Fund Contributions Police and Fire Plan members were required to contribute 11.8% of their annual covered salary in fiscal year 2023, and the City was required to contribute 17.7% for Police and Fire Plan members. The City's contributions to the Police and Fire Fund for the year ended December 31, 2023, were $1,772,626. The City's contributions were equal to the required contributions as set by state statute. D. Pension Costs General Employees Fund Pension Costs At December 31, 2023, the City reported a liability of $5,373,804 for its proportionate share of the General Employees Fund's net pension liability. The City's net pension liability reflected a reduction due to the State of Minnesota's contribution of $16 million. The State of Minnesota is considered a non-employer contributing entity and the State's contribution meets the definition of a special funding situation. The State of Minnesota's proportionate share of the net pension liability associated with the City totaled $148,213. 74 Council Packet Page Number 143 of 380 F3, Attachment 4 City of Maplewood Notes to Basic Financial Statements NOTE 12 PENSION PLANS (CONTINUED) Public Employees' Retirement Association (Continued) D.Pension Costs (Continued) General Employees Fund Pension Costs (Continued) 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 0.0961% at the end of the measurement period and 0.1003% for the beginning of the period. For the year ended December 31, 2023, the City recognized pension expense of $865,539 for its proportionate share of General Employees Plan's pension expense. Included in the amount, the City recognized $666 as pension expense (and grant revenue) for its proportionate share of the State of Minnesota's contribution of $16 million to the General Employees Fund. At December 31, 2023, the City reported its proportionate share of the General Employees Plan's deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Deferred Outflows of Inflows of ResourcesResources Differences between expected and actual economic experience$ 177,315$ 38,637 Changes in actuarial assumptions 907,133 1,472,914 Net collective difference between projected and actual investment - 239,656 earnings Changes in proportion 8,993 161,970 Contributions paid to PERA subsequent to the measurement date 284,268 - Total$ 1,377,709$ 1,913,177 75 Council Packet Page Number 144 of 380 F3, Attachment 4 City of Maplewood Notes to Basic Financial Statements NOTE 12 PENSION PLANS (CONTINUED) Public Employees' Retirement Association (Continued) D. Pension Costs (Continued) General Employees Fund Pension Costs (Continued) The $284,268 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 deferred inflows of resources related to pensions will be recognized in pension expense as follows: Police and Fire Fund Pension Costs At December 31, 2023, the City reported a liability of $12,065,641 for its proportionate share of the Police and Fire Fund'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 0.6987% at the end of the measurement period and 0.6993% for the beginning of the period. 76 Council Packet Page Number 145 of 380 F3, Attachment 4 City of Maplewood Notes to Basic Financial Statements NOTE 12 PENSION PLANS (CONTINUED) Public Employees' Retirement Association (Continued) D. Pension Costs (Continued) Police and Fire Fund Pension Costs (Continued) The State of Minnesota contributed $18 million to the Police and Fire Fund in 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 Police and Fire Fund 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 $486,050. The State of Minnesota is included as a non-employer contributing entity in the Police and Fire Retirement Plan Schedule of Employer Allocations and Schedule of Pension Amounts by Employer Only (pension allocation schedules) for the $9 million in direct state aid. Police and Fire Plan 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 $3,623,358 for its proportionate share of the Police and Fire Plan's pension expense. Included in this amount, the City recognized ($29,274) as pension expense (and grant revenue) for its proportionate share of the State of Minnesota's contribution of $9 million to the Police and Fire Fund. 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 also recognized $62,882 for the year ended December 31, 2023, as revenue and an offsetting reduction of the net pension liability for its proportionate share of the State of Minnesota's on-behalf contributions to the Police and Fire Fund. 77 Council Packet Page Number 146 of 380 F3, Attachment 4 City of Maplewood Notes to Basic Financial Statements NOTE 12 PENSION PLANS (CONTINUED) Public Employees' Retirement Association (Continued) D. Pension Costs (Continued) Police and Fire Fund Pension Costs (Continued) At December 31, 2023, the City reported its proportionate share of the Police and Fire Plan's deferred outflows of resources and deferred inflows of resources related to pensions from the following sources. Deferred Deferred Outflows of Inflows of ResourcesResources Differences between expected and actual economic experience$ 3,334,028$ - Changes in actuarial assumptions 14,041,796 16,967,569 Net collective difference between projected and actual investment - 598,535 earnings Changes in proportion 98,773 201,491 Contributions paid to PERA subsequent to the measurement date 895,789 - Total$ 18,370,386$ 17,767,595 The $895,789 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: Pension Year Ending Expense December 31, Amount 2024 $ 565,038 2025 59,999 2026 2,893,526 2027 (813,638) 2028 (2,997,923) $ (292,998) Total 78 Council Packet Page Number 147 of 380 F3, Attachment 4 City of Maplewood Notes to Basic Financial Statements NOTE 12 PENSION PLANS (CONTINUED) Public Employees' Retirement Association (Continued) E. Long-Term Expected Return on Investment The State Board of Investment, which manages the investments of PERA, prepares an analysis of the reasonableness on a regular basis of the long-term expected rate of return using a building-block method in which best-estimate ranges of expected future rates of return are developed for each major asset class. These ranges are combined to produce an expected long-term rate of return by weighting the expected future rates of return by the target asset allocation percentages. The target allocation and best estimates of geometric real rates of return for each major asset class are summarized in the following table: Long-Term Expected Real Asset ClassTarget AllocationRate of Return Domestic equity33.5%5.10% International equity16.55.30 Fixed income25.00.75 Private markets25.05.90 Total100.0% F. Actuarial Methods and Assumptions The total pension liability in the June 30, 2023, actuarial valuation was determined using an individual entry-age normal actuarial cost method. The long-term rate of return on pension plan investments used in the determination of the total liability is 7.0%. This assumption is based on a review of inflation and investments return assumptions from a number of national investment consulting firms. The review provided a range of return investment return rates deemed to be reasonable by the actuary. An investment return of 7.0% was deemed to be within that range of reasonableness for financial reporting purposes. Inflation is assumed to be 2.25% for the General Employees Plan and 2.25% for the Police and Fire Plan. Benefit increases after retirement are assumed to be 1.25% for the General Employees Plan and 1% for the Police and Fire Plan. Salary growth assumptions in the General Employees Plan range in annual increments from 10.25% after one year of service to 3.0% after 27 years of service and 6.0% per year thereafter. In the Police and Fire Plan, salary growth assumptions range from 11.75% after one year of service to 3.0% after 24 years of service. Mortality rates for the General Employees Plan are based on the Pub-2010 General Employee Mortality Table. Mortality rates for the Police and Fire Plan are based on the Pub-2010 Public Safety Employee Mortality tables. The tables are adjusted slightly to fit PERA's experience. 79 Council Packet Page Number 148 of 380 F3, Attachment 4 City of Maplewood Notes to Basic Financial Statements NOTE 12PENSION PLANS (CONTINUED) Public Employees'Retirement Association (Continued) F.Actuarial Methods and Assumptions (Continued) Actuarial assumptions for the General Employees Plan are reviewed every four years. The most recent four-year experience study for the General Employees Plan was completed in 2022. The assumption changes were adopted by the Board and became effective with the July 1, 2023, actuarial valuation. The most recent four-year experience study for the Police and Fire Plan was completed in 2020 and was 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 6.5% to 7.0%. Changes in Plan Provisions An additional one-time direct state aid contribution of $170.1 million will be contributed to the Plan on October 1, 2023. The vesting period of those hired after June 30, 2010, was changed from five years of allowable service to three years of allowable service. The benefit increase delay for early retirements on or after January 1, 2024, was eliminated. A one-time, non-compounding benefit increase of 2.5% 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 and single discount rate were changed from 6.5% to 7.0%. The single discount rate changed from 5.4% to 7.0%. Changes in Plan Provisions Additional one-time direct state aid contribution of 19.4 million will be contributed to the Plan on October 1, 2023. Vesting requirement for new hires after June 30, 2014, was changed from a graded 20-year vesting schedule to a graded 10-year vesting schedule, with 50% vesting after five years, increasing incrementally to 100% after 10 years. A one-time, non-compounding benefit increase of 3.0% 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. G.Discount Rate The discount rate used to measure the total pension liability in 2023 was 7.0%. 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 positions of the General Employees and Police and Fire Plans 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. 80 Council Packet Page Number 149 of 380 F3, Attachment 4 City of Maplewood Notes to Basic Financial Statements NOTE 12 PENSION PLANS (CONTINUED) Public Employees' Retirement Association (Continued) H. Pension Liability Sensitivity The following presents the City's proportionate share of the net pension liability for all plans it participates in, calculated using the discount rate disclosed in the preceding paragraph, as well as what the City's proportionate share of the net pension liability would be if it were calculated using a discount rate 1 percentage point lower or 1 percentage point higher than the current discount rate: I. Pension Plan Fiduciary Net Position Detailed information about each pension plan's fiduciary net position is available in a separately issued PERA financial report that includes financial statements and required supplementary information. That report may be obtained on the internet at www.mnpera.org. Deferred Compensation The majority of City employees during 2023 received supplemental pension benefits, which consist of 6% of regular gross pay for the City Manager, 3% to 4% of regular gross pay for supervisory employees and $110 to $200 per month for all other employees. The cost of these supplemental benefits in 2023 was $294,687. NOTE 13 POST EMPLOYMENT HEALTH CARE PLAN A. Plan Description The City's defined benefit OPEB plan provides a single-employer defined benefit health care plan to eligible retirees. The plan offers medical and dental coverage. Medical coverage is administered by Medica. Dental coverage is administered by Delta Dental. It is the City's policy to periodically review its medical and dental coverage and to obtain requests for proposals in order to provide the most favorable benefits and premiums for City employees and retirees. No assets are accumulated in a trust. 81 Council Packet Page Number 150 of 380 F3, Attachment 4 City of Maplewood Notes to Basic Financial Statements NOTE 13 POST EMPLOYMENT HEALTH CARE PLAN 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. Eligibility for benefits is the earlier of age 50 and 3 years of service for firefighter and police, age 55 and 3 years of service for other activities, or age 65. 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 years of age, Medicare becomes the primary insurer and the City's plan becomes secondary. C. Contributions Retirees contribute to the health care plan at the same rate as City employees. This results in the retirees receiving an implicit rate subsidy. Contribution requirements are established by the City, based on the contract terms with Medica and Delta Dental. The required contributions are based on projected pay-as-you-go financing requirements. For the year 2023, the City contributed $0 to the plan. D. Members As of January 1, 2023, the following were covered by the benefit terms: 82 Council Packet Page Number 151 of 380 F3, Attachment 4 City of Maplewood Notes to Basic Financial Statements NOTE 13 POST EMPLOYMENT HEALTH CARE PLAN (CONTINUED) E.Actuarial Assumptions The total OPEB liability was determined by an actuarial valuation as of January 1, 2023, using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified: Key Methods and Assumptions Used in Valuation of Total OPEB Liability Salary increases3.00%, including inflation Inflation2.50% Healthcare cost trend increases6.50% initially, in 2023 grading to 5.00% over 6 years and then to 4.00% over 48 years Mortality assumption Pub-2010 Public Retirement Plans Headcount- Weighted Mortality Tables with MP-2021 Generational Improvement Scale The actuarial assumptions used in the January 1, 2023, valuation was based on the results of an actuarial experience study for the period January 1, 2023throughDecember 31, 2023. The discount rate used to measure the total OPEB liability was 2.5% based on the estimated yield of 20-year municipal bonds. Assumption Changes The health care trend rates were changed to better anticipate short term and long term medical increases. The mortality tables were updated from the Pub-2010 Public Retirement Plans Headcount- Weighted Mortality Tables (General, Safety) with MP-2020 Generational Improvement Scale to the Pub-2010 Public Retirement Plans Headcount-Weighted Mortality Tables (General, Safety) with MP-2021 Generational Improvement Scale. The retirement, withdrawal, and salary increase rates for public safety employees were updated to reflect the latest experience study. The inflation rate was changed from 2.00% to 2.50%. The retiree plan participation percentage was changed from 60% to 30%. The discount rate was changed from 2.00% to 4.00%. F.Total OPEB Liability The City's total OPEB liability of $1,878,505was measured as of January 1, 2023, and was determined by an actuarial valuation as of January 1, 2023. 83 Council Packet Page Number 152 of 380 F3, Attachment 4 City of Maplewood Notes to Basic Financial Statements NOTE 13 POST EMPLOYMENT HEALTH CARE PLAN (CONTINUED) F. Total OPEB Liability (Continued) Changes in the total OPEB liability are as follows: The General Fund, and Ambulance Service, Environmental Utility, Recycling Program, and Sanitary Sewer business-type activities enterprise funds typically liquidate the liability related to OPEB. G. OPEB Liability Sensitivity The following presents the City's total OPEB liability calculated using the discount rate of 2.0% as well as the liability measured using 1 percentage lower and 1percentage higher than the current discount rate. 84 Council Packet Page Number 153 of 380 F3, Attachment 4 City of Maplewood Notes to Basic Financial Statements NOTE 13 POST EMPLOYMENT HEALTH CARE PLAN (CONTINUED) G. OPEB Liability Sensitivity (Continued) 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 percentage lower and 1 percentage higher than the current healthcare cost trend rates. H. OPEB Expense, Deferred Outflows of Resources, and Deferred Inflows of Resources Related to OPEB For the year ended December 31, 2023, the City recognized OPEB expense of $13,322. At December 31, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Deferred Outflows ofInflows of ResourcesResources Assumption changes$ 183,047$ 1,124,124 Liability losses 586,121 463,244 Employer contributions made after the measurement date 179,670 - Total$ 948,838$ 1,587,368 85 Council Packet Page Number 154 of 380 F3, Attachment 4 City of Maplewood Notes to Basic Financial Statements NOTE 13 POST EMPLOYMENT HEALTH CARE PLAN (CONTINUED) H. OPEB Expense, Deferred Outflows of Resources, and Deferred Inflows of Resources Related to OPEB (Continued) The $179,670 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: NOTE 14 CONTRACT COMMITMENTS The City has entered into numerous construction contracts with outstanding commitments as of December 31, 2023, of $512,245 for the Public Improvement Projects Fund. NOTE 15 CONTINGENCIES A. Litigation The City is a defendant in various lawsuits. The likelihood of loss is unknown, however, losses up to $1,000,000 will be covered by the City's insurance carrier, less a $50,000 deductible. The resolution of these matters should not have a material adverse effect on the financial condition of the City. B. 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 is 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 of the individual fund types included herein or on the overall financial position of the City at December 31, 2023. C. 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. 86 Council Packet Page Number 155 of 380 F3, Attachment 4 City of Maplewood Notes to Basic Financial Statements NOTE 16 COMMERCIAL DEVELOPMENT REVENUE NOTES/BONDS From time to time, the City has issued Commercial Development Revenue Notes/Bonds in accordance with the Minnesota Municipal Industrial Development Act. These obligations are issued to provide financial assistance to private-sector entities for the acquisition and construction of industrial and commercial facilities deemed to be in the public interest. The obligations are secured by the property financed and are payable solely from payments received on the underlying mortgage loans. Upon repayment of the obligations, ownership of the acquired facilities transfers to the private- sector entity served by the debt issuance. Neither the City, the State nor any political subdivision is obligated in any manner for repayment of the obligations. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. There were 15 series of notes/bonds outstanding, with an aggregate principal amount payable of $42,211,280 on December 31, 2023. NOTE 17 DEFERRED AD VALOREM TAX LEVIES BONDED DEBT General obligation bond issues sold by the City are financed by ad valorem tax levies and special assessment bond issues in addition to special assessments levied against the benefiting properties. When a bond issue to be financed partially or completely by ad valorem tax levies is sold, specific annual amounts of such tax levies are stated in the bond resolution and the County Auditor is notified and instructed to levy these taxes over the appropriate years. The future tax levies are subject to cancellation when and if the City has provided alternative sources of financing. The City Council is required to levy any additional taxes found necessary for full payment of principal and interest. These future scheduled tax levies are not shown as assets in the accompanying financial statements at December 31, 2023. 87 Council Packet Page Number 156 of 380 F3, Attachment 4 88 Council Packet Page Number 157 of 380 F3, Attachment 4 REQUIRED SUPPLEMENTARY INFORMATION 89 Council Packet Page Number 158 of 380 F3, Attachment 4 City of Maplewood Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - General Fund Year Ended December 31, 2023 Budgeted Amount Variance with OriginalActual Final Budget - and FinalAmounts Over (Under) Revenues General property taxes$ 19,759,738$ 19,539,483$ (220,255) Miscellaneous taxes - 6,759 6,759 Licenses and permits 1,625,800 2,331,544 705,744 Special assessments - 277 277 Intergovernmental Public safety aid - 1,170,044 1,170,044 Fire aid 230,000 273,875 43,875 Police aid 585,000 676,451 91,451 Federal grants 105,000 153,842 48,842 Other grants and aids 366,860 315,940 (50,920) Total intergovernmental revenue 1,286,860 2,590,152 1,303,292 Charges for services General government 601,700 222,063 (379,637) Public safety 100 150 50 Public works 2,000 900 (1,100) Parks and recreation 50,200 62,773 12,573 Community development 325,400 483,389 157,989 Total charges for services 979,400 769,275 (210,125) Fines and forfeits 140,000 164,131 24,131 Investment income 60,000 625,400 565,400 Miscellaneous Contributions and donations - 9,446 9,446 Rent 1,500 2,339 839 Other 49,000 116,267 67,267 Total miscellaneous 50,500 128,052 77,552 Total revenues 23,902,298 26,155,073 2,252,775 Expenditures General government Administration 1,904,529 1,950,559 46,030 Finance 1,549,878 1,302,411 (247,467) Legislative 168,366 166,404 (1,962) Total general government 3,622,773 3,419,374 (203,399) Public safety Police 11,866,058 11,143,411 (722,647) Police capital outlay - 614,061 614,061 Fire 2,689,837 2,883,127 193,290 Total public safety 14,555,895 14,640,599 84,704 See notes to required supplementary information. 90 Council Packet Page Number 159 of 380 F3, Attachment 4 City of Maplewood Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - General Fund Year Ended December 31, 2023 Budgeted Amounts Variance with Actual Final Budget - Amounts FinalOver (Under) Expenditures (Continued) Public works Administration$ 400,062$ 391,047$ (9,015) Streets and alleys 1,013,692 992,361 (21,331) Engineering 788,165 730,596 (57,569) Snow and ice removal 889,641 841,684 (47,957) Transit operations 1,090,868 1,074,678 (16,190) Building operations 672,936 624,131 (48,805) Total public works 4,855,364 4,654,497 (200,867) Parks and recreation Park administration 498,003 481,704 (16,299) Park maintenance 55,683 51,752 (3,931) Recreation program - 1,899 1,899 Total parks and recreation 553,686 535,355 (18,331) Community development 1,684,580 1,823,645 139,065 Debt service Principal - 154,156 154,156 Interest and other charges - 16,804 16,804 Total debt service - 170,960 170,960 Total expenditures 25,272,298 25,244,430 (27,868) Excess of revenues over (under) expenditures (1,370,000) 910,643 2,280,643 Other Financing Sources (Uses) Transfers in 1,370,000 1,370,000 - Transfers out - (1,150,000) (1,150,000) Proceeds from sale of capital asset - 12,324 12,324 Issuance of finance purchases - 557,061 557,061 Total other financing sources (uses) 1,370,000 789,385 (580,615) Net change in fund balances$ - 1,700,028 $ 1,700,028 Fund Balances Beginning of year15,274,651 End of year$ 16,974,679 See notes to required supplementary information. 91 Council Packet Page Number 160 of 380 F3, Attachment 4 See notes to required supplementary information. 92 Council Packet Page Number 161 of 380 F3, Attachment 4 93 Council Packet Page Number 162 of 380 F3, Attachment 4 City of Maplewood Schedule of City's Proportionate Share of Net Pension Liability General Employees Retirement Fund Last Ten Years City's Proportionate Share of the State's Net Pension City's City's City's Proportionate Liability and Proportionate Proportionate Proportionate Share the State's Share of the Plan Fiduciary Share Share (Amount) of Proportionate Net Pension Net Position (Percentage) (Amount) of the Net Share of the Liability as a of the Net the Net Pension Net Pension (Asset) as a Percentage of Pension Pension Liability Liability Percentage of the Total City's Covered For Fiscal Year Liability Liability Associated Associated its Covered Pension Payroll Ended June 30,(Asset)(Asset) with the Citywith the CityPayroll Liability 20150.1134%$ 5,876,977$ - $ 5,876,977$ 6,552,18789.69%78.19% 20160.1067% 8,663,511 113,115 8,776,626 6,618,947130.89%68.91% 20170.1053% 6,722,283 84,525 6,806,808 6,783,50799.10%75.90% 20180.0985% 5,464,376 179,363 5,643,739 6,622,94782.51%79.53% 20190.0968% 5,351,855 166,326 5,518,181 6,849,78778.13%80.23% 20200.0997% 5,977,471 184,370 6,161,841 7,108,61384.09%79.06% 20210.1003% 4,283,259 130,722 4,413,981 7,217,29359.35%87.00% 20220.0980% 7,761,632 227,609 7,989,241 7,342,173105.71%76.67% 20230.0961% 5,373,804 148,213 5,522,017 7,645,34770.29%83.10% Note: Schedule is intended to show ten year trend. Additional years will be reported as they become available. Schedule of City's Proportionate Share of Net Pension Liability Public Employees Police and Fire Retirement Fund Last Ten Years City's Proportionate Share of the State's Net Pension City's Proportionate Liablility and Proportionate Share the State's Share of the Plan Fiduciary City's City's (Amount) of Proportionate Net Pension Net Position Proportion of Proportionate the Net Share of the Liability as a the Net Share of the Pension Net Pension (Asset) as a Percentage of Pension Net Pension Liability Liablility Percentage of the Total For Fiscal Year Liability Liability Associated Associated City's Covered its Covered Pension Ended June 30,(Asset)(Asset) with the Citywith the CityPayrollPayroll Liability 20150.6780%7,703,667$ N/A$ 7,703,667$ 6,041,580127.51%86.61% 20160.6570%26,366,553 N/A26,366,553 6,329,895416.54%63.88% 20170.6720%9,012,320 N/A 9,012,320 6,902,148130.57%85.43% 20180.6754%7,138,282 N/A 7,138,282 7,118,302100.28%88.84% 20190.7310%7,683,549 N/A 7,683,549 7,710,89699.65%89.26% 20200.7234%9,470,081 $ 224,619 9,694,700 8,163,365118.76%87.19% 20210.7035%5,366,960 244,121 5,611,081 8,314,00667.49%93.66% 20220.6993%30,430,774 1,329,477 31,760,251 8,495,288373.86%70.53% 20230.6987%12,065,641 486,050 12,551,691 9,175,548136.80%86.47% Note: Schedule is intended to show ten year trend. Additional years will be reported as they become available. See notes to required supplementary information. 94 Council Packet Page Number 163 of 380 F3, Attachment 4 City of Maplewood Schedule of City Contributions General Employees Retirement Fund Last Ten Years Contributions Contributions in Relation to as a Fiscal Year Statutorily the Statutorily Contribution Percentage of Ending Required Required Deficiency City's Covered Covered December 31,ContributionContributions(Excess)PayrollPayroll 2015$ 491,414$ 491,414$ -$ 6,552,1877.5% 2016 504,776 504,776 - 6,730,347 7.5% 2017 481,830 481,830 - 6,424,400 7.5% 2018 511,996 511,996 - 6,826,613 7.5% 2019 520,443 520,443 - 6,939,240 7.5% 2020 557,727 557,727 - 7,436,360 7.5% 2021 555,451 555,451 - 7,406,013 7.5% 2022 552,607 552,607 - 7,368,093 7.5% 2023 568,535 568,535 - 7,580,467 7.5% Note: Schedule is intended to show ten year trend. Additional years will be reported as they become available. Schedule of City Contributions Public Employees Police and Fire Retirement Fund Last Ten Years Contributions Contributions in Relation to as a Fiscal Year Statutorily the Statutorily Contribution Percentage of Ending Required Required Deficiency City's Covered Covered December 31, ContributionContributions(Excess)PayrollPayroll 2015$ 978,736$ 978,736$ -$ 6,041,58016.20% 2016 1,051,846 1,051,846 - 6,492,877 16.20% 2017 1,113,654 1,113,654 - 6,874,407 16.20% 2018 1,191,914 1,191,914 - 7,357,494 16.20% 2019 1,357,690 1,357,690 - 8,009,971 16.95% 2020 1,414,302 1,414,302 - 7,990,407 17.70% 2021 1,484,438 1,484,438 - 8,386,655 17.70% 2022 1,517,543 1,517,543 - 8,573,689 17.70% 2023 1,772,626 1,772,626 - 10,014,83617.70% Note: Schedule is intended to show ten year trend. Additional years will be reported as they become available. See notes to required supplementary information. 95 Council Packet Page Number 164 of 380 F3, Attachment 4 City of Maplewood Notes to Required Supplementary Information Budgets The General Fund and Special Revenue Fund budgets are 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 all funds. General Employees Fund 2023 Changes Changes in Actuarial Assumptions The investment return assumption and single discount rate were changed from 6.5% to 7.0%. 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 2.5% minus the actual 2024 adjustment will be payable in a lump sum for calendar year 2024 by March 31, 2024. 2022 Changes Changes in Actuarial Assumptions The mortality improvement scale was changed from scale MP-2020 to scale MP-2021. Changes in Plan Provisions There have been no changes since the prior valuation. 2021 Changes Changes in Actuarial Assumptions The investment return and single discount rates were changed from 7.5% to 6.5% for financial reporting purposes. The mortality improvement scale was changed from scale MP-2019 to scale MP-2020. Changes in Plan Provisions There have been no changes since the prior valuation. 2020 Changes Changes in Actuarial Assumptions The price inflation assumption was decreased from 2.5% to 2.25%. The payroll growth assumption was decreased from 3.25% to 3.0%. Assumed salary increase rates were changed as recommended in the June 30, 2019, experience study. The net effect is assumed rates that average 0.25% less than previous rates. Assumed rates of retirement were changed as recommended in the June 30, 2019, experience study. The changes result in more unreduced (normal) retirements and slightly fewer Rule of 90 and early retirements. Assumed rates of termination were changedas recommended in the June 30, 2019, experience study. The new rates are based on service and are generally lower than the previous rates for years 2-5 and slightly higher thereafter. Assumed rates of disability were changed as recommended in the June 30, 2019, experience study. The change results in fewer predicted disability retirements for males and females. 96 Council Packet Page Number 165 of 380 F3, Attachment 4 City of Maplewood Notes to Required Supplementary Information General Employees Fund (Continued) 2020 Changes (Continued) Changes in Actuarial Assumptions (Continued) The base mortality table for healthy annuitants and employees was changed from the RP-2014 table to the Pub-2010 General Mortality table, with adjustments. The base mortality table for disabled annuitants was changed from the RP-2014 disabled annuitant mortality table to the Pub-2010 General/Teacher disabled annuitant mortality table, with adjustments. The mortality improvement scale was changed from Scale MP-2018 to Scale MP-2019. The assumed spouse age difference was changed from two years older for females to one year older. The assumed number of married male new retirees electing the 100% Joint and Survivor option changed from 35% to 45%. The assumed number of married female new retires electing the 100% Joint and Survivor option changed from 15% to 30%. The corresponding number of married new retirees electing the Life annuity option was adjusted accordingly. Changes in Plan Provisions Augmentation for current privatized members was reduced to 2.0% for the period July 1, 2020 through December 31, 2023, and 0.0% thereafter. Augmentation was eliminated for privatizations occurring after June 30, 2020. 2019 Changes Changes in Actuarial Assumptions The mortality projection scale was changed from MP-2017 to MP-2018. Changes in Plan Provisions The employer supplemental contribution was changed prospectively, decreasing from $31.0 million to $21.0 million per year. The State's special funding contribution was changed prospectively, requiring $16.0 million due per year through 2031. 2018 Changes Changes in Actuarial Assumptions The mortality projection scale was changed from MP-2015 to MP-2017. The assumed benefit increase was changed from 1.0% per year through 2044 and 2.5% per year thereafter to 1.25% per year. Changes in Plan Provisions The augmentation adjustment in early retirement factors is eliminated over a five-year period starting July 1, 2019, resulting in actuarial equivalence after June 30, 2024. Interest credited on member contributions decreased from 4.00% to 3.00%, beginning July 1, 2018. Deferred augmentation was changed to 0.00%, effective January 1, 2019. Augmentation that has already accrued for deferred members will still apply. Contribution stabilizer provisions were repealed. Annualincreases were changed from 1.00% per year with a provision to increase to 2.50% upon attainment of 90.00% funding ratio to 50.00% of the Social Security Cost of Living Adjustment, not less than 1.00% and not more than 1.50%, beginning January 1, 2019. For retirements on or after January 1, 2024, the first benefit increase is delayed until the retiree reaches normal retirement age; does not apply to Rule of 90 retirees, disability benefit recipients, or survivors. Actuarial equivalent factors were updated to reflect revised mortality and interest assumptions. 97 Council Packet Page Number 166 of 380 F3, Attachment 4 City of Maplewood Notes to Required Supplementary Information General Employees Fund (Continued) 2017 Changes Changes in Actuarial Assumptions The 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% for vested deferred member liability and 3% for non-vested deferred member liability. The assumed annualincrease rate was changed from 1.0% per year for all years to 1.0% per year through 2044 and 2.5% per year thereafter. Changes in Plan Provisions The State's contribution for the Minneapolis Employees Retirement Fund equals $16,000,000 in 2017 and 2018, and $6,000,000 thereafter. The Employer Supplemental Contribution for the Minneapolis Employees Retirement Fund changed from $21,000,000 to $31,000,000 in calendar years 2019 to 2031. The State's contribution changed from $16,000,000 to $6,000,000 in calendar years 2019 to 2031. 2016 Changes Changes in Actuarial Assumptions The assumed 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, the inflation wasdecreased by 0.25% to 3.25% for payroll growth and 2.50% for inflation. Changes in Plan Provisions There have been no changes since the prior valuation. 2015 Changes Changes in Actuarial Assumptions The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2030 and 2.5% per year thereafter to 1.0% per year through 2035 and 2.5% per year thereafter. Changes in Plan Provisions On January 1, 2015, the Minneapolis Employees Retirement Fund was merged into the General Employees Fund, which increased the total pension liability by $1.1 billion and increased the fiduciary plan net position by $892 million. Upon consolidation, state and employer contributions were revised; the State's contribution of $6.0 million, which meets the special funding situation definition, was due September 2015. 98 Council Packet Page Number 167 of 380 F3, Attachment 4 City of Maplewood Notes to Required Supplementary Information Police and Fire Fund 2023 Changes Changes in Actuarial Assumptions The investment return assumption was changed from 6.5% to 7.0%. The single discount rate changed from 5.4% to 7.0%. Changes in Plan Provisions Additional one-time direct state aid contribution of 19.4 million will be contributed to the Plan on October 1, 2023. Vesting requirement for new hires after June 30, 2014, was changed from a graded 20-year vesting schedule to a graded 10-year vesting schedule, with 50% vesting after five years, increasing incrementally to 100% after 10 years. A one-time, non-compounding benefit increase of 3.0% will be payable in a lump sum for calendar year 2024 by March 31, 2024. Psychological treatment is required effective July 1, 2023, prior to approval for a duty disability benefit for a psychological condition relating to the member's occupation. The total and permanent duty disability benefit was increased, effective July 1, 2023. 2022 Changes Changes in Actuarial Assumptions The mortality improvement scale was changed from scale MP-2020 to scale MP-2021. The single discount rate was changed from 6.5% to 5.4%. Changes in Plan Provisions There have been no changes since the prior valuation. 2021 Changes Changes in Actuarial Assumptions The investment return and single discount rates were changed from 7.5% to 6.5% for financial reporting purposes. The inflation assumption was changed from 2.5% to 2.25%. The payroll growth assumption was changed from 3.25% to 3.0%. The base mortality table for healthy annuitants and employees was changed from the RP-2014 table to the Pub-2010 Public Safety mortality table. The mortality improvement scale was changed from MP-2019 to MP-2020. The base mortality table for disabled annuitants was changed from the RP-2014 healthy annuitant mortality table (with future mortality improvement according to scale MP-2019) to the Pub-2010 Public Safety disabled annuitant mortality table (with future mortality improvement according to scale MP-2020). Assumed rates of salary increase were modified as recommended in the July 14, 2020, experience study. The overall impact is a decrease in gross salary increase rates. Assumed rates of retirement were changed as recommended in the July 14, 2020, experience study. The changes resulted in slightly more unreduced retirements and fewer assumed early retirements. Assumed rates of withdrawal were changed from select and ultimate rates to service-based rates. The changes resulted in more assumed terminations. Assumed rates of disability were increased for ages 25-44 and decreased for ages over 49. Overall, proposed rates resulted in more projected disabilities. Assumed percent married for active female members was changed from 60% to 70%. Minor changes to form of payment assumptions were applied. 99 Council Packet Page Number 168 of 380 F3, Attachment 4 City of Maplewood Notes to Required Supplementary Information Police and Fire Fund(Continued) 2021 Changes (Continued) Changes in Plan Provisions There have been no changes since the prior valuation. 2020 Changes Changes in Actuarial Assumptions The mortality projection scale was changed from MP-2018 to MP-2019. Changes in Plan Provisions There have been no changes since the prior valuation. 2019 Changes Changes in Actuarial Assumptions The mortality projection scale was changed from MP-2017 to MP-2018. Changes in Plan Provisions There have been no changes since the prior valuation. 2018 Changes Changes in Actuarial Assumptions The mortality projection scale was changed from MP-2016 to MP-2017. Changes in Plan Provisions Annualincreases were changed to 1.00% for all years, with no trigger. An end date of July 1, 2048,was added to the existing $9.0 million state contribution. New annual state aid will equal $4.5 million in fiscal years 2019 and 2020, and $9.0 million thereafter until the plan reaches 100% funding, or July 1, 2048, if earlier. Member contributions were changed from 10.80% to 11.30% of pay, effective January 1, 2019, and 11.80% of pay, effective January 1, 2020. Employer contributions were changed from 16.20% to 16.95% of pay, effective January 1, 2019,and 17.70% of pay, effective January 1, 2020. Interest credited on member contributions decreased from 4.00% to 3.00%, beginning July 1, 2018. Deferred augmentation was changed to 0.00%, effective January 1, 2019. Augmentation that has already accrued for deferred members will still apply. Actuarial equivalent factors were updated to reflect revised mortality and interest assumptions. 2017 Changes Changes in Actuarial Assumptions Assumed salary increases were changed as recommended in the June 30, 2016,experience study. The net effect is proposed rates that average 0.34% lower than the previous rates. Assumed rates of retirement were changed, resulting in fewer retirements. The CSA load was 30% for vested and non-vested deferred members. The CSA has been changed to 33% for vested members and 2% 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. 100 Council Packet Page Number 169 of 380 F3, Attachment 4 City of Maplewood Notes to Required Supplementary Information Police and Fire Fund (Continued) 2017 Changes (Continued) Changes in Actuarial Assumptions (Continued) 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 annualbenefit increase rate was changed from 1% for all years to 1% per year through 2064 and 2.5% thereafter. The single discount rate was changed from 5.6% per annum to 7.5% per annum. Changes in Plan Provisions There have been no changes since the prior valuation. 2016 Changes Changes in Actuarial Assumptions The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2037 and 2.5% 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 single discount rate changed from 7.90% to 5.60%. The assumed future salary increases, payroll growth, and inflation wasdecreased by 0.25% to 3.25% for payroll growth and 2.50% for inflation. Changes in Plan Provisions There have been no changes since the prior valuation. 2015 Changes Changes in Actuarial Assumptions The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2030 and 2.5% per year thereafter to 1.0% per year through 2037 and 2.5% per year thereafter. Changes in Plan Provisions The post-retirement benefit increase to be paid after attainment of the 90% funding threshold was changed, from inflation up to 2.5%, to a fixed rate of 2.5%. 101 Council Packet Page Number 170 of 380 F3, Attachment 4 City of Maplewood Notes to Required Supplementary Information Post Employment Healthcare Plan 2023 Changes Changes in Actuarial Assumptions The health care trend rates were changed to better anticipate short term and long term medical increases. The mortality tables were updated from the Pub-2010 Public Retirement Plans Headcount- Weighted Mortality Tables (General, Safety) with MP-2020 Generational Improvement Scale to the Pub-2010 Public Retirement Plans Headcount-Weighted Mortality Tables (General, Safety) with MP-2021 Generational Improvement Scale. The retirement, withdrawal, and salary increase rates for public safety employees were updated to reflect the latest experience study. The inflation rate was changed from 2.00% to 2.50%. The retiree plan participation percentage was changed from 60% to 30%. The discount rate was changed from 2.00% to 4.00%. 2022 Changes Changes in Actuarial Assumptions None 2021 Changes Changes in Actuarial Assumptions The health care trend rates were changed to better anticipate short term and long term medical increases. The mortality tables were updated from the RP-2014 Mortality Tables (Blue Collar for Public Safety, White Collar for Others) with MP-2018 Generational Improvement Scale to the Pub- 2010 Public Retirement Plans Headcount-Weighted Mortality Tables (General, Safety) with MP-2020 Generational Improvement Scale. The inflation rate was changed from 2.50% to 2.00%. The retirement and withdrawal tables for non-public safety employees were updated. The salary increase rates were changed from a flat 3.00% per year for all employees to rates which vary by service and contract group. The discount rate was changed from 2.90% to 2.00%. 2020 Changes Changes in Actuarial Assumptions The discount rate was changedfrom 3.80% to 2.9% at January 1, 2020. 2019 Changes Changes in Actuarial Assumptions The discount rate was changes from 3.30% to 3.80% at January 1, 2019. The retiree plan participation percentage was changed from 75% to 60%. The retirement and withdrawal tables for Police and Fire Personnel were updated. The health care trend rates were changed to better anticipate short term and long term medical increases. The mortality tables were updated from the RP-2014 White Collar Mortality Tables with MP- 2016 Generational Improvement Scale (with Blue Collar adjustment for Police and Fire Personnel) to the RP-2014 White Collar Mortality Tables with MP-2018 Generational Improvement Scale (with Blue Collar adjustment for Police and Fire Personnel). 102 Council Packet Page Number 171 of 380 F3, Attachment 4 City of Maplewood Notes to Required Supplementary Information Post Employment Healthcare Plan(Continued) 2018 Changes Changes in Actuarial Assumptions The discount rate was changedfrom 3.80% to 3.30% at January 1, 2018. 103 Council Packet Page Number 172 of 380 F3, Attachment 4 104 Council Packet Page Number 173 of 380 F3, Attachment 4 SUPPLEMENTARY INFORMATION 105 Council Packet Page Number 174 of 380 F3, Attachment 4 106 Council Packet Page Number 175 of 380 F3, Attachment 4 City of Maplewood Nonmajor Governmental Funds Special Revenue Funds Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted or committed to expenditures for specified purposes. Capital Projects Funds The Capital Project Funds account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by proprietary funds). 107 Council Packet Page Number 176 of 380 F3, Attachment 4 City of Maplewood Combining Balance Sheet - Nonmajor Governmental Funds December 31, 2023 Total Nonmajor Special Governmental RevenueCapital ProjectsFunds Assets Cash and investments $ 2,983,099$ 10,646,690$ 13,629,789 Accrued interest receivable 5,725 38,745 44,470 Due from other governments 39,614 56,822 96,436 Accounts receivable 151,447 300 151,747 Property taxes receivable Delinquent 2,267 35,321 37,588 Due from Ramsey County 3,194 32,628 35,822 Notes receivable - 100,000 100,000 Prepaid items 9,101 - 9,101 Land held for resale 1,000,447 - 1,000,447 Total assets $ 4,194,894$ 10,910,506$ 15,105,400 Liabilities Accounts payable $ 17,590$ 955,729$ 973,319 Due to other governments 10,153 3,799 13,952 Contracts payable - 20,419 20,419 Deposits payable 93,178 20,674 113,852 Salaries and benefits payable 10,957 2,392 13,349 Due to other funds - 279,897 279,897 Advance payable 904,472 - 904,472 Unearned revenue 17,300 - 17,300 Total liabilities 1,053,650 1,282,910 2,336,560 Deferred Inflows of Resources Unavailable revenue - taxes and assessments 2,267 35,321 37,588 Fund Balances Nonspendable 9,101 - 9,101 Restricted 1,533,793 4,095,265 5,629,058 Committed 1,596,083 - 1,596,083 Assigned - 5,854,707 5,854,707 Unassigned - (357,697) (357,697) Total fund balances 3,138,977 9,592,275 12,731,252 Total liabilities, deferred inflows of resources, and fund balances $ 4,194,894$ 10,910,506$ 15,105,400 108 Council Packet Page Number 177 of 380 F3, Attachment 4 City of Maplewood Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Governmental Funds Year Ended December 31, 2023 Total Nonmajor Special Capital Governmental RevenueProjectsFunds Revenues General property taxes $ 147,621$ 1,145,128$ 1,292,749 Tax increment collections - 2,001,506 2,001,506 Miscellaneous taxes 579,912 - 579,912 Licenses and permits - 17,071 17,071 Intergovernmental - 52,500 52,500 Charges for services 21,050 562,422 583,472 Fines and forfeitures 6,150 - 6,150 Investment income 68,515 500,864 569,379 Miscellaneous Contributions and donations - 500 500 Rent 129,382 38,959 168,341 Other 55,464 1,062 56,526 Total revenues 1,008,094 4,320,012 5,328,106 Expenditures Current Community development 20,722 - 20,722 Administration 555,141 48,896 604,037 Fire 91,233 - 91,233 Legislative 48,381 - 48,381 Parks and recreation - 11,227 11,227 Public works 16,500 37,594 54,094 Debt service Principal payments 345 - 345 TIF developer payments - 1,365,553 1,365,553 28 - 28 Interest and other charges Capital outlay Administration - 83,010 83,010 Fire - 1,109,000 1,109,000 Parks and recreation - 853,668 853,668 Police - 401,739 401,739 Total expenditures 732,350 3,910,687 4,643,037 Excess of revenues over expenditures 275,744 409,325 685,069 Other Financing Sources (Uses) Proceeds from sale of capital assets 684,774 1,953 686,727 Transfers in - 735,000 735,000 Transfers out (40,000) (605,614) (645,614) Total other financing sources (uses) 644,774 131,339 776,113 Net change in fund balances 920,518 540,664 1,461,182 Fund Balances Beginning of year 2,218,459 9,051,611 11,270,070 End of year $ 3,138,977$ 9,592,275$ 12,731,252 109 Council Packet Page Number 178 of 380 F3, Attachment 4 110 Council Packet Page Number 179 of 380 F3, Attachment 4 City of Maplewood Nonmajor Special Revenue Funds The Special Revenue Funds account for the proceeds of specific revenue sources that are restricted to expenditures for specific purposes. The City of Maplewood had the following Special Revenue Funds: Charitable Gambling Tax Fund Accounts for the use of charitable gambling tax revenue. This tax became effective September 10, 1990, and is assessed at a rate of 10% of the net receipts that charitable organizations receive from lawful gambling. The tax revenue cannot be expended for general municipal purposes but must be earmarked for charitable purposes. Maplewood Area EDA Fund Accounts for funds to be used for development within the City. Police Services Fund Accounts for money that is legally restricted for police services. Most of the fund revenues are from confiscated money that is split between the City, County, and State. Tree Preservation Fund Accounts for the accumulation of funds charged to developers to be used to plant trees within the City. Cable Television Fund Accounts for Cable TV franchise fees and related expenditures. Fire Training Facility - Operations Accounts for revenue and expenditures related to fire training facility operations. 111 Council Packet Page Number 180 of 380 F3, Attachment 4 City of Maplewood Combining Balance Sheet - Nonmajor Special Revenue Funds December 31, 2023 Special Revenue 219 Tree 205 Charitable 280 Maplewood 208 Police Preservation Gambling TaxArea EDAServicesFund Assets Cash and investments$ 110,616$ 1,435,324$ 180,040$ 173,926 Accrued interest receivable - - 622 717 Due from other governments - - - - Accounts receivable 11,017 500 - - Property taxes receivable - 2,267 - - Delinquent Due from Ramsey County - 3,194 - - Prepaid items - - - - Land held for resale - 1,000,447 - - Total assets$ 121,633$ 2,441,732$ 180,662$ 174,643 Liabilities Accounts payable$ 15,925$ -$ -$ - Deposits payable - - 93,178 - Due to other governments 9,669 - - - Salaries payable - - - - Advance payable - 904,472 - - Unearned revenue - 1,200 - - Total liabilities 25,594 905,672 93,178 - Deferred Inflows of Resources Unavailable revenue - taxes and assessments - 2,267 - - Fund Balances Nonspendable - - - - Restricted - 1,533,793 - - Committed 96,039 - 87,484 174,643 Total fund balances 96,039 1,533,793 87,484 174,643 Total liabilities, deferred inflows of resources, and fund balances$ 121,633$ 2,441,732$ 180,662$ 174,643 112 Council Packet Page Number 181 of 380 F3, Attachment 4 Special Revenue 211 Fire Training 222 Cable Facility - TelevisionOperationsTotal $ 1,004,928$ 78,265$ 2,983,099 4,049 337 5,725 2 39,612 39,614 138,417 1,513 151,447 - - 2,267 - - 3,194 6,483 2,618 9,101 - - 1,000,447 $ 1,153,879$ 122,345$ 4,194,894 $ 1,665$ -$ 17,590 - - 93,178 - 484 10,153 10,957 - 10,957 - - 904,472 16,100 - 17,300 28,722 484 1,053,650 - - 2,267 6,483 2,618 9,101 - - 1,533,793 1,118,674 119,243 1,596,083 1,125,157 121,861 3,138,977 $ 1,153,879$ 122,345$ 4,194,894 113 Council Packet Page Number 182 of 380 F3, Attachment 4 City of Maplewood Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Special Revenue Funds Year Ended December 31, 2023 Special Revenue 219 Tree 205 Charitable 280 Maplewood 208 Police Preservation Gambling TaxArea EDAServicesFund Revenues Taxes General property taxes$ -$ 147,621$ -$ - Miscellaneous taxes 51,861 - - - Charges for services - - - - Fines and forfeitures - - 6,150 - Investment income - - 6,666 7,824 Miscellaneous Rent - - - - Other - 29,954 223 25,183 Total revenues 51,861 177,575 13,039 33,007 Expenditures Current Admininstration - - - - Community development - 20,722 - - Fire - - - - Legislative 48,381 - - - Public works - - - 16,500 Debt service Principal - - - - Interest and other charges - - - - Total expenditures 48,381 20,722 - 16,500 Excess of revenues over expenditures 3,480 156,853 13,039 16,507 Other Financing Sources (Uses) Proceeds from sale of capital assets - 684,774 - - Transfers out - - - - Total other financing sources (uses) - 684,774 - - Net change in fund balances 3,480 841,627 13,039 16,507 Fund Balances Beginning of year 92,559 692,166 74,445 158,136 End of year$ 96,039$ 1,533,793$ 87,484$ 174,643 114 Council Packet Page Number 183 of 380 F3, Attachment 4 Special Revenue 211 Fire Training 222 Cable Facility - TelevisionOperationsTotal $ -$ -$ 147,621 528,051 - 579,912 21,050 - 21,050 - - 6,150 49,170 4,855 68,515 - 129,382 129,382 2 102 55,464 598,273 134,339 1,008,094 555,141 - 555,141 - - 20,722 - 91,233 91,233 - - 48,381 - - 16,500 345 - 345 28 - 28 555,514 91,233 732,350 42,759 43,106 275,744 - - 684,774 - (40,000) (40,000) - (40,000) 644,774 42,759 3,106 920,518 1,082,398 118,755 2,218,459 $ 1,125,157$ 121,861$ 3,138,977 115 Council Packet Page Number 184 of 380 F3, Attachment 4 116 Council Packet Page Number 185 of 380 F3, Attachment 4 City of Maplewood Nonmajor Capital Projects Funds The Capital Projects 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 Maplewood had the following Capital Project Funds: General Building Replacement Fund Established to account for expenditures for building replacement. Community Center Building Improvements Fund Established to account for expenditures related to the maintenance and capital needs of the Community Center. Capital Improvement Projects Fund Established to finance major capital outlay expenditures that individually cost in excess of $50,000 and that cannot be easily financed by alternative sources. Property taxes are levied periodically for this fund. Police Vehicles and Equipment Fund Established to account for expenditures for police vehicles and equipment. Legacy Village Park Development Fund Established in 2004 with the issuance of tax abatement bonds. The fund will be used to account for park development costs in the Legacy Village development. Park Development Fund Accounts for the use of park availability charges, grants, and tax revenues which are dedicated for the acquisition and improvement of City parks. Park availability charges are levied against all new building constructed. Public Safety Training Facility Fund Established in 2010 to account for the costs associated with a future Fire Training Facility for the east metro. Fire Station Fund Established in 2010 to account for the costs associated with a future Fire Training Facility for the east metro. Right-of-Way Fund Accounts for the accumulation of funds received for degradation of City streets and rights-of-way. The funds are used for repairs. 117 Council Packet Page Number 186 of 380 F3, Attachment 4 118 Council Packet Page Number 187 of 380 F3, Attachment 4 City of Maplewood Nonmajor Capital Projects Funds Tax Increment Funds Accounts for the expenditures financed by the tax increment revenue from ten tax increment districts. Water Availability Charge Fund North St. Paul District Accounts for the receipt of water availability charge revenues collected in the North St. Paul Water Service District. Disbursements are made from this fund to finance unassessed water system improvements. Water Availability Charge Fund St. Paul District Accounts for the receipt of water availability charge revenues collected in the St. Paul Water Service District. Disbursements are made from this fund to finance unassessed water system improvements. 119 Council Packet Page Number 188 of 380 F3, Attachment 4 City of Maplewood Combining Balance Sheet - Nonmajor Capital Projects Funds December 31, 2023 Capital Projects 401 General Building 402 Community 405 Capital 406 Police Replacement Center Building Improvement Vehicles and FundImprovementsProjectsEquipment Assets Cash and investments$ 705,252$ 121,193$ 267,465$ 409,938 Accounts receivable - - - - Interest receivable 2,523 297 867 1,288 Due from other governments - - - 57 Property taxes receivable Delinquent 4,428 3,527 3,517 5,277 Due from Ramsey County 6,399 4,666 4,619 6,897 Notes receivable - - - - Total assets$ 718,602$ 129,683$ 276,468$ 423,457 Liabilities Due to other funds$ -$ -$ -$ - Accounts payable 45,220 - 900 - Due to other governments - - - - Contracts payable - - - - Salaries and benefits payable - - - - Deposits payable - - 14,574 - Total liabilities 45,220 - 15,474 - Deferred Inflows of Resources Unavailable revenue - taxes and assessments 4,428 3,527 3,517 5,277 Fund Balances Restricted - 126,156 - - Assigned 668,954 - 257,477 418,180 Unassigned - - - - Total fund balances 668,954 126,156 257,477 418,180 Total liabilities, deferred inflows of resources, and fund balances$ 718,602$ 129,683$ 276,468$ 423,457 120 Council Packet Page Number 189 of 380 F3, Attachment 4 Capital Projects 443 Tax 448 Tax Increment Increment 433 Legacy 440 Public Economic Econ. Village Park 403 Park Safety Training 432 Fire 409 Right-of-Development Development DevelopmentDevelopmentFacility FundStation FundWayDistrict 1-11District 1-12 $ 12,144$ 1,799,241$ -$ 3,416,785$ 151,351$ -$ 1,093,334 - - - - 300 - - 48 7,074 - 13,337 591 - 3,413 - - - - - - - - - - 2,890 - - - - - - 2,449 - - - - - - - - - - $ 12,192$ 1,806,315$ -$ 3,435,461$ 152,242$ -$ 1,096,747 $ -$ -$ 139,137$ -$ -$ 127,870$ - - 14,611 - 57,912 - - 361,128 - - - - - - - - 20,419 - - - - - - - - - - - - 6,100 - - - - - - 6,100 35,030 139,137 57,912 - 127,870 361,128 - - - 2,890 - - - 6,092 1,771,285 - - - - 735,619 - - - 3,374,659 152,242 - - - - (139,137) - - (127,870) - 6,092 1,771,285 (139,137) 3,374,659 152,242 (127,870) 735,619 $ 12,192$ 1,806,315$ -$ 3,435,461$ 152,242$ -$ 1,096,747 121 Council Packet Page Number 190 of 380 F3, Attachment 4 City of Maplewood Combining Balance Sheet - Nonmajor Capital Projects Funds December 31, 2023 Capital Projects 416 Tax 417 Tax 418 Tax 428 Tax Increment Increment Increment Increment Housing 1-4Housing 1-5Housing 1-6Housing 1-7 Assets Cash and investments$ 63,249$ 143,483$ 808,814$ 19,144 Accounts receivable - - - - Interest receivable 249 564 3,038 53 Due from other governments - - - - Property taxes receivable Delinquent - - - - Due from Ramsey County - - - - Notes receivable 100,000 - - - Total assets$ 163,498$ 144,047$ 811,852$ 19,197 Liabilities Due to other funds$ -$ -$ -$ - Accounts payable - - 150 10,891 Due to other governments - - 3,799 - Contracts payable - - - - Salaries and benefits payable - - - - Deposits payable - - - - Total liabilities - - 3,949 10,891 Deferred Inflows of Resources Unavailable revenue - taxes and assessments - - - - Fund Balances Restricted 163,498 144,047 807,903 8,306 Assigned - - - - Unassigned - - - - Total fund balances 163,498 144,047 807,903 8,306 Total liabilities, deferred inflows of resources, and fund balances$ 163,498$ 144,047$ 811,852$ 19,197 122 Council Packet Page Number 191 of 380 F3, Attachment 4 (Continued) Capital Projects 451 Tax Increment 453 Tax 429 Tax 441 Tax 449 Tax Econ. Increment Increment Increment Increment Development Financing Housing 1-8Housing 1-10District 1-13District 1-14District 1-15 $ 180,446$ 131,092$ 221,719$ 176,690$ - - - - - - 589 292 482 568 - - - - - - 2,575 - 13,107 - - - 3,961 3,637 - - - - - - - $ 183,610$ 135,345$ 238,945$ 177,258$ - $ -$ -$ -$ -$ 12,890 55,429 105,850 303,638 - - - - - - - - - - - - - - - - - - - - - - 55,429 105,850 303,638 - 12,890 2,575 - 13,107 - - 125,606 29,495 - 177,258 - - - - - - - - (77,800) - (12,890) 125,606 29,495 (77,800) 177,258 (12,890) $ 183,610$ 135,345$ 238,945$ 177,258$ - 123 Council Packet Page Number 192 of 380 F3, Attachment 4 124 Council Packet Page Number 193 of 380 F3, Attachment 4 City of Maplewood Combining Balance Sheet - Nonmajor Capital Projects Funds December 31, 2023 (Continued) Capital Projects 408 Water Availability 407 Water Charge North Availability St. Paul Charge St. Paul DistrictDistrictTotal Assets Cash and investments$ 65,346$ 860,004$ 10,646,690 Accounts receivable - - 300 Interest receivable 254 3,218 38,745 Due from other governments 783 55,982 56,822 Property taxes receivable Delinquent - - 35,321 Due from Ramsey County - - 32,628 Notes receivable - - 100,000 Total assets$ 66,383$ 919,204$ 10,910,506 Liabilities Due to other funds$ -$ -$ 279,897 Accounts payable - - 955,729 Due to other governments - - 3,799 Contracts payable - - 20,419 Salaries and benefits payable - 2,392 2,392 Deposits payable - - 20,674 Total liabilities - 2,392 1,282,910 Deferred Inflows of Resources Unavailable revenue - taxes and assessments - - 35,321 Fund Balances Restricted - - 4,095,265 Assigned 412,332 570,863 5,854,707 Unassigned - - (357,697) Total fund balances 412,332 570,863 9,592,275 Total liabilities, deferred inflows of resources, and fund balances$ 412,332$ 573,255$ 10,910,506 125 Council Packet Page Number 194 of 380 F3, Attachment 4 City of Maplewood Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Capital Projects Funds Year Ended December 31, 2023 Capital Projects 401 General Building 402 Community 405 Capital 406 Police Replacement Center Building Improvement Vehicles & FundImprovementsProjectsEquipment Revenues General property taxes$ 295,509$ 213,620$ 216,816$ 296,554 Tax increment collections - - - - Intergovernmental - - - 52,500 Licenses and permits - - - - Charges for services Park availability charges - - - - Water availability charges - - - - Connection charges - - - - Investment income 4,153 5,686 19,192 18,846 Miscellaneous Contributions and donations - - - 500 Rent - - - - Other - - - 1,062 Total revenues 299,662 219,306 236,008 369,462 Expenditures Current Administration - - - - Parks and recreation - 9,800 - - Public works - - - - Debt service TIF developer payments - - - - Capital outlay Administration 83,010 - - - Fire - - - - Parks and recreation - 264,346 144,542 - Police - - - 401,739 Total expenditures 83,010 274,146 144,542 401,739 Excess of revenues over (under) expenditures 216,652 (54,840) 91,466 (32,277) Other Financing Sources (Uses) Proceeds from sale of capital asset - 1,953 - - Transfers in 200,000 150,000 - - Transfers out - - - - Total other financing sources (uses) 200,000 151,953 - - Net change in fund balances 416,652 97,113 91,466 (32,277) Fund Balances Beginning of year 252,302 29,043 166,011 450,457 End of year$ 668,954$ 126,156$ 257,477$ 418,180 126 Council Packet Page Number 195 of 380 F3, Attachment 4 Capital Projects 443 Tax Increment 433 Legacy 440 Public Economic Village Park 403 Park Safety Training 432 Fire 409 Right-of-Development DevelopmentDevelopmentFacility FundStation FundWayDistrict 1-11 $ -$ -$ -$ 122,629$ -$ - - - - - - - - - - - - - - - - - 17,071 - - 3,540 - - - - - - - - - - - - - - - - 582 85,479 - 240,797 5,836 - - - - - - - - 38,959 - - - - - - - - - - 582 127,978 - 363,426 22,907 - - - - - - - - 1,427 - - - - - - - - - - - - - - - - - - - - - - - - - 1,109,000 - - - 444,780 - - - - - - - - - - - 446,207 - 1,109,000 - - 582 (318,229) - (745,574) 22,907 - - - - - - - - 345,000 40,000 - - - - - - (112,428) - - - 345,000 40,000 (112,428) - - 582 26,771 40,000 (858,002) 22,907 - 5,510 1,744,514 (179,137) 4,232,661 129,335 (127,870) $ 6,092$ 1,771,285$ (139,137) $ 3,374,659$ 152,242$ (127,870) 127 Council Packet Page Number 196 of 380 F3, Attachment 4 City of Maplewood Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Capital Projects Funds Year Ended December 31, 2023 Capital Projects 448 Tax Increment Econ. 416 Tax 417 Tax 418 Tax Development Increment Increment Increment District 1-12Housing 1-4Housing 1-5Housing 1-6 Revenues General property taxes$ -$ -$ -$ - Tax increment collections 902,819 - - 188,466 Intergovernmental - - - - Licenses and permits - - - - Charges for services Park availability charges - - - - Water availability charges - - - - Connection charges - - - - Investment income 38,836 4,112 7,754 34,021 Miscellaneous Contributions and donations - - - - Rent - - - - Other - - - - Total revenues 941,655 4,112 7,754 222,487 Expenditures Current Administration - - - 48,896 Parks and recreation - - - - Public works - - - - Debt service TIF developer payments 722,255 - - - Capital outlay Administration - - - - Fire - - - - Parks and recreation - - - - Police - - - - Total expenditures 722,255 - - 48,896 Excess of revenues over (under) expenditures 219,400 4,112 7,754 173,591 Other Financing Sources (Uses) Proceeds from sale of capital asset - - - - Transfers in - - - - Transfers out (114,831) (16,460) (13,400) (78,368) Total other financing sources (uses) (114,831) (16,460) (13,400) (78,368) Net change in fund balances 104,569 (12,348) (5,646) 95,223 Fund Balances Beginning of year 631,050 175,846 149,693 712,680 End of year$ 735,619$ 163,498$ 144,047$ 807,903 128 Council Packet Page Number 197 of 380 F3, Attachment 4 (Continued) Capital Projects 451 Tax 408 Water Increment 453 Tax Availability 428 Tax 429 Tax 441 Tax 449 Tax Econ. Increment Charge North Increment Increment Increment Increment Development Financing St. Paul Housing 1-7Housing 1-8Housing 1-10District 1-13District 1-14District 1-15District $ -$ -$ -$ -$ -$ -$ - 23,172 125,741 227,456 404,281 129,571 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 11,842 - - - - - - - 589 6,293 3,589 (1,489) 317 - 2,514 - - - - - - - - - - - - - - - - - - - - - 23,761 132,034 231,045 402,792 129,888 - 14,356 - - - - - - - - - - - - - - - - - - - - 1,480 21,782 113,167 204,711 303,638 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 21,782 113,167 204,711 303,638 - - 1,480 1,979 18,867 26,334 99,154 129,888 - 12,876 - - - - - - - - - - - - - - (331) (1,361) (22,864) (69,713) - - - (331) (1,361) (22,864) (69,713) - - - 1,648 17,506 3,470 29,441 129,888 - 12,876 6,658 108,100 26,025 (107,241) 47,370 (12,890) 53,507 $ 8,306$ 125,606$ 29,495$ (77,800)$ 177,258$ (12,890)$ 66,383 129 Council Packet Page Number 198 of 380 F3, Attachment 4 130 Council Packet Page Number 199 of 380 F3, Attachment 4 City of Maplewood Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Capital Projects Funds Year Ended December 31, 2023 (Continued) Capital Projects 407 Water Availability Charge St. Paul DistrictTotal Revenues General property taxes$ -$ 1,145,128 Tax increment collections -2,001,506 Intergovernmental - 52,500 Licenses and permits - 17,071 Charges for services Park availability charges - 3,540 Water availability charges 529,940541,782 Connection charges 17,100 17,100 Investment income 23,757500,864 Miscellaneous Contributions and donations - 500 Rent - 38,959 Other - 1,062 Total revenues 570,797 4,320,012 Expenditures Current Administration - 48,896 Parks and recreation - 11,227 Public works 36,114 37,594 Debt service TIF developer payments -1,365,553 Capital outlay Administration - 83,010 Fire -1,109,000 Parks and recreation -853,668 Police -401,739 Total expenditures 36,114 3,910,687 Excess of revenues over (under) expenditures 534,683 409,325 Other Financing Sources (Uses) Proceeds from sale of capital asset - 1,953 Transfers in -735,000 Transfers out (175,858) (605,614) Total other financing sources (uses) (175,858) 131,339 Net change in fund balances 358,825 540,664 Fund Balances Beginning of year 557,987 9,051,611 End of year$ 916,812$ 9,592,275 131 Council Packet Page Number 200 of 380 F3, Attachment 4 132 Council Packet Page Number 201 of 380 F3, Attachment 4 133 Council Packet Page Number 202 of 380 F3, Attachment 4 134 Council Packet Page Number 203 of 380 F3, Attachment 4 135 Council Packet Page Number 204 of 380 F3, Attachment 4 136 Council Packet Page Number 205 of 380 F3, Attachment 4 137 Council Packet Page Number 206 of 380 F3, Attachment 4 City of Maplewood Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - Note: Debt Service Fund indexof thedesiredenterprisefund fromtheGASB Year Ended December 31, 2023 34FundsFinalgroupinglist. Ifyouhave added/modifiedthesample GASB34FundsFinal sub groups, thelinksin thespread sheet belowwill require suitable modifications. 2023 Use theplusor minusbuttonson the far left tohide Variance with thelookuprows. Original and ActualFinal Budget - Final BudgetAmountsOver (Under) Revenues $ 4,892,661$ 4,825,548$ (67,113) General property taxes 915,030 895,162 (19,868) Special assessments 524,706 524,706 - Intergovernmental 63,300 282,254 218,954 Investment income 6,395,697 6,527,670 131,973 Total revenues Expenditures Current - 40,328 40,328 Finance Debt service 6,362,638 6,362,643 5 Principal retirement 1,486,274 1,519,571 33,297 Interest and other charges 7,848,912 7,922,542 73,630 Total expenditures Excess of revenues over (1,453,215) (1,394,872) 58,343 (under) expenditures Other Financing Sources (Uses) 2,876,120 1,945,000 (931,120) Issuance of bonds -178,500 178,500 Premium on bonds issued 957,646957,646 - Transfers in (2,876,120) (2,047,945) 828,175 Transfers out Total other financing 957,646 1,033,201 75,555 sources (uses) $ (495,569) (361,671)$ 133,898 Net change in fund balances Fund Balances 8,142,276 Beginning of year $ 7,780,605 End of year 138 Council Packet Page Number 207 of 380 F3, Attachment 4 139 Council Packet Page Number 208 of 380 F3, Attachment 4 140 Council Packet Page Number 209 of 380 F3, Attachment 4 141 Council Packet Page Number 210 of 380 F3, Attachment 4 142 Council Packet Page Number 211 of 380 F3, Attachment 4 143 Council Packet Page Number 212 of 380 F3, Attachment 4 144 Council Packet Page Number 213 of 380 F3, Attachment 4 145 Council Packet Page Number 214 of 380 F3, Attachment 4 146 Council Packet Page Number 215 of 380 F3, Attachment 4 147 Council Packet Page Number 216 of 380 F3, Attachment 4 148 Council Packet Page Number 217 of 380 F3, Attachment 4 City of Maplewood Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - Note: Capital Projects Fund - Tax Increment Economic District 1-11 indexof the desiredenterprise fund fromtheGASB Year Ended December 31, 2023 34FundsFinalgroupinglist. Ifyouhave added/modifiedthesample GASB34FundsFinal sub groups, thelinksin thespread sheet belowwill 2023 require suitable modifications. Variance with Use theplusor minusbuttonson the far left tohide Original and ActualFinal Budget - thelookuprows. Final BudgetAmountsOver (Under) Revenues $ -$ -$ - Investment income Expenditures Current Administration - - - Excess of revenues over - - - (under) expenditures Other Financing Sources (Uses) - - - Transfers out $ - -$ - Net change in fund balances Fund Balances (127,870) Beginning of year $ (127,870) End of year 149 Council Packet Page Number 218 of 380 F3, Attachment 4 150 Council Packet Page Number 219 of 380 F3, Attachment 4 151 Council Packet Page Number 220 of 380 F3, Attachment 4 152 Council Packet Page Number 221 of 380 F3, Attachment 4 153 Council Packet Page Number 222 of 380 F3, Attachment 4 City of Maplewood Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - Note: Capital Projects Fund - Tax Increment Housing 1-7 index of the desired enterprise fund from the GASB Year Ended December 31, 2023 34 Funds Final grouping list. If you have added/modified the sample GASB 34 Funds Final sub groups, the links in the spread sheet below will require suitable modifications. 2023 Use the plus or minus buttons on the far left to hide Variance with the lookup rows. Original and ActualFinal Budget - Final BudgetAmountsOver (Under) Revenues $ 25,000$ 23,172$ (1,828) Tax increments 100 589 489 Investment income 25,100 23,761 (1,339) Total revenues Expenditures Current Administration 1,000 - (1,000) Debt service TIF developer payments 24,000 21,782 (2,218) 25,000 21,782 (3,218) Total expenditures Excess of revenues 100 1,979 1,879 over expenditures Other Financing Sources (Uses) (330) (331) (1) Transfers out $ (230) 1,648$ 1,878 Net Change in Fund Balances Fund Balances 6,658 Beginning of year $ 8,306 End of year 154 Council Packet Page Number 223 of 380 F3, Attachment 4 City of Maplewood Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - Note: Capital Projects Fund - Tax Increment Housing 1-8 index of the desired enterprise fund from the GASB Year Ended December 31, 2023 34 Funds Final grouping list. If you have added/modified the sample GASB 34 Funds Final sub groups, the links in the spread sheet below will require suitable modifications. 2023 Use the plus or minus buttons on the far left to hide Variance with the lookup rows. Original and ActualFinal Budget - Final BudgetAmountsOver (Under) Revenues $ 112,000$ 125,741$ 13,741 Tax increments 1,000 6,293 5,293 Investment income 113,000 132,034 19,034 Total revenues Expenditures Current Administration 1,000 - (1,000) Debt service TIF developer payments 100,000 113,167 13,167 101,000 113,167 12,167 Total expenditures Excess of revenues 12,000 18,867 6,867 over expenditures Other Financing Sources (Uses) (1,360) (1,361) (1) Transfers Out $ 10,640 17,506$ 6,866 Net Change in Fund Balances Fund Balances 108,100 Beginning of year $ 125,606 End of year 155 Council Packet Page Number 224 of 380 F3, Attachment 4 156 Council Packet Page Number 225 of 380 F3, Attachment 4 City of Maplewood Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - Note: Capital Projects Fund - Tax Increment Housing 1-13 index of the desired enterprise fund from the GASB Year Ended December 31, 2023 34 Funds Final grouping list. If you have added/modified the sample GASB 34 Funds Final sub groups, the links in the spread sheet below will require suitable modifications. 2023 Use the plus or minus buttons on the far left to hide Variance with the lookup rows. Original and ActualFinal Budget - Final BudgetAmountsOver (Under) Revenues $ 400,000$ 404,281$ 4,281 Tax increments - (1,489) (1,489) Investment income 400,000 402,792 2,792 Total revenues Expenditures Current Administration 1,000 - (1,000) Debt service TIF developer payments 300,000 303,638 3,638 301,000 303,638 2,638 Total expenditures Excess of revenues 99,000 99,154 154 over expenditures Other Financing Uses (69,710) (69,713) (3) Transfers out $ 29,290 29,441$ 151 Net change in fund balances Fund Balances (107,241) Beginning of year $ (77,800) End of year 157 Council Packet Page Number 226 of 380 F3, Attachment 4 158 Council Packet Page Number 227 of 380 F3, Attachment 4 159 Council Packet Page Number 228 of 380 F3, Attachment 4 160 Council Packet Page Number 229 of 380 F3, Attachment 4 City of Maplewood Internal Service Funds An Internal Service Fund is defined as a fund to account for the financing of goods or services provided by one department to other departments of the City, or to other governmental units, on a cost-reimbursement basis. The City of Maplewood had the following Internal Service Funds: Information Technology Fund Accounts for the maintenance, repairs, and operation of the City's computer hardware and software. These operating expenses are used as a basis to charge departments for the use of the data processing system. Employee Benefits Fund Accounts for employee fringe benefit expenses and provides a reserve to finance accumulated leave benefits and severance pay. These operating expenses are used as a basis to determine amounts to be charged to departments for leave, retirement, and insurance benefits. The charges are levied as a percentage of employees' gross pay. Dental Insurance Fund Accounts for employee dental benefit expenses. These operating expenses are used as a basis to determine amounts to be charged to departments for insurance benefits. The charges are levied as a percentage of employees' gross pay. Fleet Management Fund Accounts for the operating expenses of all City vehicles and major pieces of equipment (except for public safety vehicles). These operating expenses are used as a basis to establish rental rates that are charged to the departments using the vehicles. Risk Management Fund Accounts for the general insurance and risk management expenses and provides a reserve to finance premiums, claims, and deductibles. These operating expenses are used as a basis to determine amounts to be charged to departments for general insurance and risk management. The charges are levied as a percentage of the departments' cost for annual insurance premiums. 161 Council Packet Page Number 230 of 380 F3, Attachment 4 City of Maplewood Statement of Net Position - Internal Service Funds December 31, 2023 703 Information 701 Employee 704 Dental TechnologyBenefitsInsurance Assets Current assets $ 387,774$ 2,343,186$ 67,687 Cash and cash equivalents 1,576 9,048 259 Accrued interest receivable 613 76,367 - Due from other governments - - - Inventory 55,436 147,011 - Prepaid items 445,399 2,575,612 67,946 Total current assets Noncurrent assets Capital assets 37,790 - - Buildings 618,016 - - Structures, vehicles, and equipment 655,806 - - Total capital assets (603,746) - - Less accumulated depreciation 52,060 - - Net capital assets $ 497,459$ 2,575,612$ 67,946 Total assets Liabilities Current liabilities Accounts payable $ 49,126$ -$ - Due to other governments - 24,484 - Salaries payable 12,907 151,204 - Employee benefits payable - current portion - 94,483 - Total current liabilities 62,033 270,171 - Noncurrent liabilities Employee benefits payable - noncurrent portion - 1,912,545 - Total liabilities 62,033 2,182,716 - Net Position Net investment in capital assets 52,060 - - Unrestricted 383,366 392,896 67,946 Total net position 435,426 392,896 67,946 $ 497,459$ 2,575,612$ 67,946 Total liabilities and net position 162 Council Packet Page Number 231 of 380 F3, Attachment 4 702 Fleet 705 Risk ManagementManagementTotal $ 181,262$ 616,463$ 3,596,372 616 2,506 14,005 259 - 77,239 140,085 - 140,085 730 78,224 281,401 322,952 697,193 4,109,102 - - 37,790 7,197,920 - 7,815,936 7,197,920 - 7,853,726 (4,175,019) - (4,778,765) 3,022,901 - 3,074,961 $ 3,345,853$ 697,193$ 7,184,063 $ 122,290$ -$ 171,416 2,588 - 27,072 11,007 - 175,118 - - 94,483 135,885 - 468,089 - - 1,912,545 135,885 - 2,380,634 3,022,901 - 3,074,961 187,067 697,193 1,728,468 3,209,968 697,193 4,803,429 $ 3,345,853$ 697,193$ 7,184,063 163 Council Packet Page Number 232 of 380 F3, Attachment 4 164 Council Packet Page Number 233 of 380 F3, Attachment 4 165 Council Packet Page Number 234 of 380 F3, Attachment 4 166 Council Packet Page Number 235 of 380 F3, Attachment 4 167 Council Packet Page Number 236 of 380 F3, Attachment 4 168 Council Packet Page Number 237 of 380 F3, Attachment 4 169 Council Packet Page Number 238 of 380 F3, Attachment 4 170 Council Packet Page Number 239 of 380 F3, Attachment 4 171 Council Packet Page Number 240 of 380 F3, Attachment 4 172 Council Packet Page Number 241 of 380 F3, Attachment 4 173 Council Packet Page Number 242 of 380 F3, Attachment 4 City of Maplewood Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances - Debt Service Funds Year Ended December 31, 2023 Debt Service 354/371 G.O. Improvement 366 G.O. State Bonds 2006A 336 G.O. Tax Aid Street 368 G.O. and G.O. Increment Refunding Refunding Refunding Bonds Bonds 1999BBonds 2012BBonds 2013B2015A Revenues Taxes $ -$ -$ 211,831$ 338,079 Current - - 440 332 Delinquent Special assessments - - 3,874 - Current collections - - 179 137 Delinquent collections - - - - Prepayments on deferred - - 54 121 Penalties - 263,606 - - Intergovernmental 559 6,447 415 12,302 Investment income 559 270,053 216,793 350,971 Total revenues Expenditures Current 432 697 697 697 Contractual services Debt service 28,091 255,000 195,000 295,000 Principal retirement 76,909 9,155 10,425 32,848 Interest and other charges 105,432 264,852 206,122 328,545 Total expenditures Excess of revenues over (104,873) 5,201 10,671 22,426 (under) expenditures Other Financing Sources (Uses) Issuance of bonds - - - - Premium on bonds issued - - - - Transfers in 105,500 - - - Transfers out - - - - Total other financing sources (uses) 105,500 - - - Net change in fund balances 627 5,201 10,671 22,426 Fund Balances Beginning of year 20,925 118,614 23,849 322,104 End of year$ 21,552$ 123,815$ 34,520$ 344,530 174 Council Packet Page Number 243 of 380 F3, Attachment 4 Debt Service 372 G.O. 373 G.O. 375 G.O. 377 Lease Improve/TIF/EImprove 374 G.O. Improvement Purchase - 378 G.O. quip Bonds Refund Bonds Improvement Refunding Bonds Pumper Truck - Improvement 2015B2015CBonds - 2016A- 2016B2017Bonds - 2017A $ 50,234$ 420,060$ 163,276$ 52,732$ -$ 264,566 165 456 - 470 - 225 - 90,643 43,627 31,884 - 53,801 - 3,104 257 2,878 - 650 - 1,465 1,576 - - 16,434 - 1,173 50 663 - 162 - - - 261,100 - - 3,390 7,254 35,019 31,415 - 21,959 53,789 524,155 243,805 381,142 - 357,797 697 697 697 697 - 697 90,000 615,000 210,000 980,000 91,799 295,000 18,450 68,725 45,934 31,696 2,084 78,419 109,147 684,422 256,631 1,012,393 93,883 374,116 (55,358) (160,267) (12,826) (631,251) (93,883) (16,319) - - - - - - - - - - - - 64,400 117,923 - 203,176 - - - - - - - - 64,400 117,923 - 203,176 - - 9,042 (42,344) (12,826) (428,075) (93,883) (16,319) 113,233 377,433 791,456 759,172 93,883 588,415 $ 122,275$ 335,089$ 778,630$ 331,097$ -$ 572,096 175 Council Packet Page Number 244 of 380 F3, Attachment 4 City of Maplewood Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances - Debt Service Funds Year Ended December 31, 2023 Debt Service 381 Capital 379 G.O. 380 G.O. Lease Purchase 382 G.O. Refunding Improvement - 2019 Fire Improvement Bonds - 2017BBonds 2018ATruckBonds 2019A Revenues Taxes $ 140,441$ 455,797$ -$ 247,687 Current 880 358 - 381 Delinquent Special assessments 25,719 68,127 - 81,630 Current collections 381 1,662 - 1,158 Delinquent collections 6,593 9,697 - 3,284 Prepayments on deferred 229 478 - 170 Penalties - - - - Intergovernmental 23,929 41,184 - 36,551 Investment income 198,172 577,303 - 370,861 Total revenues Expenditures Current 697 697 - 697 Contractual services Debt service 595,000 395,000 102,753 260,000 Principal retirement 16,846 184,600 9,675 107,499 Interest and other charges 612,543 580,297 112,428 368,196 Total expenditures Excess of revenues over (414,371) (2,994) (112,428) 2,665 (under) expenditures Other Financing Sources (Uses) Issuance of bonds - - - - Premium on bonds issued - - - - Transfers in 90,241 - 112,428 - Transfers out - - - - Total other financing sources (uses) 90,241 - 112,428 - Net change in fund balances (324,130) (2,994) - 2,665 Fund Balances Beginning of year 701,144 1,057,914 - 883,322 End of year$ 377,014$ 1,054,920$ -$ 885,987 176 Council Packet Page Number 245 of 380 F3, Attachment 4 Debt Service 383 G.O. 384 G.O. 385 G.O. Fire 386 G.O. 387 G.O. Refunding Improvement Station Bonds - Refunding Bonds Improvement Bonds 2020ABonds 2020B2021A- 2021BBonds - 2022A $ 213,401$ 338,612$ 597,731$ 1,060,926$ 262,934 201 929 949 1,455 - 237,459 113,269 - 42,413 - 667 - - 72 - 5,260 36,400 - 7,307 - 201 124 - 130 - - - - - - 12,274 39,842 - (7,908) 4 469,463 529,176 598,680 1,104,395 262,938 698 697 697 697 265 540,000 335,000 125,000 955,000 - 91,377 163,875 181,464 218,397 124,813 632,075 499,572 307,161 1,174,094 125,078 (162,612) 29,604 291,519 (69,699) 137,860 - - - - - - - - - - 161,550 - - 102,428 - - - - - - 161,550 - - 102,428 - (1,062) 29,604 291,519 32,729 137,860 510,781 1,025,695 66,825 669,770 17,741 $ 509,719$ 1,055,299$ 358,344$ 702,499$ 155,601 177 Council Packet Page Number 246 of 380 F3, Attachment 4 178 Council Packet Page Number 247 of 380 F3, Attachment 4 City of Maplewood Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances - Debt Service Funds Year Ended December 31, 2023 (Continued) Debt Service 388 G.O. Improvement Bonds - 2023ATotal Revenues Taxes $ -$ 4,818,307 Current - 7,241 Delinquent Special assessments - 792,446 Current collections - 11,145 Delinquent collections - 88,016 Prepayments on deferred - 3,555 Penalties - 524,706 Intergovernmental 17,618 282,254 Investment income 17,618 6,527,670 Total revenues Expenditures Current 29,175 40,328 Contractual services Debt service - 6,362,643 Principal retirement 46,380 1,519,571 Interest and other charges 75,555 7,922,542 Total expenditures Excess of revenues over (57,937) (1,394,872) (under) expenditures Other Financing Sources (Uses) Issuance of bonds 1,945,000 1,945,000 Premium on bonds issued 178,500 178,500 Transfers in - 957,646 Transfers out (2,047,945) (2,047,945) Total other financing sources (uses) 75,555 1,033,201 Net change in fund balances 17,618 (361,671) Fund Balances Beginning of year - 8,142,276 End of year$ 17,618$ 7,780,605 179 Council Packet Page Number 248 of 380 F3, Attachment 4 180 Council Packet Page Number 249 of 380 F3, Attachment 4 STATISTICAL SECTION 181 Council Packet Page Number 250 of 380 F3, Attachment 4 182 Council Packet Page Number 251 of 380 F3, Attachment 4 STATISTICAL SECTION (UNAUDITED) This part of the City of Maplewood, Minnesota's Annual Comprehensive Financial Report presents details information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City of Maplewood, Minnesota's overall financial health. Contents Pages Financial Trends 184 These tables contain trend information to help the reader understand how the City's financial performance and well-being have changed over time. Revenue Capacity 194 These tables present information to help the reader assess the City's most significant local revenue source, the property tax. Debt Capacity 198 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. Demographic and Economic Information 205 These tables offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place. Operation Information 208 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 activities in preforms. Sources: Unless otherwise noted, the information in these tables in derived from the comprehensive financial reports for the relevant year. 183 Council Packet Page Number 252 of 380 F3, Attachment 4 184 Council Packet Page Number 253 of 380 F3, Attachment 4 185 Council Packet Page Number 254 of 380 F3, Attachment 4 City of Maplewood, Minnesota Changes in Net Position Last Ten Fiscal Years (Accrual Basis of Accounting) Fiscal Year Expenses 2014201520162017 Governmental activities General government$ 2,216,431$ 2,476,916$ 2,787,584$ 3,696,095 Public safety 10,380,553 10,838,819 14,389,434 12,444,730 Public works 16,216,181 5,962,367 3,672,745 6,325,400 Parks and recreation 1,641,752 1,479,241 2,007,174 2,281,269 Recreation programs - - - - Community development - - - - Citizen services 1,171,431 1,289,895 1,597,922 1,096,973 Environmental & economic development 1,263,695 6,268,576 3,781,490 1,039,583 Interest and fiscal charges 2,798,638 2,558,937 1,613,231 1,865,179 Total governmental activities expenses35,688,68130,874,75129,849,58028,749,229 Business-type activities Ambulance service 2,425,360 2,573,218 2,550,560 2,486,837 Community center 2,567,293 2,549,454 2,080,570 196,618 Environmental utility 1,993,197 1,969,010 1,864,754 1,765,436 Recycling program 631,456 652,324 739,817 661,133 Sewer 4,275,888 4,489,336 4,640,308 4,470,104 Street light utility 224,197 205,881 337,746 224,334 Total business-type activities expenses 12,117,391 12,439,223 12,213,755 9,804,462 Total primary government expenses$ 47,806,072$ 43,313,974$ 42,063,335$ 38,553,691 Program revenues Governmental activities Charges for services General government$ 165,136$ 150,918$ 140,661$ 234,964 Public safety 638,449 656,632 604,913 581,474 Public works 2,633,305 2,361,759 3,033,816 1,804,608 Parks and recreation 469,708 498,563 490,245 367,067 Recreation programs - - - - Community development - - - - Citizen services 674,687 741,839 1,570,086 1,655,854 Environmental & economic development 2,963,129 1,727,939 1,604,304 2,158,563 Operating grants and contributions 829,858 1,514,593 1,341,166 1,149,787 Capital grants and contributions 8,024,056 7,152,580 4,715,259 4,348,448 Total governmental activities program revenues 16,398,32814,804,82313,500,45012,300,765 Business-type activities Charges for services Ambulance service2,456,8232,572,825 2,545,412 3,026,132 Community center1,860,4171,844,842 1,446,054 5,398 Environmental utility2,447,6692,521,597 2,606,625 2,831,795 Recycling program549,248 566,002 609,852 613,826 Sewer5,206,2755,029,707 4,924,559 5,020,996 Street light utility476,269 477,280 496,562 517,643 Operating grants and contributions238,297 287,307 245,679 238,069 Capital grants and contributions - - - 88,633 Total business-type activities program revenues13,234,99813,299,560 12,874,743 12,342,492 186 Council Packet Page Number 255 of 380 F3, Attachment 4 Table 2 Fiscal Year 201820192020202120222023 $ 5,245,458$ 7,767,984$ 4,614,903$ 4,637,368$ 5,465,774$ 4,884,643 11,391,362 12,233,054 13,345,320 11,317,367 15,202,237 16,776,044 8,592,649 7,256,983 9,509,158 12,956,558 9,852,407 12,676,771 2,198,359 2,162,684 1,565,865 1,172,390 1,560,453 1,360,223 - - - - - - 1,688,293 1,504,666 3,704,072 3,002,677 3,578,402 3,232,966 - - - - - - - - - - - - 1,790,963 1,599,878 920,472 983,889 1,170,514 1,123,604 30,907,08432,525,249 33,659,790 34,070,249 36,829,787 40,054,251 2,674,876 3,099,247 3,317,440 3,404,091 3,721,153 4,220,262 - - - - - - 1,526,303 1,792,145 1,779,350 1,954,477 1,991,448 2,061,382 660,454 694,261 979,141 1,032,626 1,050,352 1,210,251 4,537,601 4,882,550 4,987,568 4,975,531 5,683,267 5,970,126 212,664 181,010 210,282 199,500 254,160 240,454 9,611,898 10,649,213 11,273,781 11,566,225 12,700,380 13,702,475 $ 40,518,982$ 43,174,462$ 44,933,571$ 45,636,474$ 49,530,167$ 53,756,726 $ 1,916,415$ 1,910,171$ 593,928$ 681,309$ 675,619$ 553,136 1,374,074 597,172 687,836 882,343 909,166 603,869 1,363,278 3,263,348 525,549 533,087 3,377,998 1,517,306 415,938 402,684 113,999 82,264 110,535 110,613 - - - - - - 1,612,771 1,625,473 2,243,114 1,867,561 2,355,185 2,281,004 - - - - - - - - - - - - 1,460,949 1,594,674 4,305,911 5,860,104 1,318,151 2,561,164 3,685,861 5,289,455 6,820,354 5,020,564 5,414,207 3,474,832 11,829,28614,682,977 15,290,691 14,927,232 14,160,861 11,101,924 3,140,966 3,583,950 2,956,113 2,448,358 2,718,017 2,731,101 - - - - - - 2,993,926 3,109,407 3,116,993 3,125,044 3,135,632 3,277,485 651,788 708,235 953,091 1,179,153 1,204,437 1,294,687 5,069,584 5,198,428 5,243,659 5,550,967 6,346,363 6,694,133 507,812 446,107 445,405 448,473 448,741 446,380 380,197 121,499 388,020 373,007 281,223 942,593 1,375,527 383,362 1,864,436 2,720,312 674,833 1,305,117 14,119,800 13,550,988 14,967,717 15,845,314 14,809,246 16,691,496 187 Council Packet Page Number 256 of 380 F3, Attachment 4 City of Maplewood, Minnesota Changes in Net Position Last Ten Fiscal Years (Accrual Basis of Accounting) Fiscal Year 2014201520162017 Net (expense) revenue Governmental activities$ (19,290,353)$ (16,069,928)$ (16,349,130)$ (16,448,464) Business-type activities 1,117,607 860,337 660,988 2,538,030 Total primary government net (expense) revenue (18,172,746) (15,209,591) (15,688,142) (13,910,434) General revenues and other changes in net position Governmental activities General property taxes 17,165,842 17,986,130 18,756,112 19,717,481 Miscellaneous taxes - - - - Tax increment collections 964,327 876,656 1,455,687 1,598,300 Unrestricted grants and contributions 536,167 632,576 692,501 737,219 Investment earnings 81,451 110,747 98,467 211,797 Miscellaneous 5,078 - - - Gain (loss) on disposal of capital assets - - - - Transfers (1,666,318) 1,182,518 880,930 542,301 Special Items - - - - Total governmental activities 17,086,547 20,788,62721,883,69722,807,098 Business-type activities Property taxes 958,516 824,147 799,409 788,751 Unrestricted grants and contributions - - - - Investment earnings 8,668 22,836 40,378 37,862 Miscellaneous - - - - Gain (loss) on disposal of capital assets - - - - Transfers 1,666,318 (1,182,518) (880,930) (542,301) Total business-type activities 2,633,502 (334,011) (41,143) 284,312 Total primary government$ 19,720,049$ 20,454,616$ 21,842,554$ 23,091,410 Change in net position Governmental activities$ (2,203,806)$ 4,718,699$ 5,534,567$ 6,358,634 Business-type activities 3,751,109 526,326 619,845 2,822,342 Total primary government$ 1,547,303$ 5,245,025$ 6,154,412$ 9,180,976 188 Council Packet Page Number 257 of 380 F3, Attachment 4 Table 2 Continued Fiscal Year 201820192020202120222023 $ (19,077,798)$ (17,842,272)$ (18,369,099)$ (19,143,017)$ (22,668,926)$ (28,952,327) 4,507,902 2,901,775 3,693,936 4,279,089 2,108,866 2,989,021 (14,569,896) (14,940,497) (14,675,163) (14,863,928) (20,560,060) (25,963,306) 20,545,229 21,887,327 23,063,064 22,829,246 24,257,221 25,751,465 - 1,850,359- 1,876,585 1,862,843 1,820,760 1,783,732 1,798,193 1,967,850 1,919,195 2,030,992 2,001,506 977,656 990,930 1,273,111 1,365,277 1,655,117 1,383,797 415,772 983,360 751,462 (121,291) (1,330,806) 2,056,610 - - - 84,030 155,282 51,224 27,099 - 131,428 1,583,274- - 2,790,983 3,281,019 4,032,047 1,061,821 3,712,755 2,174,132 (1,809,088)- - - - - 26,540,47127,131,74133,069,32129,014,863 33,926,678 35,239,494 288,755 10,897 - 306 199 145 - - - - - - 109,674 263,662 116,935 (7,771) (230,327) 369,237 - - - 3,829 1,987 - - - 10,000 8,483 2,500 - (2,790,983) (3,281,019) (4,032,047) (1,061,821) (3,712,755) (2,174,132) (2,392,554) (3,006,460) (3,905,112) (1,056,974) (3,938,396) (1,804,750) $ 24,147,917$ 24,125,281$ 29,164,209$ 27,957,889$ 29,988,282$ 33,434,744 $ 7,462,673$ 9,289,469$ 14,700,222$ 9,871,846$ 11,257,752$ 6,287,167 2,115,348 (104,685) (211,176) 3,222,115 (1,829,530) 1,184,271 $ 9,578,021$ 9,184,784$ 14,489,046$ 13,093,961$ 9,428,222$ 7,471,438 189 Council Packet Page Number 258 of 380 F3, Attachment 4 190 Council Packet Page Number 259 of 380 F3, Attachment 4 191 Council Packet Page Number 260 of 380 F3, Attachment 4 City of Maplewood, Minnesota Changes in Fund Balances - Governmental Funds Last Ten Fiscal Years Fiscal Year 2014201520162017 Revenues General property taxes$ 17,275,364$ 17,949,228$ 18,761,397$ 19,711,663 Tax increment collections 1,264,327 876,656 1,455,687 1,598,300 Miscellaneous taxes - - 1,332,887 1,412,757 Special assessments 2,932,609 2,393,168 2,848,898 2,603,358 Licenses and permits 2,275,634 1,366,702 1,445,812 1,808,463 Intergovernmental 7,312,565 8,607,607 5,347,424 4,213,838 Charges for services 4,854,962 4,113,823 4,253,229 2,963,286 Fines and forfeits 297,444 239,430 199,872 210,218 Investment earnings 69,903 91,356 67,509 195,037 Miscellaneous 301,384 614,148 301,486 373,966 Total revenues 36,584,192 36,252,118 36,014,201 35,090,886 Expenditures Current General government 1,780,621 2,051,546 2,061,127 2,281,406 Public safety 9,967,363 10,162,774 10,354,728 10,917,454 Public works 3,841,444 3,574,148 3,730,286 3,751,303 Parks and recreation 1,317,243 1,328,339 1,419,805 1,588,382 Recreation programs - - - - Citizen services 1,169,665 1,202,870 1,451,480 1,726,419 Environmental & economic development 1,254,968 1,113,658 1,135,791 1,337,244 Community development - - - - Miscellaneous 77,015 71,612 78,748 - Capital outlay 18,446,159 12,725,904 3,880,696 4,430,577 Debt service Principal 9,674,672 23,855,537 11,186,101 10,261,702 Interest 2,789,308 2,810,928 2,170,212 2,248,924 TIF developer payments 248,456 84,516 82,876 115,276 Other 178,290 197,294 161,366 - Total expenditures 50,745,204 59,179,126 37,713,216 38,658,687 Revenues over (under) expenditures(14,161,012)(22,927,008)(1,699,015)(3,567,801) Other financing sources (uses) Transfers in 6,788,976 18,970,264 10,037,437 6,936,790 Transfers out (5,351,412) (16,757,403) (9,043,044) (6,394,489) Issuance of bonds 7,745,000 1,215,000 3,765,000 3,850,000 Issuance of refunding bonds 1,255,000 11,780,000 5,775,000 3,145,000 Payment to refunded bond escrow agent - - - - Premium (discount) on bonds issued 369,279 324,377 619,378 298,464 Proceeds from leases - - - 615,000 Proceeds from finance purchase - - - - Sale of capital assets 10,908 1,801,877 65,679 121,869 Total other financing sources (uses) 10,817,751 17,334,115 11,219,450 8,572,634 Net change in fund balance$ (3,343,261)$ (5,592,893)$ 9,520,435$ 5,004,833 Debt service as a percentage of noncapital expenditures34.3%62.6%140.2%40.5% Debt service as percentage of total expenditures24.6%45.1%35.4%32.4% 192 Council Packet Page Number 261 of 380 F3, Attachment 4 Table 4 Fiscal Year 201820192020202120222023 $ 20,464,816$ 21,869,106$ 23,003,169$ 22,867,244$ 24,196,251$ 25,657,780 1,783,732 1,798,193 1,967,850 1,919,195 2,030,992 2,001,506 1,340,277 1,925,320 1,850,359 1,876,585 1,862,843 1,820,760 2,404,276 2,235,687 2,501,586 2,370,346 2,456,390 1,874,367 1,424,391 1,456,694 1,933,984 1,955,926 5,987,148 2,348,615 4,098,579 5,972,768 7,573,989 9,262,140 2,119,739 5,063,154 2,177,370 2,119,956 1,827,086 1,662,310 1,963,502 1,352,747 178,651 171,169 156,926 155,362 176,292 170,281 368,959 871,023 697,000 (106,853) (1,238,957) 1,915,879 1,496,051 2,066,394 2,005,841 1,231,308 2,915,000 1,216,521 35,737,102 40,486,310 43,517,790 43,193,563 42,469,200 43,421,610 4,110,980 3,778,021 3,990,484 4,049,218 4,277,085 4,112,120 11,367,167 11,646,708 12,672,047 12,514,710 13,130,100 14,117,771 3,922,439 4,228,135 4,323,404 4,549,098 4,786,695 4,842,572 1,334,112 1,242,347 814,152 642,063 533,566 546,582 - - - - - - - - - - - - - - - - - - 1,900,829 1,500,951 2,384,464 1,679,442 2,075,084 1,844,367 - - - - - - 9,378,460 13,331,018 13,257,484 10,891,857 19,842,882 10,742,347 12,956,279 8,530,204 6,749,899 6,255,352 6,514,097 6,517,144 1,978,648 1,857,978 1,810,195 1,815,516 1,741,454 1,536,403 367,298 3,245,988 1,351,343 1,390,044 1,416,606 1,365,553 - - - - - - 47,316,212 49,361,350 47,353,472 43,787,300 54,317,569 45,624,859 (11,579,110)(8,875,040)(3,835,682)(593,737)(11,848,369)(2,203,249) 11,928,497 10,778,125 18,734,095 18,549,199 18,410,430 9,697,891 (9,137,514) (7,497,106) (14,702,048) (17,502,765) (15,347,675) (7,978,759) 6,940,000 4,475,000 6,202,225 9,500,000 2,925,000 1,945,000 - - 5,477,775 2,140,000 - - - - - - (8,655,000) - 211,601 204,444 623,447 1,195,030 117,739 178,500 - 720,000 - - 67,689 - - - - - - 557,061 72,290 55,611 41,113 38,994 1,801,671 699,051 10,014,874 8,736,074 16,376,607 13,920,458 (680,146) 5,098,744 $ (1,564,236)$ (138,966)$ 12,540,925$ 13,326,721$ (12,528,515)$ 2,895,495 35.2%24.5%24.8%24.2%16.8%19.9% 31.6%21.0%18.1%18.4%15.2%17.7% 193 Council Packet Page Number 262 of 380 F3, Attachment 4 194 Council Packet Page Number 263 of 380 F3, Attachment 4 195 Council Packet Page Number 264 of 380 F3, Attachment 4 196 Council Packet Page Number 265 of 380 F3, Attachment 4 197 Council Packet Page Number 266 of 380 F3, Attachment 4 198 Council Packet Page Number 267 of 380 F3, Attachment 4 Table 9 Government and Business-Type Activities TotalPercentageTotal NotesFinanceGovernmentalof TaxPrimaryPer PayableLeasesPurchasesActivitiesCapacityGovernmentCapita $ 467,842$ -$ 82,822,325-$ 212.17%82,822,325$ $ 2,109 368,606 - 72,177,145- 171.46%72,177,145 1,816 - - 70,563,458- 166.37%70,563,458 1,753 - 860,387- 68,327,548152.79%68,327,548 1,705 - 682,566- 62,230,666130.99%62,230,666 1,529 - 1,221,080- 58,800,028116.59%58,800,028 1,409 - 939,803- 63,411,825119.66%63,411,825 1,507 - 707,279- 69,067,042123.61%69,067,042 1,641 - 69,368 517,052 54,774,50797.54%54,774,507 1,300 - 48,944 745,482 50,759,42680.28%50,759,426 1,270 199 Council Packet Page Number 268 of 380 F3, Attachment 4 200 Council Packet Page Number 269 of 380 F3, Attachment 4 201 Council Packet Page Number 270 of 380 F3, Attachment 4 City of Maplewood, Minnesota Legal Debt Margin Information Last Ten Fiscal Years Legal Debt Margin Calculation for Fiscal Year 2023 Estimated market value of taxable property$ 5,359,052,400 Debt limit (3% of market value)160,771,572 Less amount of debt applicable to debt limit(14,360,000) Legal debt margin$ 146,411,572 2014201520162017 Debt limit$ 88,022,253$ 97,272,366$ 98,905,329$ 110,644,980 Total net debt applicable to limit9,635,0009,970,00011,180,00010,415,000 Legal debt margin$ 78,387,253$ 87,302,366$ 87,725,329$ 100,229,980 Total net debt applicable to the limit as a percentage of debt limit12.29%11.42%12.74%10.39% Source: Ramsey County and 2023A Official Statement 202 Council Packet Page Number 271 of 380 F3, Attachment 4 Table 12 201820192020202120222023 $ 117,193,629$ 124,514,316$ 131,760,690$ 139,276,053$ 141,307,917$ 160,771,572 9,705,0008,410,0006,300,00015,895,00015,085,00014,360,000 $ 107,488,629$ 116,104,316$ 125,460,690$ 123,381,053$ 126,222,917$ 146,411,572 9.03%7.24%5.02%12.88%11.95%9.81% 203 Council Packet Page Number 272 of 380 F3, Attachment 4 204 Council Packet Page Number 273 of 380 F3, Attachment 4 205 Council Packet Page Number 274 of 380 F3, Attachment 4 206 Council Packet Page Number 275 of 380 F3, Attachment 4 207 Council Packet Page Number 276 of 380 F3, Attachment 4 208 Council Packet Page Number 277 of 380 F3, Attachment 4 209 Council Packet Page Number 278 of 380 F3, Attachment 4 City of Maplewood, Minnesota Operating Indicators by Function/Program Last Ten Fiscal Years Fiscal Year Function/Program2014201520162017 Police Physical arrests2,6421,076919630 Parking violations6031,393887682 Traffic violations5,3962,3951,9201,207 Felony offenses2,462675577666 Gross misdemeanor offenses1,814210427417 Minor miscellaneous offenses - 2,8215,0654,520 Fire Emergency responses4,8585,0775,3515,940 Fires extinguished69969891 Inspections669777650666 Building inspection Residential permits2,3532,2122,3522,448 New residential permitsn/an/an/an/a Commercial permits764663632776 New commercial permitsn/an/an/an/a Other permitsn/an/an/an/a Total permits3,1172,8752,9843,224 Other public works Street resurfacing/reconstruction (miles)2.20.83.13.4 Potholes repaired (tons of material used)5606031,4601,875 Spot paving (tons of materials used)n/an/an/an/a Parks and recreation Number of games (field rentals)208214211644 Community center admissions256,442240,648235,023n/a Water: (Maintained by St. Paul Regional Water Services) New connectionsn/an/an/an/a Water mains breaksn/an/an/an/a Average daily consumption (thousands of gallons)n/an/an/an/a Peak daily consumption (thousands of gallons)n/an/an/an/a Wastewater: (Maintained by Met Council Environmental Services) Average daily sewage treatment (thousands of gallons)n/an/an/an/a Sources: Various City departments. Note: Indicators are not available for the general government function N/A: Information not available. 210 Council Packet Page Number 279 of 380 F3, Attachment 4 Table 17 Fiscal Year 201820192020202120222023 904822553446598850 868568260329300396 1,1961,512607192410896 n/an/an/an/an/an/a n/an/an/an/an/an/a n/an/an/an/an/an/a 6,0326,1836,5037,3387,5707,972 101101109150129140 430500n/an/a292n/a n/an/an/an/a4,4793,606 9713874 n/an/an/an/a247312 334945 3,2342,8813,0861,4342,1681,163 3,2462,8913,1031,4516,9055,090 4.05.65.85.44.23.3 1,4022,4228126401,454525 n/an/a1,4651,8803961,578 669651n/an/an/an/a n/an/an/an/an/an/a n/an/an/an/an/an/a n/an/an/an/an/an/a n/an/an/an/an/an/a n/an/an/an/an/an/a n/an/an/an/an/an/a 211 Council Packet Page Number 280 of 380 F3, Attachment 4 212 Council Packet Page Number 281 of 380 F3, Attachment 4 213 Council Packet Page Number 282 of 380 F3, Attachment 4 214 Council Packet Page Number 283 of 380 F3, Attachment 4 215 Council Packet Page Number 284 of 380 G1 Council Packet Page Number 285 of 380 G1, Attachments Council Packet Page Number 286 of 380 G1, Attachments Council Packet Page Number 287 of 380 G1, Attachments Council Packet Page Number 288 of 380 G1, Attachments Council Packet Page Number 289 of 380 G1, Attachments Council Packet Page Number 290 of 380 G1, Attachments Council Packet Page Number 291 of 380 G1, Attachments Council Packet Page Number 292 of 380 G1, Attachments Council Packet Page Number 293 of 380 G1, Attachments Council Packet Page Number 294 of 380 G1, Attachments Council Packet Page Number 295 of 380 G1, Attachments Council Packet Page Number 296 of 380 G1, Attachments Council Packet Page Number 297 of 380 G1, Attachments Council Packet Page Number 298 of 380 G2 CITY COUNCIL STAFF REPORT Meeting Date July 22, 2024 REPORT TO: Michael Sable, City Manager REPORT FROM: Andrea Sindt, City Clerk PRESENTER:Andrea Sindt, City Clerk AGENDA ITEM: Call forSpecial Meeting to Canvass 2024 Primary Election Results Action Requested: MotionDiscussion Public Hearing Form of Action: Resolution Ordinance Contract/Agreement Proclamation Policy Issue: The city council as the canvassing board shall canvass the results of the August 13, 2024 Primary Election. The canvassing must be conducted between scheduled council meetings. Thus, the council is required to call for a special meeting for the purpose of canvassing the election results as city council positions were included on the Primary ballot for Maplewood. Recommended Action: Motion to call a special meeting of the city council for Friday, August 16, 2024 at 4:00 p.m. in the council chambers for the purpose of canvassing the August 13, 2024 Primary Election results. Fiscal Impact: Is There a Fiscal Impact? No Yes, the true or estimated cost is $0.00 Financing source(s): Adopted Budget Budget Modification New Revenue Source Use of Reserves Other: n/a Strategic Plan Relevance: Financial SustainabilityIntegrated CommunicationTargeted Redevelopment Operational EffectivenessCommunity InclusivenessInfrastructure & Asset Mgmt. State Statute 205.065 subd. 5 requires that the canvassing board convene on the second or third day after the primary to canvass the election results. Background The governing body of a city conducting any election shall act as the canvassing board, canvass the returns, and declare the results of an election. The two candidates for each office who receive the highest number of votes, or a number of candidates equal to twice the number of individuals to be elected to the office, who receive the highest number of votes, shall be the nominees for the office named. At the special meeting, the four candidates receiving the most votes for the two at- large councilmember offices shall be certified to the City Clerk by resolution to be placed on the November 5, 2024 State General Election ballot without partisan designation. Attachments None Council Packet Page Number 299 of 380 G3 CITY COUNCILSTAFF REPORT Meeting Date July 22, 2024 REPORT TO: Michael Sable, City Manager REPORT FROM: Brian Bierdeman, Public Safety Director PRESENTER:Brian Bierdeman, Public Safety Director AGENDA ITEM: Public Safety Aid Funds Transfer Action Requested: MotionDiscussion Public Hearing Form of Action:ResolutionOrdinanceContract/AgreementProclamation Policy Issue: City Council approval is requested to transfer Public Safety Aid. Recommended Action: Motion to approve a transfer of $72,317.67 of Public Safety Aid funds from the General Fund to the Public Safety CIP Fund (406) to cover the purchase of the Fotokite Camera. Fiscal Impact: Is There a Fiscal Impact? No Yes, the true or estimated cost is $72,317.67 Financing source(s): Adopted Budget Budget Modification New Revenue Source Use of Reserves Other: N/A Strategic Plan Relevance: Community InclusivenessFinancial & Asset MgmtEnvironmental Stewardship Integrated Communication Operational EffectivenessTargeted Redevelopment City Council approval is requested transfer Public Safety Aid. Background: The police department is in the process of building a command vehicle which was previously approved by the council. As part of the command vehicle, a tethered drone is being placed on the vehicle for command and observation purposes. The command vehicle is within budget. The police department is requesting that $72,317.67 be moved from the General Fund Public Safety Aid to the Public Safety CIP fund (406-000-000-4610). Attachments: N/A. Council Packet Page Number 300 of 380 G4 CITY COUNCILSTAFF REPORT Meeting Date July 22, 2024 REPORT TO:Michael Sable, City Manager REPORT FROM: Michael Martin, AICP, Assistant Community Development Director PRESENTER:Danette Parr, Community Development Director AGENDA ITEM: Resolution Supporting Application for a Minnesota Department of Employment and Economic Development (DEED) Contamination Cleanup Grant, 1375 Frost Avenue East Action Requested: MotionDiscussion Public Hearing Form of Action: Resolution OrdinanceContract/Agreement Proclamation Policy Issue: Beacon Interfaith Housing Collaborative is seeking City Council approval of a resolution supporting an application to the State of Minnesota’s Department of Employment and Economic Development (DEED) for a grant associated with developing the property located at 1375 Frost Avenue East. On July 10, 2023, the City Council approved Beacon’s three-story, 40-unit multifamily apartment building. Recommended Action: Motion to approve the resolution of support for a grant application to the Minnesota Department of Employment and Economic Development’s Contamination Cleanup fund. Fiscal Impact: Is There a Fiscal Impact? No Yes, the true or estimated cost is $0 Financing source(s): Adopted Budget Budget Modification New Revenue Source Use of Reserves Other: No city funds are being requested or are required as part of the grant applications. Strategic Plan Relevance: Community InclusivenessFinancial & Asset MgmtEnvironmental Stewardship Integrated Communication Operational EffectivenessTargeted Redevelopment The city supports partnering with developers to secure funding from other agencies to bring funds into Maplewood to foster quality development. Background: To proceed with the redevelopment of the former Gladstone House at 1375 Frost Avenue East, the developer is seeking available grant funding for environmental cleanup and oversight costs. The city is not being asked for, nor is it required, to match any dollars as part of this grant request. Council Packet Page Number 301 of 380 G4 The developer is seeking a resolution of support from the Maplewood City Council to applyto the DEED Contamination Cleanup fund for demolition, stormwater infrastructure, public improvements, and soil corrections related to the project. Attached to this memo is a resolution that must be executed and submitted as part of the grant application. Attachments: 1.Overview Map 2.Letter from Developer 3.Resolution supporting an application to the Minnesota Department of Employment and Economic Development Contamination Cleanup fund Council Packet Page Number 302 of 380 Council Packet Page Number 303 of 380 Council Packet Page Number 304 of 380 G4, Attachment 3 RESOLUTION NO.____________ CITY OF MAPLEWOOD, MINNESOTA RESOLUTION IDENTIFYING THE NEED FOR MINNESOTA’S DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT’S CONTAMINATION CLEANUP FUNDING AND AUTHORIZING APPLICATION FOR GRANT FUNDS FOR BEACON’S PROJECT AT 1375 FROST AVENUE EAST BE IT RESOLVED that the city of Maplewood has approved the Contamination Cleanup grant application submitted to the Department of Employment and Economic Development (DEED) no later than August 1, 2024, by the City of Maplewood for the 1375 Frost Avenue East site. BE IT FURTHER RESOLVED that the city of Maplewood is located within the seven-county metropolitan area defined in section 473.121, subdivision 2, and is participating in the local housing incentives program under section 473.254. BE IT FURTHER RESOLVED that the City of Maplewood act as the legal sponsor for the project contained in the Contamination Cleanup Grant Program to be submitted no later than August 1, 2024, and that the Assistant Community Development Director is hereby authorized to apply to the Department of Employment and Economic Development for funding of this project. BE IT FURTHER RESOLVED that the City of Maplewood has the legal authority to apply for financial assistance, and the institutional, managerial, and financial capability to ensure adequate project administration. BE IT FURTHER RESOLVED that the sources and amounts of the local match identified in the application are committed to the project identified. BE IT FURTHER RESOLVED that the City of Maplewood has not violated any Federal, State or local laws pertaining to fraud, bribery, graft, kickbacks, collusion, conflict of interest or other unlawful or corrupt practice. BE IT FURTHER RESOLVED that upon approval of its application by the state the City of Maplewood may enter into an agreement with the State of Minnesota for the above-referenced project, and that the City of Maplewood certifies that it will comply with all applicable laws and regulation as stated in all contract agreements. NOW, THEREFORE BE IT FINALLY RESOLVED that the Mayor and the Clerk are hereby authorized to execute such agreements as are necessary to implement the project on behalf of the applicant. I CERTIFY THAT the above resolution was adopted by the City Council of Maplewood on July 22, 2024. SIGNED: (Authorized Official) WITNESSED: ________________________________ ________________________ Mayor City Clerk Council Packet Page Number 305 of 380 G5 CITY COUNCIL STAFF REPORT Meeting Date July 22, 2024 REPORT TO: Michael Sable, City Manager REPORT FROM: Michael Mondor, Fire and EMS Chief PRESENTER:Michael Mondor, Fire and EMS Chief AGENDA ITEM: Memorandum of Agreement with Minnesota North College for Clinical Internships with the City of Maplewood Action Requested:MotionDiscussionPublic Hearing Form of Action: Resolution OrdinanceContract/Agreement Proclamation Policy Issue: The Fire Department would like to partner with the Minnesota North College as a clinical internship for students preparing for and/or engaging in emergency medical services careers. Recommended Action: Motion to approve the Memorandum of Agreement between Minnesota North College and the City of Maplewood. Fiscal Impact: Is There a Fiscal Impact? No Yes, the true or estimated cost is $0 Financing source(s): Adopted Budget Budget Modification New Revenue Source Use of Reserves Other: n/a Strategic Plan Relevance: Community InclusivenessFinancial & Asset MgmtEnvironmental Stewardship Integrated Communication Operational EffectivenessTargeted Redevelopment Hosting emergency medical services students assists the Department in identifying potential employees while partnering with a local community college to improve pre-hospital care. Background: The Fire Department participates as a clinical internship site for students for several community colleges. The Minnesota North College has a desire to utilize the City of Maplewood as a clinical internship site. This partnership allows Minnesota North College to place emergency medical services students with Maplewood Fire/EMS preceptors, which allows students to obtain necessary experiences to successfully enter the career field. Council Packet Page Number 306 of 380 G5 Several of the Department's current employees were hired after completing field internships similar to the agreement being proposed. Attachments: 1. Memorandum of Agreement with Minnesota North College for Clinical Internships with the City of Maplewood Council Packet Page Number 307 of 380 G5, Attachment 1 Contract Number: MNC-2024-042712 STATE OF MINNESOTA MINNESOTA STATE COLLEGES AND UNIVERSITIES MEMORANDUM OF AGREEMENT BETWEEN MINNESOTA NORTH COLLEGE AND MAPLEWOOD CITY OF This Agreement is entered into between the Board of Trustees of the Minnesota State Colleges and th Universities, on behalf of Minnesota North College, 1515 East 25 Street, Hibbing, Minnesota 55746 (hereinafter "the College/University") and MAPLEWOOD CITY OF, located at 1830 E COUNTY RD B, MAPLEWOOD, Minnesota 55109, (hereinafter "the Facility"). The Agreement, and any amendments and supplements thereto, shall be interpreted pursuant to the Laws of the State of Minnesota. WITNESSETH THAT: WHEREAS, the College/University has established an AcuteCare Paramedic Program, Paramedicine Program, Emergency Medical Services-Paramedic Programs and/or Emergency Medical Technician Program for qualified students preparing for and/or engaging in emergency medical services careers; and WHEREAS, the Board of Trustees of the Minnesota State Colleges and Universities is authorized by Minnesota Statutes, Chapter 136F to enter into Agreements regarding academic programs and has delegated this authority to the College/University; and WHEREAS, the Facility has suitable clinical facilities in emergency medical services for the educational needs of the emergency medical services program(s) of the College/University; and WHEREAS, it is in the general interest of the Facility to assist in educating persons to be qualified or better qualified emergency medical services personnel; and WHEREAS, the College/University and the Facility are desirous of cooperating to furnish a clinical experience program for students of emergency medical services programs enrolled in the College/University. NOW, THEREFORE, It Is Mutually Agreed By And Between The Parties: 1.COLLEGE RESPONSIBILITIES a.The College/University, which is accredited by the North Central Association of Colleges and Secondary Schools, is responsible for offering one or more of the following programs: an AcuteCare Paramedic Program, Emergency Medical Services-Paramedic Programs, Paramedicine Program, and/or an Emergency Medical Technician Program. Each program is approved by the Minnesota Minnesota State Paramedic/Emergency Medical Memorandum of Agreement Template OGC Revised 12.2014 / 06.2018. Liability changes approved by Risk Mgmt 6.17.2024 Page 1 of 9 Council Packet Page Number 308 of 380 G5, Attachment 1 Department of Health and/or the Emergency Medical Services Regulatory Board (EMSRB) and/or accredited by the North Central Association of Colleges and Secondary Schools. b.The College/University will supervise its students during the clinical experience program at the Facility through preceptors assigned by the College/University. The College/University will provide its emergency medical services faculty to effectively implement the clinical experience program at the Facility. The College/University faculty so assigned will hold current paramedic or emergency medical technician certification valid in the State of Minnesota. c.The College/University faculty will be responsible for scheduling student clinical experience program hours, reviewing student evaluations written by preceptors, and grading each student. The College/University faculty will attend the Facility's orientation for clinical experience instructors as deemed necessary by the College/University and the Facility. d.The College/University will provide the Facility, at its request, with objectives for the clinical experience program. Implementation of those objectives will be accomplished by the College/University in cooperation with the Facility's designated representative. e.The College/University will provide the Facility with a list of the students who are participating in the clinical experience program, the units within the Facility where they are assigned, and the dates of each student's participation in the program. f.The College/University will inform its faculty and students of the Facility's policies and regulations which relate to the clinical experience program at the Facility. g.The College/University will inform its faculty and the students who are participating in the clinical experience program that they are encouraged to carry their own health insurance and are responsible for carrying their own professional liability insurance if professional liability insurance is not provided by the College/University. h.The College/University will maintain a record of students' health examinations and current immunizations and shall obtain student permission to submit data regarding their health status to the Facility. i.The College/University agrees and represents that it will require all students and faculty have completed a background study conducted in accordance with Minnesota Statues Chapter 245C, Human Services Background Studies, as a pre-condition to participation in the clinical experience. College/University will not assign a student or faculty member to the Facility if his/her background study documents ineligibility to have direct contact with Facility's patients or residents under applicable law or regulations. If requested, College/University shall provide the Facility with documentation regarding the completion or results of the background study pursuant to the written consent of the subject. 2.FACILITY RESPONSIBILITIES a.The Facility will have current licensure by the Minnesota EMS Regulatory Board. Minnesota State Paramedic/Emergency Medical Memorandum of Agreement Template OGC Revised 12.2014 / 06.2018. Liability changes approved by Risk Mgmt 6.17.2024 Page 2 of 9 Council Packet Page Number 309 of 380 G5, Attachment 1 b. The Facility is responsible for the safety and quality of care provided to its patients by the students who are participating in the clinical experience program at the Facility. In order to effectively fulfill that duty, it is agreed that Facility has ultimate control over all persons involved in the program and may immediately terminate the participation in the program of any of the students enrolled in the program where an emergency exists involving health and safety; and in all other (non-emergency) instances, Facility shall consult with the College/University before taking any action to terminate the participation of a student. c. The Facility will provide the College/University with a copy of its policies and regulations which relate to the clinical experience program. d. The Facility will permit the College/University faculty and students to use its patient care and patient service facilities for clinical instruction according to a mutually-approved plan. e. The Facility will allow a reasonable amount of Facility staff time for orientation and joint conferences with College/University faculty, for planning with College/University faculty, and for such other assistance as shall be mutually agreeable. f. When available, physical space such as offices, conference rooms, and classrooms of the Facility may, upon request, be used by the College/University faculty and students who are participating in the clinical experience program. g. The College/University faculty and students participating in the clinical experience program will be permitted to use Facility's library in accordance with the Facility's policies. h. When available, the Facility will, upon request of the College/University, make lockers, cloak rooms, or similar spaces available for College/University faculty and students during assigned clinical experience program hours. The Facility may require College/University faculty and students to share such spaces. i. The Facility assumes no responsibility for the cost of meals, uniforms, housing, parking or health care of College/University faculty and students who are participating in the clinical experience program. The Facility will permit College/University faculty and students who are participating in the clinical experience program to use any cafeteria on the same basis as employees of the Facility. The Facility will permit College/University faculty to use Facility parking spaces under the same policies governing Facility personnel. j. The Facility recognizes that it is the policy of the College/University to prohibit discrimination and ensure equal opportunities in its educational programs, activities, and all aspects of employment for all individuals, regardless of race, color, creed, religion, gender, national origin, sexual orientation, veteran's status, marital status, age, disability, status with regard to public assistance, or inclusion in any group or class against which discrimination is prohibited by federal, state, or local laws and regulations. The Facility agrees to adhere to this policy in implementing this Agreement. Minnesota State Paramedic/Emergency Medical Memorandum of Agreement Template OGC Revised 12.2014 / 06.2018. Liability changes approved by Risk Mgmt 6.17.2024 Page 3 of 9 Council Packet Page Number 310 of 380 G5, Attachment 1 3. MUTUAL RESPONSIBILITIES a. The College/University and the Facility assume joint responsibility for the orientation of the College/University faculty to Facility policies and regulations before the College/University assigns its faculty to the Facility. b. Personnel of the College/University and the Facility will communicate regarding planning, development, implementation, and evaluation of the clinical experience program. The communication may include but not be limited to: i. Communication to familiarize Facility personnel with the clinical experience program's philosophy, goals and curriculum; ii. Communication to familiarize the College/University faculty with the Facility's philosophy, policy and program expectations; iii. Communication to keep both parties and the parties' personnel who are assigned to the clinical experience program informed of changes in philosophy, policies and any new programs which are contemplated; iv. Communication about jointly planning and sponsoring in-service or continuing education programs (if appropriate); v. Communication to identify areas of mutual need or concern; vi. Communication to seek solutions to any problems which may arise in the clinical experience program; and vii. Communication to facilitate evaluation procedures which may be required for approval or accreditation purposes or which might improve patient care or the College/University's emergency medical services curriculum. c. HIPAA. Solely for the purposes of defining the studentƭ͸ ğƓķ ŅğĭǒƌƷǤ ƩƚƌĻƭ źƓ ƩĻƌğƷźƚƓ Ʒƚ ƷŷĻ ǒƭĻ ğƓķ ķźƭĭƌƚƭǒƩĻ ƚŅ ƷŷĻ CğĭźƌźƷǤ͸ƭ ƦƩƚƷĻĭƷĻķ ŷĻğƌƷŷ źƓŅƚƩƒğƷźƚƓͲ ƷŷĻ /ƚƌƌĻŭĻΉ ƓźǝĻƩƭźƷǤ ğƓķ ŅğĭǒƌƷǤ ĻƓŭğŭĻķ in activities pursuant to this Agreement are members of the Facility workforce, as that term is defined in 45 CFR 160.103. The College/University students and faculty are not, and shall not be construed to be, employees of Facility. The College/University shall cooperate with Facility in complying with its obligations as a HIPAA covered entity, including, but not limited to, complying with its policies and procedures under the HIPAA Privacy Regulations, 45 CFR parts 160 and 164. Prior to placement at Facility, the College/University shall instruct its students and ŅğĭǒƌƷǤ Ʒƚ ĭƚƒƦƌǤ ǞźƷŷ CğĭźƌźƷǤ͸ƭ ƦƚƌźĭźĻƭ ğƓķ procedures governing the use and disclosure of individually identifiable health information. d. Insurance Each party, at its sole expense and at all times during the term of this Agreement, shall secure and maintain the following insurances (or comparable coverage under a program of self-insurance) Minnesota State Paramedic/Emergency Medical Memorandum of Agreement Template OGC Revised 12.2014 / 06.2018. Liability changes approved by Risk Mgmt 6.17.2024 Page 4 of 9 Council Packet Page Number 311 of 380 G5, Attachment 1 covering itself and its employees who perform any work, duties or obligations in connection with this Agreement. Commercial General Liability Insurance The College/University agrees to maintain Commercial General Liability insurance in conformance with the liability limits set forth in Minn. Stat. 3.736, subdv. 4. The Facility agrees to maintain Commercial General Liability insurance in conformance with the liability limits in Minnesota Statutes, section 466.04, subd. 1. Commercial Automobile Liability Insurance The Facility will maintain Commercial Automobile Liability insurance, covering automobiles used in the clinical experience program, with a limit not less than $2,000,000 combined single limit for bodily injury and property damage. Professional Liability Insurance The College/University will maintain Professional Liability insurance for participating students (and faculty, if applicable) or cause any student participating in the program to maintain Professional Liability insurance, with limits not less than $2,000,000 each claim and $3,000,000 aggregate. The Facility will maintain Professional Liability insurance covering itself and its employees, agents or assigns with limits not less than $2,000,000 each claim and $3,000,000 aggregate. If insurance covered by claims-made policies is discontinued, then extended reporting period coverage must be obtained and evidence of such coverage shall be provided to the other party. Additional Conditions: !Ɠ ƒĬƩĻƌƌğ ƚƩ 9ǣĭĻƭƭ \[źğĬźƌźƷǤ źƓƭǒƩğƓĭĻ ƦƚƌźĭǤ ƒğǤ ĬĻ ǒƭĻķ Ʒƚ ƭǒƦƦƌĻƒĻƓƷ ƷŷĻ CğĭźƌźƷǤ͸ƭ ƦƚƌźĭǤ limits to satisfy the full policy limits required by the Agreement. Each party shall provide to the other party upon request certificates of insurance or self-insurance evidencing the required coverage. If Facility receives a cancellation notice from an insurance carrier affording coverage herein, Facility agrees to notify the State of Minnesota within five (5) business days with a copy of the cancellation ƓƚƷźĭĻͲ ǒƓƌĻƭƭ CğĭźƌźƷǤ͸ƭ ƦƚƌźĭǤΛźĻƭΜ ĭƚƓƷğźƓ ğ ƦƩovision that coverage afforded under the policy(ies) will not be cancelled without at least thirty (30) daǤƭ͸ ğķǝğƓĭĻ ǞƩźƷƷĻƓ ƓƚƷźĭĻ Ʒƚ ƷŷĻ ƓźǝĻƩƭźƷǤ͵ 9ğĭŷ ƦğƩƷǤͲ ğƷ źƷƭ ƭƚƌĻ ĻǣƦĻƓƭĻͲ ƭŷğƌƌ ƦƩƚǝźķĻ ğƓķ ƒğźƓƷğźƓ ƚƩƉĻƩƭ͸ /ƚƒƦĻƓƭğƷźƚƓ źƓƭǒƩğƓĭĻ ğƭ such party may be required to obtain by law. The /ƚƌƌĻŭĻΉ ƓźǝĻƩƭźƷǤ źƭ ƭĻƌŅΏźƓƭǒƩĻķ ŅƚƩ ƚƩƉĻƩƭ͸ Compensation purposes, and any such insurance extends only to employees of the College/University, not to students. 4. REQUIREMENTS OF STUDENTS a. Each student will be required, as a condition for participation in the clinical experience program, to submit the results of a health examination to the College/University and, if requested, to the Facility, Minnesota State Paramedic/Emergency Medical Memorandum of Agreement Template OGC Revised 12.2014 / 06.2018. Liability changes approved by Risk Mgmt 6.17.2024 Page 5 of 9 Council Packet Page Number 312 of 380 G5, Attachment 1 to verify that no health problems exist which would jeopardize student or patient welfare. The health examination shall include an update of required immunizations. The health examination shall include a Mantoux test or chest x-ray and verification of immunity for rubeola and rubella. A list of those students with positive Mantoux or negative rubeola/rubella results may, at the request of the Facility, be provided to the Facility. b. Students participating in the clinical experience program are encouraged to carry their own health insurance. c. Students participating in the clinical experience program are responsible for carrying their own professional liability insurance if professional liability insurance is not provided by the College/University. 5. EMERGENCY MEDICAL CARE AND INFECTIOUS DISEASE EXPOSURE a. Any emergency medical care available at the Facility will be available to College/University students and faculty members. College/University students will be responsible for payment of charges attributable to their individual emergency medical care at either the Facility or the College/University. Any charges or expenses attributable to emergency medical care of a College/University faculty member at either the Facility or the College/University which are not paid by the College/University will be the responsibility of the College/University faculty member. b. Any College/University student or faculty member who is injured or becomes ill while at the Facility shall immediately report the injury or illness to the Facility and receive treatment (if available) at the Facility as a private patient or obtain other appropriate treatment as he or she chooses. All hospital or other medical costs arising from such College/University student injury or illness shall be the sole responsibility of the student who received the treatment and not the responsibility of the Facility or the College/University. Any hospital or other medical costs arising from such College/University faculty member injury or illness shall, if not paid by the College/University, be the sole responsibility of the College/University faculty member who receives the treatment and not the responsibility of the Facility or the College/University. c. The Facility shall follow, for College/University faculty and students exposed to an infectious disease at the Facility during the clinical experience program, the same policies and procedures which the Facility follows for its employees. d. College/University faculty and students contracting an infectious disease during the period of time they are assigned to or participating in the clinical experience program must report the fact to their College/University and to the Facility. Before returning to the Facility, such a College/University faculty member or student must submit proof of recovery to the College/University or Facility, if requested. Minnesota State Paramedic/Emergency Medical Memorandum of Agreement Template OGC Revised 12.2014 / 06.2018. Liability changes approved by Risk Mgmt 6.17.2024 Page 6 of 9 Council Packet Page Number 313 of 380 G5, Attachment 1 6. LIABILITY Each party agrees that it will be responsible for its own acts and the results thereof to the extent authorized by law and shall not be responsible for the acts of the other party and the results thereof. The College/University's liability shall be governed by the provisions of the Minnesota Tort Claims Act, Minnesota Statutes, Section 3.732 et seq., and other applicable law. 7. TERM OF AGREEMENT This Agreement is effective on the later of Upon Execution, or when fully executed, and shall remain in effect until 4/30/2029 11:59 PM. This Agreement may be terminated by either party at any time upon one year written notice to the other party. Termination by the Facility shall not become effective with respect to students then participating in the clinical experience program. 8. FINANCIAL CONSIDERATION a. The College/University and the Facility shall each bear their own costs associated with this Agreement and no payment is required by either the College/University or the Facility to the other party, except that, where applicable, the Facility shall pay the tuition and other educational fees of students it places in the clinical experience program. b. The Facility is not required to reimburse the College/University faculty or students for any services rendered to the Facility or its patients pursuant to this Agreement. 9. AMENDMENTS Any amendment to this Agreement shall be in writing and signed by authorized officers of each party. 10. ASSIGNMENT Neither the College/University nor the Facility shall assign or transfer any rights or obligations under this Agreement without the prior written consent of the other party. 11. STATE AUDIT The books, records, documents, and accounting procedures and practices of the Facility relevant to this Agreement shall be subject to examination by the College/University and the Legislative Auditor. 12. VOTER REGISTRATION (When Applicable) The Facility shall provide nonpartisan voter registration services and assistance, using forms provided by the College/University, to employees of the Facility and the public as required by Minnesota Statutes, Chapter 201.162. 13. AMERICANS WITH DISABILITIES ACT (ADA) COMPLIANCE The Facility agrees that in fulfilling the duties of this Agreement, the Facility is responsible for complying with the Americans with Disabilities Act, 42 U. S. C. Chapter 12101, et seq., and any regulations Minnesota State Paramedic/Emergency Medical Memorandum of Agreement Template OGC Revised 12.2014 / 06.2018. Liability changes approved by Risk Mgmt 6.17.2024 Page 7 of 9 Council Packet Page Number 314 of 380 G5, Attachment 1 promulgated to the Act. The College/University IS NOT responsible for issues or challenges related to compliance with the ADA beyond its own routine use of facilities, services, or other areas covered by the ADA. 14. DATA PRIVACY The College/University and the Facility each acknowledges that it is subject to the Minnesota Government Data Practices Act. In the event the Facility receives a request to release the data referred to in this Article, the Facility must immediately notify the College/University. The College/University will give the Facility instructions concerning the release of the data to the requesting party before the data is released. The parties additionally acknowledge that the Family Educational Rights and Privacy Act, 20 U.S.C.1232g and 34 C.F.R. 99, apply to the use and disclosure of education records that are created or maintained under this agreement. 15. OTHER PROVISIONS None. The rest of this page intentionally left blank. Signature page to follow. Minnesota State Paramedic/Emergency Medical Memorandum of Agreement Template OGC Revised 12.2014 / 06.2018. Liability changes approved by Risk Mgmt 6.17.2024 Page 8 of 9 Council Packet Page Number 315 of 380 G5, Attachment 1 IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed intending to be bound thereby. APPROVED: 1. FACILITY: MAPLEWOOD CITY OF By (authorized signature) Title Date By (authorized signature) Title Date 2. MINNESOTA STATE COLLEGES AND UNIVERSITIES MINNESOTA NORTH COLLEGE By (authorized signature) Title Date By (College/University President or Other Authorized Designee) Title Date 3. AS TO FORM AND EXECUTION: By (authorized signature) Title Date Minnesota State Paramedic/Emergency Medical Memorandum of Agreement Template OGC Revised 12.2014 / 06.2018. Liability changes approved by Risk Mgmt 6.17.2024 Page 9 of 9 Council Packet Page Number 316 of 380 G6 CITY COUNCIL STAFF REPORT Meeting Date July 22, 2024 REPORT TO: Michael Sable, City Manager REPORT FROM: Michael Mondor, Fire and EMS Chief PRESENTER:Michael Mondor, Fire and EMS Chief AGENDA ITEM: Contract Modification Number 01with Leo A. Daly Architect for the East Metro Public Safety Training Facility Action Requested: Motion Discussion Public Hearing Form of Action: Resolution Ordinance Contract/Agreement Proclamation Policy Issue: The City Council approved a professional services agreement with Leo A. Daly to conduct a Space Needs Assessment, Feasibility and Design for the East Metro Public Safety Training Facility at the October 9, 2023 City Council meeting. The needs assessment, feasibility and design work has been completed. During the project, staff requested additional services such as presentations, renderings and brochures that were not included in the original work scope. Additionally, funds remain to complete additional work and staff recommend pursuing quotations for a site survey and Phase 1 environmental assessment. In order to complete that work, a contract modification is required. Recommended Action: Motion to approve Contract Modification Number 01 with Leo A. Daly Architect for a Space Needs Assessment, Feasibility and Design for the East Metro Public Safety Training Facility. Fiscal Impact: Is There a Fiscal Impact? No Yes, the true or estimated cost is $10,400 Financing source(s): Adopted Budget Budget Modification New Revenue Source Use of Reserves Other: State Bonding Funding Strategic Plan Relevance: Community Inclusiveness Financial & Asset Mgmt Environmental Stewardship Integrated Communication Operational Effectiveness Targeted Redevelopment The expansion of the training facility will dramatically increase operational effectiveness between law enforcement, fire, emergency medical service and other partners (i.e. embedded social workers, crisis teams, etc.). Council Packet Page Number 317 of 380 G6 Background: th The East Metro Public Safety Training Facility (EMPSTF) officially opened on October 9, 2016. The facility features two training structures and a classroom and was built to address firefighter training needs in the metropolitan area primarily. The two-story house structure features an integrated fire simulation system that utilizes propane-fed fires and simulated smoke. The four-story live burn structure features a mock storefront, apartments, and four stories of live burn areas to allow for realistic firefighter training. Unfortunately, the site is largely not utilized by law enforcement, emergency medical services (EMS) agencies, and embed social workers (ESW) due to a lack of law enforcement/EMS functionality and, most recently, a lack of availability. Now, more than ever, Public Safety Professionals need to train together to meet the community's needs. An expansion of the East Metro Public Safety Training Facility would allow police, EMS, and ESW to train side-by-side in de- escalation, incident command, operating in tactical environments, co-response to complex search and/or rescue operations, people in crisis, and training on integrating public safety technologies. The City of Maplewood was awarded $75,000 of bonding money from the 2023 legislative session to complete a space needs assessment, feasibility and design for future development of the East Metro Public Safety Training Facility with a goal of being prepared to pursue additional bonding funds to expand the site into a true public safety training facility. The City Council approved a professional services agreement with Leo A. Daly to conduct a Space Needs Assessment, Feasibility and Design for the East Metro Public Safety Training Facility at the October 9, 2023 City Council Meeting. The space needs assessment, feasibility and preliminary design were completed in February 2024 in preparation for a bonding request in the 2024 legislative session. Unfortunately, a bonding bill was not passed in the 2024 legislative session. There is $35,940 remaining in the project budget and staff has requested additional work scope to further advance the project. That work included a presentation to the Ramsey County Chief’s Association, bird’s eye and vignette renderings, legislative handouts and the procurement of site survey and Phase 1 Environment Assessment services. A contract modification is required in order to complete additional work on the project. Attachments: 1.Contract Modification Number 01 with Leo A. Daly Architect for a Space Needs Assessment, Feasibility and Design for the East Metro Public Safety Training Facility Council Packet Page Number 318 of 380 G6, Attachment 1 Vice President James G Sokolowski, PE, LEED 15 July 2024 Council Packet Page Number 319 of 380 G6, Attachment 1 Council Packet Page Number 320 of 380 H1 CITY COUNCIL STAFF REPORT Meeting Date July 22, 2024 REPORT TO: Michael Sable, City Manager REPORT FROM: Joe Rueb, Finance Director PRESENTER: Joe Rueb, Finance Directo r AGENDA ITEM: Hill-Murray Project Public Hearing Action Requested: MotionDiscussion Public Hearing Form of Action: Resolution OrdinanceContract/Agreement Proclamation Policy Issue: Pursuant to Minnesota Statutes, Sections 469.152 through 469.1655, as amended (the ÐActÑ), the City is authorized to issue revenue obligations to finance, in whole or in part, the cost of the acquisition, construction, reconstruction, improvement, betterment, or extension of a Ðproject,Ñ defined in the Act, in part, as any properties, real or personal, used or useful in connection with a revenue producing enterprise, or any combination of two or more such enterprises engaged in any business, which includes an educational facility and an expansion thereto. Recommended Action: Hold a Public Hearing pursuant to Minnesota Statutes, Sections 469.152 through 469.1655. Fiscal Impact: Is There a Fiscal Impact? No Yes, the true or estimated cost is up to $20,000 (Base Charge) in revenues, representing the CityÓs issuer fee of 0.50% of total bond issuance amount (currently anticipated to be $4,000,000) + $2,500 (Application Fee) Financing source(s): Adopted Budget Budget Modification New Revenue Source Use of Reserves Other: N/A Strategic Plan Relevance: Community InclusivenessFinancial & Asset MgmtEnvironmental Stewardship Integrated CommunicationOperational EffectivenessTargeted Redevelopment NA Background: Project Description: The Hill-Murray Foundation, a Minnesota nonprofit corporation (the ÐBorrowerÑ) that operates Hill- Murray School (the ÐSchoolÑ) and related outdoor facilities located at 2625 Larpenteur Avenue East in Maplewood (collectively, the ÐFacilitiesÑ), Minnesota requests that the City of Maplewood consider the possibility of issuing tax-exempt conduit revenue bonds in the principal amount not to exceed $4,000,000 for the benefit of the School to (i) finance the renovation and construction of the Facilities, including a new plaza entrance to the SchoolÓs athletic field and running track and a new entrance to Council Packet Page Number 321 of 380 H1 the student union, (ii) fund a debt service reserve fund for the bonds, if necessary, and (iii) pay the costs of issuing of the bonds (collectively, the ÐProjectÑ). The bonds are proposed to be issued as private activity bonds that are qualified 501(c)(3) bonds, which would count towards the CityÓs annual $10 million limit for qualified tax-exempt bonds (ÐBQ bondsÑ). Project Outcomes: If the City approves the issuance of the bonds, the Borrower and the School will be able to take advantage of the reduced borrowing costs provided by tax-exempt financing. Before the City may issue the bonds, the City must submit an application to the Minnesota Department of Employment and Economic Development (ÐDEEDÑ) for approval of the Project in accordance with the Act. The DEED application requires the parties, including the City, as well as bond counsel, to submit certain documents. In addition, the issuance of the bonds would require the parties to finalize and execute bond documents, including the following documents with the City: (1) the bonds, to be issued in a single series (the ÐNoteÐ) (2) Loan Agreement between the City and the Borrower (the ÐLoan AgreementÑ); (3)Pledge Agreement between the City, the Borrower, and Premier Banks, the purchaser of the bonds (the ÐLenderÑ); (4) Mortgage, Security Agreement, Assignment of Leases and Rents and Fixture Financing Statement by the Borrower in favor of the Lender; (5) Disbursing Agreement by and among the Borrower, the Lender, and a title company; and (6) various closing certificates, including but not limited to an IRS Information Return, Form 8038 by the City, and a tax certificate by the Borrower and the School, as endorsed by the City, Obligation of the City: The Note proposed to be issued is a revenue bond, meaning the Note is payable only from the BorrowerÓs loan repayments made in accordance with the Loan Agreement and is secured by a first mortgage on the Facilities being financed (i.e., the Mortgage) and/or guarantees or other security. In addition, the bond documents will require the Borrower (as conduit borrower) and not the City to repay the Note directly. No money actually flows through the City. The bond documents will include provisions requiring the Borrower to indemnify the City for any potential liability incurred by the City with respect to the Note and the Project. he bond documents and the resolution adopted by the City approving their issuance will recite that the Note, if and when issued, will not to be payable from or charged upon any of the CityÓs funds, other than the revenues received under the Loan Agreement and pledged to the payment of the Note, and the City will not be subject to any liability on the Note. No holder of the Note will ever have the right to compel any exercise by the City of its taxing powers to pay any of the principal of the Note or the interest or premium thereon, or to enforce payment of the Note against any property of the City except the interests of the City in payments to be made by the Borrower under the Loan Agreement. The issuance of the Note does not impact the CityÓs debt capacity and does not constitute a general or moral obligation of the City. The Note will not be secured by the taxing powers of the City or any assets of the City. The City reasonably anticipates that the amount of tax-exempt obligations that it will issue in calendar year 2024, including the $4,545,000 General Obligation Improvement Bonds, Series 2024A issued on July 2, 2024 (the ÐCity BondsÑ) and the Note to be issued will not exceed $10,000,000, and therefore the issuance of the Note will not adversely impact the CityÓs designation of the City Bonds and the Note as bank-qualified obligations. To the extent the City proposes to issue additional BQ bonds in 2024, the City will be limited to issuing an amount not exceeding $10,000,000, less the amounts issued for the City Bonds and the Note. Attachments: N/A Council Packet Page Number 322 of 380 For the permanent record: Meeting Date: 7/22/2024 Agenda Item H1, Additional Attachment CITY OF MAPLEWOOD COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION NO. ______ RESOLUTION AUTHORIZING THE ISSUANCE, SALE, AND DELIVERY OF AN EDUCATIONAL FACILITIES REVENUE NOTE (HILL-MURRAY SCHOOL PROJECT) AND APPROVING THE FORMS OF AND AUTHORIZING THE EXECUTION AND DELIVERY OF THE NOTE AND RELATED DOCUMENTS WHEREAS, the City of Maplewood, Minnesota (the “City”) is a statutory city, municipal corporation, and political subdivision duly organized and existing under the Constitution and laws of the State of Minnesota. Pursuant to Minnesota Statutes, Sections 469.152 through 469.1655, as amended (the “Act”), the City is authorized to issue revenue obligations to finance, in whole or in part, the cost of the acquisition, construction, reconstruction, improvement, betterment, or extension of a “project,” defined in the Act, in part, as any properties, real or personal, used or useful in connection with a revenue producing enterprise, or any combination of two or more such enterprises engaged in any business, which includes an educational facility and an expansion thereto; and WHEREAS, the City Council of the City has received a request from The Hill-Murray Foundation, a Minnesota nonprofit corporation (the “Borrower”), that the City issue its Educational Facilities Revenue Note (Hill-Murray School Project), Series 2024 (the “Note”), in an original principal amount not to exceed $4,000,000, and loan the proceeds derived from the sale of the Note to the Borrower (the “Loan”) pursuant to a Loan Agreement, to be dated on or after August 1, 2024 (the “Loan Agreement”), between the City and the Borrower, to: (i) finance the renovation and construction of the nonsectarian portions of an educational facility located at 2625 Larpenteur Avenue East in the City, known as Hill-Murray School, including a new plaza entrance to the school’s athletic field and running track and a new entrance to the student union (the “Capital Project”); (ii) fund a debt service reserve fund, if necessary; (iii) pay a portion of the interest on the Note, if necessary; and (iv) pay the costs of issuing the Note (collectively, the Capital Project and the other purposes to which proceeds of the Note are proposed to be applied are the “Project”); and WHEREAS, Premier Bank, a Minnesota corporation (the “Lender”), has agreed to purchase the Note in a manner consistent with the policies of the City relating to the issuance and sale of non-rated conduit revenue bonds; and WHEREAS, the loan repayments required to be made by the Borrower under the terms of the Loan Agreement will be assigned to the Lender under the terms of a Pledge Agreement, to be dated on or after August 1, 2024 (the “Pledge”), between the City, the Borrower, and the Lender; and WHEREAS, the obligations of the Borrower under the terms of the Loan Agreement and the Pledge will be secured by an Mortgage, Security Agreement, Assignment of Leases and Rents and Fixture Financing Statement, to be dated on or after August 1, 2024 (the “Mortgage”), from the Borrower in favor of the Lender; and WHEREAS, forms of the following documents have been submitted to the City and are now on file with the City: (i) a form of the Note; (ii) the Loan Agreement; (iii) the Pledge; and (iv) the Mortgage; and For the permanent record: Meeting Date: 7/22/2024 Agenda Item H1, Additional Attachment WHEREAS, pursuant to Section 147(f) of the Code and regulations promulgated thereunder, the Note may not be issued as a tax-exempt bond unless the City Council of the City approves the Note after conducting a public hearing thereon, and Section 469.154, subdivision 4 of the Act requires that prior to submitting an application to the Minnesota Department of Employment and Economic Development (“DEED”) for approval of the Project, the City Council of the City must conduct a public hearing on the proposal to undertake a project authorized to be financed under the terms of the Act; and WHEREAS, a notice of public hearing (the “Public Notice”) was published in the Pioneer Press, the official newspaper and a newspaper of general circulation in the City, with respect to (i) the required public hearing to be held by the City under Section 147(f) of the Code; (ii) the required public hearing under Section 469.154, subdivision 4 of the Act; and (iii) the approval of the issuance of the Note. The Public Notice was published at least 14 days prior to the date of the public hearing. On the date hereof, the City Council of the City conducted a public hearing at which a reasonable opportunity was provide for interested individuals to express their views, both orally and in writing, with respect to the proposed issuance of the Note and the location and nature of the Project. NOW THEREFORE BE IT RESOLVED by the City Council of the City of Maplewood, Minnesota as follows: Section 1. Issuance of the Note. 1.01. Findings. The City Council hereby finds, determines, and declares that: (a) The issuance and sale of the Note, the execution and delivery by the City of the Note, the Loan Agreement, and the Pledge, and the performance of all covenants and agreements of the City contained in the Loan Agreement and the Pledge are undertaken pursuant to the Act. (b) The renovation and construction of the Capital Project and the other costs of the Project to be financed by the Note furthers the economic development purposes stated in Section 469.152 of the Act and constitutes a revenue producing “project,” as defined in Section 469.153, subdivision 2(b) of the Act. (c) In accordance with Section 469.154, subdivision 7, of the Act, the officers, employees, and agents of the City are hereby authorized and directed to encourage the Borrower to target employment opportunities to qualified individuals who are unemployed or economically disadvantaged. Such individuals may be identified by such mechanisms as are available to the Borrower, such as a first source agreement in which the Borrower agrees to use a designated state employment office as a first source for employment recruitment, referral, and placement. (d) The loan repayments to be made by the Borrower under the Loan Agreement are fixed to produce revenues sufficient to provide for the prompt payment of principal of, premium, if any, and interest on the Note issued under this resolution when due, and the Loan Agreement also provides that the Borrower is required to pay all expenses of the operation and maintenance of the school facility, including, but without limitation, adequate insurance thereon and insurance against all liability for injury to persons or property arising from the operation thereof, and all lawfully imposed taxes and special assessments levied upon or with respect to the school facility and payable during the term of the Loan Agreement. (e) As provided in the Loan Agreement, the Note shall not be payable from nor charged upon any funds other than the revenues pledged to its payment, nor shall the City be subject to any liability thereon, except as otherwise provided in this paragraph. No holder of the For the permanent record: Meeting Date: 7/22/2024 Agenda Item H1, Additional Attachment Note shall ever have the right to compel any exercise by the City of its taxing powers to pay the Note or the interest or premium thereon, or to enforce payment thereof against any property of the City except the interests of the City in the Loan Agreement and the revenues and assets thereunder (except for certain unassigned rights of the City, including those related to indemnification and reimbursement for certain costs and expenses), which will be assigned to the Lender under the Pledge. The Note shall not constitute a charge, lien, or encumbrance, legal or equitable, upon any property of the City, except the interests of the City in the Loan Agreement, and the revenues and assets thereunder (except for the unassigned rights of the City referenced above), which will be assigned to the Lender under the Pledge. The Note shall recite that the Note is issued pursuant to the Act, and that the Note, including interest and premium, if any, thereon, is payable solely from the revenues and assets pledged to the payment thereof, and the Note shall not constitute a debt of the City within the meaning of any constitutional or statutory limitations. 1.02. Issuance and Sale of the Note. The City hereby authorizes the issuance of the Note in the principal amount not to exceed $4,000,000 to finance the Project. The City hereby further authorizes the issuance of the Note, in the form, and with the terms set forth in the form of the Note now on file with the City. The aggregate principal amount of the Note (subject to the limitations set forth in this Section 1.02), the interest rate of the Note, the terms for adjustment of the interest rate on the Note, the date of the documents referenced in this resolution and the Note, and the terms of redemption of the Note may be established or modified with the approval of the City. The execution and delivery of the Note shall be conclusive evidence that the City has approved such terms as subsequently established or modified. The offer of the Lender to purchase the Note at the price of par plus accrued interest, if any, to the date of delivery at the interest rate or rates specified in the Note is hereby accepted. Upon approval of the Project by DEED, the Mayor and the City Manager of the City (the “City Officials”) are authorized and directed to prepare and execute the Note as prescribed in the Loan Agreement and the Note shall be delivered to the Lender. The City Officials are hereby authorized to execute and deliver any agreements with any depository institution, including any representation letter or amendment to any existing representation letter, in the event the City and the Lender elect to register the Note in book-entry form. 1.03. SThe Note shall be a special, limited obligation of pecial, Limited Obligations of City. the City, and the principal of, premium, if any, and interest on the Note shall be payable solely from the proceeds of the Note, the revenues derived from the Borrower pursuant to the Loan Agreement, and the security provided by the Borrower in accordance with the terms of the Loan Agreement, the Mortgage, the Pledge, and any and all other security of any kind or nature provided by the Borrower to the Lender. The Note will be subject to the provisions of a tax certificate, to be dated the date of issuance of the Note (the “Tax Certificate”), by the Borrower, and endorsed by the City. 1.04. Approval of Documents. The City Officials are hereby authorized and directed to execute and deliver the Loan Agreement, the Note, the Pledge, and such other documents as bond counsel considers appropriate in connection with the issuance of the Note (collectively, the “City Documents”). The forms of the City Documents and all other documents listed in the recitals hereof and exhibits thereto, and any consents and such other documents as are necessary or appropriate in connection with the issuance, sale, and delivery of the Note, including without limitation various certificates of the City, a certificate as to arbitrage and rebate, and similar documents (collectively, the “Financing Documents”) are approved substantially in the forms on file with the City Manager. The City Documents, in substantially the forms submitted, are directed to be executed in the name and on behalf of the City by the City Officials. The Note is to be executed in the name of and on behalf of the City by the City Officials and delivered to the Lender. Any other Financing Documents and certificates necessary to the transaction described above may be executed by one or more appropriate officers of the City. All of the provisions of the Financing Documents, when executed as authorized herein, shall be deemed to be a part of this For the permanent record: Meeting Date: 7/22/2024 Agenda Item H1, Additional Attachment resolution as fully and to the same extent as if incorporated verbatim herein and shall be in full force and effect from the date of execution and delivery thereof. The approval hereby given to the various Financing Documents referred to above includes approval of such additional details therein as may be necessary and appropriate and such modifications thereof, deletions therefrom and additions thereto as may be necessary and appropriate and approved by bond counsel to the City, the appropriate City staff person, or by the officers authorized herein to execute or accept, as the case may be, said documents prior to their execution; and said officers or staff members are hereby authorized to approve said changes on behalf of the City. The execution of any instrument by the appropriate officer or officers of the City herein authorized shall be conclusive evidence of the approval of such document in accordance with the terms hereof. 1.05. Certifications of the City. The Mayor, City Manager, and Finance Director of the City and other officers, employees, and agents of the City are hereby authorized and directed to prepare and furnish to bond counsel and the Lender certified copies of all proceedings and records of the City relating to the issuance of the Note, including a certification of this resolution. Such officers, employees, and agents are hereby authorized to execute and deliver, on behalf of the City, all other certificates, instruments, and other written documents that may be requested by bond counsel, the Lender, or other persons or entities in conjunction with the issuance of the Note. Without imposing any limitation on the scope of the preceding sentence, such officers, employees, and agents are specifically authorized to execute and deliver one or more certificates of the City, an endorsement of the City to the Tax Certificate, an Information Return for Tax-Exempt Private Activity Bond Issues, Form 8038, and all other documents and certificates as shall be necessary and appropriate in connection with the issuance, sale, and delivery of the Note. The City hereby authorizes Kennedy & Graven, Chartered, acting as bond counsel, to prepare, execute, and deliver its approving legal opinion with respect to the Note. 1.06. Security for the Note. The City hereby authorizes the Borrower to provide such security for payment of the Borrower’s obligations under the Loan Agreement and for payment of the Note, including the Mortgage, as is agreed upon by the Borrower and the Lender, and the City hereby approves the execution and delivery of such security. s required by the terms of Section 469.154 of the Act, the 1.07. DEED Application. A employees, officers, and agents of the City are hereby authorized and directed to submit an application to DEED for approval of the Project and the issuance of the Note. 1.08. Qualified Tax-Exempt Obligation. In order to qualify the Note as a “qualified tax- exempt obligation” within the meaning of Section 265(b)(3) of the Code, the City makes the following factual statements and representations: (a) the Note is a qualified 501(c)(3) bonds (as defined in Section 145 of the Code), and therefore is not treated as a “private activity bond” (as defined in Section 141 of the Code) for the purposes of Section 265(b)(3) of the Code; (b) the City hereby designates the Note as a “qualified tax-exempt obligation” for purposes of Section 265(b)(3) of the Code; (c) the reasonably anticipated amount of tax-exempt obligations (other than private activity bonds, that are not qualified 501(c)(3) bonds) which will be issued by the City (and all subordinate entities of the City) during calendar year 2024 will not exceed $10,000,000; For the permanent record: Meeting Date: 7/22/2024 Agenda Item H1, Additional Attachment (d) not more than $10,000,000 of obligations issued by the City during calendar year 2024 have been designated for purposes of Section 265(b)(3) of the Code; and (e) the aggregate face amount of the issue of the Note is not greater than $10,000,000. The City will cause to be kept at the office of the City Manager 1.09. Registration of Transfer. a Note Register for the Note in which, subject to such reasonable regulations as it may prescribe, the City shall provide for the registration of transfers of ownership of the Note. The Note shall be initially registered in the name of the Lender and, subject to Section 1.12, shall be transferable upon the Note Register for the Note by the Lender in person or by its agent duly authorized in writing, upon surrender of such Note together with a written instrument of transfer satisfactory to the City Manager, duly executed by the Lender or its duly authorized agent. The following form of assignment shall be sufficient for said purpose. For value received ___________ hereby sells, assigns and transfers unto ________________ the within Note of the City of Maplewood, Minnesota, and does hereby irrevocably constitute and appoint ___________________ attorney to transfer said Note on the books of said City with full power of substitution in the premises. The undersigned certifies that the transfer is made in accordance with the provisions of Sections 1.09 through 1.12 of the Resolution authorizing the issuance of the Note. Dated: ______________________ By: ______________________ Registered Owner Upon such transfer the City Manager shall note the date of registration and the name and address of the new Lender in the applicable Note Register and in the registration blank appearing on such Note; subject to receipt of a purchaser letter or certification as required by Section 1.12 hereof. 1.10. Mutilated, Lost or Destroyed Note. In case the Note issued hereunder shall become mutilated or be destroyed or lost, the City shall, if not then prohibited by law, cause to be executed and delivered, a new Note of like outstanding principal amount, number, series and tenor in exchange and substitution for and upon cancellation of such mutilated Note, or in lieu of and in substitution for such Note destroyed or lost, upon the payment by the Lender of the reasonable expenses and charges of the City in connection therewith, and in the case of a Note destroyed or lost, the filing with the City of evidence satisfactory to the City with indemnity satisfactory to it. If the mutilated, destroyed or lost Note has already matured or been called for redemption in accordance with its terms it shall not be necessary to issue a new Note prior to payment. 1.11. Ownership of Note. The City may deem and treat the person in whose name the Note is last registered in the Note Register for the Note and by notation on the Note whether or not the Note shall be overdue, as the absolute owner of the Note for the purpose of receiving payment of or on account of the principal balance, redemption price or interest and for all other purposes whatsoever, and the City shall not be affected by any notice to the contrary. 1.12. Limitation on Note Transfers. The Note shall be issued to a “qualified institutional buyer” or an “accredited investor” (i.e., the Lender) and without registration under state or other securities laws, pursuant to an exemption for such issuance; and accordingly the Note may not be assigned or transferred in whole or part, nor may a participation interest in the Note be given pursuant to any participation agreement, except to another “qualified institutional buyer” or “accredited investor” in accordance with an applicable exemption from such registration requirements and with full and accurate For the permanent record: Meeting Date: 7/22/2024 Agenda Item H1, Additional Attachment disclosure of all material facts to the prospective purchaser(s) or transferee(s). The City will require, as a precondition to any transfer, that the transferee provide to the City a written letter or certificate in a form satisfactory to the City and other evidence satisfactory to the City that the transferee is a qualified institutional buyer or other accredited investor under the securities laws. 1.13. Issuance of New Note. Subject to the provisions of Section 1.12, the City shall, at the request and expense of the Lender, issue a new note, in aggregate outstanding principal amount equal to that of the Note surrendered, and of like tenor except as to number, principal amount, and the amount of the periodic installments payable thereunder, and registered in the name of the Lender or such transferee as may be designated by the Lender. Section 2. Miscellaneous. 2.01. Agreements Binding. All agreements, covenants, and obligations of the City contained in this resolution and in the above-referenced documents shall be deemed to be the agreements, covenants, and obligations of the City to the full extent authorized or permitted by law, and all such agreements, covenants, and obligations shall be binding on the City and enforceable in accordance with their terms. No agreement, covenant, or obligation contained in this resolution or in the above-referenced documents shall be deemed to be an agreement, covenant, or obligation of any member of the City Council, or of any officer, employee, or agent of the City in that person’s individual capacity. Neither the members of the City Council nor any officer executing the Note shall be liable personally on the Note or be subject to any personal liability or accountability by reason of the issuance of the Note. 2.02. Rights Conferred. Except as herein otherwise expressly provided, nothing in this resolution or in the Loan Agreement, expressed or implied, is intended or shall be construed to confer upon any person, firm, or corporation other than the City and the registered and beneficial owners of the Note, any right, remedy, or claim, legal or equitable, under and by reason of this resolution or any provision hereof or of the Loan Agreement or any provision thereof; this resolution, the Loan Agreement and all of their provisions being intended to be, and being for the sole and exclusive benefit of the City and the registered and beneficial owners of the Note issued under the provisions of this resolution and the Loan Agreement, and the Borrower to the extent expressly provided in the Loan Agreement. No provision, covenant, or agreement contained in the Financing Documents, the Note or in any other document relating to the Note, and no obligation therein or herein imposed upon the City or the breach thereof, shall constitute or give rise to any pecuniary liability of the City or any charge upon its general credit or taxing powers. In making the agreements, provisions, covenants, and representations set forth in such documents, the City has not obligated itself to pay or remit any funds or revenues, other than funds and revenues derived from the Loan Agreement which are to be applied to the payment of the Note, as provided therein and in the Financing Documents. 2.03. Validity. In case any one or more of the provisions of this resolution, or of the documents mentioned herein, or of the Note issued hereunder shall for any reason be held to be illegal or invalid, such illegality or invalidity shall not affect any other provision of this resolution, or of the aforementioned documents, or of the Note, but this resolution, the aforementioned documents, and the Note shall be construed and endorsed as if such illegal or invalid provisions had not been contained therein. If for any reason the Mayor or the City Manager, or any other officers, employees, or agents of the City authorized to execute certificates, instruments, or other written documents on behalf of the City, shall for any reason cease to be an officer, employee, or agent of the City after the execution by such person of any certificate, instrument, or other written document, such fact shall not affect the validity or enforceability of such certificate, instrument, or other written document. If for any reason the Mayor or the City Manager is unable to execute and deliver the documents referred to in this resolution, such For the permanent record: Meeting Date: 7/22/2024 Agenda Item H1, Additional Attachment documents may be executed by any member of the City Council or any officer of the City delegated the duties of the Mayor or the City Manager with the same force and effect as if such documents were executed and delivered by the Mayor or the City Manager. s. The Borrower will pay the administrative fees of the City and pay, or, upon 2.04. Cost demand, reimburse the City for payment of, any and all costs incurred by the City in connection with financing the Project and issuing the Note, whether or not the Note are issued. The Borrower shall indemnify the City against all liabilities, losses, damages, costs, and expenses (including attorney's fees and expenses incurred by the City) arising with respect to the Project or the Note, as further provided for in the Loan Agreement. 2.05. Governmental Program. The City has established a governmental program of acquiring purpose investments for qualified 501(c)(3) organizations’ projects. The governmental program is one in which the following requirements of §1.148-1(b) of the federal regulations relating to tax-exempt obligations shall be met: (a) the program involves the origination or acquisition of purpose investments; (b) at least 95% of the cost of the purpose investments acquired under the program represents one or more loans to a substantial number of persons representing the general public, states or political subdivisions, 501(c)(3) organizations, persons who provide housing and related facilities, or any combination of the foregoing; (c) at least 95% of the receipts from the purpose investments are used to pay principal, interest, or redemption prices on issues that financed the program, to pay or reimburse administrative costs of those issues or of the program, to pay or reimburse anticipated future losses directly related to the program, to finance additional purpose investments for the same general purposes of the program, or to redeem and retire governmental obligations at the next earliest possible date of redemption; and (d) the program documents prohibit any obligor on a purpose investment financed by the program or any related party to that obligor from purchasing bonds of an issue that finances the program in an amount related to the amount of the purpose investment acquired from that obligor; and (e) the City shall not waive the right to treat the investment as a program investment. 2.06. Declaration of Official Intent to Reimburse Expenditures. (a) The United States Department of the Treasury has promulgated final regulations governing the use of the proceeds of tax-exempt bonds, all or a portion of which are to be used to reimburse the City or a borrower from the City for project expenditures paid prior to the date of issuance of such bonds. Those regulations, Section 1.150-2 of the Regulations, require that the City adopt a statement of official intent to reimburse an original expenditure not later than sixty (60) days after payment of the original expenditure. The Regulations also generally require that the bonds be issued and the reimbursement allocation made from the proceeds of the bonds occur within eighteen (18) months after the later of: (i) the date the expenditure is paid; or (ii) the date the project is placed in service or abandoned, but in no event more than three (3) years after the date the expenditure is paid. The Regulations generally permit reimbursement of capital expenditures and costs of issuance of the bonds. (b) The City reasonably expects to reimburse the Borrower for the expenditures made for costs of the Project from the proceeds of the Note. All reimbursed expenditures shall be capital For the permanent record: Meeting Date: 7/22/2024 Agenda Item H1, Additional Attachment expenditures, a cost of issuance of the Note, or other expenditures eligible for reimbursement under Section 1.150-2(d)(3) of the Regulations and also qualifying expenditures under the Act. (c) Based on representations by the Borrower, no expenditures for the Project have been made by the Borrower more than sixty (60) days before the date of adoption of this resolution other than: (i) expenditures to be paid or reimbursed from sources other than the Note; (ii) expenditures permitted to be reimbursed under prior regulations pursuant to the transitional provision contained in Section 1.150- 2(j)(2)(i)(B) of the Regulations; (iii) expenditures constituting preliminary expenditures within the meaning of Section 1.150-2(f)(2) of the Regulations; (iv) expenditures in a “de minimis” amount (as defined in Section 1.150-2(f)(1) of the Regulations); or (v) pursuant to a declaration of official intent by the Borrower in accordance with Section 1.150-2 of the Regulations. (d) Based on representations by the Borrower, as of the date hereof, there are no funds of the Borrower reserved, allocated on a long-term basis or otherwise set aside (or reasonably expected to be reserved, allocated on a long-term basis, or otherwise set aside) to provide permanent financing for the expenditures related to the Project to be financed from proceeds of the Note, other than pursuant to the issuance of the Note. This resolution, therefore, is determined to be consistent with the budgetary and financial circumstances of the Borrower as they exist or are reasonably foreseeable on the date hereof. 2.07. Effective Date. This resolution shall be in full force and effect from and after its approval. The approvals contained in the resolution are effective for one year after the date hereof. Adopted by the City Council of the City of Maplewood, Minnesota this 22nd day of July, 2024. Marylee Abrams, Mayor ATTEST: Andrea Sindt, City Clerk For the permanent record: Meeting Date: 7/22/2024 Agenda Item H1, Additional Attachment 2 J1 CITY COUNCILSTAFF REPORT Meeting Date July 22, 2024 REPORT TO:Michael Sable, City Manager REPORT FROM: David Anderson, Assistant City Attorney PRESENTER:Danette Parr, Community Development Director AGENDA ITEM: Resolution Ordering the Abatement of Hazardous Building and Public Nuisance Conditions at 1279 Ripley Avenue East Action Requested:MotionDiscussionPublic Hearing Form of Action: Resolution OrdinanceContract/Agreement Proclamation Policy Issue: The subject property (the “Property”) is located at 1279 Ripley Avenue E and, according to public records, is owned by Michael P. Thompson and James F. Preissner. The Property contains a single-family dwelling that is presently unoccupied. Following numerous unsuccessful attempts to communicate with the owners, the dwelling was inspected in February by the city’s building department and deemed hazardous for numerous reasons, as outlined in more detail below. The accumulation of rubbish and debris on the exterior of the Property also constitutes a public nuisance. To restore the Property to a safe, sanitary, and code-compliant condition, staff recommends that the city council approve the attached resolution and order the abatement of the hazardous and nuisance conditions on the Property. The resolution authorizes city staff and the city attorney to initiate legal proceedings in an effort to make the Property safe and bring it into compliance with state and local laws. Recommended Action: Motion to approve the Resolution Ordering the Abatement of Hazardous Building and Public Nuisance Conditions at 1279 Ripley Avenue East. Fiscal Impact: Is There a Fiscal Impact? No Yes, the true or estimated cost is indeterminable and depends on how legal proceedings play out. It is worth noting, however, that the statutory and city code provisions authorizing these proceedings allow for the city to recover enforcement costs via special assessments again the Property. Financing source(s): Adopted Budget Budget Modification New Revenue Source Use of Reserves Other: n/a Strategic Plan Relevance: Community InclusivenessFinancial & Asset MgmtEnvironmental Stewardship Integrated Communication Operational EffectivenessTargeted Redevelopment Council Packet Page Number 323 of 380 J1 Code enforcement is a key function of city services, and the use of abatement is a tool to compel compliance. Background: On February 14, 2024, after unsuccessful attempts to coordinate a consensual inspection with the owner, the Property and dwelling were inspected by the city’s building department pursuant to an administrative search warrant. During that inspection, the following conditions were observed: 1.The Dwelling’s roof system is seriously deteriorated and compromised with numerous large holes, leaving the interior exposed to the elements and allowing water to infiltrate the Dwelling. 2.The Dwelling’s roof sheathing and supporting roof structure are significantly deteriorated and damaged. 3.Ceilings are collapsed and have fallen into numerous areas throughout the interior of the Dwelling. 4.Numerous walls, portions of floors, and other framing throughout the dwelling are deteriorated, rotted, and failing. 5.The Dwelling’s interior is extensively filled with piled up rubbish and other debris, including throughout the occupiable spaces that were safely accessible. The Dwelling’s interior smells strongly of mold or mildew. 6.The exterior portion of the Property contains an accumulation of rubbish and debris, including scrap materials, a decaying mattress, discarded furniture, and large piles of brush and debris in the yard. Based on these conditions, staff has determined that the Dwelling is hazardous and unsafe, and the Property is a public nuisance, all under state law and the city code. The applicable statutory and city code references are specified in the proposed resolution. Allowing the Property to remain in its current state presents significant health and safety concerns, not only for any potential occupants but also for first responders that might need to enter the dwelling in an emergency. Staff has determined that the only way to effectively abate the dangerous and unlawful conditions at the Property is to initiate abatement proceedings pursuant to state law and the city code. A resolution has been prepared by the city attorney that (i) finds that the Property is both hazardous and a public nuisance; and (ii) authorizes staff and consultants to serve an order on the owner that requires abatement of said conditions within 45 days. Should the owner fail to comply with said order after it is duly served, the city will initiate formal proceedings to request a court order authorizing the city to demolish the dwelling and abate the nuisance conditions pursuant to its legal authority to do so. The statutory and city code provisions authorizing abatement proceedings allow for the city to recover enforcement costs related to this action via a special assessment against the Property. If the recommended resolution is adopted, the city attorney’s office will work with staff to initiate abatement proceedings, with the ultimate goal of abating the conditions that make the Property both hazardous and a public nuisance, including bringing a civil action pursuant to Minnesota Statutes, chapter 463 and Maplewood City Code, chapter 18. City attorney Ron Batty will be present during the meeting to answer any questions that the city council may have related to this matter. Attachments: 1.Abatement Order Resolution 2.Inspection Report Council Packet Page Number 324 of 380 Council Packet Page Number 325 of 380 Council Packet Page Number 326 of 380 Council Packet Page Number 327 of 380 Council Packet Page Number 328 of 380 Council Packet Page Number 329 of 380 Council Packet Page Number 330 of 380 Council Packet Page Number 331 of 380 Council Packet Page Number 332 of 380 Council Packet Page Number 333 of 380 Council Packet Page Number 334 of 380 Council Packet Page Number 335 of 380 Council Packet Page Number 336 of 380 Council Packet Page Number 337 of 380 Council Packet Page Number 338 of 380 Council Packet Page Number 339 of 380 Council Packet Page Number 340 of 380 Council Packet Page Number 341 of 380 Council Packet Page Number 342 of 380 Council Packet Page Number 343 of 380 Council Packet Page Number 344 of 380 Council Packet Page Number 345 of 380 Council Packet Page Number 346 of 380 Council Packet Page Number 347 of 380 Council Packet Page Number 348 of 380 Council Packet Page Number 349 of 380 Council Packet Page Number 350 of 380 J2 CITY COUNCILSTAFF REPORT Meeting Date July 22, 2024 REPORT TO: Michael Sable, City Manager REPORT FROM: Steven Love, Public Works Director / City Engineer Audra Robbins, Parks and Natural Resources Manager PRESENTER: Steven Love AGENDA ITEM: Harvest Park Master Plan Action Requested: MotionDiscussion Public Hearing Form of Action: Resolution OrdinanceContract/Agreement Proclamation Policy Issue: Staff will provide an update on the Harvest Park Master Plan. The update will include feedback we heard from the public at the June 6 Harvest Park Master Plan engagement session, recommendations from the Parks & Recreation Commission, recommended updates to the Harvest Park Master Plan. The City Council will consider approving the updated Harvest Park Master Plan. Recommended Action: Motion to approve the Harvest Park Master Plan. Fiscal Impact: Is There a Fiscal Impact? No Yes, the true or estimated cost is $0.00 Financing source(s): Adopted Budget Budget Modification New Revenue Source Use of Reserves Other: Future improvements to Harvest Park, based on the Master Plan, will be planned through the CIP process and brought to Council for review and approval before implementation. Strategic Plan Relevance: Community InclusivenessFinancial & Asset MgmtEnvironmental Stewardship Integrated Communication Operational EffectivenessTargeted Redevelopment The master planning process for Harvest Park touches on several of the City Council’s strategic initiatives by evaluating what we have, planning for the future, and involving our residents in the process. Background: Harvest Park is one of only two community athletic parks in Maplewood and as such serves a very important role in our system. Council Packet Page Number 351 of 380 J2 In October of 2019, the City Council approved entering into agreement with LHB, Inc. to begin the parks master planning process. That process included evaluation of existing conditions and facilities and community engagement that included stakeholder meetings, an open house, online survey and a master plan-level cost estimation. In April of 2020, the master plan concept for Harvest Park was presented to and approved by the Parks & Recreation Commission but due to the pandemic, changes to the services that the City provides, and possible changes to the Purple Line Bus Rapid Transit (BRT) routing the City Council approval of the master plan was put on hold. A review of the proposed master plan was done to see if the plan still met the needs of the public today and into the future. Based on this review, staff found that while the proposed master plan still met the needs of the public, there were a few changes that would greatly improve the overall plan for the park. At the City Council workshop on May 13, 2024, staff provided an update on the preferred master plan concept from 2020, staff recommended changes to the master plan, and asked for their feedback and guidance on how best to move forward. It was decided that an additional community engagement session was needed to update the public on the potential changes to the plan and give the public an opportunity to provide feedback. The engagement session was held on June 6, 2024 at Harvest Park. There was a great turnout of residents and park users which led to a robust discussion around updates to the parks master plan. Our consultants from LHB Inc. shared two updated concepts for people to review and give their feedback on. Most of the feedback received at this engagement session was in favor of the Updated Concept #2. Updated Concept #2 includes the following changes to the preferred Harvest Park Master Plan: Keep all of the existing parking lot located on the east side of the park Move the large picnic shelter to the west side of the trail o This allows for the existing parking lot to remain Remove ballfield and convert to green space o This allows for the existing parking lot to remain o Provide more usable open green space If the Purple Line is relocated to White Bear Avenue o The Purple Line parking area at the southwest corner will go away o The southwest corner will be changed to the following Active Area for bike skill course or skate park A picnic shelter with restrooms A parking lot with roughly 40 stalls to serve the south end of the park Staff presented the updated concepts, comments, and suggestions from the engagement session to the Parks & Recreation Commission at their June 20, 2024 Commission meeting. The Commission unanimously voted to approve Updated Concept #2 and to share their recommendation with the City Council. Staff recommends the City Council to approve the Harvest Park Master Plan. Attachments: 1. Harvest Park Preferred Concept Plan 2. Presentation Council Packet Page Number 352 of 380 J2, Attachment 1 Harmony Gardens Harvest Garden Senior Living Bocce Ball Courts + Other Lawn Games Gazebo (25 Person Capacity) BB Prairie + Pollinator Demonstration Area Twin Cities Bible B Church B A A B B Existing Parking Lot Picnic Shelter with Restrooms + Storage Space B D Brooks Ave E Picnic Shelter Playground Moved with (25 Person Capacity) Added Tree Buffer C D Picnic Shelter Picnic Shelter (25 Person Capacity) (25 Person Capacity) with Bench Swings + Small Play Features Picnic Shelter B with Restrooms (25 Person Capacity) A Sextant Ave E Active Area (bike or skate) B Existing Baskteball Court Pickleball Courts (6) Parking Lot (40 Stalls) Gervais Ave Gervais Ave St Key Picnic Table U14-Adult Soccer Field (3) A Bench N Barclay U10 or U12 Soccer Field (9) B Light Playground (1) C N Adult Exercise Equipment Open Play + Volleyball Area D 0200400800Feet VQEBUFE!QSFGFSSFE!QMBO Maplewood Parks and RecreationJuly 15, 2024 Council Packet Page Number 353 of 380 J2, Attachment 2 Master Plan Harvest Park Council Packet Page Number 354 of 380 J2, Attachment 2 Begin FUTURE Implementation TODAY Updated Plan and Approves City Council Reviews , 2024 th JUNE 6 Engagement House-Public Community Open MAY 2024 Master Plan Staff Review of What Has Changed? Project Progress: 2020 NOVEMBER 2019-April Creating Master Plan Public Engagement & OCTOBER 2019 Project Kick-Off Council Packet Page Number 355 of 380 J2, Attachment 2 sõ¸Å¸õõ¸²-åß¸òĀÅõåÞʕʓʕʓ 1 Full basketball court2 full tennis courts1 regulation ballfield2 practice/youth ballfields1 regulation soccer field1 practice/youth soccer field1 playgroundCommunity agricultureOpen play area~167 total parking spaces KõĐ¸ùĀsõÖ8ĒÌùĀÌßÆ-åß²ÌĀÌåßù Existing Conditions¤¤¤¤¤¤¤¤¤¤ Council Packet Page Number 356 of 380 J2, Attachment 2 Reduced Parking Lot along Brooks AvenueAdded Picnic Shelter with RestroomsPickleball StripingAdditional Playground and Playground RestorationPurple Line Station and Park and Ride in Southwestern Corner Preferred Plan in 2019/2020¤¤¤¤¤ Council Packet Page Number 357 of 380 J2, Attachment 2 COVIDPurple Line Route may be shifting to new locationParking needsPickleballSunshelters Project Context Changes since 2019/2020:¤¤¤¤¤ Council Packet Page Number 358 of 380 J2, Attachment 2 Keep existing parking areaShift Picnic ShelterRemove Ball Field to provide open green spaceAdditional parking in southwest cornerAdditional Pickleball Overall Plan Changes 2024¤¤¤¤¤ Council Packet Page Number 359 of 380 J2, Attachment 2 Additional Picnic SheltersBike Skills CourseSkate ParkPickleball CourtsNative Restoration and Trails SystemAdditional Trail Connections Programmatic Improvements¤¤¤¤¤¤ Council Packet Page Number 360 of 380 J2, Attachment 2 side is greatÒ. soccer fieldsÒ a playground.Ò ÑParking lot on the south ÑThere needs to be a LOT OF TREES & BUFFERS around the bike skills course and all the ÑI like this option a lot! Especially replacementÒ ÑPrioritize playground playground!...ÒNative Plantings Gervais on the park sideÒ ÑLike the larger parking lot Ï ÑLooking forward to the recommend 1 sided parking on activities: Disc Golf, Skate Park, 50ft away from homesÒ What WeÔve Heard ÑI like the idea of bringing in other ÑPlease keep playground more than Council Packet Page Number 361 of 380 J2, Attachment 2 Shifted Playground towest of trail and addedmore buffer treesKept larger parking lotoption in southwesterncornerActive Area providesoptions forprogramming Updated PreferredConcept¤¤¤ Council Packet Page Number 362 of 380 J2, Attachment 2 Skate ParkBike Skills CourseOpportunity to Partner withRamsey County on FutureProjects Active Area Opportunities¤¤¤ Council Packet Page Number 363 of 380 J2, Attachment 2 Recommended Action Motion to approve theHarvest Park Master Plan ¤ Council Packet Page Number 364 of 380 J3 CITY COUNCILSTAFF REPORT Meeting Date July 22, 2024 REPORT TO:Michael Sable, City Manager REPORT FROM: Steven Love, Public Works Director / City Engineer PRESENTER:Steven Love AGENDA ITEM: EAB Private Ash Tree Relief Policy Action Requested: MotionDiscussion Public Hearing Form of Action: Resolution OrdinanceContract/Agreement Proclamation Policy Issue: Emerald Ash Borer (EAB) insects are having a significant impact on the health of ash trees in the City of Maplewood and the surrounding metro area. Ash trees impacted by EAB can become hazardous. Management of trees on private property is the property owner’s responsibility. This includes cost to remove hazardous trees. Staff has prepared an EAB Private Ash Tree Relief Policy based on feedback from the May 28, 2023 City Council Workshop. City staff will provide a presentation that will cover the draft policy, how it works, and how residents can sign up. City Council will consider approving the EAB Private Ash Tree Relief Policy. If the draft policy is approved, staff will be looking for City Council feedback for setting a maximum limit of eligible work per property and the assessment period. Recommended Action: Motion to approve the EAB Private Ash Tree Relief Policy. Fiscal Impact: Is There a Fiscal Impact? No Yes, the true or estimated cost is $150,000 Financing source(s): Adopted Budget Budget Modification New Revenue Source Use of Reserves Other: The City Council has authorized the use of $150,000 for a private EAB ash tree assistance program. The draft policy and program will use the $150,000 to directly pay contractors for eligible ash tree removal costs of private trees. The City will then assess the property the amount the City directly paid to the contractor. Assessment payments will be collected with the property owner’s real estate property taxes. Strategic Plan Relevance: Community InclusivenessFinancial & Asset MgmtEnvironmental Stewardship Integrated CommunicationOperational EffectivenessTargeted Redevelopment Council Packet Page Number 365 of 380 J3 The City’s urban forest is an important asset to the City and the public. EAB has had a significant impact on the health of ash trees in Maplewood and the surrounding metro area. Trees on private property are an important part of the urban forest. Background: Emerald Ash Borer (EAB) insects are having a significant impact on the health of ash trees in the City of Maplewood and the surrounding metro area. Ash trees can become brittle once they die and can pose a hazard. The City of Maplewood is working to address EAB infected trees along City maintained streets in the public right-of-way and on City property. Management of trees located on private property are the responsibility of the property owners. Staff has prepared a draft EAB Private Ash Tree Relief policy and program based on the feedback received from the City Council at the May 28, 2024 workshop. The goal of this policy and program is to assist property owners that are faced with costs related to cutting down and removal of ash trees. This policy and program will provide property owners with an option to help finance all or a portion of the removal costs through a special assessment. The following are a few highlights of the new policy and program: Who is the program for? o All Maplewood residential property owners, who owe no delinquent taxes, are eligible to apply Eligible Work o Cutting down of existing ash trees o Removal of fallen tree(s), trunks, branches, etc. Not Eligible Work o Stump grinding, replanting, restoration Selecting a contractor o The property owners choose their contractor Must be a City licensed tree contractor Must obtain and submit three quotes Contractor payment o The City pays the contractor directly up to the maximum limit for eligible work Maximum limit for eligible work to be set by the City Council Assessment o The City assesses the property the amount the City paid to the contractor o Assessment interest rate will be based on the True Interest Cost of the most recent G.O. Bond issued plus 2% 2024 Assessment Rate = 5.65% o Payments will be collected with the property owner’s real estate property taxes Assessment period will be set by the City Council The City Council has authorized $150,000 of funding for a private ash tree removal program. If the City Council chooses to approve the draft policy, staff is looking for feedback on the maximum limit for eligible work and the assessment period. Following there are some options for the City Council to consider: Maximum limit of eligible work o$2,500 per property 60 properties can participate Council Packet Page Number 366 of 380 J3 o$3,000 per property 50 properties can participate o$3,500 per property 42 properties can participate Assessment period o 3 years o 4 years o 5 years If the City Council approves the policy and program, staff will be working with the Communications Department to let residents know of the program through the Maplewood Living, social media, and the City’s website. Due to the large amount of interest this program may generate, staff recommends the use of a lottery system for selecting who can participate. The following is a summary of how the lottery system will work: Online signup period will be from August 5, 2024 to August 30, 2024 The online signup will be on the City’s webpage o The City’s webpage incorporates Google Translate Property owners will provide their name, address, and contact information All applicants will be assigned a random number which represents their place in line for the program. o The final number of participants will be based on available funding. All applicants will be notified of the lottery results Participants will have two months to submit the application form and three quotes If participants choose not to take part in the program, do not submit the application and/or quotes by the end of two months, the next applicant in line will be contacted If a property owner contacts the City after the signup period has closed, they may be added to the end of the wait list Staff recommends the approval of the EAB Private Ash Tree Relief policy and is looking for City Council feedback on setting the maximum limit of eligible work per property and the assessment period. Staff will update the attached policy, assessment application, and completion form based on the City Council’s feedback. Attachments: 1.EAB Private Ash Tree Relief Policy Presentation 2.Draft - EAB Private Ash Tree Relief Policy 3.Draft - Assessment Application 4.Draft – Completion Form Council Packet Page Number 367 of 380 J3, Attachment 1 y c i l o P f e i l e R e e r T h s A City Council July 22, 2024 e t a v i r P B A E Council Packet Page Number 368 of 380 J3, Attachment 1 Responsible for managing their treesIncluding removal costs ¤¤ Significant impacts on tree healthAsh trees can become hazardousProperty owners Assist property owner facing removal costsProvide an financing optionOpen to all residential property owners Why Do We Need This New Policy? ¤¤¤¤¤¤ Impact of Emerald Ash Borer (EAB) insectsPolicy Goals ¤¤ Council Packet Page Number 369 of 380 J3, Attachment 1 New Policy Highlights All Maplewood residential property ownersMust owe no delinquent taxesCutting down of existing ash treesRemoval of fallen tree(s), trunks, branches, etc.Stump grinding, replanting, restoration ¤¤¤¤¤ Who is the program for?Eligible WorkNot Eligible Work ¤¤¤ Council Packet Page Number 370 of 380 J3, Attachment 1 How To Signup Work? August 5, 2024 to August 30, 2024CityÔs webpage (utilizes Google Translate)Name, address, and contact informationRepresents their place in lineNotify all applicants of the lottery results ¤¤¤¤¤ Online signup periodMinimal Signup Information RequiredAll applicants assigned a random number ¤¤¤ Council Packet Page Number 371 of 380 J3, Attachment 1 What Happens Next? Must be a City licensed tree contractorMust obtain and submit 3 quotesIncluding 3 quotesSubmittal period Ï2 months ¤¤¤¤ Property owners choose a contractorSubmit Assessment Application form ¤¤ Selecting a contractorParticipants ¤¤ Council Packet Page Number 372 of 380 J3, Attachment 1 What Happens Next? Up to the maximum limit for eligible work ¤ Contractor invoice billed to the City of Maplewood ¤ Waiver of appealMust be legal property ownerContractor can begin workProperty owner submits the Completion formThe City pays the contractor directly ¤¤¤¤¤ City approves Assessment ApplicationContractor payment ¤¤ Council Packet Page Number 373 of 380 J3, Attachment 1 True Interest Cost of the most recent G.O. Bond issued plus 2%2024 Assessment Rate = 5.65% ¤¤ The City assesses the property the amount the City paid to the contractor Assessment interest rate Payments collected with the property ownerÔs real estate property taxes How Do Special Assessments Work? ¤¤¤ Assessment ¤ Council Packet Page Number 374 of 380 J3, Attachment 1 Someone chooses not to be in the programSomeone does not submit application Available fundingContact the Public Works DepartmentWill be added to the end of the wait list ¤¤¤¤¤ Based on the assigned random numberNext applicant in lineHow to be added to the wait list after the lottery ¤¤¤ Wait List What If I Am NotSelected In the Lottery ¤ Council Packet Page Number 375 of 380 J3, Attachment 1 $2,500 per property (60 properties)$3,000 per property (50 properties)$3,500 per property (42 properties)3 years4 years5 years Maximum Limit & Assessment Period ¤¤¤¤¤¤ Available Funding -$150,000Maximum limit of eligible workAssessment period ¤¤¤ Council Packet Page Number 376 of 380 J3, Attachment 2 Managing trees on private property isthe property ownerÓs responsibility. This includes removing diseased and hazardoustrees before they area safety issue. This has been common with Ash trees impactedbyEmerald AshBorer(EAB). TheCityofMaplewoodhas created the EAB Private Ash Tree Relief policy to helpproperty ownersfinance removal costs through a special assessment. AllMaplewoodresidentialpropertyowners who owe no delinquent taxesare eligible to apply. Eligible Work: Cutting down ash trees Removaloffallen ash trees, trunks, branches, etc. Not Eligible Work: Stump grinding/removal Replanting Restoration What you need to do: 1.Sign up for theonlineash tree removal lottery (August 5, 2024 Î Closes August 31, 2024) 2.Property owners chosen must obtain at least threequotes fromCity-licensedtreecontractors Property owners may finance a maximum of $$$$$$ via special assessment The City will not cover costs beyond the maximum 3.Complete online assessment application Attach copies of the three quotes Must be signed by the property owner 4.Once approved, have your chosen contractor complete removal 5.Once removal workis finished, complete, sign, and submit theonlineCompletion form Must be signed by the property owner Attachfinal invoice billed to City of Maplewood. Once approved, the City pays the contractor Council Packet Page Number 377 of 380 J3, Attachment 2 Choosing a Contractor: The property owner chooses their City-licensed tree contractor o A list of City-licensed tree contractors is available through the Public Works Department or on the City website o If your preferred contractor is not City-licensed, they must apply to be a licensed tree contractor with the Public Works Department Paying the Tree Contractor: The City-licensed tree contractor bills the City when the work is finished for eligible work up to the maximum of $X,XXX. Public Works reviews the Completion form and invoice Once approved, the invoice is submitted to the Finance Department for payment made directly to the contractor The property owner is responsible for all costs above the approved eligible costs The legal property owner repays the city by special assessment: Finance processes a special assessment for the payment made to the contractor by the City Special assessment ratification by the City Council occurs in November Ratified special assessment sent to Ramsey County, which adds it to the legal property ownerÓs real estate taxes the following year Assessments subject to interest: Interest based on True Interest Cost of the most recent G.O. Bond issue plus 2% Interest begins accruing once the City certifies the special assessment to Ramsey County Payments will be collected with your real estate property taxes Payments spread over a X year period plus interest Full payment without penalty may be made at any time to Ramsey County This policy expires December 31, 2026 Council Packet Page Number 378 of 380 J3, Attachment 3 EAB PRIVATE ASH TREE RELIEF ASSESSMENT APPLICATION As legal owner of the property listed below, I have read and reviewed the EAB Private Ash Tree Relief policy and agree to the terms and conditions listed below: PROPERTY ADDRESS: _________________________________________________________________________________ OWNER NAME (PRINT): _________________________________________________________________________________ Full Legal Name OWNER SIGNATURE: __________________________________________DATE: ___________________________________ OWNER NAME (PRINT): _________________________________________________________________________________ Full Legal Name OWNER(S) SIGNATURE: ________________________________________DATE: ___________________________________ OWNER(S) ADDRESS: __________________________________________________________________________________ (If different from the property address) PHONE: _____________________________________EMAIL: __________________________________________________________ You are eligible to use this program if you are not delinquent on your property taxes. Return the completed Application for EAB Private Ash Tree Relief Assessment and a minimum of three contractor quotes to Maplewood Public Works. Please contact Maplewood Public Works with any questions. EMAIL: public.works@maplewoodmn.gov BY MAIL OR IN-PERSON: 1902 COUNTY ROAD B EAST ¤ MAPLEWOOD, MN 55109 ¤ 651.249.2400 PAYBACK PERIOD WAIVER OF APPEAL DAMAGE AWARDS: If the work performed was due to damage resulting from the actions of another party, and I collect compensation from that party, I agree to apply the full amount collected towards the unpaid balance of the assessment. FOR OFFICE USE ONLY Council Packet Page Number 379 of 380 J3, Attachment 4 EAB PRIVATE ASH TREE RELIEF COMPLETION FORM TO BE FILLED OUT BY LEGAL PROPERTY OWNER ONLY REQUEST FOR EAB PRIVATE ASH TREE RELIEF ASSESSMENT: I request that the City of Maplewood pay the attached invoice of $___________ (maximum amount of $X,XXX) because the private ash tree removal work has been completed to my satisfaction. PROPERTY ADDRESS: _____________________________________________________________ OWNER(S) NAME (PRINT): __________________________________________________________ OWNER(S) SIGNATURE: ________________________________________DATE:_______________ OWNER(S) ADDRESS: ______________________________________________________________ (If different from the property address) PHONE: _____________________EMAIL: ______________________________________________ DATE(S) WORK WAS PERFORMED:___________________________________________________ CITY LICENSED TREE CONTRACTOR INFORMATION: COMPANY NAME: __________________________________________________________________ COMPANY ADDRESS: _______________________________________________________________ COMPANY PHONE:______________EMAIL: _____________________________________________ PAYBACK PERIOD The sum of the approved eligible costs of work (maximum of $X,XXX) performed and interest will be collected through my real estate taxes over a X year period. All other contractor costs above the approved eligible costs are WAIVER OF APPEAL As owner of the property listed above, I waive my right to appeal this special assessment. BY MAIL OR IN-PERSON: 1902 COUNTY ROAD B EAST ¤ MAPLEWOOD, MN 55109 ¤ 651.249.2400 FOR OFFICE USE ONLY: Accepted by _______________________ Date________________All Forms Complete__________________ Council Packet Page Number 380 of 380