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062023 Work Session Meeting Packet      CITY COUNCIL  WORK SESSION MEETING    New Hope City Hall, 4401 Xylon Avenue North  Northwood Conference Room    Tuesday, June 20, 2023  6:00 p.m. ‐ dinner  6:30 p.m. ‐ meeting    Mayor Kathi Hemken  Council Member John Elder  Council Member Andy Hoffe  Council Member Michael Isenberg  Council Member Jonathan London      1. CALL TO ORDER – June 20, 2023    2. ROLL CALL    11. UNFINISHED & ORGANIZATIONAL BUSINESS     11.1 Dialogue between City Council and Personnel Board   11.2 Review 2022 Annual Comprehensive Financial Report (ACFR) with Abdo   11.3 Preliminary Discussion on 2024 Budget   11.4 Discuss the leasing of an unmarked vehicle through Enterprise Fleet Management   11.5 Resolution calling for a closed meeting of the New Hope City Council authorized  by Minn. Stat. §13D.05, Subd. 3(b) to discuss and consider litigation defense and  settlement strategies    12. OTHER BUSINESS    13. ADJOURNMENT  I:\RFA\HR & Admin Svcs\Human Resources\2023\Council Work Sessions\06202023\Dialog with PB June 20, 2023.docx   Request for Action  June 20, 2023    Approved by: Reece Bertholf, City Manager  Originating Department: HR & Admin Services  By: Rich Johnson, Director    Agenda Title  Dialogue between City Council and Personnel Board  Requested Action  At the City Council’s request, all city commissions are invited and scheduled to meet with the Council  annually. The Personnel Board will attend the June 20 work session to dialogue with the Council regarding  personnel‐related issues. The most recent dialogue was in November 2021. Since that time, the Personnel  Board has assisted the City with the following recruitment processes:     2021 (November to End of Year)  December 2021 Police Officer    2022  January 2022 Police Clerk  May 2022 Police Sergeant (Internal)  June 2022 Police Officer  June 2022 Maintenance Worker   July 2022 Community Service Officer  October 2022 Police Officer  December 2022 Golf Course Superintendent    2023  March 2023 Evidence Technician  March 2023 Police Officer  April 2023 Internal ‐Administrative Spec. in CD (later a certified candidate in PD)  April 2023 Police Clerk  May 2023 Police Officer    The Personnel Board also reviewed and updated the following job descriptions:   Human Resources Specialist/IT Coordinator   Stormwater Specialist/Project Coordinator   Accounting Technician   Contract Manager/Forester   Golf Course Superintendent   Evidence Technician   Maintenance Worker   Utilities Maintenance Supervisor   Police Clerk   Police Officer   Office Specialist  Agenda Section Work Session Item Number  11.1    The Personnel Board welcomes any questions or comments that council members have or issues they would  like to discuss.  Background  Per New Hope city code, the Personnel Board serves as the City’s Civil Service Commission. It is responsible  for the recruitment and hiring process of all employees covered by the personnel ordinance, establishing  general personnel rules and advising the city manager on personnel policies and issues. The board consists of  three members serving three‐year terms. Meetings are held on an as‐needed basis.    The current board consists of:   Chair Eric Galstad, member since 2008, 25 years HR experience   Commissioner Anthony Brown, member from 1997‐2007 and 2015 to present, 35 years of HR experience   Commissioner Wendy Brostrom, member since 2020, 26 years of HR experience      I:\RFA\City Manager\2023\Audit\WS 062023\Q‐Review 2022 Audit with Abdo 062023.docx   Request for Action  June 20, 2023    Approved by: Reece Bertholf, City Manager  Originating Department: City Manager  By: Reece Bertholf, City Manager    Agenda Title  Review 2022 Annual Comprehensive Financial Report (ACFR) with Abdo  Requested Action  Staff requests to review the 2022 audit with the City Council. Representatives from Abdo will be present and  facilitate the review. The audit will then be officially presented by Bill Lauer of MMKR to the Council at the  June 26, 2023 council meeting. Once the audit is accepted by the Council, it will be forwarded to the State of  Minnesota to comply with all applicable state requirements.  Policy/Past Practice  The policy and past practice over the past several years has been to present the preliminary audit documents  to the City Council at a work session for review and discussion before the audit is formally presented at a  City Council meeting.  Background  Included in your packet, please find:  • Management report  • Special purpose audit report  • Preliminary annual financial report for the fiscal year ending December 31, 2022     2022 was another unique year for the city budget due to the Federal funding received in 2021 and 2022. The  city received $2,284,764 in American Rescue Plan Act (ARPA) funding in total.  In 2021 $1,142,382 was  receipted into the General fund under Intergovernmental Revenue and in 2022 that money was transferred to  the Public Works Facility CIP fund.  This resulted in a decrease in the General fund of $925,671 for 2022.  In  2022 $1,142,382 was receipted directly into the Public Works Facility CIP fund.    Total general fund expenses were over budget by $154,209 due primarily to tree removal expenses relating to  Emerald Ash Borer.  The additional expenses were funded by transfers from the Street Infrastructure fund  ($400,000) and Park Infrastructure ($100,000).  Total general fund revenues were under budget by $141,223  primarily due to the interest earnings.  The interest earnings reflect market trends in the current year and the  fluctuation in the market value of securities held.  The City typically holds securities to maturity, so it is  unlikely that a loss on the disposal of an investment will be realized.    The total net position of the city’s enterprise funds (sewer/water/storm water/street lighting/golf course/ice  arena) increased by $2,389,438, with the increase spread across all funds.     As noted in the Management Report, MMKR issued an unmodified opinion and reported no deficiencies in  internal control that they consider material weaknesses, no instances of noncompliance and they reported no  findings. They reported they encountered no significant difficulties in dealing with management in  Agenda Section Work Session Item Number  11.2    Request for Action, Page 2    performing and completing the audit. Staff will be coordinating with Abdo to submit an application for the  2022 Excellence in Achievement for Financial Reporting Certificate.     Staff is recommending the Council officially accept the audit at the June 26 council meeting.    The following attachments are being sent electronically and hard copies will be available at the work session.  Attachments   Letter from auditor   Management Report   Special Purpose Audit Report   Annual Comprehensive Financial Report (ACFR)    June 14, 2023 Mr. Tim Hoyt Director of Police and Acting City Manager City of New Hope 4401 Xylon Avenue North New Hope, MN 55428 Dear Mr. Hoyt: Attached are PDF files of the Annual Comprehensive Financial Report (ACFR), special purpose audit reports, and management report for the City of New Hope, Minnesota for the year ended December 31, 2022. Please submit your ACFR, special purpose audit reports, and management report electronically, using the Adobe Acrobat format (PDF) provided, to the Office of the State Auditor at the following e-mail address by June 30: SingleAudit@osa.state.mn.us It is a pleasure working with you and your staff and we thank you for your cooperation and assistance during the audit. If you have any questions or need further assistance, please contact our office. Sincerely, MALLOY, MONTAGUE, KARNOWSKI, RADOSEVICH & CO., P.A. William J. Lauer, CPA Principal WJL:lmb Enclosures C E R T I F I E D A C C O U N T A N T S P UBLIC PRINCIPALS Thomas A. Karnowski, CPA Paul A. Radosevich, CPA William J. Lauer, CPA James H. Eichten, CPA Aaron J. Nielsen, CPA Victoria L. Holinka, CPA/CMA Jaclyn M. Huegel, CPA Kalen T. Karnowski, CPA Malloy, Montague, Karnowski, Radosevich & Co., P.A. 5353 Wayzata Boulevard • Suite 410 • Minneapolis, MN 55416 • Phone: 952-545-0424 • Fax: 952-545-0569 • www.mmkr.com Standard Letterhead-r2.qxp_167639 Letterhead-RV1 9/7/18 6:34 PM Page 1 Management Report for City of New Hope, Minnesota December 31, 2022 THIS PAGE INTENTIONALLY LEFT BLANK To the City Council and Management City of New Hope, Minnesota We have prepared this management report in conjunction with our audit of the City of New Hope, Minnesota’s (the City) financial statements for the year ended December 31, 2022. We have organized this report into the following sections: •Audit Summary •Governmental Funds Overview •Enterprise Funds Overview •Government-Wide Financial Statements •Accounting and Auditing Updates We would be pleased to further discuss any of the information contained in this report or any other concerns that you would like us to address. We would also like to express our thanks for the courtesy and assistance extended to us during our audit. The purpose of this report is solely to provide those charged with governance of the City, management, and those who have responsibility for oversight of the financial reporting process comments resulting from our audit process and information relevant to city finances in Minnesota. Accordingly, this report is not suitable for any other purpose. Minneapolis, Minnesota June 13, 2023 C E R T I F I E D A C C O U N T A N T S P UBLIC PRINCIPALS Thomas A. Karnowski, CPA Paul A. Radosevich, CPA William J. Lauer, CPA James H. Eichten, CPA Aaron J. Nielsen, CPA Victoria L. Holinka, CPA/CMA Jaclyn M. Huegel, CPA Kalen T. Karnowski, CPA Malloy, Montague, Karnowski, Radosevich & Co., P.A. 5353 Wayzata Boulevard • Suite 410 • Minneapolis, MN 55416 • Phone: 952-545-0424 • Fax: 952-545-0569 • www.mmkr.com Standard Letterhead-r2.qxp_167639 Letterhead-RV1 9/7/18 6:34 PM Page 1 THIS PAGE INTENTIONALLY LEFT BLANK -1- AUDIT SUMMARY The following is a summary of our audit work, key conclusions, and other information that we consider important or that is required to be communicated to the City Council, administration, or those charged with governance of the City. OUR RESPONSIBILITY UNDER AUDITING STANDARDS GENERALLY ACCEPTED IN THE UNITED STATES OF AMERICA AND GOVERNMENT AUDITING STANDARDS. We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of and for the year ended December 31, 2022. Professional standards require that we provide you with information about our responsibilities under auditing standards generally accepted in the United States of America and Government Auditing Standards, as well as certain information related to the planned scope and timing of our audit. We have communicated such information to you verbally and in our audit engagement letter. Professional standards also require that we communicate the following information related to our audit. PLANNED SCOPE AND TIMING OF THE AUDIT We performed the audit according to the planned scope and timing previously discussed and coordinated in order to obtain sufficient audit evidence and complete an effective audit. AUDIT OPINION AND FINDINGS Based on our audit of the City’s financial statements for the year ended December 31, 2022: • We issued an unmodified opinion on the City’s basic financial statements. Our report included a paragraph emphasizing the City’s implementation of Governmental Accounting Standards Board (GASB) Statement No. 87, Leases, during the year. Our opinion was not modified with respect to this matter. • We reported no deficiencies in the City’s internal control over financial reporting that we considered to be material weaknesses. • The results of our testing disclosed no instances of noncompliance required to be reported under Government Auditing Standards. • We reported no findings based on our testing of the City’s compliance with Minnesota laws and regulations. OTHER OBSERVATIONS AND RECOMMENDATIONS Deposit Sweep Account Minnesota Statutes § 118A.03 requires banks holding local government entity deposits to protect the deposits from custodial credit risk (the risk of loss in the event of a bank failure) by providing adequate insurance, bond, or pledged collateral to cover amounts “on deposit at the close of the financial institution’s banking day.” Some banks utilize arrangements under which governmental entities’ deposit balances in excess of Federal Deposit Insurance Corporation limits are swept out of their depository accounts daily into other investments or to depository accounts at other banks. -2- An issue has arisen with some sweep account arrangements, caused by a lag between the timing of when the primary bank’s records show the funds being swept out of its account and when the receiving bank’s records acknowledge receipt of the funds. If the receiving bank’s records do not show the transferred funds arriving the same business day as the primary bank shows them being swept out, the funds in transit would legally still be considered in the custody of the primary depository at the end of the banking day. This would potentially subject any excess deposits to custodial credit risk and not complying with statutory requirements. The Minnesota Office of the State Auditor (OSA) has added audit requirements to test such sweep arrangements in their Legal Compliance Audit Guide. In addition, recent bank failures have placed additional emphasis on the importance of protecting local government deposits from custodial credit risk. We recommend the City review the terms of any sweep arrangement it has in place or is considering and verify that the financial institutions on both sides of the sweep transaction are recognizing the transfer of funds the same banking day. Credit Card Transactions Minnesota cities have the authority to make purchases using credit cards issued on behalf of their city. Credit card purchases are becoming more commonplace, especially with the proliferation of e-commerce, and have consequently been garnering increased scrutiny from oversight agencies. The statutes authorizing credit card use by cities restrict their use to purchases made on behalf of a city, do not permit personal use of the credit card by the card user, and specify they should only be used by employees authorized to make purchases. Employees are personally liable for unauthorized credit card purchases. Purchases made with credit cards must comply with other applicable state laws, including the requirement that all claims presented for payment must be in writing and itemized. In its Statement of Position (SOP) on credit card use, the OSA has clarified that the statement from the credit card company lacks sufficient detail to comply with this requirement and, therefore, “public entities using credit cards must retain the invoices and receipts needed to support the items charged in the bill from the credit card company.” The SOP also states that the individual vendors providing the goods or services should be listed on the claims list provided to a city council for review and approval, rather than the credit card company. While the authorized use of a credit card to make small purchases offers advantages, such as convenience and expedited purchasing, the ability of the credit card users to make a city liable for purchases that are improper or not in compliance with statutory requirements is an added risk related to such transactions. The OSA recommends that a robust credit card policy be established by public entities allowing credit card purchases, which clearly delineates the requirements for use, supporting documentation requ ired, and the review and approval process for credit card purchases. The OSA also recommends that cities obtain signed written acknowledgement of the policy from all authorized card users. SIGNIFICANT ACCOUNTING POLICIES Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 of the notes to basic financial statements. No new accounting policies were adopted and the application of existing policies was not changed during the year ended December 31, 2022. However, the City implemented the following governmental accounting standard during the fiscal year: • The City implemented GASB Statement No. 87, Leases, during the current fiscal year. This standard changed the way lease transactions are reported by the City, but did not result in a restatement of beginning net position or fund balances. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. -3- ACCOUNTING ESTIMATES AND MANAGEMENT JUDGMENTS Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the financial statements were: • Depreciation/Amortization – Management’s estimates of depreciation/amortization expenses are based on the estimated useful lives of the assets. • Compensated Absences – Management’s estimate is based on current rates of pay; vacation, wellness, personal, and sick leave balances; and the likelihood that accrued sick leave will ultimately be paid at termination. • Value of Land Held for Resale – These assets are stated at the lower of cost or acquisition value based on management’s estimates. • OPEB and Pension Benefits – The City has recorded liabilities and activity for other post-employment benefits (OPEB) and pension benefits. Actuarial estimates of these obligations are calculated using actuarial methodologies described in GASB Statement Nos. 68 and 75. The actuarial calculations include significant assumptions, including projected changes, healthcare insurance costs, investment returns, retirement ages, proportionate share, and employee turnover. We evaluated the key factors and assumptions used by management to develop these accounting estimates in determining that they are reasonable in relation to the basic financial statements taken as a whole. Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The disclosures included in the notes to the basic financial statements related to OPEB and pension benefits are particularly sensitive, due to the materiality of the liabilities, and the large and complex estimates involved in determining the disclosures. The financial statement disclosures are neutral, consistent, and clear. DIFFICULTIES ENCOUNTERED IN PERFORMING THE AUDIT We encountered no significant difficulties in dealing with management in performing and completing our audit. CORRECTED AND UNCORRECTED MISSTATEMENTS Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. There were no misstatements detected as a result of audit procedures that were material, either individually or in the aggregate, to each opinion unit’s financial statements taken as a whole. DISAGREEMENTS WITH MANAGEMENT For purposes of this report, a disagreement with management is a financial accounting, reporting, or auditing matter whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit. -4- MANAGEMENT REPRESENTATIONS We have requested certain representations from management that are included in the management representation letter dated June 13, 2023. MANAGEMENT CONSULTATIONS WITH OTHER INDEPENDENT ACCOUNTANTS In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the City’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. OTHER AUDIT FINDINGS OR ISSUES We generally discuss a variety of matters, including the application of accounting principles and auditing standards with management each year prior to retention as the City’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. OTHER MATTERS We applied certain limited procedures to the management’s discussion and analysis (MD&A) and the pension and OPEB-related required supplementary information (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. We were engaged to report on the combining and individual fund financial statements and schedules, which accompany the financial statements, but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. We were not engaged to report on the introductory and statistical sections, which accompany 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. -5- GOVERNMENTAL FUNDS OVERVIEW This section of the report provides you with an overview of the financial trends and activities of the City’s governmental funds, which includes the General, special revenue, debt service, and capital project funds . These funds are used to account for the basic services the City provides to all of its citizens, which are financed primarily with property taxes. The governmental fund information in the City’s financial statements focuses on budgetary compliance and the sufficiency of each governmental fund’s current assets to finance its current liabilities. PROPERTY TAXES Minnesota cities rely heavily on local property tax levies to support their governmental fund activities. For the 2021 fiscal year, local ad valorem property tax levies provided 44.0 percent of the total governmental fund revenues for cities over 2,500 in population, and 35.5 percent for cities under 2,500 in population. Total property taxes levied by all Minnesota cities for taxes payable in 2022 increased 5.9 percent compared to the prior year, and 4.2 percent for taxes payable in 2023. The total tax capacity value of property in Minnesota cities increased about 5.6 percent for the 2022 levy year. The tax capacity values used for levying property taxes are based on the assessed market values for the previous fiscal year (e.g., tax capacity values for taxes levied in 202 2 were based on assessed market values as of January 1, 2021), so the trend of change in these tax capacity values lags somewhat behind the housing market and economy in general. The City’s taxable market value increased 7.7 percent for taxes payable in 2021 and 6.0 percent for taxes payable in 2022. The following graph shows the City’s changes in taxable market value over the past 10 years: $– $300,000,000 $600,000,000 $900,000,000 $1,200,000,000 $1,500,000,000 $1,800,000,000 $2,100,000,000 $2,400,000,000 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Taxable Market Value -6- Tax capacity is considered the actual base available for taxation. It is calculated by applying the state’s property classification system to each property’s market value. Each property classification, such as commercial or residential, has a different calculation and uses different rates. Consequently, a city’s total tax capacity will change at a different rate than its total market value, as tax capacity is affected by the proportion of its tax base that is in each property classification from year -to-year, as well as legislative changes to tax rates. The City’s tax capacity increased 8.1 percent for taxes payable in 2021 and 5.1 percent for taxes payable in 2022. The following graph shows the City’s change in tax capacities over the past 10 years: $– $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Local Tax Capacity The following table presents the average tax rates applied to city residents for each of the last three levy years: 2020 2021 2022 Average tax rate City 66.1 64.0 64.3 County 41.1 38.2 38.6 School 26.4 25.5 26.5 Special taxing 8.4 8.6 8.7 Total 142.0 136.3 138.1 Rates Expressed as a Percentage of Net Tax Capacity City of New Hope Both the City portion of the tax rate and the overall tax rate for New Hope residents increased slightly for the 2022 levy year. -7- GOVERNMENTAL FUND BALANCES The following table summarizes the changes in the fund balances of the City’s governmental funds during the year ended December 31, 2022, presented both by fund balance classification and by major fund. 2022 2021 Change Fund balances of governmental funds Total by classification Nonspendable 12,957$ 49,680$ (36,723)$ Restricted 10,602,043 9,779,064 822,979 Committed 4,724,303 4,520,972 203,331 Assigned 10,314,362 9,059,040 1,255,322 Unassigned 5,750,212 6,646,030 (895,818) Total governmental funds 31,403,877$ 30,054,786$ 1,349,091$ Total by fund General 7,748,072$ 8,673,743$ (925,671)$ Economic Development Authority Special Revenue 4,333,830 4,212,479 121,351 HRA Construction Capital Projects 6,628,845 5,955,136 673,709 Street Infrastructure Capital Projects 1,370,801 1,156,367 214,434 Park Infrastructure Capital Projects 1,604,089 1,512,440 91,649 HRA Bonds Debt Service (1,905,269) (1,978,033) 72,764 Nonmajor funds 11,623,509 10,522,654 1,100,855 Total governmental funds 31,403,877$ 30,054,786$ 1,349,091$ as of December 31, Governmental Funds Change in Fund Balance Fund Balance In total, the fund balances of the City’s governmental funds increased by $1,349,091 during the year ended December 31, 2022. The increase in restricted fund balances is primarily attributable to the improvement in the financial position of the City’s HRA Construction Capital Projects Fund in 2022. Resources accumulated for the second phase of the City’s public works facility addition in the (nonmajor) Public Works Facility CIP Capital Projects Fund contributed to the increase in assigned fund balances. The decrease in unassigned fund balance relates primarily to the General Fund, which included unbudgeted transfers of $1,142,382 of excess fund balance accumulated in the previous year to other funds, the majority of which went to the (nonmajor) Public Works Facility CIP Capital Projects Fund. -8- GOVERNMENTAL FUNDS REVENUE AND EXPENDITURES The following table presents the per capita revenue of the City’s governmental funds for the past three years, along with state-wide averages. We have included the most recent comparative state-wide averages available from the OSA to provide a benchmark for interpreting the City’s data. The amounts received from the typical major sources of governmental fund revenue will naturally vary between cities based on factors such as a city’s stage of development, location, size and density of its population, property values, services it provides, and other attributes. It will also differ from year-to-year, due to the effect of inflation and changes in its operation. Also, certain data in these tables may be classified differently than how they appear in the City’s financial statements in order to be more comparable to the state-wide information, particularly in separating capital expenditures from current expenditures. We have designed this section of our management report using per capita data in order to better identify unique or unusual trends and activities of the City. We intend for this type of comparative and trend information to complement, rather than duplicate, information in the MD&A. An inherent difficulty in presenting per capita information is the accuracy of the population count, which for most years is based on estimates. Year 2020 2021 2022 Population 10,000–20,000 20,000–100,000 21,986 21,870 21,870 Property taxes 529$ 557$ 762$ 798$ 834$ Tax increments 36 49 87 97 101 Franchise and other taxes 66 53 44 44 44 Special assessments 41 56 11 7 6 Licenses and permits 46 53 18 18 16 Intergovernmental revenues 293 202 195 149 164 Charges for services 111 110 45 81 103 Other 39 26 35 19 (13) Total revenue 1,161$ 1,106$ 1,197$ 1,213$ 1,255$ Governmental Funds Revenue per Capita With State-Wide Averages by Population Class City of New HopeState-Wide December 31, 2021 In total, the City’s governmental fund revenues for 2022 were $27,459,463, an increase of $947,001 (3.6 percent) or $42 capita from the prior year. Property tax revenue was $36 per capita higher than last year, due to an increase in the City’s levy. Intergovernmental revenue was $15 per capita higher than last year, mainly due to an increase in municipal state aid (MSA) street aid. Increases in police service charges and recreation program fees contributed to a $22 per capita increase in charges for services. Revenue from “other” sources as presented above, were $32 per capita lower than the prior year, mainly due to a decrease in investment earnings (charges) related to fair value declines in the City’s investment portfolio. As the City generally holds its investments to maturity, these unrealized fair value fluctuations are expected to be recovered by the time the individual investments mature. -9- The expenditures of governmental funds will also vary from state -wide averages and from year-to-year, based on the City’s circumstances. Expenditures are classified into three types as follows: • Current – These are typically the general operating type expenditures occurring on an annual basis, and are primarily funded by general sources, such as taxes and intergovernmental revenues. • Capital Outlay and Construction – These expenditures do not occur on a consistent basis, more typically fluctuating significantly from year-to-year. Many of these expenditures are project-oriented, and are often funded by specific sources that have benefited from the expenditure, such as special assessment improvement projects. • Debt Service – Although the expenditures for debt service may be relatively consistent over the term of the respective debt, the funding source is the important factor. Some debt may be repaid through specific sources, such as special assessments or redevelopment funding, while other debt may be repaid with general property taxes. The City’s expenditures per capita of its governmental funds for the past three years, together with comparative state-wide averages, are presented in the following table: Year 2020 2021 2022 Population 10,000–20,000 20,000–100,000 21,986 21,870 21,870 Current 131$ 116$ 94$ 98$ 111$ 296 327 380 393 408 124 112 84 87 100 124 107 93 120 138 79 77 59 61 59 Total current 754 739 710 759 816 Capital outlay and construction 407 317 394 211 164 Debt service 161 110 87 117 121 41 34 81 79 74 Total debt service 202 144 168 196 195 Total expenditures 1,363$ 1,200$ 1,272$ 1,166$ 1,175$ Governmental Funds Expenditures per Capita With State-Wide Averages by Population Class City of New Hope All other State-Wide December 31, 2021 Principal Interest and fiscal General government Public safety Public works Culture and recreation The City’s total governmental funds expenditures were $25,687,141 for 2022, an increase of $203,246 (0.8 percent) from the prior year, or $9 per capita. Current expenditures increased $57 per capita, with the increase spread across almost all functional areas. Capital outlay expenditures decreased $47 per capita, mainly due to less construction on the City’s public works facility addition than in the previous year. Debt service expenditures decreased $1 per capita. -10- GENERAL FUND The City’s General Fund accounts for the financial activity of the basic services provided to the community. The primary services included within this fund are the administration of the municipal operation, police and fire protection, building inspection, streets and highway maintenance, culture and recreation, and economic development. The graph below illustrates the change in the General Fund financial position over the last five years. We have also included a line representing annual expenditures and operating transfers out to reflect the change in the size of the General Fund operation over the same period. 2018 2019 2020 2021 2022 Fund Balance $7,180,951 $7,139,703 $8,926,086 $8,673,743 $7,748,072 Cash Balance (Net)$6,992,743 $7,187,781 $8,819,883 $8,578,067 $7,629,448 Exp & Trans Out $13,652,053 $14,337,748 $14,130,989 $16,845,891 $17,475,784 $– $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 $18,000,000 General Fund Financial Position Year Ended December 31, The total fund balance of the City’s General Fund decreased $925,671 in 2022, as compared to a breakeven budget. Unassigned fund balance was $7,655,481 at the end of fiscal year 2022, which represents approximately 43.8 percent of annual expenditures and transfers out based on 2022 levels. As the graph illustrates, the City has generally been able to maintain healthy cash and fund balance levels as the volume of financial activity has grown. This is an important factor because a government, like any organization, requires a certain amount of equity to operate. A healthy financial position allows the City to avoid volatility in tax rates; helps minimize the impact of state funding changes; allows for the adequate and consistent funding of services, repairs, and unexpected costs; and is a factor in determining the City’s bond rating and resulting interest costs. A trend that is typical to Minnesota local governments, especially the General Fund of cities, is the unusual cash flow experienced throughout the year. The City’s General Fund cash disbursements are made fairly evenly during the year, other than the impact of seasonal services, such as snowplowing, street maintenance, and park activities. Cash receipts of the General Fund are quite a different story. Property taxes comprise about 72.4 percent of the fund’s total annual revenue. Approximately half of these revenues are received by the City in July and the rest in December. Consequently, the City needs to have adequate cash reserves to finance its everyday operations between these payments. -11- The following graph reflects the City’s General Fund revenue sources for 2022 compared to budget: $(1)$– $1 $2 $3 $4 $5 $6 $7 $8 $9 $10 $11 $12 Property Taxes Franchise Taxes Licenses and Permits Intergovernmental Charges for Services Fines and Forfeitures Other Millions General Fund Revenue Budget to Actual Budget Actual Total General Fund revenue for 2022 was $15,735,928, which was $141,223 (0.9 percent) lower than the final budget. Intergovernmental revenue was $105,199 over budget, mainly in MSA street maintenance and construction aid. Revenue from other sources, as shown above, was $283,928 under budget, which was attributable to the fair value decline recognized on the City’s investment portfolio, as previously discussed. The following graph presents the City’s General Fund revenue by source for the last five years. The graph reflects the City’s reliance on property taxes, which represented 72.4 percent of General Fund revenue in 2022. Property Taxes Intergovernmental Other 2018 $9,971,064 $1,332,638 $2,315,213 2019 $10,297,018 $1,342,543 $2,324,664 2020 $10,422,823 $3,161,645 $1,993,616 2021 $10,914,572 $2,603,365 $2,618,139 2022 $11,391,654 $1,629,741 $2,714,533 $– $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 $10,000,000 $11,000,000 $12,000,000 General Fund Revenue by Source Year Ended December 31, Total General Fund revenue for 2022 was $400,148 (2.5 percent) lower than the prior year. Property tax revenue increased $477,082, due to a levy increase. Intergovernmental revenues were $973,624 less than 2021, primarily due to less federal American Rescue Plan Act (ARPA) award revenue recognized in the General Fund in 2022. Revenue from other sources increased $96,394 from last year, mainly in charges for services. -12- The following graph illustrates the components of General Fund spending for 2022 compared to budget: $– $1 $2 $3 $4 $5 $6 $7 $8 $9 $10 General Government Public Safety Public Works Culture and Recreation Millions General Fund Expenditures Budget to Actual Budget Actual Total General Fund expenditures for 2022 were $16,333,402, which was $154,209 (1.0 percent) over budget. Public works expenditures were $271,808 over budget, mainly due to costs associated with an Emerald Ash Borer abatement program. Public safety expenditures were $252,804 under budget, primarily in police personnel services, as several positions remained vacant during the year. The following graph illustrates the City’s General Fund expenditures by function over the last five years: General Government Public Safety Public Works Culture and Recreation 2018 $1,788,108 $8,107,759 $1,491,045 $2,015,141 2019 $1,904,447 $8,482,568 $1,564,148 $2,032,585 2020 $2,063,407 $8,409,878 $1,622,046 $2,035,658 2021 $2,148,125 $8,772,777 $1,653,003 $2,629,453 2022 $2,423,685 $9,023,699 $1,870,737 $3,015,281 $– $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 $10,000,000 General Fund Expenditures by Function Year Ended December 31, Total General Fund expenditures were $1,130,044 (7.4 percent) higher than the previous year. General government expenditures increased $275,560, mainly in planning and zoning, elections, and City Hall maintenance. Public safety expenditures went up by $250,922, mainly in police salaries and contributions to the West Metro Fire Rescue District. Public works expenditures were $217,734 higher, mainly due to costs related to Emerald Ash Borer abatement. Culture and recreation expenditures were $385,828 higher than the prior year, mainly in salaries and services related to the aquatic center and recreation programs. -13- ENTERPRISE FUNDS OVERVIEW The City maintains several enterprise funds to account for services the City provides that are financed primarily through fees charged to those utilizing the service. This section of the report provides you with an overview of the financial trends and activities of the City’s enterprise funds, which include the Sewer Utility, Water Utility, Golf Course, Ice Arena, Storm Water, and Street Lighting funds. ENTERPRISE FUNDS FINANCIAL POSITION The following table summarizes the changes in the financial position of the City’s enterprise funds during the year ended December 31, 2022, presented both by classification and by fund: 2022 2021 Change Net position of enterprise funds Total by classification Net investment in capital assets 24,036,351$ 22,607,046$ 1,429,305$ Unrestricted 7,913,393 6,953,260 960,133 Total enterprise funds 31,949,744$ 29,560,306$ 2,389,438$ Total by fund Sewer Utility 6,762,627$ 5,977,582$ 785,045$ Water Utility 10,717,300 9,767,495 949,805 Golf Course 755,190 716,948 38,242 Ice Arena 4,316,750 4,087,498 229,252 Storm Water 8,908,669 8,536,338 372,331 Street Lighting 489,208 474,445 14,763 Total enterprise funds 31,949,744$ 29,560,306$ 2,389,438$ Enterprise Funds Change in Financial Position Net Position as of December 31, In total, the net position of the City’s enterprise funds increased by $2,389,438 during the year ended December 31, 2022, with the increase spread across all funds. The net investment in enterprise capital assets increased $1,429,305, mainly due to the relationship between the repayment of outstanding capital-related debt and depreciation/amortization recognized on the related capital assets. Unrestricted net position increased by $960,133, mainly due to positive operating results in the Sewer Utility, Water Utility, and Storm Water funds. -14- SEWER UTILITY FUND The following graph presents five years of operating results for the City’s Sewer Utility Fund: 2018 2019 2020 2021 2022 Oper Rev $3,154,709 $3,380,075 $3,712,613 $3,906,809 $4,026,715 Oper Exp $2,684,030 $2,843,056 $3,119,273 $2,868,543 $3,075,452 Oper Inc (Loss)$470,679 $537,019 $593,340 $1,038,266 $951,263 $– $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 Sewer Utility Operating Results Year Ended December 31, The Sewer Utility Fund ended 2022 with a total net position of $6,762,627, of which $4,228,034 represents the net investment in sewer collection system capital assets, leaving an unrestricted balance of $2,534,593. Net position increased $785,045 in the current year. Operating revenue in the Sewer Utility Fund for 2022 increased $119,906 (3.1 percent) from the previous year, which primarily reflects a 3.0 percent rate increase implemented for the year. Operating costs for 2022 were $206,909 (7.2 percent) less than last year, mainly in salaries and benefits expenses. -15- WATER UTILITY FUND The following graph presents five years of operating results for the City’s Water Utility Fund: 2018 2019 2020 2021 2022 Oper Rev $4,391,025 $4,387,321 $5,139,616 $5,545,731 $5,526,619 Oper Exp $4,029,601 $3,720,072 $4,178,233 $4,677,022 $4,713,624 Oper Inc (Loss)$361,424 $667,249 $961,383 $868,709 $812,995 $– $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 $5,000,000 $5,500,000 $6,000,000 Water Utility Operating Results Year Ended December 31, The Water Utility Fund ended 2022 with a total net position of $10,717,300, of which $6,631,842 represents the net investment in water distribution system capital assets, leaving an unrestricted balance of $4,085,458. The Water Utility Fund net position increased $949,805 in 2022. Operating revenue in the Water Utility Fund for 2022 decreased $19,112 (0.3 percent) from the prior year, as water rates remained flat and consumption for irrigation remained high, due to another dry year. Operating costs for 2022 were also very close to the previous year, increasing by $36,602 (0.8 percent). -16- GOLF COURSE FUND The following graph presents five years of operating results for the City’s Golf Course Fund: 2018 2019 2020 2021 2022 Oper Rev $274,735 $282,323 $401,666 $450,307 $424,160 Oper Exp $309,757 $327,422 $324,994 $358,282 $389,397 Oper Inc (Loss)$(35,022)$(45,099)$76,672 $92,025 $34,763 $(100,000) $(50,000) $– $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 $500,000 Golf Course Fund Year Ended December 31, The Golf Course Fund ended 2022 with a total net position of $755,190, an increase of $38,242. Of this, $394,821 represents the net investment in golf course capital assets, leaving $360,369 in unrestricted net position. Golf Course Fund operating revenue for 2022 decreased $26,147 (5.8 percent) from the prior year, which primarily reflects a 9.3 percent decrease in rounds played. Operating expenses were $31,115 (8.7 percent) higher than the prior year, mainly in personnel costs and depreciation/amortization. -17- ICE ARENA FUND The following graph presents five years of operating results for the City’s Ice Arena Fund: 2018 2019 2020 2021 2022 Oper Rev $825,531 $852,765 $560,316 $883,968 $879,927 Oper Exp $942,466 $953,352 $966,868 $1,059,816 $1,175,657 Oper Inc (Loss)$(116,935)$(100,587)$(406,552)$(175,848)$(295,730) $(500,000) $(300,000) $(100,000) $100,000 $300,000 $500,000 $700,000 $900,000 $1,100,000 $1,300,000 Ice Arena Fund Year Ended December 31, The Ice Arena Fund ended 2022 with a total net position of $4,316,750, an increase of $229,252. Of this, $5,156,510 represents the net investment in ice arena capital assets, leaving an unrestricted deficit net position of $839,760. Ice Arena Fund operating revenue for 2022 decreased $4,041 (0.5 percent) from the prior year, primarily from a decrease of about 3.8 percent in hours of ice time ice rental. Operating expenses were $115,841 (10.9 percent) higher than the prior year, with increases in personnel costs, supplies, utilities, and depreciation/amortization. -18- STORM WATER FUND The following graph presents five years of operating results for the City’s Storm Water Fund: 2018 2019 2020 2021 2022 Oper Rev $1,139,007 $1,190,058 $1,259,707 $1,321,518 $1,378,944 Oper Exp $738,307 $874,407 $886,021 $890,301 $943,889 Oper Inc (Loss)$400,700 $315,651 $373,686 $431,217 $435,055 $– $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 $1,000,000 $1,100,000 $1,200,000 $1,300,000 $1,400,000 Storm Water Fund Year Ended December 31, The Storm Water Fund ended 2022 with a total net position of $8,908,669, an increase of $372,331. Of this, $7,293,895 represents the net investment in storm water collection system capital assets, leaving an unrestricted net position of $1,614,774. Storm Water Fund operating revenues for 2022 increased $57,426 (4.3 percent) from the previous year, mainly due to a 4.0 percent rate increase implemented in 2022. Operating expenses were $53,588 (6.0 percent) higher than last year, mainly in personnel costs. -19- STREET LIGHTING FUND The following graph presents five years of operating results for the City’s Street Lighting Fund: 2018 2019 2020 2021 2022 Oper Rev $144,582 $152,975 $161,866 $170,656 $178,120 Oper Exp $119,198 $116,612 $133,159 $136,112 $157,293 Oper Inc (Loss)$25,384 $36,363 $28,707 $34,544 $20,827 $– $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 $180,000 Street Lighting Fund Year Ended December 31, The Street Lighting Fund ended 2022 with a total net position of $489,208, an increase of $14,763. Of this, $331,249 represents the net investment in street lighting capital assets, leaving an unrestricted net position of $157,959. Street Lighting Fund operating revenue for 2022 increased $7,464 (4.4 percent) from the previous year, which reflects a 5.0 percent rate increase implemented this year. Operating expenses were $21,181 (15.6 percent) higher than the previous year, mainly due to an increase in utilities expense. THIS PAGE INTENTIONALLY LEFT BLANK -20- GOVERNMENT-WIDE FINANCIAL STATEMENTS In addition to fund-based information, the current reporting model for governmental entities also requires the inclusion of two government-wide financial statements designed to present a clear picture of the City as a single, unified entity. These government-wide financial statements provide information on the total cost of delivering services, including capital assets and long-term liabilities. STATEMENT OF NET POSITION The Statement of Net Position essentially tells you what the City owns and owes at a given point in time, the last day of the fiscal year. Theoretically, net position represents the resources the City has leftover to use for providing services after its debts are settled. However, those resources are not always in spendable form, or there may be restrictions on how some of those resources can be used. Therefore, net position is divided into three components: net investment in capital assets, restricted, and unrestricted. The following table presents the components of the City’s net position as of December 31, 2022 and 2021, for governmental activities and business-type activities: 2022 2021 Change Net position Governmental activities Net investment in capital assets 37,045,401$ 34,985,781$ 2,059,620$ Restricted 9,539,926 8,598,311 941,615 Unrestricted 22,780,655 23,427,177 (646,522) Total governmental activities 69,365,982 67,011,269 2,354,713 Business-type activities Net investment in capital assets 24,036,351 22,607,046 1,429,305 Unrestricted 7,525,398 6,455,200 1,070,198 Total business-type activities 31,561,749 29,062,246 2,499,503 Total net position 100,927,731$ 96,073,515$ 4,854,216$ As of December 31, The City’s total net position at December 31, 2022 represented an increase of $4,854,216 from the previous year-end. Governmental activities net position increased by $2,354,713 overall. The increase in net investment in capital assets is mainly due to current year capital asset additions, which were purchased or constructed for without the issuance of new bonds. The increase in restricted net position was mainly due to an increase in tax increment revenues in the HRA Construction Capital Projects Fund, which are restricted for economic development. The decrease in unrestricted net position was mainly due to the unbudgeted transfers of excess fund balance from the previous year in the General Fund, as discussed earlier in this report. Business-type activities net position increased $2,499,503, as detailed in the discussion of enterprise fund operations. -21- STATEMENT OF ACTIVITIES The Statement of Activities tracks the City’s yearly revenues and expenses, as well as any other transactions that increase or reduce total net position. These amounts represent the full cost of providing services. The Statement of Activities provides a more comprehensive measure than just the amount of cash that changed hands, as reflected in the fund-based financial statements. This statement includes the cost of supplies used, depreciation/amortization of long-lived capital assets, and other accrual-based expenses. The changes in the City’s net position for the years ended December 31, 2022 and 2021 were as follows: 2021 Program Expenses Revenues Net Change Net Change Governmental activities General government 2,991,397$ 575,345$ (2,416,052)$ (419,736)$ Public safety 9,224,111 1,584,010 (7,640,101) (6,540,941) Public works 4,716,237 1,357,560 (3,358,677) (3,135,345) Culture and recreation 3,845,915 1,304,099 (2,541,816) (2,062,010) Economic development 1,374,777 – (1,374,777) (1,434,986) Interest on long-term debt 1,440,518 – (1,440,518) (1,518,351) Business-type activities Sewer utility 3,057,860 4,028,074 970,214 933,983 Water utility 4,732,554 5,914,064 1,181,510 1,099,890 Golf course 386,668 453,486 66,818 104,938 Ice arena 1,176,353 931,777 (244,576) (164,655) Storm water 958,733 1,423,573 464,840 454,991 Street lighting 157,248 178,120 20,872 34,757 Total net (expense) revenue 34,062,371$ 17,750,108$ (16,312,263) (12,647,465) General revenues Property taxes and tax increments 20,423,652 19,476,109 Franchise taxes 959,744 962,395 Unrestricted grants and contributions 905,573 3,155,397 Unrestricted investment earnings (charges)(1,131,728) 17,650 Gain on sale of capital assets 9,238 70,300 Total general revenues 21,166,479 23,681,851 Change in net position 4,854,216$ 11,034,386$ 2022 Net (expense) revenue One of the goals of this statement is to provide a side-by-side comparison to illustrate the difference in the way the City’s governmental and business-type operations are financed. The table clearly illustrates the dependence of the City’s governmental operations on general revenues, such as property taxes and unrestricted grants. It also shows that, for the most part, the City’s business-type activities are generating sufficient program revenues (service charges and program-specific grants) to cover expenses. The difference in the net change in general government was mainly due changes in the allocation of internal service fund costs for technology and other services. The difference in the net change in public safety was primarily due to a decline in the funding level of the state-wide Public Employees Retirement Association Public Employees Police and Firefighter pension plan, recognized in 2022. The decrease in unrestricted grants and contributions relates to the recognition of approximately $2.3 million of ARPA funding in the prior year. The decline in unrestricted investment earnings was due to the fair value adjustments to investments previously discussed. -22- ACCOUNTING AND AUDITING UPDATES The following is a summary of Governmental Accounting Standards Board (GASB) standards expected to be implemented in the next few years. GASB STATEMENT NO. 96, SUBSCRIPTION-BASED INFORMATION TECHNOLOGY ARRANGEMENTS This statement provides guidance on the accounting and financial reporting for subscription-based information technology arrangements (SBITAs) for government end users (governments). This statement (1) defines an SBITA; (2) establishes that an SBITA results in a right-to-use subscription asset—an intangible asset—and a corresponding subscription liability; (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of an SBITA; and (4) requires note disclosures regarding an SBITA. To the extent relevant, the standards for SBITAs are based on the standards established in Statement No. 87, Leases, as amended. An SBITA is defined as a contract that conveys control of the right to use another party’s (an SBITA vendor’s) information technology (IT) software, alone or in combination with tangible capital assets (the underlying IT assets), as specified in the contract for a period of time in an exchange or exchange -like transaction. Under this statement, a government generally should recognize a right-to-use subscription asset—an intangible asset—and a corresponding subscription liability. This statement provides an exception for short-term SBITAs with a maximum possible term under the SBITA contract of 12 months, including any options to extend, regardless of their probability of being exercised. Subscription payments for short-term SBITAs should be recognized as outflows of resources. This statement requires a government to disclose descriptive information about its SBITAs other than short-term SBITAs, such as the amount of the subscription asset, accumulated amortization, other payments not included in the measurement of a subscription liability, principal and interest requirements for the subscription liability, and other essential information. The requirements of this statement are effective for fiscal years beginning after June 15, 2022, and all reporting periods thereafter. GASB STATEMENT NO. 99, OMNIBUS 2022 The objectives of this statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing (1) practice issues that have been identified during implementation and application of certain GASB statements and (2) accounting and financial reporting for financial guarantees. The practice issues addressed by this statement are as follows: • Classification and reporting of derivative instruments within the scope of Statement No. 53, Accounting and Financial Reporting for Derivative Instruments, that do not meet the definition of either an investment derivative instrument or a hedging derivative instrument. • Clarification of provisions in Statement No. 87, Leases, as amended, related to the determination of the lease term, classification of a lease as a short-term lease, recognition and measurement of a lease liability and a lease asset, and identification of lease incentives. • Clarification of provisions in Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements, related to (a) the determination of the public-private and public-public partnership (PPP) term and (b) recognition and measurement of installment payments and the transfer of the underlying PPP asset. -23- • Clarification of provisions in Statement No. 96, Subscription-Based Information Technology Arrangements, related to the SBITA term, classification of an SBITA as a short-term SBITA, and recognition and measurement of a subscription liability. • Extension of the period during which the London Interbank Offered Rate (LIBOR) is considered an appropriate benchmark interest rate for the qualitative evaluation of the effectiveness of an interest rate swap that hedges the interest rate risk of taxable debt. • Accounting for the distribution of benefits as part of the Supplemental Nutrition Assistance Program (SNAP). • Disclosures related to nonmonetary transactions. • Pledges of future revenues when resources are not received by the pledging government. • Clarification of provisions in Statement No. 34, Basic Financial Statements—and Management’s Discussion and Analysis—for State and Local Governments, as amended, related to the focus of the government-wide financial statements. • Terminology updates related to certain provisions of Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position. • Terminology used in Statement No. 53, Accounting and Financial Reporting for Derivative Instruments, to refer to resource flows statements. The requirements of this statement that are effective are as follows: • The requirements related to extension of the use of LIBOR, accounting for SNAP distributions, disclosures of nonmonetary transactions, pledges of future revenues by pledging governments, clarification of certain provisions in Statement No. 34, as amended, and terminology updates related to Statement No. 53 and Statement No. 63 are effective upon issuance. • The requirements related to leases, PPPs, and SBITAs are effective for fiscal years beginning after June 15, 2022, and all reporting periods thereafter. • The requirements related to financial guarantees and the classification and reporting of derivative instruments within the scope of Statement No. 53 are effective for fiscal years beginning after June 15, 2023, and all reporting periods thereafter. 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. The requirements of this statement will improve the clarity of the accounting and financial reporting requirements for accounting changes and error corrections, which will result in greater consistency in application in practice. In turn, more understandable, reliable, relevant, consistent, and comparable information will be provided to financial statement users for making decisions or assessing accountability. In addition, the display and note disclosure requirements will result in more c onsistent, decision useful, understandable, and comprehensive information for users about accounting changes and error corrections. The requirements of this statement are effective for accounting changes and error corrections made in fiscal years beginning after June 15, 2023, and all reporting periods thereafter. Earlier application is encouraged. -24- 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. 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. The requirements of this statement are effective for fiscal years beginning after December 15, 2023, and all reporting periods thereafter. Earlier application is encouraged. THIS PAGE INTENTIONALLY LEFT BLANK CITY OF NEW HOPE HENNEPIN COUNTY, MINNESOTA Special Purpose Audit Reports Year Ended December 31, 2022 THIS PAGE INTENTIONALLY LEFT BLANK Page Independent Auditor’s 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 1–2 Independent Auditor’s Report on Minnesota Legal Compliance 3 CITY OF NEW HOPE Table of Contents Special Purpose Audit Reports Year Ended December 31, 2022 THIS PAGE INTENTIONALLY LEFT BLANK -1- INDEPENDENT AUDITOR’S 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 To the City Council and Management City of New Hope, 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 New Hope, Minnesota (the City) as of and for the year ended December 31, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated June 13, 2023. REPORT INTERNAL CONTROL OVER FINANCIAL 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 designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the 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 have not been identified. (continued) C E R T I F I E D A C C O U N T A N T S P UBLIC PRINCIPALS Thomas A. Karnowski, CPA Paul A. Radosevich, CPA William J. Lauer, CPA James H. Eichten, CPA Aaron J. Nielsen, CPA Victoria L. Holinka, CPA/CMA Jaclyn M. Huegel, CPA Kalen T. Karnowski, CPA Malloy, Montague, Karnowski, Radosevich & Co., P.A. 5353 Wayzata Boulevard • Suite 410 • Minneapolis, MN 55416 • Phone: 952-545-0424 • Fax: 952-545-0569 • www.mmkr.com Standard Letterhead-r2.qxp_167639 Letterhead-RV1 9/7/18 6:34 PM Page 1 -2- REPORT ON 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 the financial statements. 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 report is not suitable for any other purpose. Minneapolis, Minnesota June 13, 2023 -3- INDEPENDENT AUDITOR’S REPORT ON MINNESOTA LEGAL COMPLIANCE To the City Council and Management City of New Hope, 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 New Hope, Minnesota (the City) as of and for the year ended December 31, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated June 13, 2023. MINNESOTA LEGAL COMPLIANCE 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 Minnesota Statutes § 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. PURPOSE OF THIS REPORT The purpose of this report is solely to describe the scope of our testing of compliance and the results of that testing, and not provide an opinion on compliance. Accordingly, this report is not suitable for any other purpose. Minneapolis, Minnesota June 13, 2023 C E R T I F I E D A C C O U N T A N T S P UBLIC PRINCIPALS Thomas A. Karnowski, CPA Paul A. Radosevich, CPA William J. Lauer, CPA James H. Eichten, CPA Aaron J. Nielsen, CPA Victoria L. Holinka, CPA/CMA Jaclyn M. Huegel, CPA Kalen T. Karnowski, CPA Malloy, Montague, Karnowski, Radosevich & Co., P.A. 5353 Wayzata Boulevard • Suite 410 • Minneapolis, MN 55416 • Phone: 952-545-0424 • Fax: 952-545-0569 • www.mmkr.com Standard Letterhead-r2.qxp_167639 Letterhead-RV1 9/7/18 6:34 PM Page 1 THIS PAGE INTENTIONALLY LEFT BLANK CITY OF NEW HOPE NEW HOPE, MINNESOTA ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2022 CITY OF NEW HOPE HENNEPIN COUNTY, MINNESOTA ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2022 TIM HOYT – ACTING CITY MANAGER PREPARED BY: DEPARTMENT OF FINANCE Member GFOA of U.S. and Canada THIS PAGE INTENTIONALLY LEFT BLANK Page INTRODUCTORY SECTION LETTER OF TRANSMITTAL FROM CITY MANAGER i–vi GFOA CERTIFICATE OF ACHIEVEMENT vii ORGANIZATIONAL CHART viii CITY COUNCIL AND CITY OFFICIALS ix FINANCIAL SECTION INDEPENDENT AUDITOR’S REPORT 1–3 MANAGEMENT’S DISCUSSION AND ANALYSIS 4–14 BASIC FINANCIAL STATEMENTS Government-Wide Financial Statements Statement of Net Position 15 Statement of Activities 16–17 Fund Financial Statements Governmental Funds Balance Sheet 18–19 Reconciliation of the Balance Sheet to the Statement of Net Position 20 Statement of Revenue, Expenditures, and Changes in Fund Balances 21–22 Reconciliation of the Statement of Revenue, Expenditures, and Changes in Fund Balances to the Statement of Activities 23 Statement of Revenue, Expenditures, and Changes in Fund Balances – General Fund – Budget and Actual 24 Statement of Revenue, Expenditures, and Changes in Fund Balances – Economic Development Authority Fund – Budget and Actual 25 Proprietary Funds Statement of Net Position 26–29 Statement of Revenue, Expenses, and Changes in Net Position 30–31 Statement of Cash Flows 32–35 Notes to Basic Financial Statements 36–70 REQUIRED SUPPLEMENTARY INFORMATION PERA – General Employees Retirement Fund Schedule of City’s and Nonemployer Proportionate Share of Net Pension Liability 71 Schedule of City Contributions 71 PERA – Public Employees Police and Fire Fund Schedule of City’s and Nonemployer Proportionate Share of Net Pension Liability 72 Schedule of City Contributions 72 Other Post-Employment Benefits Plan Schedule of Changes in the City’s Total OPEB Liability and Related Ratios 73 Notes to Required Supplementary Information 74–79 CITY OF NEW HOPE HENNEPIN COUNTY, MINNESOTA Table of Contents Page SUPPLEMENTARY INFORMATION Combining and Individual Fund Financial Statements and Schedules Nonmajor Governmental Funds Combining Balance Sheet 80 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 81 Nonmajor Special Revenue Funds Subcombining Balance Sheet 82 Subcombining Statement of Revenues, Expenditures, and Changes in Fund Balances 83 Schedule of Revenues, Expenditures, and Changes in Fund Balances – Solid Waste Management Fund – Budget and Actual 84 Nonmajor Capital Projects Funds Subcombining Balance Sheet 85–86 Subcombining Statement of Revenues, Expenditures, and Changes in Fund Balances 87–88 Nonmajor Debt Service Funds Subcombining Balance Sheet 89–90 Subcombining Statement of Revenues, Expenditures, and Changes in Fund Balances 91–92 General Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual 93–96 Internal Service Funds Combining Statement of Net Position 97 Combining Statement of Revenues, Expenses, and Changes in Net Position 98 Combining Statement of Cash Flows 99 STATISTICAL SECTION (UNAUDITED) Financial Trends Net Position by Component 100–101 Changes in Net Position 102–105 Governmental Activities Tax Revenues by Source 106 Fund Balances of Governmental Funds 107–108 Changes in Fund Balances of Governmental Funds 109–110 General Government Tax Revenues by Source 111 Revenue Capacity Tax Capacity, Market Value, and Estimated Actual Value of Taxable Property 112–113 Property Tax Rates – Direct and Overlapping Governments 114 Principal Property Taxpayers 115 Property Tax Levies and Collections 116 Debt Capacity Ratios of Outstanding Debt by Type 117–118 Ratios of General Bonded Debt Outstanding 119 Direct and Overlapping Governmental Activities Debt 120 Legal Debt Margin Information 121–122 Pledged Revenue Coverage 123 Demographic and Economic Information Demographic and Economic Statistics 124 Principal Employers 125 Operating Information Full-Time Equivalent City Government Employees by Function 126–127 Operating Indicators by Function 128–129 Capital Asset Statistics by Function 130–131 CITY OF NEW HOPE HENNEPIN COUNTY, MINNESOTA Table of Contents (continued) INTRODUCTORY SECTION CITY OF NEW HOPE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2022 THIS PAGE INTENTIONALLY LEFT BLANK June 13, 2023 Honorable Mayor and City Council City of New Hope 4401 Xylon Avenue North New Hope, MN 55428-4898 The Annual Comprehensive Financial Report (ACFR) of the City of New Hope, Minnesota (the City), for the fiscal year ended December 31, 2022, is submitted herewith. As required by state law, this report is published annually, prior to June 30, and submitted to the Office of the State Auditor. The form and contents of this report and the accompanying financial statements and statistical tables are designed to meet the needs of a broad spectrum of financial statement readers, and were prepared in conformance with standards set forth by: 1. The Governmental Accounting Standards Board (GASB) 2. The American Institute of Certified Public Accountants 3. The United States Office of Management and Budget 4. The State Auditor, State of Minnesota 5. The Government Finance Officers’ Association (GFOA) of the United States and Canada The financial data presented in this report was prepared by the City’s finance department staff. The responsibility for the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures, rests with the City. We believe the data as presented is accurate in all material respects and is presented in a manner designed to fairly set forth the financial activity of the various funds, and that all disclosures necessary to enable the reader to gain the maximum understanding of the City’s financial activity have been included. Accounting principles generally accepted in the United States of America require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of the Management’s 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 City’s MD&A can be found immediately following the report of the independent auditors. PROFILE OF THE GOVERNMENT The City is a residential suburb of the City of Minneapolis with a population of 21,870. The City is 5.6 square miles in area and is fully developed. The City was incorporated in 1953 and enjoys a diverse commercial and residential tax base. The City operates under the “Optional Plan B” government structure as defined in Minnesota Statutes. Optional Plan B is known as the council-manager plan. Under this plan, as specified in the statutes, “The City Council shall exercise the legislative power of the City and determine all matters of policy. The city manager shall be the head of the administrative branch of the City government and shall be responsible to the City Council for the proper administration of all affairs relating to the City.” The City Council is composed of five members, including the mayor. The city manager is appointed by the City Council. -i- CITY O F NEW HOPE 4401 Xylon Avenue North • New Hope, Minnesota 55428-4898 • www.ci.new-hope.rrm.us City Hall: 763-531-5100 • Police (non-emergency): 763-531-5170 • Public Works: 763-592-6777 • TDD: 763-531-5109 City Hall Fax: 763-531-5136 • Police Fax: 763-531-5174 • Public Works Fax: 763-592-6776 -ii- The City’s accounting system is organized and operated on a “fund basis.” Each fund is a distinct self-balancing accounting entity. The City’s accounting records for governmental fund types are maintained on the modified accrual basis and the accrual basis is utilized by proprietary funds, as defined in the notes to basic financial statements. The City maintains a system of internal control that provides reasonable assurance of accounting data reliability, and the safeguarding of assets against loss from unauthorized use or disposition. The concept of reasonable assurance recognizes the cost of control should not exceed the benefits likely to be derived, and the evaluation of costs and benefits requires estimates and judgments by management. Budgets are maintained for the General Fund and certain special revenue funds (as noted in the notes to basic financial statements). The city manager is directed to submit an annual budget to the City Council. Upon adoption of the annual budget resolution by the City Council, it becomes the formal budget for city operations. Any changes to the original budget have to be authorized by City Council action, but must maintain a balanced budget by either recognizing additional receipts, or utilizing fund balances. Budget controls are maintained through a system of purchase orders and monthly financial statements which compare actual performance with the budget. The City has reviewed its reporting entity definition in light of GASB’s pronouncements. The entities included in the City’s report are those for which the City has financial accountability. Blended component units, although legally separate entities, are, in substance, part of the primary government’s operations and are included as part of the primary government. Accordingly, the Economic Development Authority (EDA) is reported as special revenue fund of the primary government and the Housing and Redevelopment Authority (HRA) reports a debt service fund and a capital projects fund within the primary government. The City provides a full range of municipal services, including: police and fire protection, culture and recreation, public improvements, street maintenance, sanitary and storm sewer collection, water distribution, planning, zoning and building inspection services, and general administrative services. ECONOMIC OUTLOOK The City is a nearly fully developed community with little vacant land available for development. The City has a good mix of single/multi-family residential housing stock, parks and open space, and a strong commercial/industrial tax base. There are approximately 520 commercial/industrial/service businesses in the City, and the major employers are listed as follows: Major Employers Products/Services New Hope Based Employees (Total Employees) Independent School District No. 281 Education 631 (1,792) Minnesota Masonic Home/ North Ridge Care Center Skilled nursing care facility 560 Hy-Vee, Inc. Grocery and convenience store 370 Horwitz Mechanical contractor 348 City of New Hope Government 338 Padagis Pharmaceutical and medicine manufacturing 315 St. Therese Home, Inc. Skilled nursing care facility 286 (787) YMCA Health club 228 Liberty Diversified International Stationery supplies 200 Intermediate District No. 287 Education 199 (791) The City has four major industrial park areas, including Science Industry Park, 49th and Quebec Avenues, Winnetka Avenue area between 32nd and 36th Avenues, and north of Medicine Lake Road on Nevada Avenue. The major shopping centers/areas in the City include: Midland Shopping Center, Winnetka Commons Shopping Center, New Hope Mall, Winnetka Center, Post Haste Square, and the 42nd Avenue Redevelopment District. -iii- Business Assistance Programs Local commercial/industrial businesses are extremely important to the City. The City Council has undertaken programs and initiatives to address both commercial and industrial properties. These programs focus on: 1} retaining existing businesses, 2} assisting with expansions, 3} attracting new businesses to vacant available buildings, 4} attracting new construction to a limited number of available vacant sites, and 5} improving communication with businesses and responding more effectively to business concerns and inquiries. The City Council has continued the Outstanding Business Award Program initiated in 2006, to recognize the City’s businesses’ contributions to the local community. In 2009, the Business Networking Group forum was established to share information and improve communications between businesses and the City and the forum continued through 2022. The City is also a long-time member of the TwinWest Chamber of Commerce. The City has also partnered with Hennepin County and Open to Business, a company that provides free business advice and also provides gap financing. In 2022, $17,602,045 of reinvestment was approved in the City in construction permits. The City will work to increase the momentum to continually expand the tax base while continuing to provide the high level of services delivered to the residents, businesses, and property owners of the City. PLANNING AND DEVELOPMENT The following planning and development activities occurred in 2022: Windsor Ridge SVK Development constructed 32 new single-family homes on an 8.7-acre undeveloped site that was owned by the City for many years. In the fall of 2018, the City received six proposals from four developers for the site. After careful consideration, SVK Development was selected as the preferred developer for the site. SVK Development constructed 32 single-family homes on 65-foot-wide lots. All of the homes sold shortly after construction for an average price of $430,000. The project added a total of $13.76 million in housing value to the City. Hy-Vee Aisles Online In 2021, the City Council approved an amendment to Hy-Vee’s Planned Unit Development for the construction of a 1,200 square-foot drive-thru kiosk on the west side of the grocery store. This included four drive through grocery pick-up lanes with an overhead canopy, new curbing, and landscaping around the building. Customers purchase their groceries online and drive to the kiosk to pick them up. The groceries are delivered directly to the kiosk from the main Hy-Vee store. Although the kiosk was in use in late 2021, the project was completed, including the final landscaping, in the spring of 2022. Escuela Exitos In April of 2021, the City Council approved a Conditional Use Permit for Escuela Exitos to open a Spanish Immersion school at 4741 Zealand Avenue North. The kindergarten through 5th grade charter school is a two-way dual language Spanish/English immersion school. The school served approximately 165 students during the 2021–2022 school year with planned enrollment increasing and capping out at 390 students by the 2023–2024 school year. The school also plans to add one grade each year until they have 12th grade students, this way the school will grow organically with students who are already attending. The last of the exterior projects, including new signage, a new playground, and new fencing were completed in the early summer of 2022. Pallet One, MN Pallet One, MN moved to 9210 Science Center Drive in New Hope in June of 2022. Pallet One, MN is one of the largest new pallet manufacturers in the United States, as well as one of the largest pallet recyclers in the country. The company obtained a Conditional Use Permit for the storage of trailers in an open outdoor storage area shortly after purchasing the building. Improvements to the site included new screening measures, pavement, and curbing. -iv- Housing The City’s commitment to maintaining its housing stock is supported through a variety of cooperative projects and programs. Approximately $7,246,433 was reinvested in the City’s housing stock in 2022 for private home construction, additions, and/or remodeling projects. 1. Housing rehabilitation programs: a. Community Development Block Grant (CDBG) Housing Rehabilitation Program – administered by Hennepin County: i. CDBG funded activity in 2021 continued with the expenditure of previously allocated CDBG funds. The City contributed $76,250 in funds towards the acquisition of 8720 47th Avenue North by Habitat for Humanity. The home was rehabilitated in 2021. Funds in 2022 were allocated to the county’s home rehab program, which offers deferred loans for home repairs and maintenance to income-qualified residents of the City. ii. The City continued to operate its scattered site housing program by acquiring multiple properties for demolition and new construction. Since 2014, the Economic Development Authority has acquired 21 properties, resulting in the creation of 26 vacant lots. Five of the lots were large enough to split into two buildable lots and were sold to developers for the construction of new single-family, owner-occupied homes. The City has two other properties under contract for purchase. These projects have increased property values by more than $5 million and brought additional step-up housing options to the City. The primary focus of the program is to target distressed single-family properties throughout the City, with the goal of improving residential neighborhoods. b. Rehabilitation and resell: i. The City has purchased two distressed properties for rehabilitation in the last six years. The City chose to rehabilitate the home at 3984 Zealand Avenue North as it was too valuable to demolish. It sold for $295,000 in 2018. The City acquired the property at 3924 Utah Avenue North in 2018, and coordinated a rehabilitation project valued at more than $180,000. The home sold for $375,000 in 2020. The City has a goal of breaking even on such projects and will invest all available resources into the home to create the highest valued product possible. c. Curbside Appeal Reimbursement Program: i. The curbside appeal reimbursement program launched in the summer of 2022 to help single- and two-family residential property owners with making upgrades to the exterior of their homes in areas that are visible from the street. The program reimburses property owners for 25 percent of eligible project costs with a maximum reimbursement of $5,000. Goals of the program are to improve the City’s overall housing stock, instill confidence into neighborhoods, and increase home values. To date, 13 projects with a combined value of about $120,000 have been approved. 2. Housing maintenance programs: a. Code compliance inspections – 1,124 inspections completed in 2022. b. Rental housing program and inspections: i. A rental registration permit program, which requires the registration and inspection of all rental units in the City, was implemented in 2006 for single-family and 2007 for multi-family units. ii. A total of 501 single-family rental units are registered with the City. iii. A total of 3,857 multi-family rental units are registered with the City. c. Multi-Family Property Manager’s Association – quarterly meetings. d. Partnership with Center for Energy and Environment and Hennepin County for fix-up loans and grants. 3. Metropolitan Council Livable Communities Act – annually renewed by the City. -v- PARKS AND RECREATION The City continues to provide residents with a vast array of park amenities and recreation opportunities at an affordable cost. In 2022, staff continued to maintain 18 parks, four additional school district parks (summer only), two sheets of indoor ice at the ice arena, and a par 3 nine-hole golf course. In addition, the City has programs at the New Hope Community Gyms during non-school time. As the year progressed, more and more people were comfortable participating in programs and special events. The number of recreation program registrations increased 6 percent over 2021 to 6,867 registrations, and special event participation saw an increase of approximately 44 percent. The most popular programs continued to be the youth dance and gymnastics classes, but other well received programs included sports camps/classes, art classes, playgrounds, piano/guitar lessons and others. Offerings at the performance center continued to include the summer musicals, movies and music in the park, theater classes, and other special events. During 2022, several park projects took place, including the replacement of the playground at Hidden Valley Park, court resurfacing of the basketball court at Lions Park, and crack filling of the basketball court at Liberty Park. Several smaller projects took place, including engineer wood fiber refresh at several playgrounds, new picnic tables at the pavilion at Hidden Valley Park, display boards at Hidden Valley and Civic Center parks, two new portable enclosures at Civic Center Park, an additional bike rack at the Aquatic Park, and new park signage at Elm Grove, Holiday, Liberty, Lighted, and Hidden Valley parks. During the 2021–2022 winter season, parks staff continued to plow a section of trail at Hidden Valley, Northwood, Lions, and Meadow Lake parks, with Civic Center Park being added in the fall of 2021. Outdoor skating areas at Hidden Valley, Lions, and Liberty parks were maintained. Buckthorn removal was continued in several parks and an extensive number of ash trees infected with emerald ash borer were removed. The second season at the Aquatic Park was successful and was open June 4, 5 and June 9–August 21. Open swim hours were available during the week from 1–8 p.m. and on the weekends from 11 a.m.–7 p.m. The open swim attendance in 2022 was 49,337 (not including ages under 2). On June 20th, the pool set a single day attendance record with 1,813 guests during a hot 102-degree day. In the mornings, swim lessons, water walking, and lap swimming took place. Weekday mornings were also when the 50-meter pool was utilized by various swim teams. The New Hope Crystal Plymouth (NHCP) swim club, along with other local clubs used the 50-meter pool for practices and swim meets. Over the summer, the NHCP swim club held three separate meets, including a 3-day all-day regional meet in the middle of July. The staffing levels increased to a much more comfortable level allowing the pool to operate more efficiently and safely. Throughout the summer, approximately 90 employees worked at the pool, with 42 returning from 2021. With the lifeguard staffing reaching normal levels, the Wibit (inflatable platforms) was able to be used on the weekends and was extremely popular. The ice arena once again offered year-round use of ice time for youth, adult recreational, league hockey and skating lessons. Facility use and program participation numbers were strong. Rented ice hours were 4,247, which was a decrease of 169 hours from 2021 (due in part from the hockey season extended into April 2021 and the north rink ice being out for several weeks in 2022), open skating increased by 39 percent (2,283), skate rentals increased by 76 percent (857) and skate lesson registrations increased by 13 percent (220). Improvement projects included the replacement of the dasher boards and glass for the north ice arena and the continuation of the cameras and door security project. Other repairs were completed, including replacement of the motor, VFD and sensor for the air handler in the community room, replacement of several door closers and locks, purchased new blades for the Zamboni’s and the drywall in both main entrances was repaired. The advertising agreement and concession stand agreement with the Armstrong Cooper Youth Hockey Association and the dryland training agreement with Charleston Overspeed all continued. The Golf Course continued to offer leagues, lessons, tournaments, open golf, and picnic rentals. It was another busy year for the golf course, although the course didn’t open until April 8 and closed November 10. Rounds from March through May were down from the previous two years because of the cold weather, but June, July, August, and October were slightly above 2021 in rounds, with September just about even. League participation and equipment rentals numbers were good, and the merchandise and concession sales remained strong; with all exceeding budgeted amounts. The number of clubhouse rentals and tournaments also increased from 2021. For the second year in a row, staff dealt with drought conditions, but the course remained in good shape, due to all of the additional watering. In 2022, HVAC in the clubhouse was replaced, some changes were made to concession equipment in the clubhouse – a new 1-keg dispenser was added, the 3-keg dispenser was replaced with a 4-keg dispenser, and the ice machine and drinking fountain were both replaced. A golf course utility cart was purchased, and the golf cart lease continued. The parking agreement with Ironwood Apartments continued. -vi- PROPERTY TAX PROCESS Preliminary tax levies have to be sent to the county auditor by September 30th. This levy can be lowered at a later date, but cannot be increased. The county sends out notices to all property owners informing them of proposed property taxes and the dates of public hearings by the various taxing districts. The final budget is adopted by the City in December at a City Council meeting after the public hearing. OTHER PERTINENT INFORMATION Independent Audit – As required by Minnesota Statutes, city policy requires an annual audit of all city accounts to be made by independent certified public accountants selected by the City Council. This requirement has been complied with and the opinion of Malloy, Montague, Karnowski & Radosevich & Co., P.A. (MMKR) is included with this report. Claims and Litigation – The City had the usual and customary types of miscellaneous claims pending at year-end, mostly of a minor nature and entirely covered by insurance carried for that purpose. Long-Term Financial Planning – Management provided an updated long-term plan to the City Council in 2022 that highlights the tax effect of major capital and operating decisions. This is an important document when preparing future budgets. AWARDS AND ACKNOWLEDGEMENTS The Certificate of Achievement for Excellence in Financial Reporting – The GFOA of the United States and Canada awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its ACFR for the fiscal year ended December 31, 2021. This was the 14th consecutive year that the government has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized ACFR. This report 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 that our current ACFR continues to meet the Certificate of Achievement Program’s requirements and we are submitting it to the GFOA of the United States and Canada to determine its eligibility for another certificate. Preparation of this report could not have been accomplished without the professional, efficient, and dedicated services of the entire staff of the Department of Finance, Abdo Financial Solutions, LLC (the City’s contracted finance director) other city departments, and the staff of MMKR. We wish to express our appreciation to all the contributors for their efforts to complete this report. Respectfully submitted, Tim Hoyt Acting City Manager Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of New Hope Minnesota For its Annual Comprehensive Financial Report For the Fiscal Year Ended December 31, 2021 Executive Director/CEO -vii- City of New HopeMay 2023Parks & RecreationRecreationParksRecreation FacilitiesForestryPolice   Patrol   Investigation   Community Services   Animal Control   Crime Prevention   School Liaison   Reserves   ExplorersPublic WorksUtility BillingUtilitiesCentral GarageStreetsParks MaintenanceHuman Resources / Administrative ServicesHuman ResourcesSafetyInfo TechnologyCommunicationsRisk Mgmt/InsuranceFinance/AccountingPayrollCommunity DevelopmentInspectionsPermitsHousingEconomic DevelopmentPlanning/ZoningPlanning CommissionCitizen Advisory CommissionHuman Rights CommissionPersonnel BoardCity AttorneySteve Sondrall/Stacy WoodsCity EngineerStantecFiscal AdvisorsAbdoDorsey and WhitneyEhlersKennedy & GravenWest Metro Fire‐Rescue DistrictFire SuppressionFire PreventionEmergency Mgmt. Coord.RescueExplorersCity CouncilPolicyEDA BoardHRA BoardCity ManagerChief AdministratorGovernment RelationsBudgetCouncil RelationsEmergency ManagementFire BoardEDA Executive DirectorHRA Executive DirectorAuditJWC CommissionHRG RepresentativeAbdo ContractCity Clerk/TreasurerCouncil RelationsElectionsLicensingInsuranceCity Hall FacilityResidentsCity PlannerAlan Brixius-viii- -ix- Term Expires Kathi Hemken Mayor 12/31/2024 John Elder Councilmember 12/31/2026 Andrew Hoffe Councilmember 12/31/2024 Michael Isenberg Councilmember 12/31/2024 Jonathan London Councilmember 12/31/2026 Tim Hoyt Acting City Manager Appointed Rich Johnson Director of Human Resources and Administrative Services Appointed Jeff Sargent Director of Community Development Appointed Susan Rader Director of Parks and Recreation Appointed Tim Hoyt Chief of Police Appointed Bernie Weber Director of Public Works Appointed Valerie Leone City Clerk Appointed CITY COUNCIL CITY OFFICIALS CITY OF NEW HOPE HENNEPIN COUNTY, MINNESOTA City Council and City Officials Year Ended December 31, 2022 THIS PAGE INTENTIONALLY LEFT BLANK FINANCIAL SECTION CITY OF NEW HOPE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2022 THIS PAGE INTENTIONALLY LEFT BLANK -1- INDEPENDENT AUDITOR’S REPORT To the City Council and Management City of New Hope, Minnesota OPINIONS We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of New Hope, Minnesota (the City) as of and for the year ended December 31, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City at December 31, 2022, and the respective changes in financial position and, where applicable, cash flows thereof, and the budgetary comparisons for the General Fund and Economic Development Authority Special Revenue Fund for the year then ended, in accordance with accounting principles generally accepted in the United States of America. BASIS FOR OPINIONS We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City 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. EMPHASIS OF MATTER Change in Accounting Principle As described in Note 1 to the basic financial statements, in fiscal 2022, the City adopted new accounting guidance, Governmental Accounting Standards Board (GASB) Statement No. 87, Leases. Our opinion is not modified with respect to this matter. (continued) C E R T I F I E D A C C O U N T A N T S P UBLIC PRINCIPALS Thomas A. Karnowski, CPA Paul A. Radosevich, CPA William J. Lauer, CPA James H. Eichten, CPA Aaron J. Nielsen, CPA Victoria L. Holinka, CPA/CMA Jaclyn M. Huegel, CPA Kalen T. Karnowski, CPA Malloy, Montague, Karnowski, Radosevich & Co., P.A. 5353 Wayzata Boulevard • Suite 410 • Minneapolis, MN 55416 • Phone: 952-545-0424 • Fax: 952-545-0569 • www.mmkr.com Standard Letterhead-r2.qxp_167639 Letterhead-RV1 9/7/18 6:34 PM Page 1 -2- RESPONSIBILITIES OF MANAGEMENT FOR THE FINANCIAL STATEMENTS Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for 12 months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance, but is not absolute assurance and, therefore, is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with generally accepted auditing standards and 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 the City’s internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit. (continued) -3- REQUIRED SUPPLEMENTARY INFORMATION Accounting principles generally accepted in the United States of America require that the management ’s discussion and analysis and the required supplementary information (RSI), 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 GASB, who considers it to be an essential part of financial reporting for placing the basic fin ancial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the RSI in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. SUPPLEMENTARY INFORMATION Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying combining and individual fund financial statements and schedules, as listed in the table of contents, are presented for the purpose 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 r ecords 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 supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. OTHER INFORMATION Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections, but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. OTHER REPORTING REQUIRED BY GOVERNMENT AUDITING STANDARDS In accordance with Government Auditing Standards, we have also issued our report dated June 13, 2023 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements, and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City ’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance. Minneapolis, Minnesota June 13, 2023 THIS PAGE INTENTIONALLY LEFT BLANK CITY OF NEW HOPE Management’s Discussion and Analysis Year Ended December 31, 2022 -4- As management of the City of New Hope, Minnesota (the City), we have provided readers of the City’s financial statements with this narrative overview and analysis of the financial activities of the City for the fiscal year ended December 31, 2022. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, located earlier in this report. FINANCIAL HIGHLIGHTS • The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $100,927,731 (net position). Of this amount, $30,306,053 (unrestricted net position) may be used to meet the City’s ongoing obligations to citizens and creditors. • The City’s total net position increased by $4,854,216. This was a result of governmental activities and business type activities increasing net position by $2,354,713 and $2,499,503, respectively. • As of the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $31,403,877, an increase of $1,349,091 in comparison with the prior year. Approximately 18.3 percent of this total amount, $5,750,212, is available for spending at the City’s discretion (unassigned fund balance). • At the end of the current fiscal year, unassigned fund balance for the General Fund was $7,655,481, or 43.8 percent, of total General Fund 2022 expenditures and transfers out. • The City’s total bonded debt decreased by $3,522,412 (7.2 percent) during the current fiscal year. • The City implemented Governmental Accounting Standards Board (GASB) Statement No. 87, Leases, in fiscal 2022. This standard changed the way lease transactions are reported by the City. Implementation resulted in the reporting of new lease receivables and related deferred inflows of financial resources for certain agreements where the City is the lessor, and new “r ight-to-use” leased assets and related lease liabilities for certain agreements where the City is the lessee. However, implementation did not result in the restatement of beginning net position or fund balances. OVERVIEW OF THE FINANCIAL STATEMENTS The management’s discussion and analysis is intended to serve as an introduction to the City’s basic financial statements, which are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to basic financial statements. This report also contains other supplementary information in addition to the basic financial statements. The financial statements include notes that explain some of the information in the financial statements and provide more detailed data. The statements are followed by a section of combining and individual fund financial statements and schedules, which further explain and support the information in the financial statements. -5- Figure A shows how the various parts of this annual report are arranged and related to one another: Management’s Discussion and Analysis Basic Financial Statements Required Supplementary Information Government-Wide Financial Statements Fund Financial Statements Notes to Basic Financial Statements Summary Detail Figure A Required Components of the City’s Annual Comprehensive Financial Report Government-Wide Financial Statements – The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to private sector businesses. The Statement of Net Position presents information on all of the City’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The Statement of Activities presents information showing how the City’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (uncollected taxes and earned but unused vacation leave). Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business -type activities). The governmental activities include general government, public safety, public works, culture and recreation, economic development, and interest on long-term debt. The business-type activities of the City include sewer utility, water utility, golf course, ice arena, storm water, and street lighting. Fund Financial Statements – A fund is a grouping of related accounts that is used to maintain control over resources segregated for specific activities or objectives. The City, like other local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into two categories: governmental funds and proprietary funds. -6- 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, and the balances of spendable resources available at the fiscal year-end. Such information may be useful in evaluating a government’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental funds Balance Sheet and Statement of Revenue, Expenditures, and Changes in Fund Balances provide a reconciliation to facilitate the comparison between governmental funds and governmental activities. The City maintains several individual governmental funds. Information is presented separately in the governmental fund Balance Sheet and the governmental fund Statement of Revenues, Expenditures, and Changes in Fund Balances for the General, Economic Development Authority, HRA Construction, Street Infrastructure, Park Infrastructure, and HRA Bonds funds, all of which are considered to be major funds. Data from the remaining 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 or schedules elsewhere in this report. The City adopts annual appropriated budgets for its General Fund and the Economic Development Authority and Solid Waste Management Special Revenue Funds. A budgetary comparison statement has been provided for these funds to demonstrate compliance with the adopted budgets. Proprietary Funds – The City maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for its sewer utility, water utility, golf course, ice arena, storm water, and street lighting operations. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City’s various functions. The City uses internal service funds to account for distribution of vehicle and equipment costs, government-wide costs of insurance coverage and employee leave, and information technology cost allocation. Because all of these services predominately benefit governmental rather than business-type functions, they have been included within governmental activities in the governmental-wide financial statements. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for each of the enterprise funds, all of which are considered to be major funds of the City. 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. Notes to Basic Financial Statements – The notes to basic financial statements provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. Other Information – Required supplementary information (RSI) on the City’s other post-employment benefit and pension plans is presented following the notes to basic financial statements. Combining and individual fund statements and schedules for nonmajor funds, along with other city information, are presented as supplementary information immediately following the RSI. Statistical tables are presented as the last section in this report. The statistical section presents information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City’s overall financial health. The information in the statistical section is not audited. -7- GOVERNMENT-WIDE FINANCIAL ANALYSIS As noted earlier, changes in net position may serve over time as a useful indicator of the City’s financial condition. The City’s assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources by $100,927,731 at the end of the 2022 fiscal year. A portion of the City’s net position (60.5 percent) reflects its investment in capital assets (e.g., land, buildings, vehicles and equipment); less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be p rovided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. The following is a summary of the City’s net position at the end of the last two fiscal years: 2022 2021 2022 2021 2022 2021 Current and other assets 48,419,319$ 45,444,088$ 9,633,435$ 8,282,332$ 58,052,754$ 53,726,420$ Capital assets, net 74,538,608 74,711,410 30,312,273 29,605,378 104,850,881 104,316,788 Total assets 122,957,927 120,155,498 39,945,708 37,887,710 162,903,635 158,043,208 Deferred outflows of resources Deferred pension resources 9,447,454 5,190,055 339,118 492,108 9,786,572 5,682,163 Long-term liabilities (including current portion)56,925,345 48,059,912 7,515,980 7,773,573 64,441,325 55,833,485 Other liabilities 1,948,167 2,123,349 1,189,912 927,287 3,138,079 3,050,636 Total liabilities 58,873,512 50,183,261 8,705,892 8,700,860 67,579,404 58,884,121 Deferred inflows of resources Deferred pension resources 504,019 7,372,502 17,185 616,712 521,204 7,989,214 Lease revenue for subsequent years 3,604,466 – – – 3,604,466 – Resources received in advance 57,402 778,521 – – 57,402 778,521 Total deferred inflows of resources 4,165,887 8,151,023 17,185 616,712 4,183,072 8,767,735 Net position Net investment in capital assets 37,045,401 34,985,781 24,036,351 22,607,046 61,081,752 57,592,827 Restricted 9,539,926 8,598,311 – – 9,539,926 8,598,311 Unrestricted 22,780,655 23,427,177 7,525,398 6,455,200 30,306,053 29,882,377 Total net position 69,365,982$ 67,011,269$ 31,561,749$ 29,062,246$ 100,927,731$ 96,073,515$ Governmental Activities Business-Type Activities Total An additional portion of the City’s net position, $9,539,926, represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position, $30,306,053, may be used to meet the City’s ongoing obligations to citizens and creditors. At the end of the current fiscal year, the City is able to report a positive balance in all three categories of net position for both the governmental activities and the business-type activities. This was also the case at the previous year-end. The implementation of GASB Statement No. 87 mainly resulted in increases to current and other assets and deferred inflows of resources. Changes in the City’s proportionate share of two state-wide defined benefit pension plans administered by the Minnesota Public Employees Retirement Association contributed to the changes in long-term liabilities and deferred outflows/inflows of resources. -8- The following table summarizes the changes in the City’s net position for the last two fiscal years: 2022 2021 2022 2021 2022 2021 Revenues Program revenues Charges for services 2,734,540$ 2,335,380$ 12,807,203$ 12,681,193$ 15,541,743$ 15,016,573$ Operating grants and contributions 1,235,241 1,093,760 108,135 146,755 1,343,376 1,240,515 Capital grants and contributions 851,233 720,699 13,756 13,475 864,989 734,174 General revenues Property taxes 18,203,975 17,357,910 – – 18,203,975 17,357,910 Tax increments 2,219,677 2,118,199 – – 2,219,677 2,118,199 Franchise taxes 959,744 962,395 – – 959,744 962,395 Grants and contributions not restricted to specific programs 905,573 3,155,397 – – 905,573 3,155,397 Unrestricted investment earnings (charges)(838,869) (22,179) (292,859) 39,829 (1,131,728) 17,650 Gain on sale of capital assets 9,238 70,300 – – 9,238 70,300 Total revenues 26,280,352 27,791,861 12,636,235 12,881,252 38,916,587 40,673,113 Expenses General government 2,991,397 1,152,633 – – 2,991,397 1,152,633 Public safety 9,224,111 7,764,051 – – 9,224,111 7,764,051 Public works 4,716,237 4,295,427 – – 4,716,237 4,295,427 Culture and recreation 3,845,915 3,095,760 – – 3,845,915 3,095,760 Economic development 1,374,777 1,434,986 – – 1,374,777 1,434,986 Interest on long-term debt 1,440,518 1,518,351 – – 1,440,518 1,518,351 Sewer utility – – 3,057,860 2,973,301 3,057,860 2,973,301 Water utility – – 4,732,554 4,813,286 4,732,554 4,813,286 Golf course – – 386,668 368,659 386,668 368,659 Ice arena – – 1,176,353 1,095,343 1,176,353 1,095,343 Storm water – – 958,733 991,031 958,733 991,031 Street lighting – – 157,248 135,899 157,248 135,899 Total expenses 23,592,955 19,261,208 10,469,416 10,377,519 34,062,371 29,638,727 Change in net position before transfers 2,687,397 8,530,653 2,166,819 2,503,733 4,854,216 11,034,386 Transfers – internal activities (332,684) (336,752) 332,684 336,752 – – Change in net position 2,354,713 8,193,901 2,499,503 2,840,485 4,854,216 11,034,386 Net position Beginning 67,011,269 58,817,368 29,062,246 26,221,761 96,073,515 85,039,129 Ending 69,365,982$ 67,011,269$ 31,561,749$ 29,062,246$ 100,927,731$ 96,073,515$ TotalGovernmental Activities Business-Type Activities Governmental activities increased the City’s net position by $2,354,713 in 2022, while business-type activities increased net position by $2,499,503. Total revenues for 2022 were $1,756,526 lower than the prior year. The two largest factors in this decrease were a $2,249,824 decrease in grants and contributions not restricted to specific programs due to a nonrecurring federal grant award utilized in the prior year, and a $1,149,378 decrease in unrestricted investment earnings caused by fair value adjustments to the City’s investment portfolio. These decreases were partially offset by a $525,170 increase in charges for services, and an increase of $846,065 in property taxes. Government-wide expenses for 2022 were $4,423,644 higher than the prior year, mainly in governmental activities, with increases in employee salaries, pension benefits, maintenance and utilities, and depreciation representing some of the larger increases. -9- Governmental Activities – Governmental activities net position increased by $2,354,713. The following graphs illustrate the City’s revenues and expenses for its governmental activities: Expenses and Program Revenues – Governmental Activities $– $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 $10,000,000 General Government Public Safety Public Works Culture and Recreation Economic Development Interest and Fiscal Charges Expenses Program Revenues Revenue by Source – Governmental Activities -10- Business-Type Activities – The net position of business-type activities increased by $2,499,503. This increase was primarily the result of operating net income in the Sewer Utility, Water Utility, and Storm Water Funds of $951,263, $812,995, and $435,055, respectively. Below are the graphs showing the business-type activities revenue and expense comparisons: Expenses and Program Revenues – Business-Type Activities $– $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 $5,000,000 $5,500,000 $6,000,000 $6,500,000 Sewer Utility Water Utility Golf Course Ice Arena Storm Water Street Lighting Expenses Program Revenues Revenue by Source – Business-Type Activities -11- FINANCIAL ANALYSIS OF THE CITY’S FUNDS Governmental Funds The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the City’s governmental funds had combined ending fund balances of $31,403,877, an increase of $1,349,091 in comparison with the prior year. Approximately 18.3 percent of this total amount, $5,750,212, constitutes unassigned fund balance, which is available for spending at the City’s discretion. The remainder of fund balance is either not available for new spending, or available for new spending, but limited in use, because it is either 1) nons pendable ($12,957), 2) restricted ($10,602,043), 3) committed ($4,724,303), or 4) assigned ($10,314,362). General Fund – The fund balance of the General Fund decreased by $925,671 to $7,748,072 at December 31, 2022. Unassigned fund balance represents 43.8 percent of total 2022 expenditures and other financing uses. The decrease in fund balance was mainly due to transferring out $1,142,382 of fund balance accumulated in prior years to finance capital improvements. Fund balance was also influenced by the negative fair value adjustments recognized on the City’s investment portfolio, and higher than anticipated street maintenance and snow removal costs. Economic Development Authority – Fund balance decreased by $121,351 in 2022, due to economic development expenditures exceeding revenues in the current year. The year-end fund balance of $4,333,830 is committed for economic development projects. HRA Construction – This fund accounts for capital improvement activity within the City’s tax increment financing (TIF) districts, less resources accumulated elsewhere for TIF-related long-term obligations. Fund balance increased by $673,709, which is primarily result of increased tax increment revenues from improvements. Street Infrastructure – This fund accounts for capital outlay expenditures related to street infrastructure. Fund balance increased $214,434, ending the year at $1,370,801. The increase was a result of revenues exceeding current year project costs and transfers out. Park Infrastructure – This fund accounts for capital outlay expenditures related to park improvements. Fund balance increased $91,649, ending the year at $1,604,089. The increase was a result of revenues exceeding current year project costs and transfers out. HRA Bonds – The increase in fund balance of $72,764 is primarily related to tax increment revenues exceeding debt service requirements and other expenditures in the fund. The year-end fund balance deficit of $1,905,269 is expected to be eliminated through future tax increment revenues. Proprietary Funds – The City’s proprietary funds provide the same information for the business-type activities found in the government-wide financial statements, but in more detail. The City’s enterprise funds had a total net position of $31,949,744 at year-end, of which $7,913,393 was unrestricted. The total net position of these funds improved by $2,389,438 during 2022. The primary factors concerning the finances of these funds have already been addressed in the discussion of the City’s business-type activities. -12- General Fund Budgetary Highlights The City’s General Fund budget was not amended during the year. Actual revenues were under budget by $141,223 and expenditures were over budget by $154,209. Revenue line items with significant budget variances include the following: • Intergovernmental revenue was over budget by $105,199, due to highway maintenance state aid and other small grants exceeding the City’s conservative budget. • Investment earnings (charges) were $311,964 under budget, due to market conditions and the resulting adjustments to the fair values of the City’s investments. The City typically holds investments to maturity, so these unrealized losses are expected to ultimately be recovered. Expenditure line items with significant budget variances include the following: • General government expenditures were over budget by $94,099, mainly in higher than anticipated City Hall maintenance, election, and legal costs. • Public safety expenditures were under budget by $252,804, mostly in personnel services for the police department, due to vacant positions. • Public works expenditures were over budget by $271,808, primarily in contracted street maintenance and snow removal costs. The City Council approved unbudgeted transfers of $500,000 into the General Fund in 2022 to provide funding for an Emerald Ash Borer abatement program. The City Council also approved $1,142,382 of unbudgeted transfers out of fund balance accumulated in the prior year to internally finance capital improvements. -13- CAPITAL ASSETS AND LONG-TERM LIABILITIES Capital Assets – The City’s investment in capital assets (net of accumulated depreciation/amortization) for its governmental and business-type activities as of December 31, 2022 was $104,850,881, an increase of $534,093 from the prior year. The City’s capital assets for the last two years are as follows: 2022 2021 2022 2021 2022 2021 Land 994,268$ 994,268$ 485,042$ 485,042$ 1,479,310$ 1,479,310$ Construction in progress 5,114,079 23,726,228 910,625 1,598,507 6,024,704 25,324,735 Buildings and structures 25,408,669 25,408,669 10,797,364 10,797,364 36,206,033 36,206,033 Vehicles and equipment 11,527,771 11,383,148 3,302,582 3,065,892 14,830,353 14,449,040 Improvements other than buildings 68,765,224 47,294,718 31,201,746 28,992,200 99,966,970 76,286,918 Leased vehicles and equipment 328,079 – 14,300 – 342,379 – Less accumulated depreciation/amortization (37,599,482) (34,095,621) (16,399,386) (15,333,627) (53,998,868) (49,429,248) Net total 74,538,608$ 74,711,410$ 30,312,273$ 29,605,378$ 104,850,881$ 104,316,788$ Governmental Activities Business-Type Activities Total The City completed a number of large projects in 2022, including a new pool and waterpark facility, and various street improvements. Projects that remain in progress at the current year -end include 2022 street infrastructure improvements and an addition to the City’s public works facility. Additional details of the City’s capital asset activity for the year can be found in Note 6 of the notes to basic financial statements. Long-Term Liabilities – The City’s long-term liabilities for the last two years are as follows: 2022 2021 2022 2021 2022 2021 G.O. bonds 34,618,361$ 36,866,522$ 4,409,426$ 4,897,991$ 39,027,787$ 41,764,513$ G.O. tax increment bonds 4,809,530 5,354,862 1,112,308 1,210,406 5,921,838 6,565,268 G.O. revenue bonds and notes – – 747,679 889,935 747,679 889,935 Leases payable 267,315 112,376 6,509 – 273,824 112,376 Compensated absences 863,013 875,089 – – 863,013 875,089 Net pension liability 15,666,564 4,051,787 1,126,701 670,982 16,793,265 4,722,769 OPEB liability 700,562 799,276 113,357 104,259 813,919 903,535 Total 56,925,345$ 48,059,912$ 7,515,980$ 7,773,573$ 64,441,325$ 55,833,485$ TotalGovernmental Activities Business-Type Activities The City’s total general obligation bonded debt outstanding was $45,697,304 at year -end, which decreased $3,522,412 in 2022, due to scheduled debt service payments and no new bond issues. The debt service funds account for the accumulation of resources to finance the City’s governmental activity general obligation debt. The revenue sources for these funds include annual tax levies, tax increments, franchise taxes, and special assessments. At year-end, there was $3,323,035 of fund balance restricted for debt service in the governmental funds. The G.O. revenue bonds and notes will be paid from the designated business activity from Ice Arena, Sewer Utility, Water Utility, and Storm Water Funds. After the implementation of GASB Statement No. 87, the City is reporting leases payable for various vehicles and equipment of $273,824 at year-end. The City maintained an “AA” rating on its debt from Standard & Poor’s. Additional details of long-term debt activity for the year can be found in Note 7 of the notes to basic financial statements. The City’s long-term liabilities also include various employee benefits, such as compensated absences, pensions, and other post-employment benefits. These liabilities are primarily paid from the City’s General Fund and proprietary funds. Additional information related to these employee benefit liabilities can be found in Notes 9 and 11 of the notes to basic financial statements. -14- ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES Economic factors affect the preparation of annual budgets. The following factors were considered in preparing the 2023 budget: • User charges have been increased to account for various utility improvements scheduled for 2023 and beyond. • The tax levy increased by 4.51 percent for 2023. • Management provided a long-term plan to City Council in November that highlighted the tax effect of major capital and operating decisions. This will be an important document when preparing future budgets. REQUESTS FOR INFORMATION This Annual Comprehensive Financial Report is designed to provide a general overview of the City’s finances for all those with an interest in the City’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Department of Finance, City of New Hope, 4401 Xylon Avenue North, New Hope, Minnesota 55428. THIS PAGE INTENTIONALLY LEFT BLANK GOVERNMENT-WIDE FINANCIAL STATEMENTS CITY OF NEW HOPE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2022 THIS PAGE INTENTIONALLY LEFT BLANK Governmental Business-Type Activities Activities Total Assets Cash and temporary investments 40,616,126$ 8,696,734$ 49,312,860$ Receivables Taxes 291,248 – 291,248 Accrued interest 42,585 – 42,585 Accounts 293,188 1,527,096 1,820,284 Loans 302,211 – 302,211 Leases 3,685,831 – 3,685,831 Special assessments 427,404 186,008 613,412 Internal balances 1,047,508 (1,047,508) – Due from other governments 208,776 45,795 254,571 Inventories 70,180 56,801 126,981 Prepaid items 12,957 – 12,957 Investment in joint ventures 874,330 168,509 1,042,839 Land held for resale 546,975 – 546,975 Capital assets Not depreciated/amortized 6,108,347 1,395,667 7,504,014 Depreciated/amortized, net 68,430,261 28,916,606 97,346,867 Total assets 122,957,927 39,945,708 162,903,635 Deferred outflows of resources Deferred pension resources 9,447,454 339,118 9,786,572 Liabilities Accrued salaries payable 518,582 64,152 582,734 Accounts and contracts payable 805,952 286,220 1,092,172 Due to other governments 48,268 785,924 834,192 Accrued interest payable 546,120 51,410 597,530 Deposits payable 15,445 2,206 17,651 Unearned revenue 13,800 – 13,800 Noncurrent liabilities Due within one year 2,918,315 680,734 3,599,049 Due in more than one year 37,639,904 5,595,188 43,235,092 Net pension liability – due in more than one year 15,666,564 1,126,701 16,793,265 OPEB liability – due in more than one year 700,562 113,357 813,919 Total liabilities 58,873,512 8,705,892 67,579,404 Deferred inflows of resources Deferred pension resources 504,019 17,185 521,204 Lease revenue for subsequent years 3,604,466 – 3,604,466 Resources received in advance 57,402 – 57,402 Total deferred inflows of resources 4,165,887 17,185 4,183,072 Net position Net investment in capital assets 37,045,401 24,036,351 61,081,752 Restricted for Economic development 6,628,845 – 6,628,845 Debt service 2,776,915 – 2,776,915 Public safety police expenses 128,930 – 128,930 Ice arena 5,236 – 5,236 Unrestricted 22,780,655 7,525,398 30,306,053 Total net position 69,365,982$ 31,561,749$ 100,927,731$ December 31, 2022 CITY OF NEW HOPE Statement of Net Position See notes to basic financial statements -15- Operating Capital Charges for Grants and Grants and Expenses Services Contributions Contributions Governmental activities General government 2,991,397$ 210,258$ 365,087$ –$ Public safety 9,224,111 1,064,683 519,327 – Public works 4,716,237 254,108 304,014 799,438 Culture and recreation 3,845,915 1,205,491 46,813 51,795 Economic development 1,374,777 – – – Interest on long-term debt 1,440,518 – – – Total governmental activities 23,592,955 2,734,540 1,235,241 851,233 Business-type activities Sewer utility 3,057,860 4,026,715 1,359 – Water utility 4,732,554 5,850,384 49,924 13,756 Golf course 386,668 453,222 264 – Ice arena 1,176,353 919,818 11,959 – Storm water 958,733 1,378,944 44,629 – Street lighting 157,248 178,120 – – Total business-type activities 10,469,416 12,807,203 108,135 13,756 Total 34,062,371$ 15,541,743$ 1,343,376$ 864,989$ General revenues Taxes Property taxes Tax increments Franchise taxes Grants and contributions not restricted to specific programs Unrestricted investment earnings (charges) Gain on sale of capital assets Transfers – internal activities Total general revenues and transfers Change in net position Net position, January 1 Net position, December 31 Functions/Programs Program Revenues CITY OF NEW HOPE Statement of Activities Year Ended December 31, 2022 See notes to basic financial statements -16- Governmental Business-Type Activities Activities Total (2,416,052)$ –$ (2,416,052)$ (7,640,101) – (7,640,101) (3,358,677) – (3,358,677) (2,541,816) – (2,541,816) (1,374,777) – (1,374,777) (1,440,518) – (1,440,518) (18,771,941) – (18,771,941) – 970,214 970,214 – 1,181,510 1,181,510 – 66,818 66,818 – (244,576) (244,576) – 464,840 464,840 – 20,872 20,872 – 2,459,678 2,459,678 (18,771,941) 2,459,678 (16,312,263) 18,203,975 – 18,203,975 2,219,677 – 2,219,677 959,744 – 959,744 905,573 – 905,573 (838,869) (292,859) (1,131,728) 9,238 – 9,238 (332,684) 332,684 – 21,126,654 39,825 21,166,479 2,354,713 2,499,503 4,854,216 67,011,269 29,062,246 96,073,515 69,365,982$ 31,561,749$ 100,927,731$ Net (Expenses) Revenues and Changes in Net Position -17- THIS PAGE INTENTIONALLY LEFT BLANK FUND FINANCIAL STATEMENTS CITY OF NEW HOPE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2022 9001 9015/9501 9213-9228 9203 Economic Development HRA Street General Authority Construction Infrastructure Assets Cash and temporary investments 7,619,935$ 1,975,718$ 5,784,876$ 1,845,962$ Receivables Taxes 284,481 – 6,700 – Accrued interest 17,299 – – – Accounts 252,582 3,617 – – Loans – 234,500 – – Leases – – – – Special assessments 48,721 – – 328,823 Due from other governments 154,932 – – 53,844 Prepaid items 12,957 – – – Due from other funds 9,513 – – – Advances to other funds – 1,590,242 2,065,497 – Land held for resale – 546,975 – – Total assets 8,400,420$ 4,351,052$ 7,857,073$ 2,228,629$ Liabilities Accrued salaries payable 334,839$ 10,676$ –$ –$ Accounts and contracts payable 146,717 4,078 – 171,603 Due to other governments 26,210 599 – – Deposits payable 6,317 1,869 – – Due to other funds – – – 75,000 Advances from other funds – – 1,228,228 225,000 Unearned revenue – – – – Total liabilities 514,083 17,222 1,228,228 471,603 Deferred inflows of resources Unavailable revenue – taxes 90,387 – – – Unavailable revenue – special assessments 47,878 – – 328,823 Lease revenue for subsequent years – – – – Resources received in advance – – – 57,402 Total deferred inflows of resources 138,265 – – 386,225 Fund balances (deficit) Nonspendable 12,957 – – – Restricted – – 6,628,845 – Committed 79,634 4,333,830 – – Assigned – – – 1,370,801 Unassigned 7,655,481 – – – Total fund balances (deficit)7,748,072 4,333,830 6,628,845 1,370,801 Total liabilities, deferred inflows of resources, and fund balances 8,400,420$ 4,351,052$ 7,857,073$ 2,228,629$ CITY OF NEW HOPE Balance Sheet Governmental Funds December 31, 2022 See notes to basic financial statements -18- 9233 9117-9121 Other Total Park Governmental Governmental Infrastructure HRA Bonds Funds Funds 1,534,003$ 522,175$ 10,865,953$ 30,148,622$ – 67 – 291,248 25,286 – – 42,585 – – 26,478 282,677 – – 67,711 302,211 3,685,831 – – 3,685,831 – – 49,860 427,404 – – – 208,776 – – – 12,957 – – 75,000 84,513 – – 875,000 4,530,739 – – – 546,975 5,245,120$ 522,242$ 11,960,002$ 40,564,538$ –$ –$ –$ 345,515$ 22,765 – 272,436 617,599 – – 20,788 47,597 – – – 8,186 – – – 75,000 – 2,427,511 – 3,880,739 13,800 – – 13,800 36,565 2,427,511 293,224 4,988,436 – – – 90,387 – – 43,269 419,970 3,604,466 – – 3,604,466 – – – 57,402 3,604,466 – 43,269 4,172,225 – – – 12,957 – – 3,973,198 10,602,043 – – 310,839 4,724,303 1,604,089 – 7,339,472 10,314,362 – (1,905,269) – 5,750,212 1,604,089 (1,905,269) 11,623,509 31,403,877 5,245,120$ 522,242$ 11,960,002$ 40,564,538$ -19- THIS PAGE INTENTIONALLY LEFT BLANK Total fund balances – governmental funds 31,403,877$ Amounts reported for the governmental activities in the Statement of Net Position are different because: Cost of capital assets 97,806,151 Less accumulated depreciation/amortization (26,836,737) Bonds payable (37,155,868) Plus unamortized bond premiums (2,272,023) Net pension liability (15,356,454) Internal service fund net position included in governmental activities 11,695,647 Internal balances for internal services used by business-type activities 387,995 Taxes 90,387 Special assessments 419,970 Deferred outflows of pension resources 9,354,116 Deferred inflows of pension resources (499,289) (546,120) 874,330 Total net position – governmental activities 69,365,982$ CITY OF NEW HOPE Reconciliation of the Balance Sheet to the Statement of Net Position Governmental Funds December 31, 2022 Capital assets used in governmental activities are not financial resources and,therefore,are not reported as assets in governmental funds. Internal service funds are used by management to charge certain costs of services to individual funds. The assets and liabilities are included in the Statement of Net Position. The City’s investment in a joint venture is not a current financial resource and,therefore,is not reported as an asset in the governmental funds, but is included in the Statement of Net Position. Governmental funds do not report long-term amounts related to pensions. Governmental funds do not report a liability for accrued interest until due and payable. Some receivables are not available soon enough to pay for the current period’s expenditures and, therefore, are reported as unavailable revenue in the funds. Noncurrent liabilities, including bonds payable, are not due and payable in the current period and, therefore, are not reported as liabilities in the funds. Noncurrent liabilities at year-end consist of: See notes to basic financial statements -20- 9001 9015/9501 9213-9228 9203 Economic Development HRA Street General Authority Construction Infrastructure Revenues Taxes Property taxes 11,391,654$ 574,905$ –$ 1,617,735$ Tax increments – – 1,523,492 – Franchise taxes 519,744 – – 440,000 Licenses and permits 346,871 – – – Intergovernmental 1,629,741 – – 771,119 Charges for services 1,840,627 – – – Fines and forfeitures 187,219 – – – Special assessments 29,868 1,636 – 95,952 Investment earnings (charges)(261,964) (7,822) 173,975 (85,738) Miscellaneous 52,168 – – – Total revenues 15,735,928 568,719 1,697,467 2,839,068 Expenditures Current General government 2,422,919 – – – Public safety 8,915,107 – – – Public works 1,870,737 – – 72,050 Culture and recreation 3,015,281 – – – Economic development – 497,108 794,184 – Capital outlay General government 766 – – – Public safety 108,592 – – – Public works – – – 2,143,278 Culture and recreation – – – – Economic development – – 73,298 – Debt service Principal – – – – Interest and fiscal charges – – 156,276 9,306 Total expenditures 16,333,402 497,108 1,023,758 2,224,634 Excess (deficiency) of revenues over expenditures (597,474) 71,611 673,709 614,434 Other financing sources (uses) Sale of capital assets 12,145 – – – Transfers in 802,040 100,000 – – Transfers (out)(1,142,382) (50,260) – (400,000) Total other financing sources (uses)(328,197) 49,740 – (400,000) Net change in fund balances (925,671) 121,351 673,709 214,434 Fund balances (deficit), January 1 8,673,743 4,212,479 5,955,136 1,156,367 Fund balances (deficit), December 31 7,748,072$ 4,333,830$ 6,628,845$ 1,370,801$ CITY OF NEW HOPE For the Year Ended December 31, 2022 Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances See notes to basic financial statements -21- 9233 9117-9121 Other Total Park Governmental Governmental Infrastructure HRA Bonds Funds Funds 904,938$ –$ 3,744,984$ 18,234,216$ – 696,185 – 2,219,677 – – – 959,744 – – – 346,871 48,795 – 1,142,382 3,592,037 159,428 – 253,634 2,253,689 – – – 187,219 – – 7,971 135,427 (60,403) – (283,738) (525,690) 3,579 – 526 56,273 1,056,337 696,185 4,865,759 27,459,463 – – – 2,422,919 – – – 8,915,107 – – 250,420 2,193,207 – – – 3,015,281 – – 7,000 1,298,292 – – 32,202 32,968 – – – 108,592 – – 779,610 2,922,888 364,688 – 74,058 438,746 – – – 73,298 – 445,403 2,196,124 2,641,527 – 178,018 1,280,716 1,624,316 364,688 623,421 4,620,130 25,687,141 691,649 72,764 245,629 1,772,322 – – – 12,145 – – 1,596,890 2,498,930 (600,000) – (741,664) (2,934,306) (600,000) – 855,226 (423,231) 91,649 72,764 1,100,855 1,349,091 1,512,440 (1,978,033) 10,522,654 30,054,786 1,604,089$ (1,905,269)$ 11,623,509$ 31,403,877$ -22- THIS PAGE INTENTIONALLY LEFT BLANK Net change in fund balances – governmental funds 1,349,091$ Amounts reported for governmental activities in the Statement of Activities are different because: Capital outlays 2,865,916 Depreciation/amortization expense (3,343,424) Change in investment in joint venture (100,296) Principal repayments 2,641,527 Amortization of bond premium 151,966 44,245 Property taxes (30,241) Special assessments (72,108) Long-term receivables (1,142,382) Pension expense (596,120) Direct aid contributions 139,303 Change in net position of the internal service funds 557,301 Less the change in internal balances for internal services used by business-type activities (110,065) Change in net position – governmental activities 2,354,713$ CITY OF NEW HOPE Internal service funds are used by management to charge the costs for equipment,information systems,equipment replacement,employee benefits,and major losses incurred by individual funds.The activities of internal service funds is reported in the government-wide financial statements. 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/amortization expense. Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities Governmental Funds For the Year Ended December 31, 2022 The City’s investment in a joint venture is not a current financial resource and,therefore,is not reported as an asset in the governmental funds, but is included in the Statement of Net Position. Long-term pension activity is not reported in governmental funds. 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 the use of current financial resources.In the Statement of Activities,however, interest expense is recognized as the interest accrues, regardless of when it is due. The issuance of long-term debt provides current financial resources to governmental funds,while the repayment of principal of long-term debt consumes the current financial resources of governmental funds.Neither transaction,however,has any effect on net position.Also, governmental funds report the effect of premiums,discounts,and similar items when debt is first issued,whereas these amounts are deferred and amortized in the Statement of Activities.The amounts below are the effects of these differences in the treatment of long-term debt and related items. Certain revenues are recognized as soon as they are earned.Under the modified accrual basis of accounting,certain revenues cannot be recognized until they are available to liquidate liabilities of the current period. See notes to basic financial statements -23- Original and Actual Over (Under) Final Budget Amounts Budget Revenues Taxes Property taxes 11,393,354$ 11,391,654$ (1,700)$ Franchise taxes 535,000 519,744 (15,256) Licenses and permits 329,570 346,871 17,301 Intergovernmental 1,524,542 1,629,741 105,199 Charges for services 1,790,685 1,840,627 49,942 Fines and forfeitures 200,000 187,219 (12,781) Special assessments 40,000 29,868 (10,132) Investment earnings (charges)50,000 (261,964) (311,964) Miscellaneous 14,000 52,168 38,168 Total revenues 15,877,151 15,735,928 (141,223) Expenditures Current General government 2,328,586 2,422,919 94,333 Public safety 9,200,103 8,915,107 (284,996) Public works 1,598,929 1,870,737 271,808 Culture and recreation 2,974,175 3,015,281 41,106 Capital outlay General government 1,000 766 (234) Public safety 76,400 108,592 32,192 Total expenditures 16,179,193 16,333,402 154,209 Excess (deficiency) of revenues over expenditures (302,042) (597,474) (295,432) Other financing sources (uses) Sale of capital assets – 12,145 12,145 Transfers in 302,042 802,040 499,998 Transfers (out)– (1,142,382) (1,142,382) Total other financing sources (uses)302,042 (328,197) (630,239) Net change in fund balances – (925,671) (925,671) Fund balances, January 1 8,673,743 8,673,743 – Fund balances, December 31 8,673,743$ 7,748,072$ (925,671)$ Statement of Revenues, Expenditures, and Changes in Fund Balances – CITY OF NEW HOPE General Fund Budget and Actual For the Year Ended December 31, 2022 See notes to basic financial statements -24- Original and Actual Over (Under) Final Budget Amounts Budget Revenues Taxes Property taxes 570,000$ 574,905$ 4,905$ Special assessments 1,500 1,636 136 Investment earnings (charges)77,500 (7,822) (85,322) Total revenues 649,000 568,719 (80,281) Expenditures Current Economic development Personnel services 210,292 227,496 17,204 Supplies 300 13,659 13,359 Other services and charges 599,966 255,953 (344,013) Total expenditures 810,558 497,108 (313,450) Excess (deficiency) of revenues over expenditures (161,558) 71,611 233,169 Other financing sources (uses) Transfers in 200,000 100,000 (100,000) Transfers (out)(37,422) (50,260) (12,838) Total other financing sources (uses)162,578 49,740 (112,838) Net change in fund balances 1,020 121,351 120,331 Fund balances, January 1 4,212,479 4,212,479 – Fund balances, December 31 4,213,499$ 4,333,830$ 120,331$ CITY OF NEW HOPE Economic Development Authority Fund Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual For the Year Ended December 31, 2022 See notes to basic financial statements -25- 9300 9301 9302 9303 Sewer Utility Water Utility Golf Course Ice Arena Assets Current assets Cash and temporary investments 2,561,438$ 3,909,250$ 419,237$ –$ Receivables Accounts 373,001 933,938 (4) 84,157 Special assessments 52,336 117,704 – – Due from other governments – 907 – 44,888 Inventories – 48,506 8,295 – Total current assets 2,986,775 5,010,305 427,528 129,045 Noncurrent assets Investment in joint ventures – 168,509 – – Capital assets Land – – 250,625 – Buildings and structures – – 973,145 9,824,219 Vehicles and equipment 607,475 1,392,767 133,696 1,168,644 Improvements other than buildings 7,625,896 12,712,080 149,870 – Leased vehicles and equipment – – 14,300 – Construction in progress 131,842 140,574 – 426,000 Less accumulated depreciation/amortization (3,439,850) (4,832,394) (1,120,306) (4,672,548) Total capital assets, net 4,925,363 9,413,027 401,330 6,746,315 Total noncurrent assets 4,925,363 9,581,536 401,330 6,746,315 Total assets 7,912,138 14,591,841 828,858 6,875,360 Deferred outflows of resources Deferred pension resources 93,338 93,491 18,115 80,750 Business-Type Activities – Enterprise Funds CITY OF NEW HOPE Statement of Net Position Proprietary Funds December 31, 2022 See notes to basic financial statements -26- Governmental Activities – 9304 9305 Internal Storm Water Street Lighting Totals Service Funds 1,644,184$ 162,625$ 8,696,734$ 10,467,504$ 128,019 7,985 1,527,096 10,511 13,892 2,076 186,008 – – – 45,795 – – – 56,801 70,180 1,786,095 172,686 10,512,434 10,548,195 – – 168,509 – 234,417 – 485,042 85,647 – – 10,797,364 3,158,296 – – 3,302,582 10,759,917 10,324,195 389,705 31,201,746 – – – 14,300 328,079 212,209 – 910,625 – (2,275,832) (58,456) (16,399,386) (10,762,745) 8,494,989 331,249 30,312,273 3,569,194 8,494,989 331,249 30,480,782 3,569,194 10,281,084 503,935 40,993,216 14,117,389 53,424 – 339,118 93,338 Business-Type Activities – Enterprise Funds -27-(continued) 9300 9301 9302 9303 Sewer Utility Water Utility Golf Course Ice Arena Liabilities Current liabilities Accrued salaries payable 12,277$ 24,527$ 2,956$ 18,403$ Accounts and contracts payable 179,041 12,940 17,173 59,029 Due to other governments 373 772,377 – 12,812 Accrued interest payable 7,715 26,151 – 3,887 Due to other funds – – – 9,513 Deposits payable – 2,206 – – Compensated absences payable, current portion – – – – Leases payable, current portion – – 6,509 – Bonds and notes payable, current portion 60,388 253,318 – 260,000 Total current liabilities 259,794 1,091,519 26,638 363,644 Noncurrent liabilities Advances from other funds – – – 650,000 OPEB payable 31,273 33,287 4,041 23,533 Pension liability 310,111 310,621 60,186 268,286 Compensated absences payable – – – – Leases payable – – – – Bonds and notes payable 620,255 2,460,695 – 1,295,000 Unamortized premium 16,686 67,172 – 34,805 Total noncurrent liabilities 978,325 2,871,775 64,227 2,271,624 Total liabilities 1,238,119 3,963,294 90,865 2,635,268 Deferred inflows of resources Deferred pension resources 4,730 4,738 918 4,092 Net position Net investment in capital assets 4,228,034 6,631,842 394,821 5,156,510 Unrestricted 2,534,593 4,085,458 360,369 (839,760) Total net position 6,762,627$ 10,717,300$ 755,190$ 4,316,750$ Total net position – enterprise funds Adjustment to reflect the consolidation of internal service funds Net position – business-type activities Proprietary Funds December 31, 2022 Business-Type Activities – Enterprise Funds CITY OF NEW HOPE Statement of Net Position (continued) See notes to basic financial statements -28- Governmental Activities – 9304 9305 Internal Storm Water Street Lighting Totals Service Funds 5,989$ –$ 64,152$ 173,067$ 3,310 14,727 286,220 188,353 362 – 785,924 671 13,657 – 51,410 – – – 9,513 – – – 2,206 7,259 – – – 86,302 – – 6,509 78,237 100,519 – 674,225 – 123,837 14,727 1,880,159 533,889 – – 650,000 – 21,223 – 113,357 700,562 177,497 – 1,126,701 310,110 – – – 776,711 – – – 189,078 1,064,957 – 5,440,907 – 35,618 – 154,281 – 1,299,295 – 7,485,246 1,976,461 1,423,132 14,727 9,365,405 2,510,350 2,707 – 17,185 4,730 7,293,895 331,249 24,036,351 3,301,879 1,614,774 157,959 7,913,393 8,393,768 8,908,669$ 489,208$ 31,949,744$ 11,695,647$ 31,949,744$ (387,995) 31,561,749$ -29- 9300 9301 9302 9303 Sewer Utility Water Utility Golf Course Ice Arena Operating revenues Charges for services 4,026,715$ 5,526,619$ 424,160$ 876,769$ Billings to departments – – – – Intergovernmental – – – 3,158 Other – – – – Total operating revenues 4,026,715 5,526,619 424,160 879,927 Operating expenses Cost of goods sold 1,979,907 3,400,330 35,624 – Personnel services 428,287 431,491 150,474 432,536 Supplies 18,768 87,783 32,928 69,934 Utilities 13,295 1,137 31,150 295,311 Other services and charges 424,450 480,585 93,271 151,609 Depreciation/amortization 210,745 312,298 45,950 226,267 Total operating expenses 3,075,452 4,713,624 389,397 1,175,657 Operating income (loss)951,263 812,995 34,763 (295,730) Nonoperating revenues (expenses) Investment earnings (charges)(91,695) (129,398) (14,504) (4) Miscellaneous revenues 1,359 373,689 29,326 51,850 Intergovernmental – – – – Gain (loss) on sale of capital assets – – – – Interest expense (17,514) (60,361) (33) (15,554) Total nonoperating revenues (expenses)(107,850) 183,930 14,789 36,292 Income (loss) before contributions and transfers 843,413 996,925 49,552 (259,438) Capital contributions – 13,756 – – Transfers in – – – 500,000 Transfers (out)(58,368) (60,876) (11,310) (11,310) Change in net position 785,045 949,805 38,242 229,252 Net position, January 1 5,977,582 9,767,495 716,948 4,087,498 Net position, December 31 6,762,627$ 10,717,300$ 755,190$ 4,316,750$ Change in net position – enterprise funds Adjustment to reflect the consolidation of internal service funds activities related to the enterprise funds Change in net position – business-type activities Business-Type Activities – Enterprise Funds CITY OF NEW HOPE Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds For the Year Ended December 31, 2022 See notes to basic financial statements -30- Governmental Activities – 9304 9305 Internal Storm Water Street Lighting Totals Service Funds 1,378,944$ 178,120$ 12,411,327$ –$ – – – 3,769,781 – – 3,158 – – – – 230,258 1,378,944 178,120 12,414,485 4,000,039 – – 5,415,861 – 264,580 – 1,707,368 904,041 11,019 – 220,432 328,218 – 125,627 466,520 130,108 417,276 12,181 1,579,372 1,197,026 251,014 19,485 1,065,759 657,538 943,889 157,293 10,455,312 3,216,931 435,055 20,827 1,959,173 783,108 (51,194) (6,064) (292,859) (313,179) 778 – 457,002 – 43,851 – 43,851 – – – – (2,907) (30,707) – (124,169) (12,413) (37,272) (6,064) 83,825 (328,499) 397,783 14,763 2,042,998 454,609 – – 13,756 – – – 500,000 200,000 (25,452) – (167,316) (97,308) 372,331 14,763 2,389,438 557,301 8,536,338 474,445 29,560,306 11,138,346 8,908,669$ 489,208$ 31,949,744$ 11,695,647$ 2,389,438$ service funds activities related to the enterprise funds 110,065 2,499,503$ -31- 9300 9301 9302 9303 Sewer Utility Water Utility Golf Course Ice Arena Cash flows from operating activities Receipts from customers and users 4,026,085$ 5,570,919$ 427,087$ 856,116$ Receipts from interfund services provided – – – – Other operating receipts 1,359 373,689 29,326 51,850 Payments to suppliers (2,472,992) (3,662,670) (186,533) (502,590) Payments to employees (416,187) (448,958) (149,309) (430,477) Net cash from operating activities 1,138,265 1,832,980 120,571 (25,101) Cash flows from noncapital financing activities Receipts on interfund balances – – – 659,513 Payments on interfund balances – – – (194,063) Transfers in – – – 500,000 Transfers (out)(58,368) (60,876) (11,310) (11,310) Net cash from noncapital financing activities (58,368) (60,876) (11,310) 954,140 Cash flows from capital and related financing activities Acquisition of capital assets (418,877) (585,782) (9,250) (662,690) Capital contributions – 13,756 – – Principal paid on long-term debt (59,205) (248,118) (7,791) (245,000) Interest paid on long-term debt (19,238) (67,393) (33) (21,345) Net cash from capital and related financing activities (497,320) (887,537) (17,074) (929,035) Cash flows from investing activities Investment earnings received (charged)(91,695) (129,398) (14,504) (4) Net increase in cash and cash equivalents 490,882 755,169 77,683 – Cash and cash equivalents, January 1 2,070,556 3,154,081 341,554 – Cash and cash equivalents, December 31 2,561,438$ 3,909,250$ 419,237$ –$ Business-Type Activities – Enterprise Funds For the Year Ended December 31, 2022 Proprietary Funds Statement of Cash Flows CITY OF NEW HOPE See notes to basic financial statements -32- Governmental Activities – 9304 9305 Internal Storm Water Street Lighting Totals Service Funds 1,432,399$ 177,778$ 12,490,384$ –$ – – – 3,769,063 44,629 – 500,853 230,258 (476,243) (138,051) (7,439,079) (1,544,376) (240,588) – (1,685,519) (955,817) 760,197 39,727 3,866,639 1,499,128 – – 659,513 – – – (194,063) – – – 500,000 200,000 (25,452) – (167,316) (97,308) (25,452) – 798,134 102,692 (81,755) – (1,758,354) (749,448) – – 13,756 – (163,150) – (723,264) (60,764) (35,060) – (143,069) (12,413) (279,965) – (2,610,931) (822,625) (51,194) (6,064) (292,859) (313,179) 403,586 33,663 1,760,983 466,016 1,240,598 128,962 6,935,751 10,001,488 1,644,184$ 162,625$ 8,696,734$ 10,467,504$ Business-Type Activities – Enterprise Funds -33-(continued) 9300 9301 9302 9303 Sewer Utility Water Utility Golf Course Ice Arena Reconciliation of operating income (loss) to net cash from operating activities Operating income (loss)951,263$ 812,995$ 34,763$ (295,730)$ Adjustments to reconcile operating income (loss) to net cash from operating activities Depreciation 210,745 312,298 45,950 226,267 Other income related to operations 1,359 373,689 29,326 51,850 (Increase) decrease in assets Receivables Accounts 1,799 (24,873) 2,927 (63,274) Special assessments (2,429) (5,281) – – Due from other governments – 74,454 – 39,463 Inventories – (19,995) (1,409) – (Increase) decrease in deferred outflows of resources Deferred pension resources 48,072 40,243 8,348 38,440 Increase (decrease) in liabilities Accounts and contracts payable (36,658) (72,249) 8,013 14,184 Accrued salaries payable (1,476) 2,341 573 1,576 Due to other governments 86 399,409 (164) 80 Deposits payable – – – – Compensated absences payable – – – – OPEB payable 20,690 (25,470) 387 1,545 Pension liability 117,300 128,277 24,103 105,774 Increase (decrease) in deferred inflows of resources Deferred pension resources (172,486) (162,858) (32,246) (145,276) Net cash from operating activities 1,138,265$ 1,832,980$ 120,571$ (25,101)$ Schedule of noncash capital and related financing activities Amortization of bond premium 1,121$ 4,696$ –$ 5,178$ Capital assets acquired through leases payable –$ –$ 14,300$ –$ Net book value of capital assets disposals –$ –$ –$ –$ Business-Type Activities – Enterprise Funds CITY OF NEW HOPE Statement of Cash Flows (continued) Proprietary Funds For the Year Ended December 31, 2022 See notes to basic financial statements -34- Governmental Activities – 9304 9305 Internal Storm Water Street Lighting Totals Service Funds 435,055$ 20,827$ 1,959,173$ 783,108$ 251,014 19,485 1,065,759 657,538 44,629 – 500,853 – 6,790 (335) (76,966) (718) (38) (7) (7,755) – 46,703 – 160,620 – – – (21,404) (5,978) 17,887 – 152,990 23,831 (48,031) (243) (134,984) 116,956 555 – 3,569 19,677 83 – 399,494 (2) – – – 7,259 – – – (12,076) 11,946 – 9,098 (98,714) 80,265 – 455,719 150,353 (86,661) – (599,527) (142,106) 760,197$ 39,727$ 3,866,639$ 1,499,128$ 2,451$ –$ 13,446$ –$ –$ –$ 14,300$ 231,093$ –$ –$ –$ 2,907$ Business-Type Activities – Enterprise Funds -35- THIS PAGE INTENTIONALLY LEFT BLANK CITY OF NEW HOPE Notes to Basic Financial Statements December 31, 2022 -36- NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES A. Organization The City of New Hope, Minnesota (the City) operates under “Optional Plan B” as defined in Minnesota Statutes, Chapter 412. Under this plan, the government of the City is run by a council composed of an elected mayor and four councilmembers. The City Council exercises legislative authority and determines all matters of policy. The city manager, who is appointed by the City Council, is responsible for the proper administration of all affairs relating to the City. The accounting policies of the City conform to accounting principles generally accepted in the United States of America (GAAP), as applicable to governmental units. B. Reporting Entity As required by GAAP, these financial statements include the City (the primary government) and its component units. Component units are legally separate entities for which the primary government is financially accountable, or for which the exclusion of the component unit would render the financial statements of the primary government misleading. The criteria used to determine if the primary government is financially accountable for a component unit includes whether or not the primary government appoints the voting majority of the potential component unit’s board, is able to impose its will on the potential component unit, is in a relationship of financial benefit or burden with the potential component unit, or is fiscally depended upon by the potential component unit. As a result of applying these criteria, certain organizations have been included or disclosed in this report as follows: 1. Blended Component Unit – The New Hope Economic Development Authority (EDA) and Housing and Redevelopment Authority (HRA) are fiscally dependent upon the City, and were developed to control and operate the housing and redevelopment and tax increment districts within the City. Since the City Council makes up the EDA and HRA boards, and funding for EDA and HRA activities are provided by the City, both entities are considered blended component units of the City, and are reported as special revenue, debt service, and capital projects funds. 2. Joint Ventures and Jointly Controlled Organization – The City participates in various joint ventures and jointly controlled organizations, which are described later in these notes. C. Government-Wide Financial Statements The government-wide financial statements (Statement of Net Position and Statement of Activities) display information about the reporting government as a whole. These statements include all of the financial activities of the City. Governmental activities, which are normally supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which significantly rely upon sales, fees, and charges for support. -37- NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) The Statement of Activities demonstrates the degree to which the direct expenses o f a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include: 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment; 2) operating grants and contributions; and 3) capital grants and contributions, including special assessments that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other internally directed revenues are reported as general revenues. The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes and special assessments are recognized as revenues in the fiscal year for which they are certified for levy. Grants and similar items are recognized when all eligibility requirements imposed by the provider have been met. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. However, charges between the City’s enterprise funds and other functions are not eliminated, as that would distort the direct costs and program revenues reported in those functions. Depreciation and amortization expense are included in the direct expenses of each function. Interest on long-term debt is considered an indirect expense and is reported separately on the Statement of Activities. D. Fund Financial Statement Presentation Separate fund financial statements are provided for governmental and proprietary funds. Major individual governmental and enterprise funds are reported as separate columns in the fund financial statements. Aggregated information for the remaining nonmajor governmental funds is reported in a single column in the fund financial statements. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this basis of accounting, transactions are recorded in the following manner: 1. Revenue Recognition – Revenue is recognized when it becomes measurable and available. “Measurable” means the amount of the transaction can be determined and “available” means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are coll ected within 60 days after year-end. Only the portion of special assessments receivable due within the current fiscal period is considered susceptible to accrual as revenue of the current period. Grants and similar items are recognized when all eligibility requirements imposed by the provider have been met. Proceeds of long-term debt and acquisitions under leases are reported as other financing sources. Major revenue that is susceptible to accrual includes taxes, special assessments, intergovernmental revenue, charges for services, and interest earned on investments. Major revenue that is not susceptible to accrual includes licenses and permits, fees, and miscellaneous revenue. Such revenue is recorded only when received because it is not measurable until collected. 2. Recording of Expenditures – Expenditures are generally recorded when a liability is incurred, except for principal and interest on long-term debt and other long-term liabilities, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as capital outlay expenditures in the governmental funds. -38- NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Proprietary fund financial statements are reported using the economic resources measurement focus and accrual basis of accounting, similar to the government-wide financial statements. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the City’s enterprise funds and internal service funds are charges to customers for sales and services. The operating expenses for the enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation/amortization on capital assets. All revenues and expenses that do not meet this definition are reported as nonoperating revenues and expenses. Aggregated information for the internal service funds is reported in a single column in the proprietary fund financial statements. Because the principal user of the internal services is the City’s governmental activities, the financial statements of the internal service funds are consolidated into the governmental column when presented in the government-wide financial statements. The cost of these services is reported in the appropriate functional activity. Description of Funds The City reports the following major governmental funds: General Fund – This is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. Economic Development Authority Special Revenue Fund – This fund accounts for the activities of the EDA, which controls and operates the housing and redevelopment projects and tax increment districts in the City. Its activities are funded through property tax levies and federal and state aids and grants. HRA Construction Capital Projects Fund – This fund is used to account for redevelopment costs for tax increment districts, which are primarily funded by tax increment bonds and tax increment revenues. Street Infrastructure Capital Projects Fund – This fund is used to account for various street projects within the City. Park Infrastructure Capital Projects Fund – This fund is used to account for various park projects within the City. HRA Bonds Debt Service Fund – This fund is used to account for revenue from tax increments and interest income to pay for the principal and interest on the City’s tax increment bond issues. The City reports the following major enterprise funds: Sewer Utility Fund – This fund accounts for the provisions of sewer services to residents of the City. All activities necessary to provide such services are accounted for in this fund, including administration, operations, maintenance, and billing and collections. Water Utility Fund – This fund is used to account for the provisions of water services to residents of the City. All activities necessary to provide such services are accounted for in this fund, including administration, operations, maintenance, and billing and collections. Golf Course Fund – This fund is used to account for the operations of the City’s public golf course. Ice Arena Fund – This fund is used to account for the operation of the City’s indoor ice arena. Storm Water Fund – This fund is used to account for the operation and mai ntenance of the City’s storm water system. -39- NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Street Lighting Fund – This fund is used to account for the operation of the City’s streetlight system. The City also reports the following fund type: Internal Service Funds – These funds are used to account for the City’s vehicle and equipment rental, employee leave benefits, insurance, and information technology operations. Internal service funds operate in a manner similar to enterprise funds; however, they provide services primarily to other departments within the City. E. Budgets and Budgetary Accounting Each fall, following a truth in taxation public hearing, the City Council adopts an operating budget for the following fiscal year beginning January 1. The City legally adopts budgets for the General Fund and certain special revenue funds (Economic Development Authority and Solid Waste Management Funds), on a modified accrual basis of accounting. The legal level of budgetary control is at the fund level. The city manager may transfer appropriations within funds, or departments within funds, but needs City Council approval to adjust the total budget of a fund. Appropriations lapse at year-end; however, the City Council may approve the carryover of specific amounts. In 2022, expenditures exceeded budget in the General Fund by $154,209 and the (nonmajor) Solid Waste Management Special Revenue Fund by $1,842. F. Cash, Cash Equivalents, and Investments Cash balances from all funds are combined and invested to the extent available in short-term investments. Earnings from the pooled investments are allocated to the individual funds based on the average monthly cash and investment balances of the respective funds. Certain bond proceeds may be held separately for capital projects. Earnings on these accounts are allocated directly to the respective funds. For purposes of the Statement of Cash Flows, the City considers all highly liquid debt instruments with an original maturity from the time of purchase of three months or less to be cash equivalents. The proprietary funds’ portion of the government-wide cash and investment pool is considered cash equivalent. The City generally reports investments at fair value other than certain investment pools that are valued at amortized cost. The City categorizes its fair value measurements within the fair value hierarchy established by GAAP. 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; and Level 3 inputs are significant unobservable inputs. Debt securities classified in Level 2 of the fair value hierarchy are valued using a matrix pricing technique. Matrix pricing is used to value securities based on the securities’ relationship to benchmark quoted prices. See Note 2 for the City’s recurring fair value measurements as of the current year-end. G. Receivables Accounts receivable include amounts billed for services provided before year-end and lease receivable. Unbilled utility enterprise fund receivables are also included for services provided in the year. The City annually certifies delinquent utility accounts to the county for collection in the following year; therefore, no allowance for doubtful accounts has been established for the delinquent utility receivables. Receivables not expected to be fully collected within one year include loans, leases, deferred special assessments, and delinquent property taxes receivable. -40- NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) H. Property Taxes Property tax levies are set by the City Council in December of each year and are certified to Hennepin County for collection in the following year. In Minnesota, counties act as collection agents for all property taxes. The county spreads the levies over all taxable property. Such taxes become a lien on January 1 and are recorded as receivables by the City on that date. Property taxes may be paid by taxpayers in two equal installments on May 15 and October 15. The county provides tax settlements to cities and other taxing districts three times a year; in July, December, and January. Property taxes are recognized as revenue in the year levied in the government -wide financial statements and proprietary fund financial statements. In the governmental fund financial statements, taxes are recognized as revenue when received in cash or within 60 days after year-end. Taxes which remain unpaid on December 31 are classified as delinquent taxes receivable and are offset by a deferred inflow of resources in the governmental fund financial statements. I. Special Assessments Special assessments are levied against benefited properties for the cost or a portion of the cost of special assessment improvement projects in accordance with Minnesota 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. In governmental fund financial statements, revenue from special assessments is recognized by the City when it becomes measurable and available to finance expenditures of the current fiscal period. In practice, current and delinquent special assessments received by the City are recognized as revenue for the current year. Special assessments are collected by the county and remitted by December 31 (remitted to the City the following January) and are also recognized as revenue for the current year. All special assessments receivable in governmental funds are completely offset by a deferred inflow of resources for assessments not received within 60 days after year-end. In government-wide financial statements, special assessments are recognized as revenues in the year for which they are certified. At December 31, 2022, the total delinquent special assessment receivable balance was $40,088. 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 and the first proceeds of that sale (after costs, penalties and expenses of sale) are remitted to the City in payment of delinquent special assessments. Generally, the City will collect the full amount of its special assessments not adjusted by City Council or court action. Pursuant to Minnesota 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. J. Interfund Balances and Transfers In the fund financial statements, balances between funds that are representative of lending or borrowing arrangements are reported as either “due to/from other funds” (current portion) or “advances to/from other funds.” All other outstanding balances between funds are reported as “due to/from other funds.” Interfund balances and transfers reported in the fund financial statements are eliminated to the extent poss ible in the government-wide financial statements. Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.” -41- NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) K. Inventory and Prepaid Items Inventory is valued at cost using the first-in/first-out method. Inventory consists mainly of expendable supplies held for consumption. Certain cash payment to vendors reflects costs applicable to future accounting periods are recorded as prepaid items in both government-wide and fund financial statements. Inventory and prepaid items of the governmental funds are recorded as expenditures when consumed rather than when purchased. L. Land Held for Resale Land held for resale is valued at the lower of cost or estimated acquisition value. M. Capital Assets Capital assets, which include property, buildings, improvements, equipment, and infrastructure assets (roads, bridges, sidewalks, and similar items) are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Such assets are capitalized at historical cost or estimated historical cost for assets where actual historical cost is not available. Donated assets are recorded as capital assets at their estimated acquisition value on the date of donation. Leased capital assets are recorded based on the measurement of payments applicable to the lease term. The City defines capital assets as those with an initial, individual cost of more than $5,000 with an estimated useful life in excess of two years or more. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Capital assets are reported in the government-wide and proprietary fund financial statements, but not in the governmental fund financial statements. Capital assets are depreciated using the straight-line method over their estimated useful lives. Land and construction in progress are not depreciated. Useful lives vary from 15 to 50 years for buildings and structures, 15 to 50 years for improvements other than buildings, and 3 to 20 years for vehicles and equipment. Leased assets are amortized over the term of the lease or over the useful life of the applicable asset class previously described, if future ownership is anticipated. N. Deferred Outflows/Inflows of Resources In addition to assets and liabilities, statements of financial position or balance sheets will sometimes report separate sections for deferred outflows or inflows of resources. These separate financial statement elements represent a consumption or acquisition of net assets, respectively, that apply to future periods and so will not be recognized as an outflow of resources (expense/expenditure) or inflow of financial resource (revenue) until then. The City reports deferred outflows and inflows of resources related to pensions in the government-wide and proprietary fund Statements of Net Position. These deferred outflows and inflows result from differences between expected and actual experience, changes of assumptions, changes in proportion, differences between projected and actual earnings on pension plan investments, and contributions to the plan subsequent to the measurement date and before the end of the reporting period. These amounts are deferred and amortized as required under pension standards. The City reports deferred inflows of resources related to leases. Lessors are required to recognize deferred inflows of resources corresponding to lease receivables, which are reported in both the governmental fund financial statements and the government-wide financial statements. These amounts are deferred and amortized in a systematic and rationale manner over the term of the lease. The City also reports deferred inflows or resources for resources received in advance, which is reported in both the governmental fund financial statements and the government-wide financial statements. This item represents amounts received before the applicable time requirements are met, but after all other eligibility requirements have been met. -42- NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Deferred inflows of resources from unavailable revenue arises only under a modified accrual basis of accounting and, therefore, is only reported in governmental fund financial statements. 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. O. Long-Term Liabilities In the government-wide financial statements and proprietary fund financial statements, long-term debt and other long-term obligations are reported as liabilities. The recognition of bond premiums and discounts are delayed and amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as an expense in the period incurred. In the fund financial statements, governmental fund types recognize bond premium 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. P. Compensated Absences A liability is recognized for unpaid vacation, sick leave, wellness days, and personal leave earned by employees at the Balance Sheet date if it is probable the benefit will be paid as time off or at separation of service. The City implemented a personal leave plan in 1994 in which all new employees, other than police officers, participate. Employees who have had five or more years of service at the time of implementation were allowed to choose between the personal leave plan or the vacation/sick leave plan. Under the vacation/sick leave plan, employees are entitled to compensation for unpaid vacation time up to 160 hours and one-third of their accumulated sick leave, to a maximum of 320 hours. Under personal leave, employees are entitled to 200 hours of accumulated leave time. The Employee Leave Internal Service Fund is typically used to liquidate governmental compensated absences payable. Q. Other Post-Employment Benefits (OPEB) Under Minnesota Statutes Chapter 471.61, Subd. 2b, public employers must allow retirees and their dependents to continue coverage indefinitely in an employer-sponsored healthcare plan, under the following conditions: 1) retirees must be receiving (or eligible to receive) an annuity from a Minnesota public pension plan, 2) coverage must continue in a group plan until age 65, and retirees must pay no more than the group premium, and 3) retirees are able to add dependent coverage during open enrollment period or qualifying life event prior to retirement. All premiums are funded on a pay-as-you-go basis. The liability was determined, in accordance with Governmental Accounting Standards Board (GASB) Statement No. 75, at December 31, 2022. The Insurance Reserve Internal Service Fund is typically used to liquidate governmental OPEB payable. R. State-Wide Pension Plans For purposes of measuring the net pension liability, deferred outflows/inflows of resources, and pension expense, information about the fiduciary net position of the Public Employees Retirement Association (PERA) and additions to/deductions from the PERA’s fiduciary net position have been determined on the same basis as they are reported by the PERA. 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. -43- NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) S. 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; and natural disasters. The City participates in the League of Minnesota Cities Insurance Trust (LMCIT), a public entity risk pool for its general property and casualty, workers’ compensation, and other miscellaneous insurance coverage. The LMCIT operates as a common risk management and insurance program for a large number of cities in Minnesota. The City pays an annual premium to the LMCIT for insurance coverage. The LMCIT agreement provides that the trust will be self-sustaining through member premiums and will reinsure through commercial companies for claims in excess of certain limits. The City also carries commercial insurance for certain other risks of loss. Settled claims resulting from these risks did not exceed insurance coverage in any of the last three fiscal years. There were no significant reductions in insurance coverage in the current year. T. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported at the date of the financial statements during the reporting period. Actual results could differ from those estimates. U. Fund Balance Classifications In the fund financial statements, governmental funds report fund balance in classifications that disclose constraints for which amounts in those funds can be spent. These classifications are as follows: • Nonspendable – Consists of amounts that are not in spendable form, such as prepaid items, inventory, and other long-term assets. • Restricted – Consists of amounts related to externally imposed constraints established by creditors, grantors, or contributors; or constraints imposed by state statutory provisions. • Committed – Consists of internally imposed constraints established by resolution of the City Council, which cannot be used for any other purpose unless the City Council removes or changes the specified use by taking the same type of action employed to previously commit those amounts. • Assigned – Consists of internally imposed constraints representing amounts intended to be used by the City for specific purposes that do not meet the criteria to be classified as restricted or committed. Assigned amounts represent intended uses established by the governing body itself or by an official to which the governing body delegates the authority. The City Council has adopted a fund balance policy, which delegates the authority to assign amounts for specific purposes to the finance manager or city manager. • Unassigned – The residual classification for the General Fund, which also reflects negative residual amounts in other funds. When both restricted and unrestricted resources are available for use, it is the City’s policy to first use restricted resources, and then use unrestricted resources as needed. When committed, assigned, or unassigned resources are available for use, it is the City’s policy to use resources in the following order: 1) committed, 2) assigned, and 3) unassigned. The City’s fund balance policy includes a fund balance goal in the General Fund of maintaining an unassigned fund balance of 48 percent of the next year’s budgeted General Fund expenditures. -44- NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) V. Net Position In the government-wide and proprietary fund financial statements, net position represents the difference between assets, deferred outflows of resources, 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/amortization, reduced by any outstanding debt attributable to acquire capital assets. • Restricted Net Position – Consists of net position restricted when there are limitations imposed on its use through external restrictions imposed by creditors, grantors, or laws or regulations of other governments. • Unrestricted Net Position – All other elements of net position that do not meet the definition of “restricted” or “net investment in capital assets.” The City applies restricted resources first when an expense is incurred for which both restricted and unrestricted resources are available. Net investment in capital assets at year-end is calculated as follows: Governmental Business-Type Activities Activities Total Capital assets, net 74,538,608$ 30,312,273$ 104,850,881$ Less applicable Bonds payable (35,490,868) (6,115,132) (41,606,000) Unamortized bond premiums (2,251,021) (154,281) (2,405,302) Leases payable (267,315) (6,509) (273,824) Add applicable Unspent bond proceeds 515,997 – 515,997 Net investment in capital assets 37,045,401$ 24,036,351$ 61,081,752$ W. Deficit Fund Equity The following funds had fund balance or net position deficits at December 31, 2022: Fund Amount HRA Bonds Debt Service Fund 1,905,269$ Internal service funds Insurance Reserve 290,480$ The City plans to fund these deficits with future property taxes, tax increments, or transfers. -45- NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) X. Change in Accounting Principle During the year ended December 31, 2022, the City implemented GASB Statement No. 87, Leases. This statement included major changes in recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. Under this statement, a lessee is required to recognize a lease liability and an intangible right -to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources. The implementation of the new GASB statement in the current year resulted in the restatement of certain balances reported by the City as of the beginning of the 2022 fiscal year, but did not require restatement of beginning fund balances or net position. See Notes 4, 6, and 7 for additional detail on this change in the current year. NOTE 2 – CASH AND INVESTMENTS A. Components of Cash and Investments Cash and investments at year-end consist of the following: Deposits 12,719,361$ Investments 36,590,999 Petty cash 2,500 Total 49,312,860$ B. Deposits In accordance with applicable Minnesota Statutes, the City maintains deposits at depository banks authorized by the City Council, including checking accounts and certificates of deposit. The following is considered the most significant risk associated with deposits: Custodial Credit Risk – In the case of deposits, this is the risk that in the event of a bank failure, the City’s deposits may be lost. Minnesota Statutes require that all deposits be protected by federal deposit insurance, corporate surety bond, or collateral. The market value of collateral pledged must equal 110 percent of the deposits not covered by federal deposit insurance or corporate surety bonds. Authorized collateral includes treasury bills, notes, and bonds; issues of U.S. government agencies; general obligations rated “A” or better; revenue obligations rated “AA” or better; irrevocable standard letters of credit issued by the Federal Home Loan Bank; and certificates of deposit. Minnesota Statutes require that securities pledged as collateral be held in safekeeping in a restricted account at the Federal Reserve Bank or in an account at a trust department of a commercial bank or other financial institution that is not owned or controlled by the financial institution furnishing the collateral. The City has no additional deposit policies addressing custodial credit risk. At year-end, the carrying amount of the City’s deposits was $12,719,361, while the balance on the bank records was $12,939,607. All deposits at year-end were fully covered by federal deposit insurance or collateral held by the City’s agent in the City’s name. -46- NOTE 2 – CASH AND INVESTMENTS (CONTINUED) C. Investments The City has the following investments at year-end: Fair Value Measurements Investment Type Rating Agency Using No Maturity Less Than 1 1 to 5 Greater Than 5 Total U.S. treasury securities AAA Moody’s Level 2 –$ –$ 6,299,754$ –$ 6,299,754$ U.S. agency securities AA S&P Level 2 – 3,336,771 11,504,067 349,860 15,190,698 State and local bonds AAA S&P Level 2 – – 814,367 – 814,367 State and local bonds AA S&P Level 2 – 245,261 2,325,605 228,117 2,798,983 State and local bonds AAA Moody’s Level 2 – – 260,372 – 260,372 State and local bonds AA Moody’s Level 2 – – 694,661 – 694,661 Negotiable certificates of deposit Level 2 – 2,190,136 229,206 – 2,419,342 4M Fund investment pool Not Applicable 7,247,315 – – – 7,247,315 Mutual funds AAA S&P Level 1 865,507 – – – 865,507 Total investments 8,112,822$ 5,772,168$ 22,128,032$ 577,977$ 36,590,999$ Not Rated Credit Risk Not Rated Interest Risk – Maturity Duration in Years The Minnesota Municipal Money Market (4M) Fund is external investment pool regulated by Minnesota Statutes that is not registered with the Securities and Exchange Commission (SEC), but follows the regulatory rules of the SEC. The City’s investment in this fund is measured at the value per share provided by the pool, which is based on an amortized cost method that approximates fair value. There are no restrictions or limitations on withdrawals from the 4M Fund. Investments are subject to various risks, the following of which are considered the most significant: Credit Risk – This is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. Minnesota Statutes limit the City’s investments to direct obligations or obligations guaranteed by the United States or its agencies; shares of investment companies registered under the Federal Investment Company Act of 1940 that receive the highest credit rating, are rated in one of the two highest rating categories by a statistical rating agency, and all of the investments have a final maturity of 13 months or less; general obligations rated “A” or better; revenue obligations rated “AA” or better; general obligations of the Minnesota Housing Finance Agency rated “A” or better; bankers’ acceptances of United States banks eligible for purchase by the Federal Reserve System; commercial paper issued by United States corporations or their Canadian subsidiaries, rated of the highest quality category by at least two nationally recognized rating agencies, and maturing in 270 days or less; Guaranteed Investment Contracts guaranteed by a United States commercial bank, domestic branch of a foreign bank, or a United States insurance company, and with a credit quality in one of the top two highest categories; repurchase or reverse purchase agreements and securities lending agreements with financial institutions qualified as a “depository” by the government entity, with banks that are members of the Federal Reserve System with capitalization exceeding $10,000,000; that are a primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York; or certain Minnesota securities broker-dealers. The City’s investment policies do not further address credit risk. Custodial Credit Risk – For investments, this is the risk that in the event of a failure of the counterparty to an investment transaction (typically a broker-dealer) the City would not be able to recover the value of its investments or collateral securities that are in the possession of an outside party . The City does not have a formal investment policy addressing this risk, but typically limits its exposure by purchasing insured or registered investments, or by control of who holds the securities. Concentration Risk – This is the risk associated with investing a significant portion of the City’s investment (considered 5.0 percent or more) in the securities of a single issuer, excluding U.S. guaranteed investments (such as treasuries), investment pools, and mutual funds. The City’s investment policies do not limit the concentration of investments. As of December 31, 2022, the City had 17.6 percent invested in securities issued by the Federal National Mortgage Association and 17.2 percent invested in securities issued by the Federal Home Loan Mortgage Corporation. -47- NOTE 2 – CASH AND INVESTMENTS (CONTINUED) Interest Rate Risk – This is the risk of potential variability in the fair value of fixed rate investments resulting from changes in interest rates (the longer the period for which an interest rate is fixed, the greater the risk). The City does not have an investment policy limiting the duration of investments. NOTE 3 – LOAN RECEIVABLES The City has made several business subsidy loans to local businesses, some of which were funded with grant proceeds received from Hennepin County. The terms and periods of repayment vary with each loan. Loans receivable in the Economic Development Authority Special Revenue Fund at December 31, 2022 totaled $234,500. Loans receivable in nonmajor governmental funds totaled $67,711. NOTE 4 – LEASES RECEIVABLE The City has entered into two agreements to lease space for cellular antennas on city owned structures or property. One agreement requires monthly payments through December 2064 with an interest rate of 1.75 percent. The other agreement requires monthly payments through December 2039 with an interest rate of 1.46 percent. The City received total principal and interest payments of $38,903 and $13,800, respectively, on these agreements in 2022. NOTE 5 – INTERFUND BALANCES AND TRANSFERS A. Internal Balances The composition of internal balances as of December 31, 2022 is as follows: Receivable Fund Payable Fund Amount Purpose Due from/to other funds Governmental Business-type General Fund Ice Arena 9,513$ Cash flow Governmental Governmental Nonmajor governmental Street Infrastructure 75,000 Finance capital purchase Total due from/to other funds 84,513 Advances to/from other funds Governmental Governmental Economic Development Authority HRA Construction 1,228,228 Finance capital purchase Economic Development Authority HRA Bonds 362,014 Finance capital purchase HRA Construction HRA Bonds 2,065,497 Finance capital purchase Nonmajor governmental Street Infrastructure 225,000 Finance capital purchase Governmental Business-type Nonmajor governmental Ice Arena 650,000 Finance capital purchase Total advances from/to other funds 4,530,739 Interfund activity eliminated from government-wide statements (3,955,739) Internal service fund activities related to the enterprise funds 387,995 Total internal balances – government-wide statements 1,047,508$ -48- NOTE 5 – INTERFUND BALANCES AND TRANSFERS (CONTINUED) In 2022, the General Fund loaned the Ice Arena Fund $9,513 for cash flow purposes, the balance is expected to be paid back in 2023. The Economic Development Authority Special Revenue Fund loaned the HRA Construction Capital Projects Fund $2,433,162 in 2008, for the purchase of land at Bass Lake Road. The interfund loan matures in 2028 and carries an interest rate of 4.00 percent. As of December 31, 2022, the balance outstanding was $1,228,228. In 2015, the Economic Development Authority Fund and the HRA Construction Fund loaned the HRA Bonds Debt Service Fund $322,016 and $1,837,286, respectively, for the purchase of the Hy-Vee property. The interfund loan matures in 2042 and carries an interest rate of 4.00 percent. As o f December 31, 2022, the balances outstanding, including accrued interest, were $362,014 and $2,065,497, respectively. In 2016, the Temporary Financing Fund loaned the Street Infrastructure Capital Projects Fund $750,000 to fund future capital purchases. The loan will be paid back over a 10-year period with a 2.00 percent interest rate. As of December 31, 2022, the balance outstanding was $300,000. In 2022, The Temporary Financing Fund loaned the Ice Arena Enterprise Fund $650,000 to fund capital improvements. The interest free loan will be paid back within a 15-year period. As of December 31, 2022, the balance outstanding was $650,000. B. Interfund Transfers Interfund transfers during the year ended December 31, 2022 were as follows: Nonmajor Ice Arena Internal General EDA Governmental Enterprise Service Total Transfers out General –$ 100,000$ (3)842,382$ (3)–$ 200,000$ (3)1,142,382$ EDA 37,416 (1)– 12,844 (4)– – 50,260 Street Infrastructure 400,000 (2)– – – – 400,000 Park Infrastructure 100,000 (2)– – 500,000 (6)– 600,000 Nonmajor governmental – – 741,664 (5)– – 741,664 Sewer Utility Enterprise 58,368 (1)– – – – 58,368 Water Utility Enterprise 60,876 (1)– – – – 60,876 Golf Course Enterprise 11,310 (1)– – – – 11,310 Ice Arena Enterprise 11,310 (1)– – – – 11,310 Storm Water Enterprise 25,452 (1)– – – – 25,452 Internal Service 97,308 (1)– – – – 97,308 Total 802,040$ 100,000$ 1,596,890$ 500,000$ 200,000$ 3,198,930$ (1)Transfers to cover administrative charges paid for by the General Fund. (2) (3)Transfers from General Fund to reimburse approved uses of federal ARPA funding. (4)Transfer from EDA for CEE revolving loan activity. (5) (6)Transfer from Park Infrastructure Fund to Ice Arena Enterprise Fund for debt service and capital improvements. Transfers In Funds Transfers from Street Infrastructure Fund and Park Infrastructure Fund to the General Fund for Emerald Ash Borer Program. Transfer from nonmajor governmental Temporary Financing Fund to nonmajor governmental Public Works Facility CIP Fund for public works facility capital improvements. -49- NOTE 6 – CAPITAL ASSETS Capital asset activity for the year ended December 31, 2022 was as follows: A. Changes in Capital Assets Used in Governmental Activities Change in Beginning Accounting of Year Principle Additions Deletions End of Year Capital assets, not depreciated/amortized Land 994,268$ –$ –$ –$ 994,268$ Construction in progress 23,726,228 – 2,987,072 (21,599,221) 5,114,079 Total capital assets, not depreciated/amortized 24,720,496 – 2,987,072 (21,599,221) 6,108,347 Capital assets, depreciated/amortized Buildings and structures 25,408,669 – – – 25,408,669 Vehicles and equipment 11,383,148 (114,728) 757,007 (497,656) 11,527,771 Improvements other than buildings 47,294,718 – 21,470,506 – 68,765,224 Leased vehicles and equipment – 96,986 231,093 – 328,079 Total capital assets, depreciated/amortized 84,086,535 (17,742) 22,458,606 (497,656) 106,029,743 Less accumulated depreciation/amortization Buildings and structures (5,920,091) – (645,908) – (6,565,999) Vehicles and equipment (8,564,913) 2,352 (529,879) 494,749 (8,597,691) Improvements other than buildings (19,610,617) – (2,758,706) – (22,369,323) Leased vehicles and equipment – – (66,469) – (66,469) Total accumulated depreciation/amortization (34,095,621) 2,352 (4,000,962) 494,749 (37,599,482) Net capital assets, depreciated/amortized 49,990,914 (15,390) 18,457,644 (2,907) 68,430,261 Total capital assets, net 74,711,410$ (15,390)$ 21,444,716$ (21,602,128)$ 74,538,608$ B. Changes in Capital Assets Used in Business-Type Activities Change in Beginning Accounting of Year Principle Additions Deletions End of Year Capital assets, not depreciated/amortized Land 485,042$ –$ –$ –$ 485,042$ Construction in progress 1,598,507 – 1,749,104 (2,436,986) 910,625 Total capital assets, not depreciated/amortized 2,083,549 – 1,749,104 (2,436,986) 1,395,667 Capital assets, depreciated/amortized Buildings and structures 10,797,364 – – – 10,797,364 Vehicles and equipment 3,065,892 – 236,690 – 3,302,582 Improvements other than buildings 28,992,200 – 2,209,546 – 31,201,746 Leased vehicles and equipment – 14,300 – – 14,300 Total capital assets, depreciated/amortized 42,855,456 14,300 2,446,236 – 45,315,992 Less accumulated depreciation/amortization Buildings and structures (5,072,350) – (212,181) – (5,284,531) Vehicles and equipment (2,194,649) – (81,972) – (2,276,621) Improvements other than buildings (8,066,628) – (763,806) – (8,830,434) Leased vehicles and equipment – – (7,800) – (7,800) Total accumulated depreciation/amortization (15,333,627) – (1,065,759) – (16,399,386) Net capital assets, depreciated/amortized 27,521,829 14,300 1,380,477 – 28,916,606 Total capital assets, net 29,605,378$ 14,300$ 3,129,581$ (2,436,986)$ 30,312,273$ -50- NOTE 6 – CAPITAL ASSETS (CONTINUED) C. Depreciation Expense by Function Depreciation expense for the year ended December 31, 2022 was charged to the following functions: Governmental activities General government 479,517$ Public safety 65,305 Public works 2,058,764 Culture and recreation 739,838 Internal service 657,538 Total depreciation/amortization – governmental activities 4,000,962$ Business-type activities Sewer utility 210,745$ Water utility 312,298 Golf course 45,950 Ice arena 226,267 Storm water 251,014 Street lighting 19,485 Total depreciation/amortization – business-type activities 1,065,759$ -51- NOTE 7 – LONG-TERM LIABILITIES A. General Obligation (G.O.) Bonds The City issues G.O. bonds to provide funds for the acquisition and construction of major capital facilities. G.O. bonds have been issued for both governmental and business-type activities. These bonds are reported in the proprietary funds if they are expected to be repaid from proprietary fund revenues. The following G.O. bonds will be repaid from future tax levies or abatements: Final Balance – Description Original Issue Interest Rate Issue Date Maturity Date End of Year G.O. Street Reconstruction Bonds, Series 2015B 3,825,000$ 2.25–3.00%12/30/2015 02/01/2031 2,495,000$ G.O. Street Reconstruction Bonds, Series 2016A 4,855,000$ 2.25–3.00%12/29/2016 02/01/2033 3,765,000 G.O. Street Reconstruction Bonds, Series 2017A 18,435,000$ 3.00–5.00%12/28/2017 02/01/2034 15,605,000 G.O. Street Reconstruction Bonds, Series 2018A 9,520,000$ 3.25–5.00%12/20/2018 02/01/2035 8,565,000 G.O. Street Reconstruction Bonds, Series 2019A 5,235,000$ 3.00–4.00%07/18/2019 02/01/2035 4,695,000 G.O. Tax Abatement Bonds, Series, 2021A 2,020,000$ 1.00%03/11/2021 12/01/2028 1,555,000 Total G.O. bonds 36,680,000$ The annual debt service to maturity for G.O. bonds are as follows: Year Ending December 31,Principal Interest Principal Interest Principal Interest 2023 2,132,218$ 1,125,983$ 497,783$ 90,360$ 2,630,001$ 1,216,343$ 2024 2,233,460 1,028,748 516,540 80,496 2,750,000 1,109,244 2025 2,324,080 938,824 535,920 70,788 2,860,000 1,009,612 2026 2,407,610 842,662 552,390 61,231 2,960,000 903,893 2027 2,516,139 730,528 573,862 51,240 3,090,001 781,768 2028–2032 13,860,265 2,267,654 1,429,736 116,740 15,290,001 2,384,394 2033–2035 6,934,764 291,993 165,233 2,479 7,099,997 294,472 32,408,536$ 7,226,392$ 4,271,464$ 473,334$ 36,680,000$ 7,699,726$ Governmental Activities Business-Type Activities Total -52- NOTE 7 – LONG-TERM LIABILITIES (CONTINUED) B. G.O. Tax Increment Bonds The following bonds were issued for development purposes. The additional tax increment resulting from the increased tax capacity of the redeveloped properties has been pledged to retire the related debt. Tax increment revenues are projected to produce over 55 percent of the debt service requirements over the life of the bonds. For the current year, principal and interest paid and total related tax increment revenues were $869,178 and $696,185, respectively. Final Balance – Description Original Issue Interest Rate Issue Date Maturity Date End of Year G.O. Tax Increment Refunding Bonds, Series, 2012A 2,695,000$ 2.00–2.45%01/11/2012 02/01/2025 800,000$ G.O. Tax Increment Refunding Bonds, Series, 2012B 1,330,000$ 1.35–4.65%01/11/2012 02/01/2031 865,000 G.O. Tax Increment Refunding Bonds, Series, 2015A 5,960,000$ 2.00–3.00%06/17/2015 02/01/2032 4,180,000 Total G.O. tax increment bonds 5,845,000$ The annual debt service to maturity for G.O. bonds are as follows: Year Ending December 31,Principal Interest Principal Interest Principal Interest 2023 621,558$ 126,424$ 98,442$ 27,346$ 720,000$ 153,770$ 2024 638,933 111,914 101,067 25,351 740,000 137,265 2025 657,620 96,307 102,380 23,291 760,000 119,598 2026 389,995 82,645 105,005 20,929 495,000 103,574 2027 407,370 71,223 107,630 18,271 515,000 89,494 2028–2032 2,031,856 159,867 583,144 44,132 2,615,000 203,999 4,747,332$ 648,380$ 1,097,668$ 159,320$ 5,845,000$ 807,700$ Governmental Activities TotalBusiness-Type Activities -53- NOTE 7 – LONG-TERM LIABILITIES (CONTINUED) C. G.O. Revenue Notes The following notes were issued to finance capital improvements in the enterprise funds. They will be repaid from future revenues pledged from the Sewer Utility, Water Utility, and Storm Water Funds and are backed by the taxing power of the City. Annual principal and interest payments on the notes are expected to require less than 3, 6, and 12 percent of revenues from the Sewer Utility, Water Utility, and Storm Water Funds, respectively. Principal and interest paid for the current year and total customer revenues for the Sewer Utility Fund were $78,443 and $4,026,715, respectively. Principal and interest paid for the current year and total customer revenues for the Water Utility Fund were $315,511 and $5,526,619, respectively. Principal and interest paid for the current year and total customer revenues for the Storm Water Fund were $198,210 and $1,378,944, respectively. Final Balance – Description Original Issue Interest Rate Issue Date Maturity Date End of Year 2011 G.O. Public Facilities Authority Note 411,738$ 1.70%02/23/2011 08/20/2029 167,000$ 2013 G.O. Public Facilities Authority Note 1,035,000$ 1.00%07/24/2013 08/20/2032 579,000 Total G.O. revenue notes 746,000$ The annual debt service to maturity for G.O. revenue notes are as follows: Year Ending December 31,Principal Interest 2023 78,000$ 8,634$ 2024 79,000 7,692 2025 79,000 6,741 2026 81,000 5,789 2027 82,000 4,810 2028–2032 347,000 10,257 746,000$ 43,923$ Business-Type Activities -54- NOTE 7 – LONG-TERM LIABILITIES (CONTINUED) D. Leases Payable The City has entered into a number of lease agreements for vehicles and equipment. The total amount of underlying lease assets by major classes and the related accumulated amortization is presented in Note 6 to the basic financial statements. The leases will be repaid by the Central Garage Internal Service Fund and the Golf Course Enterprise Fund. At year-end, the City has the following lease liabilities outstanding: Final Balance – Description Original Issue Interest Rate Issue Date Maturity Date End of Year Governmental activities 2022 Chevrolet Tahoe #181 31,086$ 6.85%06/22/2022 06/30/2026 27,595$ 2022 Chevrolet Tahoe #182 32,564$ 6.49%07/06/2022 07/31/2026 29,092 2022 Ford Police Interceptor Utility #101 34,722$ 6.37%05/13/2022 05/31/2026 29,727 2021 Ford Police Interceptor Utility #174 34,822$ 5.12%03/03/2022 03/31/2026 28,176 2021 Ford Police Interceptor Utility #176 33,413$ 4.49%12/27/2021 12/31/2025 25,329 2021 Ford Police Interceptor Utility #175 33,230$ 4.25%11/15/2021 11/30/2025 25,263 2021 Ford Police Interceptor Utility #179 31,761$ 5.95%04/04/2022 04/30/2026 26,513 2021 Ford Police Interceptor Utility #180 31,621$ 4.85%02/02/2022 02/28/2026 25,058 2021 Ford Police Interceptor Utility #178 30,343$ 4.25%11/15/2021 11/30/2025 23,069 2021 Ford Police Interceptor Utility #177 34,517$ 5.05%02/07/2022 02/28/2026 27,493 Total – governmental activities 267,315 Business-type activities Golf carts (7)14,300$ 0.33%01/01/2022 10/31/2023 6,509 Total lease liability 273,824$ The annual debt service to maturity for leases payable are as follows: Year Ending December 31,Principal Interest Principal Interest Principal Interest 2023 78,237$ 12,591$ 6,509$ 10$ 84,746$ 12,601$ 2024 82,522 8,306 – – 82,522 8,306 2025 84,805 3,779 – – 84,805 3,779 2026 21,751 339 – – 21,751 339 267,315$ 25,015$ 6,509$ 10$ 273,824$ 25,025$ TotalGovernmental Activities Business-Type Activities -55- NOTE 7 – LONG-TERM LIABILITIES (CONTINUED) E. Changes in Long-Term Liabilities Long-term liability activity for the year ended December 31, 2022, was as follows: Change in Beginning Accounting Due Within of Year Principle Additions Deletions End of Year One Year Governmental activities Bonds payable G.O. bonds 34,447,225$ –$ –$ 2,038,689$ 32,408,536$ 2,132,218$ G.O. tax increment bonds 5,350,170 – – 602,838 4,747,332 621,558 Add – premiums on bonds 2,423,989 – – 151,966 2,272,023 – Total bonds payable, net 42,221,384 – – 2,793,493 39,427,891 2,753,776 Leases payable 112,376 (15,390) 231,093 60,764 267,315 78,237 Compensated absences 875,089 – 807,703 819,779 863,013 86,302 Total governmental activities 43,208,849 (15,390) 1,038,796 3,674,036 40,558,219 2,918,315 Business-type activities Bonds and notes payable G.O. bonds 4,747,775 – – 476,311 4,271,464 497,783 G.O. tax increment bonds 1,194,830 – – 97,162 1,097,668 98,442 G.O. revenue notes 888,000 – – 142,000 746,000 78,000 Add – premiums on bonds 167,727 – – 13,446 154,281 – Total bonds and notes payable, net 6,998,332 – – 728,919 6,269,413 674,225 Leases payable – 14,300 – 7,791 6,509 6,509 Total business-type activities 6,998,332 14,300 – 736,710 6,275,922 680,734 Total government-wide 50,207,181$ (1,090)$ 1,038,796$ 4,410,746$ 46,834,141$ 3,599,049$ Internal service funds predominantly serve the governmental funds. Accordingly, long-term liabilities for internal service funds are included as part of the above totals for governmental activities. -56- NOTE 8 – COMPONENTS OF FUND BALANCE At December 31, 2022, the City had the following fund balances: Economic Development HRA Street General Authority Construction Infrastructure Nonspendable 12,957$ –$ –$ –$ Restricted Economic development – – 6,628,845 – Public safety – police expenditures – – – – Ice arena – – – – Capital improvements – – – – Debt service – – – – Total restricted – – 6,628,845 – Committed Emerald ash borer tree removal 79,634 – – – Solid waste operations – – – – Economic development – 4,333,830 – – Total committed 79,634 4,333,830 – – Assigned City Hall improvements – – – – Public works facility improvements – – – – Street improvements – – – 1,370,801 General improvements – – – – Capital equipment – – – – Park improvements – – – – Total assigned – – – 1,370,801 Unassigned 7,655,481 – – – Total 7,748,072$ 4,333,830$ 6,628,845$ 1,370,801$ Other Park Governmental Infrastructure HRA Bonds Funds Total Nonspendable –$ –$ –$ 12,957$ Restricted Economic development – – – 6,628,845 Public safety – police expenditures – – 128,930 128,930 Ice arena – – 5,236 5,236 Capital improvements – – 515,997 515,997 Debt service – – 3,323,035 3,323,035 Total restricted – – 3,973,198 10,602,043 Committed Emerald ash borer tree removal – – – 79,634 Solid waste operations – – 218,782 218,782 Economic development – – 92,057 4,425,887 Total committed – – 310,839 4,724,303 Assigned City Hall improvements – – 533,245 533,245 Public works facility improvements – – 3,571,542 3,571,542 Street improvements – – – 1,370,801 General improvements – – 2,451,214 2,451,214 Capital equipment – – 783,471 783,471 Park improvements 1,604,089 – – 1,604,089 Total assigned 1,604,089 – 7,339,472 10,314,362 Unassigned – (1,905,269) – 5,750,212 Total 1,604,089$ (1,905,269)$ 11,623,509$ 31,403,877$ -57- NOTE 9 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE A. Plan Descriptions The City participates in the following cost-sharing, multiple-employer defined benefit pension plans administered by the PERA of Minnesota. The PERA’s defined benefit pension plans are established and administered in accordance with Minnesota Statutes, Chapters 353 and 356. The PERA’s defined benefit pension plans are tax qualified plans under Section 401(a) of the Internal Revenue Code (IRC). 1. General Employees Retirement Fund (GERF) All full-time and certain part-time employees of the City are covered by the GERF. The GERF members belong to the Coordinated Plan. Coordinated Plan members are covered by Social Security. 2. Public Employees Police and Fire Fund (PEPFF) The Public Employees Police and Fire Fund (PEPFF), originally established for police officers and firefighters not covered by a local relief association, now covers all police officers and firefighters hired since 1980. Effective July 1, 1999, the PEPFF also covers police officers and firefighters belonging to local relief associations that elected to merge with and transfer assets and administration to the PERA. B. Benefits Provided The PERA provides retirement, disability, and death benefits. Benefit provisions are established by state statutes and can only be modified by the State Legislature. Vested, terminated employees who are entitled to benefits, but are not receiving them yet, are bound by the provisions in effect at the time they last terminated their public service. 1. GERF Benefits Benefits are based on a member’s highest average salary for any five successive years of allowable service, age, and years of credit at termination of service. Two methods are used to compute benefits for the 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 Plan members is 1.2 percent for each of the first 10 years of service, and 1.7 percent for each additional year. Under Method 2, the accrual rate for Coordinated Plan members is 1.7 percent 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 age 66. -58- NOTE 9 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE (CONTINUED) Benefit increases are provided to benefit recipients each January. The post-retirement increase is equal to 50.0 percent of the cost of living adjustment (COLA) announced by the Social Security Administration, with a minimum increase of at least 1.0 percent and a maximum of 1.5 percent. Recipients that have been receiving the annuity or benefit for at least a full year as of the June 30 before the effective date of the increase, will receive the full increase. Recipients receiving the annuity or benefit for at least one month, but less than a full year as of the June 30 before the effective date of the increase, will receive a reduced prorated increase. For members retiring on January 1, 2024 or later, the increase will be delayed until normal retirement age (age 65 if hired prior to July 1, 1989, or age 66 for individuals hired on or after July 1, 1989). Members retiring under Rule of 90 are exempt from the delay to normal retirement. 2. PEPFF Benefits Benefits for the PEPFF members first hired after June 30, 2010 but before July 1, 2014, vest on a prorated basis from 50.0 percent after five years, up to 100.0 percent after 10 years of credited service. Benefits for the PEPFF members first hired after June 30, 2014 vest on a prorated basis from 50.0 percent after 10 years, up to 100.0 percent after 20 years of credited service. The annuity accrual rate is 3.0 percent 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. Benefit increases are provided to benefit recipients each January. The post-retirement increase is fixed at 1.0 percent. 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. 1. GERF Contributions Coordinated Plan members were required to contribute 6.50 percent of their annual covered salary in fiscal year 2022, and the City was required to contribute 7.50 percent for Coordinated Plan members. The City’s contributions to the GERF for the year ended December 31, 2022, were $360,677. The City’s contributions were equal to the required contributions as set by state statutes. 2. PEPFF Contributions Police and Fire Plan members were required to contribute 11.80 percent of their annual covered salary in fiscal year 2022, and the City was required to contribute 17.70 percent for Police and Fire Plan members. The City’s contributions to the PEPFF for the year ended December 31, 2022, were $588,118. The City’s contributions were equal to the required contributions as set by state statutes. -59- NOTE 9 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE (CONTINUED) D. Pension Costs 1. GERF Pension Costs At December 31, 2022, the City reported a liability of $5,100,502 for its proportionate share of the GERF’s net pension liability. The City’s net pension liability reflected a reduction, due to the state of Minnesota’s contribution of $16.0 million. The state of Minnesota is considered a nonemployer 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 $149,558. The net pension liability was measured as of June 30, 2022, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City’s proportion of the net pension liability was based on the City’s contributions received by the PERA during the measurement period for employer payroll paid dates from July 1, 2021 through June 30, 2022, relative to the total employer contributions received from all of the PERA’s participating employers. The City’s proportionate share was 0.0644 percent at the end of the measurement period and 0.0645 percent for the beginning of the period. The amount recognized by the City as its proportionate share of the net pension liability, the direct aid, and total portion of the net pension liability that was associated with the City were as follows: City’s proportionate share of the net pension liability 5,100,502$ State’s proportionate share of the net pension liability associated with the City 149,558$ For the year ended December 31, 2022, the City recognized pension expense of $739,340 for its proportionate share of the GERF’s pension expense. In addition, the City recognized $22,347 as pension expense (and grant revenue) for its proportionate share of the state of Minnesota’s contribution of $16.0 million to the GERF. At December 31, 2022, the City reported its proportionate share of the GERF’s deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Deferred Outflows Inflows of Resources of Resources Differences between expected and actual economic experience 42,603$ 54,426$ Changes in actuarial assumptions 1,156,074 20,165 Net collective difference between projected and actual investment earnings 79,918 – Changes in proportion 80,455 3,202 Contributions paid to the PERA subsequent to the measurement date 176,114 – Total 1,535,164$ 77,793$ -60- NOTE 9 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE (CONTINUED) A total of $176,114 reported as deferred outflows of resources related to pensions resulting from city contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending December 31, 2023. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Pension Year Ending Expense December 31,Amount 2023 494,317$ 2024 490,292$ 2025 (164,618)$ 2026 461,266$ 2. PEPFF Pension Costs At December 31, 2022, the City reported a liability of $11,692,763 for its proportionate share of the PEPFF’s net pension liability. The net pension liability was measured as of June 30, 2022, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City’s proportion of the net pension liability was based on the City’s contributions received by the PERA during the measurement period for employer payroll paid dates from July 1, 2021 through June 30, 2022, relative to the total employer contributions received from all of the PERA’s participating employers. The City’s proportionate share was 0.2687 percent at the end of the measurement period and 0.2550 percent for the beginning of the period. The state of Minnesota contributed $18.0 million to the PEPFF in the plan fiscal year ended June 30, 2022. The contribution consisted of $9.0 million in direct state aid that does meet the definition of a special funding situation and $9.0 million in supplemental state aid that does not meet the definition of a special funding situation. The $9.0 million direct state aid was paid on October 1, 2021. Thereafter, by October 1 of each year, the state will pay $9.0 million to the PEPFF until full funding is reached or July 1, 2048, whichever is earlier. The $9.0 million in supplemental state aid will continue until the fund is 90.0 percent funded, or until the State Patrol Plan (administered by the Minnesota State Retirement System) is 90.0 percent funded, whichever occurs later. The state of Minnesota is included as a nonemployer contributing entity in the Police and Fire Retirement Plan Schedule of Employer Allocations and Schedule of Pension Amounts by Employer, Current Reporting Period Only (pension allocation schedules) for the $9.0 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, 2022, the City recognized pension expense of $734,211 for its proportionate share of the Police and Fire Plan’s pension expense. The City recognized $99,105 as grant revenue for its proportionate share of the state of Minnesota’s pension expense for the contribution of $9.0 million to the PEPFF. -61- NOTE 9 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE (CONTINUED) The amount recognized by the City as its proportionate share of the net pension liability, the direct aid, and total portion of the net pension liability that was associated with the City were as follows: City’s proportionate share of the net pension liability 11,692,763$ State’s proportionate share of the net pension liability associated with the City 510,917$ The state of Minnesota is not included as a nonemployer contributing entity in the Police and Fire Pension Plan pension allocation schedules for the $9.0 million in supplemental state aid. The City recognized $24,183 for the year ended December 31, 2022 as revenue and an offsetting reduction of net pension liability for its proportionate share of the state of Minnesota’s on -behalf contributions to the PEPFF. At December 31, 2022, the City reported its proportionate share of the PEPFF’s deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Deferred Outflows Inflows of Resources of Resources Differences between expected and actual economic experience 707,927$ –$ Changes in actuarial assumptions 6,758,652 76,508 Net collective difference between projected and actual investment earnings 347,216 – Changes in proportion 147,483 366,903 Contributions paid to the PERA subsequent to the measurement date 290,130 – Total 8,251,408$ 443,411$ A total of $290,130 reported as deferred outflows of resources related to pensions resulting from city contributions subsequent to the measurement date that will be recognized as a reduction of the net pension liability in the year ending December 31, 2023. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Pension Year Ending Expense December 31,Amount 2023 $ 1,475,525 2024 $ 1,459,795 2025 $ 1,275,011 2026 $ 2,317,049 2027 $ 990,487 -62- NOTE 9 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE (CONTINUED) E. Long-Term Expected Return on Investments The Minnesota State Board of Investment, which manages the investments of the PERA, prepares an analysis of the reasonableness on a regular basis of the long-term expected rate of return using a building block method in which best-estimate ranges of expected future rates of return are developed for each major asset class. These ranges are combined to produce an expected long-term rate of return by weighting the expected future rates of return by the target asset allocation percentages. The target allocation and best-estimates of geometric real rates of return for each major asset class are summarized in the following table: Asset Class Domestic equity 33.50 %5.10 % International equity 16.50 5.30 % Fixed income 25.00 0.75 % Private markets 25.00 5.90 % Total 100.00 % Allocation Target Real Rate of Return Long-Term Expected F. Actuarial Methods and Assumptions The total pension liability in the June 30, 2022, actuarial valuation was determined using an individual entry-age normal actuarial cost method. The long-term rate of return on pension plan investments used in the determination of the total liability is 6.50 percent. This assumption is based on a review of inflation and investments return assumptions from a number of national investment consulting firms. The review provided a range of return investment return rates deemed to be reasonable by the actuary. An in vestment return of 6.50 percent was deemed to be within that range of reasonableness for financial reporting purposes. Inflation is assumed to be 2.25 percent for the General Employees Plan and 2.25 percent for the Police and Fire Plan. Benefit increases after retirement are assumed to be 1.25 percent for the General Employees Plan. The Police and Fire Plan benefit increase is fixed at 1.00 percent per year and that increase was used in the valuation. Salary growth assumptions in the General Employees Plan range in annual increments from 10.25 percent after one year of service to 3.00 percent after 27 years of service. In the Police and Fire Plan, salary growth assumptions range from 11.75 percent after one year of service to 3.00 percent 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 the PERA’s experience. 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 2019. The assumption changes were adopted by the Board and became effective with the July 1, 2020 actuarial valuation. The most recent four-year experience study for the Police and Fire Plan was completed in 2020, adopted by the Board, and became effective with the July 1, 2021 actuarial valuation. -63- NOTE 9 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE (CONTINUED) The following changes in actuarial assumptions occurred in 2022: 1. GERF CHANGES IN ACTUARIAL ASSUMPTIONS • The mortality improvement scale was changed from Scale MP-2020 to Scale MP-2021. 2. PEPFF CHANGES IN ACTUARIAL ASSUMPTIONS • The mortality improvement scale was changed from Scale MP-2020 to Scale MP-2021. • The single discount rate changed from 6.50 percent to 5.40 percent. G. Discount Rate The discount rate for the General Employees Plan used to measure the total pension liability in 2022 was 6.50 percent. The projection of cash flows used to determine the discount rate assumed that contributions from plan members and employers will be made at rates set in Minnesota Statutes. Based on these assumptions, the fiduciary net position of the General Employees Fund was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. In the Police and Fire Fund, the fiduciary net position was projected to be available to make all projected future benefit payments of current plan members through June 30, 2060. Beginning in fiscal year ended June 30, 2061, projected benefit payments exceed the fund’s projected fiduciary net position. Benefit payments projected after were discounted at the municipal bond rate of 3.69 percent (based on the weekly rate closest to, but not later than, the measurement date of the Fidelity “20-Year Municipal GO AA Index”). The resulting equivalent single discount rate of 5.40 percent for the Police and Fire Fund was determine d to give approximately the same present value of projected benefits when applied to all years of projected benefits as the present value of projected benefits using 6.50 percent applied to all years of projected benefits through the point of asset depletion and 3.69 percent thereafter. -64- NOTE 9 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE (CONTINUED) H. Pension Liability Sensitivity The following table 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: GERF discount rate City’s proportionate share of the GERF net pension liability PEPFF discount rate City’s proportionate share of the PEPFF net pension liability 2,676,119$ 17,695,496$ 6,839,912$ 8,056,509$ 11,692,763$ 5,100,502$ 5.50% 6.50% 7.50% 4.40% 5.40% 6.40% 1% Decrease in Discount Rate 1% Increase in Discount Rate 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. J. PERA Defined Benefit Pension Plan Totals Total net pension liabilities, deferred outflows and inflows of resources, and pension expense reported for PERA defined benefit pension plans as of and for the fiscal year ended December 31, 2022, are as follows: Deferred Deferred Net Pension Outflows of Inflows of Pension PERA Pension Plan Liability Resources Resources Expense GERF 5,100,502$ 1,535,164$ 77,793$ 761,687$ PEPFF 11,692,763 8,251,408 443,411 833,316 Total – all plans 16,793,265$ 9,786,572$ 521,204$ 1,595,003$ -65- NOTE 10 – DEFINED CONTRIBUTION PENSION PLAN Councilmembers of the City are covered by the Public Employees Defined Contribution Plan (PEDCP), a multiple-employer deferred compensation plan administered by the PERA. The PEDCP is a tax qualified plan under Section 401(a) of the IRC, and all contributions by or on behalf of employees are tax deferred until time of withdrawal. Plan benefits depend solely on amounts contributed to the plan plus investment earnings, less administrative expenses. Minnesota Statutes, Chapter 353D.03, specifies plan provisions, including the employee and employer contribution rates for those qualified personnel who elect to participate. An eligible elected official who decides to participate contributes 5.00 percent of their salary, which is matched by the elected official’s employer. For ambulance service personnel, employer contributions are determined by the employer, and for salaried employees, contributions must be a fixed percentage of salary. Employer contributions for volunteer personnel may be a unit value for each call or period of alert duty. Employees who are paid for their services may elect to make member contributions in an amount not to exceed the employer share. Employer and employee contributions are combined and used to purchase shares in one or more of the seven accounts of the Minnesota Supplemental Investment Fund. For administering the plan, the PERA receives 2.00 percent of employer contributions and 25 hundredths of 1.00 percent (0.25 percent) of the assets in each member’s account annually. Total contributions made by the City during fiscal year 2022 were: Required Rate for Employees Employee Employer Employee Employer and Employers 2,819$ 2,819$ 5.00%5.00%5.00% Contribution Amount Percentage of Covered Payroll NOTE 11 – OTHER POST-EMPLOYMENT BENEFITS (OPEB) PLAN A. Plan Description The City administers a single-employer defined benefit healthcare plan (“the Retiree Health Plan”). The plan provides healthcare insurance for eligible retirees and their eligible dependents through the City’s group health insurance plan, which covers both active and retired members. Benefit provisions are discussed and proposed by an insurance committee made up of employees from all employee groups (both represented and nonunion), with the final approval of the plan being given by the city manager. The benefit levels, employee contributions, and employer contributions are governed by the City and can be amended by the City. The Retiree Health Plan does not issue a publicly available financial report. At December 31, 2020, the following employees were covered by the benefit terms: Retirees and beneficiaries receiving benefits 3 Active plan members 91 Total members 94 -66- NOTE 11 – OTHER POST-EMPLOYMENT BENEFITS (OPEB) PLAN (CONTINUED) B. Funding Policy All retirees of the City have the option under state law to continue their medical insurance coverage through the City from the time of retirement until the employee reaches the age of eligibility for Medicare. For members of all employee groups, the retiree must pay the full premium to continue coverage for medical insurance. The City is legally required to include any retirees for whom it provides health insurance coverage in the same insurance pool as its active employees. Consequently, participating retirees are considered to receive a secondary benefit know as an “implicit rate subsidy.” This benefit relates to the assumption that the retiree is receiving a more favorable premium rate than they would otherwise be able to obtain if purchasing insurance on their own, due to being included in the same pool with the City’s younger and statistically healthier active employees. Contribution requirements are set by the City annually on a pay-as-you-go basis. The City contributes none of the cost of current year premiums for eligible retired plan members and their dependents, except for the implicit rate subsidy described above. For fiscal year 2022, the City contributed $38,102 to the Retiree Health Plan. C. Actuarial Methods and Assumptions The City’s total OPEB liability of $813,919 was measured as of December 31, 2022, and the total OPEB liability used to calculate the total OPEB liability was determined by an actuarial valuation as of December 31, 2020, using the entry-age normal cost method. Liability gains or losses and plan changes are recognized immediately in accordance with GASB Statement No. 75 alternative measurement method requirements. Consequently, there are no deferred outflows of resources or deferred inflows of resources related to OPEB at year-end. The total OPEB liability in the December 31, 2022 valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified: Discount rate 4.05% Expected long-term investment return 4.05% 20-year municipal bond yield 4.05% Inflation rate 2.50% Healthcare cost trend rate 6.20% in 2022, grading to 3.90% Withdrawal, mortality, and salary scale assumptions were based on those used to value pension liabilities for Minnesota city employees participating in the PERA GERF and PEPFF plans. The PERA pension plans base their assumptions on periodic experience studies as detailed earlier in these notes. Economic assumptions are based on input from a variety of published sources of historical and projected future financial data. Each assumption was reviewed for reasonableness with the source information , as well as for consistency with the other economic assumptions. Since the plan is not funded by an irrevocable trust, the discount rate is equal to the 20-year municipal bond yield rate of 4.05 percent, which was set by considering published rate information for 20-year high quality, tax-exempt, general obligation municipal bonds as of the measurement date. The discount rate used in the prior measurement date was 2.06 percent. Future retirees electing coverage is assumed to be 55 percent when a pre-age 65 subsidy is available, and 100 percent of all disabled in the line of duty members are assumed to elect coverage at retirement. Actual spouse elections are used for current and future retirees. All retirees are assumed to become Medicare eligible at age 65. -67- NOTE 11 – OTHER POST-EMPLOYMENT BENEFITS (OPEB) PLAN (CONTINUED) The following actuarial assumption changed since the previous valuation: • The discount rate was changed from 2.06 percent to 4.05 percent. D. Changes in the Total OPEB Liability Total OPEB Liability Beginning balance – January 1, 2022 903,535$ Changes for the year Service cost 75,450 Interest 19,774 Changes of assumptions (146,738) Benefit payments (38,102) Total net changes (89,616) Ending balance – December 31, 2022 813,919$ E. Sensitivity of the Total OPEB Liability The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were calculated using a discount rate that is 1 percentage point lower or 1 percentage point higher than the current discount rate: Discount rate Total OPEB liability 884,438$ 749,537$ 3.05% 5.05% 1% Decrease in 1% Increase in Discount Rate Discount Rate Current Discount Rate 813,919$ 4.05% The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were calculated using a healthcare cost trend rate that is 1 percentage point lower or 1 percentage point higher than the current healthcare cost trend rate: Healthcare cost trend rate Total OPEB liability 7.20%, decreasing to 4.90% 716,374$ 929,179$ 813,919$ 1% Decrease in 1% Increase in Trend Rate Trend Rate Healthcare Cost Trend Rate Healthcare Cost Healthcare Cost 5.20%, decreasing to 2.90% 6.20%, decreasing to 3.90% -68- NOTE 12 – JOINT POWERS AGREEMENT AND JOINTLY CONTROLLED ORGANIZATION A. Joint Water Commission (JWC) The City is a member of a joint powers agreement, together with the cities of Crystal and Golden Valley, which established a JWC. The JWC was created in 1963 to provide for the creation and maintenance of a joint water supply, storage, and distribution system through which water purchased from the City of Minneapolis can be supplied to the population of the member cities. Each member city is entitled to appoint one member to the JWC. Original construction costs were allocated to the member cities based on percentages agreed upon in the joint powers agreement. All subsequent operating and maintenance costs are apportioned to and paid by each member city on the basis of water usage. Under the terms of the joint powers agreement, upon termination the accumulated assets of the JWC shall be divided amongst the member cities in a manner to be determined and unanimously approved by the member cities. Over the years, the costs of construction have been allocated among the member cities, generally on the basis of water purchased. These costs were expensed as incurred by the City in the cost of water purchased. The asset recorded in the Water Fund as an investment in the JWC for $168,509 represents the original contributions for working capital; however, the City’s share of subsequent construction costs is not determinable. Therefore, the City’s Water Fund has not recorded any subsequent amounts as an equity investment or contributed capital related to the JWC. The following financial information is from the JWC’s audited financial statements for the year ended December 31, 2021, the most recent information available at the date of this report, which are available at Golden Valley City Hall: Total assets 20,370,794$ Total liabilities 940,445$ Net position 19,430,349$ Total revenue 9,851,904$ Total expenses 8,851,973$ Of the total revenues, $9,703,304 represented assessments paid by member cities. Of the total member assessments, $3,307,039, or 34.08 percent, was paid by the City. B. West Metro Fire-Rescue District By a resolution dated August 25, 1997, the City Council approved entering into an agreement by which a joint powers fire department would be established by merging the fire departments of New Hope and Crystal. A joint and cooperative agreement created the joint powers fire department effective January 2, 1998, and operation began in July 1998, under the name West Metro Fire-Rescue District (the District). The District is governed by a seven-member Board of Directors that includes one City Council member from each city. As required by the agreement, the City transferred fire department equipment to the District, while retaining its rights to these assets in the event of the District’s dissolution. The equipment had a net book value of $374,558. The following financial information is taken from the District’s audited financial statements for the year ended December 31, 2022: Total assets 6,501,284$ Total deferred outflows of resources 2,015,828$ Total liabilities 6,758,897$ Total deferred inflows of resources 29,265$ Net position 1,728,950$ Total revenue 3,160,521$ Total expenses 3,358,851$ -69- NOTE 12 – JOINT POWERS AGREEMENT AND JOINTLY CONTROLLED ORGANIZATION (CONTINUED) The City’s equity interest and its share of the net income (loss) of the District are added to the value of the “Investment in Joint Venture” in the government-wide financial statement under governmental activities. As of December 31, 2022, the amount reported as investment in joint venture was $874,330. According to a formula in the agreement, the City’s share of the District’s budget is 51.0 percent for 2022, and city payments to the District totaled $1,418,222. The District’s financial statements are available at the District office located at: 4251 Xylon Avenue North, New Hope, Minnesota 55428. C. Shingle Creek Watershed Management Commission (SCWMC) The City is one of nine member cities of the SCWMC, a joint powers organi zation formed to assist its members’ preservation and use of natural water storage and retention systems. The City ’s contribution to the SCWMC for its fiscal year ended December 31, 2022 was $30,144. D. Pets Under Police Security (PUPS) The City has entered into a joint and cooperative agreement with five other cities to create an organization, which provides efficient and economical impoundment of animals in a jointly owned and operated facility. The City incurred charges of $16,784 for these services in 2022. E. Hennepin Recycling Group (HRG) The City is party to a joint powers agreement with two other cities to create an organization to collect, recycle, and dispose of solid waste in compliance with the Minnesota Waste Management Act. HRG contracts for collection and recycling activities and the City is billed for services provided to its residents. In 2022, total charges of $249,456 were incurred for these services. F. Bassett Creek Watershed Management Commission (BCWMC) The City is one of nine member cities of the BCWMC, a joint powers organization formed to assist its members’ preservation and use of natural water storage and retention systems. Each member city is entitled to appoint one representative to the BCWMC Board. The nine-member Board develops a budget for the year each July 1. Each member city contributes funds to cover the budgeted costs of operations based half on the assessed valuation of all taxable property, and half on the total area each member city has within the boundaries of the watershed. Any capital costs incurred by the BCWMC are apportioned to the members based half on the real property valuation of each member city within the watershed, and half on the total area each member city has within the boundaries of the watershed. The City’s 2021 contribution to the BCWMC for its fiscal year ended January 31, 2022 was $29,464, representing 5.3 percent of member’s contributions for the year. -70- NOTE 13 – COMMITMENTS, CONTINGENCIES, AND SUBSEQUENT EVENTS A. Legal Claims The City generally follows the practice of recording liabilities resulting from claims and legal actions only when they become fixed or determinable in amount. Management does not anticipate any significant losses that would not be covered by insurance. B. Federal and State Receivables Amounts recorded or receivable from federal and state agencies are subject to agency audit and adjustment. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of claims which may be disallowed by the grantor agencies cannot be determined at this time, although the City expects such amounts, if any, to be immaterial. C. Tax Increment Districts The City’s tax increment districts are subject to review by the Office of the State Auditor. Any disallowed claims or misuse of tax increments could become a liability of the applicable fund. Management has indicated that it is not aware of any instances of noncompliance, which would have a material effect on the financial statements. D. Construction Commitments At December 31, 2022, the City is committed to various construction contracts for the improvement of city property. The City’s remaining commitment under these contracts is approximately $106,000 at year-end. E. Conduit Debt Obligations At times, the City has issued industrial revenue bonds 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 bonds are secured by the property financed and are payable solely from payments received on the underlying mortgage loans. Upon repayment of the bonds, ownership of the acquired facilities transfers to the private sector entity served by the bond issuance. The City is not obligated in any manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. As of December 31, 2022, there were five series of industrial revenue bonds outstanding. The original issue amounts totaled $12,910,000 and have been reduced through annual payments and partial call prepayments. The outstanding balance as of December 31, 2022 is undetermined. F. New Accounting Standard A new standard has been issued by the GASB that will result in significant changes in the reporting of subscription-based information technology arrangements (SBITAs) once it becomes effective for governmental entities. This standard will be adopted by the City beginning in 2023, and may require the restatement of certain balances reported as of December 31, 2022. The effects of this change have not yet been determined and are not reflected in these financial statements. THIS PAGE INTENTIONALLY LEFT BLANK REQUIRED SUPPLEMENTARY INFORMATION CITY OF NEW HOPE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2022 Proportionate Share of the City’s Net Pension Proportionate Liability and City’s Share of the the City’s Proportionate Plan Fiduciary State of Share of the Share of the Net Position City’s City’s Minnesota’s State of Net Pension as a PERA Fiscal Proportion Proportionate Proportionate Minnesota’s Liability as a Percentage Year-End Date of the Net Share of the Share of the Share of the City’s Percentage of of the Total (Measurement Pension Net Pension Net Pension Net Pension Covered Covered Pension Date)Liability Liability Liability Liability Payroll Payroll Liability 06/30/2015 0.0617% 3,197,614$ –$ 3,197,614$ 3,627,658$ 88.15% 78.20% 06/30/2016 0.0608% 4,936,658$ 64,481$ 5,001,139$ 3,643,308$ 135.50% 68.90% 06/30/2017 0.0588% 3,753,753$ 47,225$ 3,800,978$ 3,931,388$ 95.48% 75.90% 06/30/2018 0.0599% 3,323,006$ 109,063$ 3,432,069$ 3,998,415$ 83.11% 79.50% 06/30/2019 0.0609% 3,367,025$ 104,662$ 3,471,687$ 4,282,511$ 78.62% 80.20% 06/30/2020 0.0626% 3,753,156$ 115,680$ 3,868,836$ 4,463,850$ 84.08% 79.10% 06/30/2021 0.0645% 2,754,439$ 84,153$ 2,838,592$ 4,646,514$ 59.28% 87.00% 06/30/2022 0.0644% 5,100,502$ 149,558$ 5,250,060$ 4,808,376$ 106.08% 76.70% Contributions Contributions in Relation to as a Statutorily the Statutorily Contribution Percentage Required Required Deficiency Covered of Covered Contributions Contributions (Excess)Payroll Payroll 284,367$ 284,367$ –$ 3,791,560$ 7.50% 280,102$ 280,102$ –$ 3,734,693$ 7.50% 286,170$ 286,170$ –$ 3,815,600$ 7.50% 310,638$ 310,638$ –$ 4,141,835$ 7.50% 328,429$ 328,429$ –$ 4,379,059$ 7.50% 344,227$ 344,227$ –$ 4,589,689$ 7.50% 352,307$ 352,307$ –$ 4,697,399$ 7.50% 360,677$ 360,677$ –$ 4,809,002$ 7.50% Note: CITY OF NEW HOPE PERA – General Employees Retirement Fund Schedule of City’s and Nonemployer Proportionate Share of Net Pension Liability Year Ended December 31, 2022 Year Ended December 31, 2022 PERA – General Employees Retirement Fund Schedule of City Contributions City Fiscal Year-End Date 12/31/2015 12/31/2016 12/31/2017 12/31/2022 City Fiscal 12/31/2018 12/31/2016 12/31/2017 The City implemented GASB Statement No.68 in fiscal 2015 (using a June 30,2015 measurement date).This schedule is intended to present 10-year trend information. Additional years will be added as they become available. 12/31/2018 12/31/2020 12/31/2020 12/31/2019 12/31/2019 Year-End Date 12/31/2015 12/31/2021 12/31/2021 12/31/2022 -71- Proportionate Share of the City’s Net Pension Proportionate Liability and City’s Share of the the City’s Proportionate Plan Fiduciary State of Share of the Share of the Net Position City’s City’s Minnesota’s State of Net Pension as a PERA Fiscal Proportion Proportionate Proportionate Minnesota’s Liability as a Percentage Year-End Date of the Net Share of the Share of the Share of the City’s Percentage of of the Total (Measurement Pension Net Pension Net Pension Net Pension Covered Covered Pension Date)Liability Liability Liability Liability Payroll Payroll Liability 06/30/2015 0.2820% 3,204,180$ –$ 3,204,180$ 2,579,768$ 124.20% 86.60% 06/30/2016 0.2940% 11,798,732$ –$ 11,798,732$ 2,732,301$ 431.82% 63.90% 06/30/2017 0.2820% 3,807,336$ –$ 3,807,336$ 2,992,514$ 127.23% 85.40% 06/30/2018 0.2888% 3,078,311$ –$ 3,078,311$ 3,043,700$ 101.14% 88.80% 06/30/2019 0.3012% 3,206,578$ –$ 3,206,578$ 3,176,028$ 100.96% 89.30% 06/30/2020 0.2899% 3,821,192$ 90,012$ 3,911,204$ 3,271,692$ 116.80% 87.20% 06/30/2021 0.2550% 1,968,330$ 88,503$ 2,056,833$ 3,014,250$ 65.30% 93.70% 06/30/2022 0.2687% 11,692,763$ 510,917$ 12,203,680$ 3,264,285$ 358.20% 70.50% Contributions Contributions in Relation to as a Statutorily the Statutorily Contribution Percentage Required Required Deficiency Covered of Covered Contributions Contributions (Excess)Payroll Payroll 448,029$ 448,029$ –$ 2,765,611$ 16.20% 444,511$ 444,511$ –$ 2,743,893$ 16.20% 489,202$ 489,202$ –$ 3,019,768$ 16.20% 502,203$ 502,203$ –$ 3,100,017$ 16.20% 550,665$ 550,665$ –$ 3,248,759$ 16.95% 550,681$ 550,681$ –$ 3,111,189$ 17.70% 552,048$ 552,048$ –$ 3,118,916$ 17.70% 588,118$ 588,118$ –$ 3,322,513$ 17.70% Note: CITY OF NEW HOPE PERA – Public Employees Police and Fire Fund Schedule of City’s and Nonemployer Proportionate Share of Net Pension Liability Year Ended December 31, 2022 12/31/2021 12/31/2017 12/31/2019 12/31/2018 12/31/2018 12/31/2019 12/31/2020 12/31/2022 12/31/2022 12/31/2021 12/31/2020 The City implemented GASB Statement No.68 in fiscal 2015 (using a June 30,2015 measurement date).This schedule is intended to present 10-year trend information. Additional years will be added as they become available. City Fiscal Year-End Date 12/31/2015 12/31/2016 12/31/2017 City Fiscal Year-End Date 12/31/2015 12/31/2016 Year Ended December 31, 2022 Schedule of City Contributions PERA – Public Employees Police and Fire Fund -72- 2018 2019 2020 2021 2022 Total OPEB liability Service cost 64,269$ 72,745$ 89,655$ 102,913$ 75,450$ Interest 31,335 38,452 33,026 29,424 19,774 Differences between expected and actual experience – 81,871 27 (479,230) – Changes in assumptions (53,393) 74,709 71,306 (20,704) (146,738) Benefit payments (25,947) (16,942) (22,038) (27,550) (38,102) Net change in total OPEB liability 16,264 250,835 171,976 (395,147) (89,616) Total OPEB liability – beginning of year 859,607 875,871 1,126,706 1,298,682 903,535 Total OPEB liability – end of year 875,871$ 1,126,706$ 1,298,682$ 903,535$ 813,919$ Covered-employee payroll 6,400,000$ 7,100,000$ 7,400,000$ 9,400,000$ 8,900,000$ Total OPEB liability as a percentage of covered-employee payroll 13.69%15.87%17.55%9.61%9.15% Note 1: Note 2: Year Ended December 31, 2022 Schedule of Changes in the City’s Total Other Post-Employment Benefits Plan CITY OF NEW HOPE There are no plan assets accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No.75 to pay these benefits. OPEB Liability and Related Ratios The City implemented GASB Statement No.75 in fiscal 2018.This schedule is intended to present 10-year trend information. Additional years will be added as they become available. Fiscal Year Ended December 31, -73- CITY OF NEW HOPE Notes to Required Supplementary Information December 31, 2022 -74- PERA – GENERAL EMPLOYEES RETIREMENT FUND 2022 CHANGES IN ACTUARIAL ASSUMPTIONS • The mortality improvement scale was changed from Scale MP-2020 to Scale MP-2021. 2021 CHANGES IN ACTUARIAL ASSUMPTIONS • The investment return and single discount rates were changed from 7.50 percent to 6.50 percent, for financial reporting purposes. • The mortality improvement scale was changed from Scale MP-2019 to Scale MP-2020. 2020 CHANGES IN ACTUARIAL ASSUMPTIONS • The price inflation assumption was decreased from 2.50 percent to 2.25 percent. • The payroll growth assumption was decreased from 3.25 percent to 3.00 percent. • 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 percent less than previous rates. • Assumed rates of retirement were changed as recommended in the June 30, 2019 experience study. The changes result in more unreduced (normal) retirements and slightly fewer Rule of 90 and early retirements. • Assumed rates of termination were changed as recommended in the June 30, 2019 experience study. The new rates are based on service and are generally lower than the previous rates for years two through five, and slightly higher thereafter. • Assumed rates of disability were changed as recommended in the June 30, 2019 experience study. The change results in fewer predicted disability retirements for males and females. • The base mortality table for healthy annuitants and employees was changed from the RP-2014 Table to the Pub-2010 General Mortality Table, with adjustments. The base mortality table for disabled annuitants was changed from the RP-2014 Disabled Annuitant Mortality Table to the Pub-2010 General/Teacher Disabled Annuitant Mortality Table, with adjustments. • The mortality improvement scale was changed from MP-2018 to 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 100.00 percent joint and survivor option changed from 35.00 percent to 45.00 percent. The assumed number of married female new retirees electing the 100.00 percent joint and survivor option changed from 15.00 percent to 30.00 percent. The corresponding number of married new retirees electing the life annuity option was adjusted accordingly. 2020 CHANGES IN PLAN PROVISIONS • Augmentation for current privatized members was reduced to 2.00 percent for the period July 1, 2020 through December 31, 2023, and zero percent thereafter. Augmentation was eliminated for privatizations occurring after June 30, 2020. CITY OF NEW HOPE Notes to Required Supplementary Information (continued) December 31, 2022 -75- PERA – GENERAL EMPLOYEES RETIREMENT FUND (CONTINUED) 2019 CHANGES IN ACTUARIAL ASSUMPTIONS • The mortality projection scale was changed from MP-2017 to MP-2018. 2019 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 IN ACTUARIAL ASSUMPTIONS • The mortality projection scale was changed from MP-2015 to MP-2017. • The assumed benefit increase was changed from 1.00 percent per year through 2044, and 2.50 percent per year thereafter, to 1.25 percent per year. 2018 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 percent to 3.00 percent, beginning July 1, 2018. • Deferred augmentation was changed to zero percent, effective January 1, 2019. Augmentation that has already accrued for deferred members will still apply. • Contribution stabilizer provisions were repealed. • Post-retirement benefit increases were changed from 1.00 percent per year with a provision to increase to 2.50 percent upon attainment of 90.00 percent funding ratio to 50.00 percent of the Social Security Cost of Living Adjustment, not less than 1.00 percent and not more than 1.50 percent, beginning January 1, 2019. • For retirements on or after January 1, 2024, the first benefit increase is delayed until the retiree reaches normal retirement age; does not apply to Rule of 90 retirees, disability benefit recipients, or survivors. • Actuarial equivalent factors were updated to reflect revised mortality and interest assumptions. CITY OF NEW HOPE Notes to Required Supplementary Information (continued) December 31, 2022 -76- PERA – GENERAL EMPLOYEES RETIREMENT FUND (CONTINUED) 2017 CHANGES IN ACTUARIAL ASSUMPTIONS • The Combined Service Annuity (CSA) loads were changed from 0.80 percent for active members and 60.00 percent for vested and nonvested deferred members. The revised CSA loads are now zero percent for active member liability, 15.00 percent for vested deferred member liability, and 3.00 percent for nonvested deferred member liability. • The assumed post-retirement benefit increase rate was changed from 1.00 percent per year for all years, to 1.00 percent per year through 2044, and 2.50 percent per year thereafter. 2017 CHANGES IN PLAN PROVISIONS • The state’s contribution for the Minneapolis Employees Retirement Fund equals $16.0 million in 2017 and 2018, and $6.0 million thereafter. • The Employer Supplemental Contribution for the Minneapolis Employees Retirement Fund changed from $21.0 million to $31.0 million in calendar years 2019 to 2031. The state’s contribution changed from $16.0 million to $6.0 million in calendar years 2019 to 2031. 2016 CHANGES IN ACTUARIAL ASSUMPTIONS • The assumed post-retirement benefit increase rate was changed from 1.00 percent per year through 2035, and 2.50 percent per year thereafter, to 1.00 percent per year for all years. • The assumed investment return was changed from 7.90 percent to 7.50 percent. The single discount rate changed from 7.90 percent to 7.50 percent. • Other assumptions were changed pursuant to the experience study June 30, 2015. The assumed future salary increases, payroll growth, and inflation were decreased by 0.25 percent to 3.25 percent for payroll growth, and 2.50 percent for inflation. 2015 CHANGES IN ACTUARIAL ASSUMPTIONS • The assumed post-retirement benefit increase rate was changed from 1.00 percent per year through 2030, and 2.50 percent per year thereafter, to 1.00 percent per year through 2035, and 2.50 percent per year thereafter. 2015 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 $892.0 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. CITY OF NEW HOPE Notes to Required Supplementary Information (continued) December 31, 2022 -77- PERA – PUBLIC EMPLOYEES POLICE AND FIRE FUND 2022 CHANGES IN ACTUARIAL ASSUMPTIONS • The mortality improvement scale was changed from Scale MP-2020 to Scale MP-2021. • This single discount rate changed from 6.50 percent to 5.40 percent. 2021 CHANGES IN ACTUARIAL ASSUMPTIONS • The investment return and single discount rates were changed from 7.50 percent to 6.50 percent, for financial reporting purposes. • The inflation assumption was changed from 2.50 percent to 2.25 percent. • The payroll growth assumption was changed from 3.25 percent to 3.00 percent. • 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 result 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 result in more assumed terminations. • Assumed rates of disability were increased for ages 25–44 and decreased for ages over 49. Overall, proposed rates result in more projected disabilities. • Assumed percent married for active female members was changed from 60 percent to 70 percent. Minor changes to form of payment assumptions were applied. 2020 CHANGES IN ACTUARIAL ASSUMPTIONS • The mortality projection scale was changed from MP-2018 to MP-2019. 2019 CHANGES IN ACTUARIAL ASSUMPTIONS • The mortality projection scale was changed from MP-2017 to MP-2018. CITY OF NEW HOPE Notes to Required Supplementary Information (continued) December 31, 2022 -78- PERA – PUBLIC EMPLOYEES POLICE AND FIRE FUND (CONTINUED) 2018 CHANGES IN ACTUARIAL ASSUMPTIONS • The mortality projection scale was changed from MP-2016 to MP-2017. 2018 CHANGES IN PLAN PROVISIONS • Post-retirement benefit increases were changed to 1.00 percent 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 100.00 percent funding, or July 1, 2048, if earlier. • Member contributions were changed from 10.80 percent to 11.30 percent of pay, effective January 1, 2019, and 11.80 percent of pay, effective January 1, 2020. • Employer contributions were changed from 16.20 percent to 16.95 percent of pay, effective January 1, 2019, and 17.70 percent of pay, effective January 1, 2020. • Interest credited on member contributions decreased from 4.00 percent to 3.00 percent, beginning July 1, 2018. • Deferred augmentation was changed to zero percent, 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 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 percent lower than the previous rates. • Assumed rates of retirement were changed, resulting in fewer retirements. • The CSA load was 30.00 percent for vested and nonvested deferred members. The CSA has been changed to 33.00 percent for vested members, and 2.00 percent for nonvested members. • The base mortality table for healthy annuitants was changed from the RP-2000 Fully Generational Table to the RP-2014 Fully Generational Table (with a base year of 2006), with male rates adjusted by a factor of 0.96. The mortality improvement scale was changed from Scale AA to Scale MP-2016. The base mortality table for disabled annuitants was changed from the RP-2000 Disabled Mortality Table to the mortality tables assumed for healthy retirees. • Assumed termination rates were decreased to 3.00 percent for the first three years of service. Rates beyond the select period of three years were adjusted, resultin g in more expected terminations overall. • Assumed percentage of married female members was decreased from 65.00 percent to 60.00 percent. • Assumed age difference was changed from separate assumptions for male members (wives assumed to be three years younger) and female members (husbands assumed to be four years older) to the assumption that males are two years older than females. • The assumed percentage of female members electing joint and survivor annuities was increased. • The assumed post-retirement benefit increase rate was changed from 1.00 percent for all years, to 1.00 percent per year through 2064, and 2.50 percent thereafter. • The single discount rate was changed from 5.60 percent per annum to 7.50 percent per annum. CITY OF NEW HOPE Notes to Required Supplementary Information (continued) December 31, 2022 -79- PERA – PUBLIC EMPLOYEES POLICE AND FIRE FUND (CONTINUED) 2016 CHANGES IN ACTUARIAL ASSUMPTIONS • The assumed post-retirement benefit increase rate was changed from 1.00 percent per year through 2037, and 2.50 percent per year thereafter, to 1.00 percent per year for all future years. • The assumed investment return was changed from 7.90 percent to 7.50 percent. • The single discount rate changed from 7.90 percent to 5.60 percent. • The assumed future salary increases, payroll growth, and inflation were decreased by 0.25 percent to 3.25 percent for payroll growth, and 2.50 percent for inflation. 2015 CHANGES IN ACTUARIAL ASSUMPTIONS • The assumed post-retirement benefit increase rate was changed from 1.00 percent per year through 2030, and 2.50 percent per year thereafter, to 1.00 percent per year through 2037, and 2.50 percent per year thereafter. 2015 CHANGES IN PLAN PROVISIONS • The post-retirement benefit increase to be paid after attainment of the 90.00 percent funding threshold was changed from inflation up to 2.50 percent, to a fixed rate of 2.50 percent. OTHER POST-EMPLOYMENT BENEFITS PLAN 2022 CHANGES IN ACTUARIAL ASSUMPTIONS • The discount rate was changed from 2.06 percent to 4.05 percent. 2021 CHANGES IN ACTUARIAL ASSUMPTIONS • The discount rate was changed from 2.12 percent to 2.06 percent. • Healthcare cost trend rates and per capita medical claims were updated based on published trend models and recent experience to better reflect future anticipated experience. • Withdrawal, mortality, and salary scale assumptions were updated to those used in the most recently published PERA, GERF, and PEPFF valuations. 2020 CHANGES IN ACTUARIAL ASSUMPTIONS • The discount rate was changed from 2.74 percent to 2.12 percent. • The payroll growth rate was changed from 3.50 percent to 3.25 percent. 2019 CHANGES IN ACTUARIAL ASSUMPTIONS • The discount rate was changed from 4.09 percent to 2.74 percent. 2018 CHANGES IN ACTUARIAL ASSUMPTIONS • The discount rate was changed from 3.44 percent to 4.09 percent. SUPPLEMENTARY INFORMATION CITY OF NEW HOPE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2022 Nonmajor Governmental Funds Total Nonmajor Special Capital Debt Governmental Revenue Projects Service Funds Assets Cash and temporary investments 375,569$ 7,167,349$ 3,323,035$ 10,865,953$ Receivables Accounts 26,478 – – 26,478 Loans 67,711 – – 67,711 Special assessments 6,591 43,269 – 49,860 Due from other funds – 75,000 – 75,000 Advances to other funds – 875,000 – 875,000 Total assets 476,349$ 8,160,618$ 3,323,035$ 11,960,002$ Liabilities Accounts and contracts payable 10,556$ 261,880$ –$ 272,436$ Due to other governments 20,788 – – 20,788 Total liabilities 31,344 261,880 – 293,224 Deferred inflows of resources Unavailable revenue – special assessments – 43,269 – 43,269 Fund balances Restricted for Public safety police expenditures 128,930 – – 128,930 Ice arena 5,236 – – 5,236 Capital improvements – 515,997 – 515,997 Debt service – – 3,323,035 3,323,035 Committed for Solid waste operations 218,782 – – 218,782 Economic development 92,057 – – 92,057 Assigned for City Hall improvements – 533,245 – 533,245 Public works facility improvements – 3,571,542 – 3,571,542 General improvements – 2,451,214 – 2,451,214 Capital equipment – 783,471 – 783,471 Total fund balances 445,005 7,855,469 3,323,035 11,623,509 Total liabilities, deferred inflows of resources, and fund balances 476,349$ 8,160,618$ 3,323,035$ 11,960,002$ December 31, 2022 Combining Balance Sheet CITY OF NEW HOPE -80- Total Nonmajor Special Capital Debt Governmental Revenue Projects Service Funds Revenues Taxes Property taxes –$ –$ 3,744,984$ 3,744,984$ Intergovernmental – 1,142,382 – 1,142,382 Charges for services 253,634 – – 253,634 Special assessments – 7,971 – 7,971 Investment earnings (charges)(12,987) (232,017) (38,734) (283,738) Miscellaneous 526 – – 526 Total revenues 241,173 918,336 3,706,250 4,865,759 Expenditures Current Public works 250,420 – – 250,420 Economic development 7,000 – – 7,000 Capital outlay General government – 32,202 – 32,202 Public works – 779,610 – 779,610 Culture and recreation – 74,058 – 74,058 Debt service Principal – – 2,196,124 2,196,124 Interest – – 1,280,716 1,280,716 Total expenditures 257,420 885,870 3,476,840 4,620,130 Excess (deficiency) of revenues over expenditures (16,247) 32,466 229,410 245,629 Other financing sources (uses) Transfers in 12,844 1,584,046 – 1,596,890 Transfers (out)– (741,664) – (741,664) Total other financing sources (uses)12,844 842,382 – 855,226 Net change in fund balances (3,403) 874,848 229,410 1,100,855 Fund balances, January 1 448,408 6,980,621 3,093,625 10,522,654 Fund balances, December 31 445,005$ 7,855,469$ 3,323,035$ 11,623,509$ CITY OF NEW HOPE Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances For the Year Ended December 31, 2022 -81- THIS PAGE INTENTIONALLY LEFT BLANK NONMAJOR SPECIAL REVENUE FUNDS Police Forfeitures Fund – This fund accounts for revenue received mainly from police fines and forfeitures, and is used for special police, fire, and parks/recreation projects. Solid Waste Management Fund – This fund accounts for grants and fees to be used to cover the cost of operations of the City’s solid waste management program. Ice Arena Endowment Fund – This fund is used to account for contributions and other receipts to be used for future capital needs and budget requirements of the New Hope Ice Arena. CEE Revolving Loan Fund – This fund is used to account for Center for Energy and Environment revolving loans. CITY OF NEW HOPE Nonmajor Special Revenue Funds Subcombining Balance Sheet December 31, 2022 9021 9016 9017 9018 Police Solid Waste Ice Arena CEE Revolving Forfeitures Management Endowment Loan Fund Total Assets Cash and temporary investments 128,930$ 206,448$ 5,236$ 34,955$ 375,569$ Receivables Accounts – 26,772 – (294) 26,478 Loans – – – 67,711 67,711 Special assessments – 6,591 – – 6,591 Total assets 128,930$ 239,811$ 5,236$ 102,372$ 476,349$ Liabilities Accounts and contracts payable –$ 241$ –$ 10,315$ 10,556$ Due to other governments – 20,788 – – 20,788 Total liabilities – 21,029 – 10,315 31,344 Fund balances Restricted for Public safety police expenditures 128,930$ –$ –$ –$ 128,930$ Ice arena – – 5,236 – 5,236 Committed for Solid waste operations – 218,782 – – 218,782 Economic development – – – 92,057 92,057 Total fund balances 128,930 218,782 5,236 92,057 445,005 Total liabilities and fund balances 128,930$ 239,811$ 5,236$ 102,372$ 476,349$ -82- CITY OF NEW HOPE Nonmajor Special Revenue Funds Subcombining Statement of Revenues, Expenditures, and Changes in Fund Balances For the Year Ended December 31, 2022 9021 9016 9017 9018 Police Solid Waste Ice Arena CEE Revolving Forfeitures Management Endowment Loan Fund Total Revenues Charges for services –$ 253,634$ –$ –$ 253,634$ Investment earnings (charges)(5,525) (7,874) (224) 636 (12,987) Investment earnings (charges)Miscellaneous – – – 526 526 Total revenues (5,525) 245,760 (224) 1,162 241,173 Expenditures Current Public works Other services and charges – 250,420 – – 250,420 Economic development Other services and charges – – – 7,000 7,000 Total expenditures – 250,420 – 7,000 257,420 Excess (deficiency) of revenues over expenditures (5,525) (4,660) (224) (5,838) (16,247) Other financing sources Transfers in – – – 12,844 12,844 Net change in fund balances (5,525) (4,660) (224) 7,006 (3,403) Fund balances, January 1 134,455 223,442 5,460 85,051 448,408 Fund balances, December 31 128,930$ 218,782$ 5,236$ 92,057$ 445,005$ -83- Original and Actual Over (Under) Final Budget Amounts Budget Revenues Charges for services 250,000$ 253,634$ 3,634$ Investment earnings (charges) 1,500 (7,874) (9,374) Total revenues 251,500 245,760 (5,740) Expenditures Current Public works Other services and charges 248,578 250,420 1,842 Net change in fund balances 2,922 (4,660) (7,582) Fund balances, January 1 223,442 223,442 – Fund balances, December 31 226,364$ 218,782$ (7,582)$ For the Year Ended December 31, 2022 Budget and Actual Schedule of Revenues, Expenditures, and Changes in Fund Balances – CITY OF NEW HOPE Special Revenue Fund – Solid Waste Management Fund -84- NONMAJOR CAPITAL PROJECTS FUNDS Capital Projects Funds account for proceeds from the sale of bonds and other revenue to be used for the purchase or construction of equipment and capital improvement facilities. Fire Capital Projects Fund – This fund accounts for the purchases of fire capital equipment. City Hall CIP Fund – This fund is used to account for the accumulation of resources for City Hall improvement projects. Park/Pool Improvement Project Fund – This fund is used to account for improvements to the City’s pool and water park facility. Public Works Facility CIP Fund – This fund is used to account for improvements to the City’s public works facility. Temporary Financing Fund – is used to account for various capital project and capital outlay purchases until permanent financing is acquired. 9010 9202 9234 9240 Park/Pool Public Works Fire City Hall Improvement Facility Capital Projects CIP Project CIP Assets Cash and temporary investments 783,471$ 672,902$ 516,046$ 3,693,716$ Receivables Special assessments – – – – Due from other funds – – – – Advances to other funds – – – – Total assets 783,471$ 672,902$ 516,046$ 3,693,716$ Liabilities Accounts and contracts payable –$ 139,657$ 49$ 122,174$ Deferred inflows of resources Unavailable revenue – special assessments – – – – Fund balances Restricted for Capital improvements – – 515,997 – Assigned for City Hall improvements – 533,245 – – Public works facility improvements – – – 3,571,542 General improvements – – – – Capital equipment 783,471 – – – Total fund balances 783,471 533,245 515,997 3,571,542 Total liabilities, deferred inflows of resources, and fund balances 783,471$ 672,902$ 516,046$ 3,693,716$ Subcombining Balance Sheet Nonmajor Capital Projects Funds CITY OF NEW HOPE December 31, 2022 -85- 9242 Temporary Financing Total 1,501,214$ 7,167,349$ 43,269 43,269 75,000 75,000 875,000 875,000 2,494,483$ 8,160,618$ –$ 261,880$ 43,269 43,269 – 515,997 – 533,245 – 3,571,542 2,451,214 2,451,214 – 783,471 2,451,214 7,855,469 2,494,483$ 8,160,618$ -86- 9010 9202 9234 9240 Park/Pool Public Works Fire City Hall Improvement Facility Capital Projects CIP Project CIP Revenues Intergovernmental Federal –$ –$ –$ 1,142,382$ Special assessments – – – – Investment earnings (charges)(33,573) (29,826) (333) (115,278) Total revenues (33,573) (29,826) (333) 1,027,104 Expenditures Capital outlay General government – 32,202 – – Public works – – – 779,610 Culture and recreation – – 74,058 – Total expenditures – 32,202 74,058 779,610 Excess (deficiency) of revenues over expenditures (33,573) (62,028) (74,391) 247,494 Other financing sources (uses) Transfers in – – – 1,584,046 Transfers (out)– – – – Total other financing sources (uses)– – – 1,584,046 Net change in fund balances (33,573) (62,028) (74,391) 1,831,540 Fund balances, January 1 817,044 595,273 590,388 1,740,002 Fund balances, December 31 783,471$ 533,245$ 515,997$ 3,571,542$ CITY OF NEW HOPE Nonmajor Capital Projects Funds Subcombining Statement of Revenues, Expenditures, and Changes in Fund Balances For the Year Ended December 31, 2022 -87- 9242 Temporary Financing Total –$ 1,142,382$ 7,971 7,971 (53,007) (232,017) (45,036) 918,336 – 32,202 – 779,610 – 74,058 – 885,870 (45,036) 32,466 – 1,584,046 (741,664) (741,664) (741,664) 842,382 (786,700) 874,848 3,237,914 6,980,621 2,451,214$ 7,855,469$ -88- THIS PAGE INTENTIONALLY LEFT BLANK NONMAJOR DEBT SERVICE FUNDS The Debt Service Funds are used to account for the payment of principal and interest on the City’s general obligation bonds. Revenues for this purpose include ad valorem property taxes, special assessments, investment income, and other revenue. 2015A G.O. Tax Increment Bonds – This fund accounts for revenue from property taxes and interest income to be used for the payment of principal and interest on the City’s 2015A G.O. Tax Increment Bonds. 2016A G.O. Improvement Bonds – This fund accounts for revenue from property taxes and interest income to be used for the payment of principal and interest on the City’s 2016A G.O. Improvement Bonds. 2015B G.O. Improvement Bonds – This fund accounts for revenue from property taxes and interest income to be used for the payment of principal and interest on the City’s 2015B G.O. Improvement Bonds. 2017A G.O. Improvement Bonds – This fund accounts for revenue from property taxes and interest income to be used for the payment of principal and interest on the City’s 2017A G.O. Improvement Bonds. 2018A G.O. Improvement Bonds – This fund accounts for revenue from property taxes and interest income to be used for the payment of principal and interest on the City’s 2018A G.O. Improvement Bonds. 2019A G.O. Improvement Bonds – This fund accounts for revenue from property taxes and interest income to be used for the payment of principal and interest on the City’s 2019A G.O. Improvement Bonds. 9144 9148 9149 9150 2015A 2016A 2015B 2017A G.O.G.O.G.O.G.O. Tax Increment Improvement Improvement Improvement Bonds Bonds Bonds Bonds Assets Cash and temporary investments 329,214$ 321,904$ 231,453$ 1,634,646$ Fund balances Restricted for debt service 329,214$ 321,904$ 231,453$ 1,634,646$ December 31, 2022 Subcombining Balance Sheet Nonmajor Debt Service Funds CITY OF NEW HOPE -89- 9151 9152 2018A 2019A G.O.G.O. Improvement Improvement Bonds Bonds Total 381,553$ 424,265$ 3,323,035$ 381,553$ 424,265$ 3,323,035$ -90- 9144 9148 9149 9150 2015A 2016A 2015B 2017A G.O.G.O.G.O.G.O. Tax Increment Improvement Improvement Improvement Bonds Bonds Bonds Bonds Revenues Property taxes 235,227$ 262,502$ 205,240$ 1,706,828$ Investment earnings (charges)(6,490) (5,504) (3,191) (18,678) Total revenues 228,737 256,998 202,049 1,688,150 Expenditures Debt service Principal 157,435 165,780 132,909 975,000 Interest and fiscal charges 47,969 68,663 39,378 625,400 Total expenditures 205,404 234,443 172,287 1,600,400 Net change in fund balances 23,333 22,555 29,762 87,750 Fund balances, January 1 305,881 299,349 201,691 1,546,896 Fund balances, December 31 329,214$ 321,904$ 231,453$ 1,634,646$ CITY OF NEW HOPE Nonmajor Debt Service Funds Subcombining Statement of Revenues, Expenditures, and Changes in Fund Balances For the Year Ended December 31, 2022 -91- 9151 9152 2018A 2019A G.O.G.O. Improvement Improvement Bonds Bonds Total 862,739$ 472,448$ 3,744,984$ (844) (4,027) (38,734) 861,895 468,421 3,706,250 490,000 275,000 2,196,124 328,381 170,925 1,280,716 818,381 445,925 3,476,840 43,514 22,496 229,410 338,039 401,769 3,093,625 381,553$ 424,265$ 3,323,035$ -92- 2021 Original and Actual Over (Under)Actual Final Budget Amounts Budget Amounts Revenues Taxes Property taxes 11,393,354$ 11,391,654$ (1,700)$ 10,914,572$ Franchise taxes 535,000 519,744 (15,256) 522,395 Total taxes 11,928,354 11,911,398 (16,956) 11,436,967 Licenses and permits Business regulatory licenses 74,820 76,461 1,641 78,111 Nonbusiness licenses and permits 254,750 270,410 15,660 320,976 Total licenses and permits 329,570 346,871 17,301 399,087 Intergovernmental Local government aid 866,642 866,708 66 861,726 Highway maintenance aid 230,000 304,014 74,014 213,954 Other federal, state, and local grants 107,900 147,675 39,775 1,241,183 State insurance premium tax 320,000 311,344 (8,656) 286,502 Total intergovernmental 1,524,542 1,629,741 105,199 2,603,365 Charges for services General government 164,250 136,886 (27,364) 194,542 Public safety 384,250 617,494 233,244 333,245 Public works 5,760 2,660 (3,100) 3,860 Culture and recreation 1,236,425 1,083,587 (152,838) 959,680 Total charges for services 1,790,685 1,840,627 49,942 1,491,327 Fines and forfeitures 200,000 187,219 (12,781) 185,603 Special assessments 40,000 29,868 (10,132) 32,210 Investment earnings (charges)50,000 (261,964) (311,964) (93,405) Miscellaneous 14,000 52,168 38,168 80,922 Total revenues 15,877,151 15,735,928 (141,223) 16,136,076 Expenditures Current General government Mayor and City Council Personnel services 61,666 61,916 250 61,068 Supplies 2,000 1,789 (211) 2,386 Other services and charges 39,683 38,636 (1,047) 42,413 Total Mayor and City Council 103,349 102,341 (1,008) 105,867 City Hall Supplies 18,000 19,840 1,840 19,403 Other services and charges 405,016 461,680 56,664 435,443 Total City Hall 423,016 481,520 58,504 454,846 Schedule of Revenues, Expenditures and 2022 CITY OF NEW HOPE General Fund Changes in Fund Balances – Budget and Actual For the Year Ended December 31, 2022 (With Comparative Actual Amounts for the Year Ended December 31, 2021) -93-(continued) Changes in Fund Balances – Budget and Actual (continued) For the Year Ended December 31, 2022 (With Comparative Actual Amounts for the Year Ended December 31, 2021) 2021 Original and Actual Over (Under)Actual Final Budget Amounts Budget Amounts Expenditures (continued) Current (continued) General government (continued) City manager Personnel services 438,389 437,750 (639) 430,602 Supplies 900 894 (6) 593 Other services and charges 24,564 33,827 9,263 22,591 Total city manager 463,853 472,471 8,618 453,786 Elections Personnel services 33,811 26,562 (7,249) – Supplies 2,500 2,257 (243) – Other services and charges 6,595 37,675 31,080 10,326 Total elections 42,906 66,494 23,588 10,326 Finance Personnel services 194,621 192,077 (2,544) 174,759 Supplies 1,350 1,659 309 710 Other services and charges 83,574 78,875 (4,699) 103,071 Total finance 279,545 272,611 (6,934) 278,540 Auditing Other services and charges 29,769 32,019 2,250 33,356 Assessing Other services and charges 172,000 172,000 – 165,000 Legal Other services and charges 20,000 38,499 18,499 16,901 Human resources Personnel services 276,781 294,843 18,062 293,314 Supplies 450 153 (297) 570 Other services and charges 42,801 36,365 (6,436) 31,542 Total human resources 320,032 331,361 11,329 325,426 Planning and zoning Personnel services 263,420 263,943 523 130,932 Supplies 300 166 (134) 414 Other services and charges 32,383 22,175 (10,208) 28,482 Total planning and zoning 296,103 286,284 (9,819) 159,828 Communication Personnel services 113,468 112,914 (554) 104,241 Supplies 2,240 2,813 573 6,095 Other services and charges 62,305 51,592 (10,713) 33,913 Total communication 178,013 167,319 (10,694) 144,249 Total general government 2,328,586 2,422,919 94,333 2,148,125 2022 CITY OF NEW HOPE General Fund Schedule of Revenues, Expenditures and -94-(continued) Changes in Fund Balances – Budget and Actual (continued) For the Year Ended December 31, 2022 (With Comparative Actual Amounts for the Year Ended December 31, 2021) 2021 Original and Actual Over (Under)Actual Final Budget Amounts Budget Amounts Expenditures (continued) Current (continued) General government (continued) Public safety Police Personnel services 5,645,753 5,270,019 (375,734) 5,025,038 Supplies 129,100 120,616 (8,484) 196,742 Other services and charges 1,116,403 1,216,358 99,955 1,233,360 Total police 6,891,256 6,606,993 (284,263) 6,455,140 Police reserves Supplies 2,100 6,187 4,087 1,097 Other services and charges 10,640 6,374 (4,266) 8,612 Total police reserves 12,740 12,561 (179) 9,709 Fire and safety Supplies 300 – (300) – Other services and charges 1,505,380 1,517,553 12,173 1,418,843 Total fire and safety 1,505,680 1,517,553 11,873 1,418,843 Animal control Personnel services 90,270 94,510 4,240 84,731 Supplies 600 1,524 924 262 Other services and charges 32,662 26,888 (5,774) 19,568 Total animal control 123,532 122,922 (610) 104,561 Protective inspection Personnel services 568,103 560,199 (7,904) 512,720 Supplies 2,200 1,299 (901) 1,447 Other services and charges 96,592 93,580 (3,012) 88,741 Total protective inspection 666,895 655,078 (11,817) 602,908 Total public safety 9,200,103 8,915,107 (284,996) 8,591,161 Public works Street maintenance Personnel services 639,801 664,587 24,786 592,485 Supplies 143,350 112,952 (30,398) 99,238 Other services and charges 775,778 1,046,310 270,532 917,788 Total street maintenance 1,558,929 1,823,849 264,920 1,609,511 Engineering Other services and charges 40,000 46,888 6,888 43,492 Total public works 1,598,929 1,870,737 271,808 1,653,003 CITY OF NEW HOPE General Fund Schedule of Revenues, Expenditures and 2022 -95-(continued) Changes in Fund Balances – Budget and Actual (continued) For the Year Ended December 31, 2022 (With Comparative Actual Amounts for the Year Ended December 31, 2021) 2021 Original and Actual Over (Under)Actual Final Budget Amounts Budget Amounts Expenditures (continued) Current (continued) Culture and recreation Recreation Personnel services 713,732 681,610 (32,122) 643,523 Supplies 118,800 122,743 3,943 84,108 Other services and charges 233,169 244,737 11,568 220,919 Total recreation 1,065,701 1,049,090 (16,611) 948,550 For the Year Ended December 31, 2021 Parks Personnel services 701,168 678,176 (22,992) 647,953 Supplies 38,250 33,194 (5,056) 33,376 Other services and charges 454,400 501,622 47,222 446,244 Total parks 1,193,818 1,212,992 19,174 1,127,573 Swimming pool Personnel services 459,457 449,909 (9,548) 331,813 Supplies 63,500 84,837 21,337 55,812 Other services and charges 191,699 218,453 26,754 165,705 Total swimming pool 714,656 753,199 38,543 553,330 Total culture and recreation 2,974,175 3,015,281 41,106 2,629,453 Total current expenditures 16,101,793 16,224,044 122,251 15,021,742 Capital outlay General government 1,000 766 (234) – Public safety 76,400 108,592 32,192 181,616 Total capital outlay 77,400 109,358 31,958 181,616 Total expenditures 16,179,193 16,333,402 154,209 15,203,358 Excess (deficiency) of revenues over expenditures (302,042) (597,474) (295,432) 932,718 Other financing sources (uses) Transfers inSale of capital assets – 12,145 12,145 6,800 Transfers in 302,042 802,040 499,998 450,672 Transfers (out)– (1,142,382) (1,142,382) (1,642,533) Total other financing sources (uses)302,042 (328,197) (630,239) (1,185,061) Net change in fund balances – (925,671) (925,671) (252,343) Fund balances, January 1 8,673,743 8,673,743 – 8,926,086 Fund balances, December 31 8,673,743$ 7,748,072$ (925,671)$ 8,673,743$ CITY OF NEW HOPE General Fund Schedule of Revenues, Expenditures and 2022 -96- THIS PAGE INTENTIONALLY LEFT BLANK INTERNAL SERVICE FUNDS Internal Service Funds are used to account for activities and services performed for other organizational units within the City. Charges to other city agencies are made to support these activities. Central Garage Fund – This fund is used to account for the rental of motor vehicles and other equipment to other departments. Employee Leave Fund – This fund accounts for the cost of providing leave time benefits to employees, which includes vacation, holiday, sick time, and personal leave. Funding is based on chargebacks to departments, based on a percentage of wages. Insurance Reserve Fund – This fund accounts for all insurance costs for the City. Funding is provided by chargebacks to departments by percentage of wages for health, dental, life, and disability insurance. Funding for general liability and property insurance is provided by chargebacks to departments , based on activities and the use of property. Information Technology Fund – This fund accounts for the City’s investment in, and operations of, computer networks, application and system software, internet access, data storage, and related activities. 9402 9408 9407 9410 Central Employee Insurance Information Garage Leave Reserve Technology Totals Assets Current assets Cash and temporary investments 6,851,426$ 2,176,047$ 618,925$ 821,106$ 10,467,504$ Receivables Accounts – – 10,511 – 10,511 Inventories 70,180 – – – 70,180 Total current assets 6,921,606 2,176,047 629,436 821,106 10,548,195 Noncurrent assets Capital assets Land 85,647 – – – 85,647 Buildings and structures 3,158,296 – – – 3,158,296 Vehicles and equipment 10,311,565 – – 448,352 10,759,917 Leased vehicles and equipment 328,079 – – – 328,079 Less accumulated depreciation/amortization (10,403,768) – – (358,977) (10,762,745) Total capital assets, net 3,479,819 – – 89,375 3,569,194 Total assets 10,401,425 2,176,047 629,436 910,481 14,117,389 Deferred outflows of resources Deferred pension resources 86,123 – – 7,215 93,338 Liabilities Current liabilities Accrued salaries payable 12,649 31,882 127,649 887 173,067 Accounts and contracts payable 61,525 5,034 91,705 30,089 188,353 Deposits payable – 7,259 – – 7,259 Due to other governments 671 – – – 671 Compensated absences payable, current portion – 86,302 – – 86,302 Leases payable, current portion 78,237 – – – 78,237 Total current liabilities 153,082 130,477 219,354 30,976 533,889 Noncurrent liabilities OPEB payable – – 700,562 – 700,562 Pension liability 286,138 – – 23,972 310,110 Compensated absences payable – 776,711 – – 776,711 Leases payable 189,078 – – – 189,078 Total noncurrent liabilities 475,216 776,711 700,562 23,972 1,976,461 Total liabilities 628,298 907,188 919,916 54,948 2,510,350 Deferred inflows of resources Deferred pension resources 4,364 – – 366 4,730 Net position Net investment in capital assets 3,212,504 – – 89,375 3,301,879 Unrestricted 6,642,382 1,268,859 (290,480) 773,007 8,393,768 Total net position 9,854,886$ 1,268,859$ (290,480)$ 862,382$ 11,695,647$ CITY OF NEW HOPE Internal Service Funds Combining Statement of Net Position December 31, 2022 -97- 9402 9408 9407 9410 Central Employee Insurance Information Garage Leave Reserve Technology Totals Operating revenues Billings to departments 2,023,632$ 739,392$ 27,125$ 979,632$ 3,769,781$ Other 131,439 – 98,714 105 230,258 Total operating revenues 2,155,071 739,392 125,839 979,737 4,000,039 Operating expenses Personnel services 389,564 467,403 – 47,074 904,041 Supplies 302,661 – – 25,557 328,218 Utilities 81,875 – – 48,233 130,108 Other services and charges 420,816 – 81,893 694,317 1,197,026 Depreciation/amortization 634,255 – – 23,283 657,538 Total operating expenses 1,829,171 467,403 81,893 838,464 3,216,931 Operating income 325,900 271,989 43,946 141,273 783,108 Nonoperating revenues (expenses) Investment earnings (charges)(291,148) – – (22,031) (313,179) Gain (loss) on sale of capital assets (2,907) – – – (2,907) Interest expense (12,413) – – – (12,413) Total nonoperating revenues (expenses)(306,468) – – (22,031) (328,499) Income before transfers 19,432 271,989 43,946 119,242 454,609 Transfers in – – – 200,000 200,000 Transfers (out)(37,428) – – (59,880) (97,308) Change in net position (17,996) 271,989 43,946 259,362 557,301 Net position, January 1 9,872,882 996,870 (334,426) 603,020 11,138,346 Net position, December 31 9,854,886$ 1,268,859$ (290,480)$ 862,382$ 11,695,647$ For the Year Ended December 31, 2022 Changes in Net Position Combining Statement of Revenues, Expenses and Internal Service Funds CITY OF NEW HOPE -98- 9402 9408 9407 9410 Central Employee Insurance Information Garage Leave Reserve Technology Totals Cash flows from operating activities Receipts from interfund services provided 2,023,632$ 739,392$ 26,407$ 979,632$ 3,769,063$ Other operating receipts 131,439 – 98,714 105 230,258 Payments to suppliers (788,511) 5,034 895 (761,794) (1,544,376) Payments to employees (376,569) (480,488) (68,842) (29,918) (955,817) Net cash from operating activities 989,991 263,938 57,174 188,025 1,499,128 Cash flows from noncapital financing activities Transfers in – – – 200,000 200,000 Transfers (out)(37,428) – – (59,880) (97,308) Net cash from noncapital financing activities (37,428) – – 140,120 102,692 Cash flows from capital and related financing activities Acquisition capital assets (749,448) – – – (749,448) Principal paid on long-term debt (60,764) – – – (60,764) Interest paid on long-term debt (12,413) – – – (12,413) Net cash from capital and related financing activities (822,625) – – – (822,625) Investment earnings received (charged)(291,148) – – (22,031) (313,179) Net increase in cash and cash equivalents (161,210) 263,938 57,174 306,114 466,016 Cash and cash equivalents, January 1 7,012,636 1,912,109 561,751 514,992 10,001,488 Cash and cash equivalents, December 31 6,851,426$ 2,176,047$ 618,925$ 821,106$ 10,467,504$ Reconciliation of operating income to net cash from operating activities Operating income 325,900$ 271,989$ 43,946$ 141,273$ 783,108$ Adjustments to reconcile operating income to net cash from operating activities Depreciation/amortization 634,255 – – 23,283 657,538 (Increase) decrease in assets Accounts receivable – – (718) – (718) Inventories (5,978) – – – (5,978) (Increase) decrease in deferred outflows of resources Deferred pension resources 31,046 – – (7,215) 23,831 Increase (decrease) in liabilities Accounts and contracts payable 22,821 5,034 82,788 6,313 116,956 Accrued salaries payable (1,960) (8,268) 29,872 33 19,677 Due to other governments (2) – – – (2) Deposits payable – 7,259 – – 7,259 Compensated absences payable – (12,076) – – (12,076) OPEB payable – – (98,714) – (98,714) Pension liability 126,381 – – 23,972 150,353 Increase (decrease) in deferred inflows of resources Deferred pension resources (142,472) – – 366 (142,106) Net cash from operating activities 989,991$ 263,938$ 57,174$ 188,025$ 1,499,128$ Schedule of noncash capital and related financing activities Capital assets acquired through leases payable 231,093$ –$ –$ –$ 231,093$ Net book value of capital assets disposals 2,907$ –$ –$ –$ 2,907$ CITY OF NEW HOPE Cash flows from investing activities For the Year Ended December 31, 2022 Combining Statement of Cash Flows Internal Service Funds -99- STATISTICAL SECTION (UNAUDITED) CITY OF NEW HOPE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2022 THIS PAGE INTENTIONALLY LEFT BLANK Contents: Financial Trends Revenue Capacity Debt Capacity Demographic and Economic Information Operating Indicators Source: Unless otherwise noted, the information in these schedules is derived from the ACFR for the relevant year. STATISTICAL SECTION (UNAUDITED) This part of the City of New Hope,Minnesota’s (the City)Annual Comprehensive Financial Report (ACFR)presents detailed information as a context for understanding what the information in the financial statements,note disclosures,and required supplementary information says about the City’s overall financial health. These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time. These schedules contain information to help the reader assess the City’s most significant revenue source,including the property tax and utility revenue. These schedules 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. These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place. These schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the City provides, and the activities it performs. Fiscal Year 2013 2014 2015 2016 Governmental activities Net investment in capital assets 30,509,373$ 26,305,906$ 27,549,276$ 29,951,754$ Restricted 1,619,394 5,680,117 5,917,848 4,893,801 Unrestricted 23,704,592 23,130,558 14,623,043 11,081,824 Total governmental activities net position 55,833,359$ 55,116,581$ 48,090,167$ 45,927,379$ Business-type activities Net investment in capital assets 14,142,276$ 14,757,333$ 16,087,559$ 19,286,134$ Restricted 300,000 455,000 627,939 868,853 Unrestricted 2,496,008 1,798,707 (825,297) (1,839,376) Total business-type activities net position 16,938,284$ 17,011,040$ 15,890,201$ 18,315,611$ Primary government Net investment in capital assets 44,651,649$ 41,063,239$ 43,636,835$ 49,237,888$ Restricted 1,919,394 6,135,117 6,545,787 5,762,654 Unrestricted 26,200,600 24,929,265 13,797,746 9,242,448 Total primary government net position 72,771,643$ 72,127,621$ 63,980,368$ 64,242,990$ Note 1: Note 2: The City implemented GASB Statement No.68 in 2015,resulting in a restatement of beginning net position for the effects of implementing this standard. Net position for previous years has not been restated. The City implemented GASB Statement No.75 in 2018,resulting in a restatement of beginning net position for the effects of implementing this standard. Net position for previous years has not been restated. CITY OF NEW HOPE Net Position by Component Last Ten Fiscal Years (Accrual Basis of Accounting) -100- 2017 2018 2019 2020 2021 2022 27,747,845$ 27,888,417$ 30,139,510$ 31,359,813$ 34,985,781$ 37,045,401$ 6,207,578 6,000,843 6,628,138 7,740,859 8,598,311 9,539,926 11,728,807 14,384,257 16,720,142 19,716,696 23,427,177 22,780,655 45,684,230$ 48,273,517$ 53,487,790$ 58,817,368$ 67,011,269$ 69,365,982$ 18,663,872$ 18,783,898$ 19,315,353$ 20,127,288$ 22,607,046$ 24,036,351$ 1,031,673 1,160,680 1,358,401 1,560,053 – – 84,741 1,783,306 3,054,187 4,534,420 6,455,200 7,525,398 19,780,286$ 21,727,884$ 23,727,941$ 26,221,761$ 29,062,246$ 31,561,749$ 46,411,717$ 46,672,315$ 49,454,863$ 51,487,101$ 57,592,827$ 61,081,752$ 7,239,251 7,161,523 7,986,539 9,300,912 8,598,311 9,539,926 11,813,548 16,167,563 19,756,329 24,251,116 29,882,377 30,306,053 65,464,516$ 70,001,401$ 77,197,731$ 85,039,129$ 96,073,515$ 100,927,731$ -101- Fiscal Year 2013 2014 2015 2016 Expenses Governmental activities General government 1,837,194$ 1,976,377$ 1,700,133$ 1,871,736$ Public safety 6,238,779 6,795,836 7,258,504 9,463,124 Public works 1,790,669 2,467,618 4,229,077 3,143,421 Culture and recreation 1,946,243 2,145,224 2,223,152 2,405,905 Economic development 431,332 1,704,010 655,093 732,106 Interest and fiscal charges 289,009 140,321 269,284 323,326 Total governmental activities expenses 12,533,226 15,229,386 16,335,243 17,939,618 Business-type activities Sewer 2,310,604 1,976,864 2,458,724 2,187,006 Water 3,215,714 4,635,686 4,584,929 3,633,022 Golf course 262,894 304,059 291,695 341,776 Ice arena 957,784 877,826 880,581 949,438 Storm water 768,610 558,160 713,218 830,108 Street lighting 117,518 99,560 105,452 102,894 Total business-type activities expenses 7,633,124 8,452,155 9,034,599 8,044,244 Total primary government expenses 20,166,350$ 23,681,541$ 25,369,842$ 25,983,862$ Program revenues Governmental activities Charges for services General government 198,297$ 234,440$ 254,333$ 267,970$ Public safety 880,843 1,047,721 1,073,079 1,035,725 Public works 226,228 224,790 219,634 220,208 Culture and recreation 672,067 617,459 668,480 699,613 Economic development – – – 20,000 Operating grants and contributions 828,276 1,013,058 845,517 1,002,681 Capital grants and contributions 3,929,565 47,917 460,537 711,527 Total governmental activities program revenues 6,735,276 3,185,385 3,521,580 3,957,724 Business-type activities Charges for services Sewer utility 2,443,202 2,414,482 2,468,638 2,627,875 Water utility 3,460,008 3,634,873 3,777,108 4,124,346 Golf course 268,133 254,508 287,056 315,162 Ice arena 725,211 775,784 745,886 749,689 Storm water 963,167 948,537 981,723 1,037,429 Street lighting 125,604 123,060 128,890 137,525 Operating grants and contributions 306,520 444,484 33,032 159,898 Capital grants and contributions 225,300 11,469 194,590 1,394,822 Total business-type activities program revenues 8,517,145 8,607,197 8,616,923 10,546,746 Total primary government program revenues 15,252,421$ 11,792,582$ 12,138,503$ 14,504,470$ CITY OF NEW HOPE Changes in Net Position Last Ten Fiscal Years (Accrual Basis of Accounting) -102- 2017 2018 2019 2020 2021 2022 2,666,781$ 1,983,179$ 1,850,242$ 2,945,625$ 1,152,633$ 2,991,397$ 8,257,709 7,578,150 8,540,198 8,968,009 7,764,051 9,224,111 2,975,007 3,661,766 3,816,417 3,725,075 4,295,427 4,716,237 2,485,417 2,280,418 2,145,988 2,270,751 3,095,760 3,845,915 2,163,967 1,244,292 749,651 1,350,348 1,434,986 1,374,777 725,982 1,074,469 1,412,763 1,570,807 1,518,351 1,440,518 19,274,863 17,822,274 18,515,259 20,830,615 19,261,208 23,592,955 2,399,248 2,631,598 2,834,973 3,096,526 2,973,301 3,057,860 3,504,722 4,038,859 3,762,099 4,195,981 4,813,286 4,732,554 322,278 299,217 319,871 316,173 368,659 386,668 996,056 987,912 1,003,048 1,016,296 1,095,343 1,176,353 834,688 736,166 888,156 877,244 991,031 958,733 101,668 119,250 116,732 133,270 135,899 157,248 8,158,660 8,813,002 8,924,879 9,635,490 10,377,519 10,469,416 27,433,523$ 26,635,276$ 27,440,138$ 30,466,105$ 29,638,727$ 34,062,371$ 340,421$ 250,575$ 223,379$ 217,183$ 270,287$ 210,258$ 1,302,551 935,116 880,634 736,004 832,767 1,064,683 234,564 228,660 226,249 234,121 235,879 254,108 686,335 570,143 529,739 316,820 996,447 1,205,491 41,112 – – – – – 777,368 967,499 826,489 866,861 1,093,760 1,235,241 1,150,840 941,212 2,819,823 1,048,750 720,699 851,233 4,533,191 3,893,205 5,506,313 3,419,739 4,149,839 4,821,014 2,899,257 3,154,709 3,380,075 3,712,613 3,906,809 4,026,715 4,289,255 4,696,593 4,675,498 5,468,607 5,882,735 5,850,384 283,375 298,696 296,538 423,766 473,508 453,222 849,701 864,531 892,740 601,291 925,967 919,818 1,082,348 1,139,007 1,190,058 1,259,707 1,321,518 1,378,944 137,491 144,582 152,975 161,866 170,656 178,120 27,568 327,335 14,308 110,331 146,755 108,135 58,237 14,203 28,824 12,922 13,475 13,756 9,627,232 10,639,656 10,631,016 11,751,103 12,841,423 12,929,094 14,160,423$ 14,532,861$ 16,137,329$ 15,170,842$ 16,991,262$ 17,750,108$ -103-(continued) Fiscal Year 2013 2014 2015 2016 Net (expense) revenue Governmental activities (5,797,950)$ (12,044,001)$ (12,813,663)$ (13,981,894)$ Business-type activities 884,021 155,042 (417,676) 2,502,502 Total primary government net expense (4,913,929)$ (11,888,959)$ (13,231,339)$ (11,479,392)$ General revenues and other changes in net position Governmental activities Property taxes 9,554,629$ 9,732,776$ 10,131,759$ 10,843,702$ Tax increments 511,924 537,871 430,879 492,584 Franchise taxes 438,834 438,541 442,556 447,248 Grants and contributions not restricted to specific programs 49,005 179,537 600,030 633,056 Unrestricted investment earnings (charges)198,658 324,498 331,417 377,960 Gain on sale of capital assets 37,201 – – – Transfers (317,987) 114,000 68,204 121,800 Total governmental activities 10,472,264 11,327,223 12,004,845 12,916,350 Business-type activities Unrestricted investment earnings (charges)7,508 31,714 35,700 44,708 Transfers 317,987 (114,000) (68,204) (121,800) Total business-type activities 325,495 (82,286) (32,504) (77,092) Total primary government 10,797,759$ 11,244,937$ 11,972,341$ 12,839,258$ Changes in net position Governmental activities 4,674,314$ (716,778)$ (808,818)$ (1,065,544)$ Business-type activities 1,209,516 72,756 (450,180) 2,425,410 Total primary government 5,883,830$ (644,022)$ (1,258,998)$ 1,359,866$ Note:The City implemented GASB Statement Nos.67 and 68 in fiscal 2015.The City implemented GASB Statement No.75 in fiscal 2018. Information has not been restated for prior years. (Accrual Basis of Accounting) CITY OF NEW HOPE Changes in Net Position (continued) Last Ten Fiscal Years -104- 2017 2018 2019 2020 2021 2022 (14,741,672)$ (13,929,069)$ (13,008,946)$ (17,410,876)$ (15,111,369)$ (18,771,941)$ 1,468,572 1,826,654 1,706,137 2,115,613 2,463,904 2,459,678 (13,273,100)$ (12,102,415)$ (11,302,809)$ (15,295,263)$ (12,647,465)$ (16,312,263)$ 11,929,597$ 12,941,920$ 15,265,428$ 16,821,240$ 17,357,910$ 18,203,975$ 841,098 1,112,753 1,317,803 1,918,857 2,118,199 2,219,677 912,357 945,244 957,448 958,162 962,395 959,744 628,119 697,895 803,035 2,497,630 3,155,397 905,573 531,240 798,557 1,412,308 781,304 (22,179) (838,869) 50,456 70,400 369,163 22,000 70,300 9,238 (19,110) (48,413) (144,624) (240,739) (336,752) (332,684) 14,873,757 16,518,356 19,980,561 22,758,454 23,305,270 21,126,654 36,811 72,531 149,296 137,468 39,829 (292,859) 19,110 48,413 144,624 240,739 336,752 332,684 55,921 120,944 293,920 378,207 376,581 39,825 14,929,678$ 16,639,300$ 20,274,481$ 23,136,661$ 23,681,851$ 21,166,479$ 132,085$ 2,589,287$ 6,971,615$ 5,347,578$ 8,193,901$ 2,354,713$ 1,524,493 1,947,598 2,000,057 2,493,820 2,840,485 2,499,503 1,656,578$ 4,536,885$ 8,971,672$ 7,841,398$ 11,034,386$ 4,854,216$ -105- THIS PAGE INTENTIONALLY LEFT BLANK Ad Valorem Property Taxes Tax Increments Franchise Taxes Total 9,554,629$ 511,924$ 438,834$ 10,505,387$ 9,732,776 537,871 438,541 10,709,188 10,131,759 430,879 442,556 11,005,194 10,843,702 492,584 447,248 11,783,534 11,929,597 841,098 912,357 13,683,052 12,941,920 1,112,753 945,244 14,999,917 15,265,428 1,317,803 957,448 17,540,679 16,821,240 1,918,857 958,162 19,698,259 17,357,910 2,118,199 962,395 20,438,504 18,203,975 2,219,677 959,744 21,383,396 Fiscal Year 2016 2013 2014 2015 2017 2018 2019 2020 2021 2022 CITY OF NEW HOPE Governmental Activities Tax Revenues by Source Last Ten Fiscal Years (Accrual Basis of Accounting) -106- Fiscal Year 2013 2014 2015 2016 General Fund Nonspendable 15,484$ 16,005$ 16,765$ 18,242$ Committed – – – – Unassigned 5,567,933 5,805,259 6,063,647 6,255,436 Total General Fund 5,583,417$ 5,821,264$ 6,080,412$ 6,273,678$ All other governmental funds Restricted –$ 5,687,949$ 8,069,238$ 7,772,782$ Committed 5,550,819 4,771,304 5,431,288 5,397,075 Assigned 4,511,073 7,839,792 5,496,484 4,958,094 Unassigned 8,204,338 (134,792) (226,356) (3,015,315) Total all other governmental funds 18,266,230$ 18,164,253$ 18,770,654$ 15,112,636$ Total all governmental funds 23,849,647$ 23,985,517$ 24,851,066$ 21,386,314$ CITY OF NEW HOPE Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified Accrual Basis of Accounting) -107- 2017 2018 2019 2020 2021 2022 17,617$ 18,763$ 22,980$ 24,499$ 49,680$ 12,957$ – – – – – 79,634 6,871,038 7,162,188 7,116,723 8,901,587 8,624,063 7,655,481 6,888,655$ 7,180,951$ 7,139,703$ 8,926,086$ 8,673,743$ 7,748,072$ 24,605,109$ 24,646,820$ 13,304,922$ 9,016,306$ 9,779,064$ 10,602,043$ 5,837,809 5,414,740 5,033,555 4,639,390 4,520,972 4,644,669 5,176,318 5,695,269 6,248,128 6,993,400 9,059,040 10,314,362 (4,178,684) (3,448,208) (2,475,320) (2,119,931) (1,978,033) (1,905,269) 31,440,552$ 32,308,621$ 22,111,285$ 18,529,165$ 21,381,043$ 23,655,805$ 38,329,207$ 39,489,572$ 29,250,988$ 27,455,251$ 30,054,786$ 31,403,877$ -108- Fiscal Year 2013 2014 2015 2016 Revenues Property taxes 9,531,663$ 9,718,800$ 10,145,204$ 10,868,985$ Tax increments 511,924 537,871 430,879 492,584 Franchise taxes 438,834 438,541 442,556 447,248 Licenses and permits 273,117 353,973 389,957 466,548 Intergovernmental 4,463,113 818,825 1,359,511 2,063,546 Charges for services 1,585,964 1,663,153 1,601,081 1,571,798 Fines and forfeits 239,201 215,585 237,591 191,960 Special assessments 178,335 98,617 38,417 173,158 Investment income (charges)178,217 248,013 274,116 304,252 Miscellaneous 111,443 129,980 202,057 42,103 Total revenues 17,511,811 14,223,358 15,121,369 16,622,182 Expenditures General government 1,571,701 1,668,474 1,688,752 1,872,436 Public safety 5,967,599 6,397,860 6,866,105 7,168,102 Public works 1,254,201 1,225,551 1,328,371 1,606,369 Culture and recreation 1,613,518 1,761,961 1,853,741 1,938,131 Economic development 582,621 298,825 498,479 588,167 Capital outlay 4,239,938 3,000,518 8,204,694 8,220,964 Debt service Principal retirement 340,000 350,000 405,000 415,000 Interest 306,462 212,025 131,530 257,661 Bond issuance – 2,200 114,607 58,188 Total expenditures 15,876,040 14,917,414 21,091,279 22,125,018 Excess of revenues over (under) expenditures 1,635,771 (694,056) (5,969,910) (5,502,836) Other financing sources (uses) Transfers in 360,427 669,461 3,209,226 1,630,270 Sale of capital assets 1,460 4,055,382 – – Bonds issued – – – 2,824,075 Premiums on debt issues – – 171,339 107,553 Refunding bonds issued – – 6,470,000 – Payments to refunded bond escrow agent – (3,780,000) – – Transfers (out)(600,414) (477,461) (3,015,226) (1,426,570) Total other financing sources (uses)(238,527) 467,382 6,835,339 3,135,328 Net change in fund balances 1,397,244$ (226,674)$ 865,429$ (2,367,508)$ Debt service as a percentage of noncapital expenditures 5.6% 4.5% 3.5% 4.6% CITY OF NEW HOPE Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified Accrual Basis of Accounting) -109- 2017 2018 2019 2020 2021 2022 11,961,711$ 12,904,297$ 15,223,680$ 16,756,108$ 17,452,708$ 18,234,216$ 841,098 1,112,753 1,317,803 1,918,857 2,118,199 2,219,677 912,357 945,244 957,448 958,162 962,395 959,744 641,870 367,931 320,438 393,911 399,087 346,871 1,844,648 2,195,761 3,947,039 4,289,738 3,253,349 3,592,037 1,727,615 1,399,998 1,376,176 986,887 1,778,180 2,253,689 208,909 230,657 227,343 138,922 185,603 187,219 92,458 282,589 197,566 234,265 142,413 135,427 486,746 658,606 1,166,238 607,490 34,964 (525,690) 137,591 33,966 173,679 26,700 185,564 56,273 18,855,003 20,131,802 24,907,410 26,311,040 26,512,462 27,459,463 2,622,277 1,787,553 1,900,480 2,062,733 2,148,125 2,422,919 7,724,950 7,997,311 8,427,939 8,361,209 8,591,161 8,915,107 1,671,593 1,717,815 1,790,715 1,853,395 1,897,270 2,193,207 2,066,692 2,015,729 2,032,585 2,035,658 2,629,453 3,015,281 1,737,947 815,352 513,946 1,291,350 1,337,525 1,298,292 5,217,461 12,956,485 22,573,850 8,669,758 4,612,615 3,576,492 523,497 799,734 968,674 1,905,890 2,548,885 2,641,527 455,539 769,497 1,273,302 1,778,653 1,455,861 1,624,316 251,648 148,365 90,446 – 263,000 – 22,271,604 29,007,841 39,571,937 27,958,646 25,483,895 25,687,141 (3,416,601) (8,876,039) (14,664,527) (1,647,606) 1,028,567 1,772,322 4,305,261 788,458 2,162,676 418,661 5,784,869 2,498,930 – – 331,299 – 6,800 12,145 18,435,000 9,520,000 5,235,000 – – – 1,857,609 476,673 454,261 – – – – – – – – – – – – – – – (4,238,376) (748,726) (1,981,951) (566,792) (4,220,701) (2,934,306) 20,359,494 10,036,405 6,201,285 (148,131) 1,570,968 (423,231) 16,942,893$ 1,160,366$ (8,463,242)$ (1,795,737)$ 2,599,535$ 1,349,091$ 5.4% 9.2% 12.6% 18.7% 18.5% 18.7% -110- THIS PAGE INTENTIONALLY LEFT BLANK Ad Valorem Property Tax Tax Increments Franchise Tax Total 9,531,663$ 511,924$ 438,834$ 10,482,421$ 9,781,800 537,871 438,541 10,758,212 10,145,204 430,879 442,556 11,018,639 10,868,985 492,584 447,248 11,808,817 11,961,711 841,098 912,357 13,715,166 12,904,297 1,112,753 945,244 14,962,294 15,223,680 1,317,803 957,448 17,498,931 16,756,108 1,918,857 958,162 19,633,127 17,452,708 2,118,199 962,395 20,533,302 18,234,216 2,219,677 959,744 21,413,637 Fiscal Year 2016 2013 2014 2015 2017 2018 2019 2020 2021 2022 CITY OF NEW HOPE General Governmental Tax Revenues by Source Last Ten Fiscal Years (Modified Accrual Basis of Accounting) -111- Contributions Less Distributions Real Personal Total To Fiscal Tax From Fiscal Property Property Tax Capacity Disparities Increments Disparities 15,476,014$ 188,654$ 15,664,668$ (2,255,476)$ (366,752)$ 3,448,346$ 15,454,712 211,746 15,666,458 (2,154,731) (377,138) 3,437,911 16,638,481 221,628 16,860,109 (2,144,256) (338,715) 3,505,922 17,898,058 226,510 18,124,568 (2,277,639) (362,633) 3,437,652 19,196,854 242,052 19,438,906 (2,464,382) (604,222) 3,757,080 21,143,125 260,678 21,403,803 (2,655,561) (810,429) 4,010,408 22,506,796 275,032 22,781,828 (2,870,420) (948,691) 4,111,736 25,019,326 276,748 25,296,074 (2,941,213) (1,378,781) 4,385,923 27,035,066 303,741 27,338,807 (3,317,874) (1,565,751) 4,630,371 28,558,297 162,232 28,720,529 (3,682,171) (1,634,255) 4,968,941 Note: Source: Property in the county is reassessed annually. Hennepin County Auditor/Treasure Department 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 CITY OF NEW HOPE Tax Capacity, Market Value, and Estimated Actual Value of Taxable Property Last Ten Fiscal Years Tax Capacity Fiscal Year Levy Collective in -112- Total Direct Estimated Net Tax Capacity Taxable Actual Tax Capacity Rate Market Value Market Value 16,490,786$ 58.812 1,223,862,183$ 1,336,539,900$ 91.57 % 16,572,500 58.599 1,235,267,314 1,346,449,200 91.74 17,883,060 55.978 1,334,517,728 1,440,652,000 92.63 18,921,948 57.405 1,430,939,117 1,534,397,300 93.26 20,127,382 59.931 1,535,054,114 1,636,865,900 93.78 21,948,221 58.589 1,697,092,365 1,792,927,900 94.65 23,074,453 67.990 1,831,436,951 1,921,182,700 95.33 25,362,003 66.089 2,021,382,123 2,106,273,300 95.97 27,085,553 63.940 2,177,389,934 2,257,016,100 96.47 28,373,044 64.323 2,308,596,615 2,382,189,700 96.91 Value as a Taxable Market Tax Capacity Actual Value Estimated Percentage of -113- Total Direct and General Debt City Hennepin ISD No. 281 Special Overlapping Levy Levy Total County Robbinsdale Districts Rates 57.802 1.010 58.812 49.461 32.347 10.933 151.553 57.622 0.977 58.599 49.959 34.777 11.307 154.642 55.073 0.905 55.978 46.398 33.226 10.561 146.163 56.364 1.041 57.405 45.356 33.833 10.432 147.026 56.906 3.025 59.931 44.087 31.612 10.214 145.844 54.643 3.946 58.589 42.808 31.957 9.052 142.406 56.539 11.451 67.990 41.861 29.909 8.885 148.645 51.374 14.715 66.089 41.084 26.447 8.376 141.996 50.186 13.754 63.940 38.210 25.529 8.597 136.276 51.115 13.208 64.323 38.535 26.507 8.742 138.107 Note: Source:Hennepin County Overlapping rates are those of local and county governments that apply to property owners within the City.Not all overlapping rates apply to all city property owners (e.g.,the rates for special districts apply only to the proportion of the government’s property owners whose property is located within the geographic boundaries of the special district). 2013 2014 2015 2016 2020 2021 2018 2019 2022 2017 CITY OF NEW HOPE Property Tax Rates Direct and Overlapping Governments Last Ten Fiscal Years Year Overlapping RatesDirect Rates – City of New Hope -114- Net Tax Net Tax Capacity Rank Capacity Rank Alatus New Hope, LLC 562,175$ 1 2.0 %–$ – – % STNL (New Hope), LLC 278,650 2 1.0 – – – Padagis US, LLC 242,450 3 0.9 – – – Lang Nelson Association 234,875 4 0.8 125,100 8 0.8 Allen Group, LLC 232,650 5 0.8 – – – FLS Properties 232,010 6 0.8 159,250 1 1.0 Oregon Estates Investment Co.228,213 7 0.8 – – – Broadway Lanel/Golle/Holmes 223,488 8 0.8 120,025 9 0.7 Omega Healthcare Investors 214,388 9 0.8 – – – Saint Therese Home, Inc. 213,268 10 0.8 155,900 2 0.9 Paddock Properties, Limited Partnership – – – 151,890 3 0.9 Geneva Management Services, LLC – – – 149,870 4 0.9 Cobalt Industrial Reit – – – 143,850 5 0.9 New Hope Distribution Center, LLC – – – 139,250 6 0.8 New Hope Property LLC – – – 135,888 7 0.8 AX TC Industrial, LLP – – – 119,250 10 0.7 Total 2,662,167$ 9.5 %1,400,273$ 8.4 % Source:Hennepin County/Treasurer Department Current Year and Nine Years Ago Principal Property Taxpayers CITY OF NEW HOPE Percentage of 2022 2013 Percentage of Applied Tax CapacityTaxpayerCapacity Applied Tax -115- THIS PAGE INTENTIONALLY LEFT BLANK Total Tax Collections in Levy for Subsequent Fiscal Year Amount (2)Years (3)Amount 9,570,808$ 9,429,858$ 98.53 %140,950$ 9,570,808$ 100.00 % 9,717,970 9,619,447 98.99 98,523 9,717,970 100.00 10,102,167 10,017,500 99.16 75,797 10,093,297 99.91 10,813,013 10,756,992 99.48 53,622 10,810,614 99.98 11,967,401 11,895,137 99.40 70,201 11,965,338 99.98 12,912,742 12,834,660 99.40 66,513 12,901,173 99.91 15,301,610 15,172,300 99.15 124,143 15,296,443 99.97 16,844,871 16,662,434 98.92 174,479 16,836,913 99.95 17,418,008 17,376,787 99.76 29,894 17,406,681 99.93 18,231,011 18,180,708 99.72 – 18,180,708 99.72 (1) (2) (3) 2020 Does not include tax increments levied and collected. Includes current year cancellations, abatements, and state paid tax credits. Includes county adjustments for prior year over collections, cancellations, and abatements. 2021 2022 2019 2018 Total Collections to Date Property Tax Levies and Collections (1) 2017 2015 Last Ten Fiscal Years of Levy Ended 2013 2016 2014 December 31, Percentage Collected Within the CITY OF NEW HOPE Fiscal Year of Levy Percentage Fiscal Year of the Levy -116- Business-Type Activities General G.O. Tax Lease General Obligation Increment Revenue Obligation Bonds Bonds Total Bonds Bonds 1,000,729$ 8,065,761$ 9,066,490$ 3,505,000$ –$ 863,620 4,066,223 4,929,843 3,505,000 – 2,898,167 8,250,291 11,148,458 3,505,000 1,831,607 5,682,679 7,968,655 13,651,334 3,505,000 3,934,522 25,713,493 7,687,463 33,400,956 3,505,000 3,833,158 35,323,386 7,140,876 42,464,262 3,505,000 3,757,852 40,433,000 6,582,397 47,015,397 3,505,000 3,509,802 38,930,476 6,005,590 44,936,066 3,505,000 3,285,833 36,866,522 5,354,862 42,221,384 – 4,897,991 34,618,361 4,809,530 39,427,891 – 4,409,426 (1) Note: Fiscal Year Details regarding the City’s outstanding debt can be found in the notes to basic financial statements. 2017 2013 2014 2015 2016 2018 2019 2020 2021 2022 CITY OF NEW HOPE Ratios of Outstanding Debt by Type Last Ten Fiscal Years See the Schedule of Demographic and Economic Statistics for personal income and population data. Governmental Activities -117- G.O.G.O. Tax Revenue Increment Total Primary Notes Bonds Total Government Per Capita (1) 2,723,628$ –$ 6,228,628$ 15,295,118$ 1.24 %732$ 2,352,553 – 5,857,553 10,787,396 0.86 518 2,151,635 1,587,602 9,075,844 20,224,302 1.49 953 1,950,071 1,586,242 10,975,835 24,627,169 1.75 1,140 1,748,533 1,584,964 10,671,655 44,072,611 3.03 2,046 1,540,021 1,494,575 10,297,448 52,761,710 3.46 2,421 1,326,532 1,401,536 9,742,870 56,758,267 3.57 2,537 1,111,126 1,307,253 9,209,212 54,145,278 3.22 2,463 889,935 1,210,406 6,998,332 49,219,716 2.84 2,251 747,679 1,112,308 6,269,413 45,697,304 2.44 2,089 Percentage Income (1) of Personal -118- Less Amounts General Restricted for Total Obligation Repaying Net Bonded Bonds Principal Debt Per Capita 11,790,118$ 345,010$ 11,445,108$ 0.935 %548$ 7,282,396 614,161 6,668,235 0.540 320 16,719,302 759,386 15,959,916 1.196 752 21,122,169 1,048,498 20,073,671 1.403 929 40,567,611 2,173,637 38,393,974 2.501 1,782 49,226,710 1,793,587 47,433,123 2.795 2,177 53,253,267 3,193,279 50,059,988 2.733 2,237 50,640,278 3,780,748 46,859,530 2.318 2,131 49,219,716 2,503,260 46,716,456 2.146 2,136 45,697,304 2,776,915 42,920,389 1.859 1,963 Note 1: Note 2: Note 3:Population data can be found in the Schedule of Demographic and Economic Statistics. 2014 2018 2019 2020 2015 2021 See the Schedule of Tax Capacity,Market Value,and Estimated Actual Value of Taxable Property for property value data. Fiscal Year Details regarding the City’s outstanding debt can be found in the notes to basic financial statements. 2016 2017 2013 of Property 2022 CITY OF NEW HOPE Ratios of General Bonded Debt Outstanding Last Ten Fiscal Years Taxable Value Estimated Actual Percentage of -119- Estimated Share of Debt Overlapping Outstanding Debt Direct debt City of New Hope*34,618,361$ 100.00 %34,618,361$ Overlapping debt Hennepin County 1,018,886,023 1.12 11,411,523 ISD No. 281, Robbinsdale 188,583,455 19.87 37,471,533 Three Rivers Park District 47,650,901 1.55 738,589 Hennepin Regional RR Authority 85,464,798 1.12 957,206 Metropolitan Council 83,059,397 0.61 506,662 Total overlapping debt 1,423,644,574$ 51,085,513 Total direct and overlapping debt 85,703,874$ * Excludes debt payable from tax increment revenue and enterprise revenue. Percentage Governmental Unit Source: Applicable (1) Note: (1)The percentages of overlapping debt applicable is estimated using taxable market property values.Applicable percentages were estimated by determining the portion of the county’s taxable market value that is within the City’s boundaries and dividing it by the county’s total taxable market value. Overlapping governments are those that coincide,at least in part,with the geographic boundaries of the City.This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the City.This process recognizes that,when considering the City’s ability to issue and repay long-term debt,the entire debt burden borne by the residents and businesses should be taken into account. However,this does not imply that every taxpayer is a resident and,therefore,responsible for repaying the debt of each overlapping government. Hennepin County Taxpayer Services CITY OF NEW HOPE Direct and Overlapping Governmental Activities Debt as of December 31, 2022 Estimated -120- Fiscal Year 2013 2014 2015 2016 Debt limit 36,715,865$ 37,058,019$ 40,035,532$ 42,928,174$ Total net debt applicable to the limit 839,948 696,627 2,719,528 5,497,493 Legal debt margin 35,875,917$ 36,361,392$ 37,316,004$ 37,430,681$ Total net debt applicable to the limit as a percentage of the debt limit 2.29% 1.88% 6.79% 12.81% Note:Under state finance law,the City’s outstanding general obligation debt should not exceed 3 percent of total market property value.By law,the general obligation debt subject to the limitation may be offset by amounts set aside for repaying general obligation bonds. CITY OF NEW HOPE Legal Debt Margin Information Last Ten Fiscal Years -121- 2017 2018 2019 2020 2021 2022 46,051,623$ 50,912,771$ 54,943,109$ 60,641,464$ 65,321,698$ 69,257,898$ 25,516,878 34,249,431 38,595,992 36,361,673 33,238,704 31,624,540 20,534,745$ 16,663,340$ 16,347,117$ 24,279,791$ 32,082,994$ 37,633,358$ 55.41% 67.27% 70.25% 59.96% 50.88% 45.66% Market value 2,308,596,615$ Debt limit (3 percent of market value)69,257,898 Debt applicable to limit General obligation bonds 34,618,361 Less amount available in debt service funds (2,993,821) Total net debt applicable to the limit 31,624,540 Legal debt margin 37,633,358$ Legal Debt Margin Calculation for Fiscal Year 2022 -122- (1)(2)Net Gross Operating Available Revenue Expenses Revenue Principal (4)Interest 7,901,855$ 6,573,932$ 1,327,923$ 344,000$ 98,588$ 300.04 % 7,887,948 7,270,310 617,638 371,000 103,685 130.12 8,039,067 7,925,903 113,164 201,000 97,854 37.87 8,738,270 6,629,232 2,109,038 202,000 172,262 563.52 9,181,674 6,850,851 2,330,823 293,503 228,142 446.82 10,247,826 7,479,247 2,768,579 394,266 232,928 441.42 10,292,470 7,408,536 2,883,934 515,326 251,673 376.00 11,287,052 8,203,328 3,083,724 525,110 245,526 400.15 12,227,593 8,563,424 3,664,169 2,197,368 166,584 155.00 12,011,441 8,908,298 3,103,143 715,473 143,036 361.46 (1) (2)Operating expenses exclude depreciation/amortization. (3)Revenues and expense include the Storm Water, Water Utility, Sewer Utility, and Ice Arena funds. (4)Excludes principal paid with refunding bond proceeds. Note: Last Ten Fiscal Years Pledged Revenue Coverage CITY OF NEW HOPE 2019 2020 2018 Fiscal Year Debt Service Coverage Revenue Bonds (3) 2014 2013 Details regarding the City’s outstanding debt can be found in the notes to basic financial statements.Operating expenses do not include interest. Gross revenues include interest and other nonoperating revenues. 2017 2016 2015 2021 2022 -123- Per Capita Personal Personal Median School Population (1)Income (2)Income (3)Age (4)Enrollment (5) 20,904 58,898$ 1,231,203,792$ 39.4 12,126 4.0 % 20,812 60,601 1,261,228,012 39.4 12,390 2.9 21,225 63,901 1,356,298,725 39.4 12,313 2.8 21,600 65,231 1,408,989,600 39.4 12,404 2.8 21,545 67,427 1,452,714,715 39.4 12,011 3.5 21,790 70,067 1,526,759,930 39.4 12,304 2.7 22,376 71,067 1,590,195,192 39.4 12,237 2.7 21,986 76,552 1,683,072,272 36.4 12,397 8.6 21,870 79,183 1,731,732,210 36.4 12,319 2.3 21,870 85,505 1,869,994,350 37.4 12,007 2.8 (1)Provided by the Metropolitan Council. The most recent year is an estimate. (2) (3) (4) (5) (6)Provided by the Bureau of Labor Statistics; U.S. Department of Labor. This figure is for all of Hennepin County. 2014 Calculated by multiplying the estimated population by the per capita personal income figure. Provided by Independent School District No. 281, Robbinsdale, Minnesota. U.S. Census Bureau. 2013 2015 2016 Provided by the Bureau of Economic Analysis; U.S. Department of Commerce. This figure is for all of Hennepin County. 2017 2018 2019 2020 2021 Sources: 2022 CITY OF NEW HOPE Rate (6) UnemploymentFiscal Demographic and Economic Statistics Last Ten Fiscal Years Year -124- THIS PAGE INTENTIONALLY LEFT BLANK Employees Rank Employees Rank ISD No. 281, Robbinsdale 1,792 1 16.3 %2,200 1 19.4 % Minnesota Masonic Home/ North Ridge Care Center 560 2 5.1 789 2 7.0 Hy-Vee, Inc.370 3 3.4 – – – Horwitz 348 4 3.2 – – – City of New Hope 338 5 3.1 – – – Padagis 315 6 2.9 – – – Saint Therese Home, Inc.286 7 2.6 650 3 5.7 YMCA 228 8 2.1 – – – Liberty Diversified International 200 9 1.8 200 7 1.8 Intermediate District No. 287 199 10 1.8 – – – Perrigo Company – – – 413 4 3.6 Welsh Navarre MN, LLC – – – 280 5 2.5 Coborn’s Delivers – – – 240 6 2.1 Dakota Growers Pasta – – – 200 8 1.8 Waymouth Farms, Inc.– – – 137 9 1.2 Parker – Hannifin Oildyne Division – – – 135 10 1.2 4,636 42.3 %5,244 46.3 % Source:Minnesota Department of Employment and Economic Development Employer Employment CITY OF NEW HOPE Employment of Total City Percentage 2013 Percentage Current Year and Nine Years Ago 2022 of Total City Principal Employers -125- Fiscal Year 2013 2014 2015 2016 Function General government 16 14 13 13 Public safety Police Officers 31 33 35 33 Civilians 7 7 9 9 Public works 24 24 23 24 Culture and recreation 7 7 7 8 Total 85 85 87 87 Source: Various city departments CITY OF NEW HOPE Full-Time Equivalent City Government Employees by Function Last Ten Fiscal Years -126- 2017 2018 2019 2020 2021 2022 16 17 17 17 17 17 34 34 34 34 33 33 10 11 10 10 9 11 24 24 24 24 24 23 7 7 7 8 8 9 91 93 92 93 91 93 -127- Fiscal Year 2013 2014 2015 2016 Function – – 12 3 600 1,330 2,882 3,025 Culture and recreation 4,565 3,121 2,746 3,343 7,442 5,734 5,815 6,043 144,000 122,478 124,777 127,865 Golf course Rounds of golf at the municipal course 16,782 16,431 18,175 20,375 Ice arena Hours of ice time rental 3,739 3,734 3,683 3,567 Water Water main breaks 30 27 21 19 Average daily consumption (thousands of gallons)1,682 1,571 1,559 1,588 Sewer Average daily treatment (thousands of gallons)1,500 2,200 1,670 1,800 Note: Source:Various city departments Public works CITY OF NEW HOPE Operating Indicators by Function Last Ten Fiscal Years Indicators are not available for the general government function. Attendance at sponsored events Street resurfacing (miles) Potholes repaired Program registration – adults Program registration – youth -128- 2017 2018 2019 2020 2021 2022 3 3 4 4 3 3 2,530 3,000 2,900 2,900 2,900 2,900 3,011 2,603 1,860 1,426 2,305 3,830 5,969 5,413 4,695 3,325 4,785 4,979 127,112 102,659 101,409 69,415 144,455 157,127 18,662 17,800 16,837 26,553 27,654 25,088 4,030 4,151 4,202 2,984 4,416 4,247 12 23 14 18 28 24 1,616 1,616 1,551 1,775 1,845 1,845 1,352 1,405 1,355 1,451 1,473 1,473 -129- Fiscal Year 2013 2014 2015 2016 Function Public safety Police stations 1 1 1 1 Fire stations 3 3 3 3 Public works Highways and streets 64.0 64.0 64.0 64.0 City streets (miles)8.5 8.5 8.5 8.5 State and county streets (miles)26.4 26.4 26.4 26.4 Sidewalks (miles)580.0 580.0 580.0 619.0 Streetlights 2.0 2.0 2.0 2.0 Railroad bridges 4.0 4.0 4.0 4.0 Culture and recreation Parks 23 23 23 23 Swimming pools Olympic 1 1 1 1 Recreational 1 1 1 1 Outdoor theatre 1 1 1 1 Tennis courts 17 17 17 17 Water Water main (miles)63 63 63 64 Fire hydrants 690 690 690 690 Maximum daily capacity 21,000,000 21,000,000 21,000,000 21,000,000 Sewer Sanitary sewer main (miles)74 74 74 75 Storm sewer lines (miles)56 56 56 56 Ice arenas 1 1 1 1 Golf courses 1 1 1 1 Source:Various city departments CITY OF NEW HOPE Capital Asset Statistics by Function Last Ten Fiscal Years -130- 2017 2018 2019 2020 2021 2022 1 1 1 1 1 1 3 3 3 3 3 3 64.0 64.0 64.0 64.8 64.8 64.8 8.5 8.5 8.5 8.5 8.5 8.5 27.0 27.0 27.0 27.3 27.3 27.3 619.0 619.0 630.0 630.0 630.0 630.0 2.0 2.0 2.0 2.0 98.0 98.0 4.0 4.0 4.0 4.0 4.0 4.0 23 23 23 23 23 23 1 – – – 1 1 1 – – – 1 1 1 1 – – 1 1 17 17 17 17 9 9 64 64 64 65 65 65 690 690 690 716 716 716 21,000,000 21,000,000 21,000,000 21,000,000 21,000,000 21,000,000 75 75 75 75 75 75 56 56 56 57 57 57 1 1 1 1 1 1 1 1 1 1 1 1 -131- THIS PAGE INTENTIONALLY LEFT BLANK   I:\RFA\City Manager\2023\Budget 2024\ws 062023\WS Budget 062023.docx   Request for Action  June 20, 2023    Approved by: Reece Bertholf, City Manager  Originating Department: City Manager  By: Reece Bertholf, City Manager    Agenda Title  Preliminary Discussion on 2024 Budget  Requested Action  Staff requests to begin discussions on the 2024 budget with the City Council. Topics staff would like to  discuss include general direction from the Council on goals and priorities, review of the budget schedule  and process, discussion of Central Garage replacement costs, major projects scheduled for 2024, cost of  living adjustments/insurance, Council salaries and other topics. Abdo has prepared the attached memo  summarizing several of the key items for budget consideration and excerpts have been incorporated into  this RFA.  Policy/Past Practice  In past years the City Council has provided general direction to staff regarding the budget, and Council and  staff have worked together through the summer/fall months to achieve a final budget for  adoption/implementation.  Background  A. Goals/Priorities  Staff requests that the Council briefly discuss any special goals or priorities that you have for the 2024  budget and provide direction to staff. Listed below are ideas from staff, and some of the goals/priorities  that are continued from 2023 such as redevelopment projects and infrastructure improvements.    1. Hold the line on spending; continue to provide existing services and programs with current resources.    2. Keep the general fund tax levy/property taxes as low as possible (levy limits are not in effect for 2024).    3. Continue to proactively pursue all outside funding opportunities for infrastructure and facility  improvements and other programs including public safety, parks and recreation, public works and  housing/redevelopment.    4. Implement 5% annual increase in street and park infrastructure levies to fund capital improvements  outlined in the Pavement Management and Long‐Term Financial Plan.     5. Staff is recommending that the city continue with the EDA levy for redevelopment purposes and an  HRA levy to provide additional funding for the scattered site housing program. Abdo and staff are  recommending that the Council consider implementing levies for long‐term capital improvements at  the police station/city hall, fire station #3 and the new aquatic park. Overall, the city’s debt service  levies will decrease for 2024.    Agenda Section Work Session Item Number  11.3      Request for Action, Page 2      6. Central Garage equipment replacement costs will be funded at 100% in the general fund and staff  recommends using LGA funding for that purpose (not general operations).     7. 2024 is a presidential election year with three elections resulting in an approximate $60,000 increase in  the elections budget, primarily for election judge wages. Law changes in the 2023 legislative session  will expand absentee voting in 2024. If any new council members are elected in 2024, appropriate  orientation and training will be provided.    8. The overall safety of the general public is always the top priority of the police department and  continuing an emphasis on building upon our relationships with residents through our community  engagement programs. Major CIP items include replacement of 21 portable radios, two (2) stalker  radar units, two (2) SWAT vests.    9. Continue support and coordination with West Metro Fire‐Rescue District, including emergency  preparedness and EOC, in partnership with city of Crystal; continue to support long‐term capital plan  based on major apparatus report. New Hope’s share of JPA budget to increase approximately $178,000  including annual lease payments for aerial and new engines and the two new staff. Continue to budget  annually for Station #3 improvements that are the city’s responsibility ($30,000 per year).     10. Redevelopment will continue to be a high priority with an emphasis on rejuvenating the single‐ family housing stock through the scattered site housing and curbside appeal reimbursement  programs. The community development department will actively explore other redevelopment  opportunities including the St. Therese Nursing Home multi‐phase renovation project expected to  occur in the near future.    11. Continue with infrastructure and environmental improvements; major CIP projects for 2024 include  street/water/sewer/storm water improvements in the Northwood East neighborhood, coordination  with MnDOT on the Bass Lake Road/62nd Avenue noise wall on TH 169, and coordination with  Hennepin County on 42nd and Boone Avenues signal and watermain replacement, trail, street lighting  and monument sign. Continue coordination on both 42nd and 36th Avenue TH 169 bridge replacements.  Plan for phase two public works building expansion. Continue coordination with watershed districts  and Northwood/Meadow Lake Associations and make scheduled equipment replacements.      12. In Parks and Recreation, operate the new aquatic facility for the fourth season. Park CIP projects  include lighting upgrades, miscellaneous concrete and trail work, minor court improvements,  addition of benches, and installation of outdoor fitness equipment. Improvements at the ice arena  include installation of a new drinking fountain, addition of gutters along the back and front corners,  replacement of HVAC components, and replacement of the Zamboni room garage doors. Golf course  improvements include cart path updates, updates to the clubhouse, and the start of a new 5‐year cart  lease. Continue movies and music in the parks at the performance center and continue to work with  OBMT to offer musical performances. Continue to offer a variety of programs and special events  including dance, gymnastics, playground programs, Young Mudder, and Safety Camp.    13. Continue Emerald Ash Borer program on public property and invasive species (buckthorn) removal  in parks.      Request for Action, Page 3      14. Continue contractual arrangement with Abdo for financial oversight, continue to implement  technological efficiencies on departmental basis to retrieve budget data, continue to update 10‐year  financial plan and monitor utility and enterprise fund operations. Continue to work on implementing  long‐term equipment schedule replacement program for all park and recreation facilities and prepare  plan to internally fund phase two public works building and site improvements. Assist with  evaluating and selecting a new Enterprise Resource Planning (ERP) system and to perform chart of  accounts mapping.      15. Continue contractual agreement with Solution Builders for IT services, continue replacing computers  as appropriate in order to keep up‐to‐date with technological capabilities and meet IT needs of staff.  In addition to the day‐to‐day operations of the city, some highlights of the IT budget include funding  for: the city’s share of replacing the LOGIS fiber optic network in 2024, moving to a new police record  management system in 2023 or 2024, annual renewal of the body worn camera software, and funding  for a website redesign.     16. Conduct city services survey to solicit feedback on city services/projects/issues, continue to  encourage/improve public participation in city affairs and promote inclusiveness, continue to promote  Nextdoor.com, update performance measurement report and SMART goals and conduct  commissioner bus tour and other public events.    17. Continue to update 10‐year pavement management and street infrastructure plans and monitor  curbside residential organics collection program.      18. Continue participation in Green Steps program and implement actions to potentially achieve higher  ranking in program.    19. Staff recommends incorporation of a 3% cost of living adjustment for employees and a 50/50 cost share  for employee insurance increases. Staff recommends that funding be budgeted to update the  compensation plan for non‐union employees.     B. Budget Schedule and Budget/Levy Adoption Process  Attached is the 2024 draft budget schedule and summary:    1.  June 20 Work Session Conducted tonight for general discussion/direction.  2.  Mid‐June to   early‐August  Dept. heads and city manager complete preliminary budgets;  city manager and Abdo meet with each dept. to review all  budgets line‐by‐line. Preliminary budgets compiled into  workbook.  3.  Aug. 21  Work Session  Budget notebooks distributed and initial discussion on general  fund tax‐supported budgets.  4.  Sept. 5  (if needed)  Due to the fact that the Council will need to agree on and  determine a preliminary maximum tax levy for the general  fund budgets by the Sept. 11 Council meeting, I am requesting  that we set aside the date of Tuesday, Sept. 5 (following Labor  Day) for another budget work session (if needed). If that date    Request for Action, Page 4      does not work, we can schedule another date prior to Sept. 11.  In the past this meeting has not been necessary.  5.  Sept. 11  Council Meeting  Preliminary maximum levy adopted by Council (statute  requires resolutions for City and EDA proposed levies to be  adopted by September 30). Council must announce the date of  the budget hearing for public input.  6.  September – November Continue to refine general fund budget and discuss all  enterprise and utility fund budgets.  7.  Sept. 18  Work Session  Discuss general fund budgets with dept heads/city manager/  Abdo.  8.  Oct. 16  Work Session  Discuss enterprise/utility fund/HRG budget with dept  heads/facility managers/Abdo/city manager.  9.  Nov. 20  work session Final review of all budgets prior to the budget public hearing.  10.   Nov. 27 at 6:30 pm  before regular council  meeting  Public input meeting to be held between Nov. 25 and Dec 28.  11.  Dec. 11 at 7:00 pm Adopt final budget and tax levy (statute requires cities to certify  final adopted tax levies by Dec. 30).    I will be asking Abdo to be in attendance at the budget work sessions. I would also recommend  department heads be in attendance at a work session when their budgets are discussed so they can explain  and answer questions about their respective budgets. I believe the Council will agree that there has been  a good dialogue with department heads over the past several years. Staff and Abdo will also be reviewing  the budget with the Citizens Advisory Commission in November for informational purposes.    C. Budget Format/Budget Hearing  The 2023 budget included the Council approved priorities for each department. The 2024 budget will  follow this same format, and the approved priorities will be updated as needed. Several years ago there  were changes in the truth‐in‐taxation (budget) process. Staff recommends holding the budget input  meeting on November 27 at 6:30 p.m. prior to the regular council meeting. Please advise if this is  acceptable to Council. The alternative would be to hold the budget hearing on Monday, December 4.  Council will be asked to adopt the final budget on December 11.    D. 10‐Year Financial Plan  Abdo presented the 10‐year planning model to Council in November of last year. The model is intended  to show stakeholders the results of current budget actions and provide scenarios for future actions at the  staff and Council level. This format integrates the current 10‐year capital plan and 2023 budget. This plan  provides information and analysis on the Enterprise and Internal Service Funds as well as the Street and  Park Infrastructure Funds.           Request for Action, Page 5      E. LGA  The MN House Research Department issued estimates for local government aid (LGA) under the current  law, MN Revenue has not certified these amounts yet. According to their estimate, New Hope is scheduled  to receive $1,306,156 in 2024 which is a $438,870 increase from the 2023 LGA amount of $867,286.     F. Central Garage Funding  The overall financial position of the Central Garage is strong ($6.8 million in case on December 31, 2022).  The total central garage charges to the General Fund for 2023 were $1,283,651. The proposed central garage  charges to the General Fund for 2024 are $1,523,961, or an increase of $240,310. The majority of this increase  ($212,607) is for the police department due to all the new vehicles purchased/leased in 2022. The building  replacement charge is set at $500,000 for 2024.     G. PERA Changes  In 2020, the city implemented the last step up in contribution rates from 2018 legislation. At this time,  contribution rates are expected to remain the same for 2024.     H. Other Legislative Initiatives  At this time, staff and Abdo are waiting for the law summaries to be published that highlight the legislative  initiatives that may impact the 2024 budget.    I. Administrative transfers  Administrative transfers are intended to repay the general fund for general administrative costs incurred  on behalf of other departments. In 2023, the general fund charged out $309,593 of administrative charges  to other city funds. Staff is proposing to increase the administrative charges by 2.5% for 2024, resulting in  revenue of $317,333 to the General Fund, an increase of $7,740 (see attached schedule).       J. IT Charges/Allocation  The city uses a hybrid approach to allocate the indirect charges associated with the IT fund.  The approach  utilizes information on phones, computers, employee counts and departmental expense budgets to  allocate out certain IT fund expenses. Direct departmental IT costs will continue to be a direct charge to  the benefitting department. In 2023, the IT fund charged out $718,382 to the General Fund. The proposed  IT charges to the General Fund for 2024 are $749,349, or an increase of $30,967.    K. Elections  2024 is an election year so there is an increase of approximately $60,000 in the election budget for election  costs, primarily for election judge wages. Funds are also budgeted for annual election machine  maintenance costs.     L. Council Salaries  In the Fall of 2022, the City Council approved an ordinance amendment for Council’s compensation for  years 2023 and 2024. The increase was 3% for 2023 and 2024, respectively. The increase was consistent with  the approved cost of living increase for 2023 and likely increase in 2024 for non‐union employees.          Request for Action, Page 6      M. Employee Compensation and Insurance  Please see the attached information from Director Johnson on employee compensation and medical  insurance increases. The city conducted a compensation analysis in 2017, and the City Council approved  a new step and grade plan in 2018. The new step and grade plan was approved to ensure that the city’s  overall compensation plan could be aligned with the market. To ensure that salaries do not fall behind  market, for preliminary budget planning purposes, staff is recommending the Council consider a 3% cost  of living adjustment in 2024 similar to the increases already approved for or being considered by the city’s  collective bargaining agreements with public works and police. Staff is also recommending that funding  be budgeted to update the compensation plan for non‐union employees in 2024, as market rate  adjustments were approved for both public works and police for 2023. Staff is recommending the usual  50/50 cost share regarding anticipated health insurance increases. Both wages and health insurance will  be discussed in more detail later this year after more details are available.    N. Proposed New Staff Positions  There are no new staff positions proposed for 2024.     O. Levy Limits  Per Abdo, levy limits are not in place for 2024. New Hope levy history is outlined below:     2019 Certified   Levy  2020 Certified  Levy  2021 Certified  Levy  2022 Certified  Levy  2023 Certified   Levy  Net Levy $12,422,208 $12,746,054 $13,305,820 $13,916,027 $14,700,762  EDA 300,000 348,000 365,000 153,000 160,650  HRA    417,000 437,850  Special Levies ‐ Debt 2,579,402 3,750,662 3,746,781 3,744,984 3,754,054  Total $15,301,610 $16,844,716 $17,417,601 $18,231,011 $19,053,316    P. Park Infrastructure Levy  In 2023, the Park Infrastructure levy was $925,185. This included a 5% increase to the regular park  infrastructure levy. For 2024, Abdo and staff are proposing a $946,444 levy for the Park Infrastructure  Fund. Of that amount, $446,444 will remain in the Park Infrastructure Fund to support capital outlay needs  and $500,000 will be transferred to the Ice Arena Fund. It is anticipated that the levy for the Ice Arena will  remain at $500,000 through 2028. See the attached levy history chart.    Q. Street Infrastructure Levy  In 2023, the Street Infrastructure levy was set at $1,698,622, representing a 5% increase from the prior year.  For 2024, Abdo and staff are proposing a $1,783,553 levy for the Street Infrastructure Fund. The levy will  be used to support capital outlay needs identified in the city’s ten‐year pavement management plan. See  the attached levy history chart.     R. EDA and HRA Levies  The city’s EDA and HRA levies are limited by a percentage of the city’s overall market value.  For 2024,  Abdo and staff estimate the EDA and HRA levies will be set at $168,683 and $459,743, respectively. This  represents a $8,033 increase in the EDA levy and a $21,893 increase in the HRA levy. See the attached total  City Levy Schedule.    Request for Action, Page 7      S. Debt Service Levies   In 2015, the city issued $5.960 million in General Obligation TIF Bonds (Series 2015A) for the City  Center project.  In 2024, the city will levy $235,017 for these bonds which is a decrease of $2,836  under the 2023 levy of $237,853.      In 2015, the city also issued $3.825 million in General Obligation Street Reconstruction Bonds (Series  2015B) for the streets south of Northwood Lake.  In 2024, the city will levy $206,685 for these bonds  which is a decrease of $2,060 under the 2023 levy of $208,745.     In 2016, the city issued $4.885 million in General Obligation Street Reconstruction Bonds (Series  2016A) for the streets north of Northwood Lake.  In 2024, the city will levy $259,352 for these bonds  which is a decrease of $4,357 under the 2023 levy of $263,709.      In 2017, the city issued $18.435 million in General Obligation Capital Improvement Plan Bonds  (Series 2017A) for the construction of a police department/city hall facility.  In 2024, the city will levy  $1,706,828 for the repayment of these bonds which is an increase of $1,313 from the 2023 levy of  $1,705,515.       In 2018, the city issued $9.52 million in General Obligation Tax Abatement Bonds (Series 2018A) for  the construction of a new 50 meter swimming pool and Civic Center Park improvements.  In 2024,  the city will levy $865,784 for the repayment of these bonds which is a decrease of $1,680 from the  2023 levy of $867,464.      In July of 2019, the city issued $5.235 million in General Obligation Tax Abatement Bonds (Series  2019A) for the construction of a new 50 meter swimming pool and Civic Center Park improvements.   It was the second and final phase of debt issuance for this project.  In 2024, the city will levy $468,668  for the repayment of these bonds which is a decrease of $2,100 from the 2023 levy of $470,768.      Overall, the total debt levies for the city in 2024 will decrease $11,720 over the total 2023 debt levies.    T. Preliminary Total City Levy  Abdo has prepared the attached draft preliminary total city tax levies incorporating an estimated general  fund levy increase of 5% (Attachment 1) and 7% (Attachment 2), along with street and park  infrastructure levies, EDA and HRA levies and debt service levies. In these scenarios no additional levy  was added for the CIP for city hall, fire station and swimming pool capital funds, rather there could be a  transfer from the general fund of $300,000.  This would put the general fund unassigned (available) fund  balance to 42.7% of the 2023 expenditure budget.      They have also prepared sample levy charges showing the addition of CIP levies for city hall, fire station  and swimming pool capital funds in the amounts of $100,000 for each CIP (Attachment #3). The Council  should discuss the initiation of these CIP levies.    U. City Levy Process  The following table illustrates the various timelines for required approval of the city and EDA/HRA levies.  The dates are estimates, as the final schedule has not yet been published.    Request for Action, Page 8        Due date* EDA and City levy process*  6/30/2023  The EDA/City must notify the County Auditor prior to July 1, 2023 of the intent to  have an EDA levy.  A letter must be sent stating that the EDA levy encompasses all  contiguous parcels in the City of New Hope.  The actual amount of the levy does  not need to be stated, only the intent to levy.  9/30/2023 The EDA must pass a resolution authorizing the proposed 2024 EDA levy.  9/30/2023  At one meeting, the City Council adopts the proposed property tax levy and  announces the time and place of a future City Council meeting at which the budget  and levy will be discussed and public input allowed, prior to final budget and levy  determination.  This public input meeting must occur after November 24, 2023 and  must start at or after 6:00 PM.  The time and place of the public input meeting  must be included in the minutes and must be filed with the County Auditor.  11/27/23 ‐ 12/28/23 EDA must pass a resolution approving the 2024 EDA levy  11/27/23 ‐ 12/28/23 City Council must hold a meeting to discuss the budget and property tax levy and,  before a final determination, all public input.  11/27/23 ‐ 12/28/23 City must pass a resolution approving the 2024 EDA levy and City levy  12/28/2023 City must file the certificate of compliance (form TNT) with the Department of  Revenue by December 28, 2023.  *These dates are preliminary as of June 12, 2023.  Attachments   2024 Budget Calendar   Departmental Budget Responsibilities   LGA   Central Garage Fund Equipment Operation and Replacement Charges   Administrative Charges   Insurance & Wages Memo   Street & Park Infrastructure Levies   Preliminary Total City Levy (three scenarios)    CALENDAR FOR 2024 BUDGET March, 2023 April, 2023 May 31 Insight budget template setup. Review Bud Wage, central garage, preliminary IT allocations. Budget Kick-off meeting: Insight training and final allocations for IT, central garage and Bud Wage. Insight will be open for budget entry. Bud Wage, IT and central garage allocations will already be input. June 20 work session Meet with City Council to review the legislative activity. Request Council input of budget priorities; define programs projects and priorities for budget inclusion, review West Metro’s proposed budget. June 30 Insight is closed for budget entry. July 5 Directors to print copies of budget reports and submit to CM. July 12 and 13 Initial review of departmental budgets with department staff, CM and Abdo. July 21 Directors finish budget narrative pages (City Clerk will enter budget summary % figures). Abdo will review final narrative pages on July 26. August 11 August 14 Budget books complete (distribute to Council at C Mtg so have for August w/s packet). Preliminary budget to Council. To be followed by additional work sessions during Sept/Oct/Nov. August 21 work session September 5 Preliminary general fund and levy discussions. Possible continuation of budget discussion if not settled on August 14. August 28 Council Meeting City Council adopts West Metro Fire-Rescue District budget request. Sept 11 Council Meeting City Council will adopt a proposed budget and certify a proposed property tax levy to the County Auditor for taxes payable in 2024. City Council will establish initial and continuation public hearing dates and publish as required. Meet compliance with Truth in Taxation legislation. By September 30 City Clerk sends preliminary tax levy to Hennepin County. Sept 18 work session Council reviews general fund budgets with city manager; dept heads, and Abdo. October 16 work session Review HRG programs and rates, discuss enterprise and utility fund budgets. November County mails notices of proposed property taxes to the owner of each individual parcel of property; notice includes budget hearing date. Nov 20 work session Final review of budget/presentation prior to public hearing. TBD (11/27 or 12/4) City will hold public hearing per date established at the Sept. 11 council meeting. November 13 week Abdo to work with city clerk on revising budget resolutions format Dec 11 Council Mtg Council adoption of budget and resolutions. City Clerk certifies copy of budget resolution to Hennepin County. Late December Summary of adopted budget available for public inspection. Post on website. Early January Publish summary budget data in Sun Post. Schedule of Departmental Budget Responsibility City Manager Mayor/Council City Manager Elections Finance/Auditing/Abdo Fire and Emergency Mgmt City Hall Assessing Debt Redemption Property/Liability Insurance Schedule Solid Waste Management Director of HR/Administrative Services Communications Information Technology/Solution Builders Personnel Wage & Benefits Schedule Human Resources Finance (personnel) Director of Community Development Legal Planning/Zoning Protective Inspections/Rental Inspections Community Development Grants HRA Administration EDA Director of Police Police Police Reserves Animal Control Director of Public Works Engineering Streets Street Lighting Sewer & Water Storm Water (Bassett and Shingle Creek Watersheds) Central Garage Equipment Rental Schedule Street Infrastructure Director of Parks & Recreation Recreation Parks Swimming Pool Golf Course Ice Arena Park Infrastructure All Department Heads Capital Projects General Fund Revenue I:/2024 Budget/Schedule of Departmental Budget Responsibility 6/14/23 Pay 2024 Proposed Local Government Aid Modify LGA Formula per HF1938; Increase Aid Amount by $80 million Compared to Pay 2023 Certified Local Government Aid and Pay 2024 Baseline Projected Local Government Aid Prepared by: Bjorn Arneson, SCRFA Analyst,bjorn.arneson@senate.mn Last revised: May 18, 2023 Local Government Aid (LGA) amounts payable in 2024 will be certified to qualifying cities no later than August 1, 2023, and will be paid on July 20, 2024, and December 26, 2024. The projected Pay 2024 amounts displayed below are the estimated amounts payable under current law (Minnesota Statutes Chapter 477A). The comparison columns in the table below display the change in aid between 2023 and 2024 under current law and as proposed. Pay 2023 Cert LGA Baseline Pay 2024 LGA Baseline Pay 2024 Chg from Pay 2023 Cert LGA Percent Change Per Capita Change Proposed Pay 2024 LGA Proposed Pay 2024 Chg from Pay 2023 Cert LGA Percent Change Per Capita Change Proposed Pay 2024 Chg from Pay 2024 Baseline Percent Change Per Capita Change State State Total 564,398,012 564,398,012 0 0.00 ‐0.84 644,398,012 80,000,000 14.17 15.87 80,000,000 14.17 16.71 Regions A. Metro 184,985,338 185,015,136 29,798 0.02 ‐0.49 214,744,627 29,759,289 16.09 9.07 29,729,491 16.07 9.56 B. Greater MN 379,412,674 379,382,876 ‐29,798 ‐0.01 ‐1.08 429,653,385 50,240,711 13.24 28.87 50,270,509 13.25 29.94 Metro Clusters 01M: Center Cities 147,359,424 147,418,089 58,665 0.04 ‐1.23 163,117,828 15,758,404 10.69 19.81 15,699,739 10.65 21.03 02M: Established Cities 14,278,663 14,249,735 ‐28,928 ‐0.20 ‐0.02 19,200,142 4,921,479 34.47 14.05 4,950,407 34.74 14.07 03M: Large Cities 0 4,528 4,528 NA 0.00 2,284,128 2,284,128 NA 2.23 2,279,600 ******2.23 04M: Fast Growing Suburbs 2,663,157 2,667,312 4,155 0.16 ‐0.32 3,446,755 783,598 29.42 3.82 779,443 29.22 4.14 05M: Growing High Income Cities 3,095,750 3,098,912 3,162 0.10 ‐0.05 4,280,927 1,185,177 38.28 2.40 1,182,015 38.14 2.45 06M: High Income Suburbs 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 07M: Small Residential Cities 17,588,344 17,576,560 ‐11,784 ‐0.07 ‐1.53 22,414,847 4,826,503 27.44 18.56 4,838,287 27.53 20.09 Greater MN Clusters 08G: Major Cities 48,965,168 48,985,147 19,979 0.04 0.39 56,056,817 7,091,649 14.48 25.97 7,071,670 14.44 25.58 09G: Regional Centers 100,600,436 100,478,228 ‐122,208 ‐0.12 ‐0.58 114,374,166 13,773,730 13.69 33.49 13,895,938 13.83 34.06 10G: Sub‐Regional Centers 13,355,110 13,356,278 1,168 0.01 ‐2.29 16,393,335 3,038,225 22.75 27.75 3,037,057 22.74 30.03 11G: Urban Fringe 10,564,397 10,576,662 12,265 0.12 ‐1.40 13,202,402 2,638,005 24.97 12.05 2,625,740 24.83 13.45 12G: High Growth Cities 8,012,711 8,019,354 6,643 0.08 ‐1.32 9,621,365 1,608,654 20.08 25.41 1,602,011 19.98 26.74 13G: Residential Communities 51,304,092 51,332,979 28,887 0.06 ‐1.15 58,057,465 6,753,373 13.16 25.69 6,724,486 13.10 26.84 14G: Rural Cities 130,547,742 130,601,954 54,212 0.04 1.79 144,048,745 13,501,003 10.34 44.09 13,446,791 10.30 42.30 15G: Rural Cities < 500 16,063,018 16,032,274 ‐30,744 ‐0.19 ‐0.68 17,899,090 1,836,072 11.43 26.08 1,866,816 11.64 26.76 1 (continued) Pay 2023 Cert LGA Baseline Pay 2024 LGA Baseline Pay 2024 Chg from Pay 2023 Cert LGA Percent Change Per Capita Change Proposed Pay 2024 LGA Proposed Pay 2024 Chg from Pay 2023 Cert LGA Percent Change Per Capita Change Proposed Pay 2024 Chg from Pay 2024 Baseline Percent Change Per Capita Change Cities ADA 694,942 695,293 351 0.05 5.08 770,149 75,207 10.82 48.63 74,856 10.77 43.55 ADAMS 282,625 282,718 93 0.03 ‐3.47 297,789 15,164 5.37 18.41 15,071 5.33 21.87 ADRIAN 451,208 451,355 147 0.03 0.76 482,002 30,794 6.82 26.47 30,647 6.79 25.71 AFTON 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 AITKIN 788,062 788,325 263 0.03 ‐4.51 859,582 71,520 9.08 27.93 71,257 9.04 32.45 AKELEY 93,582 93,648 66 0.07 ‐6.52 108,657 15,075 16.11 29.56 15,009 16.03 36.08 ALBANY 757,619 757,834 215 0.03 ‐2.06 837,049 79,430 10.48 26.21 79,215 10.45 28.27 ALBERT LEA 5,794,636 5,797,218 2,582 0.04 3.41 6,868,836 1,074,200 18.54 61.97 1,071,618 18.49 58.56 ALBERTA 20,237 19,317 ‐920 ‐4.55 ‐5.32 20,255 18 0.09 4.88 938 4.86 10.20 ALBERTVILLE 49,164 49,625 461 0.94 ‐0.02 258,858 209,694 426.52 26.14 209,233 421.63 26.16 ALDEN 212,437 212,516 79 0.04 5.21 227,931 15,494 7.29 32.02 15,415 7.25 26.81 ALDRICH 5,914 5,564 ‐350 ‐5.92 ‐10.00 5,564 ‐350 ‐5.92 ‐10.00 0 0.00 0.00 ALEXANDRIA 1,608,142 1,609,093 951 0.06 ‐2.65 1,910,945 302,803 18.83 17.90 301,852 18.76 20.55 ALPHA 36,944 36,950 6 0.02 ‐15.02 39,104 2,160 5.85 6.30 2,154 5.83 21.33 ALTURA 88,449 88,515 66 0.07 1.75 103,205 14,756 16.68 33.21 14,690 16.60 31.46 ALVARADO 91,942 92,015 73 0.08 0.19 108,287 16,345 17.78 42.13 16,272 17.68 41.94 AMBOY 164,759 164,860 101 0.06 1.93 184,651 19,892 12.07 39.13 19,791 12.00 37.20 ANDOVER 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 ANNANDALE 559,503 560,110 607 0.11 ‐2.65 678,227 118,724 21.22 32.23 118,117 21.09 34.87 ANOKA 2,089,456 2,090,391 935 0.04 ‐0.72 2,284,604 195,148 9.34 10.04 194,213 9.29 10.77 APPLE VALLEY 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 APPLETON 766,321 766,370 49 0.01 ‐7.38 784,782 18,461 2.41 5.67 18,412 2.40 13.05 ARCO 24,207 24,220 13 0.05 3.39 27,269 3,062 12.65 38.84 3,049 12.59 35.45 ARDEN HILLS 0 0 0 NA 0.00 121,471 121,471 NA 12.27 121,471 NA 12.27 ARGYLE 228,236 228,255 19 0.01 ‐2.27 234,353 6,117 2.68 8.88 6,098 2.67 11.15 ARLINGTON 813,723 814,058 335 0.04 ‐5.09 899,401 85,678 10.53 32.34 85,343 10.48 37.43 ASHBY 133,014 133,082 68 0.05 ‐1.06 148,182 15,168 11.40 31.00 15,100 11.35 32.06 ASKOV 91,374 91,410 36 0.04 ‐1.55 101,498 10,124 11.08 28.74 10,088 11.04 30.29 ATWATER 362,041 362,269 228 0.06 1.64 405,170 43,129 11.91 39.98 42,901 11.84 38.34 AUDUBON 141,547 141,647 100 0.07 2.92 160,930 19,383 13.69 37.72 19,283 13.61 34.81 AURORA 684,645 684,891 246 0.04 ‐2.27 741,728 57,083 8.34 31.40 56,837 8.30 33.67 AUSTIN 8,882,778 8,886,679 3,901 0.04 ‐3.93 9,793,547 910,769 10.25 30.31 906,868 10.20 34.23 AVOCA 21,920 20,820 ‐1,100 ‐5.02 ‐8.20 22,674 754 3.44 8.65 1,854 8.90 16.85 AVON 330,191 330,376 185 0.06 ‐3.48 376,118 45,927 13.91 24.29 45,742 13.85 27.77 BABBITT 494,305 494,738 433 0.09 3.64 530,686 36,381 7.36 29.61 35,948 7.27 25.97 BACKUS 30,658 30,678 20 0.07 ‐2.10 37,666 7,008 22.86 23.97 6,988 22.78 26.07 BADGER 121,386 121,470 84 0.07 2.86 139,390 18,004 14.83 45.03 17,920 14.75 42.16 BAGLEY 504,071 504,220 149 0.03 ‐2.61 537,008 32,937 6.53 22.73 32,788 6.50 25.34 BALATON 243,261 243,328 67 0.03 3.58 256,603 13,342 5.48 26.08 13,275 5.46 22.50 BARNESVILLE 869,036 869,423 387 0.04 ‐2.69 951,230 82,194 9.46 26.70 81,807 9.41 29.38 BARNUM 187,816 187,951 135 0.07 ‐2.21 211,719 23,903 12.73 35.82 23,768 12.65 38.03 BARRETT 89,181 89,216 35 0.04 ‐1.89 99,206 10,025 11.24 25.19 9,990 11.20 27.07 BARRY 1,406 1,246 ‐160 ‐11.38 ‐10.00 1,246 ‐160 ‐11.38 ‐10.00 0 0.00 0.00 BATTLE LAKE 113,130 113,182 52 0.05 0.52 123,031 9,901 8.75 12.06 9,849 8.70 11.53 2 (continued) Pay 2023 Cert LGA Baseline Pay 2024 LGA Baseline Pay 2024 Chg from Pay 2023 Cert LGA Percent Change Per Capita Change Proposed Pay 2024 LGA Proposed Pay 2024 Chg from Pay 2023 Cert LGA Percent Change Per Capita Change Proposed Pay 2024 Chg from Pay 2024 Baseline Percent Change Per Capita Change BAUDETTE 309,430 309,433 3 0.00 ‐1.32 312,657 3,227 1.04 2.01 3,224 1.04 3.32 BAXTER 0 0 0 NA 0.00 201,480 201,480 NA 22.61 201,480 NA 22.61 BAYPORT 640,798 641,603 805 0.13 8.45 774,470 133,672 20.86 43.18 132,867 20.71 34.73 BEARDSLEY 64,500 64,505 5 0.01 0.02 68,343 3,843 5.96 17.79 3,838 5.95 17.77 BEAVER BAY 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 BEAVER CREEK 57,779 57,805 26 0.04 0.83 65,899 8,120 14.05 29.84 8,094 14.00 29.01 BECKER 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 BEJOU 21,566 21,574 8 0.04 ‐14.33 23,858 2,292 10.63 11.33 2,284 10.59 25.66 BELGRADE 245,987 246,106 119 0.05 ‐0.74 265,512 19,525 7.94 25.48 19,406 7.89 26.22 BELLE PLAINE 601,642 602,278 636 0.11 0.33 730,451 128,809 21.41 17.71 128,173 21.28 17.38 BELLECHESTER 24,957 24,976 19 0.08 0.11 30,530 5,573 22.33 31.66 5,554 22.24 31.56 BELLINGHAM 48,747 47,267 ‐1,480 ‐3.04 ‐10.00 47,267 ‐1,480 ‐3.04 ‐10.00 0 0.00 0.00 BELTRAMI 17,807 16,937 ‐870 ‐4.89 ‐7.67 16,937 ‐870 ‐4.89 ‐7.67 0 0.00 0.00 BELVIEW 123,074 123,077 3 0.00 4.42 127,330 4,256 3.46 19.18 4,253 3.46 14.77 BEMIDJI 3,694,035 3,695,406 1,371 0.04 ‐9.50 4,027,132 333,097 9.02 12.40 331,726 8.98 21.90 BENA 31,264 31,286 22 0.07 ‐11.44 36,999 5,735 18.34 26.40 5,713 18.26 37.83 BENSON 1,257,602 1,258,592 990 0.08 ‐4.74 1,445,676 188,074 14.95 48.28 187,084 14.86 53.01 BERTHA 173,876 174,010 134 0.08 3.60 199,038 25,162 14.47 48.78 25,028 14.38 45.18 BETHEL 61,602 61,620 18 0.03 1.13 68,384 6,782 11.01 15.47 6,764 10.98 14.33 BIG FALLS 74,245 74,282 37 0.05 5.12 77,118 2,873 3.87 21.51 2,836 3.82 16.39 BIG LAKE 792,209 793,170 961 0.12 ‐2.59 877,751 85,542 10.80 4.36 84,581 10.66 6.95 BIGELOW 63,569 63,585 16 0.03 2.56 69,402 5,833 9.18 28.41 5,817 9.15 25.85 BIGFORK 113,046 113,093 47 0.04 0.83 125,075 12,029 10.64 30.86 11,982 10.59 30.03 BINGHAM LAKE 15,873 14,483 ‐1,390 ‐8.76 ‐11.67 14,483 ‐1,390 ‐8.76 ‐11.67 0 0.00 0.00 BIRCHWOOD 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 BIRD ISLAND 413,684 413,809 125 0.03 2.18 437,719 24,035 5.81 26.09 23,910 5.78 23.91 BISCAY 20,193 20,210 17 0.08 0.15 24,525 4,332 21.45 38.34 4,315 21.35 38.19 BIWABIK 251,206 251,312 106 0.04 0.38 271,564 20,358 8.10 21.48 20,252 8.06 21.10 BLACKDUCK 290,392 290,585 193 0.07 2.28 323,445 33,053 11.38 41.39 32,860 11.31 39.12 BLAINE 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 BLOMKEST 21,482 21,495 13 0.06 ‐0.93 25,691 4,209 19.59 27.81 4,196 19.52 28.74 BLOOMING PRAIRIE 756,319 756,513 194 0.03 3.23 810,630 54,311 7.18 30.87 54,117 7.15 27.64 BLOOMINGTON 0 0 0 NA 0.00 56,616 56,616 NA 0.62 56,616 NA 0.62 BLUE EARTH 2,104,825 2,105,997 1,172 0.06 3.94 2,329,834 225,009 10.69 74.84 223,837 10.63 70.90 BLUFFTON 43,000 43,018 18 0.04 2.06 49,017 6,017 13.99 30.90 5,999 13.95 28.84 BOCK 18,653 17,893 ‐760 ‐4.07 ‐3.71 18,755 102 0.55 7.64 862 4.82 11.34 BORUP 25,422 25,436 14 0.06 ‐12.97 28,930 3,508 13.80 21.62 3,494 13.74 34.59 BOVEY 309,091 309,232 141 0.05 3.35 333,329 24,238 7.84 32.66 24,097 7.79 29.32 BOWLUS 61,877 61,912 35 0.06 1.73 71,492 9,615 15.54 36.31 9,580 15.47 34.58 BOY RIVER 9,292 9,293 1 0.01 0.04 9,110 ‐182 ‐1.96 ‐7.00 ‐183 ‐1.97 ‐7.04 BOYD 55,427 55,431 4 0.01 0.03 57,999 2,572 4.64 18.24 2,568 4.63 18.21 BRAHAM 645,348 645,634 286 0.04 ‐2.50 711,129 65,781 10.19 34.25 65,495 10.14 36.75 BRAINERD 4,695,588 4,698,101 2,513 0.05 ‐6.14 5,238,862 543,274 11.57 30.70 540,761 11.51 36.84 BRANDON 119,325 119,399 74 0.06 ‐0.33 135,072 15,747 13.20 30.89 15,673 13.13 31.22 BRECKENRIDGE 1,790,549 1,791,699 1,150 0.06 13.93 1,963,949 173,400 9.68 65.46 172,250 9.61 51.53 BREEZY POINT 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 3 (continued) Pay 2023 Cert LGA Baseline Pay 2024 LGA Baseline Pay 2024 Chg from Pay 2023 Cert LGA Percent Change Per Capita Change Proposed Pay 2024 LGA Proposed Pay 2024 Chg from Pay 2023 Cert LGA Percent Change Per Capita Change Proposed Pay 2024 Chg from Pay 2024 Baseline Percent Change Per Capita Change BREWSTER 142,216 137,196 ‐5,020 ‐3.53 ‐7.76 137,196 ‐5,020 ‐3.53 ‐7.76 0 0.00 0.00 BRICELYN 133,143 133,189 46 0.03 3.46 144,973 11,830 8.89 37.62 11,784 8.85 34.16 BROOK PARK 23,981 23,994 13 0.05 ‐1.27 27,982 4,001 16.68 28.72 3,988 16.62 29.98 BROOKLYN CENTER 2,500,369 2,502,596 2,227 0.09 0.50 3,027,980 527,611 21.10 16.14 525,384 20.99 15.64 BROOKLYN PARK 0 2,536 2,536 NA 0.03 906,979 906,979 NA 10.53 904,443 ****** 10.50 BROOKS 29,968 29,968 0 0.00 ‐4.30 31,560 1,592 5.31 9.07 1,592 5.31 13.38 BROOKSTON 15,462 15,474 12 0.08 1.22 18,986 3,524 22.79 31.24 3,512 22.70 30.02 BROOTEN 211,968 212,030 62 0.03 ‐4.17 223,377 11,409 5.38 13.72 11,347 5.35 17.90 BROWERVILLE 283,746 283,923 177 0.06 2.65 314,121 30,375 10.70 38.90 30,198 10.64 36.25 BROWNS VALLEY 319,306 319,343 37 0.01 7.34 328,330 9,024 2.83 23.65 8,987 2.81 16.31 BROWNSDALE 241,332 241,432 100 0.04 ‐6.36 258,861 17,529 7.26 20.71 17,429 7.22 27.06 BROWNSVILLE 78,500 78,575 75 0.10 0.38 93,628 15,128 19.27 27.02 15,053 19.16 26.64 BROWNTON 301,311 301,439 128 0.04 0.18 322,198 20,887 6.93 28.57 20,759 6.89 28.40 BRUNO 12,250 12,253 3 0.02 ‐3.28 13,721 1,471 12.01 13.59 1,468 11.98 16.87 BUCKMAN 40,499 40,546 47 0.12 ‐1.13 52,257 11,758 29.03 36.65 11,711 28.88 37.78 BUFFALO 1,113,720 1,114,958 1,238 0.11 ‐0.81 1,427,128 313,408 28.14 18.25 312,170 28.00 19.06 BUFFALO LAKE 248,951 249,057 106 0.04 2.46 267,152 18,201 7.31 30.05 18,095 7.27 27.58 BUHL 394,231 394,367 136 0.03 ‐2.02 419,562 25,331 6.43 24.31 25,195 6.39 26.33 BURNSVILLE 0 0 0 NA 0.00 426,380 426,380 NA 6.60 426,380 NA 6.60 BURTRUM 35,873 35,881 8 0.02 2.46 38,840 2,967 8.27 26.71 2,959 8.25 24.25 BUTTERFIELD 221,157 221,290 133 0.06 3.31 245,326 24,169 10.93 43.64 24,036 10.86 40.33 BYRON 400,070 400,568 498 0.12 ‐2.26 499,478 99,408 24.85 12.84 98,910 24.69 15.09 CALEDONIA 1,085,572 1,086,160 588 0.05 1.01 1,204,544 118,972 10.96 42.68 118,384 10.90 41.67 CALLAWAY 48,957 48,971 14 0.03 ‐21.30 53,953 4,996 10.20 4.51 4,982 10.17 25.81 CALUMET 116,573 116,596 23 0.02 3.23 124,537 7,964 6.83 27.22 7,941 6.81 23.99 CAMBRIDGE 1,111,338 1,112,977 1,639 0.15 ‐2.78 1,503,227 391,889 35.26 36.79 390,250 35.06 39.57 CAMPBELL 48,424 48,432 8 0.02 9.34 52,046 3,622 7.48 32.07 3,614 7.46 22.73 CANBY 754,234 754,457 223 0.03 8.97 806,874 52,640 6.98 40.51 52,417 6.95 31.54 CANNON FALLS 708,297 708,579 282 0.04 ‐0.57 817,913 109,616 15.48 25.24 109,334 15.43 25.81 CANTON 97,566 97,588 22 0.02 ‐1.95 105,250 7,684 7.88 22.61 7,662 7.85 24.56 CARLOS 105,159 105,256 97 0.09 ‐0.23 124,770 19,611 18.65 38.95 19,514 18.54 39.18 CARLTON 289,127 289,282 155 0.05 ‐3.96 317,650 28,523 9.87 25.55 28,368 9.81 29.52 CARVER 121,091 121,549 458 0.38 ‐0.04 209,479 88,388 72.99 14.97 87,930 72.34 15.00 CASS LAKE 374,035 374,074 39 0.01 ‐9.62 380,188 6,153 1.65 ‐0.72 6,114 1.63 8.90 CEDAR MILLS 6,990 7,002 12 0.17 ‐1.60 9,443 2,453 35.09 37.15 2,441 34.86 38.75 CENTER CITY 43,468 43,501 33 0.08 ‐1.03 49,919 6,451 14.84 9.01 6,418 14.75 10.04 CENTERVILLE 0 104 104 NA 0.03 25,315 25,315 NA 6.47 25,211 ******6.44 CEYLON 141,600 141,623 23 0.02 3.18 149,338 7,738 5.46 28.81 7,715 5.45 25.63 CHAMPLIN 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 CHANDLER 65,237 65,263 26 0.04 2.64 73,270 8,033 12.31 31.65 8,007 12.27 29.01 CHANHASSEN 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 CHASKA 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 CHATFIELD 866,853 867,360 507 0.06 ‐1.08 949,457 82,604 9.53 26.19 82,097 9.47 27.27 CHICKAMAW BEACH 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 CHISAGO CITY 281,878 282,200 322 0.11 ‐0.61 313,053 31,175 11.06 4.87 30,853 10.93 5.48 CHISHOLM 3,467,840 3,469,391 1,551 0.04 6.93 3,688,530 220,690 6.36 53.24 219,139 6.32 46.31 4 (continued) Pay 2023 Cert LGA Baseline Pay 2024 LGA Baseline Pay 2024 Chg from Pay 2023 Cert LGA Percent Change Per Capita Change Proposed Pay 2024 LGA Proposed Pay 2024 Chg from Pay 2023 Cert LGA Percent Change Per Capita Change Proposed Pay 2024 Chg from Pay 2024 Baseline Percent Change Per Capita Change CHOKIO 134,165 134,215 50 0.04 7.66 146,618 12,453 9.28 38.98 12,403 9.24 31.32 CIRCLE PINES 437,051 437,444 393 0.09 0.97 459,638 22,587 5.17 5.43 22,194 5.07 4.46 CLARA CITY 456,466 456,719 253 0.06 2.68 509,029 52,563 11.52 39.72 52,310 11.45 37.05 CLAREMONT 173,893 173,913 20 0.01 2.03 180,612 6,719 3.86 15.17 6,699 3.85 13.14 CLARISSA 236,045 236,189 144 0.06 2.39 260,547 24,502 10.38 39.47 24,358 10.31 37.07 CLARKFIELD 375,592 375,674 82 0.02 10.70 390,063 14,471 3.85 27.99 14,389 3.83 17.29 CLARKS GROVE 236,386 236,527 141 0.06 3.68 259,534 23,148 9.79 37.16 23,007 9.73 33.49 CLEAR LAKE 83,546 83,666 120 0.14 ‐1.82 104,281 20,735 24.82 29.85 20,615 24.64 31.67 CLEARBROOK 180,910 180,927 17 0.01 2.57 187,692 6,782 3.75 17.25 6,765 3.74 14.67 CLEARWATER 361,903 362,296 393 0.11 ‐14.78 452,467 90,564 25.02 28.40 90,171 24.89 43.19 CLEMENTS 36,870 36,887 17 0.05 6.41 41,820 4,950 13.43 39.08 4,933 13.37 32.67 CLEVELAND 202,639 202,798 159 0.08 ‐4.08 229,046 26,407 13.03 30.50 26,248 12.94 34.58 CLIMAX 65,654 65,676 22 0.03 5.77 72,603 6,949 10.58 34.87 6,927 10.55 29.11 CLINTON 161,311 161,354 43 0.03 ‐7.33 172,633 11,322 7.02 21.37 11,279 6.99 28.70 CLITHERALL 23,584 23,009 ‐575 ‐2.44 ‐15.16 23,009 ‐575 ‐2.44 ‐15.16 0 0.00 0.00 CLONTARF 19,843 19,843 0 0.00 ‐2.38 21,599 1,756 8.85 11.12 1,756 8.85 13.51 CLOQUET 2,895,411 2,897,393 1,982 0.07 ‐2.51 3,399,524 504,113 17.41 36.98 502,131 17.33 39.49 COATES 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 COBDEN 2,424 2,236 ‐188 ‐7.76 ‐1.57 2,236 ‐188 ‐7.76 ‐1.57 0 0.00 0.00 COHASSET 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 COKATO 706,390 706,828 438 0.06 ‐1.64 830,724 124,334 17.60 42.32 123,896 17.53 43.95 COLD SPRING 739,278 739,700 422 0.06 ‐1.76 883,975 144,697 19.57 32.53 144,275 19.50 34.29 COLERAINE 464,982 465,359 377 0.08 1.94 550,635 85,653 18.42 44.77 85,276 18.32 42.83 COLOGNE 247,983 248,244 261 0.11 ‐0.46 315,909 67,926 27.39 32.43 67,665 27.26 32.89 COLUMBIA HEIGHTS 1,972,108 1,973,680 1,572 0.08 0.54 2,617,235 645,127 32.71 29.98 643,555 32.61 29.44 COLUMBUS 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 COMFREY 115,098 115,164 66 0.06 2.43 130,300 15,202 13.21 41.34 15,136 13.14 38.91 COMSTOCK 13,132 13,137 5 0.04 2.73 15,182 2,050 15.61 23.60 2,045 15.57 20.87 CONGER 29,846 29,869 23 0.08 1.43 35,850 6,004 20.12 40.78 5,981 20.02 39.35 COOK 171,332 171,370 38 0.02 ‐1.72 180,628 9,296 5.43 15.52 9,258 5.40 17.24 COON RAPIDS 0 1,976 1,976 NA 0.03 823,526 823,526 NA 12.84 821,550 ****** 12.81 CORCORAN 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 CORRELL 5,820 5,560 ‐260 ‐4.47 ‐10.00 5,560 ‐260 ‐4.47 ‐10.00 0 0.00 0.00 COSMOS 156,617 156,701 84 0.05 0.78 174,009 17,392 11.10 34.98 17,308 11.05 34.21 COTTAGE GROVE 0 148 148 NA 0.00 54,063 54,063 NA 1.37 53,915 ******1.36 COTTONWOOD 343,197 343,371 174 0.05 1.20 377,713 34,516 10.06 31.19 34,342 10.00 29.99 COURTLAND 95,784 95,916 132 0.14 ‐1.23 117,564 21,780 22.74 27.95 21,648 22.57 29.18 CREDIT RIVER 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 CROMWELL 31,137 31,158 21 0.07 ‐1.52 37,992 6,855 22.02 26.61 6,834 21.93 28.12 CROOKSTON 4,068,923 4,071,376 2,453 0.06 11.46 4,505,889 436,966 10.74 70.72 434,513 10.67 59.26 CROSBY 883,106 883,355 249 0.03 ‐4.90 957,195 74,089 8.39 25.97 73,840 8.36 30.87 CROSSLAKE 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 CRYSTAL 1,046,814 1,046,886 72 0.01 0.48 1,875,379 828,565 79.15 36.38 828,493 79.14 35.89 CURRIE 72,416 72,431 15 0.02 4.46 78,073 5,657 7.81 29.99 5,642 7.79 25.53 CUYUNA 13,525 10,415 ‐3,110 ‐22.99 ‐12.20 16,274 2,749 20.33 6.64 5,859 56.26 18.84 CYRUS 90,208 90,256 48 0.05 ‐9.24 102,209 12,001 13.30 28.71 11,953 13.24 37.95 5 (continued) Pay 2023 Cert LGA Baseline Pay 2024 LGA Baseline Pay 2024 Chg from Pay 2023 Cert LGA Percent Change Per Capita Change Proposed Pay 2024 LGA Proposed Pay 2024 Chg from Pay 2023 Cert LGA Percent Change Per Capita Change Proposed Pay 2024 Chg from Pay 2024 Baseline Percent Change Per Capita Change DAKOTA 46,295 46,318 23 0.05 1.15 53,929 7,634 16.49 27.13 7,611 16.43 25.98 DALTON 65,660 65,678 18 0.03 8.85 71,699 6,039 9.20 37.66 6,021 9.17 28.81 DANUBE 153,731 153,774 43 0.03 2.31 164,792 11,061 7.20 26.52 11,018 7.17 24.22 DANVERS 7,682 7,695 13 0.17 ‐0.59 11,143 3,461 45.05 32.56 3,448 44.81 33.15 DARFUR 32,542 32,543 1 0.00 4.68 33,574 1,032 3.17 17.10 1,031 3.17 12.42 DARWIN 57,930 57,964 34 0.06 0.58 67,790 9,860 17.02 28.89 9,826 16.95 28.32 DASSEL 429,468 429,674 206 0.05 ‐2.42 475,527 46,059 10.72 28.46 45,853 10.67 30.88 DAWSON 617,210 617,428 218 0.04 0.15 665,035 47,825 7.75 32.62 47,607 7.71 32.47 DAYTON 0 0 0 NA 0.00 2,690 2,690 NA 0.34 2,690 NA 0.34 DEEPHAVEN 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 DEER CREEK 78,398 78,450 52 0.07 0.88 91,079 12,681 16.18 39.27 12,629 16.10 38.39 DEER RIVER 277,475 277,513 38 0.01 2.75 285,685 8,210 2.96 11.82 8,172 2.94 9.07 DEERWOOD 24,489 24,527 38 0.16 ‐0.80 33,835 9,346 38.16 16.57 9,308 37.95 17.37 DEGRAFF 25,655 25,662 7 0.03 ‐4.10 28,257 2,602 10.14 19.07 2,595 10.11 23.17 DELANO 368,047 368,812 765 0.21 ‐1.34 569,682 201,635 54.79 28.85 200,870 54.46 30.19 DELAVAN 35,341 33,641 ‐1,700 ‐4.81 ‐7.58 36,291 950 2.69 8.01 2,650 7.88 15.59 DELHI 10,570 10,110 ‐460 ‐4.35 ‐10.00 10,110 ‐460 ‐4.35 ‐10.00 0 0.00 0.00 DELLWOOD 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 DENHAM 1,273 1,280 7 0.55 0.19 903 ‐370 ‐29.07 ‐10.00 ‐377 ‐29.45 ‐10.19 DENNISON 13,594 13,608 14 0.10 0.34 19,115 5,521 40.61 25.14 5,507 40.47 24.81 DENT 45,672 45,676 4 0.01 3.11 48,679 3,007 6.58 20.67 3,003 6.57 17.56 DETROIT LAKES 393,203 393,349 146 0.04 ‐0.47 519,507 126,304 32.12 12.16 126,158 32.07 12.63 DEXTER 63,247 63,259 12 0.02 ‐2.93 69,369 6,122 9.68 15.64 6,110 9.66 18.57 DILWORTH 725,899 726,626 727 0.10 ‐0.76 901,630 175,731 24.21 36.97 175,004 24.08 37.72 DODGE CENTER 803,195 803,425 230 0.03 ‐0.22 890,761 87,566 10.90 30.46 87,336 10.87 30.68 DONALDSON 4,501 4,502 1 0.02 0.05 4,301 ‐200 ‐4.44 ‐10.00 ‐201 ‐4.46 ‐10.05 DONNELLY 55,720 55,732 12 0.02 5.89 60,771 5,051 9.06 29.22 5,039 9.04 23.33 DORAN 12,384 12,289 ‐95 ‐0.77 7.11 12,128 ‐256 ‐2.07 2.51 ‐161 ‐1.31 ‐4.60 DOVER 175,076 175,193 117 0.07 ‐2.68 194,921 19,845 11.34 22.23 19,728 11.26 24.91 DOVRAY 9,215 8,645 ‐570 ‐6.19 ‐7.21 8,991 ‐224 ‐2.43 ‐1.14 346 4.00 6.07 DULUTH 30,807,820 30,814,656 6,836 0.02 4.35 35,175,072 4,367,252 14.18 55.25 4,360,416 14.15 50.90 DUMONT 15,665 15,667 2 0.01 2.85 16,680 1,015 6.48 16.54 1,013 6.47 13.69 DUNDAS 160,833 160,917 84 0.05 ‐3.74 193,016 32,183 20.01 14.25 32,099 19.95 17.99 DUNDEE 18,197 18,204 7 0.04 3.56 19,911 1,714 9.42 27.27 1,707 9.38 23.71 DUNNELL 55,152 55,156 4 0.01 3.17 57,573 2,421 4.39 21.48 2,417 4.38 18.31 EAGAN 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 EAGLE BEND 190,551 190,649 98 0.05 3.41 209,810 19,259 10.11 38.82 19,161 10.05 35.42 EAGLE LAKE 699,884 700,248 364 0.05 ‐0.15 749,370 49,486 7.07 14.82 49,122 7.01 14.97 EAST BETHEL 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 EAST GRAND FORKS 2,233,625 2,234,514 889 0.04 2.00 2,459,838 226,213 10.13 26.74 225,324 10.08 24.75 EAST GULL LAKE 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 EASTON 39,630 39,652 22 0.06 2.68 45,726 6,096 15.38 37.39 6,074 15.32 34.71 ECHO 80,395 80,418 23 0.03 8.47 87,532 7,137 8.88 38.49 7,114 8.85 30.02 EDEN PRAIRIE 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 EDEN VALLEY 338,403 338,588 185 0.05 0.50 372,857 34,454 10.18 33.90 34,269 10.12 33.40 EDGERTON 376,332 376,561 229 0.06 2.82 421,842 45,510 12.09 39.13 45,281 12.02 36.31 6 (continued) Pay 2023 Cert LGA Baseline Pay 2024 LGA Baseline Pay 2024 Chg from Pay 2023 Cert LGA Percent Change Per Capita Change Proposed Pay 2024 LGA Proposed Pay 2024 Chg from Pay 2023 Cert LGA Percent Change Per Capita Change Proposed Pay 2024 Chg from Pay 2024 Baseline Percent Change Per Capita Change EDINA 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 EFFIE 19,676 19,706 30 0.15 1.95 22,389 2,713 13.79 26.79 2,683 13.62 24.84 EITZEN 46,903 46,955 52 0.11 1.40 59,301 12,398 26.43 45.97 12,346 26.29 44.57 ELBA 23,252 21,972 ‐1,280 ‐5.50 ‐8.59 23,955 703 3.02 6.90 1,983 9.03 15.49 ELBOW LAKE 445,500 445,775 275 0.06 ‐1.15 499,174 53,674 12.05 40.54 53,399 11.98 41.69 ELGIN 360,964 361,133 169 0.05 ‐8.88 394,688 33,724 9.34 20.37 33,555 9.29 29.25 ELIZABETH 40,420 40,437 17 0.04 3.00 45,529 5,109 12.64 33.68 5,092 12.59 30.67 ELK RIVER 466,586 467,033 447 0.10 ‐0.22 590,946 124,360 26.65 4.51 123,913 26.53 4.73 ELKO NEW MARKET 198,589 198,863 274 0.14 ‐0.56 236,024 37,435 18.85 6.99 37,161 18.69 7.55 ELKTON 13,915 13,926 11 0.08 ‐0.73 17,539 3,624 26.04 26.85 3,613 25.94 27.58 ELLENDALE 198,270 198,387 117 0.06 0.61 217,716 19,446 9.81 29.24 19,329 9.74 28.64 ELLSWORTH 183,953 184,046 93 0.05 ‐2.03 202,914 18,961 10.31 35.70 18,868 10.25 37.74 ELMDALE 9,879 9,888 9 0.09 0.85 12,795 2,916 29.52 26.57 2,907 29.40 25.73 ELMORE 265,801 265,876 75 0.03 7.30 281,322 15,521 5.84 35.85 15,446 5.81 28.55 ELROSA 36,115 36,123 8 0.02 ‐3.09 40,528 4,413 12.22 17.21 4,405 12.19 20.30 ELY 2,558,444 2,560,148 1,704 0.07 14.92 2,817,133 258,689 10.11 95.01 256,985 10.04 80.08 ELYSIAN 19,611 19,631 20 0.10 ‐0.81 22,503 2,892 14.75 3.13 2,872 14.63 3.93 EMILY 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 EMMONS 107,829 107,880 51 0.05 1.75 120,426 12,597 11.68 36.12 12,546 11.63 34.37 EMPIRE 0 0 0 NA NA 4,762 4,762 NA NA 4,762 NA 1.51 ERHARD 33,075 33,086 11 0.03 ‐1.80 36,764 3,689 11.15 25.85 3,678 11.12 27.65 ERSKINE 147,172 147,191 19 0.01 5.57 154,471 7,299 4.96 23.90 7,280 4.95 18.34 EVAN 14,332 14,337 5 0.03 3.04 15,618 1,286 8.97 21.60 1,281 8.93 18.57 EVANSVILLE 187,560 187,686 126 0.07 ‐0.31 210,306 22,746 12.13 37.14 22,620 12.05 37.45 EVELETH 2,972,237 2,973,957 1,720 0.06 6.38 3,246,100 273,863 9.21 84.83 272,143 9.15 78.45 EXCELSIOR 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 EYOTA 582,638 582,898 260 0.04 ‐3.59 649,668 67,030 11.50 29.27 66,770 11.45 32.86 FAIRFAX 493,826 494,077 251 0.05 8.60 542,498 48,672 9.86 48.16 48,421 9.80 39.56 FAIRMONT 3,745,851 3,747,084 1,233 0.03 2.52 4,195,218 449,367 12.00 45.54 448,134 11.96 43.02 FALCON HEIGHTS 743,050 744,078 1,028 0.14 6.79 861,564 118,514 15.95 29.71 117,486 15.79 22.92 FARIBAULT 6,102,837 6,105,225 2,388 0.04 1.69 6,972,221 869,384 14.25 37.37 866,996 14.20 35.68 FARMINGTON 0 252 252 NA 0.01 0 0 NA 0.00 ‐252 ‐100.00 ‐0.01 FARWELL 13,429 13,432 3 0.02 0.05 14,165 736 5.48 13.14 733 5.46 13.09 FEDERAL DAM 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 FELTON 32,836 32,854 18 0.05 1.16 38,249 5,413 16.48 31.81 5,395 16.42 30.65 FERGUS FALLS 3,837,648 3,838,800 1,152 0.03 1.57 4,415,645 577,997 15.06 42.65 576,845 15.03 41.08 FERTILE 323,011 323,110 99 0.03 2.13 339,898 16,887 5.23 23.12 16,788 5.20 20.99 FIFTY LAKES 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 FINLAYSON 49,157 49,187 30 0.06 ‐3.76 58,054 8,897 18.10 25.60 8,867 18.03 29.36 FISHER 111,797 111,856 59 0.05 3.96 125,783 13,986 12.51 37.44 13,927 12.45 33.48 FLENSBURG 35,282 35,301 19 0.05 0.85 41,475 6,193 17.55 29.56 6,174 17.49 28.72 FLOODWOOD 177,892 177,983 91 0.05 3.54 196,419 18,527 10.41 39.55 18,436 10.36 36.01 FLORENCE 10,182 10,183 1 0.01 0.04 10,182 0 0.00 0.00 ‐1 ‐0.01 ‐0.04 FOLEY 857,709 858,053 344 0.04 1.53 951,346 93,637 10.92 36.10 93,293 10.87 34.57 FORADA 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 FOREST LAKE 0 0 0 NA 0.00 57,755 57,755 NA 2.75 57,755 NA 2.75 7 (continued) Pay 2023 Cert LGA Baseline Pay 2024 LGA Baseline Pay 2024 Chg from Pay 2023 Cert LGA Percent Change Per Capita Change Proposed Pay 2024 LGA Proposed Pay 2024 Chg from Pay 2023 Cert LGA Percent Change Per Capita Change Proposed Pay 2024 Chg from Pay 2024 Baseline Percent Change Per Capita Change FORESTON 124,120 124,224 104 0.08 ‐0.61 144,164 20,044 16.15 34.94 19,940 16.05 35.54 FORT RIPLEY 218 225 7 3.21 0.05 2,280 2,062 945.87 24.23 2,055 913.33 24.18 FOSSTON 603,777 603,937 160 0.03 5.47 640,852 37,075 6.14 31.54 36,915 6.11 26.07 FOUNTAIN 82,615 82,647 32 0.04 0.08 92,011 9,396 11.37 22.97 9,364 11.33 22.89 FOXHOME 30,054 30,072 18 0.06 7.97 34,566 4,512 15.01 44.80 4,494 14.94 36.84 FRANKLIN 174,563 174,655 92 0.05 2.36 193,576 19,013 10.89 40.97 18,921 10.83 38.61 FRAZEE 545,631 545,854 223 0.04 2.01 591,640 46,009 8.43 36.46 45,786 8.39 34.45 FREEBORN 82,055 82,080 25 0.03 4.88 89,759 7,704 9.39 34.41 7,679 9.36 29.53 FREEPORT 129,243 129,335 92 0.07 ‐1.83 144,442 15,199 11.76 20.32 15,107 11.68 22.15 FRIDLEY 1,871,738 1,872,984 1,246 0.07 0.16 2,198,947 327,209 17.48 11.19 325,963 17.40 11.04 FROST 57,280 57,310 30 0.05 2.62 65,293 8,013 13.99 39.92 7,983 13.93 37.30 FULDA 505,477 505,721 244 0.05 2.89 555,612 50,135 9.92 39.55 49,891 9.87 36.66 FUNKLEY 1,012 1,016 4 0.40 0.22 1,593 581 57.41 32.28 577 56.79 32.06 GARFIELD 59,822 59,845 23 0.04 ‐0.42 67,842 8,020 13.41 22.42 7,997 13.36 22.85 GARRISON 0 0 0 NA 0.00 133 133 NA 0.67 133 NA 0.67 GARVIN 40,469 40,480 11 0.03 2.74 43,881 3,412 8.43 30.39 3,401 8.40 27.65 GARY 57,111 57,146 35 0.06 ‐5.27 66,224 9,113 15.96 33.86 9,078 15.89 39.13 GAYLORD 897,806 898,085 279 0.03 ‐6.71 974,962 77,156 8.59 26.53 76,877 8.56 33.24 GEM LAKE 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 GENEVA 128,393 128,477 84 0.07 0.17 145,857 17,464 13.60 34.38 17,380 13.53 34.21 GENOLA 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 GEORGETOWN 14,249 14,256 7 0.05 0.08 16,264 2,015 14.14 23.43 2,008 14.09 23.35 GHENT 106,770 106,832 62 0.06 0.92 121,265 14,495 13.58 39.41 14,433 13.51 38.49 GIBBON 302,694 302,863 169 0.06 ‐3.20 331,197 28,503 9.42 32.62 28,334 9.36 35.82 GILBERT 741,061 741,228 167 0.02 3.25 784,630 43,569 5.88 29.16 43,402 5.86 25.91 GILMAN 28,694 28,705 11 0.04 1.76 33,706 5,012 17.47 24.18 5,001 17.42 22.43 GLENCOE 1,618,633 1,619,467 834 0.05 ‐0.69 1,818,170 199,537 12.33 33.80 198,703 12.27 34.49 GLENVILLE 203,682 203,719 37 0.02 ‐11.54 212,078 8,396 4.12 2.70 8,359 4.10 14.24 GLENWOOD 729,661 729,972 311 0.04 ‐1.02 826,146 96,485 13.22 35.03 96,174 13.18 36.05 GLYNDON 416,738 416,913 175 0.04 ‐1.57 454,449 37,711 9.05 27.02 37,536 9.00 28.59 GOLDEN VALLEY 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 GONVICK 81,930 81,958 28 0.03 ‐12.40 90,370 8,440 10.30 18.30 8,412 10.26 30.70 GOOD THUNDER 184,195 184,289 94 0.05 0.76 202,476 18,281 9.92 33.29 18,187 9.87 32.53 GOODHUE 318,605 318,776 171 0.05 ‐2.09 354,624 36,019 11.31 26.34 35,848 11.25 28.43 GOODRIDGE 35,103 35,114 11 0.03 11.71 38,281 3,178 9.05 41.03 3,167 9.02 29.32 GOODVIEW 439,247 439,881 634 0.14 0.82 588,367 149,120 33.95 36.75 148,486 33.76 35.94 GRACEVILLE 220,147 220,205 58 0.03 ‐6.09 232,769 12,622 5.73 17.30 12,564 5.71 23.40 GRANADA 99,556 99,583 27 0.03 2.46 107,811 8,255 8.29 30.93 8,228 8.26 28.47 GRAND MARAIS 50,324 50,446 122 0.24 ‐0.16 79,714 29,390 58.40 21.58 29,268 58.02 21.74 GRAND MEADOW 394,589 394,753 164 0.04 ‐3.85 427,316 32,727 8.29 24.72 32,563 8.25 28.56 GRAND RAPIDS 1,820,524 1,821,919 1,395 0.08 ‐2.15 2,222,621 402,097 22.09 33.36 400,702 21.99 35.51 GRANITE FALLS 1,099,709 1,100,268 559 0.05 7.68 1,237,048 137,339 12.49 58.59 136,780 12.43 50.90 GRANT 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 GRASSTON 27,564 27,576 12 0.04 ‐1.08 31,760 4,196 15.22 25.92 4,184 15.17 26.99 GREEN ISLE 114,772 114,910 138 0.12 ‐6.74 139,345 24,573 21.41 33.12 24,435 21.26 39.86 GREENBUSH 281,061 281,160 99 0.04 1.36 297,389 16,328 5.81 25.22 16,229 5.77 23.87 8 (continued) Pay 2023 Cert LGA Baseline Pay 2024 LGA Baseline Pay 2024 Chg from Pay 2023 Cert LGA Percent Change Per Capita Change Proposed Pay 2024 LGA Proposed Pay 2024 Chg from Pay 2023 Cert LGA Percent Change Per Capita Change Proposed Pay 2024 Chg from Pay 2024 Baseline Percent Change Per Capita Change GREENFIELD 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 GREENWALD 42,212 42,228 16 0.04 ‐3.13 47,642 5,430 12.86 23.94 5,414 12.82 27.07 GREENWOOD 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 GREY EAGLE 81,259 81,297 38 0.05 2.38 91,699 10,440 12.85 34.19 10,402 12.80 31.81 GROVE CITY 225,195 225,320 125 0.06 0.20 247,400 22,205 9.86 35.58 22,080 9.80 35.38 GRYGLA 56,946 56,954 8 0.01 1.81 60,770 3,824 6.72 23.13 3,816 6.70 21.32 GULLY 12,748 12,751 3 0.02 ‐7.04 13,651 903 7.08 7.72 900 7.06 14.75 HACKENSACK 0 0 0 NA 0.00 2,824 2,824 NA 9.35 2,824 NA 9.35 HADLEY 10,955 10,405 ‐550 ‐5.02 ‐13.69 10,405 ‐550 ‐5.02 ‐13.69 0 0.00 0.00 HALLOCK 410,590 410,675 85 0.02 7.21 426,354 15,764 3.84 24.79 15,679 3.82 17.58 HALMA 13,693 13,701 8 0.06 4.28 15,259 1,566 11.44 31.62 1,558 11.37 27.33 HALSTAD 216,206 216,297 91 0.04 4.29 233,974 17,768 8.22 35.96 17,677 8.17 31.68 HAM LAKE 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 HAMBURG 87,481 87,566 85 0.10 ‐0.12 104,114 16,633 19.01 29.06 16,548 18.90 29.19 HAMMOND 35,655 35,667 12 0.03 ‐2.00 39,473 3,818 10.71 27.05 3,806 10.67 29.05 HAMPTON 127,316 127,413 97 0.08 0.82 143,229 15,913 12.50 22.17 15,816 12.41 21.34 HANCOCK 310,786 310,996 210 0.07 7.92 346,772 35,986 11.58 50.26 35,776 11.50 42.34 HANLEY FALLS 91,803 91,826 23 0.03 9.66 98,931 7,128 7.76 39.64 7,105 7.74 29.98 HANOVER 128,790 128,968 178 0.14 ‐0.57 161,376 32,586 25.30 8.40 32,408 25.13 8.98 HANSKA 131,040 131,094 54 0.04 2.86 144,251 13,211 10.08 37.57 13,157 10.04 34.72 HARDING 11,838 11,854 16 0.14 0.92 16,051 4,213 35.59 35.32 4,197 35.41 34.40 HARDWICK 39,800 39,810 10 0.03 1.17 44,155 4,355 10.94 24.29 4,345 10.91 23.11 HARMONY 359,200 359,301 101 0.03 0.43 379,993 20,793 5.79 20.29 20,692 5.76 19.86 HARRIS 204,221 204,301 80 0.04 ‐1.24 222,695 18,474 9.05 15.20 18,394 9.00 16.44 HARTLAND 72,605 72,650 45 0.06 5.92 84,065 11,460 15.78 42.39 11,415 15.71 36.47 HASTINGS 904,501 905,136 635 0.07 ‐0.24 1,277,478 372,977 41.24 16.45 372,342 41.14 16.69 HATFIELD 504 505 1 0.20 ‐0.16 0 ‐504 ‐100.00 ‐9.51 ‐505 ‐100.00 ‐9.35 HAWLEY 664,743 665,016 273 0.04 ‐1.09 738,678 73,935 11.12 31.97 73,662 11.08 33.06 HAYFIELD 454,344 454,559 215 0.05 ‐1.54 499,779 45,435 10.00 31.44 45,220 9.95 32.98 HAYWARD 44,183 44,212 29 0.07 1.52 52,487 8,304 18.79 34.62 8,275 18.72 33.10 HAZEL RUN 11,967 11,971 4 0.03 4.10 12,887 920 7.69 21.07 916 7.65 16.96 HECTOR 390,643 390,801 158 0.04 2.85 420,270 29,627 7.58 32.17 29,469 7.54 29.32 HEIDELBERG 2,782 2,791 9 0.32 0.07 6,063 3,281 117.94 23.95 3,272 117.23 23.88 HENDERSON 320,308 320,452 144 0.04 ‐5.32 347,098 26,790 8.36 21.98 26,646 8.32 27.30 HENDRICKS 277,334 277,392 58 0.02 5.27 288,637 11,303 4.08 23.73 11,245 4.05 18.46 HENDRUM 80,076 80,120 44 0.05 3.06 91,240 11,164 13.94 41.94 11,120 13.88 38.88 HENNING 319,997 320,156 159 0.05 1.95 347,582 27,585 8.62 34.22 27,426 8.57 32.27 HENRIETTE 15,380 15,382 2 0.01 ‐9.11 16,115 735 4.78 3.31 733 4.77 12.42 HERMAN 125,035 125,041 6 0.00 ‐1.67 130,124 5,089 4.07 11.50 5,083 4.07 13.17 HERMANTOWN 0 736 736 NA 0.07 315,875 315,875 NA 31.49 315,139 ****** 31.42 HERON LAKE 271,079 265,049 ‐6,030 ‐2.22 ‐10.75 265,049 ‐6,030 ‐2.22 ‐10.75 0 0.00 0.00 HEWITT 74,720 74,753 33 0.04 ‐2.22 83,747 9,027 12.08 33.33 8,994 12.03 35.55 HIBBING 8,360,051 8,362,105 2,054 0.02 4.94 9,315,106 955,055 11.42 64.27 953,001 11.40 59.33 HILL CITY 142,089 142,249 160 0.11 ‐1.62 170,157 28,068 19.75 43.54 27,908 19.62 45.16 HILLMAN 5,770 5,548 ‐222 ‐3.85 ‐9.65 5,548 ‐222 ‐3.85 ‐9.65 0 0.00 0.00 HILLS 219,315 219,456 141 0.06 ‐1.19 242,381 23,066 10.52 32.09 22,925 10.45 33.27 9 (continued) Pay 2023 Cert LGA Baseline Pay 2024 LGA Baseline Pay 2024 Chg from Pay 2023 Cert LGA Percent Change Per Capita Change Proposed Pay 2024 LGA Proposed Pay 2024 Chg from Pay 2023 Cert LGA Percent Change Per Capita Change Proposed Pay 2024 Chg from Pay 2024 Baseline Percent Change Per Capita Change HILLTOP 168,765 168,984 219 0.13 ‐2.13 208,021 39,256 23.26 38.07 39,037 23.10 40.20 HINCKLEY 383,798 384,071 273 0.07 ‐2.16 450,511 66,713 17.38 32.34 66,440 17.30 34.50 HITTERDAL 47,347 47,371 24 0.05 ‐10.18 54,370 7,023 14.83 23.47 6,999 14.77 33.65 HOFFMAN 210,963 211,104 141 0.07 ‐1.95 233,833 22,870 10.84 30.38 22,729 10.77 32.33 HOKAH 183,714 183,785 71 0.04 ‐0.47 198,234 14,520 7.90 25.61 14,449 7.86 26.08 HOLDINGFORD 234,744 234,872 128 0.05 ‐0.68 255,795 21,051 8.97 27.41 20,923 8.91 28.08 HOLLAND 42,315 42,329 14 0.03 4.16 47,084 4,769 11.27 31.33 4,755 11.23 27.17 HOLLANDALE 64,344 64,397 53 0.08 ‐0.50 77,156 12,812 19.91 40.79 12,759 19.81 41.29 HOLLOWAY 2,115 1,235 ‐880 ‐41.61 ‐10.28 1,235 ‐880 ‐41.61 ‐10.28 0 0.00 0.00 HOLT 21,007 21,018 11 0.05 ‐2.44 23,872 2,865 13.64 28.92 2,854 13.58 31.36 HOPKINS 925,794 927,293 1,499 0.16 0.47 1,081,012 155,218 16.77 8.59 153,719 16.58 8.12 HOUSTON 384,548 384,687 139 0.04 1.30 410,789 26,241 6.82 27.56 26,102 6.79 26.26 HOWARD LAKE 623,783 624,018 235 0.04 ‐7.68 689,047 65,264 10.46 22.91 65,029 10.42 30.59 HOYT LAKES 445,715 446,054 339 0.08 2.04 525,250 79,535 17.84 41.58 79,196 17.75 39.54 HUGO 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 HUMBOLDT 12,160 12,162 2 0.02 7.46 12,500 340 2.80 15.91 338 2.78 8.45 HUTCHINSON 2,698,261 2,699,536 1,275 0.05 ‐1.22 3,097,925 399,664 14.81 25.88 398,389 14.76 27.10 IHLEN 13,557 13,563 6 0.04 ‐6.96 14,938 1,381 10.19 14.87 1,375 10.14 21.83 INDEPENDENCE 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 INTERNATIONAL FALLS 4,483,368 4,485,591 2,223 0.05 9.14 4,931,907 448,539 10.00 86.94 446,316 9.95 77.80 INVER GROVE HEIGHTS 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 IONA 38,801 38,825 24 0.06 5.92 45,010 6,209 16.00 44.10 6,185 15.93 38.18 IRON JUNCTION 9,604 9,619 15 0.16 0.94 13,522 3,918 40.80 36.75 3,903 40.58 35.81 IRONTON 165,381 165,454 73 0.04 ‐3.81 179,828 14,447 8.74 20.80 14,374 8.69 24.61 ISANTI 829,918 830,904 986 0.12 ‐3.65 1,019,827 189,909 22.88 23.26 188,923 22.74 26.90 ISLE 77,991 78,104 113 0.14 ‐1.88 97,490 19,499 25.00 21.77 19,386 24.82 23.64 IVANHOE 230,190 230,275 85 0.04 8.39 247,125 16,935 7.36 39.08 16,850 7.32 30.69 JACKSON 1,478,283 1,479,202 919 0.06 ‐0.39 1,706,524 228,241 15.44 67.91 227,322 15.37 68.31 JANESVILLE 860,648 861,041 393 0.05 ‐2.17 959,906 99,258 11.53 38.40 98,865 11.48 40.57 JASPER 231,766 231,866 100 0.04 5.86 250,249 18,483 7.97 36.44 18,383 7.93 30.59 JEFFERS 122,172 122,209 37 0.03 ‐4.84 132,423 10,251 8.39 24.01 10,214 8.36 28.85 JENKINS 21,095 21,124 29 0.14 ‐0.80 29,430 8,335 39.51 15.81 8,306 39.32 16.61 JOHNSON 5,365 5,366 1 0.02 ‐17.16 5,416 51 0.95 ‐15.23 50 0.93 1.92 JORDAN 450,969 452,128 1,159 0.26 ‐1.28 699,669 248,700 55.15 35.11 247,541 54.75 36.39 KANDIYOHI 141,158 141,292 134 0.09 1.11 166,022 24,864 17.61 44.73 24,730 17.50 43.62 KARLSTAD 295,220 295,324 104 0.04 6.69 311,910 16,690 5.65 30.42 16,586 5.62 23.73 KASOTA 195,540 195,655 115 0.06 0.55 214,054 18,514 9.47 26.35 18,399 9.40 25.81 KASSON 1,252,644 1,253,380 736 0.06 ‐1.74 1,369,567 116,923 9.33 15.04 116,187 9.27 16.79 KEEWATIN 416,952 417,082 130 0.03 4.04 441,513 24,561 5.89 29.10 24,431 5.86 25.06 KELLIHER 94,360 94,376 16 0.02 ‐1.35 100,654 6,294 6.67 22.89 6,278 6.65 24.24 KELLOGG 108,304 108,341 37 0.03 ‐3.63 118,513 10,209 9.43 20.53 10,172 9.39 24.16 KENNEDY 59,221 59,235 14 0.02 5.92 64,014 4,793 8.09 33.54 4,779 8.07 27.62 KENNETH 7,587 7,588 1 0.01 0.02 8,036 449 5.92 7.48 448 5.90 7.47 KENSINGTON 70,452 70,471 19 0.03 ‐0.92 77,310 6,858 9.73 24.69 6,839 9.70 25.61 KENT 18,372 18,373 1 0.01 8.99 18,978 606 3.30 18.59 605 3.29 9.60 KENYON 595,450 595,737 287 0.05 ‐2.81 664,265 68,815 11.56 33.03 68,528 11.50 35.84 10 (continued) Pay 2023 Cert LGA Baseline Pay 2024 LGA Baseline Pay 2024 Chg from Pay 2023 Cert LGA Percent Change Per Capita Change Proposed Pay 2024 LGA Proposed Pay 2024 Chg from Pay 2023 Cert LGA Percent Change Per Capita Change Proposed Pay 2024 Chg from Pay 2024 Baseline Percent Change Per Capita Change KERKHOVEN 263,171 263,366 195 0.07 ‐4.17 296,390 33,219 12.62 36.30 33,024 12.54 40.47 KERRICK 7,839 7,849 10 0.13 0.14 10,030 2,191 27.95 30.86 2,181 27.79 30.72 KETTLE RIVER 33,328 33,351 23 0.07 ‐3.43 39,455 6,127 18.38 32.69 6,104 18.30 36.12 KIESTER 184,739 184,826 87 0.05 4.10 202,960 18,221 9.86 41.64 18,134 9.81 37.54 KILKENNY 33,166 33,178 12 0.04 ‐4.37 37,276 4,110 12.39 22.77 4,098 12.35 27.14 KIMBALL 186,478 186,623 145 0.08 ‐2.42 211,155 24,677 13.23 27.94 24,532 13.15 30.36 KINBRAE 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 KINGSTON 25,217 25,246 29 0.12 0.91 32,627 7,410 29.38 41.24 7,381 29.24 40.33 KINNEY 46,835 46,838 3 0.01 2.06 49,468 2,633 5.62 19.48 2,630 5.62 17.42 LACRESCENT 684,957 685,863 906 0.13 ‐1.22 796,400 111,443 16.27 19.51 110,537 16.12 20.73 LAFAYETTE 142,415 142,462 47 0.03 ‐1.08 153,737 11,322 7.95 21.75 11,275 7.91 22.82 LAKE BENTON 259,314 259,440 126 0.05 4.63 280,132 20,818 8.03 35.11 20,692 7.98 30.47 LAKE BRONSON 76,164 76,166 2 0.00 7.35 79,014 2,850 3.74 23.62 2,848 3.74 16.27 LAKE CITY 979,062 979,730 668 0.07 ‐1.91 1,101,278 122,216 12.48 20.98 121,548 12.41 22.89 LAKE CRYSTAL 816,531 816,878 347 0.04 ‐0.50 906,890 90,359 11.07 34.89 90,012 11.02 35.38 LAKE ELMO 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 LAKE HENRY 12,599 11,879 ‐720 ‐5.71 ‐10.00 11,879 ‐720 ‐5.71 ‐10.00 0 0.00 0.00 LAKE LILLIAN 50,765 50,808 43 0.08 1.87 61,299 10,534 20.75 44.86 10,491 20.65 43.00 LAKE PARK 279,169 279,234 65 0.02 ‐0.44 289,585 10,416 3.73 13.76 10,351 3.71 14.20 LAKE SAINT CROIX BEACH 100,396 100,487 91 0.09 1.30 119,317 18,921 18.85 19.58 18,830 18.74 18.28 LAKE SHORE 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 LAKE WILSON 79,655 79,677 22 0.03 3.84 86,795 7,140 8.96 32.19 7,118 8.93 28.36 LAKEFIELD 701,204 701,507 303 0.04 ‐0.76 768,847 67,643 9.65 37.97 67,340 9.60 38.72 LAKELAND 39,735 39,735 0 0.00 0.15 56,004 16,269 40.94 9.73 16,269 40.94 9.58 LAKELAND SHORES 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 LAKEVILLE 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 LAMBERTON 324,246 324,366 120 0.04 3.80 344,548 20,302 6.26 29.51 20,182 6.22 25.71 LANCASTER 100,019 100,080 61 0.06 2.45 114,341 14,322 14.32 41.96 14,261 14.25 39.50 LANDFALL 85,719 85,761 42 0.05 3.29 93,321 7,602 8.87 12.54 7,560 8.82 9.25 LANESBORO 217,577 217,615 38 0.02 0.47 223,448 5,871 2.70 8.54 5,833 2.68 8.07 LAPORTE 9,842 9,859 17 0.17 ‐3.03 14,582 4,740 48.16 30.71 4,723 47.91 33.74 LAPRAIRIE 81,407 81,529 122 0.15 1.34 102,566 21,159 25.99 33.86 21,037 25.80 32.51 LASALLE 19,387 19,393 6 0.03 3.22 21,148 1,761 9.08 25.72 1,755 9.05 22.50 LASTRUP 9,341 9,360 19 0.20 0.81 14,015 4,674 50.04 39.93 4,655 49.73 39.12 LAUDERDALE 477,461 454,991 ‐22,470 ‐4.71 ‐7.75 499,470 22,009 4.61 12.04 44,479 9.78 19.79 LECENTER 879,178 879,525 347 0.04 ‐0.14 972,302 93,124 10.59 36.69 92,777 10.55 36.83 LENGBY 21,680 21,687 7 0.03 2.67 23,817 2,137 9.86 26.07 2,130 9.82 23.41 LEONARD 7,020 7,024 4 0.06 0.10 7,703 683 9.73 16.66 679 9.67 16.56 LEONIDAS 30,670 30,140 ‐530 ‐1.73 ‐44.72 30,140 ‐530 ‐1.73 ‐44.72 0 0.00 0.00 LEROY 364,268 364,432 164 0.05 ‐4.16 394,389 30,121 8.27 26.79 29,957 8.22 30.95 LESTER PRAIRIE 562,460 562,763 303 0.05 ‐1.40 633,745 71,285 12.67 35.88 70,982 12.61 37.28 LESUEUR 1,072,452 1,073,140 688 0.06 ‐0.32 1,237,749 165,297 15.41 38.68 164,609 15.34 39.00 LEWISTON 500,627 500,859 232 0.05 2.73 551,834 51,207 10.23 36.24 50,975 10.18 33.51 LEWISVILLE 75,600 75,608 8 0.01 0.04 79,853 4,253 5.63 20.85 4,245 5.61 20.81 LEXINGTON 451,367 451,767 400 0.09 ‐27.70 547,162 95,795 21.22 8.85 95,395 21.12 36.55 LILYDALE 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 11 (continued) Pay 2023 Cert LGA Baseline Pay 2024 LGA Baseline Pay 2024 Chg from Pay 2023 Cert LGA Percent Change Per Capita Change Proposed Pay 2024 LGA Proposed Pay 2024 Chg from Pay 2023 Cert LGA Percent Change Per Capita Change Proposed Pay 2024 Chg from Pay 2024 Baseline Percent Change Per Capita Change LINDSTROM 466,619 467,055 436 0.09 ‐0.53 520,117 53,498 11.47 10.25 53,062 11.36 10.78 LINO LAKES 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 LISMORE 68,349 68,352 3 0.00 3.40 71,725 3,376 4.94 20.26 3,373 4.93 16.87 LITCHFIELD 2,116,194 2,116,980 786 0.04 ‐0.12 2,356,397 240,203 11.35 35.99 239,417 11.31 36.12 LITTLE CANADA 220,919 221,262 343 0.16 0.13 410,287 189,368 85.72 17.69 189,025 85.43 17.56 LITTLE FALLS 2,880,627 2,882,334 1,707 0.06 1.09 3,304,375 423,748 14.71 47.39 422,041 14.64 46.31 LITTLEFORK 254,879 254,935 56 0.02 0.10 266,967 12,088 4.74 21.86 12,032 4.72 21.76 LONG BEACH 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 LONG LAKE 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 LONG PRAIRIE 1,179,356 1,180,252 896 0.08 ‐4.87 1,419,882 240,526 20.39 59.55 239,630 20.30 64.42 LONGVILLE 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 LONSDALE 528,845 529,417 572 0.11 ‐2.08 635,884 107,039 20.24 20.20 106,467 20.11 22.28 LORETTO 45,215 45,270 55 0.12 ‐0.02 55,094 9,879 21.85 15.16 9,824 21.70 15.18 LOUISBURG 6,379 6,379 0 0.00 0.00 6,384 5 0.08 0.16 5 0.08 0.16 LOWRY 67,647 67,696 49 0.07 0.76 79,915 12,268 18.14 37.45 12,219 18.05 36.69 LUCAN 56,192 56,224 32 0.06 2.63 64,510 8,318 14.80 41.71 8,286 14.74 39.08 LUVERNE 1,558,606 1,559,262 656 0.04 0.71 1,740,277 181,671 11.66 37.37 181,015 11.61 36.66 LYLE 204,729 204,810 81 0.04 ‐3.57 221,379 16,650 8.13 27.87 16,569 8.09 31.44 LYND 89,343 89,390 47 0.05 2.01 101,298 11,955 13.38 29.57 11,908 13.32 27.56 MABEL 298,582 298,695 113 0.04 0.74 316,834 18,252 6.11 26.11 18,139 6.07 25.37 MADELIA 995,929 996,321 392 0.04 1.56 1,093,749 97,820 9.82 42.36 97,428 9.78 40.80 MADISON 764,562 764,750 188 0.02 ‐0.21 808,340 43,778 5.73 28.49 43,590 5.70 28.70 MADISON LAKE 188,463 188,672 209 0.11 ‐1.16 230,793 42,330 22.46 32.33 42,121 22.32 33.48 MAGNOLIA 52,066 52,081 15 0.03 1.44 57,294 5,228 10.04 28.17 5,213 10.01 26.73 MAHNOMEN 674,081 674,302 221 0.03 2.82 698,173 24,092 3.57 22.17 23,871 3.54 19.34 MAHTOMEDI 0 300 300 NA 0.04 10,098 10,098 NA 1.24 9,798 ******1.20 MANCHESTER 14,372 14,375 3 0.02 11.12 15,023 651 4.53 24.08 648 4.51 12.96 MANHATTAN BEACH 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 MANKATO 7,557,586 7,561,173 3,587 0.05 ‐0.68 8,474,206 916,620 12.13 19.75 913,033 12.08 20.43 MANTORVILLE 316,811 316,949 138 0.04 ‐0.90 344,869 28,058 8.86 24.14 27,920 8.81 25.04 MAPLE GROVE 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 MAPLE LAKE 533,788 533,992 204 0.04 ‐2.51 595,230 61,442 11.51 25.55 61,238 11.47 28.07 MAPLE PLAIN 216,982 217,131 149 0.07 ‐18.62 266,001 49,019 22.59 5.21 48,870 22.51 23.83 MAPLETON 630,445 630,693 248 0.04 2.10 688,082 57,637 9.14 35.83 57,389 9.10 33.74 MAPLEVIEW 53,022 53,024 2 0.00 ‐2.53 55,286 2,264 4.27 13.07 2,262 4.27 15.60 MAPLEWOOD 1,349,617 1,352,182 2,565 0.19 0.02 2,075,989 726,372 53.82 17.20 723,807 53.53 17.18 MARBLE 265,250 265,300 50 0.02 ‐0.63 275,176 9,926 3.74 15.53 9,876 3.72 16.16 MARIETTA 51,498 51,498 0 0.00 0.00 52,994 1,496 2.90 12.90 1,496 2.90 12.90 MARINE ON SAINT CROIX 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 MARSHALL 2,706,253 2,707,861 1,608 0.06 0.26 3,129,953 423,700 15.66 31.26 422,092 15.59 31.00 MAYER 371,583 371,945 362 0.10 ‐4.23 466,337 94,754 25.50 33.13 94,392 25.38 37.37 MAYNARD 119,600 119,613 13 0.01 2.41 125,738 6,138 5.13 21.73 6,125 5.12 19.32 MAZEPPA 245,248 245,391 143 0.06 ‐4.88 270,664 25,416 10.36 23.51 25,273 10.30 28.40 MCGRATH 14,351 14,351 0 0.00 0.00 14,478 127 0.88 3.10 127 0.88 3.10 MCGREGOR 98,043 98,087 44 0.04 ‐1.87 109,580 11,537 11.77 27.83 11,493 11.72 29.70 MCINTOSH 249,107 249,202 95 0.04 4.96 266,773 17,666 7.09 34.30 17,571 7.05 29.33 12 (continued) Pay 2023 Cert LGA Baseline Pay 2024 LGA Baseline Pay 2024 Chg from Pay 2023 Cert LGA Percent Change Per Capita Change Proposed Pay 2024 LGA Proposed Pay 2024 Chg from Pay 2023 Cert LGA Percent Change Per Capita Change Proposed Pay 2024 Chg from Pay 2024 Baseline Percent Change Per Capita Change MCKINLEY 41,262 40,242 ‐1,020 ‐2.47 ‐6.07 40,242 ‐1,020 ‐2.47 ‐6.07 0 0.00 0.00 MEADOWLANDS 27,045 27,060 15 0.06 1.63 31,324 4,279 15.82 33.69 4,264 15.76 32.06 MEDFORD 255,461 255,680 219 0.09 ‐4.59 301,124 45,663 17.87 29.12 45,444 17.77 33.71 MEDICINE LAKE 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 MEDINA 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 MEIRE GROVE 28,591 28,619 28 0.10 0.16 35,838 7,247 25.35 40.26 7,219 25.22 40.11 MELROSE 960,182 960,832 650 0.07 ‐0.85 1,168,567 208,385 21.70 56.60 207,735 21.62 57.45 MENAHGA 428,426 428,693 267 0.06 ‐1.94 482,062 53,636 12.52 37.63 53,369 12.45 39.56 MENDOTA 8,790 6,700 ‐2,090 ‐23.78 ‐15.98 6,700 ‐2,090 ‐23.78 ‐15.98 0 0.00 0.00 MENDOTA HEIGHTS 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 MENTOR 35,259 34,229 ‐1,030 ‐2.92 ‐6.71 34,229 ‐1,030 ‐2.92 ‐6.71 0 0.00 0.00 MIDDLE RIVER 94,382 94,418 36 0.04 0.12 104,304 9,922 10.51 32.64 9,886 10.47 32.52 MIESVILLE 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 MILACA 954,814 955,311 497 0.05 ‐1.19 1,048,215 93,401 9.78 29.43 92,904 9.73 30.62 MILAN 115,655 115,756 101 0.09 4.08 136,576 20,921 18.09 53.42 20,820 17.99 49.34 MILLERVILLE 11,794 11,799 5 0.04 0.05 13,800 2,006 17.01 20.06 2,001 16.96 20.01 MILLVILLE 28,094 28,098 4 0.01 ‐1.20 30,879 2,785 9.91 17.10 2,781 9.90 18.30 MILROY 65,819 65,850 31 0.05 3.10 74,491 8,672 13.18 36.85 8,641 13.12 33.75 MILTONA 79,190 79,268 78 0.10 ‐2.34 96,272 17,082 21.57 36.57 17,004 21.45 38.91 MINNEAPOLIS 74,542,064 74,565,205 23,141 0.03 ‐1.70 81,469,158 6,927,094 9.29 14.20 6,903,953 9.26 15.90 MINNEISKA 3,270 2,500 ‐770 ‐23.55 ‐7.94 4,129 859 26.27 8.86 1,629 65.16 16.79 MINNEOTA 523,890 524,133 243 0.05 1.87 573,758 49,868 9.52 38.36 49,625 9.47 36.49 MINNESOTA CITY 38,942 38,960 18 0.05 2.02 44,700 5,758 14.79 30.72 5,740 14.73 28.70 MINNESOTA LAKE 201,935 202,071 136 0.07 3.48 225,260 23,325 11.55 38.94 23,189 11.48 35.46 MINNETONKA 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 MINNETONKA BEACH 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 MINNETRISTA 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 MIZPAH 12,324 12,340 16 0.13 4.01 13,347 1,023 8.30 21.68 1,007 8.16 17.67 MONTEVIDEO 2,375,333 2,376,712 1,379 0.06 3.46 2,685,398 310,065 13.05 61.06 308,686 12.99 57.60 MONTGOMERY 910,244 911,087 843 0.09 ‐10.29 1,050,767 140,523 15.44 31.08 139,680 15.33 41.37 MONTICELLO 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 MONTROSE 654,559 655,059 500 0.08 ‐2.67 734,888 80,329 12.27 18.13 79,829 12.19 20.81 MOORHEAD 7,391,794 7,395,403 3,609 0.05 ‐0.21 8,291,463 899,669 12.17 19.89 896,060 12.12 20.10 MOOSE LAKE 989,310 989,876 566 0.06 25.56 1,120,380 131,070 13.25 75.70 130,504 13.18 50.14 MORA 1,045,625 1,046,377 752 0.07 ‐5.00 1,229,575 183,950 17.59 44.08 183,198 17.51 49.08 MORGAN 362,639 362,813 174 0.05 3.91 393,181 30,542 8.42 38.42 30,368 8.37 34.51 MORRIS 2,442,599 2,443,646 1,047 0.04 24.03 2,690,572 247,973 10.15 74.80 246,926 10.10 50.78 MORRISTOWN 331,121 331,288 167 0.05 ‐2.02 361,453 30,332 9.16 29.57 30,165 9.11 31.59 MORTON 144,450 144,506 56 0.04 2.73 157,967 13,517 9.36 35.81 13,461 9.32 33.07 MOTLEY 190,828 190,970 142 0.07 0.21 214,412 23,584 12.36 34.68 23,442 12.28 34.47 MOUND 168,842 169,213 371 0.22 0.02 74,762 ‐94,080 ‐55.72 ‐10.02 ‐94,451 ‐55.82 ‐10.04 MOUNDS VIEW 856,860 857,228 368 0.04 0.60 1,026,470 169,610 19.79 13.49 169,242 19.74 12.89 MOUNTAIN IRON 1,436,859 1,437,533 674 0.05 3.03 1,595,717 158,858 11.06 58.30 158,184 11.00 55.27 MOUNTAIN LAKE 941,026 941,303 277 0.03 ‐6.37 1,010,912 69,886 7.43 27.97 69,609 7.39 34.34 MURDOCK 51,118 51,136 18 0.04 ‐2.10 58,105 6,987 13.67 20.38 6,969 13.63 22.48 MYRTLE 9,443 9,446 3 0.03 ‐8.14 10,183 740 7.84 6.90 737 7.80 15.04 13 (continued) Pay 2023 Cert LGA Baseline Pay 2024 LGA Baseline Pay 2024 Chg from Pay 2023 Cert LGA Percent Change Per Capita Change Proposed Pay 2024 LGA Proposed Pay 2024 Chg from Pay 2023 Cert LGA Percent Change Per Capita Change Proposed Pay 2024 Chg from Pay 2024 Baseline Percent Change Per Capita Change NASHUA 0 1 1 NA 0.02 0 0 NA 0.00 ‐1 ‐100.00 ‐0.02 NASHWAUK 346,816 346,890 74 0.02 4.93 361,740 14,924 4.30 20.45 14,850 4.28 15.52 NASSAU 12,598 12,599 1 0.01 0.02 13,163 565 4.48 8.69 564 4.48 8.68 NELSON 32,813 32,834 21 0.06 0.12 38,882 6,069 18.50 33.35 6,048 18.42 33.23 NERSTRAND 39,439 39,449 10 0.03 0.04 44,836 5,397 13.68 19.77 5,387 13.66 19.73 NEVIS 69,068 69,108 40 0.06 ‐3.24 79,935 10,867 15.73 24.96 10,827 15.67 28.20 NEW AUBURN 145,028 145,082 54 0.04 ‐2.43 158,158 13,130 9.05 29.16 13,076 9.01 31.58 NEW BRIGHTON 441,769 442,737 968 0.22 ‐0.16 779,794 338,025 76.52 14.06 337,057 76.13 14.22 NEW GERMANY 33,875 33,938 63 0.19 ‐0.02 48,231 14,356 42.38 30.72 14,293 42.12 30.74 NEW HOPE 867,286 867,898 612 0.07 0.24 1,306,156 438,870 50.60 20.28 438,258 50.50 20.04 NEW LONDON 375,442 375,626 184 0.05 ‐5.50 414,007 38,565 10.27 24.58 38,381 10.22 30.08 NEW MUNICH 81,009 81,065 56 0.07 ‐2.37 94,549 13,540 16.71 35.08 13,484 16.63 37.46 NEW PRAGUE 985,808 986,795 987 0.10 ‐0.75 1,183,527 197,719 20.06 23.18 196,732 19.94 23.93 NEW RICHLAND 454,100 454,355 255 0.06 0.21 503,620 49,520 10.91 40.29 49,265 10.84 40.09 NEW TRIER 3,542 2,682 ‐860 ‐24.28 ‐10.00 3,818 276 7.79 3.21 1,136 42.36 13.21 NEW ULM 4,556,216 4,557,832 1,616 0.04 1.26 5,089,379 533,163 11.70 39.04 531,547 11.66 37.78 NEW YORK MILLS 424,994 425,237 243 0.06 1.98 473,547 48,553 11.42 39.51 48,310 11.36 37.54 NEWFOLDEN 101,485 101,504 19 0.02 0.88 108,724 7,239 7.13 21.45 7,220 7.11 20.57 NEWPORT 452,475 413,575 ‐38,900 ‐8.60 ‐12.85 494,059 41,584 9.19 7.84 80,484 19.46 20.69 NICOLLET 289,679 289,878 199 0.07 ‐4.62 328,788 39,109 13.50 28.78 38,910 13.42 33.40 NIELSVILLE 26,046 26,054 8 0.03 4.44 27,991 1,945 7.47 29.60 1,937 7.43 25.16 NIMROD 8,347 8,359 12 0.14 1.34 11,230 2,883 34.54 35.93 2,871 34.35 34.59 NISSWA 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 NORCROSS 11,117 10,597 ‐520 ‐4.68 ‐10.00 10,597 ‐520 ‐4.68 ‐10.00 0 0.00 0.00 NORTH BRANCH 855,681 856,216 535 0.06 ‐2.29 1,029,202 173,521 20.28 13.27 172,986 20.20 15.56 NORTH MANKATO 1,990,551 1,991,545 994 0.05 ‐1.72 2,283,070 292,519 14.70 18.43 291,525 14.64 20.16 NORTH OAKS 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 NORTH SAINT PAUL 1,536,692 1,537,079 387 0.03 ‐0.30 1,621,246 84,554 5.50 6.49 84,167 5.48 6.79 NORTHFIELD 3,346,845 3,348,723 1,878 0.06 2.00 3,862,310 515,465 15.40 26.99 513,587 15.34 25.00 NORTHOME 56,500 56,500 0 0.00 4.76 58,643 2,143 3.79 18.77 2,143 3.79 14.01 NORTHROP 59,117 59,149 32 0.05 2.54 67,525 8,408 14.22 40.44 8,376 14.16 37.90 NORWOOD YOUNG AMERICA 517,631 518,201 570 0.11 ‐4.19 640,551 122,920 23.75 26.46 122,350 23.61 30.65 NOWTHEN 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 OAK GROVE 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 OAK PARK HEIGHTS 0 0 0 NA 0.00 65,734 65,734 NA 13.61 65,734 NA 13.61 OAKDALE 2,133 2,916 783 36.71 0.03 459,563 457,430 ****** 16.26 456,647 ****** 16.23 ODESSA 36,808 36,811 3 0.01 ‐10.09 38,548 1,740 4.73 6.30 1,737 4.72 16.39 ODIN 26,529 26,546 17 0.06 7.39 30,957 4,428 16.69 44.46 4,411 16.62 37.07 OGEMA 41,660 41,698 38 0.09 2.13 50,843 9,183 22.04 46.52 9,145 21.93 44.39 OGILVIE 117,379 117,428 49 0.04 ‐2.96 129,703 12,324 10.50 28.35 12,275 10.45 31.31 OKABENA 56,287 56,311 24 0.04 ‐3.92 63,165 6,878 12.22 29.35 6,854 12.17 33.27 OKLEE 141,917 141,977 60 0.04 0.15 156,111 14,194 10.00 34.37 14,134 9.96 34.22 OLIVIA 856,135 856,453 318 0.04 1.55 940,270 84,135 9.83 37.46 83,817 9.79 35.91 ONAMIA 305,222 305,296 74 0.02 ‐0.90 317,775 12,553 4.11 14.98 12,479 4.09 15.88 ORMSBY 29,377 29,390 13 0.04 ‐1.98 33,084 3,707 12.62 29.06 3,694 12.57 31.04 ORONO 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 14 (continued) Pay 2023 Cert LGA Baseline Pay 2024 LGA Baseline Pay 2024 Chg from Pay 2023 Cert LGA Percent Change Per Capita Change Proposed Pay 2024 LGA Proposed Pay 2024 Chg from Pay 2023 Cert LGA Percent Change Per Capita Change Proposed Pay 2024 Chg from Pay 2024 Baseline Percent Change Per Capita Change ORONOCO 84,332 84,576 244 0.29 ‐0.02 143,672 59,340 70.36 32.67 59,096 69.87 32.69 ORR 52,379 50,289 ‐2,090 ‐3.99 ‐7.62 54,206 1,827 3.49 11.12 3,917 7.79 18.74 ORTONVILLE 773,625 773,944 319 0.04 ‐4.52 850,883 77,258 9.99 33.08 76,939 9.94 37.60 OSAKIS 521,701 522,009 308 0.06 ‐1.32 591,108 69,407 13.30 37.50 69,099 13.24 38.82 OSLO 80,179 77,809 ‐2,370 ‐2.96 ‐7.17 81,954 1,775 2.21 10.32 4,145 5.33 17.49 OSSEO 623,049 623,151 102 0.02 0.64 678,467 55,418 8.89 21.28 55,316 8.88 20.63 OSTRANDER 59,545 59,559 14 0.02 0.06 65,144 5,599 9.40 24.24 5,585 9.38 24.18 OTSEGO 0 164 164 NA 0.01 73,598 73,598 NA 3.46 73,434 ******3.45 OTTERTAIL 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 OWATONNA 4,833,341 4,836,616 3,275 0.07 ‐1.44 5,727,584 894,243 18.50 32.00 890,968 18.42 33.44 PALISADE 24,469 24,496 27 0.11 ‐4.36 31,262 6,793 27.76 36.15 6,766 27.62 40.51 PARK RAPIDS 630,565 631,353 788 0.12 ‐3.58 856,523 225,958 35.83 49.44 225,170 35.66 53.02 PARKERS PRAIRIE 307,058 307,238 180 0.06 2.86 340,487 33,429 10.89 35.75 33,249 10.82 32.89 PAYNESVILLE 781,439 781,716 277 0.04 ‐8.04 861,726 80,287 10.27 24.63 80,010 10.24 32.67 PEASE 39,817 39,841 24 0.06 ‐0.60 47,202 7,385 18.55 30.20 7,361 18.48 30.80 PELICAN RAPIDS 1,022,264 1,022,674 410 0.04 3.73 1,129,211 106,947 10.46 45.45 106,537 10.42 41.71 PEMBERTON 41,773 41,799 26 0.06 0.91 49,233 7,460 17.86 33.52 7,434 17.79 32.61 PENNOCK 157,080 157,149 69 0.04 0.14 172,367 15,287 9.73 31.91 15,218 9.68 31.77 PEQUOT LAKES 72,725 72,975 250 0.34 ‐0.57 148,537 75,812 104.24 30.29 75,562 103.55 30.85 PERHAM 632,571 632,897 326 0.05 ‐3.13 806,501 173,930 27.50 45.41 173,604 27.43 48.55 PERLEY 23,084 23,102 18 0.08 1.98 27,571 4,487 19.44 41.89 4,469 19.34 39.90 PETERSON 43,461 43,495 34 0.08 0.15 52,397 8,936 20.56 38.19 8,902 20.47 38.04 PIERZ 467,642 467,872 230 0.05 0.40 516,517 48,875 10.45 34.72 48,645 10.40 34.33 PILLAGER 132,078 132,133 55 0.04 ‐2.94 144,644 12,566 9.51 21.45 12,511 9.47 24.39 PINE CITY 743,502 743,921 419 0.06 ‐2.05 855,618 112,116 15.08 33.31 111,697 15.01 35.36 PINE ISLAND 673,282 673,647 365 0.05 ‐3.30 743,554 70,272 10.44 14.90 69,907 10.38 18.20 PINE RIVER 316,201 316,298 97 0.03 ‐4.78 334,511 18,310 5.79 14.93 18,213 5.76 19.71 PINE SPRINGS 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 PIPESTONE 2,418,783 2,420,273 1,490 0.06 11.04 2,748,061 329,278 13.61 90.25 327,788 13.54 79.21 PLAINVIEW 860,977 861,443 466 0.05 ‐2.19 971,892 110,915 12.88 29.23 110,449 12.82 31.41 PLATO 36,464 36,488 24 0.07 ‐0.93 44,510 8,046 22.07 23.23 8,022 21.99 24.16 PLUMMER 46,039 43,259 ‐2,780 ‐6.04 ‐11.20 43,259 ‐2,780 ‐6.04 ‐11.20 0 0.00 0.00 PLYMOUTH 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 PORTER 27,034 27,038 4 0.01 8.27 29,816 2,782 10.29 25.85 2,778 10.27 17.58 PRESTON 507,379 507,517 138 0.03 ‐1.92 539,116 31,737 6.26 21.86 31,599 6.23 23.78 PRINCETON 1,065,329 1,066,115 786 0.07 ‐12.03 1,286,034 220,705 20.72 31.10 219,919 20.63 43.12 PRINSBURG 109,318 109,390 72 0.07 1.36 124,674 15,356 14.05 30.92 15,284 13.97 29.56 PRIOR LAKE 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 PROCTOR 1,106,996 1,107,405 409 0.04 2.77 1,208,235 101,239 9.15 35.32 100,830 9.11 32.56 QUAMBA 23,802 23,813 11 0.05 ‐1.96 26,962 3,160 13.28 27.20 3,149 13.22 29.16 RACINE 85,392 85,438 46 0.05 ‐1.51 96,995 11,603 13.59 23.50 11,557 13.53 25.02 RAMSEY 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 RANDALL 201,539 201,644 105 0.05 1.27 220,857 19,318 9.59 33.03 19,213 9.53 31.76 RANDOLPH 36,397 36,441 44 0.12 ‐2.81 47,370 10,973 30.15 19.77 10,929 29.99 22.58 RANIER 53,834 53,907 73 0.14 0.30 68,443 14,609 27.14 25.89 14,536 26.96 25.59 RAYMOND 278,175 278,344 169 0.06 ‐3.39 306,654 28,479 10.24 32.45 28,310 10.17 35.84 15 (continued) Pay 2023 Cert LGA Baseline Pay 2024 LGA Baseline Pay 2024 Chg from Pay 2023 Cert LGA Percent Change Per Capita Change Proposed Pay 2024 LGA Proposed Pay 2024 Chg from Pay 2023 Cert LGA Percent Change Per Capita Change Proposed Pay 2024 Chg from Pay 2024 Baseline Percent Change Per Capita Change RED LAKE FALLS 626,084 626,258 174 0.03 0.13 664,010 37,926 6.06 28.32 37,752 6.03 28.19 RED WING 298,946 133,066 ‐165,880 ‐55.49 ‐10.04 754,202 455,256 152.29 27.40 621,136 466.79 37.44 REDWOOD FALLS 1,764,547 1,765,763 1,216 0.07 2.63 2,040,707 276,160 15.65 56.89 274,944 15.57 54.26 REGAL 1,313 1,319 6 0.46 0.14 2,430 1,117 85.07 25.98 1,111 84.23 25.84 REMER 84,766 84,838 72 0.08 ‐4.70 100,951 16,185 19.09 35.58 16,113 18.99 40.28 RENVILLE 499,581 499,842 261 0.05 2.88 551,155 51,574 10.32 42.59 51,313 10.27 39.72 REVERE 20,650 20,657 7 0.03 2.72 22,749 2,099 10.16 26.49 2,092 10.13 23.77 RICE 215,705 216,154 449 0.21 ‐3.93 314,777 99,072 45.93 44.11 98,623 45.63 48.04 RICE LAKE 580,317 581,007 690 0.12 0.55 680,008 99,691 17.18 24.69 99,001 17.04 24.14 RICHFIELD 2,038,711 2,039,683 972 0.05 0.53 3,392,552 1,353,841 66.41 37.43 1,352,869 66.33 36.90 RICHMOND 365,752 366,010 258 0.07 ‐2.16 420,628 54,876 15.00 34.52 54,618 14.92 36.68 RICHVILLE 17,011 17,013 2 0.01 2.93 18,026 1,015 5.97 16.26 1,013 5.95 13.33 RIVERTON 4,356 4,366 10 0.23 ‐1.13 7,636 3,280 75.30 25.67 3,270 74.90 26.80 ROBBINSDALE 2,104,927 2,106,022 1,095 0.05 ‐1.79 2,533,996 429,069 20.38 27.06 427,974 20.32 28.84 ROCHESTER 3,958,994 3,963,469 4,475 0.11 ‐0.14 5,026,033 1,067,039 26.95 8.56 1,062,564 26.81 8.70 ROCK CREEK 302,311 302,554 243 0.08 ‐4.75 359,745 57,434 19.00 28.33 57,191 18.90 33.08 ROCKFORD 623,461 624,015 554 0.09 ‐2.92 739,465 116,004 18.61 22.17 115,450 18.50 25.09 ROCKVILLE 234,631 234,757 126 0.05 ‐0.60 288,506 53,875 22.96 21.81 53,749 22.90 22.41 ROGERS 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 ROLLINGSTONE 186,455 186,569 114 0.06 0.17 205,363 18,908 10.14 27.89 18,794 10.07 27.72 ROOSEVELT 29,063 29,082 19 0.07 1.37 34,282 5,219 17.96 35.59 5,200 17.88 34.21 ROSCOE 19,617 19,630 13 0.07 3.67 23,476 3,859 19.67 33.95 3,846 19.59 30.28 ROSE CREEK 104,447 104,511 64 0.06 ‐5.67 119,193 14,746 14.12 30.49 14,682 14.05 36.16 ROSEAU 764,679 765,203 524 0.07 1.72 896,123 131,444 17.19 49.70 130,920 17.11 47.97 ROSEMOUNT 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 ROSEVILLE 0 0 0 NA 0.00 2,808 2,808 NA 0.08 2,808 NA 0.08 ROTHSAY 143,418 143,479 61 0.04 6.63 157,188 13,770 9.60 34.78 13,709 9.55 28.15 ROUND LAKE 129,155 129,197 42 0.03 2.86 140,330 11,175 8.65 32.63 11,133 8.62 29.77 ROYALTON 353,748 353,991 243 0.07 1.27 402,137 48,389 13.68 39.00 48,146 13.60 37.73 RUSH CITY 972,707 973,343 636 0.07 6.69 1,105,708 133,001 13.67 48.57 132,365 13.60 41.89 RUSHFORD 639,948 640,225 277 0.04 0.15 705,947 65,999 10.31 35.48 65,722 10.27 35.33 RUSHFORD VILLAGE 65,099 65,314 215 0.33 ‐0.14 75,216 10,117 15.54 12.33 9,902 15.16 12.47 RUSHMORE 114,585 114,627 42 0.04 2.72 125,726 11,141 9.72 33.38 11,099 9.68 30.66 RUSSELL 96,253 96,312 59 0.06 0.97 110,218 13,965 14.51 41.04 13,906 14.44 40.07 RUTHTON 65,272 65,283 11 0.02 2.63 70,274 5,002 7.66 24.91 4,991 7.65 22.28 RUTLEDGE 22,076 22,107 31 0.14 ‐3.65 30,284 8,208 37.18 33.52 8,177 36.99 37.17 SABIN 119,798 119,925 127 0.11 0.83 142,396 22,598 18.86 37.25 22,471 18.74 36.42 SACRED HEART 218,804 218,871 67 0.03 3.52 233,410 14,606 6.68 32.26 14,539 6.64 28.73 SAINT ANTHONY 13,283 13,295 12 0.09 0.13 16,289 3,006 22.63 33.03 2,994 22.52 32.90 SAINT ANTHONY VILLAGE 652,707 653,194 487 0.07 0.68 717,179 64,472 9.88 7.66 63,985 9.80 6.97 SAINT AUGUSTA 110,804 110,882 78 0.07 ‐0.53 128,963 18,159 16.39 4.55 18,081 16.31 5.08 SAINT BONIFACIUS 374,355 374,497 142 0.04 0.84 428,284 53,929 14.41 24.27 53,787 14.36 23.43 SAINT CHARLES 1,037,168 1,037,841 673 0.06 0.76 1,164,066 126,898 12.24 32.46 126,225 12.16 31.71 SAINT CLAIR 276,562 276,678 116 0.04 2.13 295,773 19,211 6.95 27.73 19,095 6.90 25.60 SAINT CLOUD 14,198,354 14,207,022 8,668 0.06 0.53 15,855,712 1,657,358 11.67 24.51 1,648,690 11.60 23.98 SAINT FRANCIS 543,984 544,640 656 0.12 ‐1.13 645,657 101,673 18.69 11.05 101,017 18.55 12.18 16 (continued) Pay 2023 Cert LGA Baseline Pay 2024 LGA Baseline Pay 2024 Chg from Pay 2023 Cert LGA Percent Change Per Capita Change Proposed Pay 2024 LGA Proposed Pay 2024 Chg from Pay 2023 Cert LGA Percent Change Per Capita Change Proposed Pay 2024 Chg from Pay 2024 Baseline Percent Change Per Capita Change SAINT HILAIRE 70,861 70,870 9 0.01 8.88 75,956 5,095 7.19 28.15 5,086 7.18 19.27 SAINT JAMES 2,005,838 2,007,077 1,239 0.06 4.14 2,260,513 254,675 12.70 57.50 253,436 12.63 53.37 SAINT JOSEPH 1,238,144 1,239,055 911 0.07 ‐2.88 1,488,601 250,457 20.23 32.02 249,546 20.14 34.90 SAINT LEO 23,225 23,238 13 0.06 5.63 26,335 3,110 13.39 39.66 3,097 13.33 34.03 SAINT LOUIS PARK 0 16 16 NA 0.00 70,627 70,627 NA 1.41 70,611 ******1.41 SAINT MARTIN 49,164 49,174 10 0.02 ‐0.47 54,871 5,707 11.61 17.73 5,697 11.59 18.20 SAINT MARY’S POINT 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 SAINT MICHAEL 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 SAINT PAUL 72,817,360 72,852,884 35,524 0.05 ‐0.27 81,648,670 8,831,310 12.13 27.92 8,795,786 12.07 28.19 SAINT PAUL PARK 686,463 686,924 461 0.07 0.92 797,822 111,359 16.22 21.05 110,898 16.14 20.14 SAINT PETER 3,301,023 3,302,512 1,489 0.05 0.12 3,633,535 332,512 10.07 27.56 331,023 10.02 27.43 SAINT ROSA 68 0 ‐68 ‐100.00 ‐1.17 94 26 38.24 0.45 94 NA 1.62 SAINT STEPHEN 198,553 198,655 102 0.05 ‐1.43 216,051 17,498 8.81 20.26 17,396 8.76 21.69 SAINT VINCENT 17,327 17,330 3 0.02 5.48 18,028 701 4.05 17.95 698 4.03 12.46 SANBORN 99,131 99,145 14 0.01 2.92 105,513 6,382 6.44 22.82 6,368 6.42 19.90 SANDSTONE 1,214,229 1,214,451 222 0.02 51.90 1,279,803 65,574 5.40 81.23 65,352 5.38 29.33 SARGEANT 7,530 6,910 ‐620 ‐8.23 ‐8.07 6,910 ‐620 ‐8.23 ‐8.07 0 0.00 0.00 SARTELL 459,159 460,511 1,352 0.29 ‐0.14 786,337 327,178 71.26 16.55 325,826 70.75 16.69 SAUK CENTRE 1,244,122 1,244,834 712 0.06 ‐3.92 1,432,396 188,274 15.13 36.64 187,562 15.07 40.56 SAUK RAPIDS 2,353,217 2,354,071 854 0.04 1.69 2,589,642 236,425 10.05 18.85 235,571 10.01 17.16 SAVAGE 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 SCANDIA 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 SCANLON 239,057 239,199 142 0.06 ‐2.05 265,922 26,865 11.24 24.78 26,723 11.17 26.83 SEAFORTH 17,633 17,642 9 0.05 2.77 19,814 2,181 12.37 29.58 2,172 12.31 26.81 SEBEKA 257,317 257,494 177 0.07 1.65 286,572 29,255 11.37 41.05 29,078 11.29 39.40 SEDAN 7,044 7,049 5 0.07 ‐7.17 7,954 910 12.92 12.94 905 12.84 20.11 SHAFER 283,854 284,096 242 0.09 ‐5.53 330,186 46,332 16.32 33.89 46,090 16.22 39.43 SHAKOPEE 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 SHELLY 64,079 64,090 11 0.02 4.11 68,435 4,356 6.80 28.66 4,345 6.78 24.55 SHERBURN 411,217 411,444 227 0.06 2.43 453,135 41,918 10.19 42.06 41,691 10.13 39.63 SHEVLIN 36,664 36,668 4 0.01 2.00 39,122 2,458 6.70 20.04 2,454 6.69 18.04 SHOREVIEW 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 SHOREWOOD 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 SILVER BAY 574,189 574,425 236 0.04 ‐0.70 633,385 59,196 10.31 30.96 58,960 10.26 31.66 SILVER LAKE 253,831 253,991 160 0.06 ‐1.50 281,950 28,119 11.08 30.60 27,959 11.01 32.10 SKYLINE 16,282 16,299 17 0.10 0.45 22,916 6,634 40.74 23.59 6,617 40.60 23.14 SLAYTON 842,047 842,236 189 0.02 3.66 896,543 54,496 6.47 30.87 54,307 6.45 27.21 SLEEPY EYE 1,663,527 1,664,255 728 0.04 3.16 1,806,443 142,916 8.59 44.60 142,188 8.54 41.44 SOBIESKI 25,214 25,242 28 0.11 0.71 32,894 7,680 30.46 37.32 7,652 30.31 36.61 SOLWAY 12,247 12,252 5 0.04 ‐10.69 13,758 1,511 12.34 8.62 1,506 12.29 19.31 SOUTH HAVEN 35,110 33,260 ‐1,850 ‐5.27 ‐10.00 37,226 2,116 6.03 11.44 3,966 11.92 21.44 SOUTH SAINT PAUL 2,854,979 2,856,152 1,173 0.04 0.15 3,749,065 894,086 31.32 43.19 892,913 31.26 43.04 SPICER 54,344 54,416 72 0.13 0.29 71,273 16,929 31.15 15.51 16,857 30.98 15.23 SPRING GROVE 467,825 468,000 175 0.04 1.93 504,396 36,571 7.82 31.04 36,396 7.78 29.12 SPRING HILL 8,944 8,948 4 0.04 0.06 10,046 1,102 12.32 16.21 1,098 12.27 16.15 SPRING LAKE PARK 563,397 564,230 833 0.15 ‐3.59 771,720 208,323 36.98 23.92 207,490 36.77 27.50 17 (continued) Pay 2023 Cert LGA Baseline Pay 2024 LGA Baseline Pay 2024 Chg from Pay 2023 Cert LGA Percent Change Per Capita Change Proposed Pay 2024 LGA Proposed Pay 2024 Chg from Pay 2023 Cert LGA Percent Change Per Capita Change Proposed Pay 2024 Chg from Pay 2024 Baseline Percent Change Per Capita Change SPRING PARK 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 SPRING VALLEY 947,178 947,438 260 0.03 ‐1.16 1,024,726 77,548 8.19 30.33 77,288 8.16 31.48 SPRINGFIELD 955,091 955,335 244 0.03 3.63 1,019,091 64,000 6.70 35.32 63,756 6.67 31.69 SQUAW LAKE 13,373 13,385 12 0.09 ‐2.61 16,498 3,125 23.37 28.52 3,113 23.26 31.13 STACY 353,965 354,309 344 0.10 ‐0.41 427,739 73,774 20.84 42.58 73,430 20.72 42.99 STAPLES 1,329,746 1,330,529 783 0.06 5.08 1,521,751 192,005 14.44 69.75 191,222 14.37 64.67 STARBUCK 407,129 407,365 236 0.06 ‐2.21 456,067 48,938 12.02 33.18 48,702 11.96 35.39 STEEN 44,421 44,438 17 0.04 1.63 49,703 5,282 11.89 32.60 5,265 11.85 30.97 STEPHEN 250,508 250,573 65 0.03 2.99 263,492 12,984 5.18 24.96 12,919 5.16 21.97 STEWART 175,003 175,042 39 0.02 0.08 185,132 10,129 5.79 20.71 10,090 5.76 20.63 STEWARTVILLE 1,117,361 1,118,227 866 0.08 ‐3.85 1,315,807 198,446 17.76 24.99 197,580 17.67 28.84 STILLWATER 822,214 822,786 572 0.07 ‐0.12 1,257,758 435,544 52.97 22.22 434,972 52.87 22.35 STOCKTON 216,751 216,931 180 0.08 1.22 247,320 30,569 14.10 38.92 30,389 14.01 37.70 STORDEN 59,157 59,184 27 0.05 ‐3.34 66,924 7,767 13.13 30.61 7,740 13.08 33.95 STRANDQUIST 20,561 20,568 7 0.03 ‐4.04 22,203 1,642 7.99 18.99 1,635 7.95 23.03 STRATHCONA 7,338 7,338 0 0.00 0.00 7,213 ‐125 ‐1.70 ‐5.00 ‐125 ‐1.70 ‐5.00 STURGEON LAKE 68,715 68,781 66 0.10 ‐2.34 83,736 15,021 21.86 31.42 14,955 21.74 33.76 SUNBURG 25,518 25,524 6 0.02 2.98 27,530 2,012 7.88 24.55 2,006 7.86 21.57 SUNFISH LAKE 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 SWANVILLE 95,322 95,345 23 0.02 ‐4.35 103,290 7,968 8.36 19.66 7,945 8.33 24.00 TACONITE 129,472 129,493 21 0.02 1.88 133,743 4,271 3.30 8.47 4,250 3.28 6.59 TAMARACK 19,525 19,532 7 0.04 0.11 18,905 ‐620 ‐3.18 ‐10.00 ‐627 ‐3.21 ‐10.11 TAOPI 10,931 10,939 8 0.07 ‐2.76 12,581 1,650 15.09 23.72 1,642 15.01 26.48 TAUNTON 33,960 33,964 4 0.01 1.88 36,390 2,430 7.16 19.85 2,426 7.14 17.97 TAYLORS FALLS 196,685 196,800 115 0.06 ‐1.99 220,189 23,504 11.95 19.93 23,389 11.88 21.92 TENSTRIKE 11,023 11,030 7 0.06 0.04 14,848 3,825 34.70 20.56 3,818 34.61 20.53 THIEF RIVER FALLS 3,329,645 3,331,346 1,701 0.05 4.69 3,714,891 385,246 11.57 49.04 383,545 11.51 44.36 TINTAH 11,231 11,238 7 0.06 2.65 12,781 1,550 13.80 26.02 1,543 13.73 23.38 TONKA BAY 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 TOWER 103,705 103,745 40 0.04 2.36 114,411 10,706 10.32 27.40 10,666 10.28 25.04 TRACY 979,547 979,860 313 0.03 2.67 1,056,215 76,668 7.83 39.64 76,355 7.79 36.98 TRAIL 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 TRIMONT 281,497 281,621 124 0.04 3.03 301,500 20,003 7.11 31.43 19,879 7.06 28.40 TROMMALD 13,040 13,063 23 0.18 ‐4.89 14,724 1,684 12.91 11.23 1,661 12.72 16.13 TROSKY 14,006 14,013 7 0.05 3.05 16,271 2,265 16.17 26.57 2,258 16.11 23.52 TRUMAN 450,949 451,130 181 0.04 3.21 485,683 34,734 7.70 35.09 34,553 7.66 31.88 TURTLE RIVER 137 142 5 3.65 0.06 1,811 1,674 ****** 19.02 1,669 ****** 18.97 TWIN LAKES 33,354 33,365 11 0.03 1.95 36,997 3,643 10.92 29.26 3,632 10.89 27.31 TWIN VALLEY 345,558 345,680 122 0.04 4.17 365,282 19,724 5.71 31.51 19,602 5.67 27.34 TWO HARBORS 1,893,603 1,894,923 1,320 0.07 0.65 2,107,721 214,118 11.31 59.26 212,798 11.23 58.61 TYLER 467,867 468,056 189 0.04 6.40 504,553 36,686 7.84 38.96 36,497 7.80 32.56 ULEN 134,644 129,804 ‐4,840 ‐3.59 ‐14.68 129,804 ‐4,840 ‐3.59 ‐14.68 0 0.00 0.00 UNDERWOOD 81,775 81,813 38 0.05 ‐1.81 92,256 10,481 12.82 27.28 10,443 12.76 29.09 UPSALA 96,603 96,687 84 0.09 1.40 114,332 17,729 18.35 37.86 17,645 18.25 36.46 URBANK 8,095 8,099 4 0.05 0.08 9,010 915 11.30 17.60 911 11.25 17.52 UTICA 43,244 43,256 12 0.03 1.28 48,866 5,622 13.00 22.53 5,610 12.97 21.25 18 (continued) Pay 2023 Cert LGA Baseline Pay 2024 LGA Baseline Pay 2024 Chg from Pay 2023 Cert LGA Percent Change Per Capita Change Proposed Pay 2024 LGA Proposed Pay 2024 Chg from Pay 2023 Cert LGA Percent Change Per Capita Change Proposed Pay 2024 Chg from Pay 2024 Baseline Percent Change Per Capita Change VADNAIS HEIGHTS 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 VERGAS 37,814 37,825 11 0.03 ‐0.28 43,751 5,937 15.70 16.70 5,926 15.67 16.98 VERMILLION 27,196 27,228 32 0.12 0.35 36,545 9,349 34.38 21.58 9,317 34.22 21.22 VERNDALE 192,244 192,302 58 0.03 3.08 205,344 13,100 6.81 28.81 13,042 6.78 25.72 VERNON CENTER 71,610 71,645 35 0.05 1.45 81,424 9,814 13.70 31.44 9,779 13.65 30.00 VESTA 88,284 88,290 6 0.01 3.54 92,903 4,619 5.23 20.43 4,613 5.22 16.90 VICTORIA 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 VIKING 23,897 23,899 2 0.01 11.97 24,887 990 4.14 24.97 988 4.13 13.00 VILLARD 48,431 48,438 7 0.01 ‐0.92 52,815 4,384 9.05 18.45 4,377 9.04 19.37 VINING 10,179 10,184 5 0.05 ‐9.87 11,429 1,250 12.28 8.99 1,245 12.23 18.86 VIRGINIA 6,207,006 6,211,516 4,510 0.07 8.50 7,043,458 836,452 13.48 108.37 831,942 13.39 99.86 WABASHA 608,654 608,910 256 0.04 ‐2.75 685,058 76,404 12.55 26.65 76,148 12.51 29.40 WABASSO 245,075 245,223 148 0.06 2.46 269,482 24,407 9.96 35.51 24,259 9.89 33.05 WACONIA 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 WADENA 1,863,884 1,865,032 1,148 0.06 1.67 2,133,463 269,579 14.46 63.93 268,431 14.39 62.27 WAHKON 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 WAITE PARK 0 308 308 NA 0.04 482,979 482,979 NA 57.72 482,671 ****** 57.68 WALDORF 53,431 53,445 14 0.03 1.40 58,684 5,253 9.83 27.59 5,239 9.80 26.20 WALKER 24,697 24,789 92 0.37 ‐0.27 43,008 18,311 74.14 18.32 18,219 73.50 18.59 WALNUT GROVE 311,581 311,721 140 0.04 4.09 334,754 23,173 7.44 35.05 23,033 7.39 30.96 WALTERS 21,243 21,251 8 0.04 14.12 22,972 1,729 8.14 40.19 1,721 8.10 26.08 WALTHAM 36,274 36,290 16 0.04 ‐6.45 41,236 4,962 13.68 22.82 4,946 13.63 29.27 WANAMINGO 276,253 276,375 122 0.04 ‐6.41 302,170 25,917 9.38 16.16 25,795 9.33 22.57 WANDA 20,601 20,605 4 0.02 ‐11.39 21,912 1,311 6.36 6.04 1,307 6.34 17.43 WARBA 16,661 16,675 14 0.08 1.89 21,294 4,633 27.81 29.88 4,619 27.70 27.99 WARREN 650,347 650,575 228 0.04 3.45 702,369 52,022 8.00 35.99 51,794 7.96 32.53 WARROAD 777,448 777,474 26 0.00 1.65 800,771 23,323 3.00 14.43 23,297 3.00 12.78 WASECA 3,190,217 3,191,938 1,721 0.05 0.49 3,590,037 399,820 12.53 43.66 398,099 12.47 43.17 WATERTOWN 481,497 482,321 824 0.17 ‐3.26 607,164 125,667 26.10 22.65 124,843 25.88 25.91 WATERVILLE 545,086 545,207 121 0.02 ‐0.64 582,724 37,638 6.90 20.75 37,517 6.88 21.39 WATKINS 333,319 333,511 192 0.06 ‐13.80 368,995 35,676 10.70 20.52 35,484 10.64 34.32 WATSON 67,198 67,213 15 0.02 2.12 72,315 5,117 7.61 30.31 5,102 7.59 28.19 WAUBUN 129,719 129,799 80 0.06 ‐0.58 147,163 17,444 13.45 41.77 17,364 13.38 42.35 WAVERLY 231,036 231,433 397 0.17 ‐5.82 320,236 89,200 38.61 38.60 88,803 38.37 44.42 WAYZATA 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 WELCOME 178,864 171,824 ‐7,040 ‐3.94 ‐7.85 171,824 ‐7,040 ‐3.94 ‐7.85 0 0.00 0.00 WELLS 995,728 996,145 417 0.04 4.33 1,097,693 101,965 10.24 46.89 101,548 10.19 42.56 WENDELL 34,962 34,980 18 0.05 ‐1.15 40,233 5,271 15.08 30.30 5,253 15.02 31.46 WEST CONCORD 320,437 320,589 152 0.05 1.04 346,942 26,505 8.27 31.72 26,353 8.22 30.68 WEST SAINT PAUL 1,468,972 1,469,648 676 0.05 ‐0.88 1,831,673 362,701 24.69 16.46 362,025 24.63 17.34 WEST UNION 16,345 16,356 11 0.07 2.07 19,167 2,822 17.27 32.96 2,811 17.19 30.89 WESTBROOK 300,385 300,548 163 0.05 ‐6.98 327,577 27,192 9.05 28.04 27,029 8.99 35.01 WESTPORT 9,002 9,003 1 0.01 0.02 9,289 287 3.19 6.52 286 3.18 6.50 WHALAN 2,841 2,151 ‐690 ‐24.29 ‐11.23 2,151 ‐690 ‐24.29 ‐11.23 0 0.00 0.00 WHEATON 620,494 620,734 240 0.04 6.07 671,337 50,843 8.19 41.21 50,603 8.15 35.14 WHITE BEAR LAKE 827,265 827,565 300 0.04 ‐0.23 1,201,009 373,744 45.18 14.67 373,444 45.13 14.90 19 (continued) Pay 2023 Cert LGA Baseline Pay 2024 LGA Baseline Pay 2024 Chg from Pay 2023 Cert LGA Percent Change Per Capita Change Proposed Pay 2024 LGA Proposed Pay 2024 Chg from Pay 2023 Cert LGA Percent Change Per Capita Change Proposed Pay 2024 Chg from Pay 2024 Baseline Percent Change Per Capita Change WILDER 13,337 13,343 6 0.04 0.10 14,788 1,451 10.88 23.40 1,445 10.83 23.31 WILLERNIE 73,795 73,799 4 0.01 ‐1.10 77,795 4,000 5.42 6.60 3,996 5.41 7.70 WILLIAMS 44,951 44,960 9 0.02 ‐35.14 48,902 3,951 8.79 ‐13.12 3,942 8.77 22.02 WILLMAR 5,255,956 5,259,662 3,706 0.07 ‐0.55 6,117,775 861,819 16.40 40.17 858,113 16.31 40.72 WILLOW RIVER 74,038 74,096 58 0.08 ‐4.27 87,880 13,842 18.70 30.81 13,784 18.60 35.07 WILMONT 100,753 100,781 28 0.03 2.85 109,547 8,794 8.73 29.50 8,766 8.70 26.64 WILTON 23,483 23,517 34 0.14 ‐1.54 32,765 9,282 39.53 32.97 9,248 39.32 34.51 WINDOM 1,608,531 1,609,207 676 0.04 ‐4.68 1,836,232 227,701 14.16 41.95 227,025 14.11 46.64 WINGER 49,402 49,419 17 0.03 0.10 54,643 5,241 10.61 30.12 5,224 10.57 30.02 WINNEBAGO 560,192 560,426 234 0.04 4.26 608,972 48,780 8.71 39.52 48,546 8.66 35.25 WINONA 10,369,443 10,371,545 2,102 0.02 8.62 11,486,132 1,116,689 10.77 52.50 1,114,587 10.75 43.87 WINSTED 680,132 680,314 182 0.03 ‐0.19 739,284 59,152 8.70 26.11 58,970 8.67 26.30 WINTHROP 454,818 454,963 145 0.03 ‐1.93 488,045 33,227 7.31 22.76 33,082 7.27 24.69 WINTON 32,806 32,826 20 0.06 2.44 38,408 5,602 17.08 35.87 5,582 17.00 33.43 WOLF LAKE 11,919 11,930 11 0.09 2.56 14,287 2,368 19.87 36.23 2,357 19.76 33.67 WOLVERTON 29,552 29,560 8 0.03 7.51 32,515 2,963 10.03 31.34 2,955 10.00 23.83 WOOD LAKE 133,720 133,763 43 0.03 8.61 145,137 11,417 8.54 39.18 11,374 8.50 30.58 WOODBURY 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 WOODLAND 0 0 0 NA 0.00 0 0 NA 0.00 0 NA 0.00 WOODSTOCK 29,050 29,057 7 0.02 0.06 31,648 2,598 8.94 23.62 2,591 8.92 23.55 WORTHINGTON 3,576,960 3,578,800 1,840 0.05 1.72 4,117,146 540,186 15.10 40.56 538,346 15.04 38.84 WRENSHALL 62,171 62,218 47 0.08 ‐4.18 74,078 11,907 19.15 22.72 11,860 19.06 26.89 WRIGHT 16,868 16,905 37 0.22 ‐2.12 25,421 8,553 50.71 47.39 8,516 50.38 49.51 WYKOFF 137,688 137,729 41 0.03 ‐1.37 148,506 10,818 7.86 23.46 10,777 7.82 24.83 WYOMING 255,771 256,140 369 0.14 ‐0.10 387,744 131,973 51.60 16.20 131,604 51.38 16.31 ZEMPLE 5,649 5,654 5 0.09 1.01 7,104 1,455 25.76 19.84 1,450 25.65 18.83 ZIMMERMAN 698,579 699,439 860 0.12 ‐3.30 843,155 144,576 20.70 19.22 143,716 20.55 22.52 ZUMBRO FALLS 39,095 38,482 ‐613 ‐1.57 ‐5.55 41,185 2,090 5.35 11.78 2,703 7.02 17.33 ZUMBROTA 691,227 691,757 530 0.08 ‐2.56 820,831 129,604 18.75 31.58 129,074 18.66 34.14 Notes: The figures for ‘per capita change’ in the table above equals (1) the ratio of aid to population in the current year, minus (2) the ratio of aid to population in the prior year. For the purpose of this calculation, ‘population’ means the population estimate used to calculate LGA in each year. In the columns displaying percent change, values larger than 1,000% are displayed as ‘******’. This data is available in alternate formats. Contact Bjorn Arneson at bjorn.arneson@senate.mn (preferred) or 651‐296‐3812. Certified LGA amounts from 1986‐present are available from the Minnesota Department of Revenue website under the “State Aids and Credits” section at this link:https://www. revenue.state.mn.us/property‐tax‐data‐and‐statistics. 20 Central Garage Operations and Replacement ChargesBuilding Replacement 500,000 2024Inflation Rate 3.25%100% replacement rate General Fund Budgets calculated at 100% replacement rateGeneral Fund2023 Operations2023 Replacement 2023 Total2023 Building Replacement2023 Total with Building Replacement 2024 Operations2024 Replacement 2024 Total2024 Building Replacement2024 Total with Building ReplacementGeneral FundOperations Increase (decrease)Replacement Increase (decrease)Building Increase (decrease)Total Increase (decrease)Police 246,946 95,973 342,919 - 342,919 339,062 216,465 555,527 - 555,527 Police 92,116 120,491 - 212,607 Police Reserve 6,812 - 6,812 - 6,812 - - - - - Police Reserve (6,812) - - (6,812) Animal Control 6,202 10 6,212 - 6,212 8,420 10 8,430 - 8,430 Animal Control 2,218 - - 2,218 Protective Inspection 8,515 2,568 11,083 - 11,083 10,457 4,002 14,459 - 14,459 Protective Inspection 1,942 1,434 - 3,376 Fire Station 1,656 36,731 38,387 - 38,387 982 35,772 36,753 - 36,753 Fire Station (674) (959) - (1,633) Municipal 10,571 45,174 55,745 71,429 127,174 6,660 42,410 49,070 71,429 120,499 Municipal (3,911) (2,764) - (6,675) Streets 128,780 286,459 415,239 71,429 486,668 186,072 287,008 473,081 71,429 544,510 Streets 57,293 549 - 57,842 Parks 97,296 95,672 192,968 71,429 264,396 78,939 93,415 172,354 71,429 243,783 Parks (18,357) (2,257) - (20,613) Total General Fund 506,778 562,587 1,069,365 214,286 1,283,651 630,593 679,082 1,309,675 214,286 1,523,961 Total General Fund 123,815 116,495 - 240,310 100% replacement rate Proprietary Fund Budgets calculated at 100% replacement rateProprietary Funds2023 Operations2023 Replacement 2023 Total2023 Building Replacement2023 Total with Building Replacement 2024 Operations2024 Replacement 2024 Total2024 Building Replacement2024 Total with Building ReplacementProprietary FundsOperations Increase (decrease)Replacement Increase (decrease)Building Increase (decrease)Total Increase (decrease)Storm Water 40,533 45,000 85,533 71,429 156,962 52,499 40,613 93,112 71,429 164,541 Storm Water 11,966 (4,387) - 7,579 Water 71,233 68,158 139,391 71,429 210,820 96,423 68,039 164,462 71,429 235,890 Water 25,190 (119) - 25,071 Sanitary Sewer 42,691 91,668 134,359 71,429 205,788 60,278 60,729 121,007 71,429 192,435 Sanitary Sewer 17,587 (30,939) - (13,353) Golf Course 3,425 19,445 22,870 - 22,870 4,495 20,417 24,912 - 24,912 Golf Course 1,070 972 - 2,042 Ice Arena 3,087 34,974 38,061 - 38,061 2,969 35,152 38,121 - 38,121 Ice Arena (118) 179 - 61 Central Garage 15,078 46,896 61,974 71,429 133,403 32,579 40,646 73,224 71,429 144,653 Central Garage 17,501 (6,251) - 11,250 Total Proprietary Funds 176,047 306,141 482,188 285,714 767,903 249,242 265,596 514,838 285,714 800,552 Total Proprietary Funds 73,196 (40,546) - 32,650 Total Charges 682,824 868,729 1,551,553 500,000 2,051,553 879,835 944,678 1,824,513 500,000 2,324,513 Total Charges 197,011 75,949 - 272,960 2024 Administrative Transfers BudgetCompanyBusinessUnitObjectAccountAnnual Budget 2022 (2.5% Increase)Annual Budget 2023 (2.5% Increase)Annual Budget 2024 (2.5% Increase)Change from 2023 to 202409001 - General Fund 9001 - General-Bal Sht/Income 7385 - Admin Trnsfr Exp -302,042.08 -309,593.13 -317,332.96 -7,739.83TOTAL REVENUE (GENERAL FUND)-302,042.08 -309,593.13 -317,332.96 -7,739.8309015 - Econ Devlpmt Authority 0320 - Econ Devlpmt Authority 7385 - Admin Trnsfr Exp 37,422.21 38,357.77 39,316.71 958.9409300 - Sewer 0391 - Sewer Admin 7385 - Admin Trnsfr Exp 58,376.93 59,836.35 61,332.26 1,495.9109301 - Water 0069 - Water Admin 7385 - Admin Trnsfr Exp 60,872.16 62,393.97 63,953.82 1,559.8509302 - Golf Course 0081 - Golf Course 7385 - Admin Trnsfr Exp 11,314.18 11,597.04 11,886.96 289.9309303 - Ice Arena 0082 - Ice Arena 7385 - Admin Trnsfr Exp 11,314.18 11,597.04 11,886.96 289.9309304 - Storm Water 0290 - Storm Admin 7385 - Admin Trnsfr Exp 25,446.14 26,082.29 26,734.35 652.0609402 - C Garage-Operation 0090 - C Garage-Operation7385 - Admin Trnsfr Exp 37,422.21 38,357.77 39,316.71 958.9409410 - Information Technology 0353 - Information Technology 7385 - Admin Trnsfr Exp 59,874.07 61,370.92 62,905.19 1,534.27TOTAL EXPENSE (ALL FUNDS)302,042.08 309,593.13 317,332.96 7,739.83 Memorandum To: Reece Bertholf From: Rich Johnson Date: June 14, 2023 Subject: Information Regarding Health Insurance, City Contribution and Wages for 2024 Insurance/City Contribution: In 2019, the city went out for bids via a formal Request for Proposals (RFP) on health insurance. Following a very competitive bidding process, the city realized a 10.24% reduction in health insurance premiums for 2020 as well as rate caps of 9% in both 2021 and 2022. In 2021, due to the city’s usage being low, HealthPartners offered the city a 0% increase for 2022 if the city would enter into a three-year agreement which would include 9% rate caps for 2023 and 2024. The city accepted this offer, therefore the maximum increase to health insurance premiums will be 9% in 2024. It is worth noting that if the city’s experience does not warrant a 9% increase, a lesser increase will be given. As has been the city’s past practice, a 9% increase in health insurance premiums is included in the 2024 preliminary budget, with both the city and employees each picking up 1/2 of the increase. If the final premium increases are below the budgeted increase of 9%, this amount will be reduced as the budget process progresses. The city’s insurance committee (comprised of employees representing each employee group city-wide) has not yet been convened in 2023, however, the committee will meet in July to discuss usage trends, etc. No plan changes will be made for 2024 as the city is under contract through 2024. Staff has had preliminary discussions with the city’s health insurance broker (Arthur J. Gallagher & Co.) regarding usage. As indicated above, staff has used 9% as the potential increase for 2024 regarding health insurance and would like to share this information with the City Council. Please see the attachment entitled “City Contribution and Insurance Plans History 2000 – 2024 (Proposed)” for detailed information. In recent years, the city contribution towards health insurance has been increased by approximately one- half of the premium increase. If this philosophy were to be continued, it would result in the following increases to the city contribution towards insurance in 2024: • Single $27/month • Employee + 1 $60/month • Family $70/month I:\RFA\City Manager\2023\Budget 2024\ws 062023\Memo re 2024 Insurance City Contribution and Wage Info.docx If the above increases are approved the city contribution towards health insurance in 2023 is projected to be as follows: 2024 (Projected) 2023 (Current Year) • Single $1,087/month $1,061/month • Employee + 1 $1,516/month $1,457/month • Family $1,697/month $1,628/month Wages: One of the major considerations in determining an appropriate across-the-board wage increase, sometimes referred to as a cost of living adjustment (COLA) is the Consumer Price Index (CPI). The CPI is communicated as a percentage increase or decrease over a specific period of time and is issued by the U.S. Bureau of Labor Statistics. It is based on the cost of an established list of goods and services over time. The most recent data available for the Minneapolis-St. Paul metropolitan area covers the 12-month period ending in May 2023. During this period, the CPI increased 3.7% overall or 5.0% on all items less food and energy. In addition to information regarding the CPI, over the next several months staff will compile the proposed increases planned by New Hope’s twelve comparable cities. Preliminary budgeting for 2024 includes a recommended 3.0% across the board wage increase for New Hope employees in 2024. Collective bargaining agreements with Local #49, LELS #77 and LELS #273 have been approved by both parties and include a 3.0% across the board increase for 2024. A 3.0% COLA is included in the 2024 West Metro Fire District budget, however information on the City of Crystal was not available as of today. The cost to implement these changes has been included in the initial figures provided in the 2023 personnel costs. Staff is also planning to conduct a compensation study yet this year which would result in the need to fund wage adjustments should that be indicated by the study. Year Street Infrastructure% IncreasePark Infrastructure% IncreaseAdd'l Levy for Ice Arena Debt ServiceTotal Levy2000 1,010,000                            252,500                       2001 1,010,000                            0.00% 252,500                        0.00%2002 1,017,070                            0.70% 254,268                        0.70%2003 1,050,633                            3.30% 262,658                        3.30%2004 1,082,152                            3.00% 270,538                        3.00%2005 1,114,617                            3.00% 278,645                        3.00%2006 1,148,056                            3.00% 287,004                        3.00%2007 1,182,498                            3.00% 295,614                        3.00%2008 1,182,500                            0.00% 296,000                        0.13%2009 1,182,500                            0.00% 296,000                        0.00%2010 1,182,500                            0.00% 296,000                        0.00%2011 1,182,500                            0.00% 296,000                        0.00%2012 1,182,500                            0.00% 296,000                        0.00%2013 1,182,500                            0.00% 296,000                        0.00%2014 1,182,500                            0.00% 296,000                        0.00%2015 1,217,975                            3.00% 304,880                        3.00%2016 1,254,514                            3.00% 314,026                        3.00%2017 1,292,150                            3.00% 323,447                        3.00%2018 1,330,915                            3.00% 333,154                        3.00% 200,000                        533,154                       2019 1,397,460                            5.00% 349,800                        5.00% 300,000                        649,800                       2020 1,467,333                            5.00% 367,290                        5.00% 400,000                        767,290                       2021 1,540,700                            5.00% 385,655                        5.00% 500,000                        885,655                       2022 1,617,735                            5.00% 404,938                        5.00% 500,000                        904,938                       2023 1,698,622                            5.00% 425,185                        5.00% 500,000                        925,185                       2024 1,783,553                            5.00% 446,444                        5.00% 500,000                        946,444                       INFRASTRUCTURE LEVY Attachment 1 2023 Levied 2024 Requested Increase /  Decrease Program or service Base Levy General fund 12,076,955$       12,680,803$       603,848$            5.00          3.17          % Street Improvements 1,698,622           1,783,553           84,931                5.00          0.45           Park Improvements (1)925,185              946,444              21,259                2.30          0.11           Economic Development Authority 160,650              168,683              8,033                  5.00          0.04           Housing and Redevelopment Authority 437,850              459,743              21,893                5.00          0.11           Fire Capital (2)‐                           ‐                           ‐                           ‐             ‐             Swimming Pool Capital (2)‐                           ‐                           ‐                           ‐             ‐             City Hall Capital (2)‐                           ‐                           ‐                           ‐             ‐             Debt Service 2015A GO TIF Bonds (City Center) 237,853              235,017              (2,836)                 (1.19)         (0.01)          2015B GO Imp Bonds (Northwoods South) 208,745              206,685              (2,060)                 (0.99)         (0.01)          2016A GO Imp Bonds (Northwoods North) 263,709              259,352              (4,357)                 (1.65)         (0.02)          2017A GO Bonds (Police Dept/City Hall) 1,705,515           1,706,828           1,313                  0.08          0.01           2018A GO Tax Abatement Bonds (Pool and Park) 867,464              865,784              (1,680)                 (0.19)         (0.01)          2019A GO Tax Abatement Bonds (Pool and Park Ph. 2) 470,768              468,668              (2,100)                 (0.45)         (0.01)          Total Property Taxes 19,053,316$       19,781,559$       728,243$            3.82          3.82          % (1) Includes an increase of 5% as the annual Park Infrastructure Levy increase, plus an additional $500,000 levy to support Ice Arena debt service. (2) Instead of levying for $100,000, a transfer from the general fund could be made.  This would put the general  fund unassigned fund balance to 42.7% of the 2023 expenditure budget. PROPERTY TAX LEVY ‐ ALL FUNDS COMPARISON OF PROPERTY TAXES % Change  from Prior  Year % of Total  Change Attachment 2 2023 Levied 2024 Requested Increase /  Decrease Program or service Base Levy General fund 12,076,955$       12,922,342$       845,387$            7.00          4.44          % Street Improvements 1,698,622           1,783,553           84,931                5.00          0.45           Park Improvements (1)925,185              946,444              21,259                2.30          0.11           Economic Development Authority 160,650              168,683              8,033                  5.00          0.04           Housing and Redevelopment Authority 437,850              459,743              21,893                5.00          0.11           Fire Capital (2)‐                           ‐                           ‐                           ‐             ‐             Swimming Pool Capital (2)‐                           ‐                           ‐                           ‐             ‐             City Hall Capital (2)‐                           ‐                           ‐                           ‐             ‐             Debt Service 2015A GO TIF Bonds (City Center) 237,853              235,017              (2,836)                 (1.19)         (0.01)          2015B GO Imp Bonds (Northwoods South) 208,745              206,685              (2,060)                 (0.99)         (0.01)          2016A GO Imp Bonds (Northwoods North) 263,709              259,352              (4,357)                 (1.65)         (0.02)          2017A GO Bonds (Police Dept/City Hall) 1,705,515           1,706,828           1,313                  0.08          0.01           2018A GO Tax Abatement Bonds (Pool and Park) 867,464              865,784              (1,680)                 (0.19)         (0.01)          2019A GO Tax Abatement Bonds (Pool and Park Ph. 2) 470,768              468,668              (2,100)                 (0.45)         (0.01)          Total Property Taxes 19,053,316$       20,023,098$       969,782$            5.09          5.09          % (1) Includes an increase of 5% as the annual Park Infrastructure Levy increase, plus an additional $500,000 levy to support Ice Arena debt service. (2) Instead of levying for $100,000, a transfer from the general fund could be made.  This would put the general  fund unassigned fund balance to 42.7% of the 2023 expenditure budget. PROPERTY TAX LEVY ‐ ALL FUNDS COMPARISON OF PROPERTY TAXES % Change  from Prior  Year % of Total  Change Attachment 3 2023 Levied 2024 Requested Increase /  Decrease Program or service Base Levy General fund 12,076,955$       12,680,803$       603,848$            5.00          3.17          % Street Improvements 1,698,622           1,783,553           84,931                5.00          0.45           Park Improvements (1)925,185              946,444              21,259                2.30          0.11           Economic Development Authority 160,650              168,683              8,033                  5.00          0.04           Housing and Redevelopment Authority 437,850              459,743              21,893                5.00          0.11           Fire Capital ‐                          100,000              100,000              100.00      0.52           Swimming Pool Capital ‐                          100,000              100,000              100.00      0.52           City Hall Capital ‐                          100,000              100,000              100.00      0.52           Debt Service 2015A GO TIF Bonds (City Center) 237,853              235,017              (2,836)                 (1.19)         (0.01)          2015B GO Imp Bonds (Northwoods South) 208,745              206,685              (2,060)                 (0.99)         (0.01)          2016A GO Imp Bonds (Northwoods North) 263,709              259,352              (4,357)                 (1.65)         (0.02)          2017A GO Bonds (Police Dept/City Hall) 1,705,515           1,706,828           1,313                  0.08          0.01           2018A GO Tax Abatement Bonds (Pool and Park) 867,464              865,784              (1,680)                 (0.19)         (0.01)          2019A GO Tax Abatement Bonds (Pool and Park Ph. 2) 470,768              468,668              (2,100)                 (0.45)         (0.01)          Total Property Taxes 19,053,316$       20,081,559$       1,028,243$         5.40          5.40          % (1) Includes an increase of 5% as the annual Park Infrastructure Levy increase, plus an additional $500,000 levy to support Ice Arena debt service. % Change  from Prior  Year % of Total  Change PROPERTY TAX LEVY ‐ ALL FUNDS COMPARISON OF PROPERTY TAXES I:\RFA\POLICE\2023\Work Sessions\Q ‐ lease VW Tiguan.docx   Request for Action  June 20, 2023    Approved by: Reece Bertholf, City Manager  Originating Department: Police  By: Tim Hoyt, Police Chief     Agenda Title  Discuss the leasing of an unmarked vehicle through Enterprise Fleet Management   Requested Action  Staff requests that the City Council authorize the city to assume a lease for a vehicle that was previously  assigned to the Northwest Metro Drug Task Force.   Policy/Past Practice  Vehicle and equipment replacement are part of the city’s CIP that is continually updated and reviewed with  Council. In 2021 the city began leasing vehicles through Enterprise Fleet Management to improve efficiency  and as a potential cost‐savings.   Background  In 2021, following City Council’s approval, the city began leasing vehicles through Enterprise Fleet  Management. The city has ordered 25 vehicles through Enterprise’s lease program and is in possession of 18  of them.     This spring the Northwest Metro Drug Task Force dissolved. Other task force opportunities are being  explored with the county. The city is able to assume the lease of the vehicle that was driven by the city’s  investigator who was assigned to the task force. The vehicle is a 2022 Volkswagen Tiguan. The city will save  approximately $5,000 in ancillary equipment set‐up and installation costs as the vehicle is already equipped  as an unmarked vehicle. The monthly lease price is $480.67 ($5,768 annually), and the lease cost would be  funded through the central garage vehicle replacement fund.    At the work session of March 20, 2023, Council authorized staff to purchase or lease vehicles planned for  replacement through year 2024 per the CIP (with ratification by Council at a later date). The subject vehicle  was not included in the CIP as it was a drug task force asset and the lease was through the city of Plymouth.  Recommendation  Staff recommends Council authorize the city manager to enter into a lease with Enterprises Fleet Management  for the 2022 Volkswagen Tiguan. The city previously entered into a Master Equity Lease Agreement with  Enterprise Fleet Management and additional vehicles may be leased through the open‐end lease rate quotes.    Agenda Section Work Session Item Number  11.4  I:\RFA\City Manager\2023\Closed mtg\ws 062023\RFA 11.4 Closed Mtg litigation.docx    Request for Action  June 20, 2023    Approved by: Reece Bertholf, City Manager  Originating Department: City Manager  By: Valerie Leone, City Clerk‐Treasurer    Agenda Title  Resolution calling for a closed meeting of the New Hope City Council authorized by Minn. Stat §13D.05,  Subd. 3(b) to discuss and consider litigation defense and settlement strategies  Requested Action  Staff requests the opportunity to discuss with the Council litigation strategy.     Policy/Past Practice  Per MS §13D.05, subd. 3(b) meetings between the governing body and its attorney to discuss active,  threatened, or pending litigation may be closed when balancing of the purposes served by the attorney‐client  privilege against those served by the open meeting law dictates the need for absolute confidentiality. The  need for absolute confidentiality should relate to litigation strategy and will usually arise only after a  substantive decision on the underlying matter has been made.    Background  The closed meeting will be held immediately following adjournment of the regular work session.    Before closing the meeting, Council must state on the record the specific grounds permitting the meeting to  be closed and describe the subject to be discussed (Ashton Homes, LLC; Berkeley Heights Homes, LLC,  Sekou AM Dukuly and Dr. Sheikh K. Dukuly II v. City of New Hope, Tim Hoyt and Eric Hanson lawsuit  regarding rental registration permit revocations of properties at 3840 Boone Ave. N. and 3957 Wisconsin Ave  N.).    Ms. Jessica Schwie with Kennedy & Graven will be in attendance. She is the attorney appointed by the  League of Minnesota Cities Insurance Trust who is handling the lawsuit on behalf of the city.   Attachment   Resolution    Agenda Section Work Session Item Number  11.5  1 RESOLUTION NO. 23-__ RESOLUTION CALLING FOR A CLOSED MEETING OF THE NEW HOPE CITY COUNCIL AUTHORIZED BY MINN. STAT. §13D.05, SUBD. 3(b) TO DISCUSS AND CONSIDER LITIGATION DEFENSE AND SETTLEMENT STRATEGIES WHEREAS, the New Hope City Council (“Council”) is considering litigation defense and potential settlement strategies relating to the ongoing litigation titled Ashton Homes; Berkeley Heights Homes, LLC, Sekou AM Dukuly and Dr. Sheikh K. Dukuly II v. City of New Hope, Tim Hoyt and Eric Hanson (“Lawsuit”) regarding rental registration permit revocations of properties at 3840 Boone Ave. N. and 3957 Wisconsin Ave N., New Hope, Minnesota; WHEREAS, the specific grounds permitting the meeting to be closed are the Council’s discussion and consideration of litigation defense and settlement strategies in the Lawsuit with the City Attorney and the attorneys retained to represent the City in defense of said Lawsuit, Jessica Schwie and Josh Devaney of the law firm Kennedy & Graven, Chartered (“Special Counsel”); WHEREAS, the Council is considering litigation methods and strategy including potential settlement strategies and requires the legal advice of the City Attorney and the Special Counsel regarding the same; WHEREAS, the Council’s discussion and consideration of litigation methods and strategy including potential settlement strategies in the Lawsuit with City Attorney and Special Counsel is covered by the attorney-client privilege pursuant to Minn.Stat.§13D.05, Subd. 3(b); WHEREAS, the balancing of the purposes of the attorney-client privilege against the purposes of the open meeting law demonstrates the need for absolute confidentiality and requires a closed meeting; WHEREAS, Minn. Stat. §13D.05 Subd. 3(b) authorizes and permits the Council, by a majority vote taken in a public meeting, to hold a closed meeting to discuss and consider litigation methods and strategy including potential settlement strategies with the City Attorney and Special Counsel pursuant to attorney-client privilege; and WHEREAS, a closed meeting is necessary in that public disclosure of the information to be discussed at the closed meeting could possibly damage the City Council’s position in defending itself against this Lawsuit. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of New Hope as follows: 2 1. That a closed meeting of the City Council shall be held on 20th day of June, 2023 immediately following the adjournment of the regularly scheduled work session meeting of the New Hope City Council in the Northwood Conference Room at the New Hope City Hall. 2. That the purpose of the meeting shall be the discussion of the litigation methods and litigation strategy in the Lawsuit with the City Attorney and the Special Counsel. 3. That said meeting shall not be open to the public. 4. That the New Hope City Clerk shall not be directed to electronically record the meeting because it is a closed meeting under the attorney-client privilege. 5. That the New Hope City Clerk shall prepare a written roll of the City Councilmembers and all other persons present at the closed meeting and make said roll available for public inspection upon adjournment of the closed meeting. Adopted by the City Council of the City of New Hope, Hennepin County, Minnesota, this 20th day of June, 2023. ____________________________________ Kathi Hemken, Mayor Attest: _______________________ Valerie Leone, City Clerk P:\Attorney\SAS\1 Client Files\2 City of New Hope\99-53088 Ashton Homes, Berkeley Heights, Dukuly lawsuit\Resolution - closed meeting - 6- 20-23.docx