2021-06-15 Council agenda packetCITY OF MENDOTA HEIGHTS
CITY COUNCIL AGENDA
June 15, 2021 – 6:00 pm
Mendota Heights City Hall
1. Call to Order
2. Roll Call
3. Pledge of Allegiance
4. Adopt Agenda
5. Consent Agenda
a. Approve the June 1, 2021 City Council Minutes
b. Approve the June 2, 2021 Joint Council-Parks Rec Commission Planning Session minutes
c. Approve the June 8, 2021 Joint Council-Parks Rec Commission Planning Session minutes
d. Approve the June 9, 2021 City Council Work Session minutes
e. Acknowledge April 2021 Par 3 Financial Report
f. Approve Renewal of Massage Licenses
g. Approve Hiring of Office Support Assistant
h. Approve Resolution 2021-52 Accept Bids and Award Sanitary Sewer Cleaning and
Televising Project
i. Approve Resolution 2021-51 Accepting Donations for City Events
j. Approve Room Rental Policy
k. Approve Building Activity Report
l. Approval of Claims List
6. Citizen Comment Period (for items not on the agenda)
*See guidelines below
7. Presentations
a. FY 2020 City Audit
b. 2021 Work Plan by Dakota County Master Gardeners
8. Public Hearing
a. Resolution 2021-44 Vacating Drainage and Utility Easement – Pine Creek Estates
9. New and Unfinished Business
a. Resolution 2021-50 Approve Final Plat of Audrey Addition (f/k/a Moehn Addition) – 1770
Dodd Road (Lakes, LLC / Sean Doyle – developer)
b. Resolution 2021-53 Calling for Public Hearing to Approve Vacation of Right of Way
c. Resolution 2021-54 Support for the Submittal of a Request for State Bonding for Capital
Improvements At Oheyawahe/Historic Pilot Knob
10. Community Announcements
11. Council Comments
12. Adjourn
Guidelines for Citizen Comment Period: “The Citizen Comments section of the agenda provides an
opportunity for the public to address the Council on items which are not on the agenda. All are welcome to
speak.
Comments should be directed to the Mayor. Comments will be limited to 5 minutes per person and topic;
presentations which are longer than five minutes will need to be scheduled with the City Clerk to appear on a
future City Council agenda. Comments should not be repetitious.
Citizen comments may not be used to air personal attacks, to air personality grievances, to make political
endorsements, or for political campaign purposes. Council members will not enter into a dialogue with
citizens, nor will any decisions be made at that presentation.
Questions from the Council will be for clarification only. Citizen comments will not be used as a time for
problem solving or reacting to the comments made, but rather for hearing the citizen for information only. If
appropriate, the Mayor may assign staff for follow up to the issues raised.”
For viewing City Council meetings, tune in to Comcast Cable Channel 18 or view online at
https://www.townsquare.tv/webstreaming during the posted meeting times.
Meetings can also be viewed on demand, after the original airing, at
https://www.townsquare.tv/webstreaming .
CITY OF MENDOTA HEIGHTS
DAKOTA COUNTY
STATE OF MINNESOTA
Minutes of the Regular Meeting
Held Tuesday, June 1, 2021
Pursuant to due call and notice thereof, the regular meeting of the City Council, City of Mendota Heights,
Minnesota was held at 6:00 p.m. at City Hall, 1101 Victoria Curve, Mendota Heights, Minnesota.
CALL TO ORDER
Mayor Levine called the meeting to order at 6:00 p.m. Councilors Duggan, Paper, and Mazzitello were
also present. Councilor Miller was absent.
PLEDGE OF ALLEGIANCE
Council, the audience, and staff recited the Pledge of Allegiance.
AGENDA ADOPTION
Mayor Levine presented the agenda for adoption. Councilor Duggan moved adoption of the agenda.
Councilor Mazzitello seconded the motion.
Ayes: 4
Nays: 0
CONSENT CALENDAR
Mayor Levine presented the consent calendar and explained the procedure for discussion and approval.
Councilor Mazzitello moved approval of the consent calendar as presented, pulling items a., g., h., and l.
a. Approval of May 18, 2021 City Council Minutes
b. Approval of May 24, 2021 City Council Closed Session Minutes
c. Acknowledge March 17, 2021 Airport Relations Commission Meeting Minutes
d. Acknowledge the April 27, 2021 Planning Commission Meeting Minutes
e. Approve Renewal of the 2021-2022 Liquor Licenses
f. Approve Resolution 2021-43 Authorizing the Disposal of Obsolete Computers, Cellular and
Electronic Storage Devices and Accessories
g. Approve Ordinance No. 567 Amend 2021 Fee Schedule – Add Par 3 Senior Golf Pass
h. Approve Resolution 2021-49 Joint Powers Agreement with Dakota County to Operate a
Residential Organics Drop-Off Site
i. Approve Resolution 2021-45 Authorizing the Disposal of Obsolete Equipment
j. Approve Temporary Authorization of the Police Department’s Sworn Staff to 21 and Hiring of 2
Police Officers
k. Approve April 2021 Treasurer’s Report
June 1, 2021 Mendota Heights City Council Page 2 of 13
l. Approval of Claims List
Councilor Duggan seconded the motion.
Ayes: 4
Nays: 0
PULLED CONSENT AGENDA ITEMS
A) APPROVAL OF MAY 18, 2021 CITY COUNCIL MINUTES
Councilor Duggan noted on page seven, it should state, “…existing lights at Marie Park…”
Councilor Duggan moved to approve MAY 18, 2021 CITY COUNCIL MINUTES AS AMENDED.
Councilor Mazzitello seconded the motion.
Ayes: 4
Nays: 0
PULLED CONSENT AGENDA ITEMS
G) APPROVE ORDINANCE NO. 567 AMEND 2021 FEE SCHEDULE – ADD PAR 3 SENIOR
GOLF PASS
Mayor Levine asked the definition of senior for the golf pass.
Recreation Program Coordinator Meredith Lawrence replied that seniors are categorized as those 65 and
above.
Councilor Duggan moved to approve ORDINANCE NO. 567 AMEND 2021 FEE SCHEDULE – ADD
PAR 3 SENIOR GOLF PASS.
Councilor Mazzitello seconded the motion.
Ayes: 4
Nays: 0
PULLED CONSENT AGENDA ITEMS
H) APPROVE RESOLUTION 2021-49 JOINT POWERS AGREEMENT WITH DAKOTA COUNTY
TO OPERATE A RESIDENTIAL ORGANICS DROP-OFF SITE
Mayor Levine stated that she is excited about this program. She stated that the packet mentioned a grand
opening of July 15th and wanted to ensure the public is made aware of that date. Public Works Director
Ryan Ruzek stated that there is not an event being planned, but the dumpsters will be dropped off on that
date and organics drop-off will begin on that date.
Mayor Levine encouraged residents to participate, noting that it helped her household reduce their trash
by half.
Councilor Duggan asked how it would be controlled to prevent mixing of trash and organics.
June 1, 2021 Mendota Heights City Council Page 3 of 13
Mayor Levine commented that when you sign up there is a packet of educational materials provided to
assist users with using the program correctly.
Councilor Duggan moved to approve RESOLUTION 2021-49 JOINT POWERS AGREEMENT WITH
DAKOTA COUNTY TO OPERATE A RESIDENTIAL ORGANICS DROP-OFF SITE.
Councilor Mazzitello seconded the motion.
Ayes: 4
Nays: 0
PULLED CONSENT AGENDA ITEMS
K) APPROVAL OF CLAIMS LIST
Councilor Duggan referenced the workers compensation insurance payment and asked who it covers.
Finance Director Kristen Schabacker replied that the coverage applies to all full-time City employees.
Councilor Duggan referenced a mention of property taxes paid and asked for clarification. Ms.
Schabacker provided additional details on the two properties the City purchased and has to pay property
taxes on for this year. She stated that the properties will then be reclassified, and the City will not be
required to pay property taxes on those parcels next year.
Councilor Duggan moved to approve the CLAIMS LIST.
Councilor Mazzitello seconded the motion.
Ayes: 4
Nays: 0
PUBLIC COMMENTS
No one from the public wished to be heard.
PUBLIC HEARING
A) RESOLUTION 2021-40 PUBLIC HEARING ON RIGHT-OF-WAY VACATION FOR
MENDOTA HEIGHTS ROAD – CONTINUATION
Public Works Director Ryan Ruzek explained that the Council was being asked to continue a public
hearing on a right-of-way vacation commenced by petition. This public hearing was opened at the City
Council meeting on May 18, 2021 and continued to tonight’s meeting. The right of way is located just to
the west of Condon Court. Mr. Ruzek explained that the developer of the property is wanting to move
three oaks trees out of the right of way to preserve them. Adequate right of way width would be retained
by the city for any future street and utility needs.
Councilor Duggan asked if there are protective measures that can be put in place to ensure the health of
the trees during transit. Mr. Ruzek commented that currently if something happens to the trees, it is the
responsibility of the City. He stated that if they are moved to private property, the health and maintenance
of the trees would be responsibility of the private property owner.
June 1, 2021 Mendota Heights City Council Page 4 of 13
Councilor Duggan moved to continue the public hearing.
Councilor Mazzitello seconded the motion.
Ayes: 4
Nays: 0
Sue Laughlin, 2535 Condon Court, reviewed the neighboring uses and stated that her property is located
at the end of the cul-de-sac. She stated that the only property owners on the cul-de-sac are her property
and Mr. Bjorklund. She stated that they received notice about the hearing and the interest in vacating
the right-of-way and were confused about the language, “property to be acquired”. She stated that it was
explained by City staff that the property would be purchased by Mr. Bjorklund and the City is working
with Mr. Bjorklund on a development he would like to create. She stated that it seems that the City is
willing to assist Mr. Bjorklund to move forward with his development with no regard to the
consequences that will happen to her property. She stated that she and her husband purchased the
property in 2001 and then rezoned the property and received a Conditional Use Permit to allow a
residential treatment facility on the property. She stated that they leased to a tenant that operates the
residential treatment facility and had no issues for 14 years. She stated that in 2015 Mr. Bjorklund
decided to put in an upscale development with three buildings: two twin homes and one single-family
home. She stated that most upscale buildings do not want a residential treatment facility adjacent and
believed that there have been actions since 2015 that are meant to push her business out and welcome
the development Mr. Bjorklund is proposing. She provided examples of projects that have been
completed in the area over the past five years that eventually pushed out the tenant they leased to for 14
years. She stated that last year there was a request to rezone her property which would not allow her to
sell the property to someone that wanted to operate a residential treatment facility. She stated that she
did have two offers on her property, which were lost because of the problem with the sewer line. She
stated that they ultimately agreed to pay the assessment and they hired a contractor to complete the
work, but the work could not be completed because dirt was dumped by the applicant in an area needed
by the contractor to secure access. She stated that there is a problem with the sewer line that they cannot
get resolved and it is costing them money and opportunities. She resented the fact that she is being held
up on her property, but the City is accommodating requests from Mr. Bjorklund. She requested that the
item be tabled tonight until this can all be solved. She stated that if this cannot be solved, she will push
forward to litigation.
Dick Bjorklund, applicant, identified the lots on the street that he owns on Condon Court. He stated that
he has worked to make his properties better. He stated the development will be 65 feet from the
neighboring property and there will be additional trees planted for screening. He stated that he is
planning to build a home on lot one for himself. He noted that he has been maintaining the right-of-way
since the 1980’s. The vacation of the right-of-way would allow the home to be moved five feet and
would allow space for additional trees. He commented on the expenses he has paid for the extension of
water and sewer to the site. He stated that he is just trying to improve his properties.
Mr. Laughlin commented that he and his wife paid $51,000 for the sewer assessment and also paid for
the water connection to their site. He stated that the level of the sewer was raised eight feet, which
means that the sewer can only be placed one foot underground which is a liability.
June 1, 2021 Mendota Heights City Council Page 5 of 13
Mayor Levine commented that the comments being made are outside of the subject of the public hearing
and she asked staff to follow up with the residents to resolve the issues. She stated that any comments
made will have to be directed to the right-of-way request.
Public Works Director Ryan Ruzek commented that staff would be happy to work with the residents.
He agreed that there is not a gravity sewer connection for the property at 2535 and staff would still like
to work with the property owners to rectify those issues. He displayed the plat for The Oaks of Mendota
Heights. He explained the intent of the right-of-way and stated that the City did not purchase any of it.
He stated that the request is to vacate a portion of the right-of-way easement along Mendota Heights
Road. He explained that this would allow the home to be constructed to be moved slightly further from
the adjacent lot but would not make the lot large enough to subdivide. He provided details of the road
improvement and utility projects that occurred and the related assessments. He stated that the request
would vacate the portion of right-of-way north of lot one. He stated that staff believes the existing right-
of-way exceeds the needs of the City but would recommend a blanket drainage and utility easement
remain.
There being no one else coming forward to speak, Councilor Paper moved to close the public hearing.
Councilor Mazzitello seconded the motion.
Ayes: 4
Nays: 0
Councilor Mazzitello asked if the installation of the watermain occurred after Saint Paul Regional Water
(SPRWS) took possession of the water system. Mr. Ruzek replied that the developer was required to
install the watermain because this was a new development. He stated that SPRWS required the
watermain to be located under the roadway rather than in the backyards. He stated that the water
connection was provided to the curb at 2535 Condon Court and that property owner chose to pay a
contractor to complete the connection to service their property rather than continue to use well water.
Councilor Mazzitello stated that as an engineer, he would volunteer to work with the Laughlins and staff
to come to a resolution that would make that property sellable, if acceptable by the Council.
Councilor Duggan asked if there is urgency in making a decision on the right-of-way as some questions
have been raised that he does not feel there are answers to.
Public Works Director Ryan Ruzek stated that it would not be critical to the development that is already
occurring on the site but noted that he would defer to the applicant.
Councilor Duggan commented that if deferring the right-of-way decision would not impact either
property owner, he would believe it appropriate for the issues to be resolved first.
Councilor Mazzitello commented that the two issues are not linked and therefore he believes the right-
of-way vacation could occur. He commented that it would still be important for the City to work with
the Laughlins to have the sewer connected and he believed it would be important for everyone to work
together to resolve that issue.
June 1, 2021 Mendota Heights City Council Page 6 of 13
Councilor Paper commented that Mr. Bjorklund stated that the right-of-way was his, the City took it and
is now looking to give it back.
Public Works Director Ryan Ruzek commented that both Condon Court and Mendota Heights Road
existed prior to the platting of The Oaks of Mendota Heights. He provided details on the platting
process and the work that was done related to identifying right-of-way for the property. He stated that
the right-of-way dedicated was excessive and is not needed on both roads.
Mr. Ruzek noted that the final platting occurred in 2015/2016.
Councilor Paper asked why an appropriate right-of-way size was not platted selected at the time. Mr.
Ruzek commented that the developer used the old meets and bounds description and attempted to match
those in the dedication. He stated that during platting the City focused more on the proposed lots and
not whether there was excessive right-of-way.
Councilor Paper asked if one of the conditions of a deferred assessment is that the assessment would
need to be paid upon sale of the property. Mr. Ruzek reviewed the three conditions that would have
required payment of the assessment. He stated that each lot was assessed $42,000 and then the
difference would be the accrued interest.
Councilor Paper asked what was provided to the property owners for the $42,000 assessment. Mr. Ruzek
commented that the City installed the sewer line under Mendota Heights Road. He stated that because a
gravity connection could not be provided, staff supported the deferral.
Mayor Levine commented that these are two very different problems, a right-of-way vacation request,
and an engineering problem. She asked if the connection to the sewer is solvable in a reasonable way.
Mr. Ruzek commented that there are a number of ways to handle the connection to the property at 2535
Condon Court. He stated that staff would be happy to discuss those options with the Laughlins and
Councilor Mazzitello.
Mayor Levine commented that issue is not related to this request and therefore believes that the
resolution should be considered separately and staff and Councilor Mazzitello should work with the
Laughlins to address the sewer connection issue.
Councilor Duggan stated that if there is assurance that moving forward on this issue would not impede
the others from working together on the sewer connection issue, he could move forward tonight.
Councilor Mazzitello moved to adopt RESOLUTION 2021-40 APPROVING A RIGHT-OF-WAY
VACATION COMMENCED BY PETITION.
Councilor Paper seconded the motion.
Ayes: 4
Nays: 0
June 1, 2021 Mendota Heights City Council Page 7 of 13
B) ORDINANCE NO. 565 AMENDING PARTS OF TITLE 12 – ZONING REGARDING
ACCESSORY STRUCTURES (PLANNING CASE NO. 2021-06)
Community Development Director Tim Benetti presented an ordinance which would amend City Code
Title 12 – Zoning, specifically Section 12-1D-3: Accessory Structures. The ordinance would amend and
revise certain design standards and allowances for various accessory structures in the city.
Councilor Duggan expressed a concern that removing “residential use” would open up the ability for a
non-resident to use space within a garage of a Mendota Heights resident.
Councilor Paper used the example of a resident from Mendota Heights allowing their brother in-law, who
lives in another community, to store a boat in their garage for the winter. He asked what the problem
would be as that does occur.
Councilor Duggan commented that he appreciates that point of view and noted that he was simply
comparing the difference between private and residential. He stated that he does not have a problem with
the language.
Mayor Levine stated that the language does say non-commercial use, which would address any concern
with renting space to others. She stated that the word residential was removed in order to resolve any
confusion that could occur related to using a garage for residential/living space.
Councilor Mazzitello asked how a story is defined. Mr. Benetti replied that he is unsure whether the Code
defines that but noted that staff could differentiate between 1.5 and two stories.
Mayor Levine commented that she would think the first story would be the ground level and the half story
would be where plywood is added above as a floor for additional storage.
Councilor Duggan referenced the proposed changes to the permitted sizes and asked who determined the
additional allowed size of 2,000 square feet and what it was based on. Mr. Benetti replied that staff
suggested that increase based on review of standards used by other communities. He stated that the
Planning Commission helped to determine the CUP size of 2,400 square feet.
Councilor Duggan asked for input from legal counsel, as he believed this could create a situation for
someone that has a large lot and asked if this ordinance would satisfy one person.
City Attorney Elliot Knetsch commented that there is more than one five-acre parcel in the community,
therefore this would not apply to just one lot. Mr. Benetti commented that there are 21 parcels that would
fall into that category.
Councilor Duggan stated that this came about because of the request from Mike Cashill where he believed
the variance criteria could not be met. Mr. Benetti commented that this began with a request to construct
an oversized garage with variances for height and size. He stated that the Planning Commission felt that
with an eight-acre parcel, the Commission made the suggestion to adjust the ordinance. He agreed that
this adjustment would help the case of Mr. Cashill, but it will also help others in the community.
June 1, 2021 Mendota Heights City Council Page 8 of 13
Councilor Duggan commented that it seems that treehouses were also mixed into these amendments. Mr.
Benetti commented that with COVID last year he received a number of calls from parents wanting to put
up a playhouse or treehouse, which is currently allowed at up to a small size. He stated that he proposed
to include a slightly larger structure, but the Commission decided to remove that language from the
ordinance and instead address that issue at a later date.
Councilor Duggan moved to open the public hearing.
Councilor Mazzitello seconded the motion.
Ayes: 4
Nays: 0
There being no one coming forward to speak, Councilor Duggan moved to close the public hearing.
Councilor Mazzitello seconded the motion.
Ayes: 4
Nays: 0
Councilor Mazzitello stated that the original ordinance was adopted in 2014 or 2015 and asked the
number of building permits or CUPs have come forward since that ordinance was adopted. Mr. Benetti
replied that there have not been many. He stated that most of the CUPs have been for larger attached
garages. He stated that he could not find a 1,500 or 1,800 square foot detached garage on a 2.5-acre lot.
Councilor Duggan commented that in 2015 he believed that the numbers adopted were slightly larger
than those previously allowed.
Councilor Mazzitello confirmed that the numbers were increased for attached garages.
Councilor Duggan asked if there is language related to the combined size of the attached and detached
garages on a property. Mr. Benetti stated that there is an allowance for permitted attached and detached
garages, along with CUP guidelines and provided additional details.
Councilor Duggan asked if there is language in the Code that states that the garage floor size cannot
exceed the square footage of a home. Mr. Benetti replied that the Code states that the combined area of
the garage cannot exceed the finished area of the principal structure. He stated that typically the garage
floor space is limited to the first floor of a home.
Councilor Mazzitello referenced the language related to habitable space and provided a suggested
language change. Mr. Benetti confirmed that he would agree with that.
Mayor Levine commented that accessory structures often include upper lofts used for habitable space.
She stated that she would prefer to include language specifying that the upper lofts cannot be used for
habitable space.
Mayor Levine commented that the Code is something that changes over time based on the use of the
land. She stated that the grid would provide more categories for the different sizes of lots rather than
grouping all lots over 2.5 acres together. She commented that someone with eight acres would have
different needs for their land and therefore needs more room for storage of equipment.
June 1, 2021 Mendota Heights City Council Page 9 of 13
She stated that this would be adding the last line to the chart, where it should be along with setbacks.
She asked for the different types of accessory structures that could be allowed on a residential property.
Mr. Benetti reviewed those allowed accessory structures.
Mayor Levine commented that she likes the amendment to the height of the accessory structures of 144
square feet or less as well.
Councilor Mazzitello commented that he was around when the original ordinance was adopted, and he
did not like it then because he did not see the need for an accessory structure that large. He stated that
while some communities have large pole barn type accessory structures that is not the character of
Mendota Heights. He stated that an accessory structure of 2,400 square feet or more would be twice the
size of his house. He stated that a normal lot in Mendota Heights is excluded from the ordinance, meaning
a 15,000 square foot lot cannot have a detached garage. He stated that properties are treated differently
in Mendota Heights. He stated that there was a lot about that ordinance that he did not like. He stated
that he thinks he could support the Code change if the City is committed to looking at the garage Code
when the overall ordinance review is completed to ensure it is fair to all. He appreciated the work the
Planning Commission put into this ordinance.
Councilor Paper commented that a five-acre property is unique and there is room to have a large, detached
garage, as is an eight-acre property. He stated that there would still be control to ensure these structures
are tastefully constructed. He stated that these lot should be treated differently because they are bigger,
and they are different. He stated that people have rights to their property and should be allowed to make
the most of it, therefore he supports this ordinance change.
Mayor Levine commented that she is also supportive and commended the Planning Commission for the
work it did. She agreed that the City should look at the review the Code, now that the Comprehensive
Plan has been accepted by the Metropolitan Council. She commented that this is a good ordinance, and
she likes the idea of looking at changing our zoning rather than issuing variances.
Councilor Duggan asked if the allowed height of 18 feet would conflict with other Code language. Mr.
Benetti commented that the Planning Commission made the determination that 18 feet would be allowed
for those accessory structures over 2,000 square feet on parcels over five acres in size.
Councilor Duggan referenced the 10-foot height limit for accessory structures of 144 square feet or less
and stated that perhaps someone would want 11 feet.
Community Development Director Tim Benetti commented that the height limit is the midpoint of 10 feet,
which would mean the actual height could be a few feet more.
Councilor Duggan commented that this would seem to be creating an ordinance to suit the changes in the
community and he is uncomfortable with that. He believed that this would open the floodgates for
requests.
June 1, 2021 Mendota Heights City Council Page 10 of 13
Mayor Levine commented that this would be to make the most common structure, the shed of 144 square
feet or less, a lower height as that has been an issue in the community. She stated that this would seem to
be right sizing sheds and accessory structures and ensure people are not living in accessory structures.
Councilor Paper moved to adopt ORDINANCE NO. 565 AMENDING PARTS OF TITLE 12 – ZONING
REGARDING ACCESSORY STRUCTURES, amending C.1.c.(6) to include sheds with an allowed
upper story or loft area.
Mayor Levine seconded the motion.
Ayes: 3
Nays: 1 (Duggan)
NEW AND UNFINISHED BUSINESS
A) RESOLUTION 2021-46 APPROVING A CONDITIONAL USE PERMIT FOR 806 BACHELOR
AVENUE; MIKE CASHILL – APPLICANT/OWNER (PLANNING CASE NO. 2021-02)
Community Development Director Tim Benetti explained that the Council was being asked to consider a
resolution approving a conditional use permit (CUP) to Mr. Mike Cashill, which would allow the
construction of a new oversized detached garage at 806 Bachelor Avenue.
Councilor Duggan asked and received confirmation that the setback would be 15 feet. He referenced the
third condition which states that staff will work with the applicant to select the final location and asked if
that should have been done already. Mr. Benetti stated that the area for the accessory structure is known,
but staff will work with the applicant to site the structure in attempt to avoid tree loss in that area.
Councilor Duggan noted concerns and that this originally came forward as a variance and instead came
through as an amended ordinance in order to go forward with a CUP. Mr. Benetti stated that the
amendment to the ordinance allows for a larger accessory structure for larger lots, which would mean a
variance would no longer be required.
Councilor Duggan commented that the rules begin for lots of 15,000 square feet and asked if the reverse
could be done to add another category for smaller lots. Mr. Tim Benetti stated that the Code currently
allows for any lot without a garage to have a 750 or 1,000 square foot garage. He stated that if the property
already has a garage, they would be unable to request an additional garage with that sized lot. He agreed
that there will be a review of the ordinance when staff begins the review process of the City Code.
Councilor Paper commented that he walked the site and has seen the low area where the structure will be,
noting that it will fit well into the treed area and will be a reasonable investment into the property.
Further discussion: Councilor Duggan commented that Mr. Cashill has made great contributions to the
community with The Reserve that he has built. He stated that he appreciates Mr. Cashill’s patience with
getting that done. He stated that he is still not comfortable with this process and will not support this
request.
Councilor Mazzitello moved to adopt RESOLUTION 2021-46 APPROVING A CONDITIONAL USE
PERMIT FOR PROPERTY LOCATED AT 806 BACHELOR AVENUE with the change to the setback
from 10 to 15 feet.
June 1, 2021 Mendota Heights City Council Page 11 of 13
Councilor Paper seconded the motion.
Ayes: 3
Nays: 1 (Duggan)
B) RESOLUTION 2021-47 APPROVING A VARIANCE FOR 662 IVY FALLS COURT; JOE
OPACK – APPLICANT/OWNER (PLANNING CASE NO. 2021-05)
Community Development Director Tim Benetti provided a brief background on this item. The Council
was being asked to consider a resolution approving a variance to allow a new half-circle shaped driveway
to the property located at 662 Ivy Falls Court. The applicant and property owner is Joe Opack.
Councilor Duggan provided a scenario in which multiple vehicles are parked in the driveway and how the
vehicles would get out without having to leave in the order they arrived. Mr. Benetti commented that the
intent is simply to provide a narrow access to the front door for the applicant’s elderly family members.
Councilor Paper asked if 12 feet is wide enough or whether that is too restrictive. Mr. Benetti stated that
the applicant provided the sketch. He stated that he would prefer to keep the openings at 12 feet but noted
that once the front of the property line is passed, the driveway could flare out.
Councilor Paper commented that this would be a great addition.
Mr. Benetti stated that he would be amenable to having a hard surface near the home where the vehicle
would park in order to provide stable ground for family members to get out of their vehicle.
Mayor Levine commented that this is a reasonable design and would be a lovely addition.
Joe Opack, the applicant, was present to address any questions the Council may have.
Councilor Duggan stated that this is a variance and therefore the request would need to meet those criteria.
Councilor Mazzitello stated that within the staff report there are findings related to the variance criteria
and reviewed how this request meets those criteria.
Councilor Duggan moved to adopt RESOLUTION 2021-47 APPROVING A VARIANCE FOR
PROPERTY LOCATED AT 662 IVY FALLS COURT.
Councilor Mazzitello seconded the motion.
Ayes: 4
Nays: 0
C) RESOLUTION 2021-48 ACCEPT BIDS, AWARD CONTRACT FOR THE IVY FALLS EAST
NEIGHBORHOOD IMPROVEMENTS AND AWARD A PROFESSIONAL SERVICES CONTRACT
Public Works Director Ryan Ruzek stated that the Council is asked to approve Resolution 2021-48
accepting bids and awarding a contract for the Ivy Falls East Neighborhood Improvement Project. The
Council is also asked to approve a professional services contract for construction management.
June 1, 2021 Mendota Heights City Council Page 12 of 13
Councilor Mazzitello commented that there is a landscaped bulb in a cul-de-sac and asked if that is
maintained by the City or association. Mr. Ruzek replied that is not City maintained.
Councilor Mazzitello asked if the plans and specifications were completed in-house or by a consultant.
Mr. Ruzek replied that the plans and specifications were completed by staff.
Councilor Mazzitello commended staff for their excellent work.
Councilor Paper noted that the low bidder is a new contractor for the City and asked if staff vetted the
contractor. Mr. Ruzek commented that staff did not call references but reviewed where the contractor has
completed projects and where their work is scheduled for this year. He stated that staff did not find any
reason the contract could not be awarded.
Councilor Paper stated that he is looking forward to seeing this project completed, as is the neighborhood.
Mayor Levine stated that she wants to see the project on time and on budget, as these projects are
disruptive to residents. She asked that staff check on the references as well.
Councilor Duggan moved to adopt RESOLUTION 2021-48 ACCEPTING BIDS AND AWARDING
CONTRACT FOR THE IVY FALLS EAST NEIGHBORHOOD IMPROVEMENTS.
Councilor Mazzitello seconded the motion.
Ayes: 4
Nays: 0
Public Works Director Ryan Ruzek noted that approval of the professional services is also needed.
Councilor Mazzitello moved to approve A PROFESSIONAL SERVICES CONTRACT TO TKDA FOR
THEIR NOT-TO-EXCEED QUOTE OF $130,000.
Councilor Duggan seconded the motion.
Ayes: 4
Nays: 0
COMMUNITY ANNOUNCEMENTS
City Administrator Mark McNeill announced the Scott Patrick Memorial 5K will take place this weekend.
He further advised of the Movie in the Park taking place this Friday evening.
COUNCIL COMMENTS
Councilor Duggan commented that it has been a great pleasure to watch his grandchildren play sports and
found the condition of the fields wonderful.
Councilor Paper stated that he is looking forward to the Scott Patrick Memorial 5K this weekend and
commended former Mayor Garlock for the work he puts into the event.
June 1, 2021 Mendota Heights City Council Page 13 of 13
Councilor Mazzitello stated that this past Monday was Memorial Day, which honors those that have fallen
in combat in defense of the nation. He reviewed some quotes that he finds value in on Memorial Day. He
asked that the community think of all veterans and not just those that have fallen in combat.
ADJOURN
Councilor Duggan moved to adjourn.
Councilor Mazzitello seconded the motion.
Ayes: 4
Nays: 0
Mayor Levine adjourned the meeting at 8:40 p.m.
____________________________________
Stephanie Levine
Mayor
ATTEST:
_______________________________
Lorri Smith
City Clerk
CITY OF MENDOTA HEIGHTS
DAKOTA COUNTY
STATE OF MINNESOTA
Minutes of the Joint City Council – Parks Recreation Commission
Strategic Planning Session
Held June 2, 2021
Pursuant to due call and notice thereof, a work session of the City Council and the Parks and
Recreation Commission, City of Mendota Heights, Minnesota was held at the Fire Station Training
Room, 2121 Dodd Road, Mendota Heights, Minnesota.
CALL TO ORDER
Mayor Levine called the meeting to order at 3:15 pm. Councilors Duggan, Paper, and Mazzitello
were also present. Councilor Miller was absent. Parks and Recreation Commission members
present included Goldade, Klepperich, Meyer, Banks, Cotter, Sherer and Smith.
City staff present included Mark McNeill, City Administrator; Ryan Ruzek, Public Works
Director; Cheryl Jacobson, Assistant City Administrator; and Meredith Lawrence, Recreation
Program Coordinator.
STRATEGIC PARKS PLANNING SESSION
Administrator McNeill introduced Megan Jacobson and Karie Terhark of the firm Huelife, who led
the participants in a discussion of strategic planning for the parks and recreation function of Mendota
Heights. They reviewed the results of a POLCO survey of community residents, and an on-line
stakeholders meeting which had been held on May 24th.
The facilitators conducted a visioning workshop, in which participants were asked to focus on what
would need to happen in the next 3-5 years for Mendota Heights to be financially sustainable and
engaging, while encompassing the needs and wants of Mendota Heights residents. The participants
identified blocks—reasons that the vision hasn’t yet been reached—as well as strategic directions and
focused implementation.
The session was continued to Tuesday, June 8th, at 3:15 PM.
ADJOURN
The meeting was adjourned at 9:11 pm.
___________________________
Stephanie Levine, Mayor
____________________________
Lorri Smith, City Clerk
CITY OF MENDOTA HEIGHTS
DAKOTA COUNTY
STATE OF MINNESOTA
Minutes of the Joint City Council – Parks Recreation Commission
Strategic Planning Session
Held June 8, 2021
Pursuant to due call and notice thereof, a work session of the City Council and the Parks and
Recreation Commission, City of Mendota Heights, Minnesota was held at the Fire Station Training
Room, 2121 Dodd Road, Mendota Heights, Minnesota.
CALL TO ORDER
Mayor Levine called the meeting to order at 3:15 pm. Councilors Duggan, Paper, and Mazzitello
were also present. Councilor Miller was absent. Parks and Recreation Commission members
present included Goldade, Klepperich, Meyer, Banks, Cotter, Smith, and Sherer.
City staff present included Mark McNeill, City Administrator; Ryan Ruzek, Public Works
Director; Cheryl Jacobson, Assistant City Administrator; Meredith Lawrence, Recreation Program
Coordinator; Finance Director Kristen Schabacker, and Public Works Superintendent John
Boland.
STRATEGIC PARKS PLANNING SESSION
Megan Jacobson and Karie Terhark of Huelife continued the parks strategic planning discussion
which had begun on June 2nd.
Assistant City Administrator Jacobson and Finance Director Schabacker reviewed budget and
financing options for the parks system and possible improvements.
The participants identified two year substantial actions which could deal with the “blocks” which
were preventing goals from being attained, and then identified specific, measurable
accomplishments which might be pursued during the first year (to begin January 1, 2022). That
included identifying the people who would be responsible for reporting the progress. Finally, the
participants established 90-day implementation steps and priorities.
ADJOURN
The meeting was adjourned at 8:43 pm.
___________________________
Stephanie Levine, Mayor
____________________________
Lorri Smith, City Clerk
CITY OF MENDOTA HEIGHTS
DAKOTA COUNTY
STATE OF MINNESOTA
Minutes of the June 9, 2021 City Council Work Session
Pursuant to due call and notice thereof, a work session of the City Council, City of
Mendota Heights, Minnesota was held at 1:30 p.m.
CALL TO ORDER
Mayor Levine called the meeting to order at 1:30 pm. Councilors Duggan, Mazzitello,
and Paper were also present. Councilor Miller was absent.
Staff Present: City Administrator Mark McNeill. Assistant City Administrator Cheryl
Jacobson joined the meeting at 2:15 PM; City Clerk Lorri Smith joined the meeting at
2:25 PM.
CITY ADMINISTRATOR SUCCESSION
City Administrator Mark McNeill said that the Council should make a decision on the
selection process for a successor to him, upon his retirement in September of this year. He
said that the Council could hire a search firm to do a full search, handle the advertisement
and selection internally, or consider internal candidates.
The Councilmembers present each felt comfortable with interviewing the current Assistant
City Administrator as the only candidate to be considered at this time. An interview was
tentatively set to take place, beginning at 4:45 PM on Tuesday, June 15th.
DOOR TO DOOR LICENSING CODE CHANGE
City Administrator Mark McNeill and City Clerk Lorri Smith discussed with the Council
members proposed changes to the City Code to allow for peddlers, solicitors, and transient
merchants in Mendota Heights. Changes include allowing peddlers to get a license
through the city to go door to door, allowing solicitors to register with the city to go door
to door, and to allow transient merchants to get a license to sell in our city on private
property. Hours proposed would be 9am to one half hour before sunset. Non-commercial
door to door soliciting would not need to register with the city.
All peddlers and solicitors who are required to obtain a license or to register with the city
would be issued a license or registration card from city hall, after approval.
This ordinance change will be scheduled to be heard at an upcoming City Council agenda.
POST COVID CITY MEETINGS and USE OF FACILITIES
Administrator McNeill and Assistant Administrator Jacobson reported that COVID-
restrictions relating to indoor public meetings have now mostly ended. For that reason,
the Council Chambers and large City Hall conference room could return to full capacity.
The Council agreed to allow for that effective immediately, and that the Mayor,
Councilors, and City Administrator would be seated at the front Council dais.
June 9, 2021 Council Work Session page 2 of 2
Administrator McNeill reviewed the City facility reservation policy for use by outside
groups. The Council felt that the Council Chambers should remain unavailable to groups
other than those which are listed in the room reservation policy. They also discussed the
Fire Training Room, and felt that the $100 fee which currently includes the cost of a fire
fighter standing by during the meeting should be revised, and have the hourly
compensation for the attending firefighter be added to the $100.
FY 2022 BUDGET
Administrator McNeill reviewed some of the major components of the upcoming FY 22
Budget process, including the fund balance, 5 year CIP, the Equipment Replacement fund,
Special Parks fund, and American Rescue Plan funding. The Council listened and
provided input on the budget.
CITY FACILITY NAMING POLICY
Administrator McNeill reviewed the results of research which he had done regarding the
naming of City facilities, to honor or memorialize people who had made major
contributions to the City. The consensus of the Council was to prepare a policy which
could be brought back to them for consideration and adoption.
LIQUOR LICENSING FEES
The Council discussed lowering liquor licensing fees and/or allowing payments to be
made for this next licensing period of July 1, 2021 – June 30, 2022. The Council
discussed the options available for restaurant owners to apply for relief available from
Federal COVID relief fund. The Council members did not wish to move forward with the
lowering of liquor licensing fees for this next licensing period.
ADJOURN
Mayor Levine adjourned the meeting at 3:05 pm.
___________________________
Stephanie Levine, Mayor
____________________________
Lorri Smith, City Clerk
Request for City Council Action
DATE: June 15, 2021
TO: Mayor and City Council, City Administrator, Assistant City Administrator
FROM: Meredith Lawrence, Recreation Program Coordinator
SUBJECT: April Par 3 Financial Report
INTRODUCTION
The City Council is asked to acknowledge the April Par 3 Financial Report.
BACKGROUND
Attached is the April Par 3 Financial Report. In the month of April the course had a total of 1,687
rounds of golf played. Including the month of April, the Par 3 had a total of $23,003 for monthly
revenue totals. The 2021 year-to-date revenue total including April is $66,256.
The course’s April expenditures totaled $23,496. The year-to-date expenditure total is $44,309.
As of now the course is showing a $21,947 operating surplus.
It is important to note that the course took in a large number of recreation program and league
registrations in March and April for Summer programming. This means that revenue has been
received but staffing costs have not been paid.
RECOMMENDATION
Staff recommends that the Mendota Heights City Council acknowledge the April Par 3 Financial
Report.
ACTION REQUIRED
If the Council concurs, it should, by motion acknowledge the April Par 3 Financial Report.
MONTHLY EXPENDITURE REPORT
APRIL 2021
MENDOTA HEIGHTS PAR 3
BUDGET TO ACTUAL REPORT
April 2021 (33.33% OF YEAR)
April
REVENUES April YTD YTD YTD
BUDGET 2021 2021 %2020
GREENS, LEAGUE & TOURN FEES $100,000 $17,782 $25,055 25.05%$3,757
RECREATION PROGRAMS $35,000 $3,966 $38,810 110.89%$21,390
CONCESSIONS $19,000 $1,223 $1,369 7.21%$0
SUNDRY REVENUE $0 $32 $1,022 0.00%$0
INTEREST $450 $0 $0 0.00%$0
CAPITAL CONTRIBUTIONS $0 $0 $0 0.00%$0
PAR 3 FUND REVENUE TOTAL $154,450 $23,003 $66,256 42.90%$25,147
EXPENDITURES April YTD YTD YTD
BUDGET 2021 2021 %2020
CLUBHOUSE SALARIES $34,300 $5,045 $5,045 14.71%$0
ADMINISTRATIVE SALARIES $24,676 $2,802 $6,950 28.16%$4,748
FICA/PERA $10,596 $1,118 $1,830 17.27%$746
MEDICAL INSURANCE $6,653 $554 $2,218 33.33%$2,218
U/E & W/C INSURANCE $2,750 $0 $1,100 40.00%$1,018
RENTALS $4,750 $100 $100 2.10%$0
UTILITIES $13,945 $736 $2,939 21.08%$2,676
PROFESSIONAL FEES - AUDIT $2,850 $0 $0 0.00%$0
PROF FEES - CONSULTING FEES $1,100 $0 $0 0.00%$0
PROF FEES - GROUNDS MGMT $4,500 $0 $0 0.00%$0
PROF FEES - GROUNDS WAGES $22,000 $2,117 $2,844 12.93%$343
PROF FEES - TREE MAINTENANCE $1,500 $0 $0 0.00%$0
ADVERTISING/NEWSLETTER $0 $0 $0 0.00%$0
LIABILITY/AUTO INSURANCE $4,800 $0 $3,997 83.28%$3,893
OPERATING COSTS/SUPPLIES $7,650 $2,889 $2,938 38.40%$542
FUEL $1,750 $105 $188 10.72%$63
REPAIRS & MAINTENANCE $39,350 $6,458 $10,456 26.57%$12,405
SUNDRY/DUES/MILEAGE/CLOTHING $4,500 $1,331 $3,407 75.70%$510
CONTINGENCY $0 $0 $0 0.00%$0
ONLINE REG & CREDIT CARD FEES $4,275 $240 $297 6.95%$935
PAR 3 EXPENDITURES TOTAL $191,945 $23,496 $44,309 23.08%$30,097
6/9/2021
Request for City Council Action
MEETING DATE: June 15, 2021
TO: Mayor, City Council, and City Administrator
FROM: Lorri Smith, City Clerk
SUBJECT: Renewal of current massage licenses
COMMENT:
INTRODUCTION
The Council is asked to approve the renewal of the current massage licenses.
BACKGROUND
The current massage licenses will be expiring on June 30, 2021. The applicants listed below have
submitted applications to renew their licenses. The applications are complete. All fees have been paid
to the City for the renewals.
Massage Business: Green Lotus Yoga and Healing Center, 750 Main Street, #100
Massage Therapist: Kay Reich
Cindy Messer
Julie Olson
The background investigations have been completed and they resulted in no negative findings.
If approved, the massage licenses would be effective July 1, 2021 through June 30, 2022.
RECOMMENDATION
Staff recommends the Council approve the renewal of the massage licenses to the above listed
applicants, effective July 1, 2021 through June 30, 2022.
Request for City Council Action
DATE: June 15, 2021
TO: Mayor, City Council, and City Administrator
FROM: Cheryl Jacobson, Assistant City Administrator
Kristen Schabacker, Finance Director
SUBJECT: Office Support Assistant Hire
INTRODUCTION
The Council is asked to approve the hiring of Resa Weigel for the position of Office Support
Assistant.
BACKGROUND
With the retirement of Pam Deeb, the City Council approved the hiring of an Office Support
Assistant. Staff has completed the recruitment process and is pleased to recommend the hiring of
Resa Weigel for the position. Resa has a degree in Business Administration from Metropolitan
State University and extensive experience in office and human resources administration.
A conditional offer has been extended, contingent upon the successful completion of a background
check, pre-employment drug screen and approval of the City Council. If approved, Resa’s
expected start date is June 16
BUDGET IMPACT
This is a budgeted position.
ACTION RECOMMENDED
Staff recommends the City Council approve the hiring of Resa Weigel as an Office Support
Assistant with an hourly salary of $25.65, which is step four (the midpoint) of pay grade four of
the City’s Compensation Plan.
ACTION REQUIRED
If the City Council concurs, it should, by motion, approve the hiring of Resa Weigel to the
position of Office Support Assistant.
REQUEST FOR COUNCIL ACTION
DATE: June 15, 2021
TO: Mayor, City Council, and City Administrator
FROM: Ryan Ruzek, P.E., Public Works Director
SUBJECT: Resolution 2021-52 Accept Bids and Award Contract for the 2021 Sanitary Sewer
Cleaning and Televising Project
COMMENT:
INTRODUCTION
The Council is asked to accept bids and award a contract for the 2021 Sanitary Sewer Cleaning
and Televising Project.
BACKGROUND
The City’s sanitary sewer system is aging. Many of our pipes are 60 years old and will soon be in
need of repair. Cleaning our sewer system on a regular cycle will help extend the life of the
pipes. Televising of the system will show where immediate repairs are needed. Lining pipes in
need of repair with cured-in-place-pipe will extend the life of our system.
DISCUSSION
The City of Mendota Heights maintains 74 miles of sanitary sewer pipe. Currently one full-time
and one seasonal employee clean approximately 10 miles of pipe per year. The proposed project
is for the cleaning of approximately 4.4 miles of the City’s sanitary sewer system and televising
approximately 9.6 miles of the City’s sanitary sewer system. At the current rate, the City is
cleaning the system every 6 years. The southwest quadrant of Mendota Heights is proposed to
cleaned and inspected with this project.
BUDGET IMPACT
Two proposals (see attached resolution) were received and opened on Wednesday, June 2, 2021
for the Sanitary Sewer Televising and Cleaning Project. Hydro-Klean, LLC submitted the lower
bid of $55,201.44. Their bid was slightly higher than the Engineer’s Estimate of $53,035.39.
The Sanitary Sewer Fund has an annual budget amount of $62,000 allocated to the cleaning and
televising of the system.
RECOMMENDATION
Staff recommends that the Council accept the bids and award the contract to Hydro-Klean, LLC
for their bid in the amount of $55,201.44.
ACTION REQUIRED
If City Council wishes to implement the staff recommendation, pass a motion adopting A
RESOLUTION ACCEPTING BIDS AND AWARDING CONTRACT FOR THE 2021
SANITARY SEWER CLEANING AND TELEVISING. This action requires a simple
majority vote.
CITY OF MENDOTA HEIGHTS
DAKOTA COUNTY, MINNESOTA
RESOLUTION 2021-52
A RESOLUTION ACCEPTING BIDS AND AWARDING CONTRACT FOR
THE 2021 SANITARY SEWER CLEANING AND TELEVISING PROJECT
WHEREAS, pursuant to an advertisement for bids for the proposed cleaning and
televising of sanitary sewers to serve the area referred to as 2021 Sanitary Sewer
Televising and Cleaning Project (City Project No. 202104), bids were received, opened
and tabulated according to law and the following bids were received complying with said
advertisement:
NAME OF BIDDER AMOUNT OF BID
Hydro-Klean, LLC $55,201.44
National Power Rodding Corp. $210,400.90
and
WHEREAS, the Public Works Director recommended that the low bid submitted
by Hydro-Klean, LLC of Rogers, Minnesota, be accepted.
NOW THEREFORE BE IT RESOLVED, by the Mendota Heights City Council
as follows:
1. That the bids for the above project are hereby received and accepted.
2. That the bid of Hydro-Klean, LLC of Rogers, Minnesota, submitted for the
cleaning and televising of the above described project be and the same is hereby
accepted.
3. That the contract be awarded to Hydro-Klean, LLC of Rogers, Minnesota, and that
the Mayor and Clerk are hereby authorized and directed to execute and deliver any
and all contracts and documents necessary to consummate the awarding of said
bids.
Adopted by the City Council of the City of Mendota Heights this fifteenth day of June,
2021.
CITY COUNCIL
CITY OF MENDOTA HEIGHTS
ATTEST
Stephanie Levine, Mayor
_________________________
Lorri Smith, City Clerk
CITY OF MENDOTA HEIGHTSPROJECT:2021 Sanitary Sewer Cleaning and TelevisingPROJECT #:MH202104 DATE: 6/2/2021I certify that I have personally opened and read all bids, verified this abstract and find it correct.By:__________________________________________________________________ITEM NO.ITEM DESCRIPTIONUNITENGINEER'S ESTIMATED QUANTITYENGINEER'S ESTIMATED UNIT PRICEENGINEER'S ESTIMATED AMOUNT BID UNIT PRICE BID AMOUNT BID UNIT PRICE BID AMOUNTSCHEDULE 'A' - CLEANING AND TELEVISING1 Clean & Televise 8" Sewer in R.O.W.*L.F. 651 $1.25 $813.75 $1.30 $846.30 $3.85 $2,506.352 Clean & Televise 9" Sewer in R.O.W.*L.F. 8,446 $1.25 $10,557.25 $1.30 $10,979.80 $3.85 $32,517.103 Clean & Televise 10" Sewer in R.O.W.*L.F. 5,272 $1.25 $6,589.38 $1.30 $6,853.60 $3.95 $20,824.404 Clean & Televise 12" Sewer in R.O.W.*L.F. 3,493 $1.50 $5,238.98 $1.30 $4,540.90 $4.15 $14,495.955 Clean & Televise 18" Sewer in R.O.W.*L.F. 480 $2.00 $960.00 $1.30 $624.00 $5.50 $2,640.006 Clean & Televise 20" Sewer in R.O.W.*L.F. 80 $2.50 $200.00 $1.30 $104.00 $20.00 $1,600.007 Clean & Televise 8" Sewer in Easements*L.F. 2,878 $1.75 $5,036.50 $2.00 $5,756.00 $5.95 $17,124.108 Clean & Televise 9" Sewer in Easements*L.F. 876 $1.75 $1,533.79 $2.00 $1,752.00 $7.65 $6,701.409 Clean & Televise 12" Sewer in Easements*L.F. 956 $2.00 $1,911.80 $2.00 $1,912.00 $10.00 $9,560.0010 Televise 8" Sewer in R.O.W.**L.F. 13,591 $0.65 $8,834.15 $0.59 $8,018.69 $3.00 $40,773.0011 Televise 9" Sewer in R.O.W.**L.F. 1,336 $0.65 $868.40 $0.59 $788.24 $3.10 $4,141.6012 Televise 10" Sewer in R.O.W.**L.F. 2,789 $0.65 $1,812.85 $0.59 $1,645.51 $3.25 $9,064.2513 Televise 12" Sewer in R.O.W.**L.F. 1,135 $0.65 $737.75 $0.59 $669.65 $3.25 $3,688.7514 Televise 15" Sewer in R.O.W.**L.F. 985 $0.65 $640.25 $0.59 $581.15 $3.40 $3,349.0015 Televise 8" Sewer in Easements**L.F. 6,109 $0.85 $5,192.65 $1.20 $7,330.80 $5.00 $30,545.0016 Televise 10" Sewer in Easements**L.F. 1,774 $0.85 $1,507.90 $1.20 $2,128.80 $5.00 $8,870.0017 Vacuum Lift StationsHR 2 $300.00 $600.00 $335.00 $670.00 $1,000.00 $2,000.00SUBTOTAL$53,035.39 $55,201.44 $210,400.90*Use of city hydrants subject to approval by SPRWS.**Televising to include processing video, report, etc.SUMMARYSCHEDULE 'A' - CLEANING AND TELEVISING$53,035.39 $55,201.44 $210,400.90BID ABSTRACTHydro KleanNational Power Rodding Corp.Page 1 of 1
Request for City Council Action
DATE: June 15, 2021
TO: Mayor and City Council, City Administrator, and Assistant City
Administrator
FROM: Meredith Lawrence, Recreation Program Coordinator
SUBJECT: Resolution 2021-51 Accepting Donations
COMMENT:
INTRODUCTION
The City Council is asked to formally accept donations which were received for the 2021 Officer
Scott Patrick Memorial 5K and Cliff Timm Memorial Fishing Derby
BACKGROUND
By state law, all donations to the City must be accepted by the City Council by means of a
resolution.
On June 5, the annual Scott Patrick Memorial 5K Race was held. A total of $23,332 was donated
for the race for prizes that included cash, services and merchandise. There were 372 participants
in the 5K this year, which raised over $16,000 for Special Olympics of Minnesota.
On August 12th, the annual Cliff Timm Memorial Fishing Derby will be held. Donors have
contributed $1,050 in cash for the event.
The City is grateful for the generosity of these donations. These community events would not be
possible without the support of these donations. A special thank you to the 5K Race Director Neil
Garlock and the Public Works and Recreation staff for all of their hard work to make these events
possible.
RECOMMENDATION
Staff recommends that the Mendota Heights City Council approve Resolution 2021-51.
ACTION REQUIRED
If the Council concurs, it should, by motion adopt RESOLUTION 2021-51 FORMALLY
ACKNOWLEDGING THE RECEIPT OF DONATIONS TO THE OFFICER SCOTT
PATRICK MEMORIAL 5K AND CLIFF TIMM MEMORIAL FISHING DERBY.
CITY OF MENDOTA HEIGHTS
DAKOTA COUNTY, MINNESOTA
RESOLUTION 2021-51
RESOLUTION FORMALLY ACKNOWLEDGING THE RECEIPT OF DONATIONS
TO THE OFFICER SCOTT PATRICK MEMORIAL 5K AND CLIFF TIMM
MEMORIAL FISHING DERBY
WHEREAS, the City of Mendota Heights desires to follow Minnesota Statute 465.03
“Gifts to Municipalities”; and
WHEREAS, the Minnesota State Statute requires a resolution to accept gifts to
municipalities; and
WHEREAS, the City has previously acknowledged gifts with a resolution; and
WHEREAS, the City Council of the City of Mendota Heights have duly considered this
matter and wish to acknowledge the civic mindedness of citizens and officially recognize their
donations.
NOW THEREFORE BE IT HEREBY RESOLVED that the City Council of the City
of Mendota Heights is accepting donations from the following people and organizations in
support of the Scott Patrick Memorial 5K Race and Cliff Timm Memorial Fishing Derby:
2021 5K Donations
DONOR DONATION VALUE
Neil Garlock 58 Inch Vizio TV 400
John, Bill & Joe 58 Inch Vizio TV 400
Mauer Chevrolet 2 Oil Changes 80
Artitude - Framing $150 Gift Card 150
Romero Auto Oil Change 25
Mike Butcher Shop $30 Gift Card 30
Pool & Yacht Club 2- $50 Gift Cards 100
GoodFellows $1000 Cash - For T-shirts 1000
DeGidio's 4 - $25 Gift Cards 100
Soapy Joe's Car Wash Car Detail 125
Soapy Joe's Car Wash 3 Ultimate Washes 55
Lucky's - Mendota 8 - $25 Gift Cards 200
Bogey's 6 - $25 Gift Cards 150
Southview CC Social Membership 250
Holiday - Lilydale 2 - $25 Gift Cards 50
Sunfish Cellars - Lilydale 3 - $50 Gift Cards 150
Yankee Tavern - Eagan 2 - $25 Gift Cards 50
BP - Mendota Heights 2 Oil Changes 80
Lost Spur - Eagan 9 Holes Of Golf for 2 With Carts 60
Pizza Shop - WSP 3 - $25 Gift Cards 75
Resolution 2021- 51
Page 2 of 3
Bob Brackey 58 Inch JVC TV 400
Steve Morganson 58 Inch JVC TV 400
Ed (Peltier) 4 - $25 Assorted Gift Cards 100
Inver Grove Ford Oil Change 40
Chet's Liquor Case Of Wine 135
Keith Ostrosky 2 - $25 Teresa's Gift Cards 50
Paradise Car Wash - Eagan Car Detail 300
Paradise Car Wash - Eagan 2 - 5 Packs Of Admiral Car Washes 240
Gateway Bank $1000 Cash - For Race Operations 1000
Speedway - MHRD $25 Gas Card 25
Buffalo Wild Wings Wing Party And Sauces 65
Boca Chica $30 Gift Card 30
Downtower 2 - $25 Gift Cards 50
Tappers 10 - $25 Gift Cards 250
Kaposia Tree Service $150 Gift Certificate 150
Great Moon Buffet 2 - $25 Gift Cards 50
Mendakota CC Golf for 4 With Carts 500
Zak's Auto Service 2 - $50 Gift Cards 100
Holiday - Smith Ave 2 - $25 Gift Cards 50
Teresa's 4 - $25 Gift Cards 100
Tom Depauw 8 - Assorted Gift Cards 400
Trail Stop Tavern 2 - $50 Gift Cards 100
Pace's Tire & Service Center 4 - Oil Changes 160
Mister Car Wash 4 - Platinum Car Washes 72
Anytime Fitness 11 - 2 Month Membership with 3 training sessions 2750
Shepard Road Airport Parking 1 Free Week Of Parking 110
Morelli's $30 Gift Card 30
Grand 7 Saloon 2 - $50 Gift Cards 100
MH Par 3 10 Rounds Of Golf 140
The Clover 3 - $30 Gift Cards 90
Bob Brackey $2500 Cash - To Special Olympics 2500
Paty McFarlane $100 Cash 100
AMVETS $5000 Cash - For Race Operations 5000
Zerorez Gift Basket 200
Gordie Dahlberg $50 Cash 50
Meisinger Construction $200 Cash 200
Ed Iago 3 - Joe Mauer Signed Baseballs 375
James Webster $100 Cash 100
Paul Kronchnabel $50 Cash 50
Don & Brian Woessner $400 Cash - For Post Race Snacks 400
CoBeck Construction 2 - $100 Total Wine Gift Cards 200
St Paul Saints 4 - Outfield Reserve Tickets 60
Resolution 2021- 51
Page 3 of 3
Paty McFarlane $50 Bogey's Gift Card 50
Sibley Area Youth Hockey $500 Cash 500
Gary Cunningham 55 Inch TLC TV 320
Steve Lemay Hot Air Balloon For 2 950
Julie Fronk 2 - $25 BP Gift Cards 50
Landmark Jewelers White Pearl Necklace 300
Ed Hayes 32 Pair of Juzo Socks 320
Mendakota Chiropractic Gift Basket 40
Thursday Bogeys Girls $50 DeGidio's Gift Card 50
Total
$23,332
2021 Cliff Timm Memorial Fishing Derby Donations
DONOR DONATION VALUE
Charitable Gift Fund of Clifford Timm $1,000 cash $1,000
Ira Kipp $50 cash $50
Total $1,050
Adopted by the City Council of the City of Mendota Heights this 15th day of June 2021.
CITY COUNCIL
CITY OF MENDOTA HEIGHTS
Stephanie Levine, Mayor
ATTEST:
Lorri Smith, City Clerk
Date: June 15, 2021
To: Mayor and City Council
From: Mark McNeill, City Administrator
Subject: Modification to City Facility Rental Policy
Comment:
Introduction:
The City Council is asked to modify the policy for the rental of City facilities, relating to the Fire Station
Training Room.
Background:
In June, 2020, the Council adopted policies relating to the rental of City facilities for use by non-City
groups. It added guidelines, including the establishment of rental fees to offset costs. The covered
meeting spaces are in City Hall and the Fire Station.
At a work session held on June 9th, staff reviewed those policies with the City Council. One revision that
was discussed by the Council was to add the compensation cost of the firefighter (who is required to be
on-site whenever the room is being used by an outside group) to the total rental cost of the Fire Training
Room.
Budget Impact:
Fire wages for the individuals who would normally be present at the station during a rental range from
$14 to $21 per hour, plus .145% for Medicare (the only wage-related fringe benefit). So that there is
consistency in the billing, we propose to make a singular billing rate of $20 per hour. Therefore,
assuming a typical 2 hour meeting (with two hours being proposed as a minimum amount of time) would
at a minimum add $40 to the existing $100 room rental cost. Billing would be made after the fact, and
would be in 15 minute increments.
Recommendation:
If the Council wants to enact the change, the existing policy should be modified
Action Eequired:
If the Council concurs, it should, by motion, amend the “Community Use of City Hall and Fire Station
Facilities Requirement”, adding the per hour cost of the attendant firefighter to the overall rental cost.
Mark McNeill
City Administrator
COMMUNITY USE OF CITY HALL and FIRE STATION FACILITIES
REQUIREMENTS
Mendota Heights City building facilities are intended to be used primarily for city staff and city
government functions. The privilege of their use will be extended to Mendota Heights
organizations and others consistent with these policy guidelines and subject to availability.
City Hall and the Fire Station are tobacco-free and alcohol-free buildings, and the use of
tobacco, electronic tobacco substitutes, or alcohol is not allowed in any area of either structure.
The following facilities are available as formal meeting space:
A. City Hall
a. Council Chambers – theater style seating for approximately 60. Public access
WIFI, laptop connection, ceiling mounted projector and projection screen are
available.
b. Large Conference Room - seating for 12 around a large conference table.
c. Small Conference Room - seating for up to 6.
B. Fire Station
a. Training Room – classroom style seating for approximately 50. Public access
WIFI available.
b. Fire Station Conference Room – seating for up to 8.
The number of participants that are able to use each facility shall be limited by any guidelines
from the State of Minnesota, City of Mendota Heights, or applicable health organizations,
which are in place at the time of use.
The following policies will guide community use of these facilities:
1. SCHEDULING OF SPACE will be on a first-come, first served basis to non-profit organizations
and resident groups that are based in Mendota Heights. Rental by others shall be on an “as
available” basis.
• City Hall facilities are available for rental on Monday, Wednesday, and Thursday
evenings between 4:30 p.m. and 10:00 p.m. Weekend rentals are not permitted.
• Fire Station facilities are on an “as available” basis.
• Scheduling requests will be taken at City Hall. Requests will be reviewed and
approved by the City Administrator or his/her designee. The City reserves the right
to reschedule or cancel a reservation for any reason.
• Reservations should be made at least 30 days in advance, but may not be made
more than 90 days in advance.
2. USE BY FOR-PROFIT COMMERCIAL VENTURES or private use (i.e., family or social
gatherings) are not permitted.
3. FEES FOR USE OF CITY BUILDING SPACE are as follows and due at time of reservation:
a. Damage Deposit: A security/damage deposit must be submitted by all user groups.
A deposit of $100 will be required on January 1st of each year for regular users of the
facility; for one-time or occasional use, deposits of $100 will be required at the time
the reservation form is filed. Payments for damage deposits and room rentals shall
be made separately.
Charges will be made against the deposit for damages done to furnishings or for
costs incurred by the city for cleanup after a scheduled activity. The unused portion
of the deposit will be returned to regular users within five days after their last use of
the facilities in a year and to occasional or single time users within five days after the
use. Users of the facilities and/or equipment will fully reimburse the city upon
demand for the full cost of replacement or repair caused by damages to or
destruction of the building, furniture, fixtures, equipment or any other property.
There shall be one reservation per room each evening, so as to allow for
adequate sanitizing between uses.
b. Rental Rates:
i. Fire Station: Use of either or both of the training room or conference room
at the fire station shall be $100. A firefighter will be on-site in the Fire
Station building during the time that either of the rooms are in use by non-
City of Mendota Heights groups or organizations. If fire personnel are not
available a minimum of 72 hours in advance, the meeting is subject to
cancellation. A
An on-call firefighter shall be in the station throughout the reservation timen
additional $20 per-hour compensation for that firefighter’s time shall be
added to the rental fee, with there being. a two hour minimum. Billing
shall be in 15 minute increments.If fire personnel are not available a
minimum of 72 hours in advance, the meeting is subject to cancellation.
i.ii. City Hall: $50 for small or large conference rooms per event; $100 for City
Council Chambers per event. The City Hall lobby is available at no extra
charge, if reserved in conjunction with one of the other listed rooms.
ii.iii. Reservations and use by tax-funded organizations such as Independent
School District 197, the Dakota County Extension Service, MNDOT; or by
organizations which otherwise would charge the City for their services (i.e.,
classroom teaching benefitting Mendota Heights residents which would
otherwise charge the City a fee) shall be exempt from rental charges
4. CANCELLATIONS AND REFUNDS. For cancellations made more than two (2) weeks in
advance of the reservation date, a full refund of fees paid will be made. Cancellation
notices received with less than two weeks’ notice will not receive a refund.
5. PRIOR TO GROUP USE. A representative of the organization must complete and file a
reservation form. At least 24 hours prior to a City Hall event, a Mendota Heights resident
must stop by City Hall to sign for the space requested, pick up keys, and receive instructions
on how to use the building. Fire staffing will open and close the building.
6. CONDITION OF FACILITIES. The individual who signs and files the registration form will be
responsible for ensuring that the keys are returned and that the building is left in
appropriate condition, including but not limited to the following: furnishings and equipment
have been returned to their designated or original locations, paper and other waste has
been picked up and deposited in the designated containers, all doors have been locked and
lights have been turned off. For Fire Hall reservations, fire personnel may undertake some
of these activities, such as locking doors and turning off lights, but the applicable
organization is expected to leave the building in appropriate condition, as described in this
paragraph.
No banners, posters, signs or decorations of any kind may be taped or placed on the walls.
No confetti, glitter or candles with open flame are allowed.
7. FOOD AND BEVERAGES. Non-alcoholic beverages and light snacks requiring no preparation
on site may be served in the large conference room, if prior approval is granted on the
registration form. Users are responsible for bringing their own expendable supplies, coffee
makers, dishes, etc., and for seeing that clean-up is completed. Note: the City Hall
employee break room, and Fire Station lounge area are not available for use.
8. AUDIO-VISUAL EQUIPMENT, including overhead projector, screen, monitors or other
similar equipment are available for use. Users may access public WIFI for internet
connectivity and connect user laptop via HDMI or VGA connections to projection
equipment. User groups are prohibited from accessing the City’s network. The City will not
supply computer/laptop equipment.
If equipment is damaged the cost of repair or replacement of the damaged equipment will
be deducted from their facilities use damage deposit ($100.00) and any remaining balance
will be refunded to the applicant.
9. STAFF TIME. If it is determined by the city that city staff should be on the City Hall premises
during a scheduled use of the facilities, a charge equal to one and one-half of the
employee’s hourly rate plus overhead will be charged to the user group. Staffing will be at
the sole discretion of the city. Fire station usage shall be with a fire fighter on site at time of
usage, as described in Section 3.b (i) above.
10. VARIANCES from this policy may be granted at the discretion of the City Council or City
Administrator, as warranted. Requests for variances must be submitted in writing to the
City Administrator a minimum of four (4) weeks prior to the scheduled date of the event.
11. USER ACKNOWLDGEMENTS—The City of Mendota Heights is not responsible for lost or
stolen articles. The City of Mendota Heights is additionally not responsible for any injuries,
death, or damage to individual personal property during renting of City facilities, unless the
City intentionally creates such damage or is grossly negligent regarding the condition of its
facilities. Renters agree to abide by all applicable ordinances, laws and requirements.
Violations of policy may lead to expulsion, and the denial of future rental rights.
Adopted: October 19, 1993
Amended: December 17, 2002
June 16, 2020
6/8/2021 Mendota Heights Building Activity Report Mike Andrejka, Building Official
May 1, 2021 thru May 31, 2021 January 1, 2021 thru May 31, 2021 January 1, 2020 thru May 31, 2020 January 1, 2019 thru May 31, 2019
Building Permit No.Valuation Fee Collected Building Permit No.Valuation Fee Collected Building Permit No.Valuation Fee Collected Building Permit No.Valuation Fee Collected
SFD 1 711,200.00$ $7,452.64 SFD 4 2,825,750.00$ $29,653.81 SFD 2 795,000.00$ $9,377.78 SFD 2 1,029,742.00$ 11,489.78$
Apartment 0 -$ $0.00 Apartment 0 -$ $0.00 Apartment 0 -$ $0.00 Apartment 1 9,135,000.00$ 63,519.64$
Townhouse 0 -$ $0.00 Townhouse 2 1,000,000.00$ $8,641.88 Townhouse 0 -$ $0.00 Townhouse 0 -$ -$
Condo 0 -$ $0.00 Condo 0 -$ $0.00 Condo 0 -$ $0.00 Condo 0 -$ -$
Misc 98 1,579,051.58$ 20,054.16$ Misc 323 4,742,021.84$ 64,857.97$ Misc 205 2,831,380.28$ 38,176.19$ Misc 272 3,076,801.77$ 45,407.94$
Commercial 2 3,723,160.00$ $30,540.68 Commercial 8 8,779,041.35$ $73,327.15 Commercial 6 407,715.00$ $4,380.50 Commercial 12 10,697,914.00$ 38,262.89$
Sub Total 101 6,013,411.58$ 58,047.48$ Sub Total 337 17,346,813.19$ 176,480.81$ Sub Total 213 4,034,095.28$ 51,934.47$ Sub Total 287 23,939,457.77$ 158,680.25$
Trade Permit No.Valuation Fee Collected Trade Permit No.Valuation Fee Collected Trade Permit No.Valuation Fee Collected Trade Permit No.Valuation Fee Collected
Plumbing 22 $1,770.00 Plumbing 109 $10,102.00 Plumbing 92 $8,123.70 Plumbing 112 10,981.74$
Water 0 $0.00 Water 0 $0.00 Water 0 $0.00 Water 0 -$
Sewer 3 $225.00 Sewer 14 $1,050.00 Sewer 8 $600.00 Sewer 1 75.00$
Mechanical 52 $4,397.29 Mechanical 168 397.00$ $15,681.05 Mechanical 105 $9,191.57 Mechanical 127 15,324.04$
Sub Total 77 6,392.29$ Sub Total 291 26,833.05$ Sub Total 205 $17,915.27 Sub Total 240 26,380.78$
License No.Valuation Fee Collected Licenses No.Valuation Fee Collected Licenses No.Valuation Fee Collected Licenses No.Valuation Fee Collected
Contractor 0 $0.00 Contractor 0 $0.00 Contractor 0 $0.00 Contractor 232 11,600.00$
Total 178 6,013,411.58$ 64,439.77$ Total 628 17,346,813.19$ 203,313.86$ Total 418 4,034,095.28$ 69,849.74$ Total 759 23,939,457.77$ 196,661.03$
NOTE: All fee amounts exclude SAC, WAC and State Surcharge. Amounts shown will reflect only permit, plan review fee and valuation totals
DATE: June 15, 2021
TO: Mayor, City Council and City Administrator
FROM: Kristen Schabacker, Finance Director
SUBJECT: 2020 Audit Presentation
INTRODUCTION
At its June 15th meeting, the City Council will hear the audit report by the City’s auditor,
BerganKDV.
BACKGROUND
BerganKDV has completed the audit for 2020. The reports for 2020 are the Annual Report &
Basic Financial Statements and the Communications Letter. These reports are included in your
packet. Matt Mayer from KDV will be presenting the Annual Audit Report for 2020.
BUDGET IMPACT
The audit cost the City $36,700. Because the City also received CARES funding in 2020, a single
audit was also performed. The billing for that has not been received, but is expected to be in the
$3000 to $5000 range.
RECOMMENDATION
Accept the review and ask any questions you may have.
DATE: June 15, 2021
TO: Mayor, City Council and City Administrator
FROM: Kristen Schabacker, Finance Director
SUBJECT: 2020 Audit Presentation
INTRODUCTION
At its June 15th meeting, the City Council will hear the audit report by the City’s auditor,
BerganKDV.
BACKGROUND
BerganKDV has completed the audit for 2020. The reports for 2020 are the Annual Report &
Basic Financial Statements and the Communications Letter. These reports are included in your
packet. Matt Mayer from KDV will be presenting the Annual Audit Report for 2020.
BUDGET IMPACT
The audit cost the City $36,700. Because the City also received CARES funding in 2020, a single
audit was also performed. The billing for that has not been received, but is expected to be in the
$3000 to $5000 range.
RECOMMENDATION
Accept the review and ask any questions you may have.
City of Mendota Heights
Annual Report and Basic
Financial Statements
December 31, 2020
City of Mendota Heights
Table of Contents
Elected Officials and Administration 1
Independent Auditor's Report 2
Management's Discussion and Analysis 5
Basic Financial Statements
Government-Wide Financial Statements
Statement of Net Position 16
Statement of Activities 17
Fund Financial Statements
Balance Sheet – Governmental Funds 18
Reconciliation of the Balance Sheet to the Statement of Net Position –
Governmental Funds 21
Statement of Revenues, Expenditures, and Changes in Fund Balances –
Governmental Funds 22
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund
Balances to the Statement of Activities – Governmental Funds 24
Statement of Revenues, Expenditures, and Changes in Fund Balance –
Budget and Actual – General Fund 25
Statement of Net Position – Proprietary Funds 26
Statement of Revenues, Expenses, and Changes in Fund Net Position –
Proprietary Funds 27
Statement of Cash Flows – Proprietary Funds 28
Notes to Financial Statements 29
Required Supplementary Information
Schedule of Changes in Total OPEB Liability and Related Ratios 62
Schedule of City's Proportionate Share of Net Pension Liability General
Employees Retirement Fund 63
Schedule of City's Proportionate Share of Net Pension Liability Public
Employees Police and Fire Retirement Fund 63
Schedule of City Contributions General Employees Retirement Fund 64
Schedule of City Contributions Public Employees Police and Fire
Retirement Fund 64
Notes to Required Supplementary Information 65
Supplementary Information
Combining Balance Sheet – Nonmajor Governmental Funds 72
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances –
Nonmajor Governmental Funds 76
Combining Statement of Net Position – Internal Service Funds 80
Combining Statement of Revenues, Expenses, and Changes in Net Position –
Internal Service Funds 81
City of Mendota Heights
Table of Contents
Supplementary Information (Continued)
Combining Statement of Cash Flows – Internal Service Funds 82
Detailed Schedule of Revenues, Expenditures, and Changes in Fund Balance –
Budget and Actual – General Fund 83
Schedule of Expenditures of Federal Awards 86
Notes to Schedule of Expenditures of Federal Awards 87
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 89
Report on Compliance for each Major Federal Program and on Internal Control
Over Compliance Required by the Uniform Guidance 91
Schedule of Findings and Questioned Costs 93
Minnesota Legal Compliance 97
1
City of Mendota Heights
Elected Officials and Administration
December 31, 2020
Elected Officials Position Term Expires
Neil Garlock Mayor December 31, 2020
Joel Paper Council Member December 31, 2024
Jay Miller Council Member December 31, 2024
Ultan Duggan Council Member December 31, 2022
John Mazzitello Council Member December 31, 2022
Administration
Mark McNeill City Administrator Appointed
Lorri Smith City Clerk Appointed
Kristen Schabacker Finance Director Appointed
2
Independent Auditor's Report
Honorable Mayor and Members
of the City Council
City of Mendota Heights
Mendota Heights, Minnesota
Report on the Financial Statements
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 Mendota
Heights, Minnesota, as of and for the year ended December 31, 2020, and the related notes to financial
statements, which collectively comprise the City's basic financial statements as listed in the Table of
Contents.
Management's Responsibility for the Financial Statements
The City of Mendota Height's management is responsible for the preparation and fair presentation of
these financial statements in accordance with accounting principles generally accepted in the United
States of America; this includes the design, implementation, and maintenance of internal control
relevant to the preparation and fair presentation of financial statements that are free from material
misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. 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. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the City's
preparation and fair presentation of the financial statements 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, we express no such opinion. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
3
Opinions
In our opinion, the financial statements referred to in the first paragraph present fairly, in all material
respects, the respective financial position of the governmental activities, the business-type activities, each
major fund, and the aggregate remaining fund information of the City of Mendota Heights, Minnesota, as
of December 31, 2020, and the respective changes in financial position and, where applicable, cash flows
thereof, and the budgetary comparison for the General Fund for the year then ended in accordance with
accounting principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management's
Discussion and Analysis, which follows this report letter, and Required Supplementary Information as
listed in the Table of Contents be presented to supplement the basic financial statements. Such
information, although not a part of the basic financial statements, is required by the Governmental
Accounting Standards Board (GASB), who considers it to be an essential part of financial reporting for
placing the basic financial statements in an appropriate operational, economic, or historical context. We
have applied certain limited procedures to the Required Supplementary Information in accordance with
auditing standards generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing the information and comparing the information for
consistency with management's responses to our inquiries, the basic financial statements and other
knowledge we obtained during our audit of the basic financial statements. We do not express an opinion
or provide any assurance on the information because the limited procedures do not provide us with
sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City of Mendota Heights' basic financial statements. The accompanying supplementary
information identified in the Table of Contents is presented for purposes of additional analysis and is not a
required part of the basic financial statements. The accompanying Schedule of Expenditures of Federal
Awards is presented for purposes of additional analysis as required by Title 2 U.S. Code of Federal
Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards (Uniform Guidance), and is also not a required part of the financial
statements.
The accompanying supplementary information and the Schedule of Expenditures of Federal Awards are
the responsibility of management and was derived from and relate directly to the underlying accounting
and other records used to prepare the basic financial statements. Such information has been subjected to
the auditing procedures applied in the audit of the basic financial statements and certain additional
procedures, including comparing and reconciling such information directly to the underlying accounting,
and other records used to prepare the basic financial statements or to the basic financial statements
themselves, and other additional procedures in accordance with auditing standards generally accepted in
the United States of America. In our opinion, the accompanying supplementary information and the
Schedule of Expenditures of Federal Awards are fairly stated, in all material respects, in relation to the
basic financial statements as a whole.
4
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated June 2, 2021,
on our consideration of the City of Mendota Heights' internal control over financial reporting and on our
tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and
other matters. The purpose of that report is solely to describe the scope of our testing of internal control
over financial reporting and compliance and the results of that testing, and not to provide an opinion on
the effectiveness of internal control over financial reporting or on compliance. That report is an integral
part of an audit performed in accordance with Government Auditing Standards in considering the City of
Mendota Heights' internal control over financial reporting and compliance.
Minneapolis, Minnesota
June 2, 2021
City of Mendota Heights
Management's Discussion and Analysis
5
As management of the City of Mendota Heights, Minnesota (the "City"), we offer readers of the City's
financial statements this narrative overview and analysis of the financial activities of the City for the
year ended December 31, 2020.
FINANCIAL AND DEVELOPMENT HIGHLIGHTS
The assets and deferred outflows of resources of the City exceeded liabilities and deferred inflows of
resources at the close of the most recent year by $50,599,802 (net position). Of this amount,
$10,966,805 (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 $5,696,784. Governmental activities resulted in an increase of
net position of $5,087,870. Business activities had net position increase of $608,914.
As of the close of the current year, the City's governmental funds reported a combined ending fund
balance of $19,872,147, an increase of $55,219 from the prior year.
At the end of the year the General Fund had an unassigned fund balance of $10,330,546, or 109.8% of
total General Fund expenditures.
OVERVIEW OF THE FINANCIAL STATEMENTS
The discussion and analysis are intended to serve as an introduction to the City's basic financial
statements. The City's basic financial statements comprise three components: 1) government-wide
financial statements, 2) fund financial statements, and 3) notes to financial statements. This report also
contains other supplementary information in addition to the basic financial statements themselves.
Government-Wide Financial Statements
The government-wide financial statements on pages 16 and 17 are designed to provide readers with a
broad overview of the City's finances, in a manner similar to a private-sector business.
The Statement of Net Position presents information on all of the City's assets, 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 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 periods (e.g.
uncollected taxes and earned but unused vacation leave).
Both of the government-wide financial statements distinguish functions of the City that are principally
supported by taxes and intergovernmental revenues (governmental activities) and from other functions
that are intended to recover all or a significant portion of their costs through user fees and charges
(business-type activities). The governmental activities of the City include general government, public
safety, and public works. The business-type activities of the City include sewer and storm water.
City of Mendota Heights
Management's Discussion and Analysis
6
OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)
Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been
segregated for specific activities or objectives. The City, like other state and local governments, uses
fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of
the funds of the City can be divided into two categories: Governmental Funds and Proprietary Funds.
Governmental Funds
Governmental Funds are used to account for essentially the same functions reported as governmental
activities in the government-wide financial statements. However, unlike the government-wide financial
statements, governmental fund financial statements focus on near-term inflows and outflows of
spendable resource, as well as on balances of spendable resources available at the end of the year. Such
information may be useful in evaluating a government's near-term financial requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statement. By doing
so, readers may better understand the long-term impact of the City's near-term financial decisions. Both
the Governmental Fund Balance Sheet and Governmental Fund Statement of Revenues, Expenditures
and Changes in Fund Balances provide a reconciliation to facilitate this comparison between
governmental funds and governmental activities.
The City maintains four individual major governmental funds. Information is presented separately in the
Governmental Fund Balance Sheet and in the Governmental Fund Statement of Revenues, Expenditures,
and Changes in Fund Balances for the following major funds:
General Fund
Special Assessments Debt Service Fund
Street Capital Projects Fund
Fire Hall Remodel Fund
Data from the other governmental funds are combined into a single, aggregated presentation. Individual
fund data for each of these nonmajor governmental funds is provided in the form of combining
statements elsewhere in this report.
The City adopts an annual appropriated budget for its General Fund. A budgetary comparison statement
has been provided for those funds to demonstrate compliance with this budget.
The basic governmental fund financial statements can be found on pages 18 through 25 of this report.
Proprietary Funds
The City maintains two enterprise funds and two internal service funds as a part of its proprietary fund
type. Enterprise funds are used to report the same functions presented as business-type activities in the
government-wide financial statements. The City uses enterprise funds to account for its sewer and storm
water operations.
City of Mendota Heights
Management's Discussion and Analysis
7
OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)
Proprietary Funds (Continued)
Proprietary Funds provide the same type of information as the government-wide financial statements,
only in more detail. The proprietary fund financial statements provide separate information for the
following funds:
Enterprise Funds
Sewer Utility Fund
Storm Water Utility Fund
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 compensated absences
and city hall functions. The internal service funds are combined into a single, aggregated presentation in
the proprietary fund financial statements. Individual fund data for the internal service funds is provided
in the form of combining statements elsewhere in this report.
The basic proprietary fund financial statements can be found on pages 26 through 28 of this report.
Notes to Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in
the government-wide and fund financial statements. The notes to financial statements can be found on
pages 29 through 60 of this report.
Other Information
The combining statements referred to earlier in connection with non-major governmental funds are
presented immediately following the required supplementary information on budgetary comparisons.
Combining and individual fund statements and schedules can be found on pages 72 through 85 of this
report.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
As noted earlier, net position may serve over time as a useful indicator of a government's financial
position. In the case of the City, assets and deferred outflows of resources exceeded liabilities and
deferred inflows of resources by $50,599,802 at the close of the most recent year.
City of Mendota Heights
Management's Discussion and Analysis
8
GOVERNMENT-WIDE FINANCIAL ANALYSIS (CONTINUED)
The largest portion of the City's net position ($33,232,608 or 65.68%) reflects its investment in capital
assets (e.g. land, buildings, machinery and equipment, sewer main lines and storm sewers and
infrastructure) less any related debt used to acquire those assets that is still outstanding. The City uses
these capital assets to provide services to citizens; consequently, these assets are not available for future
spending. Although the City's investment in its capital assets is reported net of related debt, it should be
noted that the resources needed to repay this debt must be provided from other sources, since the capital
assets themselves cannot be used to liquidate these liabilities.
Net Position
2020 2019 2020 2019 2020 2019
Assets
Current and other assets 24,377,556$ 24,465,601$ 1,686,982$ 1,596,455$ 26,064,538$ 26,062,056$
Capital assets 41,437,497 36,354,121 14,703,576 14,478,671 56,141,073 50,832,792
Deferred outflows of resources related to pensions and OPEB 1,528,215 2,009,901 12,341 11,717 1,540,556 2,021,618
Total assets and deferred outflows of resources 67,343,268$ 62,829,623$ 16,402,899$ 16,086,843$ 83,746,167$ 78,916,466$
Liabilities
Long-term liabilities outstanding 25,897,048$ 25,563,089$ 139,283$ 128,014$ 26,036,331$ 25,691,103$
Other liabilities 5,489,222 5,051,561 116,877 403,116 5,606,099 5,454,677
Deferred inflows of resources related to pensions 1,497,923 2,843,768 6,012 23,900 1,503,935$ 2,867,668
Total liabilities and deferred inflows of resources 32,884,193$ 33,458,418$ 262,172$ 555,030$ 33,146,365$ 34,013,448$
Net Position
Net investment in capital assets 18,529,032$ 16,838,188$ 14,703,576$ 14,478,671$ 33,232,608$ 31,225,359$
Restricted 6,400,389 6,058,381 - - 6,400,389 6,058,381
Unrestricted 9,529,654 6,474,636 1,437,151 1,053,142 10,966,805 7,619,278
Total net position 34,459,075$ 29,371,205$ 16,140,727$ 15,531,813$ 50,599,802$ 44,903,018$
Governmental Activities Business-Type Activities Totals
A portion of the of the City's net position ($6,400,389) represents resources that are subject to external
restrictions on how they may be used. The remaining balance of unrestricted net position ($10,966,805)
may be used to meet the City's ongoing obligations to citizens and creditors.
At the end of the current year, the City is able to report positive balances in all three categories of net
position, both for the government as a whole, as well as for its separate governmental and business-type
activities.
City of Mendota Heights
Management's Discussion and Analysis
9
GOVERNMENT-WIDE FINANCIAL ANALYSIS (CONTINUED)
Governmental Activities
Governmental activities increased the City's net position by $5,087,870. Key elements of this increase
are as follows:
City's Changes in Net Position
2020 2019 2020 2019 2020 2019
Revenues
Program revenues
Charges for services 2,141,606$ 2,147,351$ 2,906,916$ 2,570,609$ 5,048,522$ 4,717,960$
Operating grants and contributions 1,942,370 714,691 - - 1,942,370 714,691
Capital grants and contributions 3,327,642 610,169 - 115,955 3,327,642 726,124
General revenues
Taxes 10,052,157 9,430,008 - - 10,052,157 9,430,008
Tax Increment 15,656 - - - 15,656 -
Unrestricted investment earnings 204,638 476,412 18,881 26,166 223,519 502,578
Gain on sale of asset - - 11,167 - 11,167 -
Total revenues 17,684,069 13,378,631 2,936,964 2,712,730 20,621,033 16,091,361
Expenses
General government 2,608,370 2,050,317 - - 2,608,370 2,050,317
Public safety 5,022,012 4,587,085 - - 5,022,012 4,587,085
Public works 4,402,320 4,457,956 - - 4,402,320 4,457,956
Economic Development 15,244 - - - 15,244 -
Interest on long-term debt 626,171 685,202 - - 626,171 685,202
Sewer - - 2,024,291 2,001,963 2,024,291 2,001,963
Storm water - - 225,841 275,606 225,841 275,606
Par 3 golf course - - - - - -
Total expenses 12,674,117 11,780,560 2,250,132 2,277,569 14,924,249 14,058,129
Increase (decrease) in net
position before transfers 5,009,952 1,598,071 686,832 435,161 5,696,784 2,033,232
Transfers 77,918 112,648 (77,918) (112,648) - -
Increase (decrease) in net position 5,087,870 1,710,719 608,914 322,513 5,696,784 2,033,232
Net position - beginning 29,371,205 24,881,725 15,531,813 17,988,061 44,903,018 42,869,786
Change in accounting principle - 2,778,761 - (2,778,761) - -
Net position - beginning restated 29,371,205 27,660,486 15,531,813 15,209,300 44,903,018 42,869,786
Net position - ending 34,459,075$ 29,371,205$ 16,140,727$ 15,531,813$ 50,599,802$ 44,903,018$
Governmental Activities Business-Type Activities Totals
City of Mendota Heights
Management's Discussion and Analysis
10
GOVERNMENT-WIDE FINANCIAL ANALYSIS (CONTINUED)
Governmental Activities (Continued)
Below are specific graphs which provide comparisons of the governmental activities revenues and
expenditures:
Charges for
Services
12%
Operating Grants
and Contributions
11%
Capital Grants and
Contributions
19%
Taxes
57%
Unrestricted
Investment
Earnings
1%
Governmental Activities - Revenues
General
Government
21%
Public Safety
39%
Public Works
35%Interest and Fees on
Long-Term Debt
5%
Governmental Activities - Expenses
City of Mendota Heights
Management's Discussion and Analysis
11
GOVERNMENT-WIDE FINANCIAL ANALYSIS (CONTINUED)
Business-Type Activities
Business-type activities increased net position by $608,914. Below are graphs showing the business-type
activities revenue and expense comparisons:
Charges for
Services
99%
Unrestricted
Investment
Earnings
1%
Business-Type Activities - Revenues
Sewer
90%
Storm Water
10%
Business-Type Activities - Expenses
City of Mendota Heights
Management's Discussion and Analysis
12
FINANCIAL ANALYSIS OF THE GOVERNMENT'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 year.
At the end of the current year, the City's governmental funds reported combined ending fund balances of
$19,872,147. Nonspendable fund balances are already allocated for prepaid items ($341,541) and
inventory ($18,280). Approximately 33.03% ($6,563,568) constitutes restricted fund balance. Restricted
fund balance would include Debt Service, Special Park, and Street Light District Funds, all of which
have specific uses for the funds they receive. The City also has a committed fund balance of $901,102.
This represents fund balance that is to be used for the water system, Par 3 Golf Course and civil defense
needs. The City has assigned fund balance of $2,471,087 (12.43%). This number represents the fund
balances for the various reserve accounts. The remaining category of fund balance is the unassigned
fund balance. The City has $9,576,569 of unassigned fund balance which is approximately 48.19% of
the combined governmental fund balance at December 31, 2020.
The General Fund increased by $1,331,626 in 2020. Revenues were greater than anticipated and
expenditures were lower than budgeted amounts.
The Special Assessments Debt Service Fund increased by $656,280 in 2020. This fund accounted for
debt service payments for prior street improvement projects that were financed through the issuance of
bonds. This fund held bond proceeds that will be used to pay off the GO Improvement Bonds of 2012A
on 2/1/2021.
The Street Capital Project Fund decreased by $58,518. This fund accounted for the costs and resources
associated with the Marie Avenue street project.
The Fire Hall Remodel Fund decreased by $3,332,245 in 2020. This project was started in 2019 and was
nearly complete at the end of 2020. The project will be wrapped up in 2021.
The nonmajor governmental funds increased by $1,458,076. These funds received revenues from water
surcharges, Par 3 Golf Course, and park dedication fees. Nonmajor funds account for the Special Park,
Civil Defense, Par 3 Golf Course, and Street Light District activity. The City also has nonmajor funds
for future purchases of equipment, facility needs and minor infrastructure projects.
Proprietary Funds
The City's proprietary funds provide the same type of information found in the government-wide
financial statements, but in more detail. The unrestricted net position in the respective Proprietary Funds
are sewer $1,023,281 and storm water $413,870. The Sewer Utility Fund had an increase in net position
in 2020 of $317,470 and the Storm Water Utility Fund had an increase in net position in 2020 of
$291,444.
City of Mendota Heights
Management's Discussion and Analysis
13
BUDGETARY HIGHLIGHTS
General Fund
The General Fund budget was not amended during 2020.
During the year, revenues exceeded budgeted estimates by $1,139,199, while expenditures were less
than anticipated by $389,087.
The General Fund experienced greater than budgeted revenues in most categories. The City received
$858,276 in federal CARES money. This revenue had not been anticipated at the time that the FY 2020
budget was adopted, and increased the amount of intergovernmental revenue received. Miscellaneous
revenue exceeded budgeted amounts, in part due to the City's conservative philosophy used when
budgeting for interest income and donations.
The General Fund expenditures were lower than budgeted. While the General Government function was
slightly over budget, due to pandemic related expenses and local business COVID-19 stimulus grants
which were CARES-reimbursed. The Public Safety function expenditures were less than what was
budgeted, primarily due to a number of vacant employee positions. Finally, the Public Works function
also experienced slightly lower than budgeted expenditures.
Overall, the General Fund balance increased by $1,331,626, an increase of approximately 14.24%.
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
The City's investment in capital assets for its governmental and business type activities as of
December 31, 2020, amounts to $56,141,073 (net of accumulated depreciation). This investment in
capital assets includes land, buildings, machinery and equipment, sewer main lines and storm sewers
and infrastructure.
Capital Assets
(Net of Depreciation)
2020 2019 2020 2019 2020 2019
Land 8,790,170$ 8,682,370$ -$ -$ 8,790,170$ 8,682,370$
Construction in progress 11,126,332 7,024,824 - 217,421 11,126,332 7,242,245
Buildings and structures 1,014,613 996,159 - - 1,014,613 996,159
Machinery and equipment 2,272,902 2,359,141 321,985 88,397 2,594,887 2,447,538
Other improvements 1,011,350 658,593 - - 1,011,350 658,593
Sewer main lines and
Storm sewers - - 14,381,591 14,172,853 14,381,591 14,172,853
Infrastructure 17,222,130 16,633,034 - - 17,222,130 16,633,034
Total capital assets 41,437,497$ 36,354,121$ 14,703,576$ 14,478,671$ 56,141,073$ 50,832,792$
Governmental Activities Business-Type Activities Totals
Additional information on the City's capital assets can be found in Note 5.
City of Mendota Heights
Management's Discussion and Analysis
14
CAPITAL ASSET AND DEBT ADMINISTRATION (CONTINUED)
Long-Term Debt
At the end of the current year, the City had total long-term debt outstanding of $23,865,000, an increase
of $740,000 from 2019. $23,865,000 for general obligation (G.O.) improvement debt which is supported
in part by special assessments.
Outstanding Debt
G.O. Improvement Bonds, G.O. Bonds and Revenue Bonds:
2020 2019
G.O. Improvement Bonds 16,200,000$ 15,165,000$
G.O. Bonds 7,665,000 7,960,000
Total 23,865,000$ 23,125,000$
Governmental Activities
The City maintains a AAA rating from Standard & Poor's.
Minnesota Statutes limit the amount of G.O. debt a Minnesota city may issue to 2% of total estimated
market value. The current debt limitation for the City is $48,160,786. Of the City's outstanding debt,
$7,665,000 is counted within the statutory limitation.
Additional information on the City's long-term debt can be found in Note 6.
Economic Factors and Next Year's Budgets and Rates
In 2020, the taxable market value for the City was $2,408,039,314. This represents an increase of 5.32%
from 2019. The City is expecting an increase in taxable market value for 2021.
These factors were considered in preparing the City's budget for 2021.
Requests for Information
This financial report is designed to provide a general overview of the City's finances for all those with
an interest in the government's finances. Questions concerning any of the information provided in this
report or requests for additional financial information should be addressed to the Director of Finance,
1101 Victoria Curve, Mendota Heights, Minnesota 55118.
15
BASIC FINANCIAL STATEMENTS
City of Mendota Heights
Statement of Net Position
December 31, 2020
Governmental
Activities
Business-Type
Activities Total
Assets
Cash and investments
(including cash equivalents)20,635,922$ 780,347$ 21,416,269$
Property tax receivable 79,562 - 79,562
Accounts receivable 29,366 743,231 772,597
Interest receivable 23,399 1,107 24,506
Due from other governments 1,004,890 4,473 1,009,363
Special assessments receivable
Delinquent 4,664 4,369 9,033
Unearned 2,134,995 16,965 2,151,960
Inventories 18,280 - 18,280
Prepaid items 350,378 136,490 486,868
Land held for resale 96,100 - 96,100
Capital assets (net of accumulated depreciation)
Land and improvements 8,790,170 - 8,790,170
Construction in progress 11,126,332 - 11,126,332
Capital assets being depreciated
Infrastructure 17,222,130 14,381,591 31,603,721
Buildings and structures 1,014,613 - 1,014,613
Other improvements 1,011,350 - 1,011,350
Machinery and equipment 2,272,902 321,985 2,594,887
Total assets 65,815,053 16,390,558 82,205,611
Deferred Outflows of Resources
Deferred outflows of resources related to pensions 1,366,009 11,962 1,377,971
Deferred outflows of resources related to OPEB 162,206 379 162,585
Total deferred outflows of resources 1,528,215 12,341 1,540,556
Total assets and deferred outflows of resources 67,343,268$ 16,402,899$ 83,746,167$
Liabilities
Accounts and contracts payable 612,573$ 43,327$ 655,900$
Deposits payable - 45,150 45,150
Due to other governments 259,599 3,224 262,823
Salaries and benefits payable 195,902 4,973 200,875
Interest payable 250,782 - 250,782
Developers' escrow deposits 15,141 - 15,141
Bond principal payable
Payable within one year 3,755,000 - 3,755,000
Payable after one year 20,948,465 - 20,948,465
Compensated absences payable
Payable within one year 400,225 20,203 420,428
Payable after one year 245,971 17,346 263,317
Total other post employment benefits (OPEB) payable 836,760 5,980 842,740
Net pension liability 3,865,852 115,957 3,981,809
Total liabilities 31,386,270 256,160 31,642,430
Deferred Inflows of Resources
Deferred inflows of resources related to pensions 1,483,304 5,592 1,488,896
Deferred inflows of resources related to OPEB 14,619 420 15,039
Total deferred inflows of resources 1,497,923 6,012 1,503,935
Net Position
Net investment in capital assets 18,529,032 14,703,576 33,232,608
Restricted for
Debt service 5,599,450 - 5,599,450
Street light maintenance 35,789 - 35,789
Park dedication 765,150 - 765,150
Unrestricted 9,529,654 1,437,151 10,966,805
Total net position 34,459,075 16,140,727 50,599,802
Total liabilities, deferred inflows of resources, and net position 67,343,268$ 16,402,899$ 83,746,167$
See notes to financial statements.16
Program RevenuesExpensesCharges for ServicesOperating Grants and ContributionsCapital Grants and ContributionsGovernmental ActivitiesBusiness-Type ActivitiesTotalGovernmental activitiesGeneral government 2,608,370$ 264,144$ 459,305$ 1,105,386$ (779,535)$ -$ (779,535)$ Public safety 5,022,012 734,109 1,258,974 - (3,028,929) - (3,028,929) Public works 4,402,320 1,143,353 224,091 2,222,256 (812,620) - (812,620) Economic development 15,244 - - - (15,244) - (15,244) Interest on long-term debt 626,171 - - - (626,171) - (626,171) Total governmental activities 12,674,117 2,141,606 1,942,370 3,327,642 (5,262,499) - (5,262,499) Business-type activitiesSewer 2,024,291 2,327,917 - - - 303,626 303,626 Storm water 225,841 578,999 - - - 353,158 353,158 Total business-type activities 2,250,132 2,906,916 - - - 656,784 656,784 Total governmental and business-type activities 14,924,249$ 5,048,522$ 1,942,370$ 3,327,642$ (5,262,499) 656,784 (4,605,715) General revenuesProperty taxes 10,052,157 - 10,052,157 Tax increments 15,656 - 15,656 Unrestricted investment earnings 204,638 18,881 223,519 Gain on sale of asset - 11,167 11,167 Total general revenues 10,272,451 30,048 10,302,499 Transfers 77,918 (77,918) - Change in net position 5,087,870 608,914 5,696,784 Net position - beginning 29,371,205 15,531,813 44,903,018 Net position - ending 34,459,075$ 16,140,727$ 50,599,802$ See notes to financial statements.17Functions/ProgramsNet (Expense) Revenues and Changes in Net PositionCity of Mendota HeightsStatement of Activities Year Ended December 31, 2020
December 31, 2020
Capital Projects
General Fund
Special
Assessments
Debt Service
Street Capital
Projects
Assets
Cash and investments
(including cash equivalents) 10,364,192$ 4,773,638$ -$
Taxes receivable - delinquent 63,105 8,825 -
Special assessments receivable
Delinquent 353 4,311 -
Deferred 5,823 1,862,247 256,341
Accounts receivable 18,278 - -
Interest receivable 12,011 4,756 1,076
Due from other funds - - -
Due from other governments 313,132 42,508 351,448
Inventories 18,280 - -
Prepaid items 335,685 - -
Land held for resale - - -
Total assets 11,130,859$ 6,696,285$ 608,865$
Liabilities
Accounts and contracts payable 148,710$ -$ 208,645$
Due to other funds - - 63,317
Due to other governments 20,762 - -
Salaries and benefits payable 192,454 - -
Developers' escrow deposits 15,141 - -
Total liabilities 377,067 - 271,962
Deferred Inflows of Resources
Unavailable revenue - property taxes 63,105 8,825 -
Unavailable revenue - grants - - 344,312
Unavailable revenue - special assessments 6,176 1,866,558 256,341
Total deferred inflows of resources 69,281 1,875,383 600,653
Fund Balances
Nonspendable 353,965 - -
Restricted - 4,820,902 -
Committed - - -
Assigned - - -
Unassigned 10,330,546 - (263,750)
Total fund balances 10,684,511 4,820,902 (263,750)
Total liabilities, deferred inflows of
resources, and fund balances 11,130,859$ 6,696,285$ 608,865$
See notes to financial statements.18
City of Mendota Heights
Balance Sheet - Governmental Funds
Capital Projects
Fire Hall
Remodel
Other
Governmental
Funds
Total
Governmental
Funds
90,508$ 4,741,313$ 19,969,651$
153 7,479 79,562
- - 4,664
- 10,584 2,134,995
- 11,088 29,366
- 5,417 23,260
- 252,202 252,202
22 297,780 1,004,890
- - 18,280
- 5,856 341,541
- 96,100 96,100
90,683$ 5,427,819$ 23,954,511$
242,390$ 7,254$ 606,999$
- 188,885 252,202
- 238,741 259,503
- 532 192,986
- - 15,141
242,390 435,412 1,326,831
153 7,479 79,562
- 192,000 536,312
- 10,584 2,139,659
153 210,063 2,755,533
- 5,856 359,821
- 1,742,666 6,563,568
- 901,102 901,102
- 2,471,087 2,471,087
(151,860) (338,367) 9,576,569
(151,860) 4,782,344 19,872,147
90,683$ 5,427,819$ 23,954,511$
19
20
(THIS PAGE LEFT BLANK INTENTIONALLY)
City of Mendota Heights
Reconciliation of the Balance Sheet to
the Statement of Net Position - Governmental Funds
December 31, 2020
Total fund balances - governmental funds 19,872,147$
Capital assets used in governmental activities are not current financial resources and, therefore,
are not reported as assets in governmental funds.
Cost of capital assets 69,373,190
Less accumulated depreciation (28,573,272)
Long-term liabilities, including bonds payable, are not due and payable in the current period and,
therefore, are not reported as liabilities in the funds.
Long-term liabilities at year-end consist of:
General obligation (G.O.) bond principal payable (23,865,000)
Unamortized bond premium (838,465)
OPEB payable (832,431)
Net pension liability (3,811,126)
Deferred outflows of resources and deferred inflows of resources are created as a result of various
differences related to pensions and OPEB that are not recognized in the governmental funds.
Deferred inflows of resources related to pensions (1,480,665)
Deferred outflows of resources related to pensions 1,360,363
Deferred outflows of resources related to OPEB 161,932
Deferred inflows of resources related to OPEB (14,315)
Delinquent receivables will be collected in subsequent years, but are not available soon enough to
pay for the current period's expenditures and, therefore, are deferred in the funds.
Property taxes 79,562
Special assessments 4,664
Revenues in the Statement of Activities that do not provide current financial resources are not
reported as revenues in the funds.
Deferred special assessments 2,134,995
Deferred grants 536,312
Governmental funds do not report a liability for accrued interest until due and payable.(250,782)
Internal service funds are used by management to charge the cost of engineering, compensated
absences and City Hall expenses to individual funds. The net position of the funds are considered
governmental and included in the government-wide Statement of Net Position. 601,966
34,459,075$
See notes to financial statements.21
Total net position - governmental activities
Amounts reported for governmental activities in the Statement of Net Position are different because:
Capital Projects
General Fund
Special
Assessments
Debt Service
Street Capital
Projects
Revenues
Property taxes 7,959,743$ 1,118,031$ -$
Tax increments - - -
Special assessments - 371,908 161,274
Licenses and permits 405,376 - -
Intergovernmental 1,435,730 - 1,547,126
Charges for services 677,925 - -
Fines and forfeitures 102,676 499 -
Miscellaneous revenue
Investment income 96,400 38,173 8,637
Other 213,370 - 3,708
Total revenues 10,891,220 1,528,611 1,720,745
Expenditures
Current
General government 1,890,278 - -
Public safety 4,885,438 - -
Public works 2,632,290 - -
Economic development - - -
Debt service
Principal - 1,005,000 -
Interest and other charges - 429,025 -
Capital outlay
General government - - -
Public safety - - -
Public works 2,478 - 3,610,303
Total expenditures 9,410,484 1,434,025 3,610,303
Excess of revenues over (under) expenditures 1,480,736 94,586 (1,889,558)
Other Financing Sources (Uses)
Issuance of debt - 3,295,000 -
Bond premium - 165,068 -
Refunded debt payment - (1,290,000) -
Transfers in 47,550 1,795,000 1,868,242
Transfers out (196,660) (3,403,374) (37,202)
Total other financing sources (uses) (149,110) 561,694 1,831,040
Net change in fund balances 1,331,626 656,280 (58,518)
Fund Balances
Beginning of year 9,352,885 4,164,622 (205,232)
End of year 10,684,511$ 4,820,902$ (263,750)$
See notes to financial statements.22
City of Mendota Heights
Statement of Revenues, Expenditures, and
Changes in Fund Balances - Governmental Funds
Year Ended December 31, 2020
Capital Projects
Fire Hall
Remodel
Other
Governmental
Funds
Total
Governmental
Funds
1,959$ 938,312$ 10,018,045$
- 15,656 15,656
- - 533,182
- - 405,376
- 254,076 3,236,932
- 320,967 998,892
- 1 103,176
16,852 43,460 203,522
- 1,444,204 1,661,282
18,811 3,016,676 17,176,063
- 439,231 2,329,509
2,311 169,053 5,056,802
- 256,119 2,888,409
- 15,244 15,244
- 260,000 1,265,000
5,410 309,490 743,925
- 7,830 7,830
3,343,335 - 3,343,335
- 276,253 3,889,034
3,351,056 1,733,220 19,539,088
(3,332,245) 1,283,456 (2,363,025)
- - 3,295,000
- - 165,068
- - (1,290,000)
- 234,518 3,945,310
- (59,898) (3,697,134)
- 174,620 2,418,244
(3,332,245) 1,458,076 55,219
3,180,385 3,324,268 19,816,928
(151,860)$ 4,782,344$ 19,872,147$
23
55,219$
Capital outlays are reported in governmental funds as expenditures. However, in the Statement of
Activities, the cost of those assets is allocated over the estimated useful lives as depreciation
expense.
Capital outlays 7,166,854
Depreciation expense (1,912,013)
Book value of disposed assets (2,118)
Donated assets 40,500
Assets contributed to enterprise funds (187,798)
Governmental funds recognized pension contributions as expenditures at the time of payment
whereas the Statement of Activities factors in items related to pensions on a full accrual
perspective. 200,162
OPEB are not reported as expenditures in the governmental funds because they do not require the
use of current financial resources; instead, they are expensed in the Statement of Activities. 42,987
Principal payments on long-term debt are recognized as expenditures in the governmental funds
but have no effect on net position in the Statement of Activities. 1,265,000
Refunding bond payments are recognized as other financing uses in the governmental funds but
as an increase in net assets in the Statement of Activities. 1,290,000
Premiums on the issuance of long-term debt provide current financial resources to governmental
funds and have no effect on net position. These amounts are reported in the governmental funds
as an other financing source and constitute long-term liabilities in the Statement of Net Position. (165,068)
Premiums are recognized when debt is issued in the governmental funds but amortized over the
life of the debt in the Statement of Activities. 68,402
Interest on long-term debt in the Statement of Activities differs from the amount reported in the
governmental funds because interest is recognized as an expenditure in the funds when it is due
and thus requires use of current financial resources. In the Statement of Activities, however,
interest expense is recognized as the interest accrues, regardless of when it is due. 49,352
Proceeds from long-term debt are recognized as an other financing source in the governmental
funds but have no effect on net position in the Statement of Activities.
Bonds payable (3,295,000)
Revenues in the Statement of Activities that do not provide current financial resources are not
reported as revenues in the funds. 466,390
Activities of the internal service funds are presented separately from the governmental funds.
However, the functions, from a government-wide perspective, are governmental. 5,001
5,087,870$
See notes to financial statements.24
Change in net position - governmental activities
Net change in fund balances - governmental funds
Amounts reported for governmental activities in the Statement of Activities are different because:
City of Mendota Heights
Reconciliation of the Statement of Revenues,
Expenditures, and Changes in Fund Balances to
the Statement of Activities - Governmental Funds
Year Ended December 31, 2020
Budget and Actual - General Fund
Statement of Revenues, Expenditures, and
Changes in Fund Balance -
Budget and Actual - General Fund
Year Ended December 31, 2020
Budgeted
Amounts Variance with
Original Actual
and Final Amounts
Revenues
Property taxes 7,941,373$ 7,959,743$ 18,370$
Licenses and permits 384,700 405,376 20,676
Intergovernmental 466,070 1,435,730 969,660
Charges for services 730,878 677,925 (52,953)
Fines and forfeitures 84,000 102,676 18,676
Miscellaneous revenues
Investment income 35,000 96,400 61,400
Other 110,000 213,370 103,370
Total revenues 9,752,021 10,891,220 1,139,199
Expenditures
Current
General government 1,823,755 1,890,278 66,523
Public safety 5,196,561 4,885,438 (311,123)
Public works 2,779,255 2,632,290 (146,965)
Capital outlay
Public works - 2,478 2,478
Total expenditures 9,799,571 9,410,484 (389,087)
Excess of revenues over (under) expenditures (47,550) 1,480,736 1,528,286
Other Financing Sources (Uses)
Transfers in 47,550 47,550 -
Transfers out - (196,660) (196,660)
Total other financing sources (uses) 47,550 (149,110) (196,660)
Net change in fund balance -$ 1,331,626 1,331,626$
Fund Balance
Beginning of year 9,352,885
End of year 10,684,511$
See notes to financial statements.25
Final Budget -
Over (Under)
City of Mendota Heights
Statement of Net Position - Proprietary Funds
December 31, 2020
Sewer Utility
Storm Water
Utility Total
Internal
Service Funds
Assets
Current assets
Cash and investments 409,339$ 371,008$ 780,347$ 666,271$
Special assessment receivable
Delinquent 4,369 - 4,369 -
Deferred 16,965 - 16,965 -
Accounts receivable 598,281 144,950 743,231 -
Interest receivable 477 630 1,107 139
Due from other governments 4,473 - 4,473 -
Prepaid expenses 136,490 - 136,490 8,837
Total current assets 1,170,394 516,588 1,686,982 675,247
Noncurrent assets
Capital assets not being depreciated
Land - - - 25,000
Capital assets being depreciated
Buildings - - - 2,279,024
Sewer main lines and storm sewers 15,247,721 5,128,241 20,375,962 -
Improvements other than buildings - - - 40,781
Machinery and equipment 477,497 - 477,497 66,969
Total capital assets 15,725,218 5,128,241 20,853,459 2,411,774
Less accumulated depreciation (5,553,674) (596,209) (6,149,883) (1,774,195)
Net capital assets 10,171,544 4,532,032 14,703,576 637,579
Total assets 11,341,938 5,048,620 16,390,558 1,312,826
Deferred Outflows of Resources
Deferred outflows of resources related to pensions 10,082 1,880 11,962 5,646
Deferred outflows of resources related to OPEB 320 59 379 274
Total deferred outflows of resources 10,402 1,939 12,341 5,920
Total assets and deferred outflows of resources 11,352,340$ 5,050,559$ 16,402,899$ 1,318,746$
Liabilities and Net Position
Current liabilities
Accounts and contracts payable 4,814$ 38,513$ 43,327$ 5,574$
Developers' escrow deposits - 45,150 45,150 -
Salaries and benefits payable 4,072 901 4,973 2,916
Due to other governments 3,224 - 3,224 96
Noncurrent liabilities due within one year 20,203 - 20,203 400,225
Total current liabilities 32,313 84,564 116,877 408,811
Noncurrent liabilities
Compensated absences 37,549 - 37,549 646,196
OPEB payable 5,055 925 5,980 4,329
Net pension liability 97,733 18,224 115,957 54,726
Less amount due within one year (20,203) - (20,203) (400,225)
Total noncurrent liabilities 120,134 19,149 139,283 305,026
Total liabilities 152,447 103,713 256,160 713,837
Deferred Inflows of Resources
Deferred inflows of resources related to OPEB 355 65 420 304
Deferred inflows of resources related to pensions 4,713 879 5,592 2,639
Total deferred inflows of resources 5,068 944 6,012 2,943
Net Position
Investment in capital assets 10,171,544 4,532,032 14,703,576 637,579
Unrestricted 1,023,281 413,870 1,437,151 (35,613)
Total net position 11,194,825 4,945,902 16,140,727 601,966
Total liabilities, deferred inflows of resources,
and net position 11,352,340$ 5,050,559$ 16,402,899$ 1,318,746$
See notes to financial statements.26
Sewer Utility
Storm Water
Utility Total
Internal
Service Funds
Operating revenues
Charges for services 2,317,640$ 578,799$ 2,896,439$ 216,940$
Operating expenses
Wages and salaries 147,762 22,827 170,589 71,691
Employee benefits 45,335 5,714 51,049 31,916
Materials and supplies 19,364 27 19,391 -
Repairs and maintenance 108,565 85,292 193,857 -
Professional services 55,936 30,786 86,722 4,013
Insurance 9,528 - 9,528 6,891
Utilities 26,623 - 26,623 36,266
Depreciation 200,912 51,283 252,195 36,505
Travel 12 - 12 -
Miscellaneous 22,727 29,912 52,639 43,313
Sewer charges - MCES 1,387,527 - 1,387,527 -
Total operating expenses 2,024,291 225,841 2,250,132 230,595
Operating income (loss) 293,349 352,958 646,307 (13,655)
Nonoperating revenues
(expenses)
Investment income 13,827 5,054 18,881 1,116
Fines and forfeitures 869 - 869 -
Special assessments 3,081 - 3,081 -
Gain on sale of asset 11,167 - 11,167 -
Other income 6,327 200 6,527 -
Total nonoperating revenues 35,271 5,254 40,525 1,116
Change in net position
before capital contributions
and transfers 328,620 358,212 686,832 (12,539)
Capital contributions - 187,798 187,798 -
Transfers in - 37,202 37,202 17,540
Transfers out (11,150) (291,768) (302,918) -
Change in net position 317,470 291,444 608,914 5,001
Net position
Beginning of year 10,877,355 4,654,458 15,531,813 596,965
End of year 11,194,825$ 4,945,902$ 16,140,727$ 601,966$
Net change in the net position reported above 608,914$
Amounts reported for business-type activities in the Statement of Activities
are different because:
Transfers in of capital assets from governmental activities 187,798
Contribution revenue reported above (187,798)
Change in net position of business-type activities 608,914$
See notes to financial statements.27
Year Ended December 31, 2020
City of Mendota Heights
Statement of Revenues, Expenses, and Changes
in Fund Net Position - Proprietary Funds
Sewer Utility
Storm Water
Utility Total
Internal
Service Funds
Cash Flows - Operating Activities
Receipts from customers and users 2,230,039$ 561,415$ 2,791,454$ 216,940$
Payments to suppliers (1,749,160) (319,408) (2,068,568) (92,164)
Payments to employees (199,625) (30,134) (229,759) (32,838)
Miscellaneous revenue 17,450 200 17,650 -
Net cash flows - operating activities 298,704 212,073 510,777 91,938
Cash Flows - Noncapital
Financing Activities
Transfer from other funds - 37,202 37,202 17,540
Transfer to other funds (11,150) (291,768) (302,918) -
Net cash flows - noncapital
financing activities (11,150) (254,566) (265,716) 17,540
Cash Flows - Capital and Related
Financing Activities
Proceeds from sale of capital assets 11,167 - 11,167 -
Acquisition of capital assets (262,686) (26,616) (289,302) (14,457)
Net cash flows - capital and related
Financing activities (251,519) (26,616) (278,135) (14,457)
Cash Flows - Investing Activities
Interest and dividends received 13,651 5,100 18,751 1,151
Net change in cash and cash equivalents 49,686 (64,009) (14,323) 96,172
Cash and Cash Equivalents
Beginning of year 359,653 435,017 794,670 570,099
End of year 409,339$ 371,008$ 780,347$ 666,271$
Reconciliation of Operating Income
(Loss) to Net Cash Flows -
Operating Activities
Operating income (loss) 293,349$ 352,958$ 646,307$ (13,655)$
Adjustments to reconcile operating income
(loss) to net cash flows - operating activities
Operating activities
Miscellaneous revenue 17,450 200 17,650 -
Depreciation expense 200,912 51,283 252,195 36,505
Accounts receivable (83,128) (17,384) (100,512) -
Due from other governments (4,473) - (4,473) -
Prepaid items (6,908) - (6,908) (418)
Developers' excrow deposits - 7,650 7,650 -
Accounts and contracts payable (112,067) (181,041) (293,108) (1,264)
Due to other governmental units 97 - 97 1
Salaries payable 858 217 1,075 888
OPEB payable (1,665) (252) (1,917) (1,238)
Pension related items (9,583) (1,558) (11,141) (4,630)
Compensated absences payable 3,862 - 3,862 75,749
Total adjustments 5,355 (140,885) (135,530) 105,593
Net cash flows - operating activities 298,704$ 212,073$ 510,777$ 91,938$
Noncash Investing, Capital, and
Financing Activities
Contributions of capital assets -$ 187,798$ 187,798$ -$
See notes to financial statements.
City of Mendota Heights
Statement of Cash Flows - Proprietary Funds
Year Ended December 31, 2020
28
29
City of Mendota Heights
Notes to Financial Statements
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The City of Mendota Heights is a statutory city governed by an elected mayor and four council
members. The accompanying financial statements present the government entities for which the
government is considered to be financially accountable.
The financial statements present the City and its component units. The City includes all funds,
organizations, institutions, agencies, departments, and offices that are not legally separate from such.
Component units are legally separate organizations for which the elected officials of the City are
financially accountable and are included within the basic financial statements of the City because of the
significance of their operational or financial relationships with the City.
The City is considered financially accountable for a component unit if it appoints a voting majority of
the organization's governing body and it is able to impose its will on the organization by significantly
influencing the programs, projects, activities, or level of services performed or provided by the
organization, or there is a potential for the organization to provide specific financial benefits to or
impose specific financial burdens on, the City.
As a result of applying the component unit definition criteria above, the City has no component units.
B. Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e., the Statement of Net Position and the Statement of
Activities) report information on all of the nonfiduciary activities of the City. Governmental activities,
which normally are supported by taxes and intergovernmental revenues, are reported separately from
business-type activities, which rely to a significant extent on fees and charges for support.
The Statement of Activities demonstrates the degree to which the direct expenses of a given function or
segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a
specific function or segment. Interest on general long-term debt is considered an indirect expense and is
reported separately in the Statement of Activities. Program revenues include 1) charges to customers or
applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given
function or segment and 2) grants and contributions that are restricted to meeting the operational or
capital requirements of a particular function or segment. Taxes and other items not properly included
among program revenues are reported instead as general revenues. Internally dedicated revenues are
reported as general revenues rather than program revenues.
Separate financial statements are provided for governmental funds and proprietary funds. Major
individual governmental funds and major individual enterprise funds are reported as separate columns in
the fund financial statements.
The Internal Service Funds are presented in the internal service fund financial statements. Because the
principal user of internal services is the City's governmental activities, the financial statements of the
Internal Service Fund is 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.
30
City of Mendota Heights
Notes to Financial Statements
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources measurement
focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are
recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of
related cash flows. Property taxes are recognized as revenues in the year for which they are levied.
Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the
provider have been met.
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. Revenues are considered to be available when they are collectible within the
current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City
considers revenues to be available if they are collected within 60 days of the end of the current period.
Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However,
debt service expenditures, as well as expenditures related to compensated absences and claims and
judgments, are recorded only when payment matures.
Property taxes, franchise taxes, licenses, and interest associated with the current period are all
considered to be susceptible to accrual and so have been recognized as revenues of the current period.
Only the portion of special assessments receivable due within the current period is considered to be
susceptible to accrual as revenue of the current period. All other revenue items are considered to be
measurable and available only when cash is received by the City.
Description of Funds:
Major Governmental Funds:
General Fund – This fund 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.
Special Assessments Debt Service Fund – This fund receives all special assessment payments and is
dedicated for the repayment of debt incurred on a specific project.
Street Capital Projects Fund – This fund is used to account for the proceeds and disbursements of
funds for street improvement expenditures.
Fire Hall Remodel Fund – This fund is used to account for the proceeds and disbursements
associated with the Fire Hall remodel and expansion project.
Proprietary Funds:
Sewer Utility Fund – This fund is used to account for the City's sewer utility.
Storm Water Utility Fund – This fund is used to account for the City's storm water utility.
31
City of Mendota Heights
Notes to Financial Statements
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)
Description of Funds: (Continued)
Additional Fund Types:
Internal Service Funds – These funds account for the financing of goods or services provided by one
department to other departments of the City on a cost-reimbursement basis. The City's Internal
Service Funds account for compensated absences and City Hall expenses.
As a general rule, the effect of interfund activity has been eliminated from the government-wide
financial statements. Exceptions to this general rule are charges between the City's utility functions and
various other functions of the City. Elimination of these charges would distort the direct costs and
program revenues reported for the various functions concerned.
Proprietary Funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund's principal ongoing operations. The principal operating revenues of
the City's Enterprise Funds and Internal Service Funds are charges to customers for sales and services.
Operating expenses for the Enterprise Funds and Internal Service Funds include the cost of sales and
services, administrative expenses and depreciation on capital assets. All revenues and expenses not
meeting this definition are reported as nonoperating revenues and expenses.
When both restricted and unrestricted resources are available for use, the City uses restricted resources
first, then unrestricted resources as they are needed. Further, the City applies unrestricted funds in this
order if various levels of unrestricted fund balances exist: committed, assigned, and unassigned.
D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Equity
1. Deposits and Investments
The City's cash and cash equivalents are considered to be cash on hand, demand deposits, and short-
term investments with original maturities of three months or less from the date of acquisition.
Investments for the City are reported at fair value.
Minnesota Statutes authorizes the City to invest in obligations of the U.S. Treasury, agencies, and
instrumentalities, shares of investment companies whose only investments are in the aforementioned
securities, obligations of the State of Minnesota or its municipalities, bankers' acceptances, future
contracts, repurchase and reverse repurchase agreements, and commercial paper of the highest
quality with a maturity of no longer than 270 days and in the Minnesota Municipal Investment Pool.
Minnesota Statutes requires all deposits made by cities with financial institutions to be collateralized
in an amount equal to 110% of deposits in excess of Federal Deposit Insurance Corporation (FDIC)
insurance.
32
City of Mendota Heights
Notes to Financial Statements
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Equity
(Continued)
1. Deposits and Investments (Continued)
Certain investments for the City are reported at fair value as disclosed in Note 3. The City
categorizes its fair value measurements within the fair value hierarchy established by generally
accepted accounting principles. The Hierarchy is based on the valuation inputs used to measure the
fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2
inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs.
2. Receivables and Payables
All trade and property tax receivables are shown at a gross amount since both are assessable to the
property taxes and are collectible upon the sale of the property.
The City levies its property tax for the subsequent year during the month of December. December 28
is the last day the City can certify a tax levy to the County Auditor for collection the following year.
Such taxes become a lien on January 1 and are recorded as receivables by the City at that date. The
property tax is recorded as revenue when it becomes measurable and available. Dakota County is the
collecting agency for the levy and remits the collections to the City three times a year. The tax levy
notice is mailed in March with the first half of the payment due on May 15 and the second half due
on October 15. Taxes not collected as of December 31 each year are shown as delinquent taxes
receivable.
The County Auditor prepares the tax list for all taxable property in the City, applying the applicable
tax rate to the tax capacity of individual properties, to arrive at the actual tax for each property. The
County Auditor also collects all special assessments, except for certain prepayments paid directly to
the City.
The County Auditor submits the list of taxes and special assessments to be collected on each parcel
of property to the County Treasurer in January of each year.
3. Inventories
Inventories are valued at cost, which approximates market, using the first in, first out (FIFO)
method. Inventory consists of expendable supplies held for consumption. Inventories of
governmental funds are recorded as expenditures when consumed rather than when purchased.
Inventory – land held for resale represents land owned by the City with the intent to sell to
developers. This land is recorded at the lesser of historical cost or expected net realizable value.
4. Prepaid Items
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as
prepaid items in both government-wide and fund financial statements. Prepaid items are recorded as
an expenditure at the time of consumption.
33
City of Mendota Heights
Notes to Financial Statements
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Equity
(Continued)
5. Capital Assets
Capital assets, which include property, plant, equipment, intangible, and infrastructure assets (e.g.,
roads, sidewalks, easements, and similar items), are reported in the applicable governmental or
business-type activities columns in the government-wide financial statements. Capital assets are
defined by the City as assets with an initial, individual cost of more than $5,000, and an estimated
useful life in excess of one year. Such assets are recorded at historical cost or estimated historical
cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date
of donation.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially
extend assets lives are not capitalized.
Property, plant, and equipment of the City are depreciated using the straight-line method over the
following estimated useful lives:
Assets Years
Buildings 15-100
Other improvements 10-40
Machinery and equipment 3-25
Infrastructure 30-100
6. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate section for
deferred outflows of resources. This separate financial statement element represents a consumption
of net position that applies to a future period(s) and so will not be recognized as an outflow of
resources (expense/expenditure) until that time. The City presents deferred outflows of resources on
the Statements of Net Position for deferred outflows of resources related to pensions and OPEB for
various estimate differences that will be amortized and recognized over future years.
In addition to liabilities, the statement of financial position and fund financial statements will
sometimes report a separate section for deferred inflows of resources. This separate financial
statement element represents an acquisition of net position that applies to a future period(s) and so
will not be recognized as an inflow of resources (revenue) until that time. The City has two items
that qualify for reporting in this category. The governmental funds report unavailable revenues from
three sources: property taxes, special assessments, and grants. These amounts are deferred and
recognized as an inflow of resources in the period that the amounts become available. The City
presents deferred inflows of resources on the Statements of Net Position for deferred inflows of
resources related to pensions and OPEB for various estimate differences that will be amortized and
recognized over future years.
34
City of Mendota Heights
Notes to Financial Statements
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Equity
(Continued)
7. Compensated Absences\Severance
The City allows employees to accrue vacation based on years of service to carry over to the next
year. Accrued vacation shall be used in the year following the year which said time is earned and
any time accrued will be paid out at termination. At the end of the year the vacation balance cannot
exceed 200 hours.
All permanent full-time employees accrue personal leave at the rate of 4 hours per month, to a
maximum of 320 hours. Any balances in excess of 320 hours will be converted to cash
compensation or additional vacation time at a ratio of 50%.
All compensated absences pay is accrued when incurred in the government-wide and proprietary
fund financial statements. A liability for these amounts is reported in governmental funds only if
they have matured as a result of employee termination or similar circumstances. These liabilities are
paid by the governmental fund the employee provided most of its service to. The unused vacation
and sick leave of the proprietary funds is included in accrued liabilities of the respective fund.
8. Long-Term Obligations
In the government-wide financial statements, and proprietary fund types in the fund financial
statements, long-term debt and other long-term obligations are reported as liabilities in the applicable
governmental activities, business-type activities, or proprietary fund type Statement of Net Position.
Bond premiums and discounts are deferred and amortized over the life of the bonds using the
straight-line method. Bonds payable are reported net of the applicable bond premium or discount.
In the fund financial statements, governmental fund types recognize bond premiums and discounts,
as well as bond issuance costs, during the current period. The face amount of debt issued is reported
as other financing sources. Premiums received on debt issuances are reported as other financing
sources while discounts on debt issuances are reported as other financing uses. Issuance costs,
whether or not withheld from the actual debt proceeds received, are reported as debt service
expenditures.
9. Pensions
For purposes of measuring the net pension liability, deferred outflows/inflows of resources, and
pension expense, information about the fiduciary net position of the Public Employees Retirement
Association (PERA) and the relief association and additions to/deductions from PERA's and the
relief association's fiduciary net position have been determined on the same basis as they are
reported by PERA and the relief association except that PERA's fiscal year end is June 30. For this
purpose, plan contributions are recognized as of employer payroll paid dates and benefit payments
and refunds are recognized when due and payable in accordance with the benefit terms. Investments
are reported at fair value.
35
City of Mendota Heights
Notes to Financial Statements
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Equity
(Continued)
10. Fund Equity
a. Classification
In the fund financial statements, governmental funds report fund classifications that comprise a
hierarchy based primarily on the extent to which the City is bound to honor constraints on the
specific purpose for which amounts in those funds can be spent.
Nonspendable Fund Balance – These are amounts that cannot be spent because they are not
in spendable form or they are legally or contractually required to be maintained intact.
Restricted Fund Balance – These are amounts that are restricted to specific purposes either by
a) constraints placed on the use of resources by creditors, grantors, contributors, or laws or
regulations of other governments or b) imposed by law through constitutional provisions or
enabling legislation.
Committed Fund Balance – These are amounts that can only be used for specific purposes
pursuant to constraints imposed by the City Council (highest level of decision making
authority) through resolution.
Assigned Fund Balance – These are amounts that are constrained by the City's intent to be
used for specific purposes but are neither restricted nor committed. Assignments are made by
the City's Administrator or Finance Director based on the City Council's direction.
Unassigned Fund Balance – These are residual amounts in the General Fund not reported in
any other classification. The General Fund is the only fund that can report a positive
unassigned fund balance. Other funds would report a negative unassigned fund balance
should the total of nonspendable, restricted and committed fund balances exceed the total net
resources of that fund.
b. Minimum Fund Balance
The City will strive to maintain a General Fund unassigned fund balance of 75% of the following
year's budgeted operating expenditures.
11. Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted
in the United States of America requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the
date of the financial statements. Estimates also affect the reported amounts of revenue and
expenditures/expense during the reporting period. Actual results could differ from those estimates.
36
City of Mendota Heights
Notes to Financial Statements
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
E. Budgetary Information
The City Council adopts an annual budget for the General Fund and certain special revenue and capital
project funds. The amounts shown in the financial statements as "budget" represent the original
budgeted amount and all revisions made during the year. The City follows these procedures in
establishing the budgetary data reflected in the financial statements:
1. The City Administrator prepares and presents to the City Council a proposed operating budget
for the year commencing the following January 1. The operating budget included proposed
expenditures and means of financing them.
2. Public hearings are conducted to obtain taxpayer comments.
3. The City Council deliberates on and adopts the budget on a basis consistent with accounting
principles generally accepted in the United States of America and legally enacts the budget by
passage of a resolution.
4. Formal budgetary integration is employed as a management control device during the year.
5. The City Council must approve any budget appropriation transfers between departments and any
increases in budget appropriations to the extent actual revenues exceed estimated revenues.
6. Reported budget amounts are as originally adopted or as amended by City Council approved
supplemental appropriations and budget transfers.
Annual appropriations lapse at year-end. No revisions were made to the budgets during the year.
Note 2 – STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
A. Deficit Fund Balances
The following funds had deficit fund balances at December 31, 2020:
Street Capital Projects 263,750$
Fire Hall Remodel 151,860
Other Nonmajor Capital Projects Fund
Infrastructure Reserve 4,552
Special Assessment Capital Project 325,646
TIF District No. 2 8,169
NOTE 3 – DEPOSITS AND INVESTMENTS
Cash balances of the City's funds are combined (pooled) and invested to the extent available in various
investments authorized by Minnesota Statutes. Each fund's portion of this pool (or pools) is displayed on
the financial statements as "cash and cash equivalents" or "investments." For purposes of identifying risk
of investing public funds, the balances and related restrictions are summarized below.
A. Deposits
In accordance with applicable Minnesota Statutes, the City maintains deposits at depository banks
authorized by the City Council.
37
City of Mendota Heights
Notes to Financial Statements
NOTE 3 – DEPOSITS AND INVESTMENTS (CONTINUED)
A. Deposits (Continued)
In accordance with applicable Minnesota Statutes, the City maintains deposits at depository banks
authorized by the City Council.
Custodial Credit Risks – Deposits: For deposits, this is the risk that in the event of bank failure, the
City's deposits may not be returned to it. The City addresses custodial credit risk by having the authority
from the City Council to maintain deposits with various financial institutions that are members of the
Federal Reserve System. The City's policy states all deposits must be collateralized in compliance with
Minnesota Statutes 118A. As of December 31, 2020, the City's bank balance was not exposed to
custodial credit risk because it was insured through the Federal Deposit Insurance Corporation (FDIC)
and fully collateralized with securities held by the pledging financial institution's trust department or
agent in the City's name.
As of December 31, 2020, the City had deposits as follows:
Checking 183,824$
Certificates of deposit 14,280
Total deposits 198,104$
B. Investments
As of December 31, 2020, the City had the following investments:
Fair
Credit Value Less Than 1 - 5
Investment Type Ratings 12/31/20 1 Year Years
Negotiable CD's NR 5,974,689$ 3,947,006$ 2,027,683$
US Government Securities AAA 714,969 - 714,969
Money Market Funds NR 14,527,607 14,527,607 -
Total 21,217,265$ 18,474,613$ 2,742,652$
Investment Maturities
Credit Risk: This is the risk that an issuer or other counterparty to an investment will not fulfill its
obligations. State law limits investments in commercial paper and corporate bonds to be in the top two
ratings issued by nationally recognized statistical rating organizations. The City's investment policy
addresses credit quality by allowing the City to invest only in instruments permitted by Minnesota
Statutes 118A.04-05.
Concentration of Credit Risk: This is the risk of loss attributed to the magnitude of an investment in a
single issuer. The City's policy states the City will attempt to diversify its investments according to type
and maturity. The policy states the portfolio will contain both short-term and long-term investments and
will attempt to match its investments with anticipated cash flow requirements.
38
City of Mendota Heights
Notes to Financial Statements
NOTE 3 – DEPOSITS AND INVESTMENTS (CONTINUED)
B. Investments (Continued)
Custodial Credit Risk – Investments: For an investment, this is the risk that in the event of the failure of
the counterparty, the City will not be able to recover the value of its investments or collateral securities
that are in the possession of an outside party. The City's investment policy states that to ensure safety
when considering an investment it is verified to make certain funds in excess of insurance are not made
at the same institution. The City's brokers carry SIPC and private insurance to cover the City's
investment holdings; however, given the size of the City's portfolio in relation to the insurance, it is
unlikely the City would receive the full value of their investments upon default of the counterparty.
Interest Rate Risk: This is the risk that market values of securities in a portfolio would decrease due to
changes in market interest rates. As a means of limiting its exposure to fair value losses arising from
rising interest rates, the City's investment policy states the City will hold investments with laddered
maturities so that funds become available on a regular schedule.
The City has the following recurring fair value measurements as of December 31, 2020:
$2,143,940 of investments are valued using calculated Net Asset Value (Level 1 inputs)
$19,073,852 of investments are valued using a matrix pricing model (Level 2 inputs)
C. Deposits and Investments
The following is a summary of total deposits and investments:
Deposits (Note 3. A.) 198,104$
Investments (Note 3.B.) 21,217,265
Petty cash 900
Total cash and investments 21,416,269$
Deposits and investments are presented in the December 31, 2020, basic financial statements as follows:
Statement of Net Position
Cash and investments 21,416,269$
39
City of Mendota Heights
Notes to Financial Statements
NOTE 4 – INTERFUND ACTIVITIES
A. Interfund Receivables and Payable
The following is a summary of the City's due to/due from other funds at December 31, 2020:
Fund Due to Due from Reason
Special assessment capital project 180,716$ -$ Cash deficit
Street capital projects 63,317 - Cash deficit
TIF District No. 2 8,169 Cash deficit
Pre-1998 Non-Increment - 8,169 Cash deficit
Water tower capital project - 244,033 Cash deficit
Total 252,202$ 252,202$
The balances above will be repaid as financing becomes available.
B. Interfund Transfers
The composition of interfund transfers as of December 31, 2020, was as follows:
Transfers In
Street Other Storm
Capital Governmental Water
General Projects Funds Utility Total
Transfers out
General -$ -$ -$ 179,120$ -$ 17,540$ 196,660$
Special assessments
debt service 22,250 1,795,000 1,586,124 - - - 3,403,374
Street capital projects - - - - 37,202 - 37,202
Other governmental
funds 4,500 - - 55,398 - - 59,898
Sewer utility 11,150 - - - - - 11,150
Storm Water Utility 9,650 - 282,118 - - - 291,768
Total 47,550$ 1,795,000$ 1,868,242$ 234,518$ 37,202$ 17,540$ 4,000,052$
Internal
Service Funds
Special
Assessments
Debt Service
The purpose of the above transfers is to distribute bond proceeds and to provide funding for capital
improvement projects, capital outlay, and operating purposes.
40
City of Mendota Heights
Notes to Financial Statements
NOTE 5 – CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2020, was as follows:
Balance Increases Decreases Balance
Governmental activities
Capital assets not being
depreciated
Land and improvements 8,682,370$ 107,800$ -$ 8,790,170$
Construction in progress 7,024,824 6,731,804 2,630,296 11,126,332
Total capital assets
not being depreciated 15,707,194 6,839,604 2,630,296 19,916,502
Capital assets being
depreciated
Buildings and structures 4,763,741 101,942 - 4,865,683
Machinery and equipment 6,078,756 236,497 49,822 6,265,431
Other improvements 2,454,383 432,338 - 2,886,721
Infrastructure 35,796,699 2,053,928 - 37,850,627
Total capital assets
being depreciated 49,093,579 2,824,705 49,822 51,868,462
Less accumulated depreciation for
Buildings and structures 3,767,582 83,488 - 3,851,070
Machinery and equipment 3,719,615 320,618 47,704 3,992,529
Other improvements 1,795,790 79,581 - 1,875,371
Infrastructure 19,163,665 1,464,832 - 20,628,497
Total accumulated
depreciation 28,446,652 1,948,519 47,704 30,347,467
Total capital assets being
depreciated, net 20,646,927 876,186 2,118 21,520,995
Governmental activities capital
assets, net 36,354,121$ 7,715,790$ 2,632,414$ 41,437,497$
41
City of Mendota Heights
Notes to Financial Statements
NOTE 5 – CAPITAL ASSETS (CONTINUED)
Beginning Ending
Balance Increases Decreases Balance
Business-type activities
Capital assets not being
depreciated
Construction in progress 217,421$ 26,616$ 244,037$ -$
Capital assets being
depreciated
Machinery and equipment 214,811 262,686 - 477,497
Sewer main lines and storm sewers 19,944,127 431,835 - 20,375,962
Total capital assets
being depreciated 20,158,938 694,521 - 20,853,459
Less accumulated depreciation for
Machinery and equipment 126,414 29,098 - 155,512
Sewer main lines and storm sewers 5,771,274 223,097 - 5,994,371
Total accumulated
depreciation 5,897,688 252,195 - 6,149,883
Total capital assets being
depreciated, net 14,261,250 442,326 - 14,703,576
Business-type activities capital
assets, net 14,478,671$ 468,942$ 244,037$ 14,703,576$
Depreciation expense was charged to functions/programs of the City as follows:
Governmental activities
General government 151,112$
Public safety 96,678
Public works 1,664,223
Internal service funds 36,506
Total depreciation expense - governmental activities 1,948,519$
Business-type activities
Sewer utility 200,912$
Storm water utility 51,283
Total depreciation expense - business-type activities 252,195$
42
City of Mendota Heights
Notes to Financial Statements
NOTE 6 – LONG-TERM DEBT
A. G.O. Bonds
The City issues G.O. bonds to provide for financing street improvements, major capital equipment
purchases and utility improvements. Debt service is funded through property taxes, special assessments,
and utility charges.
G.O. bonds are direct obligations and pledge the full faith and credit of the City.
B. Components of Long-Term Liabilities
Interest Original Final Principal Due Within
Rates Issue Maturity Outstanding One Year
Long-term liabilities
Government activities
G.O. Improvement Bonds, including
Refunding Bonds
G.O. Improvement Bonds of 2012 2.00%-2.70% 2,630,000$ 02/01/32 2,075,000$ 2,075,000$
G.O. Improvement Bonds of 2013 2.00%-4.00% 1,685,000 02/01/34 1,080,000 135,000
G.O. Improvement Bonds, Series 2014A 0.85%-3.40% 1,030,000 02/01/35 710,000 75,000
G.O. Refunding Bond, Series 2014B 1.50%-3.00% 885,000 02/01/27 485,000 65,000
G.O Improvement Bonds 2015A .90%-3.00% 1,200,000 02/01/36 965,000 75,000
G.O. Refunding Bond, Series 2015C 2.00%-2.50% 1,995,000 02/01/28 1,320,000 165,000
G.O. Reconstruction Bonds, Series 2016A 1.00%-2.50% 1,020,000 02/01/37 870,000 80,000
G.O. Improvement Bonds of 2017A 2.00%-2.50% 1,340,000 02/01/30 1,285,000 120,000
G.O. Improvement Bonds of 2018A 3.00%-4.00% 1,080,000 02/01/30 1,080,000 95,000
G.O. Improvement Bonds of 2019A 2.00%-3.00% 3,035,000 02/01/31 3,035,000 295,000
G.O. Improvement Bonds of 2020A 1.20%-2.00% 3,295,000 02/01/32 3,295,000 -
Total improvement bonds 16,200,000 3,180,000
G.O. Bonds, including refunding bonds
G.O. Refunding Bonds 2015B 2.00%-3.00% 1,475,000 02/01/23 665,000 215,000
G.O. Capital Improvement Plan Bonds 3.00%-4.00% 7,000,000 02/01/35 7,000,000 360,000
Total G.O. Bonds 7,665,000 575,000
Net Premium on Bonds 838,465 -
Compensated absences payable 646,196 400,225
Total governmental activities 25,349,661 4,155,225
Business-type activities
Compensated absences payable 37,549 20,203
Total all long-term liabilities 25,387,210$ 4,175,428$
Long-term bonded indebtedness listed above were issued to finance acquisition and construction of
capital facilities or to refinance (refund) previous bond issues.
Debt Service Funds will be used to pay general government principal and interest liabilities. The
General Fund and Sewer Utility Fund will pay for the corresponding compensated absence liability.
43
City of Mendota Heights
Notes to Financial Statements
NOTE 6 – LONG-TERM DEBT (CONTINUED)
C. Changes in Long-Term Liabilities
Long-term liability activity for the year ended December 31, 2020, was as follows:
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Governmental activities
Bonds payable
G.O. Improvements Bonds 15,165,000$ 3,295,000$ 2,260,000$ 16,200,000$ 3,180,000$
G.O. Bonds 7,960,000 - 295,000 7,665,000 575,000
Unamortized premium 741,799 165,068 68,402 838,465 -
Compensated absences payable 570,447 454,301 378,552 646,196 400,225
Total governmental
activities 24,437,246 3,914,369 3,001,954 25,349,661 4,155,225
Business-type activities
Compensated absences payable 33,687 24,653 20,791 37,549 20,203
Total government 24,470,933$ 3,939,022$ 3,022,745$ 25,387,210$ 4,175,428$
D. Long-Term Debt
The annual requirements to amortize all bonded debt outstanding follows:
Year Ending
December 31, Principal Interest Total Principal Interest Total
2021 3,180,000$ 358,725$ 3,538,725$ 575,000$ 242,300$ 817,300$
2022 1,360,000 298,053 1,658,053 595,000 222,150 817,150
2023 1,495,000 263,411 1,758,411 620,000 200,100 820,100
2024 1,455,000 227,835 1,682,835 405,000 180,750 585,750
2025 1,470,000 191,613 1,661,613 420,000 164,250 584,250
2026-2030 5,690,000 486,404 6,176,404 2,335,000 588,900 2,923,900
2031-2035 1,440,000 76,953 1,516,953 2,715,000 208,575 2,923,575
2036-2038 110,000 2,149 112,149 - - -
Total 16,200,000$ 1,905,143$ 18,105,143$ 7,665,000$ 1,807,025$ 9,472,025$
Governmental Activities
G.O. BondsImprovement Bonds
In November 2020, the City issued $3,295,000 of General Obligation Refunding Bonds Series 2020A. A
portion of the proceeds of this issue were used to redeem the 2022 through 2032 maturities of the City's
2012A G.O Bonds on February 1. 2021. These refunding transactions will reduce the City's total future
debt service payments by $350,743 and result in present value savings of $325,581.
44
City of Mendota Heights
Notes to Financial Statements
NOTE 7 – OPERATING LEASE
The City leases 10 squad cars under a noncancelable operating lease.
The following is a schedule by years of future minimum payments required under the leases as of
December 31, 2020:
Year Ending
December 31,
2021 41,262$
2022 25,180
2023 14,166
Total 80,608$
NOTE 8 – CONDUIT DEBT
From time-to-time, the City has issued Industrial Development and Housing Mortgage Revenue Bonds
in accordance with the Minnesota Municipal Industrial Development Act. These obligations are issued
to provide financial assistance to private-sector entities for the acquisition and construction of industrial
and commercial facilities deemed to be in the public interest. The obligations are secured by the
property financed and are payable solely from payments received on the underlying mortgage loans.
Upon repayment of the obligations, ownership of the acquired facilities transfers to the private-sector
entity served by the debt issuance. Neither the City, the State of Minnesota, nor any political subdivision
thereof, is obligated in any manner for the repayment of the obligations. Accordingly, the Bonds are not
reported as liabilities in the accompanying financial statements.
The aggregate amount of all conduit debt obligations outstanding as of December 31, 2020, was
$15,993,997.
45
City of Mendota Heights
Notes to Financial Statements
NOTE 9 – FUND BALANCE DETAIL
Fund equity balances are classified below to reflect the limitations and restrictions of the respective
Funds.
Special Street Other
General Assessment
Capital Fire Hall Governmental
Fund Debt Service Projects Remodel Funds Total
Nonspendable
Inventories 18,280$ -$ -$ -$ -$ 18,280$
Prepaid items 335,685 - - - 5,856 341,541
Restricted
Park dedication fees - - - - 765,150 765,150
Street light maintenance - - - - 34,873 34,873
Debt service - 4,820,902 - - 942,643 5,763,545
Committed
Water system maintenance - - - - 676,889 676,889
Par 3 golf course - - - - 75,869 75,869
Emergency preparedness
and civil defense - - - - 148,344 148,344
Assigned
Capital projects - - - - 2,471,087 2,471,087
Unassigned 10,330,546 - (263,750) (151,860) (338,367) 9,576,569
Total 10,684,511$ 4,820,902$ (263,750)$ (151,860)$ 4,782,344$ 19,872,147$
NOTE 10 – RISK MANAGEMENT
The City purchases commercial insurance coverage through the League of Minnesota Cities Insurance
Trust (LMCIT) with other cities in the state which is a public entity risk pool currently operating as a
common risk management and insurance program. The City pays an annual premium to the LMCIT for
its insurance coverage. The LMCIT is self-sustaining through commercial companies for excess claims.
The City is covered through the pool for any claims incurred but unreported, however, retains risk for
the deductible portion of its insurance policies. The amount of these deductibles is considered
immaterial to the financial statements.
There were no significant reductions in insurance or settlements in excess of insurance coverage for any
of the past three years.
Workers compensation coverage is provided through a pooled self-insurance program through the
LMCIT. The City pays an annual premium to LMCIT. For workers compensation, the City is not subject
to a deductible. The City's workers compensation coverage is not retrospectively rated. However, the
actual premium is adjusted based on audited payroll amounts.
NOTE 11 – PENSION PLANS
The City participates in various pension plans. Total pension expense for the year ended December 31,
2020, was $330,962. The components of pension expense are noted in the following plan summaries.
46
City of Mendota Heights
Notes to Financial Statements
NOTE 11 – PENSION PLANS (CONTINUED)
The General Fund and Sewer and Stormwater Funds typically liquidate the liability related to the
pensions.
Public Employees' Retirement Association
A. Plan Description
The City participates in the following cost-sharing multiple-employer defined benefit pension plans
administered by PERA. PERA's defined benefit pension plans are established and administered in
accordance with Minnesota Statutes, Chapters 353 ad 356. PERA's defined benefit pension plans are tax
qualified plans under Section 401(a) of the Internal Revenue Code.
General Employees Retirement Plan
All full-time and certain part-time employees of the City are covered by the General Employees Plan.
General Employees Plan members belong to the Coordinated Plan. Coordinated Plan members are
covered by Social Security.
Public Employees Police and Fire Plan
The Police and Fire Plan, originally established for police officers and firefighters not covered by a local
relief association, now covers all police officers and firefighters hired since 1980. Effective July 1, 1999,
the Police and Fire Plan also covers police officers and firefighters belonging to a local relief association
that elected to merge with and transfer assets and administration to PERA.
B. Benefits Provided
PERA provides retirement, disability, and death benefits. Benefit provisions are established by state
statute and can only be modified by the state Legislature. Vested, terminated employees who are entitled
to benefits but are not receiving them yet, are bound by the provisions in effect at the time they last
terminated their public service.
General Employees Plan Benefits
General Employees Plan benefits are based on a member's highest average salary for any 5 successive
years of allowable service, age, and years of credit at termination of service. Two methods are used to
compute benefits for PERA's Coordinated Plan members. Members hired prior to July 1, 1989, receive
the higher of Method 1 or Method 2 formulas. Only Method 2 is used for members hired after June 30,
1989. Under Method 1, the accrual rate for a Coordinated members is 1.2% for each of the first 10 years
of service and 1.7% for each additional year. Under Method 2, the accrual rate for Coordinated members
is 1.7% for all years of service. For members hired prior to July 1, 1989, a full annuity is available when
age plus years of service equal 90 and normal retirement age is 65. For members hired on or after July 1,
1989, normal retirement age is the age for unreduced Social Security benefits capped at 66.
47
City of Mendota Heights
Notes to Financial Statements
NOTE 11 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
B. Benefits Provided (Continued)
General Employees Plan Benefits (Continued)
Benefit increases are provided to benefit recipients each January. Beginning in 2019, the postretirement
increase is equal to 50% of the cost-of-living adjustment (COLA) announced by the SSA, with a
minimum increase of at least 1% and a maximum of 1.5%. Recipients that have been receiving the
annuity or benefit for at least a full year as of the June 30 before the effective date of the increase will
receive the full increase. For recipients receiving the annuity or benefit for at least one month but less
than a full year as of the June 30 before the effective date of the increase will receive a reduced prorated
increase. For members retiring on January 1, 2024, or later, the increase will be delayed until normal
retirement age (age 65 if hired prior to July 1, 1989, or age 66 for individuals hired on or after July 1,
1989). Members retiring under Rule of 90 are exempt from the delay to normal retirement.
Police and Fire Plan Benefits
Benefits for the Police and Fire Plan members first hired after June 30, 2010, but before July 1, 2014,
vest on a prorated basis from 50% after five years up to 100% after 10 years of credited service. Benefits
for Police and Fire Plan members first hired after June 30, 2014, vest on a prorated basis from 50% after
10 years up to 100% after 20 years of credited service. The annuity accrual rate is 3% of average salary
for each year of service. For Police and Fire Plan members who were first hired prior to July 1, 1989, a
full annuity is available when age plus years of service equal at least 90.
Benefit increases are provided to benefit recipients each January. Beginning in 2019, the postretirement
increase was fixed at 1%. Recipients that have been receiving the annuity or benefit for at least 36
months as of the June 30 before the effective date of the increase will receive the full increase. For
recipients receiving the annuity or benefit for at least 25 months but less than 36 months as of the June
30 before the effective date of the increase will receive a reduced prorated increase.
C. Contributions
Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. Contribution
rates can only be modified by the state Legislature.
General Employees Fund Contributions
Coordinated Plan members were required to contribute 6.5% of their annual covered salary in calendar
year 2020 and the City was required to contribute 7.5% for Coordinated Plan members. The City's
contributions to the General Employees Fund for the year ended December 31, 2020, were $166,196.
The City's contributions were equal to the required contributions as set by state statute.
48
City of Mendota Heights
Notes to Financial Statements
NOTE 11 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
C. Contributions (Continued)
Police and Fire Fund Contributions
Police and Fire member's contribution rates increased from 11.3% of pay to 11.8% and employer rates
increased from 16.95% to 17.7% on January 1, 2020. The City's contributions to the Police and Fire
Fund for the year ended December 31, 2020, were $344,654. The City's contributions were equal to the
required contributions as set by state statute.
D. Pension Costs
General Employees Fund Pension Costs
At December 31, 2020, the City reported a liability of $1,774,655 for its proportionate share of the
General Employees Fund's net pension liability. The City's net pension liability reflected a reduction due
to the State of Minnesota's contribution of $16 million. The State of Minnesota is considered a non-
employer contributing entity and the State's contribution meets the definition of a special funding
situation. The State of Minnesota's proportionate share of the net pension liability associated with the
City totaled $54,701. The net pension liability was measured as of June 30, 2020, and the total pension
liability used to calculate the net pension liability was determined by an actuarial valuation as of that
date. The City's proportionate share of the net pension liability was based on the City's contributions
received by PERA during the measurement period for employer payroll paid dates from July 1, 2019,
through June 30, 2020, relative to the total employer contributions received from all of PERA's
participating employers. The City's proportionate share was 0.0296% at the end of the measurement
period and 0.0291% for the beginning of the period.
City's proportionate share of the net pension liability 1,774,655$
State of Minnesota's proportionate share of the net pension
liability associated with the City 54,701
Total 1,829,356$
For the year ended December 31, 2020, the City recognized pension expense of $47,603 for its
proportionate share of General Employees Plan's pension expense. Included in the amount, the City
recognized $4,761 as pension expense (and grant revenue) for its proportionate share of the State of
Minnesota's contribution of $16 million to the General Employees Fund.
49
City of Mendota Heights
Notes to Financial Statements
NOTE 11 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
D. Pension Costs (Continued)
General Employees Fund Pension Costs (Continued)
At December 31, 2020, the City reported its proportionate share of the General Employees Plan's
deferred outflows of resources and deferred inflows of resources, related to pensions from the following
sources:
Differences between expected and actual economic experience 15,886$ 6,714$
Changes in actuarial assumptions - 64,510
Net collective difference between projected
and actual investment earnings 35,624 -
Changes in proportion 48,471 14,364
Contributions paid to PERA subsequent
to the measurement date 83,098 -
Total 183,079$ 85,588$
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
The $83,098 reported as deferred outflows of resources related to pensions resulting from City
contributions subsequent to the measurement date will be recognized as a reduction of the net pension
liability in the year ended December 31, 2021. Other amounts reported as deferred outflows and
deferred inflows of resources related to pensions will be recognized in pension expense as follows:
Pension
Expense
Amount
(89,924)$
20,834
40,607
42,876
Total 14,393$
2023
2024
2022
Year Ending
December 31,
2021
50
City of Mendota Heights
Notes to Financial Statements
NOTE 11 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
D. Pension Costs (Continued)
Police and Fire Fund Pension Costs
At December 31, 2020, the City reported a liability of $2,207,154 for its proportionate share of the
Police and Fire Fund's net pension liability. The net pension liability was measured as of June 30, 2020,
and the total pension liability used to calculate the net pension liability was determined by an actuarial
valuation as of that date. The City's proportionate share of the net pension liability was based on the
City's contributions received by PERA during the measurement period for employer payroll paid dates
from July 1, 2019, through June 30, 2020, relative to the total employer contributions received from all
of PERA's participating employers. At June 30, 2020, the City's proportionate share was0.1686% at the
end of the measurement period and 0.1643% for the beginning of the period.
The State of Minnesota also contributed $13.5 million to the Police and Fire Fund in the plan fiscal year
ended June 30, 2020. The contribution consisted of $4.5 million in direct state aid that does meet the
definition of a special funding situation and $9 million in fire state aid that does not meet the definition
of a special funding situation. The $4.5 million direct state aid was paid on October 1, 2019. Thereafter,
by October 1 of each year, the State will pay $9 million to the Police and Fire Fund until full funding is
reached or July 1, 2048, whichever is earlier. The $9 million in fire state aid will continue until the fund
is 90% funded, or until the State Patrol Plan (administered by the Minnesota State Retirement System) is
90% funded, whichever occurs later.
As a result, the State of Minnesota is included as a non-employer contributing entity in the Police and
Fire Retirement Plan Schedule of Employer Allocations and Schedule of Pension Amounts by
Employer, Current Reporting Period Only (pension allocation schedules) for the $4.5 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, 2020, the City recognized
pension expense of $283,359 for its proportionate share of the Police and Fire Plan's pension expense.
Included in this amount, the City recognized $16,110 as pension expense (and grant revenue) for its
proportionate share of the State of Minnesota's contribution of $4.5 million to the Police and Fire Fund.
The State of Minnesota is not included as a non-employer contributing entity in the Police and Fire
Pension Plan pension allocation schedules for the $9 million in fire state aid. The City also recognized
$15,174 for the year ended December 31, 2020, as revenue and an offsetting reduction of the net pension
liability for its proportionate share of the State of Minnesota's on-behalf contributions to the Police and
Fire Fund.
At December 31, 2020, the City reported its proportionate share of the Police and Fire Plan's deferred
outflows of resources and deferred inflows of resources related to pensions from the sources on the
following page.
51
City of Mendota Heights
Notes to Financial Statements
NOTE 11 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
D. Pension Costs (Continued)
Police and Fire Fund Pension Costs (Continued)
Differences between expected and actual economic experience 93,745$ 97,021$
Changes in actuarial assumptions 684,674 1,239,401
Net collective difference between projected
and actual investment earnings 101,553 -
Changes in proportion 142,593 66,886
Contributions paid to PERA subsequent
to the measurement date 172,327 -
Total 1,194,892$ 1,403,308$
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
The $172,327 reported as deferred outflows of resources related to pensions resulting from City
contributions subsequent to the measurement date will be recognized as a reduction of the net pension
liability in the year ended December 31, 2021. Other amounts reported as deferred outflows and inflows
of resources related to pensions will be recognized in pension expense as follows:
Pension
Year Ending Expense
December 31,Amount
2021 (107,372)$
2022 (538,154)
2023 131,034
2024 124,554
2025 9,195
Total (380,743)$
52
City of Mendota Heights
Notes to Financial Statements
NOTE 11 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
E. Actuarial Assumptions
The total pension liability in the June 30, 2020, actuarial valuation was determined using an individual
entry-age normal actuarial cost method and the following actuarial assumptions:
Inflation 2.25 % Per Year 2.50 % Per year
Salary increase 3.00 % Per Year 3.25 % Per year
Investment rate of return 7.50 % 7.50 %
General Employees Fund Police and Fire Fund
Salary increases were based on a service-related table. Mortality rates for active members, retirees,
survivors, and disabilitants for all plans were based on RP 2014 tables for males or females, as
appropriate, with slight adjustments to fit PERA's experience. Cost of living benefit increases after
retirement for retirees are assumed to be 1.25% per year for the General Employees Plan and 1.0% per
year for the Police and Fire Plan.
Actuarial assumptions used in the June 30, 2020, valuation were based on the results of actuarial
experience studies. The most recent four-year experience study in the General Employees Plan was
completed in 2019. The 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 Police and Fire Plan
was completed in 2020. The recommended assumptions for that plan was adopted by the Board and will
be effective with the July 1, 2021, actual valuation if approved by the Legislature.
The following changes in actuarial assumptions occurred in 2020:
General Employees Fund
Changes in Actuarial Assumptions:
The price inflation assumption was decreased from 2.5% to 2.25%.
The payroll growth assumption was decreased from 3.25% to 3.0%.
Assumed salary increase rates were changed as recommended in the June 30, 2019, experience
study. The net effect is assumed rates that average 0.25% less than previous rates.
Assumed rates of retirement were changed as recommended in the June 30, 2019, experience
study. The changes result in more unreduced (normal) retirements and slightly fewer Rule of 90
and early retirements.
Assumed rates of termination were changes as recommended in the June 30, 2019, experience
study. The new rates are based on service and are generally lower than the previous rates for
years 2-5 and slightly higher thereafter.
Assumed rates of disability were changed as recommended in the June 30, 2019, experience
study. The change results in fewer predicted disability retirements for males and females.
53
City of Mendota Heights
Notes to Financial Statements
NOTE 11 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
E. Actuarial Assumptions (Continued)
General Employees Fund (Continued)
Changes in Actuarial Assumptions: (Continued
The base mortality table for healthy annuitants and employees was changed from the RP-2014
table to the Pub-2010 General Mortality table, with adjustments. The base mortality table for
disabled annuitants was changed from the RP-2014 disabled annuitant mortality table to the
Pub-2010 General/Teacher disabled annuitant mortality table, with adjustments.
Changes in Plan Provisions:
Augmentation for current privatized members was reduced to 2.0% for the period July 1, 2020
through December 31, 2023, and 0.0% thereafter. Augmentation was eliminated for
privatizations occurring after June 30, 2020.
Police and Fire Fund
Changes in Actuarial Assumptions:
The mortality projection scale was changed from MP-2018 to MP-2019.
Changes in Plan Provisions:
There have been no changes since the prior valuation.
The State Board of Investment, which manages the investments of PERA, prepares an analysis of the
reasonableness on a regular basis of the long-term expected rate of return using a building-block method
in which best-estimate ranges of expected future rates of return are developed for each major asset class.
These ranges are combined to produce an expected long-term rate of return by weighting the expected
future rates of return by the target asset allocation percentages. The target allocation and best estimates
of geometric real rates of return for each major asset class are summarized in the following table:
Domestic stocks 35.5 % 5.10 %
International stocks 17.5 5.30
Bonds (fixed income) 20.0 0.75
Alternative assets (private markets) 25.0 5.90
Cash 2.0 0.00
Total 100 %
Target Allocation Long-Term Asset Class
54
City of Mendota Heights
Notes to Financial Statements
NOTE 11 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
F. Discount Rate
The discount rate used to measure the total pension liability in 2020 was 7.5%. The projection of cash
flows used to determine the discount rate assumed that contributions from Plan members and employers
will be made at rates set in Minnesota Statutes. Based on these assumptions, the fiduciary net positions
of the General Employees Fund and the Police and Fire Fund were projected to be available to make all
projected future benefit payments of current plan members. Therefore, the long-term expected rate of
return on pension plan investments was applied to all periods of projected benefit payments to determine
the total pension liability.
G. Pension Liability Sensitivity
The following presents the City's proportionate share of the net pension liability 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:
1% Decrease in 1% Increase in
City's proportionate share of
the General Employees Fund
net pension liability 2,844,157$ 1,774,655$ 892,402$
1% Decrease in 1% Increase in
City's proportionate share of
the Police and Fire Fund
net pension liability 4,414,246$ 2,207,154$ 381,173$
Discount Rate
(6.5%)
Discount Rate
(7.5%)
Discount Rate
(8.5%)
Discount Rate
(6.5%)
Discount Rate
(7.5%)
Discount Rate
(8.5%)
H. Pension Plan Fiduciary Net Position
Detailed information about each pension plan's fiduciary net position is available in a separately-issued
PERA financial report that includes financial statements and required supplementary information. That
report may be obtained on the Internet at www.mnpera.org.
Defined Contribution Pension Plan – Volunteer Fire Fighter's Relief Association
The Mendota Heights Firefighter's Relief Association is the administrator of a single employer defined
benefit pension plan established to provide benefits for members of the Mendota Heights Fire
Department per Minnesota State Statutes.
55
City of Mendota Heights
Notes to Financial Statements
NOTE 11 – PENSION PLANS (CONTINUED)
Defined Contribution Pension Plan – Volunteer Fire Fighter's Relief Association (Continued)
The Association issues a publicly available financial report that includes financial statements and
required supplementary information. That report may be obtained by writing to Mendota Heights
Firefighter's Association, 2121 Dodd Road Mendota Heights, Minnesota 55120 or by calling 651-249-
7640.
The City contributes to the Mendota Heights Volunteer Fire Department Relief Association (the
"Association") that provides pension benefits to its members under a single employer defined
contribution plan. Since fire department members are volunteers, contributions to the Association are
not based on payroll but rather on years of active service. All active firefighters may apply for
membership in the Association and shall become a member immediately upon approval by the Board of
Trustees.
Under an Annual Contribution Agreement, the City's contribution to the Association is determined by
multiplying $5,000 by the number of years of active service completed by members of the Association for
the plan year, prorated by months for members who did not complete a full year of active service. The City
also contributes a portion of the Association's administrative fees each year. For 2020, the total
contribution was $152,500. Required and actual employer contributions to the plan during 2020 were
$152,500. In addition, the City passes through state aid allocated to the plan in accordance with state
statutes. For 2020, the state aid was $111,759. Members of the Association are not allowed to make
voluntary contributions to the plan.
Members are not vested in their accounts until they attain 10 years of active service, at which time they
become 60% vested. Thereafter, the vested portion of their accounts increases by 4% annually until they
achieve 100% vesting after having served for 20 years.
Plan provisions were established and may only be amended by amendments to the Association bylaws
which require a majority vote by the Board of Trustees.
NOTE 12 – POST EMPLOYMENT HEALTH CARE PLAN
A. Plan Description
The City provides a single-employer defined benefit healthcare plan to eligible retirees
(as required by Minnesota Statue 471.61) and police or firefighters disabled in the line of duty (as
required by Minnesota Statute 299A.465). The required contributions are based on projected pay-as-
you-go financing requirements. As of December 31, 2020, there were 13 retirees participating in the
City's healthcare plan.
B. Benefits Provided
Retirees and their spouses contribute to the healthcare plan at the same rate as City employees. This
results in the retirees receiving an implicit rate subsidy. Contribution requirements are established by the
City, based on the contract terms with Blue Cross Blue Shield and Delta Dental.
56
City of Mendota Heights
Notes to Financial Statements
NOTE 12 – POST EMPLOYMENT HEALTH CARE PLAN (CONTINUED)
C. Contributions
The City makes direct subsidy payments towards retiree health insurance premiums. For the year 2020,
the City contributed $116,084.
D. Members
As of December 31, 2020, the following were covered by the benefit terms:
Inactive employees or beneficiaries currently receiving benefits 13
Active employees 40
Total 53
E. Actuarial Assumptions
The total OPEB liability was determined by an actuarial valuation as of January 1, 2020, using the
following actuarial assumptions, applied to all periods included in the measurement, unless otherwise
specified:
Investment rate of return 2.90%, net of investment expense
Inflation 2.50%
Healthcare cost trend increases
Mortality assumption Pub-2010 Public Retirement Plans Headcount-
Weighted Mortality Tables (General, Safety)
with MP-2019 Generational Improvement
Scale
Key Methods and Assumptions Used in Valuation of Total OPEB Liability
6.50% initially, grading to 5% over six years
and then to 4.00% over the next 48 years
The actuarial assumptions used in the January 1, 2020, valuation were based on the results of an
actuarial experience study for the period January 1, 2019 – January 1, 2020.
The discount rate used to measure the total OPEB liability was 2.90% based on 20 year municipal G.O.
Bonds.
57
City of Mendota Heights
Notes to Financial Statements
NOTE 12 – POST EMPLOYMENT HEALTH CARE PLAN (CONTINUED)
F. Total OPEB Liability
The City's total OPEB liability of $842,740 was measured as of January 1, 2020, and was determined by
an actuarial valuation as of that date.
Total
OPEB
Liability
Balance at January 1, 2019 868,121$
Changes for the year
Service cost 17,009
Interest 31,249
Changes of assumptions 30,297
Differences between expected and actual experience 22,848
Benefit payments (126,784)
Net changes (25,381)
Balance at January 1, 2020 842,740$
Changes of assumptions and other inputs reflect a change in the discount rate from 3.80% in 2019 to
2.90% in 2020.
G. OPEB Liability Sensitivity
The following presents the City's total OPEB liability calculated using the discount rate of 2.90% as well
as the liability measured using 1% lower and 1% higher than the current discount rate.
1% decrease Current 1% increase
(1.90%) (2.90%) (3.90%)
879,578$ 842,740$ 808,173$
Total OPEB Liability/(Asset)
The following presents the total OPEB liability of the City, as well as what the City's total OPEB
liability would be if it were calculated using healthcare cost trend rates that are 1% lower and 1% higher
than the current healthcare cost trend rates.
58
City of Mendota Heights
Notes to Financial Statements
NOTE 12 – POST EMPLOYMENT HEALTH CARE PLAN (CONTINUED)
G. OPEB Liability Sensitivity (Continued)
1% decrease Current 1% increase
806,373$ 842,740$ 882,777$
Total OPEB Liability/(Asset)
(5.50% decreasing
to 3.0%)
(6.50% decreasing
to 4.0%)
(7.50% decreasing
to 5.0%)
H. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to OPEB
For the year ended December 31, 2020, the City recognized OPEB expense of $52,395. At
December 31, 2020, the Distract reported deferred outflows of resources and deferred inflows of
resources related to OPEB from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Liability losses 19,992$ -$
Assumption changes 26,509 15,039
Subsequent contributions 116,084 -
Total 162,585$ 15,039$
Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB
will be recognized in OPEB expense as follows:
Expense
Amount
4,137$
4,137
4,137
4,137
4,137
10,777
31,462$
Thereafter
Total
Year Ending
December 31,
2021
2022
2023
2024
2025
59
City of Mendota Heights
Notes to Financial Statements
NOTE 13 – JOINT VENTURES
A. Dakota Communications Center
The City is a member of the Dakota Communication Center (DCC). The DCC was created by a joint
powers agreement between Dakota County and several cities. Its purposes include the establishment,
operation, and maintenance of joint law enforcement, fire, EMS and other emergency communications
systems. Members are obligated to pay their proportional share of operating and capital expenditures on
an annual basis. The City paid $250,464 for 2020. Members do not maintain an equity interest other than
if the DCC were to terminate. Withdrawing members forfeit any interest in the DCC. Information
regarding the DCC can be obtained at the website www.mn-dcc.org.
B. Local Government Information Systems Association (LOGIS)
The consortium of approximately 30 government entities provides computerized data processing and
support services to its members. LOGIS is a legally separate entity; the entities appoint a voting majority
of its board, and the consortium is fiscally independent of the City. For 2020, the City paid $261,690 for
computer application support and computer hardware for the City's network. Complete financial
statements of the consortium may be obtained at the LOGIS offices located at 5750 Duluth Street,
Golden Valley, Minnesota 55422.
NOTE 14 – CONTINGENCIES
The City has various claims and litigation that arise in the normal course of business. The City has
evaluated the impact of these items for the December 31, 2020, financial statements and determined they
do not have a material effect on financial position or changes in financial position.
On March 13, 2020, a national emergency was declared for the COVID-19 outbreak in the United States
of America. This event affects the economy and financial markets. The extent of the impact on the City
may be both direct and indirect and will vary based on the duration of the outbreak and various other
factors. An estimate of the financial effect on the City's financial statements at December 31, 2019,
cannot be determined at this time.
NOTE 15 – COMMITED CONTRACTS
At December 31, 2020, the City had commitments of $274,100 for uncompleted construction contracts.
NOTE 16 – TAX INCREMENT FINANCING
The City has entered into a Tax Increment Financing agreement which meet the criteria for disclosure
under Governmental Accounting Standards Board Statement No. 77 Tax Abatement Disclosures. The
City's authority to enter into these agreements comes from Minnesota Statute 469. The City entered into
this agreement for the purpose of redevelopment.
Under this agreement, the City and developer agree on an amount of development costs to be
reimbursed to the developer by the City though tax revenues from the additional taxable value of the
property generated by the development (tax increment). A "pay-as-you-go" note is established for this
amount, on which the City makes payments for a fixed period of time with available tax increment
revenue after deducting for certain administrative costs.
60
City of Mendota Heights
Notes to Financial Statements
NOTE 16 – TAX INCREMENT FINANCING (CONTINUED)
During the year ended December 31, 2020, the City generated $15,655 in tax increment revenue and
made $13,045 in payments to developers.
NOTE 17 – NEW STANDARDS ISSUED BUT NOT YET IMPLEMENTED
GASB Statement No. 87, Leases establishes a single model for lease accounting based on the
foundational principle that leases are financings of the right to use an underlying asset. Under this
statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and
a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing
the relevance and consistency of information about governments' leasing activities. This statement will
be effective for the year ending December 31, 2022.
GASB Statement No. 89, Accounting for Interest Cost Incurred Before the End of a Construction Period
enhances the relevance and comparability of information about capital assets and the cost of borrowing
for a reporting period and simplifies accounting for interest cost incurred before the end of a
construction period. This statement will be effective for the year ending December 31, 2021.
61
REQUIRED SUPPLEMENTARY INFORMATION
December 31, December 31, December 31,
2020 2019 2018
Total OPEB Liability
Service cost 17,009$ 22,733$ 24,002$
Interest 31,249 30,230 31,883
Differenced between expected and actual experience 22,848 - -
Changes of assumptions 30,297 (20,053) -
Benefit payments (126,784) (115,317) (94,257)
Net change in total OPEB liability (25,381) (82,407) (38,372)
Beginning of year 868,121 950,528 988,900
Total OPEB Liability 842,740$ 868,121$ 950,528$
3,359,818$ 3,460,084$ 3,359,305$
25.08% 25.09% 28.30%
Note: Schedule is intended to show ten year trend. Additional years will be reported as they become available.
62
Covered-employee payroll
Net OPEB liability as a percentage of covered-employee payroll
City of Mendota Heights
Schedule of Changes in Total OPEB Liability
and Related Ratios
City's
Covered
Payroll
2015 0.0322% 1,668,771$ -$ 1,668,771$ 1,859,307$ 89.75% 78.19%
2016 0.0315% 2,557,644 33,392 2,591,036 1,954,600 130.85% 68.91%
2017 0.0290% 1,851,341 23,303 1,874,644 1,870,160 98.99% 75.90%
2018 0.0281% 1,558,873 51,096 1,609,969 1,887,853 82.57% 79.53%
2019 0.0291% 1,608,874 49,998 1,658,872 2,058,880 78.14% 80.23%
2020 0.0296% 1,774,655 54,701 1,829,356 2,113,013 83.99% 79.06%
Note: Schedule is intended to show ten year trend. Additional years will be reported as they become available.
For Fiscal
Year Ended
June 30,
City's
Proportion of
the Net
Pension
Liability
(Asset)
City's
Proportionate
Share of the
Net Pension
Liability
(Asset)
State's
Proportionate
Share
(Amount) of
the Net
Pension
Liability
Associated
with the City
City's
Proportionate
Share of the
Net Pension
Liablility and
the State's
Proportionate
Share of the
Net Pension
Liablility
Associated
with the City
City's
Covered
Payroll
City's
Proportionate
Share of the
Net Pension
Liability
(Asset) as a
Percentage of
its Covered
Payroll
Plan
Fiduciary Net
Position as a
Percentage of
the Total
Pension
Liability
2015 0.1530% 1,738,438$ N/A 1,738,438$ 1,359,920 127.8% 86.61%
2016 0.1550% 6,220,420 N/A 6,220,420 1,496,272 415.7% 63.88%
2017 0.1500% 2,011,679 N/A 2,011,679 1,543,389 130.3% 85.43%
2018 0.1527% 1,613,882 N/A 1,613,882 1,609,556 100.3% 88.84%
2019 0.1643% 1,726,959 N/A 1,726,959 1,733,152 99.6% 89.26%
2020 0.1686% 2,207,154 52,363$ 2,259,517 1,902,465 116.0% 87.19%
Note: Schedule is intended to show ten year trend. Additional years will be reported as they become available.
See notes to Required supplementary information.63
Last Ten Years
For Fiscal
Year Ended
June 30,
State's
Proportionate
Share
(Amount) of
the Net
Pension
Liability
Associated
with the City
City's
Proportionate
Share of the
Net Pension
Liablility and
the State's
Proportionate
Share of the
Net Pension
Liablility
Associated
with the City
Public Employees Police and Fire Retirement Fund
of Net Pension Liability
City of Mendota Heights
Schedule of City's Proportionate Share
of Net Pension Liability
Last Ten Years
Schedule of City's Proportionate Share
General Employees Retirement Fund
City's
Proportionate
Share
(Percentage)
of the Net
Pension
Liability
(Asset)
City's
Proportionate
Share
(Amount) of
the Net
Pension
Liability
(Asset)
City's
Proportionate
Share of the
Net Pension
Liability
(Asset) as a
Percentage of
its Covered
Payroll
Plan
Fiduciary Net
Position as a
Percentage of
the Total
Pension
Liability
2015 149,420$ 149,420$ -$ 1,992,267$ 7.50%
2016 139,806 139,806 - 1,864,080 7.50%
2017 137,806 137,806 - 1,837,413 7.50%
2018 146,272 146,272 - 1,950,293 7.50%
2019 157,416 157,416 - 2,098,880 7.50%
2020 166,196 166,196 - 2,215,947 7.50%
Note: Schedule is intended to show ten year trend. Additional years will be reported as they become available.
2015 237,655$ 237,655$ -$ 1,467,006$ 16.20%
2016 245,917 245,917 - 1,518,006 16.20%
2017 251,584 251,584 - 1,552,988 16.20%
2018 266,168 266,168 - 1,643,012 16.20%
2019 311,718 311,718 - 1,839,044 16.95%
2020 344,654 344,654 - 1,947,198 17.70%
Note: Schedule is intended to show ten year trend. Additional years will be reported as they become available.
See notes to required supplementary information.64
Last Ten Years
Contributions
as a Percentage
of Covered
Payroll
Statutorily
Required
Contribution
Statutorily
Required
Contribution
Contributions
in Relation to
the Statutorily
Required
Contributions
Contribution
Deficiency
(Excess)
Contributions
in Relation to
the Statutorily
Required
Contributions
Fiscal Year
Ending
December 31,
City's Covered
Payroll
Contributions
as a Percentage
of Covered
Payroll
Schedule of City Contributions -
Public Employees Police and Fire Retirement Fund
Fiscal Year
Ending
December 31,
City of Mendota Heights
Schedule of City Contributions -
General Employees Retirement Fund
Last Ten Years
Contribution
Deficiency
(Excess)
City's Covered
Payroll
City of Mendota Heights
Notes to Required Supplementary Information
65
GENERAL EMPLOYEES FUND
2020 Changes
Changes in Actuarial Assumptions
The price inflation assumption was decreased from 2.5% to 2.25%.
The payroll growth assumption was decreased from 3.25% to 3.0%.
Assumed salary increase rates were changed as recommended in the June 30, 2019, experience
study. The net effect is assumed rates that average 0.25% less than previous rates.
Assumed rates of retirement were changed as recommended in the June 30, 2019, experience
study. The changes result in more unreduced (normal) retirements and slightly fewer Rule of 90
and early retirements.
Assumed rates of termination were changes as recommended in the June 30, 2019, experience
study. The new rates are based on service and are generally lower than the previous rates for
years 2-5 and slightly higher thereafter.
Assumed rates of disability were changed as recommended in the June 30, 2019, experience
study. The change results in fewer predicted disability retirements for males and females.
The base mortality table for healthy annuitants and employees was changed from the RP-2014
table to the Pub-2010 General Mortality table, with adjustments. The base mortality table for
disabled annuitants was changed from the RP-2014 disabled annuitant mortality table to the
Pub-2010 General/Teacher disabled annuitant mortality table, with adjustments.
The mortality improvement scale was changed from Scale MP-2018 to Scale MP-2019.
The assumed spouse age difference was changed from two years older for females to one year
older.
The assumed number of married male new retirees electing the 100% Joint and Survivor option
changed from 35% to 45%. The assumed number of married female new retires electing the
100% Joint and Survivor option changed from 15% to 30%. The corresponding number of
married new retirees electing the Life annuity option was adjusted accordingly.
Changes in Plan Provisions
Augmentation for current privatized members was reduced to 2.0% for the period July 1, 2020
through December 31, 2023, and 0.0% thereafter. Augmentation was eliminated for
privatizations occurring after June 30, 2020.
2019 Changes
Changes in Actuarial Assumptions
The mortality projection scale was changed from MP-2017 to MP-2018.
Changes in Plan Provisions
The employer supplemental contribution was changed prospectively, decreasing from $31.0
million to $21.0 million per year. The State's special funding contribution was changed
prospectively, requiring $16.0 million due per year through 2031.
2018 Changes
Changes in Actuarial Assumptions
The mortality projection scale was changed from MP-2015 to MP-2017.
The assumed benefit increase was changed from 1.0% per year through 2044 and 2.5% per year
thereafter to 1.25% per year.
City of Mendota Heights
Notes to Required Supplementary Information
66
GENERAL EMPLOYEES FUND (CONTINUED)
2018 Changes Continued)
Changes in Plan Provisions
The augmentation adjustment in early retirement factors is eliminated over a five-year period
starting July 1, 2019, resulting in actuarial equivalence after June 30, 2024.
Interest credited on member contributions decreased from 4.00% to 3.00%, beginning July 1,
2018.
Deferred augmentation was changed to 0.00%, effective January 1, 2019. Augmentation that has
already accrued for deferred members will still apply.
Contribution stabilizer provisions were repealed.
Postretirement benefit increases were changed from 1.00% per year with a provision to increase
to 2.50% upon attainment of 90.00% funding ratio to 50.00% of the Social Security Cost of
Living Adjustment, not less than 1.00% and not more than 1.50%, beginning
January 1, 2019.
For retirements on or after January 1, 2024, the first benefit increase is delayed until the retiree
reaches normal retirement age; does not apply to Rule of 90 retirees, disability benefit recipients,
or survivors.
Actuarial equivalent factors were updated to reflect revised mortality and interest assumptions.
2017 Changes
Changes in Actuarial Assumptions
The CSA loads were changed from 0.8% for active members and 60% for vested and non-vested
deferred members. The revised CSA loads are now 0.0% for active member liability, 15% for
vested deferred member liability and 3% for non-vested deferred member liability.
The assumed post-retirement benefit increase rate was changed from 1.0% per year for all years
to 1.0% per year through 2044 and 2.5% per year thereafter.
Changes in Plan Provisions
The State's contribution for the Minneapolis Employees Retirement Fund equals $16,000,000 in
2017 and 2018, and $6,000,000 thereafter.
The Employer Supplemental Contribution for the Minneapolis Employees Retirement Fund
changed from $21,000,000 to $31,000,000 in calendar years 2019 to 2031. The State's
contribution changed from $16,000,000 to $6,000,000 in calendar years 2019 to 2031.
2016 Changes
Changes in Actuarial Assumptions
The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2035
and 2.5% per year thereafter to 1.0% per year for all future years.
The assumed investment return was changed from 7.9% to 7.5%. The single discount rate was
changed from 7.9% to 7.5%.
Other assumptions were changed pursuant to the experience study dated June 30, 2015. The
assumed future salary increases, payroll growth, the inflation were decreased by 0.25% to 3.25%
for payroll growth and 2.50% for inflation.
Changes in Plan Provisions
There have been no changes since the prior valuation.
City of Mendota Heights
Notes to Required Supplementary Information
67
GENERAL EMPLOYEES FUND (CONTINUED)
2015 Changes
Changes in Actuarial Assumptions
The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2030
and 2.5% per year thereafter to 1.0% per year through 2035 and 2.5% per year thereafter.
Changes in Plan Provisions
On January 1, 2015, the Minneapolis Employees Retirement Fund was merged into the General
Employees Fund, which increased the total pension liability by $1.1 billion and increased the
fiduciary plan net position by $892 million. Upon consolidation, state and employer
contributions were revised; the State's contribution of $6.0 million, which meets the special
funding situation definition, was due September 2015.
City of Mendota Heights
Notes to Required Supplementary Information
68
POLICE AND FIRE FUND
2020 Changes
Changes in Actuarial Assumptions
The mortality projection scale was changed from MP-2018 to MP-2019.
Changes in Plan Provisions
There have been no changes since the prior valuation.
2019 Changes
Changes in Actuarial Assumptions
The mortality projection scale was changed from MP-2017 to MP-2018.
Changes in Plan Provisions
There have been no changes since the prior valuation.
2018 Changes
Changes in Actuarial Assumptions
The mortality projection scale was changed from MP-2016 to MP-2017.
Changes in Plan Provisions
Postretirement benefit increases were changed to 1.00% for all years, with no trigger.
An end date of July 1, 2048 was added to the existing $9.0 million state contribution.
New annual state aid will equal $4.5 million in fiscal years 2019 and 2020, and $9.0 million
thereafter until the plan reaches 100% funding, or July 1, 2048, if earlier.
Member contributions were changed from 10.80% to 11.30% of pay, effective January 1, 2019
and 11.80% of pay, effective January 1, 2020.
Employer contributions were changed from 16.20% to 16.95% of pay, effective January 1, 2019
and 17.70% of pay, effective January 1, 2020.
Interest credited on member contributions decreased from 4.00% to 3.00%, beginning July 1,
2018.
Deferred augmentation was changed to 0.00%, effective January 1, 2019. Augmentation that has
already accrued for deferred members will still apply.
Actuarial equivalent factors were updated to reflect revised mortality and interest assumptions.
2017 Changes
Changes in Actuarial Assumptions
Assumed salary increases were changed as recommended in the June 30, 2016 experience study.
The net effect is proposed rates that average 0.34% lower than the previous rates.
Assumed rates of retirement were changed, resulting in fewer retirements.
The CSA load was 30% for vested and non-vested deferred members. The CSA has been
changed to 33% for vested members and 2% for non-vested members.
The base mortality table for healthy annuitants was changed from the RP-2000 fully generational
table to the RP-2014 fully generational table (with a base year of 2006), with male rates adjusted
by a factor of 0.96. The mortality improvement scale was changed from Scale AA to Scale MP-
2016. The base mortality table for disabled annuitants was changed from the RP-2000 disabled
mortality table to the mortality tables assumed for healthy retirees.
City of Mendota Heights
Notes to Required Supplementary Information
69
POLICE AND FIRE FUND (CONTINUED)
2017 Changes (Continued)
Changes in Actuarial Assumptions (Continued)
Assumed termination rates were decreased to 3% for the first three years of service. Rates
beyond the select period of three years were adjusted, resulting in more expected terminations
overall.
Assumed percentage of married female members was decreased from 65% to 60%.
Assumed age difference was changed from separate assumptions for male members (wives
assumed to be three years younger) and female members (husbands assumed to be four years
older) to the assumption that males are two years older than females.
The assumed percentage of female members electing Joint and Survivor annuities was increased.
The assumed post-retirement benefit increase rate was changed from 1% for all years to 1% per
year through 2064 and 2.5% thereafter.
The single discount rate was changed from 5.6% per annum to 7.5% per annum.
Changes in Plan Provisions
There have been no changes since the prior valuation.
2016 Changes
Changes in Actuarial Assumptions
The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2037
and 2.5% thereafter to 1.0% per year for all future years.
The assumed investment return was changed from 7.9% to 7.5%. The single discount rate
changed from 7.9% to 5.6%.
The single discount rate changed from 7.90% to 5.60%.
The assumed future salary increases, payroll growth, and inflation were decreased by 0.25% to
3.25% for payroll growth and 2.50% for inflation.
Changes in Plan Provisions
There have been no changes since the prior valuation.
2015 Changes
Changes in Actuarial Assumptions
The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2030
and 2.5% per year thereafter to 1.0% per year through 2037 and 2.5% per year thereafter.
Changes in Plan Provisions
The post-retirement benefit increase to be paid after attainment of the 90% funding threshold was
changed, from inflation up to 2.5%, to a fixed rate of 2.5%.
City of Mendota Heights
Notes to Required Supplementary Information
70
OPEB
2020 Changes
Changes in Actuarial Assumptions
The discount rate decreased from 3.80% in 2019 to 2.90% in 2020.
The healthcare trend rates, mortality tables, and salary increase rates were updated.
2019 Changes
Changes in Actuarial Assumptions
The discount rate increased from 3.30% in 2018 to 3.80% in 2019.
The healthcare trend rates, mortality tables, and salary increase rates were updated.
2018 Changes
Changes in Actuarial Assumptions
The discount rate decreased from 4.00% in 2017 to 3.30% in 2018.
There are no assets accumulated in a trust.
71
SUPPLEMENTARY INFORMATION
Special
Revenue
Water Revenue Special Park Civil Defense Street Lighting
Assets
Cash and investments 673,110$ 764,235$ 147,626$ 33,717$
Taxes receivable - delinquent - - 199 916
Special assessments receivable
Deferred - - - -
Accounts receivable - - - -
Interest receivable 796 915 183 29
Due from other funds - - - -
Due from other governments 2,983 - 535 1,732
Prepaid items - - - -
Land held for resale - - - -
Total assets 676,889$ 765,150$ 148,543$ 36,394$
Liabilities
Accounts and contracts payable -$ -$ -$ 605$
Due to other funds - - - -
Due to other governments - - - -
Salaries and benefits payable - - -
Total liabilities - - - 605
Deferred Inflows of Resources
Unavailable revenue - property taxes - - 199 916
Unavailable revenue - grants - - - -
Unavailable revenue - special assessments - - - -
Total deferred inflows of resources - - 199 916
Fund Balances
Nonspendable - - - -
Restricted - 765,150 - 34,873
Committed 676,889 - 148,344 -
Assigned - - - -
Unassigned - - - -
Total fund balances 676,889 765,150 148,344 34,873
Total liabilities, deferred inflows of
resources, and fund balances 676,889$ 765,150$ 148,543$ 36,394$
72
City of Mendota Heights
Combining Balance Sheet -
Nonmajor Governmental Funds
December 31, 2020
Special Revenue
Special
Revenue
Par 3 Golf
Course
Par 3 G.O.
Bonds
Equipment
Certficates
Fire Station
Bonds
Equipment
Replacement
Reserve
Infrastructure
Reserve
Facility
Reserve
78,873$ 390,045$ 43,818$ 493,912$ 493,616$ 75,865$ 390,896$
- 1,787 24 4,493 42 18 -
- - - - - - -
56 - - - - - -
52 359 57 333 555 92 481
- - - - - - -
- 804 - 13,329 - - -
5,856 - - - - - -
- - - - - - -
84,837$ 392,995$ 43,899$ 512,067$ 494,213$ 75,975$ 391,377$
1,846$ -$ -$ -$ -$ -$ -$
- - - - - - -
734 - 14 - 3 80,509 -
532 - - - - - -
3,112 - 14 - 3 80,509 -
- 1,787 24 4,493 42 18 -
- - - - - - -
- - - - - - -
- 1,787 24 4,493 42 18 -
5,856 - - - - - -
- 391,208 43,861 507,574 - - -
75,869 - - - - - -
- - - - 494,168 - 391,377
- - - - - (4,552) -
81,725 391,208 43,861 507,574 494,168 (4,552) 391,377
84,837$ 392,995$ 43,899$ 512,067$ 494,213$ 75,975$ 391,377$
73
Debt Service Capital Projects
Water Tower
Capital Project
Pilot Knob
Improvement
Pre-1998 Non-
Increment
Special
Assessment
Capital Project
Assets
Cash and investments 408,001$ 959$ 746,640$ -$
Taxes receivable - delinquent - - - -
Special assessments receivable
Deferred - - - 10,584
Accounts receivable - - - 11,032
Interest receivable 780 - 640 145
Due from other funds 244,033 - 8,169 -
Due from other governments - - 277,023 1,374
Prepaid items - - - -
Land held for resale - - 96,100 -
Total assets 652,814$ 959$ 1,128,572$ 23,135$
Liabilities
Accounts and contracts payable -$ -$ 4,803$ -$
Due to other funds - - - 180,716
Due to other governments - - - 157,481
Salaries and benefits payable - - - -
Total liabilities - - 4,803 338,197
Deferred Inflows of Resources
Unavailable revenue - property taxes - - - -
Unavailable revenue - grants - - 192,000 -
Unavailable revenue - special assessments - - - 10,584
Total deferred inflows of resources - - 192,000 10,584
Fund Balances
Nonspendable - - - -
Restricted - - - -
Committed - - - -
Assigned 652,814 959 931,769 -
Unassigned - - - (325,646)
Total fund balances 652,814 959 931,769 (325,646)
Total liabilities, deferred inflows of
resources, and fund balances 652,814$ 959$ 1,128,572$ 23,135$
74
City of Mendota Heights
Combining Balance Sheet -
Nonmajor Governmental Funds
Capital Projects
December 31, 2020
Capital
Projects
TIF District
No. 2
Total
Nonmajor
Governmental
Funds
-$ 4,741,313$
- 7,479
- 10,584
- 11,088
- 5,417
- 252,202
- 297,780
- 5,856
- 96,100
-$ 5,427,819$
-$ 7,254$
8,169 188,885
- 238,741
- 532
8,169 435,412
- 7,479
- 192,000
- 10,584
- 210,063
- 5,856
- 1,742,666
- 901,102
- 2,471,087
(8,169) (338,367)
(8,169) 4,782,344
-$ 5,427,819$
75
Water Revenue Special Park Civil Defense
Revenues
Property taxes -$ -$ 24,781$
Tax increments - - -
Intergovernmental - - -
Charges for services 131,453 - -
Fines and forfeitures - - -
Miscellaneous
Investment income 6,385 7,343 1,465
Other - 195,454 -
Total revenues 137,838 202,797 26,246
Expenditures
Current
General government - - 14,574
Public safety - - -
Public works - 30,071 -
Economic development - - -
Debt service
Principal - - -
Interest and other charges - - -
Capital outlay
General government - - -
Public works 2,307 54,818 -
Total expenditures 2,307 84,889 14,574
Excess of revenues over (under) expenditures 135,531 117,908 11,672
Other Financing Sources (Uses)
Transfers in - - -
Transfers out (3,000) (1,500) -
Total other financing sources (uses) (3,000) (1,500) -
Net change in fund balances 132,531 116,408 11,672
Fund Balances
Beginning of year 544,358 648,742 136,672
End of year 676,889$ 765,150$ 148,344$
76
City of Mendota Heights
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances - Nonmajor Governmental Funds
Year Ended December 31, 2020
Special Revenue
Street Lighting
Par 3 Golf
Course
Toward Zero
Death
Par 3 G.O.
Bonds
Equipment
Certficates
Fire Station
Bonds
49,730$ -$ -$ 243,826$ (14)$ 619,700$
- - - - - -
- - 169,053 - - -
- 173,314 - - - -
- - - - - -
231 418 - 2,877 455 2,670
- 195 - - - -
49,961 173,927 169,053 246,703 441 622,370
42,670 - - - - -
- - 169,053 - - -
- 145,077 - - - -
- - - - - -
- - - 210,000 50,000 -
- - - 20,375 875 288,240
- - - - - -
- 48,526 - - - -
42,670 193,603 169,053 230,375 50,875 288,240
7,291 (19,676) - 16,328 (50,434) 334,130
- 49,602 - - - -
- - - - - -
- 49,602 - - - -
7,291 29,926 - 16,328 (50,434) 334,130
27,582 51,799 - 374,880 94,295 173,444
34,873$ 81,725$ -$ 391,208$ 43,861$ 507,574$
77
Debt ServiceSpecial Revenue
Equipment
Replacement
Reserve
Infrastructure
Reserve
Facility
Reserve
Revenues
Property taxes 181$ 108$ -$
Tax increments - - -
Intergovernmental - - -
Charges for services - - -
Fines and forfeitures 1 - -
Miscellaneous
Investment income 4,453 741 3,862
Other - - -
Total revenues 4,635 849 3,862
Expenditures
Current
General government - - -
Public safety - - -
Public works - 80,971 -
Economic development - - -
Debt service
Principal - - -
Interest and other charges - - -
Capital outlay
General government - - -
Public works 129,517 - -
Total expenditures 129,517 80,971 -
Excess of revenues over (under) expenditures (124,882) (80,122) 3,862
Other Financing Sources (Uses)
(Uses)
Transfers in 162,518 - 20,000
Transfers out - (2,398) -
Total other financing sources (uses) 162,518 (2,398) 20,000
Net change in fund balances 37,636 (82,520) 23,862
Fund Balances
Beginning of year 456,532 77,968 367,515
End of year 494,168$ (4,552)$ 391,377$
78
City of Mendota Heights
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances - Nonmajor Governmental Funds
Year Ended December 31, 2020
Capital Projects
Water Tower
Capital Project
Pilot Knob
Improvement
Pre-1998 Non-
Increment
Special
Assessment
Capital Project
TIF District
No. 2
Total Other
Governmental
Funds
-$ -$ -$ -$ -$ 938,312$
- - - - 15,656 15,656
- - 85,023 - - 254,076
- - 16,200 - - 320,967
- - - - - 1
6,259 - 5,138 1,163 - 43,460
74,901 - 1,139,302 34,352 - 1,444,204
81,160 - 1,245,663 35,515 15,656 3,016,676
- - 381,987 - - 439,231
- - - - - 169,053
- - - - - 256,119
- - - - 15,244 15,244
- - - - - 260,000
- - - - - 309,490
- - 7,830 - - 7,830
- - - 41,085 - 276,253
- - 389,817 41,085 15,244 1,733,220
81,160 - 855,846 (5,570) 412 1,283,456
- - - 2,398 - 234,518
- - (53,000) - - (59,898)
- - (53,000) 2,398 - 174,620
81,160 - 802,846 (3,172) 412 1,458,076
571,654 959 128,923 (322,474) (8,581) 3,324,268
652,814$ 959$ 931,769$ (325,646)$ (8,169)$ 4,782,344$
79
Capital Projects
Compensated
Absences
City Hall
Sinking Fund Total
Assets
Current assets
Cash and investments
(including cash equivalents) 629,076$ 37,195$ 666,271$
Interest receivable - 139 139
Prepaid expenses - 8,837 8,837
Total current assets 629,076 46,171 675,247
Noncurrent assets
Capital assets
Land - 25,000 25,000
Buildings - 2,279,024 2,279,024
Improvements other than buildings - 40,781 40,781
Machinery and equipment - 66,969 66,969
Total capital assets - 2,411,774 2,411,774
Less accumulated depreciation - (1,774,195) (1,774,195)
Net capital assets - 637,579 637,579
Total assets 629,076 683,750 1,312,826
Deferred Outflows of Resources
Deferred outflows of resources related to OPEB - 274 274
Deferred outflows of resources related to pensions - 5,646 5,646
Total deferred outflows of resources - 5,920 5,920
Total assets and deferred outflows of resources 629,076$ 689,670$ 1,318,746$
Liabilities
Current liabilities
Accounts and contracts payable -$ 5,574$ 5,574$
Salaries and benefits payable - 2,916 2,916
Due to other governments - 96 96
Noncurrent liabilities due within one year 396,563 3,662 400,225
Total current liabilities 396,563 12,248 408,811
Noncurrent liabilities
Compensated absences 629,076 17,120 646,196
OPEB payable - 4,329 4,329
Net pension liability - 54,726 54,726
Less amount due within one year (396,563) (3,662) (400,225)
Total noncurrent liabilities 232,513 72,513 305,026
Total liabilities 629,076 84,761 713,837
Deferred Inflows of Resources
Deferred inflows of resources related to OPEB - 304 304
Deferred inflows of resources related to pensions - 2,639 2,639
Total deferred inflows of resources - 2,943 2,943
Net Position
Investment in capital assets - 637,579 637,579
Unrestricted - (35,613) (35,613)
Total net position - 601,966 601,966
Total liabilities, deferred inflows of resources,
and net position 629,076$ 689,670$ 1,318,746$
80
December 31, 2020
Combining Statement of Net Position - Internal Service Funds
City of Mendota Heights
City of Mendota Heights
Combining Statement of Revenues, Expenses, and Changes
in Net Position - Internal Service Funds
Year Ended December 31, 2020
City Hall
Sinking Fund Total
Operating revenues
Charges for services 216,940$ 216,940$
Operating expenses
Wages and salaries 71,691 71,691
Employee benefits 31,916 31,916
Professional services 4,013 4,013
Insurance 6,891 6,891
Utilities 36,266 36,266
Depreciation 36,505 36,505
Miscellaneous 43,313 43,313
Total operating expenses 230,595 230,595
Operating loss (13,655) (13,655)
Nonoperating revenues
Investment income 1,116 1,116
Loss before transfers (12,539) (12,539)
Transfers in 17,540 17,540
Change in net position 5,001 5,001
Net position
Beginning of year 596,965 596,965
End of year 601,966$ 601,966$
81
Compensated
Absences
City Hall
Sinking Fund Total
Cash Flows - Operating Activities
Receipts from customers and users -$ 216,940$ 216,940$
Payments to suppliers - (92,164) (92,164)
Payments to employees 73,161 (105,999) (32,838)
Net cash flows - operating activities 73,161 18,777 91,938
Cash Flows - Noncapital
Financing Activities
Transfer from Other Funds - 17,540 17,540
Cash Flows - Capital And Related
Financing Activities
Acquisition of capital assets - (14,457) (14,457)
Cash Flows - Investing Activities
Interest and dividends received - 1,151 1,151
Net change in cash and cash equivalents 73,161 23,011 96,172
Cash and Cash Equivalents
Beginning of year 555,915 14,184 570,099
End of year 629,076$ 37,195$ 666,271$
Reconciliation of Operating
Loss to Net Cash Flows -
Operating Activities
Operating loss -$ (13,655)$ (13,655)$
Adjustments to reconcile operating
Loss to net cash flows -
Operating activities
Depreciation expense - 36,505 36,505
Prepaid items - (418) (418)
Accounts payable - (1,264) (1,264)
Due to other governmental units - 1 1
Salaries payable - 888 888
OPEB payable - (1,238) (1,238)
Pension related items - (4,630) (4,630)
Compensated absences payable 73,161 2,588 75,749
Total adjustments 73,161 32,432 105,593
Net cash flows - operating activities 73,161$ 18,777$ 91,938$
82
City of Mendota Heights
Combining Statement of Cash Flows - Internal Service Funds
Year Ended December 31, 2020
Budgeted
Amounts Variance with
Original Actual
and Final Amounts
Revenues
Property taxes 7,941,373$ 7,959,743$ 18,370$
Licenses and permits 384,700 405,376 20,676
Intergovernmental revenue
State grants and aids
PERA aid 9,070 - (9,070)
Fire aid 101,000 111,759 10,759
Police aid 135,000 181,932 46,932
Other grants and aids 221,000 1,142,039 921,039
Total intergovernmental revenue 466,070 1,435,730 969,660
Charges for services 730,878 677,925 (52,953)
Fines and forfeitures 84,000 102,676 18,676
Miscellaneous revenues
Investment income 35,000 96,400 61,400
Other 110,000 213,370 103,370
Total miscellaneous revenues 145,000 309,770 164,770
Total revenues 9,752,021 10,891,220 1,139,199
Expenditures
General government
Mayor and council
Salaries and benefits 24,371 24,171 (200)
Contracted services 24,000 9,925 (14,075)
Administration and finance
Salaries and benefits 841,371 871,009 29,638
Materials and supplies 14,700 14,145 (555)
Contracted services 359,600 426,625 67,025
83
City of Mendota Heights
Detailed Schedule of Revenues, Expenditures, and
Changes in Fund Balance - Budget and Actual -
Final budget -
over (under)
General Fund
Year Ended December 31, 2020
Budgeted
Amounts Variance with
Original Actual Final budget -
And final Amounts Over (under)
Expenditures (Continued)
General government (continued)
Elections
Salaries and benefits 84,562$ 91,713$ 7,151$
Materials and supplies 14,300 21,430 7,130
Contracted services 7,800 5,902 (1,898)
Information technology
Materials and supplies 104,580 13,983 (90,597)
Contracted services 113,350 188,752 75,402
Planning and zoning
Salaries and benefits 148,021 148,673 652
Materials and supplies 4,500 1,305 (3,195)
Contracted services 51,000 33,192 (17,808)
Recycling
Salaries and benefits - 16,626 16,626
Contracted services 31,600 7,517 (24,083)
Miscellaneous
Contracted services - 15,310 15,310
Total general government 1,823,755 1,890,278 66,523
Public safety
Police protection
Salaries and benefits 3,396,741 3,188,399 (208,342)
Materials and supplies 216,500 178,577 (37,923)
Contracted services 743,866 684,091 (59,775)
Fire protection
Salaries and benefits 317,171 315,042 (2,129)
Materials and supplies 101,700 150,039 48,339
Contracted services 420,583 369,290 (51,293)
Total public safety 5,196,561 4,885,438 (311,123)
84
Detailed Schedule of Revenues, Expenditures, and
Changes in Fund Balance - Budget and Actual -
City of Mendota Heights
General Fund
Year Ended December 31, 2020
(Continued)
Budgeted
Amounts Variance with
Original Actual Final budget -
And final Amounts Over (under)
Expenditures (Continued)
Public works
Code enforcement
Materials and supplies 2,750$ 4,417$ 1,667$
Contracted services 115,875 108,452 (7,423)
Street maintenance
Salaries and benefits 1,065,441 1,070,097 4,656
Materials and supplies 133,200 108,681 (24,519)
Contracted services 505,962 402,333 (103,629)
Capital outlay - 2,478 2,478
Parks
Salaries and benefits 554,144 569,822 15,678
Materials and supplies 226,650 148,458 (78,192)
Contracted services 175,233 220,030 44,797
Total public works 2,779,255 2,634,768 (144,487)
Total expenditures 9,799,571 9,410,484 (389,087)
Excess of revenues over
(under) expenditures (47,550) 1,480,736 1,528,286
Other Financing Sources (Uses)
Transfer in 47,550 47,550 -
Transfer out - (196,660) (196,660)
Total other financing sources (uses) 47,550 (149,110) (196,660)
Net change in fund balance -$ 1,331,626 1,331,626$
Fund Balance
Beginning of year 9,352,885
End of year 10,684,511$
85
Detailed Schedule of Revenues, Expenditures, and
Changes in Fund Balance - Budget and Actual -
General Fund
City of Mendota Heights
Year Ended December 31, 2020
(Continued)
City of Mendota Heights
Schedule of Expenditures of Federal Awards
For the Year Ended December 31, 2020
Federal CFDA
Number Expenditures
Department of Treasury
Passed through Minnesota Management and Budget
COVID - Coronavirus Relief Fund 21.019 858,276$
Election Assistance Commission
Passed through Dakota County
COVID - Election Security Grants 90.404 6,281
Department of Transportation
Passed through Minnesota Management and Budget
State and Community Highway Safety 20.600 21,409
National Priority Safety Programs 20.616 53,728
Total Highway Safety Cluster 75,137
Passed through Minnesota Management and Budget
Minimum Penalties for Repeat Offenders for Driving While Intoxicated 20.608 103,354
Total Department of Transportation 178,491
Total federal expenditures 1,043,048$
Amounts passed through to subrecipients:
Highway Safety Cluster and Minimum Penalties for Repeat Offenders for Driving While Intoxicated
City of Apple Valley 20.600/20.616/20.608 13,978$
City of Burnsville 20.600/20.616/20.608 8,212
Dakota Communications Center 20.600/20.616/20.608 17,062
Dakota County 20.600/20.616/20.608 23,321
City of Eagan 20.600/20.616/20.608 36,861
City of Farmington 20.600/20.616/20.608 1,197
City of Hastings 20.600/20.616/20.608 11,851
City of Inver Grove Heights 20.600/20.616/20.608 15,979
City of Lakeville 20.600/20.616/20.608 26,628
City of Rosemount 20.600/20.616/20.608 11,345
City of South St. Paul 20.600/20.616/20.608 3,841
City of West St. Paul 20.600/20.616/20.608 891
See notes to schedule of expenditures of federal awards.86
Federal Grantor/Pass-Through Grantor/Grant Program Title
87
City of Mendota Heights
Notes to Schedule of Expenditures of Federal Awards
NOTE 1 – BASIS OF PRESENTATION
The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of
the City of Mendota Heights, Minnesota and is presented on the accrual basis of accounting. The
information in this Schedule is presented in accordance with the requirements of the Uniform Guidance.
Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in,
the preparation of the regulatory basis financial statements.
NOTE 2 – PASS-THROUGH GRANT NUMBERS
All pass-through entities listed above use the same CFDA numbers as the federal grantors to identify
these grants and have not assigned any additional identifying numbers.
NOTE 3 – INDIRECT COST RATE
The City did not elect to use the 10 percent de minimis indirect cost rate, as allowed under the Uniform
Guidance.
NOTE 4 – AMOUNTS PASSED TO SUBRECIPIENTS
The City does not receive an allocation for each individual Department of Transportation grant that is
awarded to individual subrecipients. Therefore, each subrecipient is presented with the total amount
received for the Highway Safety Cluster and the Minimum Penalties for Repeat Offenders for Driving
While Intoxicated grants for 2020.
88
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89
Report on Internal Control over Financial Reporting
and on Compliance and Other Matters Based on an Audit of
Financial Statements Performed in Accordance with
Government Auditing Standards
Independent Auditor's Report
Honorable Mayor and Members
of the City Council
City of Mendota Heights
Mendota Heights, 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 Mendota Heights, Minnesota as of and for the year ended December 31, 2020, and the related
notes to financial statements, which collectively comprise the City's basic financial statements, and have
issued our report thereon dated June 2, 2020.
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 and therefore, material weaknesses or significant deficiencies
may exist that were not identified. We did identify certain deficiencies in internal control, described in
the accompanying Schedule of Findings and Questioned Costs that we consider to be material
weaknesses identified as audit finding 2020-001.
90
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.
City's Response to Findings
The City's response to the findings identified in our audit are described in the Schedule of Findings and
Questioned Costs. The City's response was not subjected to the auditing procedures applied in the audit
of the financial statements and, accordingly, we express no opinion on it.
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 result of that testing, and not to provide an opinion on the effectiveness of the City's
internal control or on compliance. This report is an integral part of an audit performed in accordance
with Government Auditing Standards in considering the City's internal control and compliance.
Accordingly, this communication is not suitable for any other purpose.
Minneapolis, Minnesota
June 2, 2021
91
Report on Compliance for each Major Federal Program
and Report on Internal Control over Compliance In Accordance
With the Uniform Guidance
Independent Auditor's Report
Honorable Mayor and Members
of the City Council
City of Mendota Heights
Mendota Heights, Minnesota
Report on Compliance for Each Major Federal Program
We have audited the City's compliance with the types of compliance requirements described in the OMB
Compliance Supplement that could have a direct and material effect on the City's major federal program
for the year ended December 31, 2020. The City's major federal program is identified in the summary of
auditor's results section of the accompanying Schedule of Findings and Questioned Costs.
Management's Responsibility
Management is responsible for compliance with federal statutes, regulations, and the terms and
conditions of its federal awards applicable to its federal programs.
Auditor's Responsibility
Our responsibility is to express an opinion on compliance for the City's major federal program based on
our audit of the types of compliance requirements referred to above. We conducted our audit of
compliance in accordance with auditing standards generally accepted in the United States of America;
the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal
Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance
require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance
with the types of compliance requirements referred to above that could have a direct and material effect
on a major federal program occurred. An audit includes examining, on a test basis, evidence about the
City's compliance with those requirements and performing such other procedures as we considered
necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for each major
federal program. However, our audit does not provide a legal determination of the City's compliance.
Opinion on Each Major Federal Program
In our opinion, the City complied, in all material respects, with the types of compliance requirements
referred to above that could have a direct and material effect on its major federal program for the year
ended December 31, 2020.
92
Report on Internal Control over Compliance
Management of the City is responsible for establishing and maintaining effective internal control over
compliance with the types of compliance requirements referred to above. In planning and performing
our audit of compliance, we considered the City's internal control over compliance with the types of
requirements that could have a direct and material effect on each major federal program to determine the
auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion
on compliance for each major federal program and to test and report on internal control over compliance
in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the
effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the
effectiveness of the City's internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their assigned
functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a
federal program on a timely basis. A material weakness in internal control over compliance is a
deficiency, or combination of deficiencies, in internal control over compliance, such that there is a
reasonable possibility that material noncompliance with a type of compliance requirement of a federal
program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in
internal control over compliance is a deficiency, or a combination of deficiencies, in internal control
over compliance with a type of compliance requirement of a federal program that is less severe than a
material weakness in internal control over compliance, yet important enough to merit attention by those
charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control over
compliance that might be material weaknesses or significant deficiencies. We did not identify any
deficiencies in internal control over compliance that we consider to be material weaknesses. However,
material weaknesses may exist that have not been identified.
The purpose of this report on internal control over compliance is solely to describe the scope of our
testing of internal control over compliance and the results of that testing based on the requirements of
the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.
Minneapolis, Minnesota
June 2, 2021
93
City of Mendota Heights
Schedule of Findings and Questioned Costs
SECTION I – SUMMARY OF AUDITOR'S RESULTS
Financial Statements
Type of auditor's report issued:
We issued an unmodified opinion on the
fair presentation of the financial
statements of the governmental
activities, business-type activities, each
major fund, and the aggregate remaining
fund information in accordance with
accounting principles generally accepted
in the United States of America
(GAAP).
Internal control over financial reporting:
Material weakness(es) identified? Yes, Audit Finding 2020-001
Significant deficiency(ies) identified? No
Noncompliance material to financial statements noted? No
Federal Awards
Type of auditor's report issued on compliance for major
programs: Unmodified
Internal control over major programs:
Material weakness(es) identified? No
Significant deficiency(ies) identified? No
Any audit findings disclosed that are required to
be reported in accordance with 2 CFR 200.516(a)? No
Identification of Major Programs
CFDA No.: 21.019
Name of Federal Program or Cluster: COVID- Coronavirus Relief Fund
Dollar threshold used to distinguish
between type A and type B programs: $750,000
Auditee qualified as low risk auditee? No
94
City of Mendota Heights
Schedule of Findings and Questioned Costs
SECTION II – FINANCIAL STATEMENT FINDINGS
Audit Finding 2020-001
Criteria:
Internal control that supports the City's ability to initiate record, process and report financial data
consistent with the assertions of management in the financial statements requires adequate segregation
of accounting duties.
Condition:
The City had a lack of segregation of accounting duties due to a limited number of office employees.
The lack of adequate segregation of accounting duties could adversely affect the City's ability to initiate,
record, process, and report financial data consistent with the assertions of management in the financial
statements.
During the course of our engagement, we proposed a material audit adjustment that would not have been
identified as a result of the City's existing internal control system and, therefore, could have resulted in a
material omission of the City's financial statements. The material omission detected as a result of audit
procedures was corrected by management.
Context:
This finding impacts the internal control for all significant accounting functions.
Effect or Potential Effect:
The lack of adequate segregation of accounting duties could adversely affect the City's ability to initiate,
record, process, and report financial data consistent with the assertions of management in the financial
statements.
Cause:
There are a limited number of office employees.
Recommendation:
We recommend that the City review the internal control process over the year-end closing process to
ensure there are no adjustments needed and segregation or independent review be implemented
whenever practical and cost effective.
Views of Responsible Officials and Planned Corrective Action:
City staff is aware of the lack of segregation of accounting duties and continue to make every effort to
ensure that transactions are separated and monitored to the extent possible. Staff will continue to
examine and implement methods and processes that will address this issue.
95
City of Mendota Heights
Schedule of Findings and Questioned Costs
SECTION III – FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
None
SECTION IV – PRIOR YEAR FINDINGS AND QUESTIONED COSTS
None
96
(THIS PAGE LEFT BLANK INTENTIONALLY)
97
Minnesota Legal Compliance
Independent Auditor's Report
Honorable Mayor and Members
of the City Council
City of Mendota Heights
Mendota Heights, 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 Mendota Heights, Minnesota as of and for the year ended December 31, 2020, and the
related notes to financial statements, which collectively comprise the City's basic financial statements,
and have issued our report thereon dated June 2, 2021.
In connection with our audit, nothing came to our attention that caused us to believe that the City failed
to comply with the provisions of the contracting and bidding, deposits and investments, conflicts of
interest, public indebtedness, claims and disbursements, miscellaneous provisions, and tax increment
financing sections of the Minnesota Legal Compliance Audit Guide for Cities, promulgated by the State
Auditor pursuant to Minn. Stat. § 6.65, insofar as they relate to accounting matters. However, our audit
was not directed primarily toward obtaining knowledge of such noncompliance. Accordingly, had we
performed additional procedures, other matters may have come to our attention regarding the City's
noncompliance with the above referenced provisions, insofar as they relate to accounting matters.
The purpose of this report is solely to describe the scope of our testing of compliance and the results of
that testing, and not to provide an opinion on compliance. Accordingly, this communication is not
suitable for any other purpose.
Minneapolis, Minnesota
June 2, 2021
City of Mendota Heights
Dakota County, Minnesota
Communications Letter
December 31, 2020
City of Mendota Heights
Table of Contents
Report on Matters Identified as a Result of
the Audit of the Financial Statements 1
Material Weakness 3
Required Communication 4
Financial Analysis 8
Emerging Issue 17
1
Report on Matters Identified as a Result of
the Audit of the Financial Statements
Honorable Mayor, Members
of the City Council and Management
City of Mendota Heights
Mendota Heights, Minnesota
In planning and performing our audit of the financial statements of the governmental activities,
business-type activities, each major fund, and the aggregate remaining fund information of the City of
Mendota Heights, Minnesota, as of and for the year ended December 31, 2020, 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, 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 over financial reporting.
Our consideration of internal control was for the limited purpose described in the preceding paragraph
and was not designed to identify all deficiencies in internal control that might be material weaknesses or
significant deficiencies and, therefore, material weaknesses or significant deficiencies may exist that
have not been identified. In addition, because of inherent limitations in internal control, including the
possibility of management override of controls, misstatements due to error, or fraud may occur and not
be detected by such controls. However, as discussed below, we identified a certain deficiency in internal
control that we consider to be a material weakness.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control over financial reporting, such that there is a reasonable
possibility that a material misstatement of the City's financial statements will not be prevented, or
detected and corrected, on a timely basis. A reasonable possibility exists when the likelihood of an event
occurring is either reasonably possible or probable as defined as follows:
Reasonably possible. The chance of the future event or events occurring is more than remote but
less than likely.
Probable. The future event or events are likely to occur.
The material weakness identified is stated within this letter.
2
A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less
severe than a material weakness, yet important enough to merit attention by those charged with
governance.
The accompanying memorandum also includes financial analysis provided as a basis for discussion. The
matters discussed herein were considered by us during our audit and they do not modify the opinion
expressed in our Independent Auditor's Report dated June 2, 2021, on such statements.
This communication is intended solely for the information and use of management, the City Council,
others within the City and state oversight agencies and is not intended to be, and should not be, used by
anyone other than these specified parties.
Minneapolis, Minnesota
June 2, 2021
3
City of Mendota Heights
Material Weakness
Lack of Segregation of Accounting Duties
The City had a lack of segregation of accounting duties due to a limited number of office employees.
The lack of adequate segregation of accounting duties could adversely affect the City's ability to initiate,
record, process, and report financial data consistent with the assertions of management in the financial
statements. This lack of segregation of accounting duties can be demonstrated in the following areas,
which is not intended to be an all-inclusive list:
The Finance Director has the ability to receipt City service revenue, prepares the deposit receipts,
is responsible for coding, and prepares the Treasurer's report for the City Council.
The Utility Billing Clerk enters consumption into the utility billing system, prepares and reviews
utility bills, applies payments to customer accounts, and has the ability to make adjustments to
customer accounts.
The Finance Director performs year-end reconciliations and prepares closing entries without
review.
In addition to having responsibilities in the cycles listed above, the City's Finance Director has full
general ledger access and the ability to write and post journal entries. While we believe this access is
necessary to efficiently perform the financial duties required, this access allows the ability to override
many of the controls and segregation the City has in place.
The City has implemented certain controls to mitigate the risk due to the lack of segregation of
accounting duties, including but not limited to reviewing adjustments to customer accounts before they
are posted, having a non-finance employee prepare bank reconciliations and review of all journal entries.
However, due to the number of staff needed to properly segregate all of the accounting duties, the cost
of obtaining desirable segregation of accounting duties can often exceed benefits which could be
derived. However, management and the City Council must remain aware of this situation and should
continually monitor the accounting system, including changes that occur.
During the course of our engagement, we proposed a material audit adjustment that would not have been
identified as a result of the City's existing internal control system and, therefore, could have resulted in a
material omission of the City's financial statements. The material omission detected as a result of audit
procedures was corrected by management.
We recommend that the City review the internal control process over the year-end closing process to
ensure there are no material audit adjustments needed and segregation or independent review be
implemented whenever practical and cost effective.
4
City of Mendota Heights
Required Communication
We have audited the financial statements of the governmental activities, business-type activities, each
major fund, and the aggregate remaining fund information of the City as of and for the year ended
December 31, 2020. Professional standards require that we advise you of the following matters related
to our audit.
Our Responsibility in Relation to the Financial Statement Audit
As communicated in our engagement letter, our responsibility, as described by professional standards, is
to form and express opinions about whether the financial statements prepared by management with your
oversight are presented fairly, in all material respects, in accordance with accounting principles
generally accepted in the United States of America. Our audit of the financial statements does not
relieve you or management of its respective responsibilities.
Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain
reasonable, rather than absolute, assurance about whether the financial statements are free of material
misstatement. An audit of financial statements includes consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for
the purpose of expressing an opinion on the effectiveness of the City's internal control over financial
reporting. Accordingly, as part of our audit, we considered the internal control of the City solely for the
purpose of determining our audit procedures and not to provide any assurance concerning such internal
control.
We are also responsible for communicating significant matters related to the audit that are, in our
professional judgement, relevant to your responsibilities in overseeing the financial reporting process.
However, we are not required to design procedures for the purpose of identifying other matters to
communicate to you.
Generally accepted accounting principles provide for certain Required Supplementary Information (RSI)
to supplement the basic financial statements. Our responsibility with respect to the RSI, which
supplements the basic audit financial statements, is to apply certain limited procedures in accordance
with generally accepted auditing standards. However, the RSI was not audited and, because the limited
procedures do not provide us with sufficient evidence to express an opinion or provide any assurance,
we do not express an opinion or provide any assurance on the RSI.
Our responsibility for the supplementary information accompanying the financial statements, as
described by professional standards, is to evaluate the presentation of the supplementary information in
relation to the financial statements as a whole and to report on whether the supplementary information is
fairly stated, in all material respects, in relation to the financial statements as a whole.
Our Responsibility in Relation to Government Auditing Standards
As communicated in our engagement letter, part of obtaining reasonable assurance about whether the
financial statements are free of material misstatement, we performed tests of the City's compliance with
certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which
could have a direct and material effect on the determination of financial statement amounts. However,
the objective of our tests was not to provide an opinion on compliance with such provisions.
5
City of Mendota Heights
Required Communication
Our Responsibility in Relation to Title 2 U.S. Code of Federal Regulations Part 200, Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards
(Uniform Guidance)
As communicated in our engagement letter, in accordance with the Uniform Guidance, we examined, on
a test basis, evidence about the City's compliance with the types of compliance requirements described
in the U.S. Office of Management and Budget (OMB) Compliance Supplement applicable to each of its
major federal programs for the purpose of expressing an opinion on the City's compliance with those
requirements. While our audit provided a reasonable basis for our opinion, it did not provide a legal
determination on the City's compliance with those requirements.
In planning and performing our audit of compliance, we considered the City's internal control over
compliance with the types of requirements that could have a direct and material effect on each major
federal program to determine the auditing procedures that are appropriate in the circumstances for the
purpose of expressing an opinion on compliance for each major federal program and to test and report
on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose
of expressing an opinion on the effectiveness of internal control over compliance.
Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously communicated to
you.
Compliance with All Ethics Requirements Regarding Independence
The engagement team, others in our firm, as appropriate, our firm, and our network firms have complied
with all relevant ethical requirements regarding independence.
Qualitative Aspects of Significant Accounting Practices
Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary of the
significant accounting policies adopted by the City is included in the notes to financial statements. There
have been no initial selection of accounting policies and no changes to significant accounting policies or
their application during 2020. No matters have come to our attention that would require us, under
professional standards, to inform you about (1) the methods used to account for significant unusual
transactions and (2) the effect of significant accounting policies in controversial or emerging areas for
which there is a lack of authoritative guidance or consensus.
Significant Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by management and are
based on management's current judgements. Those judgements are normally based on knowledge and
experience about past and current events and assumptions about future events. Certain accounting
estimates are particularly sensitive because of their significance to the financial statements and because
of the possibility that future events affecting them may differ markedly from management's current
judgements. Listed on the following page are the most sensitive estimates affecting the financial
statements:
6
City of Mendota Heights
Required Communication
Qualitative Aspects of Significant Accounting Practices (Continued)
Depreciation – The City is currently depreciating its capital assets over their estimated useful lives,
as determined by management, using the straight-line method.
Expense Allocation – Certain expenses are allocated to functions based on an estimate of the benefit
to that particular function. Examples are salaries, benefits, insurance, and supplies.
Total Other Post Employment Benefits (OPEB) Liability, Deferred Outflows of Resources Related
to OPEB, and Deferred Inflows of Resources Related to OPEB – These balances are based on an
actuarial study using the estimates of future obligations of the City for post employment benefits.
Net Pension Liability, Deferred Outflows of Resources Related to Pensions and Deferred Inflows of
Resources Related to Pensions – These balances are based on an allocation by the pension plans
using estimates based on contributions.
We evaluated the key factors and assumptions used to develop the accounting estimates and determined
that they are reasonable in relation to the financial statements taken as a whole and in relation to the
applicable opinion units.
Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment and are particularly sensitive
because of their significance to financial statement users. The financial statement disclosures are neutral,
consistent, and clear.
Significant Difficulties Encountered during the Audit
We encountered no significant difficulties in dealing with management relating to the performance of
the audit.
Uncorrected and Corrected Misstatements
For the purposes of this communication, professional standards require us to accumulate all known
and likely misstatements identified during the audit, other than those that we believe are trivial, and
communicate them to the appropriate level of management. Further, professional standards require
us to also communicate the effects of uncorrected misstatements related to prior periods on the
relevant classes of transactions, account balances or disclosures, and the financial statements taken
as a whole and each applicable opinion unit. Management did not identify and we did not notify
them of any uncorrected financial statement misstatements
In addition, professional standards require us to communicate to you all material, corrected
misstatements that were brought to the attention of management as a result of our audit procedures. The
following material misstatement that we identified as a result of our audit procedures was brought to the
attention of and corrected by management.
Land held for resale was understated
7
City of Mendota Heights
Required Communication
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a
matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or
auditing matter, which could be significant to the City's financial statements or the auditor's report.
No such disagreements arose during the course of our audit.
Representations Requested from Management
We have requested certain written representations from management, which are included in the
management representation letter.
Management's Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and
accounting matters. Management has informed us that, and to our knowledge, there were no
consultations with other accountants regarding auditing and accounting matters.
Other Significant Matters, Findings, or Issues
In the normal course of our professional association with the City, we generally discuss a variety of
matters, including the application of accounting principles and auditing standards, operating and
regulatory conditions affecting the City, and operating plans and strategies that may affect the risks of
material misstatement. None of the matters discussed resulted in a condition to our retention as the City's
auditor.
Other Information in Documents Containing Audited Financial Statements
We applied certain limited procedures to the RSI that supplements the basic financial statements. Our
procedures consisted of inquiries of management regarding the methods of preparing the information
and comparing the information for consistency with management's responses to our inquiries, the basic
financial statements, and other knowledge we obtained during our audit of the basic financial statements.
We did not audit the RSI and do not express an opinion or provide any assurance on the RSI.
With respect to the supplementary information accompanying the financial statements, we made
certain inquiries of management and evaluated the form, content and methods of preparing the
information to determine that the information complies with accounting principles generally
accepted in the United States of America, the method of preparing it has not changed from the prior
period, and the information is appropriate and complete in relation to our audit of the financial
statements. We compared and reconciled the supplementary information to the underlying
accounting records used to prepare the financial statements or to the financial statements themselves.
City of Mendota Heights
Financial Analysis
8
The following pages provide graphic representation of select data pertaining to the financial position and
operations of the City for the past four years. Our analysis of each graph is presented to provide a basis
for discussion of past performance and how implementing certain changes may enhance future
performance. We suggest you view each graph and document if our analysis is consistent with yours. A
subsequent discussion of this information should be useful for planning purposes.
General Fund Revenues
The General Fund revenues for the past five years are depicted in the following graph.
2016 2017 2018 2019 2020
Other $183,925 $412,770 $352,191 $509,614 $412,446
Charges for Services 608,150 621,308 643,095 716,877 677,925
Intergovernmental 457,010 424,268 469,417 529,235 1,435,730
Licenses and Permits 414,516 633,846 515,103 480,249 405,376
Taxes and Assessments 6,143,871 6,653,433 7,237,908 7,509,301 7,959,743
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
General Fund Revenues
General Fund revenue increased $1,145,944, or 11.8%, during the year, from $9,745,276 in 2019 to
$10,891,220 in 2020. The largest fluctuation occurred in Intergovernmental, which increased $906,495
due to the City receiving CARES grant funding in 2020. Taxes and assessments increased $450,442 due
to an increase in the amount of taxes levied in 2020. Other revenue decreased $97,168 due to a
decreased amount of interest received on investments related to worsening market conditions in 2020.
License and permit revenue decreased $74,873 due to decreased permit and liquor license revenue due
to COVID-19. All other revenue sources were consistent with the prior year.
City of Mendota Heights
Financial Analysis
9
General Fund Revenues (Continued)
Taxes and
Assessments
73%
Licenses and
Permits
4%
Intergovernmental
13%
Charges for
Services
6%
Other
4%
Taxes and
Assessments
77%
Licenses and
Permits
5%
Intergovernmental
6%
Charges for
Services
7%
Other
5%
City of Mendota Heights
Financial Analysis
10
General Fund Expenditures
The General Fund expenditures for the past five years are depicted in the following graph.
2016 2017 2018 2019 2020
Capital Outlay $89,688 $32,869 $19,330 $- $2,478
General Government 1,398,786 1,516,906 1,609,931 1,676,334 1,890,278
Public Works 1,895,327 2,184,378 2,464,014 2,645,909 2,632,290
Public Safety 3,870,487 3,879,402 4,151,895 4,607,105 4,885,438
$-
$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
General Fund expenditures increased $481,136, or 5.4%, from $8,929,348 in 2019 to $9,410,484 in
2020. Public safety increased the most from 2019, increasing $278,333, or 6.0%. This increase is due to
cost of living adjustments as well as technology costs for the new fire station. General government
expenditures increased $213,944, or 12.8% due to CARES grant expenditures as well as hiring an
additional staff member in 2020. All other functions were consistent with the amount expended in the
prior year.
City of Mendota Heights
Financial Analysis
11
General Fund Expenditures (Continued)
General
Government
20%
Public Safety
52%
Public Works
28%Capital Outlay
Less than 1%
General
Government
19%
Public Safety
51%
Public Works
30%Capital Outlay
Less than 1%
City of Mendota Heights
Financial Analysis
12
General Fund Expenditures (Continued)
The table below presents a comparison of budget and actual General Fund revenues and expenditures by
function. In total, the fund's expenditures were $389,087, or 4.0%, under budgeted expenditures of
$9,799,571. The fund's revenue was $1,139,199, or 11.7%, over budgeted revenues of $9,752,021.
Public Safety expenditures were under budget by $311,123. This was due to the police staffing turnover
causing vacancies and variations in personnel levels. Public works expenditures were $146,965 under
budget due to fewer crack sealing and road repairs than anticipated. All other functions were consistent
with the budgeted amounts.
Intergovernmental revenue was over budget $969,660 due to not budgeting for the receipt of the CARES
grant. Other revenue was over budget by $183,446 due to the City not budgeting for cable franchise
fees, donations, and insurance claims. Additionally, the City had a conservative budget for interest
income, fines, and forfeitures.
Variance
Original and Final Budget -
Final Budget Amounts Over (Under)
Revenues
Taxes and assessments 7,941,373$ 7,959,743$ 18,370$
Licenses and permits 384,700 405,376 20,676
Intergovernmental 466,070 1,435,730 969,660
Charges for services 730,878 677,925 (52,953)
Other 229,000 412,446 183,446
Total revenues 9,752,021 10,891,220 1,139,199
Expenditures
General government 1,823,755 1,890,278 66,523
Public safety 5,196,561 4,885,438 (311,123)
Public works 2,779,255 2,632,290 (146,965)
Capital outlay - 2,478 2,478
Total expenditures 9,799,571 9,410,484 (389,087)
Other financing sources (uses)
Transfers in 47,550 47,550 -
Transfers out - (196,660) (196,660)
Total other financing sources (uses) 47,550 (149,110) (196,660)
Net change in fund balances -$ 1,331,626$ 1,331,626$
City of Mendota Heights
Financial Analysis
13
General Fund Operations
The bar chart below highlights General Fund results for the last five years.
80%
100%
120%
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
2016 2017 2018 2019 2020
Revenues $7,807,472 $8,745,625 $9,217,714 $9,745,276 $10,891,220
Expenditures 7,254,288 7,613,555 8,245,170 8,929,348 9,410,484
Fund Balance 7,221,257 8,087,498 8,836,600 9,352,885 10,684,511
Fund Balance as a Percent
of the Year's Expenditures 100% 106% 107% 105% 114%
As shown in the chart, the City's fund balance increased to its highest point in the five years presented.
The amount of fund balance as a percentage of the current year's expenditures has increased steadily
since 2016. In 2017, the City implemented a policy in accordance with GASB 54 whereby the General
Fund's unassigned fund balance is at least 75% of the subsequent year's budgeted expenditures. As of
December 31, 2020, the City's unassigned General Fund balance of $10,330,546 was 106% of 2021
budgeted expenditures.
City of Mendota Heights
Financial Analysis
14
Tax Capacity, Levy, and Rates
The chart below graphs the tax capacity, certified tax levy, and City tax rate for 2016 through 2020. The
tax capacity is based on total tax capacity, prior to adjustments for captured Tax Increment Financing
(TIF) and fiscal disparities. The certified tax levy amount is also prior to fiscal disparity adjustments.
With improving market values, the City's tax capacity increased from 2016 to 2020 by $5,179,091 or
23.5%. In 2020, the City's tax capacity increased $2,167,056.
$22,008,867 $22,381,347
$23,623,069 $25,020,902
$27,187,958
$7,166,136 $7,743,370 $8,348,491 $9,435,150 $10,048,724
35.35%37.49%37.83%39.29%38.32%
0.00%
4.00%
8.00%
12.00%
16.00%
20.00%
24.00%
28.00%
32.00%
36.00%
40.00%
44.00%
48.00%
52.00%
56.00%
60.00%
64.00%
68.00%
$-
$2,500,000
$5,000,000
$7,500,000
$10,000,000
$12,500,000
$15,000,000
$17,500,000
$20,000,000
$22,500,000
$25,000,000
$27,500,000
$30,000,000
2016 2017 2018 2019 2020
Total Tax Capacity Certified Tax Levy Tax Capacity Rate
* Property tax data was obtained from the League of Minnesota Cities Property Tax Data Tables
for 2016-2017 (www.lmc.org). 2018-2020 data obtained from Dakota County.
City of Mendota Heights
Financial Analysis
15
Enterprise Funds
Sewer Utility Fund
The following graph presents a five-year history of the Sewer Utility Fund. Due to the nature and cost of
Sewer Utility Fund assets, it is often difficult to establish sewer rates that are sufficient to cover the
current year's use of the assets represented by depreciation expense. Ideally, Sewer Utility Fund
revenues should cover all operating expenses, including depreciation.
The Sewer Utility Fund had an operating income of $293,349, which included recognition of $200,912
of depreciation expense. Revenues exceeded expenses in four of the five years presented. Net position of
the fund increased $317,470 after factoring in nonoperating revenues, and net transfers.
2016 2017 2018 2019 2020
Charges for Services $1,692,646 $1,749,743 $2,012,107 $2,045,839 $2,317,640
Operating Expenses 1,683,068 1,930,921 1,954,960 2,001,963 2,024,291
Operating Income (Loss)9,578 (181,178) 57,147 43,876 293,349
Operating Income (Loss)
Excluding Depreciation 182,559 (6,704) 240,509 230,990 494,261
$(250,000)
$250,000
$750,000
$1,250,000
$1,750,000
$2,250,000
$2,750,000
Sewer Fund
City of Mendota Heights
Financial Analysis
16
Enterprise Funds (Continued)
Storm Water Fund
The Storm Water Fund had operating income of $352,958, which included recognition of depreciation
expense of $51,283. Net position increased $291,444 in 2020 after factoring in nonoperating revenues
and transfers out. The fund has shown operating income for all years presented.
$-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
2016 2017 2018 2019 2020
Charges for Services $406,144 $456,503 $501,173 $507,769 $578,799
Operating Expenses 266,476 255,338 285,058 275,606 225,841
Operating Income (Loss)139,668 201,165 216,115 232,163 352,958
Operating Income (Loss) Excluding
Depreciation 180,241 244,029 268,841 279,127 404,241
Storm Water Fund
City of Mendota Heights
Emerging Issue
17
Executive Summary
The following is an executive summary of financial and business related updates to assist you in staying
current on emerging issues in accounting and finance. This summary will give you a preview of the new
standards that have been recently issued and what is on the horizon for the near future. The most recent
and significant update includes:
Accounting Standard Update – GASB Statement No. 87 – Leases – GASB has issued GASB
Statement No. 87 relating to accounting and financial reporting for leases. This new statement
establishes a single model for lease accounting based on the principle that leases are financing of
the right to use an underlying asset.
The following is an extensive summary of the current update. As your continued business partner, we
are committed to keeping you informed of new and emerging issues. We are happy to discuss this issue
with you further and their applicability to your City.
Accounting Standard Update – GASB Statement No. 87 – Leases
The objective of this Statement is to better meet the information needs of financial statement users by
improving accounting and financial reporting for leases by governments. This Statement increases the
usefulness of governments' financial statements by requiring 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, thereby enhancing the relevance and consistency of information about
governments' leasing activities.
A lease is defined as a contract that conveys control of the right to use another entity's nonfinancial asset
(the underlying asset) as specified in the contract for a period of time in an exchange or exchange-like
transaction. Examples of nonfinancial assets include buildings, land, vehicles, and equipment. Any
contract that meets this definition should be accounted for under the leases guidance, unless specifically
excluded in this Statement.
A short-term lease is defined as a lease that, at the commencement of the lease term, has a maximum
possible term under the lease contract of 12 months (or less), including any options to extend, regardless
of their probability of being exercised. Lessees and lessors should recognize short-term lease payments
as outflows of resources or inflows of resources, respectively, based on the payment provisions of the
lease contract.
City of Mendota Heights
Emerging Issue
18
Accounting Standard Update – GASB Statement No. 87 – Leases (Continued)
A lessee should recognize a lease liability and a lease asset at the commencement of the lease term,
unless the lease is a short-term lease or it transfers ownership of the underlying asset. The lease liability
should be measured at the present value of payments expected to be made during the lease term (less any
lease incentives). The lease asset should be measured at the amount of the initial measurement of the
lease liability, plus any payments made to the lessor at or before the commencement of the lease term
and certain direct costs. A lessee should reduce the lease liability as payments are made and recognize
an outflow of resources (for example, expense) for interest on the liability. The lessee should amortize
the lease asset in a systematic and rational manner over the shorter of the lease term or the useful life of
the underlying asset. The notes to financial statements should include a description of leasing
arrangements, the amount of lease assets recognized, and a schedule of future lease payments to be
made.
A lessor should recognize a lease receivable and a deferred inflow of resources at the commencement of
the lease term, with certain exceptions for leases of assets held as investments, certain regulated leases,
short-term leases, and leases that transfer ownership of the underlying asset. A lessor should not
derecognize the asset underlying the lease. The lease receivable should be measured at the present value
of lease payments expected to be received during the lease term. The deferred inflow of resources
should be measured at the value of the lease receivable plus any payments received at or before the
commencement of the lease term that relate to future periods. A lessor should recognize interest revenue
on the lease receivable and an inflow of resources (for example, revenue) from the deferred inflows of
resources in a systematic and rational manner over the term of the lease. The notes to financial
statements should include a description of leasing arrangements and the total amount of inflows of
resources recognized from leases.
GASB Statement No. 87 is effective for reporting periods beginning after June 15, 2021.
Information provided above was obtained from www.gasb.org.
REQUEST FOR COUNCIL ACTION
DATE: June 15, 2021
TO: Mayor, City Council, and City Administrator
FROM: Ryan Ruzek, P.E., Public Works Director
SUBJECT: Acknowledge Dakota County Master Gardener 2021 Work Plan
COMMENT:
INTRODUCTION
The Council is asked to acknowledge the work plan from local master gardeners.
BACKGROUND
The city of Mendota Heights and the University of Minnesota Master Gardeners, in partnership,
will promote pollinator friendly activities and sustainable and regenerative ecological practices
through practice, public engagement, and education.
The mission of the Dakota County Extension Master Gardener program is to educate and assist
the public by answering questions and solving problems about horticulture and related
environmental topics. There are more than 130 Dakota County residents who are University of
Minnesota Extension-trained and volunteer thousands of hours each year. In Mendota Heights,
the Master Gardeners have been instrumental in incorporating a number of natural resources
improvements on both public and private property.
DISCUSSION
The mission locally is to promote pollinator friendly activities and sustainable ecological
practices through public engagement and education.
Some current goals for 2021 (subject to change due to COVID protocols) include:
• Engage Public at the Mendota Heights Park Celebration
• Showcase/Education day for native plantings at city hall
• Review Development Landscape plans and provide opportunities for enhancement
with city CIP projects
• Educational workshops for city employees, school district and residents
• Educational articles for city newsletters
• Continue Natural Resource Management Plan Steering Committee
• Assist in development of Natural Resource Commission bylaws
The attached work plan provides additional details and services.
BUDGET IMPACT
Master Gardeners volunteer many hours of time. Potential costs to the city are limited to the city
undertaking natural resource improvements which are funded through project budgets, levy
budgets, utility funds, and grants.
RECOMMENDATION
Staff recommends that City Council acknowledge the Master Gardener 2021-2022 work plan.
ACTION REQUIRED
For informational purposes although comments are welcomed.
DRAFT Work Plan for Pollinator Friendly Activities 2021-2022 City of Mendota Heights, MN
*Due to Covid19 Pandemic all items marked (TBD) will depend on approval/safety protocols
1. Mission
- Promote pollinator friendly activities and sustainable/regenerative ecological practices through public engagement and
education
- City of MH partner with U of MN Master Gardeners-Dakota County for expertise, assistance, and educational materials
2. Current Goals 2021- early 2022
- Master Gardeners to engage public at Mendota Heights annual Park Celebration- (TBD)
o Master Gardeners answer questions, provide education/guidance on pollinators, native species, wetlands, and
landscape management
o Master Gardeners provide materials identifying pollinator types, pesticides/insecticides to avoid, invasive plant
lists, etc.
o City to promote the Pollinator Designation and activities already completed
Pilot Knob Restoration
Victoria Road Pilot Project
Current Park Management Policy
Annual invasive species removal
- City Hall Native Planting Showcase/Education day (TBD)
o Master Gardeners to show the native plantings at City Hall, how the area contributes to pollinator habitat, water
management, reduced maintenance, and to share possible steps for homeowners
- Preserve and protect existing native plantings while identifying opportunities for additional native plantings
o City & MGs collaborate on areas within upcoming projects (street, erosion control, streambank stabilization, Park
restoration, trails etc.)
o City & MGs evaluate Buffer zones around MH ponds for invasive species removal & plan for buffer
o City to continue with mowing efforts:
-Initial mowing to begin 2 weeks+ later to allow clover for pollinators
-Ball fields shorter according to specifications, rest of turf longer
-Mow & remove vegetation Victoria Rd 1x in Spring
- Developer Landscape Proposals to be reviewed by Master Gardeners for plant species, pollinator friendly,
sustainable/regenerative landscaping, etc.
- Educational workshops for City employees
o Continue education of best management practices for developed and undeveloped public land
o Master Gardeners to conduct workshops (TBD)
- Additional Education Events for Residents
o Workshop at City Hall, City Hall garden, or Victoria Rd (TBD)
-Master Gardeners to present workshop on sustainable/regenerative landscaping, native & pollinator friendly
plantings, etc (TBD)
- Heights Highlights articles provided by Master Gardeners for each edition
- Continue Steering Committee Work on the Update of the Natural Resource Management Plan
- Assist with maintenance/new plantings etc of City Hall Gardens & Victoria Rd (TBD)
- Education & consultation with ISD 197- Master Gardeners to continue working with ISD 197 (remotely for 2021)
- Assist City in establishing bylaws for future Natural Resources Commission
3. Potential Long Term Goals (2022 and beyond)
- Develop future projects/events between the Master Gardeners and the City
o Engage Visitation & STA in order to provide education similar to ISD 197
o Re-establish native garden at Victoria Highlands Park
o Remove Invasive Plant Species
o Incorporate pollinator friendly plantings/regenerative landscapes & activities into future capital projects where
applicable
- Update city website with Master Gardeners to provide research based info and articles for residents
REQUEST FOR COUNCIL ACTION
DATE: June 15, 2021
TO: Mayor, City Council, and City Administrator
FROM: Ryan Ruzek, P.E., Public Works Director
SUBJECT: Resolution 2021-44 Public Hearing on Pine Creek Estates Easement Vacation
COMMENT:
INTRODUCTION
The Council is asked to hold proceedings for Resolution 2021-44, a public hearing on an
easement vacation commenced by petition.
BACKGROUND
The Pine Creek Estates plat was approved by City Council in 1992. Outlot A within the plat was
granted to the adjacent land owner (Peterson). The Petersons applied for a preliminary plat
(Moehn Addition) of their combined properties, including Outlot A, which was approved on July
21, 2020.
DISCUSSION
Prior to approving a final plat of the Moehn Addition, now Audrey Addition, the existing
easements on Outlot A will need to be vacated. New easements will be granted on the final
Audrey Addition Plat.
BUDGET IMPACT
The costs for this vacation will include a mailing to all parcels within 350 feet of the plat
boundary and recording of the document at Dakota County.
The costs of the mailing are included in the Final Plat application.
RECOMMENDATION
Staff recommends that Council approve the resolution for the easement vacation.
ACTION REQUIRED
Staff recommends that the City Council pass a motion adopting Resolution No. 2021-44,
“RESOLUTION APPROVING AN EASEMENT VACATION WITHIN PINE CREEK
ESTATES”. This action requires a simple majority vote.
CITY OF MENDOTA HEIGHTS
DAKOTA COUNTY, MINNESOTA
RESOLUTION 2021 - 44
RESOLUTION APPROVING AN EASEMENT VACATION
WITHIN OUTLOT A, BLOCK 1, PINE CREEK ESTATES
WHEREAS, Outlot A, Block 1, Pine Creek Estates exist in Dakota County, Minnesota; and
WHEREAS, Platted drainage and utility easements on Outlot A, Block 1, Pine Creek Estates
are not required for drainage and utility purposes; and
WHEREAS, Outlot A, Block 1, Pine Creek Estates is proposed to be platted as Audrey
Addition dedicating additional drainage and utility easements; and
WHEREAS, a notice of hearing on said vacation has been duly published and posted more
than two weeks before the date scheduled for the hearing on said vacation, all in accordance with the
applicable statutes; and
WHEREAS, a public hearing was held on said vacation on June 15, 2021, at the City Hall of
Mendota Heights; and
WHEREAS, the City Council then proceeded to hear all persons interested in said vacation
and all persons were afforded an opportunity to present their views and objections to the granting of
said vacation.
NOW THEREFORE, BE IT RESOLVED, by the City Council of the City of Mendota
Heights, Minnesota, as follows:
1. That the vacation of the drainage and utility easement within Outlot A, Block 1, Pine
Creek Estates situated in the City of Mendota Heights is in the best interest of the public
and the City, and it is not detrimental to the health, safety and welfare of the community.
2. That the above described drainage and utility easement be and the same is hereby
vacated.
3. That the City Clerk be and is hereby authorized and directed to prepare and present to the
proper Dakota County officials notice of completion of these vacation proceedings, all in
accordance with the applicable Minnesota Statutes.
Adopted by the City Council of the City of Mendota Heights this 15th day of June, 2021.
CITY COUNCIL
CITY OF MENDOTA HEIGHTS
ATTEST ________________________________
Stephanie Levine, Mayor
________________________________
Lorri Smith, City Clerk
Request for City Council Action
MEETING DATE:June 15, 2021
TO:Mayor Levine and City Council; City Administrator McNeill
FROM:Tim Benetti, Community Development Director
SUBJECT:Resolution No. 2021-50 Approving the Final Plat of AUDREY ADDITION
(f/k/a Moehn Addition) 1770 Dodd Road [Planning Case No. 2020-10]
Introduction
City Council is asked to consider adopting a resolution approving the final plat of a new subdivision titled
“Audrey Addition”. The owner and developer is Sean Doyle of Lakes, LLC.
Background
The subject property is generally located on the east side of Dodd Road near the mid-point between Marie
Avenue and Hidden Creek Trail, addressed as 1770 Dodd Rod. The property consists of 2.24 acres, with a
large section of the back-yard area impacted by a wooded wetland and Marie Creek.
On July 21, 2020, Mr. Fred Peterson appeared before the City Council to present the preliminary plat of
Moehn Addition, which proposed subdividing his property into three (3) new single-family residential lots.
The plat also included a variance to allow the two rear lots to have frontage (access) on the existing private
driveway, and not a public roadway as required by Code. The Council accepted the preliminary plat layout
and design, along with the related variance by adopting Resolution No. 2020-41.
In late December 2020, and before the final plat was completed, Mr. Peterson unexpectedly passed away.
His death initiated an immediate response by city staff to begin working with Mrs. Peterson’s attorney and
friends to find a new buyer or developer of the property. In March 2021, after sending out a number of
notices and inquiries to local developers and real estate professionals, Mr. Doyle responded and later
worked out a purchase agreement with Mrs. Peterson, and has now taken ownership of the subject property.
There are no changes or revisions from the original preliminary plat, except for the plat name to Audrey
Addition. Mr. Doyle plans to keep the old Peterson home for now; build two new homes on Lots 2 and 3;
and agrees to the existing conditions of approval adopted under Res. No. 2020-41. These conditions are
memorialized in the proposed final plat resolution, and will be part of the separate Developers Agreement
to be executed later between the City of Mendota Heights and Lakes, LLC (Sean Doyle).
Action Required
Adopt RESOLUTION NO. 2021-50 APPROVING THE FINAL PLAT OF AUDREY ADDITION
LOCATED AT 1770 DODD ROAD. This matter requires a simple majority vote.
Attachments
x Final Plat Map of Audrey Addition (f/k/a Moehn Addition)
x Resolution No. 2021-50 Approve Final Plat of Audrey Addition
x Resolution No. 2020-41 (adopted 07/21/2020)
Resolution No. 2021-50 Page 1
CITY OF MENDOTA HEIGHTS
DAKOTA COUNTY, MINNESOTA
RESOLUTION 2021-50
RESOLUTION APPROVING A FINAL PLAT OF AUDREY ADDITION
(f/k/a MOEHN ADDITION) LOCATED AT 1770 DODD ROAD
(PLANNING CASE NO. 2020-10)
WHEREAS,under Planning Case No. 2020-10, Frederick and Beverly Peterson (the
“Petersons”) applied for a new preliminary plat to subdivide their property located at 1770 Dodd
Road (the “Subject Property”), which is legally described in attached Exhibit A; and
WHEREAS, Title 11-1-1 of the City Code (Subdivision Regulations) allows the
subdivision of properties, provided the resulting lots are compliant with the requirements of the
applicable zoning district; and
WHEREAS, the Petersons requested approval under Planning Case No. 2020-10 to
subdivide the subject property into three (3) new single-family residential zoned lots, which
included a variance to allow the two rear lots to have frontage or access on an existing private
[shared] driveway serving the subject property, which was presented under a new subdivision plat
to be titled “Moehn Addition”, as illustrated and described on attached Exhibit B; and
WHEREAS,on July 21, 2020, the City Council of Mendota Heights adopted Resolution
No. 2020-41, which approved the preliminary plat of Moehn Addition and its related variance with
certain findings-of-facts and conditions of approval; and
WHEREAS,prior to the preparation and completion of the final plat, the Petersons sold
the subject property to Sean Doyle of Lakes, LLC (the “Developer”), in order for the new
developer to complete the single-family development of the subject property.
NOW THEREFORE BE IT RESOLVED by the Mendota Heights City Council that the
original plat name of Moehn Addition is revised to Audrey Addition, and the final plat of Audrey
Addition as illustrated and described on attached Exhibit C, is hereby approved with the same
findings-of-fact and conditions as those memorialized in Resolution No. 2020-41, which are
hereby considered fully incorporated into this resolution.
BE IT FURTHER RESOLVED by the Mendota Heights City Council that the Final Plat
of Audrey Addition, along with its related variance as proposed under Planning Case No. 2020-
10, is hereby approved with the following conditions:
1. Park dedication fee in the amount of $4,000.00 for each lot (Lot 2 and 3 only) shall
be paid prior to the final plat recorded by Dakota County or issuance of any new
building permits by the City.
2. Final layouts and setbacks for each lot must meet current R-1 One Family
Residential district standards and shall be approved under separate building permits
for each lot.
Resolution No. 2021-50 Page 2
3. No unauthorized development, grading, removal or construction activity will be
allowed in the 25-foot wetland buffer shown on Lot 3 of the plat.
4. All new stormwater management, construction and grading activities for these lots
will be in compliance with applicable federal, state, and local regulations and codes,
as well as in compliance with the City’s Land Disturbance Guidance Document.
5. The wetland line on the plat should use the official delineated boundary Wetland
Delineation Report from Soil Investigations and Design, Inc., dated May 13, 2020.
6. A wetlands permit must be obtained prior to any proposed development activities
or new home permit activities on Lot 3.
7. The Developer agrees to either widen the private [shared] driveway to either
sixteen-feet (16’) which includes the provision each new dwelling for Lots 2 and 3
must be equipped with fire sprinklers, or to twenty-feet (20’) with no sprinkler
provisions; provide a turn-around on the driveway to accommodate fire truck
movements; and install an additional (new) fire hydrant near the end of the private
driveway; all noted in the Developers Agreement.
8. Residential construction hours are 7:00 AM to 8:00 PM on weekdays, and 9:00 AM
to 5:00 PM on weekends. These work hours shall be strictly adhered to by the
Applicant or future developer and/or contractors working on the subject properties.
9. Developer’s Agreement will be executed between Applicant and the City detailing
the responsibilities of current and/or future parties involved with the development
of the platted area, including (but not limited to) a detailed description of the private
driveway improvements, municipal utility installations, landscaping, stormwater
management, erosion control, and new dwelling and driveway placements.
Adopted by the City Council of the City of Mendota Heights this 15th day of June, 2021.
CITY COUNCIL
CITY OF MENDOTA HEIGHTS
Stephanie Levine, Mayor
ATTEST:
Lorri Smith, City Clerk
Resolution No. 2021-50 Page 3
EXHIBIT A
ADDRESS: 1770 Dodd Road, Mendota Heights, MN 55118
PID No.: 27-03800-49-010 and 27-57620-00-010
That part of the following described property: All that part of Lot 49, Auditor's Subdivision No. 3,
Mendota, according to the plat thereof on file and of record in the office of the Register of Deeds
in and for Dakota County, Minnesota, described as follows, to-wit: Commencing at a point on the
Easterly line of Jefferson Highway 145.8 feet Southwesterly from the Northwest corner of said Lot
49; thence running East parallel with the North line of said Lot 49, a distance of 310 feet; thence
South at right angles with said last described line, a distance of 40 feet; thence East parallel with
the North line of said Lot 49, 500.94 feet; thence South at right angles with said last described
line a distance of 90.3 feet; thence West parallel to the North line of said Lot 49, 865.2 feet to a
point on the Easterly line of Jefferson Highway; thence Northeasterly along the Easterly line of
Jefferson Highway to the point of beginning, including any portion of any street or alley adjacent
thereto, vacated or to be vacated.
And OUTLOT A, PINE CREEK ESTATES, according to the record plat thereof, Dakota County,
Minnesota.
Abstract Property
Drafted by: City of Mendota Heights
1101 Victoria Curve
Mendota Heights, MN 55118
Resolution No. 2021-50 Page 4
EXHIBIT B
Resolution No. 2021-50 Page 5
EXHIBIT C
FOR ILLUSTRATIVE PURPOSES ONLY
Resolution No. 2021-50 Page 6
EXHIBIT C
FOR ILLUSTRATIVE PURPOSES ONLY
REQUEST FOR COUNCIL ACTION
DATE: June 15, 2021
TO: Mayor, City Council, and City Administrator
FROM: Ryan Ruzek, P.E., Public Works Director
SUBJECT: Resolution 2021-53 Calling for a Public Hearing on Right-of-Way Vacation for
Eugenia Avenue
COMMENT:
INTRODUCTION
The Council is asked to approve Resolution 2021-53 calling for a public hearing on a right-of-
way vacation request by petition.
BACKGROUND
The city of Mendota Heights received a petition for vacating Eugenia Avenue right-of-way
between Hiawatha Avenue and Sibley Memorial Highway. A copy of the petition and plat are
attached which shows the areas of right-of-way that were dedicated for public use.
This right-of-way request has been presented to previous City Council in the early 1980’s and
most recently in 2009.
DISCUSSION
State Statute governs the procedure for vacating a public way. A petition for vacating a public
way requires signatures from a majority of the abutting land owners having an interest in the
land. In this case, the properties on Sutcliff Circle are not properties having an interest in the
land as the entire 30 feet of existing public right-of-way was dedicated from the two northern
properties.
When considering a vacation, a city is may vacate only if it is in the best interest of the public.
The Council may determine if this vacation is in the best interest of the public, the Council is
also not required to act on a vacation petition if they so desire.
Specific to this petition request, the Council should consider if this right-of-way may serve a
purpose in the future which if the right-of-way is vacated, would no longer be feasible. One
example would be if there was a trail along Sibley Memorial Highway, would this right-of-way
be able to serve a purpose of a neighborhood trail connection.
If the Council desires to proceed with the vacation, a drainage and utility easement would be
necessary for maintenance of existing private utilities. A second consideration would be if the
property along Sibley Memorial Highway would be able to subdivide due to this vacation.
If Council feels that this right-of-way may proceed to a public hearing, notices will be sent to all
properties in the Cherokee Heights Plat and all properties within 350 feet of this vacation
location. Staff does anticipate some opposition from abutting, non-interest properties. Minutes
from the May 5, 2009 City Council meeting are attached.
BUDGET IMPACT
The Mendota Heights fee schedule includes a required $250 application fee to cover mailing and
recording fees and staff time.
RECOMMENDATION
Staff recommends that Council approve the resolution calling for a public hearing if they agree
that vacation petition should proceed to the public hearing.
ACTION REQUIRED
Staff recommends that the City Council pass a motion adopting Resolution No. 2021-53,
“RESOLUTION CALLING FOR A PUBLIC HEARING ON AN EASEMENT
VACATION COMMENCED BY PETITION”. This action requires a simple majority vote.
CITY OF MENDOTA HEIGHTS
DAKOTA COUNTY, MINNESOTA
RESOLUTION 2021 - 53
RESOLUTION CALLING FOR A PUBLIC HEARING ON
AN EASEMENT VACATION COMMENCED BY PETITION
WHEREAS, the City Council, pursuant to Minnesota Statute §412.851, desires
to vacate a platted Eugenia Avenue from Sibley Memorial Highway to Hiawatha
Avenue (platted as Pierce Street), Cherokee Park Heights, Dakota County, Minnesota.
NOW THEREFORE, BE IT RESOLVED, the Mendota Heights City Council
will consider the vacation of right-of-way and a public hearing shall be held on such
proposed vacation on the 20th day of July, 2021, before the City Council in the Mendota
Heights City Hall located at 1101 Victoria Curve at 6:00 p.m.
The City Clerk is hereby directed to give published, posted, and mailed notice of such
hearing as required by law.
Adopted by the City Council of the City of Mendota Heights this fifteenth day of June,
2021.
CITY COUNCIL
CITY OF MENDOTA HEIGHTS
________________________________
ATTEST Stephanie Levine, Mayor
_________________________
Lorri Smith, City Clerk
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14210SUTCLIFF CIRSIBLEY MEMORIAL HWYHIAWATHA AVEEugenia Ave Right-of-Way Vacation
Date: 6/10/2021
City of
Mendota
Heights080
SCALE IN FEET
GIS Map Disclaimer:This data is for informational purposes only and should not be substituted for a true title search, property appraisal, plat,survey, or for zoning verification. The City of Mendota Heights assumes no legal responsibility for the information containedin this data. The City of Mendota Heights, or any other entity from which data was obtained, assumes no liability for any errorsor omissions herein. If discrepancies are found, please contact the City of Mendota Heights.
Contact "Gopher State One Call" at 651-454-0002 for utility locations, 48 hours prior to any excavation.