2018-06-19 Council Packet CITY OF MENDOTA HEIGHTS
CITY COUNCIL AGENDA
June 19, 2018 — 7:00 pm
Tj Mendota Heights City Hall
1. Call to Order
2. Roll Call
3. Pledge of Allegiance
4. Adopt Agenda
5. Recognitions
a. Recognition of City Attorney Tom Lehmann
b. Swearing In — Police Department
6. Consent Agenda
a. Approval of May 30, 2018 City Council Special Meeting Minutes
b. Approval of May 30, 2018 Council Work Session Minutes
c. Approval of June 5, 2018 City Council Minutes
d. Acknowledge April 10, 2018 Parks and Recreation Commission Meeting Minutes
e. Approve the Change of Certain Regularly Scheduled City Council Meeting Dates or Times
f. Acknowledge Par 3 May Update and Financial Report
g. Approval of Resolution 2018-42, Appointing Election Judges
h. Approve Out of State Travel Request-City Administrator
i. Approve Out of State Travel Request- Fire Chief
j. Approval of Resolution 2018-41, Accepting Donations for City Events
k. Request Intersection Improvement be Added to Dakota County CIP
I. Approve Purchase Order for Playground Surfacing Material
m. Approval of Resolution 2018-43, Authorizing the Donation of Bicycles to Rick's Bike Sale
n. Approve April 2018 Treasurer's Report
o. Approval of Claims List
7. Citizen Comment Period (for items not on the agenda)
*See guidelines below
8. Presentations
a. Presentation of the 2017 Audit – Matt Mayer, BerganKDV
9. Public Hearings - none
10. New and Unfinished Business
a. Ordinance No. 527 & 528 Renaming Freeway Road North and South
b. Ordinance No. 526 Sexual Predator and Offenders Residency Restrictions
11. Community Announcements
12. Council Comments
13. 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.”
A PROCLAMATION RECOGNIZING AND HONORING
THOMAS R. LEHMANN
FOR SERVICE AS CITY ATTORNEY
CITY OF MENDOTA HEIGHTS, MINNESOTA
WHEREAS, on May 21, 2013, the City Council of Mendota Heights appointed the law firm of Eckberg
Lammers to provide legal service to the City; and
WHEREAS, Thomas R. Lehmann began serving as City Attorney for the City on June 18, 2013; and
WHEREAS, since that time Thomas R. Lehmann has provided the City Council and staff of the City of
Mendota Heights with thoughtful, wise, and practical legal advice on a number of municipal legal
issues, ranging from the simplest to the very complex, all while demonstrating an approachable and
responsive demeanor; and
WHEREAS, while serving the City of Mendota Heights, he served his greater community through the
coaching of youth athletics, the provision of legal aid to those who are less fortunate, and serving as
an elected member of the ISD 834 School Board, including presiding as Board Chair; and
WHEREAS, the Honorable Governor Mark Dayton has now appointed Thomas R. Lehmann to the
position of Judge of the District Court for the Tenth Judicial District, to begin with an Investiture
Ceremony on July 12, 2018.
NOW, THEREFORE, BE IT PROCLAIMED BY THE MAYORS AND CITY COUNCILORS OF THE CITY OF
MENDOTA HEIGHTS, MINNESOTA, TO WHOM HE PROVIDED ASTUTE LEGAL COUNSEL, that they
hereby congratulate Thomas R. Lehmann for his appointment to the position of Judge of the District
Court.
BE IT FURTHER RESOLVED that they express their heartfelt gratitude for his sage counsel over the
years, and express their best wishes as he moves to this new and distinguished stage of his legal
career.
Dated this 19th day of June, 2018.
______________ _____________ _____________ ____________ _____________
Neil Garlock Ultan Duggan Jay Miller Joel Paper Liz Petschel
Mayor City Council City Council City Council City Council
_______________ _______________ ______________
Sandra Krebsbach Steve Norton Mike Povolny
Mayor 2011-2016 Council 2013-2016 Council 2011-2016
DATE: June 19, 2018 TO: Mayor and City Council, City Administrator FROM: Kelly McCarthy, Chief of Police & Emergency Manager SUBJECT: Oath of Office Presentation
COMMENT:
INTRODUCTION
The Council is asked to do a ceremonial swearing in of Captain Wegener, Officer Yauch and
Officer Albindia.
BACKGROUND
Earlier this year, the Council approved the hiring of a police captain and two officers. Officers
Yauch and Albindia have successfully passed their field training and tonight we ask that they and
Captain Wegener be sworn in.
Captain Wegener has 14 years of law enforcement experience, a Master’s Degree in Public
Administration from Hamline University and is a graduate of the FBI National Academy’s 267th
session.
Officer Ryan Yauch has a Bachelor’s degree from Minnesota State University-Mankato in Law
Enforcement.
Officer Thomas Albindia has a Bachelor’s degree from Metro State University in Criminal Justice.
RECOMMENDATION
Staff recommends the Mayor do the ceremonial Oath of Office for the three new officers.
ACTION REQUIRED
If the Council desires to implement the recommendation, bring the candidates forward be sworn
in by the Mayor.
page 3
CITY OF MENDOTA HEIGHTS
DAKOTA COUNTY
STATE OF MINNESOTA
Minutes of the Special Meeting
Held Wednesday, May 30, 2018
Pursuant to due call and notice thereof, the special meeting of the City Council, City of Mendota Heights,
Minnesota was held at 1:00 p.m. at City Hall, 1101 Victoria Curve, Mendota Heights, Minnesota.
CALL TO ORDER
Mayor Garlock called the meeting to order at 1:00 p.m. Councilors Duggan, Paper, and Petschel were
also present. Councilor Miller was absent.
Also present were: Mark McNeill, City Administrator; Cheryl Jacobson, Assistant City Administrator;
Tim Benetti, Community Development Director; Kristen Schabacker, Finance Director; Dave Dreelan,
Fire Chief; Wayne Wegener, Police Captain; Andy Pratt, City Attorney.
ACCEPT RESIGNATION OF POLICE OFFICER
Assistant City Administrator Jacobson stated that Council was being asked to accept the resignation of
Police Officer Denise Urmann effective May 18. Staff is also recommending that Council authorize
staff to begin the recruitment process to fill a police officer vacancy within the police department.
Councilor Petschel moved to accept the resignation of Police Officer Denise Urmann and authorize staff
to begin the recruitment process to fill a police officer vacancy within the police department.
Councilor Duggan seconded the motion.
Ayes: 4
Nays: 0
Absent: 1 (Miller)
Council Duggan asked if an exit interview was going to be held. Ms. Jacobson stated that it was not
planned but an exit interview could be offered.
AUTHORIZE ADVERTISEMENT FOR COMMUNITY SERVICE OFFICER
Ms. Jacobson reported that Eric Hagelee has served at the Police Department’s Community Service
Officer (CSO) since 2016. He has completed his four-year college degree, and was now attending
Alexandria Tech to complete his law enforcement training. Staff is seeking authorization to begin the
recruitment process to fill the anticipated CSO vacancy. There would be some overlap with the new
CSO, and the current CSO Eric Hagelee which would be good for training.
Councilor Petschel said the position of CSO has worked as it was intended, and asked if Mr. Hagelee
would be interested in a position on the Mendota Heights Police Department.
page 4
Ms. Jacobson replied she believed that he is interested in applying for a police officer position with the
City of Mendota Heights.
Councilor Petschel said he had worked at St. Thomas Academy, and that they were favorably impressed
by him.
Councilor Duggan asked if a motion was needed, and whether the City Council needed to make a
decision to appoint him as a police officer, or could it be handled by the Police Department.
Mr. McNeill said because it would be a regular position in the police department, the City Council
would need to appoint him as police officer if he were to apply and be recommended for the position.
Councilor Duggan made a motion to authorize staff to begin the Community Service Officer recruitment
process.
Councilor Paper seconded the motion.
Ayes: 4
Nays: 0
Absent: 1 (Miller)
CITY HALL REMODELING PROJECT PAYMENT
Mr. McNeill reported that portions of the city hall exterior masonry and flashing has been satisfactorily
completed. However, the face brick work was not acceptable. Much of the brick needs to be replaced
but how much is being debated. A meeting was held to determine how to address the substandard work.
The subcontractor has proposed to have a third party review the work and determine what needs to be
replaced. The tentative agreement was that the restoration work would begin after August 15 so that the
subcontractor would have experienced crews available to do the work. Work will be done by October
12. Mr. McNeill asked that the City Council authorize payment to Dering Pierson in the amount of
$45,000.15, as compensation for work that had been satisfactorily completed.
Councilor Paper asked why the subcontractor was picking the masonry architect to look at the work.
Mr. McNeill responded that was part of the negotiations and they have experience working with the
masonry contractors. They would provide a list of recommended experts, but that the City and general
contractor would have to agree to the masonry architect that will be inspecting the work.
Councilor Petschel asked who had done the masonry work in question. Mr. McNeill said it was
Innovation Masonry Restoration (IMR).
Councilor Duggan stated he didn’t want the subcontractor to have a say in hiring a restoration masonry
architect. Mr. McNeill responded the proposal for that was part of negotiations, and if that fails, it
would go to arbitration, with an uncertain outcome. The City wants someone who can do a professional
job, who can say whether the work was done properly or not, and address the issue of how to fix the
problems.
Mr. McNeill said IMR employees will need to fix the problems found, and use crews who did not
originally do the work.
page 5
Councilor Petschel said there is an issue with the quality of work, and should they not have the
opportunity to correct the work that was not done correctly. Mr. Pratt responded there is wording like
that in the contract documents. Mr. McNeill said the materials and labor are covered for one year. They
have not been paid for any of the work yet. Staff will be reviewing the third party fees to be paid by the
City, and that those will be deducted from the Dering Pierson payment.
Councilor Duggan asked if there was a penalty clause in the contract. Mr. McNeill said that there was
not.
Mayor Garlock said a resident/master bricklayer had looked at the building and stated that the quality of
work was substandard. Most of the work was done under plastic sheeting, and was not able to be
viewed as the work was being done.
Councilor Paper asked if the work was performed in a workman like manner, and if our building
inspector inspected the work. Mr. McNeill said that American Engineering and Testing was the
inspector for portions of the work. He said that Terry Sullivan, the Building Manager had pointed out
issues as he spotted them.
Mr. McNeill said that General Contractor Dering Pierson has asked for a payment of $45,000.15, which
was recommended for approval by the project architect. He said that the City will continue to hold
$75,000.
Councilor Paper asked if a breach of contract could be created if the work went beyond October 12. Mr.
McNeill said that it could be negotiated. He said that the City wants to get the work done this year.
Councilor Petschel said the contractor should not be working if they have to cover it up again as they
work.
Councilor Paper made a motion to authorize payment of work done on the City Hall remodeling project,
in the amount of $45,000.15.
Mayor Garlock, seconded the motion.
Ayes: 4
Nays: 0
Absent: 1 (Miller)
Councilor Petschel suggested a list should be made of contractors that do improper work.
ADJOURN
Councilor Duggan moved to adjourn.
Mayor Garlock seconded the motion.
Ayes: 4
Nays: 0
Absent: 1 (Miller)
page 6
Mayor Garlock adjourned the meeting at 1:20 p.m.
____________________________________
Neil Garlock
Mayor
ATTEST:
_______________________________
Lorri Smith
City Clerk
page 7
CITY OF MENDOTA HEIGHTS
DAKOTA COUNTY
STATE OF MINNESOTA
Minutes of the Workshop
Held Wednesday, May 30, 2018
Pursuant to due call and notice thereof, the workshop of the City Council, City of Mendota Heights,
Minnesota was held at 1:20 p.m. at City Hall, 1101 Victoria Curve, Mendota Heights, Minnesota.
CALL TO ORDER
Mayor Garlock called the meeting to order at 1:20 p.m. Councilors Duggan, Paper, and Petschel were
also present. Councilor Miller arrived at 1:35 p.m.
Also present were: Mark McNeill, City Administrator; Cheryl Jacobson, Assistant City Administrator;
Tim Benetti, Community Development Director; Kristen Schabacker, Finance Director; Dave Dreelan,
Fire Chief; Wayne Wegener, Police Captain; and Andy Pratt, City Attorney.
DISCUSSION OF FIRE STATION PROJECT AND BONDS
City Administrator McNeill stated City Attorney Andy Pratt was present to talk about bonds regarding
the potential fire station remodeling project. Mr. McNeill reviewed the information from the meeting
held at the fire station in February. Staff is asking City Council to take action at their June 5, 2018,
meeting on the bond issue for the fire station.
Fire Chief Dave Dreelan gave a recap of steps that have been taken to move the fire station remodel
forward. In 2015, Buetow Architects were hired and provided four or five different designs for the fire
station. A year later after seeing the Eagan Fire Station that was remodeled by CNH Architects, the City
Council hired that firm to do a concept plan and preliminary budget for proposed improvements to the
fire station. A Fire Station Building Committee was formed and met for two months to get a design for
basic needs and concerns of the fire station that would work for the next 20 to 30 years.
In February, Council met at the fire station to review the plans and budget. The decision to move
forward was then put on hold until the results of the Independent School District #197 bond referendum
were known. Mr. Dreelan also discussed the timeline for the bond issuance to finance the project and
the possible construction timeline. He recommended to seek bids in mid-November and award the
contract before the end of the year, so as to reduce overall costs for the project. February 2019, would
be the probable date for the contractor to mobilize the equipment at the fire station and start
construction, weather permitting.
Councilor Duggan asked if there was firefighter support for the project. Mr. Dreelan responded yes, but
many were aware that there had been false starts previously.
page 8
Councilor Duggan asked if firefighters had input into the remodel plans. Mr. Dreelan said they have and
those have been addressed by the Building Committee. The committee was able to prioritize needs
versus “wish list” items.
Councilor Paper asked if the plans included providing for an Emergency Operating Center (EOC). Mr.
Dreelan responded they have been included in the plans for additional phone and TV outlets in the
training and conference room as part of an EOC.
Councilor Paper said there are Federal funds available for EOC upgrades. Mr. McNeill said looking into
and applying for grant money might delay the project. Mr. Dreelan responded that there is not a lot of
cost involved in installing the needed phone and TV outlets, which would be unique for the EOC. The
most expensive items would be new phones and a new base radio.
Mr. McNeill referred to the spreadsheet which showed the property tax estimate for the impacts of the
ISD 197 Bond Referendum, proposed FY 19 City Levy, and Proposed Fire Station Improvement Bonds
based on a home valued at $356,000.
Councilor Petschel asked about the cost of the fire station remodel. Mr. Dreelan responded the cost is
estimated at $5.4 or $5.5 million. Mr. McNeill said the spreadsheet from Ehlers & Associates was based
on issuance of $6 million in bonds. This amount would include the closing and issuance costs for the
bond sale. The spreadsheet showed an estimated increase in property taxes of 6.5% of the city levy for
the fire bonds, assuming that they were repaid spread over 15 years. The estimated property tax increase
would be $8.00 a month. The school district referendum is raising the property taxes $12 per month.
He said that the city levy should be more modest in 2019; a 5% increase for 2019 which would be about
a $6 a month increase. He said that the total of the increases would be about a 7.85% increase in
property taxes. He noted that this did not take into account any increases in operating budgets for the
School District or Dakota County.
Councilor Petschel asked if anything could be done in terms of paying off the Par 3 bonds and
eliminating a road project. Mr. McNeill said the street projects are in line with the Engineering timeline.
There are four years left on the Par 3 bonds. Discussion of how long the bonds could run and paying
principal only for the first five years was had. Mr. McNeill said fire station bonds could be as long as 30
years.
Councilor Petschel said Parks and Recreation is expecting money inflow after the Par 3 bonds are paid
off. She asked if the money currently be used to pay off those bonds could be continued and be split
between the fire station and Parks and Recreation. She also asked if the City’s AAA bond rating could
be used as leverage for projects and paying only principal on the bonds for a few year affect the City’s
bond rating.
Mr. Pratt responded that he would need to look into if paying only principal would affect the City’s
bond rating. He also noted bonds payments are due in February and August. The bond payments could
be pushed back to the year 2020.
Mr. McNeill asked if there would be savings on the interest over a shorter term and the Par 3 bonds could
be figured into a new analysis. He thought $260,000 could go to the fire station, or $100,000 to Parks and
Recreation and $160,000 to fire bonds.
page 9
Councilor Petschel said more information would be needed on bond terms and the impact on homeowners.
Mr. McNeill suggested holding another workshop before the City Council meeting on June 5, and Ehlers
& Associates could do another spreadsheet with the new information.
Mr. McNeill went over the timeline for the bond issuance schedule:
CC Calls for hearing on CIP and issuance of bonds June 5
Send Public Hearing Notice to Newspaper June 11
Public Hearing Notice Published June 15
Public Hearing on CIP July 2
Reverse Referendum on CIP Period Expires August 1
Call for Sale of Bonds August 7
Rating Call Week of August 27
Sale of Bonds September 4
Closing on Bond Sales Last week of September
Councilor Petschel was concerned that the public hearing would be held so close to a holiday, and that a lot of
people might be out of town. She said that there needs to be transparency in the process. Mr. Dreelan said open
houses could be held at the fire station with a flyer to hand out.
Councilor Petschel suggested a postcard be sent out to every home in Mendota Heights that would have the date
of the public hearing and open houses. Mr. Dreelan said he created a fact sheet that was modeled after other cities
that have gone through the same process.
Mr. Dreelan said 401 signatures would be needed by July 30 to force a referendum. Mr. Pratt said if it did go to
referendum that notices were needed for the Minnesota Secretary of State, and was not sure if there was enough
time for the November election. Mr. Dreelan said he knew of two cities that went to referendum for issuing
bonds for a fire station.
The schedule for the bond issuance was discussed. Councilor Duggan said there needs to be excellent
communication about the bond issuance and fire station remodel.
Councilor Petschel said she believes that a postcard needed to be sent to every home with dates of the public
hearing for the bonds, and a fact sheet to be passed out at the fire station open houses. Mr. McNeill said tax
payer dollars cannot be used to promote the station remodel, but could be used to publicize the public hearing.
Councilor Paper suggested adding information to the website with the postcard of dates and a fact sheet.
Councilor Petschel said that the things that needed to be stressed are the safety issues of firefighters breathing in
exhaust as they put on their gear, and that better equipment is needed for washing their gear. Also, there is a need
to promote the community meeting room.
Councilor Duggan asked if traffic signals on Dodd Road outside of the fire station should be included. Mr.
Dreelan said that could be included if MNDOT approved. It might be able to be incorporated if signals are ever
installed at South Plaza Drive and Dodd Road.
Councilor Miller said sending a postcard and directing people to the website with information would be effective.
Mr. McNeill said he would talk to Ehlers & Associates about a new spreadsheet with different bond issuance
scenarios. It may not be ready until Monday before the June 5th Council meeting.
page 10
Councilor Petschel said the $65,000 per year for the payment of repairs at the hockey rink in West St. Paul could
be timely and will be paid in full by 2020. The Council needs to think about how much of this money will be set
aside for parks maintenance.
Councilor Duggan asked when the postcards would be mailed to homes. Councilor Petschel said it should be
mid-June so it can get there before the July 2nd public hearing.
Councilor Paper asked when the open houses would be held at the fire station. Mr. Dreelan said there could be
three - maybe a Monday night, Thursday night, and a Saturday morning.
Mr. Dreelan said he has talked to the City Councils of Sunfish Lake and Lilydale already about the possible
remodel. They do not have any problems with it. He is going to the Mendota June City Council meeting to talk
to them about it.
Mr. Dreelan asked Ms. Schabacker how much they would be charged for the remodel. Ms. Schabacker responded
she would work to get numbers.
Councilor Paper asked how the cities were charged for fire calls. Ms. Schabacker said it was based on the market
value of the city and number of calls to their city over the last two years.
Councilor Duggan asked if a meeting should be set up with the Mendota Heights City Council and Mendota,
Lilydale and Sunfish Lake City Councils. Mr. Dreelan said he is or will talk with the cities he also told them that
Mendota Heights staff is available to answer any questions they may have. They have commented that having
HealthEast at the fire station is an asset. Mr. Dreelan said there is no contract in place with HealthEast.
Mr. Dreelan thanked the Council for their time.
DISCUSSION OF FY 2019 BUDGET
Mr. McNeill said the 2019 Budget planning would start soon. Labor contracts for the next year are set
at 2.75% in increases. No new additional personnel positions are being contemplated. He reported that
Ms. Schabacker said last year the City did very well regarding budgeted revenues and expenditures.
There are one-time expenses such as Public Works equipment and $250,000 for Wentworth Park
improvements. Staff would work to come in lower than a 5% increase in the 2019 proposed levy.
Councilor Petschel said Council needed to look long term at the Par 3 and their equipment. The Par 3
will never make money to sustain itself, that there are struggles with their mowers. She felt that maybe
putting off a street project until the Par 3 bonds are paid off would be a good idea. She would like to see
a re-sequenced list of street projects. She said that Mr. Ruzek needed to take a hard look at how he is
sequencing the street projects to help keep the budget down.
Dates were discussed for budget workshops. It was decided to hold budget workshops on August 13 and
August 15 starting at 1:30 PM. An extra date, August 21 was decided on starting at 5:30 pm in case
another budget workshop was needed.
On other issues, Mr. McNeill reported that a notice was served over improper look ups and will go to the
League of Minnesota Cities.
page 11
The developers of Orchard Heights asked about street lights. Councilor Petschel suggested to reference
the Hidden Creek development on street lights as none had been installed there.
He said that a call had been received from a contractor, requesting a staging area for the Highway 149
(Dodd Road) work. They would like to use the Village lots or the Paster site where the bonfire is held.
Councilor Petschel said she would like the site to be behind Mendota Plaza, and not the Village lots.
Councilor Miller asked if the site would be cleaned out in time for the Halloween Bonfire. Mr. McNeill
said he would let MnDOT know the preferred site would be at the Paster property and would ask if it
would be cleaned up in time for the Halloween Bonfire.
Councilor Petschel said that Paster Properties are no longer do their own leasing, and is now being done
by a realty company.
Mr. McNeill said the Reserve is holding a special tour for the new apartments and it is scheduled for
June 19 at 5:45 pm.
He also received an email from Representative Rick Hanson regarding House File 3693 being signed
into law, but that he was not sure of the meaning of the bill. It is related to the proposed Registered
Sexual Offender Ordinance which was scheduled to be on the June 5th Council meeting agenda.
However, he asked to defer consideration to the second meeting in June, as the Police Chief is out of
town. The Council concurred.
Councilor Petschel asked if the Scott Patrick memorial in West St. Paul topic was on the agenda for the
next West St. Paul Council meeting. Mr. McNeill said that he had not heard if it was on the agenda, but
that an agreement was being worked on. He will keep the Council updated on the issue.
ADJOURN
Councilor Duggan moved to adjourn.
Councilor Petschel seconded the motion.
Ayes: 5
Nays: 0
Mayor Garlock adjourned the meeting at 2:46 p.m.
_________________________________
Neil Garlock
Mayor
ATTEST:
_______________________________
Lorri Smith
City Clerk
page 12
CITY OF MENDOTA HEIGHTS
DAKOTA COUNTY
STATE OF MINNESOTA
Minutes of the Regular Meeting
Held Tuesday, June 5, 2018
Pursuant to due call and notice thereof, the regular meeting of the City Council, City of Mendota Heights,
Minnesota was held at 7:00 p.m. at City Hall, 1101 Victoria Curve, Mendota Heights, Minnesota.
CALL TO ORDER
Mayor Garlock called the meeting to order at 7:00 p.m. Councilors Duggan, Paper, Miller, and Petschel
were also present.
PLEDGE OF ALLEGIANCE
Council, the audience, and staff recited the Pledge of Allegiance.
AGENDA ADOPTION
Mayor Garlock presented the agenda for adoption. Councilor Petschel moved adoption of the agenda.
Councilor Duggan seconded the motion.
Ayes: 5
Nays: 0
CONSENT CALENDAR
Mayor Garlock presented the consent calendar and explained the procedure for discussion and approval.
Councilor Petschel moved approval of the consent calendar as presented and authorization for execution
of any documents contained, pulling items c.) Acknowledge the April 24, 2018 Planning Commission
Meeting Minutes; f.) Approval of Ordinance 524 Add No Parking on Copperfield Drive; g.) Approval of
Ordinance 525 Revise Seasonal Restrictions and Weight Limits; k.) Approval of Resolution 2018-39
Plans and Authorize Advertisement for Bids for the Lexington Highlands & Mendakota Neighborhood
Improvements; l.) Approval of Fire Hose and Nozzle Replacement; and m.) Approval of Natural
Resources Technician Job Description and Position Posting.
a. Approval of May 15, 2018 City Council Minutes
b. Approval of May 16, 2018 Joint City Council & Parks-Rec Commission Work Session Minutes
c. Acknowledge the April 24, 2018 Planning Commission Meeting Minutes
d. Approval of the Liquor License Renewals
e. Approval of Ordinance 523 Revise No Parking on South Plaza Drive
f. Approval of Ordinance 524 Add No Parking on Copperfield Drive
g. Approval of Ordinance 525 Revise Seasonal Restrictions and Weight Limits
h. Authorize Contract with Rainbow Treecare for Emerald Ash Borer Treatment
page 13
i. Update on Cooperative Construction Agreement for Dodd Road
j. Approval of Grading Permit for Orchard Heights
k. Approval of Resolution 2018-39 Plans and Authorize Advertisement for Bids for the Lexington
Highlands & Mendakota Neighborhood Improvements
l. Approval of Fire Hose and Nozzle Replacement
m. Approval of Natural Resources Technician Job Description and Position Posting
n. Approval of Claims List
Councilor Miller seconded the motion.
Ayes: 5
Nays: 0
PULLED CONSENT AGENDA ITEM
C) ACKNOWLEDGE THE APRIL 24, 2018 PLANNING COMMISSION MEETING MINUTES
Councilor Duggan noted that condition #7 indicates that new trees and wetland buffer areas shall be
planted with approved native trees and pollinator friendly and wetland suitable plantings, as per the
city’s native plant list. He asked if this was required by ordinance or was it a recommendation.
Community Development Director Tim Benetti replied that this was a recommendation and follows the
city’s Pollinator Friendly Policy. It is not required by ordinance. Councilor Duggan asked if the
applicant is aware that it was a strong recommendation. Mr. Benetti replied in the affirmative.
Councilor Duggan moved to acknowledge the April 24, 2018 Planning Commission Meeting Minutes.
Councilor Paper seconded the motion.
Ayes: 5
Nays: 0
F) APPROVAL OF ORDINANCE 524 NO PARKING ON COPPERFIELD DRIVE
Councilor Duggan noted that he lives in this area and there is a very sharp curve when coming off
Delaware Avenue. There is a yellow center line, and he understands this to mean there is no parking
allowed. He asked if other areas in the city with a yellow center line would be impacted. Public Works
Director Ryan Ruzek replied that the yellow center line defines the center of the roadway and is not
related to parking. There is not enough space on each side of the street to allow for parking. Staff met
with the adjacent property owners in this area and they are in support of this change. Staff would also
look to extend the white fog lines connecting into the Delaware fog lines to help drivers. No parking
signs will delineate the no parking zone.
Councilor Petschel commended the Traffic Safety Committee for bringing this forward.
Councilor Duggan moved to adopt Ordinance 524, “AMENDING TITLE 6, CHAPTER 3, SECTION 3
OF THE CITY CODE”.
Councilor Petschel seconded the motion.
Ayes: 5
Nays: 0
page 14
G) APROVAL OF ORDINANCE 525 REVISE SEASONAL RESTRICTIONS
AND WEIGHT LIMITS
Councilor Paper asked for Mr. Ruzek to explain this ordinance. Mr. Ruzek stated that the spring has
been identified as having the worst conditions for the subgrade of a road. Heavy vehicles and the
vibration from those vehicles can cause the subgrade to liquefy, which can destroy the road bank and
cause the roadway to fail. The state places road restrictions on many of their highways and the city has
similar restrictions. The city’s existing road restrictions are 8,000 pounds of gross vehicle weight. A
large SUV weighs approximately 6,000 pounds. Technically, there could be regular vans and trucks that
legally could not drive on the city streets. Therefore, staff is looking to change the 8,000 pound gross
vehicle weight to 8,000 pounds per axle. Most state highways are reduced to a 10 ton restriction. The
city also allows exemption permits. Most of the city streets are designed for a 7 ton load.
Staff is also proposing to change the start date of these restrictions. The existing start date was March 1
and it is being proposed to be March 15, with the end date changing from May 25 to May 1.
Councilor Petschel moved to adopt ORDINANCE NO. 525 AMENDING TITLE 6, CHAPTER 4,
SECTION 3 OF THE CITY CODE, CONCERNING SEASONAL RESTRICTIONS AND WEIGHT
LIMITS.
Councilor Duggan seconded the motion.
Ayes: 5
Nays: 0
K) RESOLUTION 2018-39 PLANS AND AUTHORIZE ADVERTISEMENT FOR BIDS FOR THE
LEXINGTON HIGHLANDS & MENDAKOTA NEIGHBORHOOD IMPROVEMENTS
Councilor Duggan noted that he had a question regarding the number of homes included in this
neighborhood improvement plan, but understands that it will be discussed at a later date.
Councilor Paper asked for the timeframe of this project. Mr. Ruzek replied that some of the contractors
indicated that the city would receive better bids if the completion date was set for the end of October.
There is a chance that this project would not get started until August.
The Minnesota Department of Transportation (MnDOT) had a pre-construction meeting for the
Highway 149 project. These streets intersect in MnDOT’s stage five, which is going to be south of
Highway 110 to I-494. This would be happening concurrently with these projects. So they are also
looking at an October to November timeframe for that part of Dodd Road.
Councilor Petschel moved to adopt RESOLUTION 2018-39 APPROVING FINAL PLANS AND
SPECIFICATIONS, AND AUTHORIZING ADVERTISEMENT FOR BIDS FOR THE LEXINGTON
HIGHLANDS & MENDAKOTA IMPROVEMENTS (PROJECT #201706).
Councilor Duggan seconded the motion.
Ayes: 5
Nays: 0
page 15
L) APPROVAL OF FIRE HOSE AND NOZZLE REPLACEMENT
Councilor Duggan asked when these nozzles were last replaced. Fire Chief Dave Dreelan replied that the
current nozzles are on the end of their 200 foot attack lines, which they pull off the truck and use on the
interior of a home when they go in to fight fire. Those nozzles, like any piece of equipment, wear out.
Those nozzles have a maximum fire flow of 125 gallons per minute. A modern style house built today
has large open spaces and the minimum recommended flow in that situation is 150 gallons per minute.
The current nozzles are not able to obtain that. With the high water pressure, the hose line becomes very
stiff and hard to manage. By getting a larger diameter hose and appropriately matched nozzles, they
would drop their pump pressure from 170 to 120 and increase their flow to 160.
Councilor Duggan asked if there was any consideration given to applying for federal or state grants to
help with this cost. Mr. Dreelan replied in the negative as it is not available.
Councilor Duggan moved to authorize the purchase of new nozzles from Fire Safety USA in the amount
of $10,000, and new hose from Jefferson Fire Equipment in the amount of $6,868.77.
Councilor Petschel seconded the motion.
Ayes: 5
Nays: 0
M) APPROVAL OF NATURAL RESOURCES TECHNICIAN JOB DESCRIPTION
AND POSITION POSTING
Councilor Miller, regarding the educational and experience requirements, asked why staff was not
requiring a four-year degree. City Administrator Mark McNeill replied that the city uses a job pointing
system to determine what pay grade the jobs are assigned. It is based on experience, education, and
working conditions. If this position required a four year degree, it would be assigned to a pay grade that
is higher than what has been budgeted. Various job descriptions were reviewed that were comparable to
this position. As an initial position, staff felt that someone who is able to execute hands-on experience
would be preferable. The position could be upgraded over time.
Councilor Miller asked if they get a highly qualified individual that fits the desired requirements and
they have a four-year degree, and there are also a couple of decent applicants with two-year degrees;
where would staff land on that. Mr. McNeill replied that they have a hiring range that goes from $52,600
to $58,000. To be fair to all candidates, if they get a ‘rock star candidate’ but the pay range is
inadequate, then staff would return to Council and talk about re-advertising and increasing the pay
range.
Councilor Miller moved to approve the Natural Resources Technician job description, the assigned pay
grade, and authorize staff to begin the recruitment process to fill the position.
Councilor Duggan seconded the motion.
Ayes: 5
Nays: 0
PUBLIC COMMENTS
page 16
Councilor Duggan asked the Boy Scout in the audience to introduce himself and talk about what he is
doing. Mr. Steven Costilla stated he was working on his Eagle Scout Merit Badge and one of the
requirements was attending a public meeting. Mr. Mark Costilla, Steven’s father, expressed his
appreciation to the Council. Mr. Steven Costilla anticipates becoming an Eagle Scout on June 28, 2018.
PUBLIC HEARINGS
No hearings scheduled.
NEW AND UNFINISHED BUSINESS
A) FIRE STATION CONSTRUCTION / BOND ISSUANCE
City Administrator Mark McNeill stated that last December, the Council discussed changes to the Fire
Department building to bring it up to today’s standards. The fire department has outgrown the station
that was built in the mid-1980’s. Today, training is more technical and frequent, and there is a need for
better facilities. There are health and safety issues that are of concern.
Last December, the Council authorized the hiring of CNH Architects to prepare preliminary work with
the Station Study Committee. They met with the Council in February and presented a recommendation
for a 14,000 square foot addition to the current building. The plan is to have the existing station remain
in production during the construction of the addition.
The preliminary budget for this project is anticipated to be $5.4M to $5.5M. The action requested was to
call for a public hearing to issue bonds for the project. Upon a recommendation from Ehlers, the amount
of the bonds requested will not exceed $7 million. If it is necessary to bring that amount down, it is
possible. However, once determined the amount cannot go higher.
Because staff wished to be considerate of the recently passed school referendum, Ehlers provided some
preliminary numbers as to what this project would be, they included an anticipated modest increase in
the city levy for next year, and also the school district impact. Those amounts would be just under 8% as
a property tax increase.
There are two options the Council could consider. They could call for a referendum and have the voters
decide on it, or they could directly issue the bonds following the process according to state law which
includes a reverse referendum clause in it.
To directly issue the bonds, Council would call for a public hearing. Open houses would be held to
educate the public on the issuance. If the public hearing were held on July 2, 2018 it would start a 30-
day window of time. During that 30 days, if there is a petition that is circulated and brought back to the
Council saying that they want to have it put to a vote and there are more than 5% of the registered voters
from the last general election, the Council would have a choice of either putting this to a referendum or
withdrawing it. If it were withdrawn, then the city would have to wait one year before they could
introduce it again.
Construction is estimated to take nine months, with the remodeling of the existing building taking an
additional four months.
page 17
Councilor Duggan stated that it was important that the community know that, in light of the age of the
existing fire station, the added uses through HealthEast, and the training requirements, any delay in this
project is unwise. There should not be any delays. Councilor Duggan also noted that July 2, 2018 is on
a Monday – not the regularly scheduled first Tuesday of the month, due to the Independence Day
holiday. Also, the August 7, 2018, City Council meeting will start an hour later [8:00 p.m.] due to the
Night to Unite events happening in the city.
Councilor Petschel asked Fire Chief Dave Dreelan to speak to the difference in cost between the initial
tear-down plan and the current plan, to explain the need for an official Emergency Operations Center,
and to explain the current safety issues.
Chief Dreelan shared that this has been a 3-year process to get to this point. The initial proposal focused
on five different versions of a basic remodel to a complete teardown and rebuild of the fire station and
was proposed at $1.5 million to $7 million. It would be nearly impossible to tear down the current
station because there would be no place to put the apparatus and the firefighters during the 1.5 year long
construction. So they searched for an alternative where they could be a completely functional fire
department while the remodeling and expansion was occurring. This current proposal would accomplish
that goal.
The safety issues at the current station are related to:
1. The apparatus bay where they store the fire trucks is very overcrowded. There is not enough
room to maneuver between the trucks because of how close they have to be parked to each other.
2. Cancer is becoming a very serious health risk to firefighters. They are now finding that
firefighters are bringing carcinogens back to the station and homes on their turnout gear. The
current station does not have adequate ways to store, clean, or dry that turnout gear.
3. The original station was built to house approximately 20 to 30 sets of gear. Some firefighters are
getting dressed a few feet away from apparatus that is running to leave the station. They are
breathing in the exhaust fumes from these diesel engines.
Councilor Petschel brought up examples of when the emergency responders did not have what they
needed in terms of a designated space, technology, etc. for emergency situations. She asked Mr.
Dreelan to address this situation. Mr. Dreelan explained that it is up to the city to be prepared for
emergency situations. To be prepared, the city needs a properly functioning emergency operation center.
This station is being set up in a way where meeting rooms and conference rooms can be converted to a
functioning emergency operations center.
Councilor Duggan, referring to a comment made by City Administrator McNeill about future living
space, asked if this would be covered by this bond issuance. Mr. Dreelan replied that the future living
space is part of the initial $5.5 million estimate.
Councilor Petschel explained the importance of having HealthEast stationed within our city. She stated
the city should do whatever is necessary to accommodate them.
Mayor Garlock stated that when the City looked at the initial plans, they were lacking. However, when
they looked at a new plan and a new architectural design, the Council all felt very comfortable with it.
page 18
This is going to be a functional fire station that fits the needs of Mendota Heights. The selling point he
saw was the ability to have an emergency event with HealthEast and a fire event going on, and with the
multiple driveways the ambulance can exit its own way and the firefighters can respond in another way
and the trucks can leave in different directions. It is a good traffic design for multiple events going on at
the same time. Chief Dreelan agreed with these comments.
Councilor Paper wanted to emphasize and not overlook the importance of the community meeting room
in the new facility. This will provide much needed meeting space for clubs and groups that is now not
available. It can also be used to hold educational events in the community.
Chief Dreelan expressed his appreciation to the Council, members of the previous Council, firefighters,
engineering firms and architectural firms for their input and support of this project. There was a lot of
work that went into this to make this project one that will serve the community into the future.
Mayor Garlock moved to adopt RESOLUTION 2018-40 CALLING FOR A PUBLIC HEARING ON
THE PROPOSED ADOPTION OF A FIVE-YEAR CAPITAL IMPROVEMENT PLAN AND THE
PRELIMINARY ISSUANCE OF GENERAL OBLIGATION CAPITAL IMPROVEMENT BONDS
NOT TO EXCEED $7 MILLION.
Councilor Miller seconded the motion.
Ayes: 5
Nays: 0
B) AWARD PROFESSIONAL SERVICES CONTRACT FOR MARIE AVENUE &
WESLEY LANE IMPROVEMENTS
Public Works Director Ryan Ruzek explained that staff developed a Request For Proposals for the Marie
Avenue and Wesley Lane Neighborhood Improvements and mailed it to four consulting engineering
firms. Four responses were received.
The project includes the rehabilitation of Marie Avenue from Lexington Avenue to Dodd Road, trail
rehabilitation, replacement of pedestrian underpass (Dakota County), replacement of cast iron water
main, retaining wall replacement, guard rail replacement, lane configuration changes, pond
improvements, trail improvements along Lexington Avenue and assessment of the city owned cast on
ground slab bridge.
The Wesley Neighborhood Improvement Project includes rehabilitation to Wesley Lane, Wesley Court,
South Lane from North Freeway Road to the cul-de-sac, Mager Court, and Spring Creek Circle. Design
elements include pavement replacement, storm sewer extension, and constructing a bituminous trail
from Maple Street to Wesley Lane.
There are two ponds within the project area. Staff is proposing to make improvements consisting of
excavating sediment and restoring volume for water quality treatment. The Traffic Safety Committee
has also been looking at issues involving the Lexington Avenue Trail. Currently there is traffic moving
without a barrier between the pedestrian trail and the road traffic. Staff is looking at installing a curb
from Lexington Avenue south to approximately 700 feet.
page 19
TKDA submitted the lowest responsible bid at $244,300 for this estimated $2.2M project. Staff
recommended TKDA.
Councilor Petschel asked how much the County would pay for a bigger box culvert and the trail
realigned. Mr. Ruzek replied that this would be determined as they go through the design process and
develop a Joint Powers Agreement with the County. They have identified in the preliminary stages that
this would be 100% their cost.
She asked if there were still discussions on having a trail from Maple Street to Marie Avenue. Mr.
Ruzek replied that this is not included in this contract with TKDA. Staff is currently waiting to see what
type of space MnDOT can provide with the project they are doing this summer on Dodd Road. The
other thing staff would be looking at is on the corner of Wesley and Dodd, to see if they can work with
Xcel Energy to relocate the one power pole which would eliminate the need for right-of-way acquisition.
Discussion occurred on the desire to come up with a viable solution for installing a trail on Dodd near
Wesley that would not cause any further angst with the residents, who have planted landscaping that has
spilled over into the right-of-way.
Councilor Paper asked if all of the retaining walls along Marie Avenue belong to the city. Mr. Ruzek
replied that the city has approximately 40 feet of retaining wall along Marie Avenue.
He also asked for a definition of ‘slope protection’ at 35E. Mr. Ruzek replied that if someone were to
veer off of the trail they need a certain amount of flat area to react and get back on the trail.
Councilor Paper asked if the pond at Marie Park would be improved. Mr. Ruzek answered that it is not
part of this project. Since this pond is located on city land, it would be a priority when the Park
Improvement project comes up.
Councilor Petschel asked if there are two phases to this project. Mr. Ruzek answered that there are
alternates to be considered; however, the project only has one phase.
Councilor Duggan asked what considerations were given to the increase in traffic on Dodd Road in the
next five years. Mr. Ruzek replied that at this time they would not look at increasing capacity on Marie
Avenue. However, he is hoping to include at the next Council meeting a request for Council to submit a
Letter of Request for County to include some intersection control improvements for the Dodd and
Marie, and Dodd and Wentworth intersections.
Mayor Garlock, in regards to the alternate of relocating Maple Street to align with Hilltop, asked if it
would improve the situation on Dodd Road. Mr. Ruzek replied that it would allow for more potential to
make improvements to the vacant lots.
Councilor Duggan asked if any consideration was given to the Ridge Place. Mr. Ruzek replied that that
they have done some studies on how to make some long-term improvements and handle the access
issues around The Village and The Plaza. One long-term suggestion was to shut down Ridge Place and
not have it connect to Dodd Road. However, the traffic study is not identifying that as an urgent need.
page 20
They indicated that the city should look at ways of improving the functionality of the intersection at
Dodd Road and Highway 110.
Councilor Paper moved to award a PROFESSIONAL SERVICES CONTRACT FOR MARIE
AVENUE & WESLEY LANE IMPROVEMENTS TO TKDA, NOT-TO-EXCEED $244,300.
Councilor Miller seconded the motion.
Ayes: 5
Nays: 0
C) RESOLUTION 2018-38 APPROVING A WETLANDS PERMIT TO SHERBURNE
CONSTRUCTION & HUGH CULLEN FOR PROPERTY LOCATED AT 1179 CENTRE
POINTE CIRCLE (PLANNING CASE NO. 2018-11)
Community Development Director Tim Benetti explained that the City Council was asked to consider
adopting a resolution to approve a Wetlands Permit to Sherburne-Slater Construction, acting on behalf
of Mr. Hugh Cullen, for his property located at 1179 Centre Pointe Circle. This would be for the
construction of a new office building.
Mr. Benetti shared that the property is 3.58 acres in size, a flag-shaped lot, and the access strip provides
for the right-of-way for Centre Pointe Circle, which is a private drive, however, the city has been
maintaining it as part of the public road system. There are also currently 30 parking spaces on that circle
turnaround area, used primarily for overflow parking.
The new office building is proposed to be approximately 30,000 square feet in size with 128 new
parking spaces. Staff is currently reviewing the building permit plans and will ensure there is adequate
parking to accommodate the building request.
Mr. Benetti shared architectural renderings of the proposed building. It would look similar to the other
seven buildings in the area owned by Mr. Cullen. The property does require the site to retain its own
stormwater infiltration. They are looking to install an underground storm treatment system to capture all
of their stormwater from the building and the parking area. It would capture all of the sediment and dirt
and grit and would eventually drain clear and clean water to the back pond.
Mr. Benetti shared the reasons for requesting a Wetlands Permit and how the construction would protect
the wetland from any adverse affects from the construction and grading.
A public hearing was held by the Planning Commission at their meeting on May 22, 2018. One
comment was received from a representative of the adjacent Catholic Cemeteries, but no major concerns
or objections regarding the project were raised.
Councilor Duggan asked how steep the grade would be from the level to the pond. Mr. Benetti replied
that it drops quite a bit but there are no walls. Most of the grade would be left alone with only some
grading around the back side of the building. Councilor Duggan suggested that staff take a picture of the
area in advance for comparison purposes.
page 21
Councilor Petschel moved to adopt RESOLUTION 2018-38 APPROVING A WETLANDS PERMIT
TO SHERBURNE CONSTRUCTION & HUGH CULLEN FOR PROPERTY LOCATED AT 1179
CENTRE POINTE CIRCLE WITH THE STIPULATION THAT THE GRADE TO THE POND BE
LEFT IN ITS CURRENT STATE.
Councilor Duggan seconded the motion.
Ayes: 5
Nays: 0
COMMUNITY ANNOUNCEMENTS
City Administrator Mark McNeill announced that the summer youth programs will be starting next week.
The Community Family Kick Ball Tournament is set for June 10, 2018, at Mendakota Park. The Master
Gardeners are planning a Rain Garden and Landscaping session at the Par 3 Club House providing an
opportunity to learn about pollinator-friendly habitat and planting methods.
The Parks Celebration was well attended last weekend. The next outdoor concert will be held at
Mendakota Park on July 18 with music by The Percolators Band.
COUNCIL COMMENTS
Councilor Petschel commended Recreation Program Coordinator Meredith Lawrence for handling all of
the challenges this spring in terms of facility usage and new programing. She is doing an outstanding
job.
She also commended Mayor Garlock for another successful 5K walk / run and for all of his hard work.
Mayor Garlock provided some statistics on the 5K event. There were 349 participants, some were lost
due to the forecast of rain. Over $9,000 was raised for Special Olympics of Minnesota. He expressed
his appreciation to the Police Department for their coordination of the event.
Councilor Miller reminded residents that the Dodd Road project would begin on June 11. He requested
that the five phases of this project be put on the city’s website.
Councilor Paper also commended the Mayor on another great Scott Patrick Memorial 5K. He also
congratulated all of the 2018 graduates from the city’s schools.
Councilor Duggan too commended the Mayor, Ms. Lawrence, staff, Police Department, Fire
Department, and volunteers for helping with the 5K.
He also noted that he had the pleasure of watching his grandchildren play over at Richfield Park as part
of a school event. He was amazed at the quality, type, and condition of the equipment at the park. He
suggested Ms. Lawrence and perhaps the Park Commission take a look at some of that and see what
could work in this community; particularly the zip line.
page 22
He was pleased that the dance on Friday was well attended. The band was great and the event ran
smoothly.
ADJOURN
Councilor Paper moved to adjourn.
Councilor Petschel seconded the motion.
Ayes: 5
Nays: 0
Mayor Garlock adjourned the meeting at 8:36 p.m.
____________________________________
Neil Garlock
Mayor
ATTEST:
_______________________________
Lorri Smith
City Clerk
page 23
CITY OF MENDOTA HEIGHTS, DAKOTA COUNTY, MINNESOTA
PARKS AND RECREATION MEETING
April 10, 2018
The April meeting of the Mendota Heights Parks and Recreation Commission was held on Tuesday, April
10, 2018, at Mendota Heights City Hall, 1101 Victoria Curve.
1. Call to Order – Chair Pat Hinderscheid called the meeting to order at 6:30 p.m.
2. Roll Call – The following Commissioners were present: Chair Pat Hinderscheid, Commissioners Ira
Kipp, Bob Klepperich, Stephanie Levine, David Miller, and Nissa Tupper. Staff present: Recreation
Program Coordinator Meredith Lawrence, Assistant City Administrator Cheryl Jacobson, Public Works
Director Ryan Ruzek, and City Administrator Mark McNeill. Commissioner Steve Goldade arrived at
7:07pm.
3. Approval of Agenda
The agenda was approved as presented.
4. Approval of Minutes
Motion Miller/second Levine to approve the minutes of the February 13, 2018 Parks and Recreation
Commission meeting. AYES 6: NAYS 0: ABSENT 1
Motion Klepperich/second Tupper to approve the minutes of the March 1, 2018 Parks and Recreation
Commission Work Session meeting AYES 6: NAYS 0: ABSENT 1
5. Unfinished and New Business
5.a Presentation by Cassandra Schueller, Recycling Coordinator
Ms. Cassandra Schueller, Recycling Coordinator for the City of Mendota Heights shared the new
recycling initiatives for the city’s parks and throughout the community. Ms. Schueller also serves West
St. Paul, South St. Paul, and Sunfish Lake.
Events that occurred this last year included:
Waste sort with the help of the County, involving two days of trash and recycling produced at
City Hall
o 64% was compostable products
o Advised to add organics collection at City Hall with the potential to divert 97% of waste
away from the landfill
o Replaced normal flatware and plates with BPI certified compostable products
Par 3
o Added trash caddies to the recycling caddies locations
o Internal containers at the club house were labeled
o Dumpsters moved to one location
o Updated the close-down procedures to ensure recycling was adhered to
Inventoried all of the parks over the summer and fall
page 24
o Took note of where the recycling and trash containers were and where missing
Mendota Heights was found to have pretty much the perfect amount
o Goal is to have one-to-one ratio of trash to recycling containers
Ms. Schueller won a national grant through Keep America Beautiful for Mendota Heights
o Will be receiving receptacles within the next month to complete the one-to-one ratio in
the parks
Village Market also received two recycling containers
Set up a recycling tour and the Mayor and his wife joined
o Republic Services in Inver Grove Heights
Trying to get Mendota Heights to be a Green Steps City
o Already doing 12 activities and not getting credit for it
o Need City Council approval
o If approved she hopes to be appointed the coordinator
Upcoming Events:
Saturday, April 21, 2018 Paper Shred Event at the West St. Paul Sports Complex from 9:00 a.m.
to Noon
Saturday, April 21, 2018 Shoe & Clothing Recycling Event; unmanned; for 9 full days; metal drop
box in the City Hall parking lot
In regards to the recycling bins being added to the trash bin locations, Chair Hinderscheid asked for
confirmation that this did not add any expense to the city in terms of trash pick-ups. Public Works
Director Ryan Ruzek confirmed.
Commissioner Levine asked if there were any potential plans to have pick-up organics, like is done at St.
Louis Park. Ms. Schueller replied that currently there are no haulers in the county who are willing to pick
up organics. The only other option is to bring the organics to the drop sites, one of which is in West St.
Paul and another in Eagan.
Commissioner Miller asked if the recycling places recycle most, if not all, clear plastics. Ms. Schueller
replied that yes, they do. They are mandated to only produce 15% residuals. One of the things to keep in
mind is that everything that is recycled is downgraded; meaning that a plastic water bottle does not get
recycled into a plastic water bottle. It is downgraded into a polyester shirt, carpeting, etc. Some
scientific studies have been done about leaching so she recommended not microwaving anything in
plastic.
Commissioner Tupper noted that she and her family signed up at the organic drop off and that it is super
easy to do. They keep a bin in the garage and one under the kitchen sink. They drop it off once a week
and their trash has gone down significantly. They never fill their trash can. She then asked if the county
or the cities she works with have plans to create more drop off sites. Ms. Schueller replied that she has
made her stance perfectly clear with the county that the city is ready for its own site. Due diligence
needs to be completed before this could move forward.
5.b Presentation by John Masica, Mendota Heights Athletic Association
page 25
Mr. John Masica, Executive Director of the Mendota Heights Athletic Association (MHAA) opened a
discussion on adding a temporary fence for youth baseball at Valley Park. He introduced Mr. Scott
Karlen, MHAA Baseball Commissioner.
They noted that the temporary fence was at Marie Park last year and they would like to move that to
Valley Park. The nine-year old baseball team played at Marie Park; there were some traffic issues and
issues with the fence being near the playground. They looked at other field options for these players and
determined that Valley Park would seem to fit. The fence would be installed from May 1 to July 15. It
would be located five feet from the edge of the swamp, leaving enough room to walk around the back if
a ball went over.
Chair Hinderscheid noted that the only negative he heard about the fence at Marie Park was that it
disrupted the open area and asked if that would not be much of an issue at Valley Park. Mr. Masica
replied that behind the location of the fence at Marie Park was a field and a park, which limited a little
bit of kid access – they jumped over and broke some of the posts. The new location would be up against
the swamp and tree line and would not interfere with anyone walking or anything like that.
Commissioner Klepperich stated that he probably would need an OK from Mr. Ruzek to pound stakes
into the ground, as they would need to call Gopher-1. He also expressed his hope that they would
maintain the fence to put it back up if, for some reason, it got down. Mr. Ruzek added that he was not
sure if he would have public staff available to install the fencing (it was installed by MHAA last year).
Mr. Ruzek explained that the request was to get a recommendation from the Parks and Recreation
Commission and then staff would take that recommendation to the City Council for final approval. In the
interim he would check with Public Works on their availability and willingness to take on this project.
The biggest concern is that there are some neighbors that keep a close eye on the park; thus the need
for Council approval.
Mr. Ruzek requested that the installation of the fence not occur prior to April 28th as there is a large
event on that field that day. He was unaware of any other events or reservations in that park the
remainder of the season.
Motion Levine/second Miller to recommend approval of MHAA being permitted to install a temporary
fence at Valley Park no earlier than May 1, 2018 AYES 6: NAYS 0: ABSENT 1
5.c Commissioner’s Park Assignments
Recreation Program Coordinator Meredith Lawrence explained that at the March 1, 2018 workshop the
Commission decided that they would do park assignments again. In the past, Commissioners were
assigned parks to visit and report any problems to the Recreation Program Coordinator. Examples of
what to look for included conditions of trails, playground equipment, ball fields, tennis courts, and
basketball courts. A monthly visit is expected.
The assignments were determined as follows:
Victoria Highlands – David Miller
Roger’s Lake – Ira Kipp
Valley View Heights – Ira Kipp
Ivy Hills – Pat Hinderscheid
page 26
Dog Park – Pat Hinderscheid
Marie Park – Stephanie Levine
Valley Park – Nissa Tupper
Wentworth – Steve Goldade
Friendly Hills – Nissa Tupper
Hagstrom-King – Steve Goldade
Kensington South – Stephanie Levine
Mendakota – Bob Klepperich (he would also keep an eye on the baseball fields at Civic Center)
Market Square (added) – David Miller
Upon question, it was found that Market Square is a city park; however, it is maintained by the RMF
Group. The city does schedule events at Market Square.
A question was raised about whether one of the park names was Valley Park or Valley View Heights
Park.
5.d Annual Report
Recreation Program Coordinator Meredith Lawrence noted that the Commission was provided with the
2017 Parks and Recreation Annual Report outlining the recreational programs and parks in Mendota
Heights.
Commissioner Tupper commented that this was a really fun way to communicate what happened in the
parks and asked if this had been done in the past. Ms. Lawrence replied that one has been done every
year. Commissioner Tupper suggested that this would be a good source of snippet information to share
on social media and in the Friday news.
5.e Projects Proposal List
At this point, Commissioner Steve Goldade joined the meeting at 7:07pm.
Recreation Program Coordinator Meredith Lawrence stated that at the March 1, 2018 Workshop
Meeting the Commission reviewed the Capital Improvement Plan Proposals that staff had prepared
from ideas and suggestions that the Commission had throughout the last year. She also noted that this
would be discussed again at the May 9, 2018 meeting but wanted to add this to the information packet
for those who were not at the workshop.
Chair Hinderscheid stated that he had handed out, just for reference, a list showing the updates and
when they were last done and prioritized them from oldest to most recent. For instance, his list showed
that Hagstrom-King had their playground equipment last updated in 2003. This may be an area where
they might want to start.
He also mentioned that there are a number of different things that were brought up; however, in
speaking to some of the Parks and Recreation people from other cities one of the features in their parks
that they have indicated is very popular are zip-lines. He did some research and found out that a zip-line
comes in three different sizes; 34 feet, 50 feet, and 66 feet. A 50-foot zip-line would run approximately
$12,000 and to have it installed would be approximately $1,800. One thing other cities have done is
install a dual zip-line; one to accommodate handicapped children but could be used by other children
page 27
with another zip-line next to it so they could be used side-by-side. He requested a recommendation
from the Commission to move forward with a zip-line and work with staff to determine the proper
location.
Commissioner Miller suggested that the Commission compare the current proposal list what had been
prioritized in the past to see what was finished and what had been undone to see what, if anything,
would match up.
It was also noted that a hotel is going up at Pilot Knob and I-494 that would be within the city limits of
Mendota Heights and the question was raised to whether or not this project would contribute to the
park funds. City Administrator Mark McNeill replied that it does but he would have to find out just how
much. He also noted that the funding and prioritization of the proposal list would be discussed at the
May 9, 2018 meeting. The list has many things that would be very worthwhile; however, there is only
funding for approximately one-fourth of them. Additional items could be added but only at the expense
of other projects.
It was asked if there was anything on the previous list that has been recommended for approval this
year that would need to have bids started on it so that it gets done this year. Ms. Lawrence replied that
there is one item that would be discussed later in her recreation update. The Skateboard Park was an
item that was going to be discussed in March; unfortunately, they did not have a quorum for the March
meeting and it had been cancelled. It was brought to the Council because with the weather turning soon
(hopefully) there was a concern that without making the repairs to the skate park they would have to
lock it up. This item was approved by Council and staff is moving forward with making the changes at
Rogers Lake. Upon request, she then provided a list of what those $10,000 changes are.
Ms. Lawrence indicated that she would add the zip-line suggestion to the list to be discussed and
prioritized at the May 9th meeting with Council; however, if the Commission would rather make a
motion now on that item they would be welcome to do so.
Chair Hinderscheid deferred the zip-line discussion to the May 9th meeting. He also noted that he had
spoken with the Park and Recreation Director at Lakeville and one of the things brought up was the park
they installed that cost $350,000. Out of that money, $276,000 was gained through donations. They
made up a brochure showing what the project was and then they went and knocked on doors. This
struck him as an area where Mendota Heights could explore and possibly do better.
A question was raised about whether the zip-line cost included some kind of padding on the ground in
case a child fell off. Chair Hinderscheid replied that there would have to be some type of excavation to
put in the proper type of wood chips, etc. Other questions would need to be entertained and research
done. Ms. Lawrence stated that before the May 9th meeting she would do some research and talk to her
contact at the League of Minnesota Cities on the liability of installing a zip-line.
Chair Hinderscheid mentioned that Sibley High School has three tennis courts that may be slated for
demolition; however, it could be an option to use those courts for Pickleball. He plans to attend the
referendum meeting to see if he can get some traction on that. Commissioner Levine, being on the
school board, indicated that the courts in question are in pretty rough shape and are not safe to play
tennis on anymore. They may be able to be repurposed but that could be answered at the open house.
page 28
6. Reports
6.a Par 3 Update
Recreation Program Coordinator Meredith Lawrence stated that the projected open date for the Par 3
Golf Course was still unknown due to the weather. They had planned to open April 1; once the weather
turns they will open the course. Staff training is currently taking place with the hope to be open April 23,
2018.
The 2017 financial information for the golf course will be available at the joint meeting with the City
Council on May 9.
She also explained that the Thompson Oaks Golf Course in West St. Paul has closed and the Par 3 staff
has worked with them to capitalize on the opportunities for the golf course. A number of West St. Paul
players are joining the Mendota Heights leagues, new leagues are being brought to the course, staff will
be purchasing equipment from their course, the Par 3 will now schedule tee times for interested
customers, and Thompson Oaks staff has joined the Par 3 customer service team.
6.b Recreation Program Update
Working from information provided to the Commission prior to the meeting, Recreation Program
Coordinator Meredith Lawrence shared that registration for the summer programs opened on March 1,
2018 and shared the list of the programs offered and the number of participants currently registered for
each one. The numbers have increased since she put the list together by approximately 150 participants.
She then shared information on the Fee Assistance Program that was passed on March 6, 2018 by the
City Council and the details of that program; the off-leash dog park will remain as a temporary use until
that expires in 2020, at which time the Council will revisit; due to the RFM group not co-sponsoring the
Mendota Heights Summer Concert Series, staff is proposing a monthly event in place of the previous
weekly event for the summer of 2018, which includes a talent show, three concerns, and a movie in the
park; she reviewed the approved repairs at the Roger’s Lake Skate Park; the Parks Celebration set for the
first weekend of June; that the Commission is now accepting applications for a student representative;
plans to conduct a survey of residents regarding capital improvement plan interests; and she shared the
number of skaters at the three Mendota Heights ice rinks during the 2017-2018 warming season.
6.c Natural Resources Update
Public Works Director Ryan Ruzek provided the Natural Resources Update, which included Wood Duck
Houses, Rain Gardens, GreenSteps, Recycling Event, the Parks Budget, the Natural Resources Plan, and
Upcoming Events.
Upcoming Events
April 21st – Country Day School clean up event at Valley Park (Trash Collection)
April 21st – Fix It Clinic in Farmington
April 21st – Shred Event at West St. Paul Sports Complex
April 21st – 29th – Shoe and Clothing Recycling Drop Off – City Hall
April 28th – Improving Water Quality in Valley Park with MPR
page 29
May 5th – Milkweed Podcast and other Pollinator Attractions – Pilot Knob Preservation
(registration required)
May 5th – Mendota Heights Clean Up Day – Mendakota Park
6.d Comprehensive Plan Update
The draft 2040 Comprehensive Plan, in terms of the Parks and Trails, was shared with the
Commissioners. If the Commission has edits, suggestions or ideas, they can contact Recreation Program
Coordinator Meredith Lawrence who will share that information for consideration and possible
incorporation into the plan.
Items included in the draft plan were Goals and Policies; Historical Development; Existing City Park
Facilities and Types; State, Regional, and Private Parks and Open Spaces;
Trail Facilities; Future Park and Trail Needs; and maps of the Park and Trails and of the Bicycle Facilities
and Plan.
7. Announcements and Commission Comments
Recreation Program Coordinator Meredith Lawrence shared that seasonal positions are posted on-line
at Mendota-Heights.com for tennis positions, golf maintenance, golf instructor, and recreation
assistants for the summer playgrounds and camps. Also the student representative position has been
posted and will close at the end of April.
City Administrator Mark McNeill shared that the joint meeting with the Council is scheduled for May 9,
2018 and staff has worked on the agenda, which is very full. On the Parks portion they want to talk
about finances, capital improvements list, park and trail updates, and a deep dive into the Par 3. A
presentation by an engineering company on the Natural Resources Plan (which is woefully outdated) will
take place. Other topics include EAB and the GreenSteps Cities Program and staffing on that. Due to this
very full agenda Mr. McNeill asked if the Commission would be open to entertaining a second joint
meeting later in May. Another suggestion was to cancel the regular Parks & Recreation Commission
meeting at 6:30 p.m. and have the joint meeting be extended into that time. The work session would be
an open public meeting; however, it would not be televised.
It was determined to hold a second joint work session with the City Council and have the Natural
Resources discussion at that time. Mr. McNeill will pose that to the Council for their determination and
it would be communicated to the public.
Commissioner Tupper stated that she was really excited about all of the green initiatives and where they
can be taken and integrated into the community. Hanging on to the thought that the snow is going to
melt and everyone will be able to enjoy the parks.
Commissioner Levine reminded everyone of the vote coming up on May 8 for the School District Bond; a
$117M renovation focusing on academics and for maintenance; among many other items. An
informational open house has been scheduled for Thursday, April 12 at Henry Sibley High School from
6:00 pm to 8:00 pm.
Commissioner Miller stated that he thought there was very good discussions that were very fitting and
in tune of the role of this commission; looking at the long-range issues staff presented. He also
page 30
expressed his appreciation to staff for their time and attendance and for the staff support for the
commission.
Commissioner Klepperich congratulated the basketball teams in the community; particularly Minnehaha
Academy for winning its region and St. Thomas Academy for winning a consolation championship. Also,
Henry Sibley students have been in the news doing some positive things – which is a good thing.
Commissioner Kipp stated that it was a good meeting and he expressed his appreciation to staff for
coming and providing valuable information and for trying to work with the commission. Ms. Lawrence is
doing a wonderful job in getting the information that they need.
Commissioner Goldade also expressed his appreciation to staff for a very well organized meeting agenda
and he was excited to hear the outcome of the 3rd party looking at the parks and the playgrounds.
Chair Hinderscheid expressed his appreciation to Mr. Masica and Mr. Karlen for stopping in and
speaking with the commission about the improvements and the changes they were looking to do. He
also thanked Ms. Schueller for the award of the grant that saved the city some money in obtaining the
recycling containers. He was also glad to hear that the city is going to use a certified playground
inspection company. He is excited on moving forward on the playgrounds and bringing a stronger focus
to Natural Resources. He also echoed the sentiments made to staff.
8. Adjourn
Motion Miller/Second Tupper to adjourn the meeting at 8:12 PM
AYES 6: NAYS 0: ABSENT 1
Minutes Taken By:
C. Darlene Oehlke
Independent Contractor
page 31
Request for City Council Action
DATE: June 19, 2018
TO: Mayor and City Council, City Administrator
FROM: Lorri Smith, City Clerk
SUBJECT: Change of Date or Start Time for Certain Regularly Scheduled City Council
Meetings
COMMENT:
INTRODUCTION
The City Council is asked to consider rescheduling the meeting date or times for the July 3rd,
August 7th, September 18th, and November 6th regularly scheduled Council meetings.
BACKGROUND
The July 4th holiday falls on a Wednesday this year, one day after the regularly scheduled City
Council meeting date of July 3rd. To allow for a longer holiday period, the Council is asked to
consider rescheduling the regular meeting date to Monday, July 2, 2018, starting at 7:00 pm.
This year’s Night to Unite is scheduled for Tuesday, August 7th, which is the same night as a city
council meeting. In years past, the city council has chosen to start their meeting on this night an
hour later so that councilmembers can attend parties being held by various neighborhoods.
September 19th is Yom Kippur, which begins at sundown on Tuesday, September 18th. As such,
it is recommended that the City Council meeting date be changed to Monday, September 17th, so
as to not conflict with that holiday.
State law prohibits public meetings between the hours of 6:00 pm and 8:00 pm on the day that an
election is held within the city. This year’s General Election is scheduled for Tuesday, November
6th, which is the same night as a regular city council meeting. In years past, the city council has
chosen to move their meeting to Wednesday, November 7, 2018.
RECOMMENDATION
If the council desires, a motion to approve changing the date and time of the regularly scheduled
meetings as:
July 3 rd meeting moved to Monday, July 2, 2018, start time of 7:00 pm
August 7th meeting start time moved to 8:00 pm
September 18th meeting moved to Monday, September 17, 2018, start time 7:00 pm.
November 6th meeting moved to Wednesday, November 7, 2018, start time of 7:00 pm
Approval of this action requires a majority vote of the city council.
page 32
DATE: June 19, 2018
TO: Mayor and City Council, City Administrator
FROM: Meredith Lawrence, Recreation Program Coordinator
SUBJECT: May Par 3 Update and Financial Report
COMMENT:
Background
Attached is the May Par 3 Financial Report. The Par 3 officially opened for the 2018 season on
May 1. During the month of May the course had a total of 1,710 rounds of golf played.
Throughout the month of May, the Par 3 had a total monthly revenue of $25,651. This includes
Greens Fees, Recreation Programs and Concessions. After the month of May the Par 3 had a year
to date revenue total of $47,115.
The course’s May expenditures totaled $18,796. The year to date total was $48,050. Thus, the
course currently has a loss of $935 for the 2018 season.
Staff is very happy with these numbers due to a few notable expenses that have been incurred, paid
and included in these numbers. These are onetime expenses and include:
• A large portion of the year’s liability insurance has been already paid for the 2018 year
• Worker’s compensation insurance has been paid in full for the 2018 year
• Expense of $3,455 for an RFP for services has been paid in full
• Necessary large equipment repairs in the total of $5,986.72 paid to MTI
• Chemicals and turf consultation totaling $7,155.28 paid for entire season
Thus, these large expenses will not be incurred each month, so if the course’s revenue can stay
consistent, the course should be able to produce a favorable profit for the year.
page 33
MONTHLY EXPENDITURE REPORT
MAY 2018
MENDOTA HEIGHTS PAR 3
BUDGET TO ACTUAL REPORT
May 2018 (41.66% OF YEAR)
REVENUES MAY YTD YTD
BUDGET 2018 2018 %
GREENS, LEAGUE & TOURN FEES $110,000 $17,848 $17,848 16.23%
RECREATION PROGRAMS $38,000 $4,942 $26,406 69.49%
CONCESSIONS $20,000 $2,861 $2,861 14.30%
SUNDRY REVENUE $0 $0 $0 0.00%
INTEREST $250 $0 $0 0.00%
CAPITAL CONTRIBUTIONS $0 $0 $0 0.00%
PAR 3 FUND REVENUE TOTAL $168,250 $25,651 $47,115 28.00%
EXPENDITURES MAY YTD YTD
BUDGET 2018 2018 %
CLUBHOUSE SALARIES $30,000 $1,534 $1,534 5.11%
ADMINISTRATIVE SALARIES $21,579 $2,151 $5,692 26.38%
FICA/PERA $9,267 $607 $1,350 14.57%
MEDICAL INSURANCE $6,336 $528 $2,640 41.67%
U/E & W/C INSURANCE $1,892 $1,574 $2,286 120.81%
RENTALS $2,500 $600 $600 24.00%
UTILITIES $12,400 $881 $3,944 31.80%
PROFESSIONAL FEES - AUDIT $2,500 $0 $0 0.00%
PROF FEES - CONSULTING FEES $350 $0 $0 0.00%
PROF FEES - GROUNDS MGMT $4,000 $0 $3,455 86.38%
PROF FEES - GROUNDS WAGES $19,000 $1,554 $3,018 15.88%
PROF FEES - TREE MAINTENANCE $2,000 $0 $0 0.00%
ADVERTISING/NEWSLETTER $400 $0 $149 37.16%
LIABILITY/AUTO INSURANCE $3,200 $0 $3,290 102.81%
OPERATING COSTS/SUPPLIES $6,000 $562 $2,152 35.87%
FUEL $1,300 $260 $300 23.08%
REPAIRS & MAINTENANCE $14,500 $8,130 $16,079 110.89%
SUNDRY/DUES/MILEAGE/CLOTHING $2,800 $105 $556 19.86%
CONTINGENCY $0 $0 $0 0.00%
ONLINE REG & CREDIT CARD FEES $3,600 $308 $1,006 27.94%
PAR 3 EXPENDITURES TOTAL $143,624 $18,796 $48,050 33.46%
6/14/2018
page 34
Request for City Council Action
DATE: June 19, 2018 TO: Mayor and City Council, City Administrator FROM: Lorri Smith, City Clerk SUBJECT: Resolution 2018-42 Appointment of Election Judges and Absentee
Ballot Board
COMMENT:
BACKGROUND
Section 204B.21 of the Minnesota Election Laws requires that election judges shall be
appointed by the governing body of the municipality, and the appointments shall be made
at least 25 days before the election.
DISCUSSION
Attached for your consideration is a resolution appointing election judges for the
upcoming State Primary and General Election. The individuals listed have indicated their
willingness to serve. To serve as an election judge, the law requires regular election judges
to complete a two hour training session. Head judges and Absentee Ballot Board judges
must complete three hours of training. This training will be completed during the month
of July.
The resolution also authorizes the City Clerk to appoint additional judges and designate
persons to serve on the absentee ballot board as needed.
Staff is recommending that the election judges pay be set at $11.00/hour for regular
judges, and $13.00/hour for Head judges and Absentee Ballot Board judges.
RECOMMENDATION
Staff recommends that the City Council approve Resolution 2018-42 Appointment of
Election Judges and Absentee Ballot Board. This action requires a majority vote of the
City Council.
page 35
City of Mendota Heights
Dakota County, Minnesota
RESOLUTION 2018 - 42
RESOLUTION APPOINTING ELECTION JUDGES
AND ABSENTEE BALLOT BOARD FOR THE
2018 STATE PRIMARY AND GENERAL ELECTIONS
WHEREAS, pursuant to Section 204B.21 of the Minnesota Election Laws, election
judges shall be appointed by the governing body of the municipality; and
WHEREAS, the appointments shall be made at least 25 days before the election at which
the election judges will serve; and
WHEREAS, election judges shall receive at least the prevailing Minnesota minimum
wage for each hour spent carrying out their duties at the polling place and in attending training
sessions.
NOW THEREFORE BE IT RESOLVED by the City Council of the City of Mendota
Heights that the individuals listed on the attached Exhibit A are appointed to serve as election
judges for the August 14, 2018 State Primary and the November 6, 2018 General Election at the
hourly rate of $11.00 for regular election judges and $13.00 for head election judges and election
judges serving on the Absentee Ballot Board.
BE IT FURTHER RESOLVED that the City Clerk is authorized to appoint additional
election judges as needed for the conduct of elections.
Adopted by the City Council of the City of Mendota Heights this 19st day of June, 2018.
City Council
City of Mendota Heights
__________________________
Neil Garlock
Mayor
ATTEST:
_____________________________
Lorri Smith
City Clerk
page 36
EXHIBIT A
2018 MENDOTA HEIGHTS ELECTION JUDGES
FIRST LAST
Mary Ann Adrian
Robert Albrecht
Bonnie Anderson
Peter Beagan
Alice Beihl
Roland Beihl
Linda Birnbaum
Janet Bolger
Kathleen Canniff
Janice Chasman
Steven Commers
Joe Coopersmith
Susan Davis
Jeanne Dill
Linda Distad
Robert Doffing
Susan Doffing
Robert Donnelly
Kathryn Doyle
Angela Dzik
Patrick Egan
Pam Ehrlich
Lawrence Fischer
Harold Fotsch
C. Leigh Gerber
Marilyn Gonsowski
Jean Haskell
Alyssa Heinz
Milissa Hickey
Sue Holman-Sutich
James Johnson
Roger Junnila
Susan Kilian
Judith Klepperich
Michael Kluznik
David Korte
Mary Kowalski
Yelva Lynfield
Kathryn McKeag
Sally McLaughlin
Billie McQuillan
Kathy Miller
Nancy Nelson
Sharon Nelson
Joseph Noeker
Jolene Novak-Haverkamp
Mary Ann Novotny
Judith O'Gara
Kathy Packer
Michelle Parker
Nancy Piram
Connie Powell
John Price
Nancy Price
Mario Reyes
Marsha Skogheim
Billie Slater
Joseph Slater
Ellen Sloane
Sherri Stein
Evelyn Sunness
Nedine Thera
Carol Tunell
Kasey Tunell
Laurita Weinzettel
Kathie Woods
Michelle Zarmbinski
Absentee Ballot Board
Michelle Parker
Janet Bolger
Nedine Thera
Kathy Packer
Lorri Smith, City Clerk
Nancy Bauer, Deputy City Clerk
Sharon Hinze
Pam Deeb
Kristin Wittrock
Kristen Schabacker
page 37
DATE: June 19, 2018
TO: Mayor and City Council
FROM: Mark McNeill, City Administrator
SUBJECT: Out of State Conference Request
COMMENT:
INTRODUCTION
The Council is asked to approve the City Administrator’s attendance at the 104th Annual
Conference of the International City/County Management Association. This will be held
September 23rd to 26th in Baltimore, Maryland.
BACKGROUND
By policy, the City Council must approve all out of state travel at an open meeting.
The ICMA Conference is recognized as the premier annual conference for the city management
profession. I am asking the Council for approval to attend this year’s conference. I would arrive
on September 22nd.
BUDGET IMPACT
The estimated costs for attending are:
Travel airfare $300
Registration 710*
Lodging 860
Meals 100
Total $1970
*Assumes registration by July 12th
Funds for this are available in the Administration budget.
RECOMMENDATION
The Mayor has recommended the approval of the City Administrator’s request to attend the
conference.
page 38
ACTION REQUIRED
If the Council concurs, it should, by motion, authorize attendance of City Administrator Mark
McNeill at the ICMA Conference in Baltimore, Maryland, September 23rd to 26th, 2018
________________________
Mark McNeill
City Administrator
page 39
DATE: June 19, 2018 TO: Mayor, City Council and City Administrator FROM: Dave Dreelan, Fire Chief SUBJECT: Out of State Travel - 2018 International Fire Chiefs Conference
COMMENT:
Introduction
The Council is asked to approve travel to an out of state conference for the Fire Chief.
Discussion
City Resolution No. 98-04 requires that all out of state travel for city council and city employees
be approved by the city council in advance.
The 2018 International Fire Chiefs Conference is being held August 7, 2018, to August 12, 2018,
in Dallas, Texas. I am requesting Council’s approval to attend the conference. I have attended
this conference in the past and found it to be a very worthwhile event. The training at this
conference is specifically designed to help chief officers meet the challenges of managing a fire
department in today’s ever changing environment.
Budget Impact
The Fire Department budget would pick-up the costs of the travel, hotel, meals, and registration.
There are sufficient funds in the 2018 Fire Budget to cover the costs of this conference. The
approximate cost to attend the conference would be $2,000.00. (Approximate costs are: lodging
$825.00, meals $200.00, airfare $350.00 and the registration costs is $625.00).
Recommendation
The City Administrator recommends that the Mendota Heights City Council approve the out of
state travel for Fire Chief Dave Dreelan to the 2018 International Fire Chief Conference in Dallas,
Texas.
Action Required
If Council agrees with the recommendation, it should pass a motion authorizing the out of state
travel for Fire Chief Dave Dreelan to the 2018 International Fire Chiefs Conference in Dallas,
Texas.
page 40
Request for City Council Action
DATE: June 19, 2018
TO: Mayor and City Council, City Administrator
FROM: Meredith Lawrence, Recreation Program Coordinator
SUBJECT: Resolution 2018-41 Accepting Donations
COMMENT:
INTRODUCTION
The City Council is asked to formally accept donations which were received for the Scott Patrick
Memorial 5K Race, City Parks Celebration, 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 2nd, the annual 5K Race and City Parks Celebration were held. A total of 82 different
donors contributed cash, services, or merchandise with a value of $17,205 for the race. Twelve
additional businesses or organizations donated an additional $3,050 in cash for the Parks
Celebration.
There were 349 participants in the 5K this year, which raised over $9,000 for Special Olympics
of Minnesota.
On July 26th, the annual Cliff Timm Memorial Fishing Derby will be held. One donor donated
$1,000 in cash for the event.
The City is grateful for the generosity of all donors.
RECOMMENDATION
Staff recommends that the Council accept the donations, by approving Resolution 2018-41.
ACTION REQUIRED
If the Council concurs, it should, by motion adopt RESOLUTION 2018-41, FORMALLY
ACKNOWLEDGING THE RECEIPT OF DONATIONS TO THE CITY AND THE SCOTT
PATRICK MEMORIAL 5K RACE, CITY PARKS CELEBRATION AND CLIFF TIMM
MEMORIAL FISHING DERBY
page 41
CITY OF MENDOTA HEIGHTS
DAKOTA COUNTY, MINNESOTA
RESOLUTION 2018-41
RESOLUTION FORMALLY ACKNOWLEDGING THE RECEIPT OF DONATIONS
TO THE CITY, THE SCOTT PATRICK MEMORIAL 5K RACE, CITY PARKS
CELEBRATION 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 City of Mendota Heights, Scott Patrick Memorial 5K Race, Parks Celebration and
Cliff Timm Memorial Fishing Derby.
2018 5K Donations
VENDOR DONATION VALUE
Neil Garlock 55 Inch LG TV $500
BP - Mendota Heights 2 Oil Changes $75
Buffalo Wild Wings - Eagan Wing Party & Sauces $65
Paradise Car Wash - Eagan Car Wash Detail $240
Paradise Car Wash - Eagan 2 - 5 pack Supreme Washes $270
David & Kay Frye $25 Buffalo Wild Wing Gift Card $25
David & Kay Frye $25 Holiday Gift Card $25
Chet's Liquor 4 Bottles of Wine $50
Steve Morganson 55 Inch Sharp TV $500
Bob Brackey 55 Inch Sharp TV $500
DeGidio's 4-$50 Gift Cards $200
Lucky's 10 - $25 Gift Cards $250
Cherokee Tavern 2 - $25 Gift Cards $50
Billy's On Grand 2 - $25 Gift Cards $50
Romero Auto Repair Oil Change $25
Holiday - Lilydale 2 - $25 Gift Cards $50
Mike's Butcher Shop $20 Gift Card $20
Artitude $150 Gift Card $150
Great Moon Buffet 2 - $25 Gift Cards $50
Mauer Chev 2 Oil Changes $100
Pool & Yacht 2 - $100 Gift Cards $200
Pizza Shop 3 - $25 Gift Cards $75
Soapy Joe's 17 Assorted Car Washes $245
page 42
Boca Chica $30 Gift Card $30
Teresa's 2 - $20 Gift Cards $40
Tapper's Pub 9 - $25 Gift Cards $225
Gallagher's 3 - $25 Gift Cards $75
Southview Country Club Social Membership $250
Inver Grove Ford 2 - Oil Changes $100
Bogey's 3 - $50 Gift Cards $150
O'Gara's 4 - $25 Gift Cards $100
Perkins - Eagan $25 Gift Card $50
Fairfield Inn - MH 2 - One Night Stays $218
Holiday Inn Express - Eagan One Night Stay $120
Best Western Plus - Eagan One Night Stay $120
Lost Spur 4 Rounds of Golf $76
Mendota Heights Par 3 12 Rounds of Golf $168
Bill & Brenda Moosbrugger $50 Cash $50
Kaposia Tree Service $150 Gift Card $150
Sunfish Cellars 3 - $50 Gift Cards $150
Granite City - Eagan 2 - $50 Gift Cards $100
Ollie $50 Cash $50
Yankee Tavern 2 - $20 Gift Cards $40
Mendakota Country Club Round of Golf For 4 With Carts & Lunch $600
Fireside Lounge $20 Gift Card $20
Dixie's on Grand 2 - $20 Gift Cards $40
Tom Reid's Hockey City Pub $30 Gift Card $30
5.8 Grill & Tap 2- $20 Gift Cards $40
Inver Grove Toyota 2- Oil Changes $120
Shepard Road Parking 7 Day Parking Pass $90
Inver Grove Honda 2 Oil Changes $100
Greg Boyle 55 Inch LG TV $500
Bill, John, Joe 60 Inch Vizio TV $650
Zerorez Gift Basket $210
Kraus-Anderson 4 Twins Tickets $216
Fix All Inc $100 Cash $100
Meisinger Construction $200 Cash $200
Deerwood Bank Gift Bag $45
Dave Libertini $50 Cash $50
St Paul Saints 8 Outfield Reserve Tickets $112
Baker's Square - WSP 3 Free Pies $40
Applebee's-WSP $40 Gift Cards $40
Highland Café & Bakery $25 Gift Card $25
Julie Fronk $40 Macy's Gift Card $40
Courtyard Marriott 5 Free Nights Stays $600
Goodfellows Landscapes 500 Sunscreen Lip Balms $500
Landmark Jewelers Pearl Necklace $300
Downtowner 2 - $25 Gift Cards $50
Ed Hayes 30 Pair Of Assorted Juzo Socks $330
George Kruger $25 Wildcats Bar & Grill Gift Card $25
Moose Country 12 Cases Of Beer & 6 Bottles Of Wine $300
page 43
Judy & Gordie Dahlberg $50 Cash $50
West Oak Reality $50 Cash $50
St Paul Hotel Deluxe Overnight Accommodations for 2 $170
Anytime Fitness-MH 10 - 2 Month Membership & 8 Training Sessions $4,500
Pearsons Candy Assorted Nut Rolls $250
Bob & Laurie Murphy Plantronics BackBeat FIT 305 & BackBeat FIT $180
Wendy Guzman $50 Cash $50
Paty McFarlane $50 Cash $50
BC Contracting Shade Tree $275
Grand 7 $100 Gift Card $100
Ultimate Events 2 Twins Tickets $180
Total $17,205
2018 Parks Celebration Donations
Valmont $500
Bituminous Roadways $500
The Reserve $250
Mendakota Animal Hospital $600
Hudson Co Inc. $100
Somerset Country Club $100
Saint Thomas Academy $250
Convent of the Visitation $250
At Home Apartments $100
Anonymous $100
Dr. Jennifer Eisenhuth $100
Dustin J. Stifter, Insurance Agent $200
Total $3,050
Cliff Timm Memorial Fishing Derby 2018 Donations
Charitable Gift Fund of Cliff Timm 1,000
Total $1,000
Adopted by the City Council of the City of Mendota Heights this 19th day of June, 2018.
CITY COUNCIL
CITY OF MENDOTA HEIGHTS
Neil Garlock, Mayor
ATTEST:
Lorri Smith, City Clerk
page 44
REQUEST FOR COUNCIL ACTION
DATE: June 19, 2018
TO: Mayor, City Council, and City Administrator
FROM: Ryan Ruzek, P.E., Public Works Director
SUBJECT: Dakota County Capital Improvement Plan (CIP) Request
COMMENT:
INTRODUCTION
The Council is asked to approve a request for an intersection improvement and traffic control
modification to County Road 8 (Wentworth Avenue) and TH 149 (Dodd Road) to be added to
the Dakota County 2019-2023 Capital Improvement Plan (CIP) in 2022.
BACKGROUND
Mendota Heights recently commissioned a North-South Mobility Study which included an
assessment and recommendations to TH 149 (Dodd Road).
DISCUSSION
Wentworth Avenue is a county road and Dodd Road is a state highway. On the attached
Mendota Heights CIP, staff is showing that intersection improvements to Dodd and Wentworth
& Dodd and Marie are feasible based on current funding allocations.
Mendota Heights will need to request that Dakota County include the intersection improvement
and traffic control modifications into their CIP for the County to participate in the project costs.
County funding for this project would be 55% county and 45% city.
BUDGET IMPACT
The North-South Mobility Study reported that improvements to this intersection would be
$200,000-$400,000. Staff is using $375,000 for its design and construction amount.
RECOMMENDATION
Staff recommends that the Council authorize the Public Works Director to send a letter to Dakota
County requesting an intersection improvement at Wentworth Avenue and Dodd Road.
ACTION REQUIRED
Approve a motion authorizing the Public Works Director to send a letter to Dakota County
requesting an intersection improvement at Wentworth Avenue and Dodd Road. This action
requires a simple majority vote.
page 45
STREET IMPROVEMENT PLAN 2019-2023
CITY OF MENDOTA HEIGHTS
SUMMARY OF PROJECT COSTS AND FUNDING SOURCES
Project Name Proj. #2019 2020 2021 2022 2023 Total
Marie Avenue Rehabilitation 2 110 $1,111,000 $0 $0 $0 $0 $1,111,000
Wesley Neighborhood Rehabilitation 111 $517,000 $0 $0 $0 $0 $517,000
Dodd Road Trail/Relocate Maple Street 304 $525,000 $0 $0 $0 $0 $525,000
Centre Pointe & Commerce Drive Rehabilitation 112 $0 $1,732,000 $0 $0 $0 $1,732,000
Sylvandale Road Neighborhood Rehabilitation 113 $0 $0 $1,081,000 $0 $0 $1,081,000
Brompton/Winston Water Main Replacement 107 $0 $0 $710,000 $0 $0 $710,000
Victoria Curve 114 $0 $0 $0 $1,250,000 $0 $1,250,000
Marie/Dodd Mini Roundabout 119 $0 $0 $0 $375,000 $0 $375,000
Wentworth/Dodd Mini Roundabout 120 $0 $0 $0 $375,000 $0 $375,000
Friendly Hills Water Main Replacement 106 $0 $0 $0 $0 $4,205,000 $4,205,000
Decorah Realignment w/Wagon Wheel 121 $0 $0 $0 $0 $575,000 $575,000
Dodd & Highway 110 Intersection - Super street 122 $0 $0 $0 $0 $3,300,000 $3,300,000
Curly's/Valley View 115 $0 $0 $0 $0 $0 $0
Tilsens Neighborhood 116 $0 $0 $0 $0 $0 $0
Bunker Hills Neighborhood 117 $0 $0 $0 $0 $0 $0
Carmen Lane/Dakota Drive/Waters Drive 118 $0 $0 $0 $0 $0 $0
Annual Street Crack Sealing and Seal Coating 401 $100,000 $100,000 $100,000 $100,000 $100,000 $500,000
Annual Pavement Markings 402 $17,000 $17,000 $17,000 $17,000 $17,000 $85,000
Annual Street Sweeping 403 $20,000 $20,000 $20,000 $20,000 $20,000 $100,000
Total $2,290,000 $1,869,000 $1,928,000 $2,137,000 $8,217,000 $16,441,000
Funding Sources 2019 2020 2021 2022 2023 Total
Municipal Bond Sales $783,500 $698,600 $1,010,800 $860,000 $1,411,800 $4,764,700
Municipal State Aid Fund $750,000 $400,000 $0 $1,050,000 $1,500,000 $3,700,000
Other Government Unit Funding $132,000 $132,000 $132,000 $132,000 $4,447,000 $4,975,000
Sanitary Sewer Utility Fund $0 $0 $0 $0 $0 $0
Special Assessments $419,500 $561,400 $730,200 $40,000 $853,200 $2,604,300
Storm Water Utility Fund $205,000 $77,000 $55,000 $55,000 $0 $392,000
Water Revenue Fund $0 $0 $0 $0 $0 $0
Total $2,290,000 $1,869,000 $1,928,000 $2,137,000 $8,212,000 $16,436,000
page 46
REQUEST FOR COUNCIL ACTION
DATE: June 19, 2018
TO: Mayor, City Council, and City Administrator
FROM: Ryan Ruzek, P.E., Public Works Director
SUBJECT: Approve Purchase Order for Playground Surfacing Material
COMMENT:
INTRODUCTION
The Council is asked to approve a purchase order for the installation of surfacing material at the 11
city playgrounds.
BACKGROUND
The city recently inspected the 11 playgrounds in the city. A number of priority 1 and 2 corrections
were noted in the report. Priority 1 and 2 concerns have a potential to cause injuries ranging from
serious to life threatening. The complete report is available at city hall.
DISCUSSION
ASTM and CPSC guidelines require a compliant surfacing be installed in the playground area. The
guideline for this surfacing is to maintain a minimum depth of 9 inches of Engineered Wood Fiber
(EWF) or other compliant surface. A majority of the noncompliant items in the report are due to lack
of adequate surfacing. Staff is proposing to have a contractor loosen the existing surfacing and blow
in new EWF. Additional repairs including adjustment of suspension bridges and protruding bolts
will be corrected by parks staff. Upon completion of these repairs, staff will reassess the playground
condition. Some repairs may require work to be done by the equipment manufacturer.
Staff reached out to several contractors but was only able to secure one quote for this work. Two
contractors would only supply the material and two others have been unresponsive. Midwest
Groundcover submitted a proposal of $13,440 for this work.
BUDGET IMPACT
This installation is proposed to be funded through the parks department general levy under parks
maintenance supplies and has adequate funds for this improvement.
RECOMMENDATION
Staff recommends that the Council approve the purchase order to Midwest Groundcover for the
installation of Engineered Wood Fiber in the city playgrounds.
ACTION REQUIRED
If Council agrees with the recommendation, it should pass a motion approving a purchase order to
Midwest Groundcover in the amount of $13,440 for the installation of Engineered Wood Fiber in the
city playgrounds. This action requires a simple majority vote.
page 47
2018 Proposal
Date
6/12/2018
Estimate #
18026
Client Information
City of Mendota Heights
Midwest Groundcover Information
Payment Terms
Net 15
Total
Subtotal
Sales Tax (0.0%)Please sign & return this estimate along with job purchase order.
Product specified has been approved with this signiture.
This agreement will authorize Midwest Groundcover to be an
authorized purchasing agent on their organizations behalf.
Midwest Groundcover Express Blower Service
Justin Crandall - Owner | 763-274-9829
MidwestGroundcover@gmail.com
www.MidwestGroundcover.net
PO Box 120 | Orono, MN 55356
Approval Signature: _____________________________________ Date: ___/___/______
Valid for 30 days.
TERMS: PAST DUE ACCOUNTS CHARGED A 1.5% PER MONTH SERVICE CHARGE WHICH IS AN ANNUAL RATE OF 18%. In the
event any action by Midwest Groundcover is necessary to collect amounts owed, customer shall pay to Midwest Groundcover all attorneys' fees,
costs and expenses, including deposition costs and expert fees incurred by Midwest Groundcover in collecting the amounts owed, whether such
fees are incurred prior to litigation or arbitration, at trial or arbitration, or on appeal.
Description Qty Rate Total
Installation of Engineered Wood Fiber.60 28.00 1,680.00
Mendakota Park - 2171 Dodd Road
Installation of Engineered Wood Fiber.60 28.00 1,680.00
Victoria Highlands - 1700 Diane Road
Installation of Engineered Wood Fiber.50 28.00 1,400.00
Friendly Hills Park - 2360 Pueblo Lane
Installation of Engineered Wood Fiber.50 28.00 1,400.00
Rogers Lake Park - 1000 Wagon Wheel Trail
Installation of Engineered Wood Fiber.45 28.00 1,260.00
Ivy Hills Park - 645 Butler Ave
Installation of Engineered Wood Fiber.45 28.00 1,260.00
Valley View Park - 1056 Cullen Ave
Installation of Engineered Wood Fiber.60 28.00 1,680.00
Wentworth Park - 739 Wentworth Ave
Installation of Engineered Wood Fiber.50 28.00 1,400.00
Marie Park - 1780 Lilac Lane
Installation of Engineered Wood Fiber.60 28.00 1,680.00
Hagstrom King Park - 555 Mendota Heights Road
$13,440.00
$13,440.00
$0.00
page 48
DATE: June 19, 2018
TO: Mayor, Council and City Administrator
FROM: Kelly McCarthy, Chief of Police & Emergency Manager
SUBJECT: Resolution No. 2018-43, Authorizing the Donation of Bicycles to Rick’s Bike
Sale
COMMENT:
BACKGROUND
In May 2018, the Mendota Heights Police Department inventoried the bicycles being held as
found property. It was determined there were 21 bicycles that met the requirement for the police
department to remove them from found property and dispose of them as necessary.
Seeing value in not simply disposing of the bicycles, the police department contacted Rick
Anderson of Rick’s Bike Sale. Rick, along with other volunteers, refurbishes bicycles and
donates the profits to Kids ‘n Kinship and DARTS. To date, Rick’s Bike Sale has raised more
than $200,000.00.
Kids ‘n Kinship is a nonprofit organization that provides role models to children and youth ages
5-16 who are in need of an additional supportive relationship with an adult. Through this
program, children receive positive attention, enriching activities, and develop a sense of self-
worth that is essential to functioning in school, healthy relationships, and eventually on the job.
DARTS is a community-based nonprofit that provides a network of valuable information and
resources to people. It connects them to services and partnerships that improve their quality of
life, help them age well, and enable them to engage in their community.
Rick’s Bike Sale is prepared to take all of the bicycles as a donation and there would be no cost
to the City.
Attached
• List of bicycles to donate
RECOMMENDATION
If Council desires to implement the recommendation, it should, by motion adopt RESOULTION
2018-43, AUTHORIZING THE DONATION OF BICYCLES TO RICK’S BIKE SALE.
page 49
Bicycles to Donate:
Make Serial Number
• Trek TBT-1265AT5L05454
• Magna 01TD775556
• Schwinn SNTD-78
• Trouble Maker 303941752
• Specialized WSBC6U6U93793H
• Haro 0116190476
• Magna 02TD3037761
• Huffy 34897-9283612736
• Huffy MHTC12FB0584
• Dyno WYA9B6096
• Road Master NONE
• Schwinn SNFSD09F54969
• Magna SL98893304
• Kent T030917770
• Magna A95W178622
• Magna SL0701G211
• Unknown 30041080
• Schwinn CA704229
• Next 69237102
• Fisher C23CU490
• UKN TD-110322755
page 50
CITY OF MENDOTA HEIGHTS
DAKOTA COUNTY, MINNESOTA
RESOLUTION 2018- 43
A RESOLUTION AUTHORIZING THE DONATION OF BICYCLES TO RICK’S
BIKE SALE
WHEREAS, the City of Mendota Heights desires to follow Code Title 1
“Unclaimed Personal Property” for appropriate disposition of property; and
WHEREAS, the Code in Section 9 Chapter 1 defines property eligible; and
WHEREAS, the Code in Chapter 2 defines allowable legal disposition of the
property; and
WHEREAS, the City Council of the City of Mendota Heights have duly
considered this matter and wish to donate 21 found, unclaimed bicycles;
NOW THEREFORE BE IT RESOLVED, the Mendota Heights City Council
authorizes the Police Department to donate 21 found, unclaimed bicycles to Rick’s Bike
Sale.
Adopted by the City Council of the City of Mendota Heights this 19th day of June, 2018.
CITY COUNCIL
CITY OF MENDOTA HEIGHTS
___________________________
Neil Garlock, Mayor
ATTEST
______________________________
Lorri Smith, City Clerk
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page 64
DATE: June 19, 2018
TO: Mayor, City Council and City Administrator
FROM: Kristen Schabacker, Finance Director
SUBJECT: 2017 Audit Presentation
COMMENT:
BACKGROUND
BerganKDV has completed the audit for 2017. The reports for 2017 are the Annual Report &
Basic Financial Statements and the Communications Letter. These reports are included in your
packet. Matt Mayer from KDV will be at the June 19 meeting to review the Annual Audit
Report for 2017.
BUDGET IMPACT
There is no budget impact.
RECOMMENDATION
Accept the review and ask any questions you may have.
page 65
City of Mendota Heights
Annual Report and Basic
Financial Statements
December 31, 2017
page 66
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 Funding Progress – Other Post-Employment Benefits 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 68
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances –
Nonmajor Governmental Funds 72
Combining Statement of Net Position – Internal Service Funds 75
Combining Statement of Revenues, Expenses, and Changes in Net Position – Internal
Service Funds 76
page 67
City of Mendota Heights
Table of Contents
Supplementary Information (Continued)
Combining Statement of Cash Flows – Internal Service Funds 77
Detailed Schedule of Revenues, Expenditures, and Changes in Fund Balance –
Budget and Actual – General Fund 78
Report on Legal Compliance 81
page 68
1
City of Mendota Heights
Elected Officials and Administration
December 31, 2017
Elected Officials Position Term Expires
Neil Garlock Mayor December 31, 2018
Joel Paper Council Member December 31, 2020
Jay Miller Council Member December 31, 2020
Ultan Duggan Council Member December 31, 2018
Liz Petschel Council Member December 31, 2018
Administration
Mark McNeill City Administrator Appointed
Lorri Smith City Clerk Appointed
Kristen Schabacker Finance Director Appointed
page 69
2
BerganKDV, Ltd.
bergankdv.com
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, 2017,
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
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. 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.
page 70
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, 2017, 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.
page 71
4
Other Matters (Continued)
Other Information (Continued)
The accompanying supplementary information is the responsibility of management and was
derived from and relates directly to the underlying accounting and other records used to
prepare the basic financial statements. 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 supplementary information is fairly stated, in all material respects, in relation to the
basic financial statements as a whole.
Minneapolis, Minnesota
May 31, 2018
page 72
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, 2017.
FINANCIAL AND DEVELOPMENT HIGHLIGHTS
The assets of the City exceeded liabilities at the close of the most recent year by $41,736,543 (net
position). Of this amount, $5,765,260 (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 $1,871,607. Governmental activities resulted in an increase of
net position of $1,814,664. Business activities had net position increase of $56,943.
As of the close of the current year, the City's governmental funds reported a combined ending fund
balance of $13,360,454, an increase of $1,435,958 from the prior year.
At the end of the year the General Fund had an unassigned fund balance of $7,796,760, or 102.4% 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 page 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 and liabilities, with the
difference between the two reported as net position. Over time, increases or decreases in net position
may serve as a useful indicator of whether the financial position of the City is improving or
deteriorating.
The Statement of Activities presents information showing how the City's net position changed during
the most recent 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).
page 73
City of Mendota Heights
Management's Discussion and Analysis
6
OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)
Government-Wide Financial Statements (Continued)
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, storm water, and the Par
3 Golf Course.
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 three individual major governmental funds. Information is presented separately in
the Governmental Fund Balance Sheet and in the Governmental Fund Statement of Revenues,
Expenditures, and Changes in Fund Balances for the following major funds:
General Fund
Special Assessments Debt Service Fund
Street Capital Projects 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.
page 74
City of Mendota Heights
Management's Discussion and Analysis
7
OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)
Governmental Funds (Continued)
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 three enterprise funds and three 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, storm
water operations and Par 3 Golf Course.
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
Par 3 Golf Course
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
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 68 through 80 of this
report.
page 75
City of Mendota Heights
Management's Discussion and Analysis
8
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 exceeded liabilities by $41,736,543 at the close of the ,most
recent year.
The largest portion of the City's net position ($29,992,209 or 71.86%) reflects its investment in capital
assets (e.g. land, buildings, machinery and equipment, sewer main lines and storm sewers and
infrastructure) less any related debt used to acquire those assets that is still outstanding. The City uses
these capital assets to provide services to citizens; consequently, these assets are not available for future
spending. Although the City's investment in its capital assets is reported net of related debt, it should be
noted that the resources needed to repay this debt must be provided from other sources, since the capital
assets themselves cannot be used to liquidate these liabilities.
Net Position
2017 2016 2017 2016 2017 2016
Assets
Current and other assets 17,170,289$ 15,294,175$ 1,041,687$ 1,138,057$ 18,211,976$ 16,432,232$
Capital assets 28,592,649 28,109,672 16,683,864 16,460,879 45,276,513 44,570,551
Deferred outflows of resources related to pensions 3,440,167 5,486,424 39,850 83,876 3,480,017 5,570,300
Total assets and deferred outflows of resources 49,203,105$ 48,890,271$ 17,765,401$ 17,682,812$ 66,968,506$ 66,573,083$
Liabilities
Long-term liabilities outstanding 18,214,430$ 22,962,635$ 169,942$ 227,159$ 18,384,372$ 23,189,794$
Other liabilities 2,490,163 2,292,427 126,175 59,909 2,616,338 2,352,336
Deferred inflows of resources related to pensions 4,189,989 1,141,350 41,264 24,667 4,231,253$ 1,166,017
Total liabilities and deferred inflows of resources 24,894,582$ 26,396,412$ 337,381$ 311,735$ 25,231,963$ 26,708,147$
Net Position
Net investment in capital assets 14,791,345$ 14,686,755$ 16,683,864$ 16,460,879$ 29,992,209$ 29,428,634$
Restricted 5,979,074 5,161,294 - - 5,979,074 5,161,294
Unrestricted 3,538,104 2,645,810 744,156 910,198 5,765,260 5,275,008
Total net position 24,308,523$ 22,493,859$ 17,428,020$ 17,371,077$ 41,736,543$ 39,864,936$
Governmental Activities Business-Type Activities Totals
A portion of the of the City's net position ($5,979,074) represents resources that are subject to external
restrictions on how they may be used. The remaining balance of unrestricted net position ($5,765,260)
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.
page 76
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 $1,814,664. Key elements of this increase
are as follows:
City's Changes in Net Position
2017 2016 2017 2016 2017 2016
Revenues
Program revenues
Charges for services 2,306,672$ 1,600,057$ 2,389,817$ 2,284,034$ 4,696,489$ 3,884,091$
Operating grants and contributions 446,791 461,674 - 788 446,791 462,462
Capital grants and contributions 1,384,990 1,047,961 - 40,803 1,384,990 1,088,764
General revenues
Taxes 7,986,851 7,359,738 - - 7,986,851 7,359,738
Unrestricted investment earnings 107,304 79,935 14,460 12,245 121,764 92,180
Total revenues 12,232,608 10,549,365 2,404,277 2,337,870 14,636,885 12,887,235
Expenses
General government 2,215,942 1,912,034 - - 2,215,942 1,912,034
Public safety 4,113,449 4,750,109 - - 4,113,449 4,750,109
Public works 3,718,579 15,739,876 - - 3,718,579 15,739,876
Interest on long-term debt 369,377 383,541 - - 369,377 383,541
Sewer - - 1,930,921 1,683,068 1,930,921 1,683,068
Storm water - - 255,338 266,476 255,338 266,476
Par 3 Golf Course - - 161,672 154,901 161,672 154,901
Total Expenses 10,417,347 22,785,560 2,347,931 2,104,445 12,765,278 24,890,005
Increase (decrease) in net
position before transfers 1,815,261 (12,236,195) 56,346 233,425 1,871,607 (12,002,770)
Transfers (597) (338,197)597 338,197 - -
Increase (decrease) in net position 1,814,664 (12,574,392) 56,943 571,622 1,871,607 (12,002,770)
Net position - beginning 22,493,859 35,068,251 17,371,077 16,799,455 39,864,936 51,867,706
Net position - ending 24,308,523$ 22,493,859$ 17,428,020$ 17,371,077$ 41,736,543$ 39,864,936$
Governmental Activities Business-Type Activities Totals
page 77
City of Mendota Heights
Management's Discussion and Analysis
10
GOVERNMENT-WIDE FINANCIAL ANALYSIS (CONTINUED)
Below are specific graphs which provide comparisons of the governmental activities revenues and
expenditures:
Charges for Services
19%
Operating Grants and
Contributions
4%
Capital Grants and
Contributions
11%
Taxes
65%
Unrestricted Investment
Earnings
1%
General Government
21%
Public Safety
39%
Public Works
36%
Interest and Fees on Long-
Term Debt
4%
page 78
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 $56,943. Below are graphs showing the business-type
activities revenue and expense comparisons:
Charges for Services
99%
Unrestricted Investment
Earnings
1%
Sewer
82%
Storm Water
11%
Par 3 Golf Course
7%
page 79
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
$13,360,454. Nonspendable fund balances are already allocated for prepaid items ($118,504) and
inventory ($11,113). Approximately 27.96% ($3,735,299) 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 $477,473. This
represents fund balance that is to be used for the water system and civil defense needs. The City has
assigned fund balance of $1,788,462 (13.39%). This number represents the fund balances for the capital
projects that the City has ongoing and an amount allocated for insurance reserves. The remaining
category of fund balance is the unassigned fund balance. The City has $7,229,292 of unassigned fund
balance which is approximately 54.11% of the combined governmental fund balance at December 31,
2017.
The General Fund increased by $1,179,620 in 2017. Revenues were greater than anticipated and
expenditures were lower than budgeted amounts.
The Special Assessments Debt Service Fund increased by $113,045 in 2017. This fund accounted for
debt service payments for prior street improvement projects that were financed through the issuance of
bonds.
The Street Capital Project Fund increased by $13,599. This fund accounted for the costs and resources
associated with the Mendota Heights Road/Kensington street project.
The nonmajor governmental funds increased by $129,694. These funds received revenues from water
surcharges and park dedication fees. Nonmajor funds account for the Special Park, Civil Defense, 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 $502,016, storm water
$205,401 and $36,739 for the Par 3 golf course. The Sewer Utility Fund had a decrease in net position in
2017 of $16,297, the Storm Water Utility Fund had an increase in net position in 2017 of $86,678 and
the Par 3 Golf Course Fund had a decrease in net position of $13,438.
page 80
City of Mendota Heights
Management's Discussion and Analysis
13
BUDGETARY HIGHLIGHTS
General Fund
The General Fund budget was not amended during 2017.
During the year, revenues were more than budgetary estimates by $497,684, and expenditures were less
than budgetary estimates by $690,136.
The General Fund had higher than budgeted revenues for most categories. The City received higher than
anticipated revenues for licenses and fees due to increased building activity. The City also received
greater revenues than budgeted in the other revenue category. This was due to unbudgeted revenues
received for donations, insurance proceeds and cable franchise fees.
The General Fund expenditures were greater than anticipated in the general government function. This
was due in most part to increased staffing costs. The General Fund expenditures were lower than
budgeted in public safety and public works. The police and fire portions of the public safety function
had expenditures that were under budgeted amounts. One of the factors in this decrease was the staffing
costs were lower than budgeted. The police department was understaffed during 2017. The public works
function was also under budgeted amounts. In total, the expenditures for the General Fund were
$690,136 under budgeted amounts.
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, 2017, amounts to $45,276,513 (net of accumulated depreciation). This investment in
capital assets includes land, buildings, machinery and equipment, sewer main lines and storm sewers
and infrastructure.
Capital Assets
(Net of Depreciation)
2017 2016 2017 2016 2017 2016
Land 6,150,895$ 6,150,895$ 2,531,475$ 2,531,475$ 8,682,370$ 8,682,370$
Construction in progress 2,960,110 846,992 445,129 - 3,405,239 846,992
Buildings and structures 581,519 640,159 134,634 141,673 716,153 781,832
Machinery and equipment 2,044,546 2,284,481 56,373 68,388 2,100,919 2,352,869
Other improvements 617,444 608,285 - - 617,444 608,285
Sewer main lines and
Storm sewers - - 13,516,253 13,719,343 13,516,253 13,719,343
Infrastructure 16,238,135 17,578,860 - - 16,238,135 17,578,860
Total capital assets 28,592,649$ 28,109,672$ 16,683,864$ 16,460,879$ 45,276,513$ 44,570,551$
Governmental Activities Business-Type Activities Totals
Additional information on the City's capital assets can be found in Note 5.
page 81
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 $15,085,000, an increase
of $140,000 from 2016. $15,085,000 is for general obligation (G.O.) improvement debt which is
supported in part by special assessments.
Outstanding Debt
G.O. Improvement Bonds, G.O. Bonds and Revenue Bonds:
2017 2016
G.O. Improvement Bonds 13,555,000$ 13,145,000$
G.O. Bonds 1,530,000 1,800,000
Total 15,085,000$ 14,945,000$
Governmental Activities
The City maintains an 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 $39,709,534. Of the City's outstanding debt,
$1,530,000 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 2018, the taxable market value for the City was $1,985,476,693. This represents an increase of 5.9%
from 2017. The City is expecting an increase in taxable market value for 2019.
These factors were considered in preparing the City's budget for 2018.
Requests for Information
This financial report is designed to provide a general overview of the City's finances for all those with
an interest in the government's finances. Questions concerning any of the information provided in this
report or requests for additional financial information should be addressed to the Director of Finance,
1101 Victoria Curve, Mendota Heights, Minnesota 55118.
page 82
15
BASIC FINANCIAL STATEMENTS
page 83
City of Mendota Heights
Statement of Net Position
December 31, 2017
Governmental
Activities
Business-Type
Activities Total
Assets
Cash and investments
(including cash equivalents)13,977,375$ 328,331$ 14,305,706$
Property tax receivable 62,523 - 62,523
Accounts receivable 53,809 567,221 621,030
Interest receivable 15,206 632 15,838
Due from other governments 406,922 2,654 409,576
Special assessments receivable
Delinquent 6,695 5,154 11,849
Unearned 2,399,779 20,428 2,420,207
Inventories 11,113 - 11,113
Prepaid items 140,767 117,267 258,034
Land held for resale 96,100 - 96,100
Capital assets (net of accumulated depreciation)
Land and improvements 6,150,895 2,531,475 8,682,370
Construction in progress 2,960,110 445,129 3,405,239
Capital assets being depreciated
Infrastructure 16,238,135 13,516,253 29,754,388
Buildings and structures 581,519 134,634 716,153
Other improvements 617,444 - 617,444
Machinery and equipment 2,044,546 56,373 2,100,919
Total assets 45,762,938 17,725,551 63,488,489
Deferred Outflows of Resources
Deferred outflows of resources related to pensions 3,440,167 39,850 3,480,017
Total assets and deferred outflows of resources 49,203,105$ 17,765,401$ 66,968,506$
Liabilities
Accounts and contracts payable 477,245$ 58,847$ 536,092$
Due to other governments 200,840 44,279 245,119
Salaries and benefits payable 154,962 3,339 158,301
Interest payable 139,952 - 139,952
Developers' escrow deposits 8,011 - 8,011
Bond principal payable
Payable within one year 1,195,000 - 1,195,000
Payable after one year 14,089,304 - 14,089,304
Compensated absences payable
Payable within one year 314,153 19,710 333,863
Payable after one year 100,580 9,160 109,740
Other post employment benefits (OPEB) payable 307,448 14,860 322,308
Net pension liability 3,717,098 145,922 3,863,020
Total liabilities 20,704,593 296,117 21,000,710
Deferred Inflows of Resources
Deferred inflows of resources related to pensions 4,189,989 41,264 4,231,253
Net Position
Net investment in capital assets 14,791,345 16,683,864 29,992,209
Restricted for
Debt service 5,430,480 - 5,430,480
Park dedication 548,594 - 548,594
Unrestricted 3,538,104 744,156 5,765,260
Total net position 24,308,523 17,428,020 41,736,543
Total liabilities, deferred inflows of resources, and net position 49,203,105$ 17,765,401$ 66,968,506$
See notes to financial statements.16
page 84
Program RevenuesExpensesCharges for ServicesOperating Grants and ContributionsCapital Grants and ContributionsGovernmental ActivitiesBusiness-Type ActivitiesTotalGovernmental activitiesGeneral government2,215,942$ 203,107$ 47,633$ -$ (1,965,202)$ -$ (1,965,202)$ Public safety 4,113,449 742,527 262,546 - (3,108,376) - (3,108,376) Public works 3,718,579 1,361,038 136,612 1,384,990 (835,939) - (835,939) Interest on long-term debt369,377 - - - (369,377) - (369,377) Total governmental activities 10,417,347 2,306,672 446,791 1,384,990 (6,278,894) - (6,278,894) Business-type activitiesSewer1,930,921 1,785,175 - - - (145,746) (145,746) Storm water255,338 456,855 - - - 201,517 201,517 Par 3 Golf Course 161,672 147,787 - - - (13,885) (13,885) Total business-type activities 2,347,931 2,389,817 - - - 41,886 41,886 Total governmental and business-type activities12,765,278$ 4,696,489$ 446,791$ 1,384,990$ (6,278,894) 41,886 (6,237,008) General revenuesProperty taxes7,986,851 - 7,986,851 Unrestricted investment earnings107,304 14,460 121,764 Total general revenues8,094,155 14,460 8,108,615 Transfers(597) 597 - Change in net position 1,814,664 56,943 1,871,607 Net position - beginning 22,493,859 17,371,077 39,864,936 Net position - ending 24,308,523$ 17,428,020$ 41,736,543$ 17See notes to financial statements.Functions/ProgramsNet (Expense) Revenues and Changes in Net PositionCity of Mendota HeightsStatement of Activities Year Ended December 31, 2017page 85
City of Mendota Heights
Balance Sheet - Governmental Funds
December 31, 2017
General Fund
Special
Assessments
Debt Service
Street Capital
Projects
Assets
Cash and investments
(including cash equivalents)7,954,907$ 2,706,908$ -$
Taxes receivable - delinquent 51,948 6,672 -
Special assessments receivable
Delinquent 564 6,131 -
Deferred 4,328 2,368,341 17,291
Accounts receivable 20,146 - -
Interest receivable 7,070 3,249 1,172
Due from other funds - - -
Due from other governments 395,548 - 7,136
Inventories 11,113 - -
Prepaid items 118,504 - -
Land held for resale - - -
Total assets 8,564,128$ 5,091,301$ 25,599$
Liabilities
Accounts and contracts payable 232,732$ -$ 105,841$
Due to other funds - - 166,806
Due to other governments 25,582 - 5,164
Salaries and benefits payable 153,465 - -
Developers' escrow deposits 8,011 - -
Total liabilities 419,790 - 277,811
Deferred Inflows of Resources
Unavailable revenue - property taxes 51,948 6,672 -
Unavailable revenue - special assessments 4,892 2,374,472 17,291
Total deferred inflows of resources 56,840 2,381,144 17,291
Fund Balances
Nonspendable 129,617 - -
Restricted - 2,710,157 -
Committed - - -
Assigned 161,121 - -
Unassigned 7,796,760 - (269,503)
Total fund balances 8,087,498 2,710,157 (269,503)
Total liabilities, deferred inflows of
resources, and fund balances 8,564,128$ 5,091,301$ 25,599$
See notes to financial statements.18
page 86
Other
Governmental
Funds
Total
Governmental
Funds
2,738,361$ 13,400,176$
3,903 62,523
- 6,695
9,819 2,399,779
33,663 53,809
3,523 15,014
327,610 327,610
4,238 406,922
- 11,113
311 118,815
96,100 96,100
3,217,528$ 16,898,556$
40,700$ 379,273$
160,804 327,610
170,000 200,746
- 153,465
- 8,011
371,504 1,069,105
3,903 62,523
9,819 2,406,474
13,722 2,468,997
311 129,928
1,025,142 3,735,299
477,473 477,473
1,627,341 1,788,462
(297,965) 7,229,292
2,832,302 13,360,454
3,217,528$ 16,898,556$
19
page 87
20
(THIS PAGE LEFT BLANK INTENTIONALLY)
page 88
City of Mendota Heights
Reconciliation of the Balance Sheet to
the Statement of Net Position - Governmental Funds
December 31, 2017
Total fund balances - governmental funds 13,360,454$
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 51,667,785
Less accumulated depreciation (23,489,133)
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 (15,085,000)
Unamortized bond premium (199,304)
OPEB payable (302,681)
Net pension liability (3,654,252)
Deferred outflows of resources and deferred inflows of resources are
created as a result of various differences related to pensions that are
not recognized in the governmental funds.
Deferred inflows of resources related to pensions (4,172,217)
Deferred outflows of resources related to pensions 3,423,004
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 62,523
Special assessments 6,695
Revenues in the Statement of Activities that do not provide current
financial resources are not reported as revenues in the funds.
Deferred special assessments 2,399,779
Governmental funds do not report a liability for accrued interest until
due and payable.(139,952)
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. 430,822
24,308,523$
See notes to financial statements. 21
Amounts reported for governmental activities in the Statement of Net Position
Total net position - governmental activities
are different because:
page 89
City of Mendota Heights
Statement of Revenues, Expenditures, and
Changes in Fund Balances - Governmental Funds
Year Ended December 31, 2017
General Fund
Special
Assessments
Debt Service
Street Capital
Projects
Revenues
Property taxes 6,652,540$ 886,389$ -$
Special assessments 893 457,139 344,853
Licenses and permits 633,846 - -
Intergovernmental 424,268 - 292,054
Charges for services 621,308 - -
Fines and forfeitures 82,901 3,663 10
Miscellaneous
Investment income 49,891 22,923 8,272
Contributions and donations - - -
Other 279,978 - -
Total revenues 8,745,625 1,370,114 645,189
Expenditures
Current
General government 1,516,906 - -
Public safety 3,879,402 - -
Public works 2,184,378 - -
Debt service
Principal - 965,000 -
Interest and other charges - 350,954 -
Capital outlay
General government - - -
Public safety 5,295 - -
Public works 27,574 - 1,978,638
Total expenditures 7,613,555 1,315,954 1,978,638
Excess of revenues over (under) expenditures 1,132,070 54,160 (1,333,449)
Other Financing Sources (Uses)
Issuance of debt - 1,340,000 -
Bond premium - 22,898 -
Transfers in 47,550 - 1,389,087
Transfers out - (1,304,013) (42,039)
Total other financing sources (uses) 47,550 58,885 1,347,048
Net change in fund balances 1,179,620 113,045 13,599
Fund Balances
Beginning of year 7,221,257 2,597,112 (283,102)
Change in accounting principle (Note 16)(313,379) - -
Beginning of the year, as restated 6,907,878 2,597,112 (283,102)
End of year 8,087,498$ 2,710,157$ (269,503)$
See notes to financial statements.22
page 90
Other
Governmental
Funds
Total
Governmental
Funds
455,308$ 7,994,237$
- 802,885
- 633,846
- 716,322
156,618 777,926
4 86,578
24,866 105,952
1,000 1,000
570,873 850,851
1,208,669 11,969,597
264,040 1,780,946
3,441 3,882,843
4,935 2,189,313
235,000 1,200,000
38,310 389,264
118,794 118,794
- 5,295
192,535 2,198,747
857,055 11,765,202
351,614 204,395
- 1,340,000
- 22,898
687,039 2,123,676
(908,959) (2,255,011)
(221,920) 1,231,563
129,694 1,435,958
2,702,608 12,237,875
- (313,379)
2,702,608 11,924,496
2,832,302$ 13,360,454$
23
page 91
1,435,958$
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 2,175,501
Depreciation expense (1,744,786)
Loss on sale of disposed assets (17,439)
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.(232,586)
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.(8,760)
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.1,200,000
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.(22,898)
Premiums are recognized when debt is issued in the governmental funds but amortized over the life
of the debt in the Statement of Activities.20,511
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.(624)
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 (1,340,000)
Revenues in the Statement of Activities that do not provide current
financial resources are not reported as revenues in the funds.261,659
Activities of the internal service funds are presented separately
from the governmental funds. However, the functions, from a government-wide
perspective, are governmental.88,128
1,814,664$
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
City of Mendota Heights
are different because:
Reconciliation of the Statement of Revenues,
Expenditures, and Changes in Fund Balances to
the Statement of Activities - Governmental Funds
Year Ended December 31, 2017
page 92
City of Mendota Heights
Statement of Revenues, Expenditures, and
Changes in Fund Balance -
Budget and Actual - General Fund
Year Ended December 31, 2017
Budgeted
Amounts Variance with
Original Actual
and Final Amounts
Revenues
Property taxes 6,607,624$ 6,652,540$ 44,916$
Special assessments - 893 893
Licenses and permits 354,050 633,846 279,796
Intergovernmental 399,170 424,268 25,098
Charges for services 619,936 621,308 1,372
Fines and forfeitures 64,000 82,901 18,901
Miscellaneous revenues
Investment income 32,000 49,891 17,891
Other 171,161 279,978 108,817
Total revenues 8,247,941 8,745,625 497,684
Expenditures
Current
General government 1,481,036 1,516,906 35,870
Public safety 4,425,925 3,879,402 (546,523)
Public works 2,324,130 2,184,378 (139,752)
Capital outlay
General government 20,000 - (20,000)
Public safety 52,600 5,295 (47,305)
Public works - 27,574 27,574
Total expenditures 8,303,691 7,613,555 (690,136)
Excess of revenues over
(under) expenditures (55,750) 1,132,070 1,187,820
Other Financing Sources
Transfers in 55,750 47,550 (8,200)
Net change in fund balance -$ 1,179,620 1,179,620$
Fund Balance
Beginning of year 7,221,257
Change in accounting principle (Note 16)(313,379)
Beginning of year, as restated 6,907,878
End of year 8,087,498$
See notes to financial statements. 25
Final Budget -
Over (Under)
page 93
City of Mendota Heights
Statement of Net Position - Proprietary Funds
December 31, 2017
Sewer Utility
Storm Water
Utility
Par 3 Golf
Course Total
Internal
Service Funds
Assets
Current assets
Cash and investments 86,729$ 178,684$ 62,918$ 328,331$ 577,199$
Special assessment receivable
Delinquent 5,154 - - 5,154 -
Deferred 20,428 - - 20,428 -
Accounts receivable 452,434 114,732 55 567,221 -
Interest receivable 266 303 63 632 192
Due from other governments 2,654 - - 2,654 -
Prepaid expenses 116,097 - 1,170 117,267 21,952
Total current assets 683,762 293,719 64,206 1,041,687 599,343
Noncurrent assets
Capital assets
Land - - 2,531,475 2,531,475 25,000
Construction in progress 285,238 159,891 - 445,129 134,479
Buildings - - 208,490 208,490 1,782,525
Sewer main lines and storm sewers 14,561,574 4,286,392 - 18,847,966 -
Improvements other than buildings - - - - 27,581
Machinery and equipment 204,283 - 43,851 248,134 66,969
Total capital assets 15,051,095 4,446,283 2,783,816 22,281,194 2,036,554
Less accumulated depreciation (5,038,286) (445,237) (113,807) (5,597,330) (1,622,557)
Net capital assets 10,012,809 4,001,046 2,670,009 16,683,864 413,997
Total assets 10,696,571 4,294,765 2,734,215 17,725,551 1,013,340
Deferred Outflows of Resources
Deferred outflows of resources related to pensions 27,752 5,611 6,487 39,850 17,163
Total assets and deferred outflows of resources 10,724,323$ 4,300,376$ 2,740,702$ 17,765,401$ 1,030,503$
Liabilities and Net Position
Current liabilities
Accounts and contracts payable 23,129$ 34,802$ 916$ 58,847$ 97,972$
Salaries and benefits payable 2,759 457 123 3,339 1,497
Due to other governments 13,068 30,837 374 44,279 94
Noncurrent liabilities due within one year 19,710 - - 19,710 314,153
Total current liabilities 58,666 66,096 1,413 126,175 413,716
Noncurrent liabilities
Compensated absences 28,870 - - 28,870 414,733
OPEB payable 11,313 1,477 2,070 14,860 4,767
Net pension liability 101,622 20,546 23,754 145,922 62,846
Less amount due within one year (19,710) - - (19,710) (314,153)
Total noncurrent liabilities 122,095 22,023 25,824 169,942 168,193
Total liabilities 180,761 88,119 27,237 296,117 581,909
Deferred Inflows of Resources
Deferred inflows of resources related to pensions 28,737 5,810 6,717 41,264 17,772
Net Position
Investment in capital assets 10,012,809 4,001,046 2,670,009 16,683,864 413,997
Unrestricted 502,016 205,401 36,739 744,156 16,825
Total net position 10,514,825 4,206,447 2,706,748 17,428,020 430,822
Total liabilities, deferred inflows of resources,
and net position 10,724,323$ 4,300,376$ 2,740,702$ 17,765,401$ 1,030,503$
See notes to financial statements.26
page 94
Sewer Utility
Storm Water
Utility
Par 3 Golf
Course Total
Internal Service
Funds
Operating revenues
Charges for services 1,749,743$ 456,503$ 147,187$ 2,353,433$ 215,775$
Operating expenses
Wages and salaries 130,477 20,471 68,293 219,241 64,629
Employee benefits 56,737 7,245 15,701 79,683 29,370
Materials and supplies 22,928 9 2,843 25,780 -
Repairs and maintenance 127,101 115,943 11,366 254,410 -
Professional services 144,890 43,251 9,719 197,860 9,514
Insurance 6,855 - 3,703 10,558 5,876
Utilities 28,388 - 11,327 39,715 41,052
Depreciation 174,474 42,864 7,243 224,581 64,778
Travel 16 - - 16 -
Miscellaneous 16,678 25,555 31,477 73,710 44,518
Sewer charges - MCES 1,222,377 - - 1,222,377 -
Total operating expenses 1,930,921 255,338 161,672 2,347,931 259,737
Operating income (loss)(181,178) 201,165 (14,485) 5,502 (43,962)
Nonoperating revenues
(expenses)
Investment income 11,878 2,135 447 14,460 1,352
Fines and forfeitures 443 - - 443 -
Special assessments 21,714 - - 21,714 -
Other income 13,275 352 600 14,227 -
Total nonoperating revenues 47,310 2,487 1,047 50,844 1,352
Change in net position before
capital contributions and transfers (133,868) 203,652 (13,438) 56,346 (42,610)
Transfers in 128,721 - - 128,721 130,738
Transfers out (11,150) (116,974) - (128,124) -
Change in net position (16,297) 86,678 (13,438) 56,943 88,128
Net position
Beginning of year 10,531,122 4,119,769 2,720,186 17,371,077 (230,704)
Change in accounting principle (Note 16)- - - - 573,398
Beginning of year, as restated 10,531,122 4,119,769 2,720,186 17,371,077 342,694
End of year 10,514,825$ 4,206,447$ 2,706,748$ 17,428,020$ 430,822$
See notes to financial statements.27
Year Ended December 31, 2017
City of Mendota Heights
Statement of Revenues, Expenses, and Changes
in Fund Net Position - Proprietary Funds
page 95
Sewer Utility
Storm Water
Utility
Par 3 Golf
Course Total
Internal Service
Funds
Cash Flows - Operating Activities
Receipts from customers and users 1,823,201$ 341,771$ 147,188$ 2,312,160$ 215,775$
Payments to suppliers (1,566,502) (126,013) (67,906) (1,760,421) (23,005)
Payments to employees (185,932) (26,583) (83,451) (295,966) (98,755)
Miscellaneous revenue 60,181 352 600 61,133 -
Net cash flows - operating activities 130,948 189,527 (3,569) 316,906 94,015
Cash Flows - Noncapital
Financing Activities
Transfer from other funds 128,721 - - 128,721 130,738
Transfer to other funds (11,150) (116,974) - (128,124) -
Due to other funds (101,602) - - (101,602) -
Due from other funds - 101,602 - 101,602 273,556
Net cash flows - noncapital
financing activities 15,969 (15,372) - 597 404,294
Cash Flows - Capital and Related
Financing Activities
Acquisition of capital assets (287,675) (159,891) - (447,566) (134,479)
Cash Flows - Investing Activities
Interest and dividends received 11,709 2,169 461 14,339 1,353
Net change in cash and cash equivalents (129,049) 16,433 (3,108) (115,724) 365,183
Cash and Cash Equivalents
Beginning of year 215,778 162,251 66,026 444,055 212,016
End of year 86,729$ 178,684$ 62,918$ 328,331$ 577,199$
Reconciliation of Operating Income
(Loss) to Net Cash Flows -
Operating Activities
Operating income (loss)(181,178)$ 201,165$ (14,485)$ 5,502$ (43,962)$
Adjustments to reconcile operating income
(loss) to net cash flows - operating activities
Operating activities
Miscellaneous revenue 60,181 352 600 61,133 -
Depreciation expense 174,474 42,864 7,243 224,581 64,778
Accounts receivable 72,775 (114,732) 1 (41,956) -
Due from other governments 683 - - 683 -
Prepaid items (4,916) - 2,207 (2,709) (15,120)
Accounts and contracts payable 3,513 28,658 312 32,483 93,074
Contracts payable - - - - -
Due to other governmental units 4,134 30,087 10 34,231 1
Salaries payable (124) 12 (217) (329) 130
OPEB payable 1,277 (310) (247) 720 253
Pension related items 1,480 1,431 1,007 3,918 3,972
Compensated absences payable (1,351) - - (1,351) (9,111)
Total adjustments 312,126 (11,638) 10,916 311,404 137,977
Net cash flows - operating activities 130,948$ 189,527$ (3,569)$ 316,906$ 94,015$
See notes to financial statements.28
City of Mendota Heights
Statement of Cash Flows - Proprietary Funds
Year Ended December 31, 2017
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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.
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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.
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.
Par 3 Golf Course Fund – This fund is used to account for the City's operation of the Par 3 Golf
Course.
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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.
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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.
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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 Statement of Net Position for deferred outflows of resources related to pensions 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
two sources: property taxes and special assessments. These amounts are deferred and recognized as
an inflow of resources in the period that the amounts become available. The City presents deferred
inflows of resources on the Statement of Net Position for deferred inflows of resources related to
pensions for various estimate differences that will be amortized and recognized over future years.
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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.
page 102
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.
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36
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)
11. Net Position
Net position represents the difference between assets, deferred outflows of resources, liabilities and
deferred inflows of resources in the government-wide financial statements. Net investment in capital
assets consists of capital assets, net of accumulated depreciation reduced by the outstanding balance
of any long-term debt used to build or acquire the capital assets. A reclassification of $1,483,000 was
made between this net position class and unrestricted net position in the total column on the
Statement of Net Position to recognize the portion of debt attributable to capital assets donated from
governmental activities to business-type activities. Net position is reported as restricted in the
government-wide financial statement when there are limitations on their use through external
restrictions imposed by creditors, grantors, or laws or regulations of other governments.
12. 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.
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.
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City of Mendota Heights
Notes to Financial Statements
NOTE 2 – STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
A. Deficit Fund Balances
The following funds had deficit fund balances or net position at December 31, 2017:
Street Capital Project 269,503$
Other Nonmajor Special Revenue Fund
Street Lighting 11,483
Other Nonmajor Capital Projects Fund
Special Assessment Capital Project 279,124
TIF District No. 2 7,358
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.
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, 2017, the City's bank balance was not exposed to
custodial credit risk because it was insured through the Federal Deposit Insurance Corporation (FDIC).
As of December 31, 2017, the City had deposits as follows:
Checking 184,237$
Savings 641
Certificates of deposit 14,020
Total deposits 198,898$
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City of Mendota Heights
Notes to Financial Statements
NOTE 3 – DEPOSITS AND INVESTMENTS (CONTINUED)
B. Investments
As of December 31, 2017, the City had the following investments:
Fair
Credit Value Less Than 1 - 5 1 - 6
Investment Type Ratings 12/31/17 1 Year Years Years
Negotiable Certificates of Deposits NR 4,649,465$ 1,180,721$ 3,226,020$ 242,724$
Mutual Funds NR 7,580,875 7,580,875 - -
Brokered Cash and Money Markets NR 883,918 883,918 - -
US Agency Securities Aaa 991,650 - 991,650 -
Total 14,105,908$ 9,645,514$ 4,217,670$ 242,724$
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.
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, 2017:
• $14,105,908 of investments are valued using a matrix pricing model (Level 2 inputs)
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City of Mendota Heights
Notes to Financial Statements
NOTE 3 – DEPOSITS AND INVESTMENTS (CONTINUED)
C. Deposits and Investments
The following is a summary of total deposits and investments:
Deposits (Note 3. A.)198,898$
Investments (Note 3.B.)14,105,908
Petty cash 900
Total cash and investments 14,305,706$
Deposits and investments are presented in the December 31, 2017, basic financial statements as follows:
Statement of Net Position
Cash and investments 14,305,706$
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, 2017:
Fund Due to Due from Reason
Special assessment capital project 128,217$ -$ Cash deficit
Street capital projects 166,806 - Cash deficit
Street lighting 25,229 - Cash deficit
TIF District No. 2 7,358 - Cash deficit
Infrastructure reserve - 25,229 Cash deficit
Pre-1998 Non-Increment - 7,358 Cash deficit
Water tower capital project - 295,023 Cash deficit
Total 327,610$ 327,610$
The balances above will be repaid as financing becomes available.
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City of Mendota Heights
Notes to Financial Statements
NOTE 4 – INTERFUND ACTIVITIES (CONTINUED)
B. Interfund Transfers
The composition of interfund transfers as of December 31, 2017, was as follows:
Transfers In
Street Other Internal
Capital Governmental Sewer Service
General Projects Funds Utility Fund Total
Transfers out
Special assessments
debt service 22,250$ 1,281,763$ -$ -$ -$ 1,304,013$
Street capital projects - - 42,039 - - 42,039
Other governmental
funds 4,500 - 645,000 128,721 130,738 908,959
Sewer utility 11,150 - - - - 11,150
Storm Water Utility 9,650 107,324 - - - 116,974
Total 47,550$ 1,389,087$ 687,039$ 128,721$ 130,738$ 2,383,135$
The purpose of the above transfers is to distribute bond proceeds and to provide funding for capital
improvement projects, capital outlay, and operating purposes.
NOTE 5 – CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2017, was as follows:
Beginning Ending
Balance Increases Decreases Balance
Governmental activities
Capital assets not being
depreciated
Land and improvements 6,150,895$ -$ -$ 6,150,895$
Construction in progress 846,992 2,113,118 - 2,960,110
Total capital assets
not being depreciated 6,997,887 2,113,118 - 9,111,005
Capital assets being
depreciated
Buildings and structures 4,030,217 42,993 - 4,073,210
Machinery and equipment 5,476,479 85,145 54,644 5,506,980
Other improvements 2,214,449 68,724 - 2,283,173
Infrastructure 32,729,971 - - 32,729,971
Total capital assets
being depreciated 44,451,116 196,862 54,644 44,593,334
Less accumulated depreciation for
Buildings and structures 3,390,058 101,633 - 3,491,691
Machinery and equipment 3,191,998 307,641 37,205 3,462,434
Other improvements 1,606,164 59,565 - 1,665,729
Infrastructure 15,151,111 1,340,725 - 16,491,836
Total accumulated
depreciation 23,339,331 1,809,564 37,205 25,111,690
Total capital assets being
depreciated, net 21,111,785 (1,612,702) 17,439 19,481,644
Governmental activities capital
assets, net 28,109,672$ 500,416$ 17,439$ 28,592,649$
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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
Land 2,531,475$ -$ -$ 2,531,475$
Construction in progress - 445,129 - 445,129
Total capital assets not
being depreciated 2,531,475 445,129 - 2,976,604
Capital assets being
depreciated
Buildings and structures 208,490 - - 208,490
Machinery and equipment 245,697 2,437 - 248,134
Sewer main lines and storm sewers 18,847,966 - - 18,847,966
Total capital assets
being depreciated 19,302,153 2,437 - 19,304,590
Less accumulated depreciation for
Buildings and structures 66,817 7,037 - 73,854
Machinery and equipment 177,309 14,453 - 191,762
Sewer main lines and storm sewers 5,128,623 203,091 - 5,331,714
Total accumulated
depreciation 5,372,749 224,581 - 5,597,330
Total capital assets being
depreciated, net 13,929,404 (222,144) - 13,707,260
Business-type activities capital
assets, net 16,460,879$ 222,985$ -$ 16,683,864$
Depreciation expense was charged to functions/programs of the City as follows:
Governmental activities
General government 123,991$
Public safety 107,617
Public works 1,513,178
Internal service funds 64,778
Total depreciation expense - governmental activities 1,809,564$
Business-type activities
Sewer utility 174,474$
Storm water utility 42,864
Par 3 golf course 7,243
Total depreciation expense - business-type activities 224,581$
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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 2010 0.86%-3.75%1,055,000$ 02/01/30 755,000$ 60,000$
G.O. Improvement Bonds of 2011 0.40%-3.40%2,970,000 02/01/31 1,980,000 225,000
G.O. Improvement Bonds of 2012 2.00%-2.70%2,630,000 02/01/32 2,345,000 90,000
G.O. Improvement Bonds of 2013 2.00%-4.00%1,685,000 02/01/34 1,450,000 120,000
G.O. Improvement Bonds, Series 2014A 0.85%-3.40%1,030,000 02/01/35 945,000 85,000
G.O. Refunding Bond, Series 2014B 1.50%-3.00%885,000 02/01/27 710,000 90,000
G.O Improvement Bonds 2015A .90%-3.00%1,200,000 02/01/25 1,180,000 70,000
G.O. Refunding Bond, Series 2015C 2.00%-2.50%1,995,000 02/01/28 1,830,000 170,000
G.O. Reconstruction Bonds, Series 2016A 1.00%-2.50%1,020,000 02/01/37 1,020,000 -
G.O. Improvement Bonds of 2017A 2.00%-2.50%1,340,000 02/01/30 1,340,000 -
Total improvement bonds 13,555,000 910,000
G.O. Bonds, including refunding bonds
G.O. Bonds of 2009 1.50%-3.50%745,000 02/01/20 245,000 80,000
G.O. Refunding Bonds 2015B 2.00%-3.00%1,475,000 02/01/23 1,285,000 205,000
Total G.O. Bonds 1,530,000 285,000
Net Premium on Bonds 199,304 -
Compensated absences payable 414,733 314,153
Total governmental activities 15,699,037 1,509,153
Business-type activities
Compensated absences payable 28,870 19,710
Total all long-term liabilities 15,727,907$ 1,528,863$
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.
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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, 2017, was as follows:
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Governmental activities
Bonds payable
G.O. Improvements Bonds 13,145,000$ 1,340,000$ 930,000$ 13,555,000$ 910,000$
G.O. Bonds 1,800,000 - 270,000 1,530,000 285,000
Compensated absences payable 459,758 336,678 381,703 414,733 314,153
Total governmental
activities 15,404,758 1,676,678 1,581,703 15,499,733 1,509,153
Business-type activities
Compensated absences payable 30,221 16,357 17,708 28,870 19,710
Total government 15,434,979$ 1,693,035$ 1,599,411$ 15,528,603$ 1,528,863$
D. Long-Term Debt
The annual requirements to amortize all bonded debt outstanding follows:
Year Ending
December 31,Principal Interest Total Principal Interest Total
2018 910,000$ 300,008$ 1,210,008$ 285,000$ 35,205$ 320,205$
2019 960,000 291,108 1,251,108 285,000 28,425 313,425
2020 1,030,000 273,005 1,303,005 295,000 21,388 316,388
2021 1,105,000 251,744 1,356,744 215,000 15,650 230,650
2022 1,160,000 227,589 1,387,589 220,000 10,200 230,200
2023-2027 5,090,000 767,783 5,857,783 230,000 3,450 233,450
2028-2032 2,775,000 252,538 3,027,538 - - -
2033-2037 525,000 29,361 554,361 - - -
Total 13,555,000$ 2,393,136$ 15,948,136$ 1,530,000$ 114,318$ 1,644,318$
Governmental Activities
G.O. BondsImprovement Bonds
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City of Mendota Heights
Notes to Financial Statements
NOTE 7 – OPERATING LEASE
The City leases eight 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, 2017:
Year Ending
December 31,
2018 60,215$
2019 46,055
2020 28,240
Total 134,510$
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, 2017, was
$19,076,771.
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City of Mendota Heights
Notes to Financial Statements
NOTE 9 – FUND BALANCE DETAIL
Fund equity balances are classified below to reflect the limitations and restrictions of the respective
Funds.
Special Street Other
General Assessment Capital Governmental
Fund Debt Service Projects Funds Total
Nonspendable
Inventories 11,113$ -$ -$ -$ 11,113$
Prepaid items 118,504 - - 311 118,815
Restricted
Park dedication fees - - - 548,594 548,594
Debt service - 2,710,157 - 476,548 3,186,705
Committed
Water system maintenance - - - 375,444 375,444
Emergency preparedness
and civil defense - - - 102,029 102,029
Assigned
Capital projects - - - 1,627,341 1,627,341
Insurance reserve 161,121 - - - 161,121
Unassigned 7,796,760 - (269,503) (297,965) 7,229,292
Total 8,087,498$ 2,710,157$ (269,503)$ 2,832,302$ 13,360,454$
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.
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City of Mendota Heights
Notes to Financial Statements
NOTE 11 – PENSION PLANS
Public Employees' Retirement Association
The City participates in various pension plans. Total pension expense for the year ended December 31,
2017, was $644,038. The components of pension expense are noted in the following plan summaries.
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 (General Employees Plan (accounted for in the General Employees
Fund))
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 (Police and Fire Plan (accounted for in the Police and Fire Fund))
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.
Benefit increases are provided to benefit recipients each January. Increases are related to the funding
ratio of the plan. Members in plans that are at least 90% funded for two consecutive years are given
2.5% increases. Members in plans that have not exceeded 90% funded, or have fallen below 80%, are
given 1% increases.
The benefit provisions stated in the following paragraphs of this section are current provisions and apply
to active plan participants. 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.
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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
General Employees Plan benefits are based on a member's highest average salary for any five successive
years of allowable service, age and years of credit at termination of service. Two methods are used to
compute benefits for PERA's Coordinated Plan members. The retiring member receives the higher of a
step-rate benefit accrual formula (Method 1) or a level accrual formula (Method 2). Under Method 1, the
annuity accrual rate for a Coordinated Plan member is 1.2% of average salary for each of the first ten
years and 1.7% for each remaining year. Under Method 2, the annuity accrual rate is 1.7% for
Coordinated Plan members for each year 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.
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 ten 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
ten years up to 100% after twenty years of credited service. The annuity accrual rate is 3% of average
salary for each year of service. For Police and Fire Plan who were first hired prior to July 1, 1989, a full
annuity is available when age plus years of service equal at least 90.
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 2017. The City was required to contribute 7.50% for Coordinated Plan members in calendar year
2017. The City's contributions to the General Employees Fund for the year ended December 31, 2017,
were $137,806. The City's contributions were equal to the required contributions as set by state statute.
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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
Plan members were required to contribute 10.8% of their annual covered salary in calendar year 2017.
The City was required to contribute 16.2% of pay for members in calendar year 2017. The City's
contributions to the Police and Fire Fund for the year ended December 31, 2017, were $251,584. 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, 2017, the City reported a liability of $1,851,341 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 $6 million to the fund in 2017. 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 $23,303. The net pension liability was measured as of June 30, 2017,
and the total pension liability used to calculate the net pension liability was determined by an actuarial
valuation as of that date. The City's proportion of the net pension liability was based on the City's
contributions received by PERA during the measurement period for employer payroll paid dates from
July 1, 2016, through June 30, 2017, relative to the total employer contributions received from all of
PERA's participating employers. At June 30, 2017, the City's proportion share was 0.0290%, which was
a decrease of 0.0025% from its proportion measured as of June 30, 2016.
For the year ended December 31, 2017, the City recognized pension expense of $197,495 for its
proportionate share of General Employees Plan's pension expense. Included in the amount, the City
recognized $673 as pension expense (and grant revenue) for its proportionate share of the State of
Minnesota's contribution of $6 million to the General Employees Fund.
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City of Mendota Heights
Notes to Financial Statements
NOTE 11 –PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
D. Pension Costs (Continued)
General Employees Fund Pension Costs (Continued)
At December 31, 2017, the City reported its proportionate share of the General Employees Plan's
deferred outflows of resources and deferred inflows of resources, related to pensions from the following
sources:
Differences between expected and actual economic experience 61,014$ 129,979$
Changes in actuarial assumptions 333,860 185,598
Difference between projected and actual investment earnings 41,803 -
Changes in proportion - 207,959
Contributions paid to PERA subsequent
to the measurement date 68,903 -
Total 505,580$ 523,536$
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
$68,903 reported as deferred outflows of resources related to pensions resulting from City contributions
subsequent to the measurement date will be recognized as a reduction of the net pension liability in the
year ended December 31, 2018. Other amounts reported as deferred outflows and deferred inflows of
resources related to pensions will be recognized in pension expense as follows:
Year Ending Pension Expense
December 31,Amount
2018 2,289$
2019 67,914
2020 (78,476)
2021 (78,586)
Total (86,859)$
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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, 2017, the City reported a liability of $2,011,679 for its proportionate share of the
Police and Fire Fund's net pension liability. The net pension liability was measured as of June 30, 2017,
and the total pension liability used to calculate the net pension liability was determined by an actuarial
valuation as of that date. The City's proportion of the net pension liability was based on the City's
contributions received by PERA during the measurement period for employer payroll paid dates from
July 1, 2016, through June 30, 2017, relative to the total employer contributions received from all of
PERA's participating employers. At June 30, 2017, the City's proportion was 0.1500%, which was a
decrease of 0.005% from its proportion measured as of June 30, 2016. The City also recognized $13,500
for the year ended December 31, 2017 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. Legislation passed in 2013 required the State of Minnesota to begin contributing $9 million to the
Police and Fire Fund each year, starting in fiscal year 2014.
For the year ended December 31, 2017, the City recognized pension expense of $446,543 for its
proportionate share of the Police and Fire Fund pension expense.
At December 31, 2017, the City reported its proportionate share of the Police and Fire Plan's deferred
outflows of resources and deferred inflows of resources related to pensions from the sources below and
on the following page.
Differences between expected and actual economic experience 46,617$ 557,246$
Changes in actuarial assumptions 2,738,696 2,875,253
Difference between projected and actual investment earnings 48,184 -
Changes in proportion 15,148 275,218
Contributions paid to PERA subsequent
to the measurement date 125,792 -
Total 2,974,437$ 3,707,717$
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
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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)
$125,792 reported as deferred outflows of resources related to pensions resulting from City contributions
subsequent to the measurement date will be recognized as a reduction of the net pension liability in the
year ended December 31, 2018. Other amounts reported as deferred outflows and inflows of resources
related to pensions will be recognized in pension expense as follows:
Year Ending Pension Expense
December 31,Amount
2018 (5,264)$
2019 (5,263)
2020 (80,989)
2021 (168,386)
2022 (599,170)
Total (859,072)$
E. Actuarial Assumptions
The total pension liability in the June 30, 2017, actuarial valuation was determined using the entry age
normal actuarial cost method and the following actuarial assumptions:
Inflation 2.50 % Per year
Active member payroll growth 3.25 Per year
Investment rate of return 7.50
Salary increases were based on a service-related table. Mortality rates for active members, retirees,
survivors, and disabilitants were based on RP-2014 tables for all plans for males or females, as
appropriate, with slight adjustments to fit PERA's experience. Cost of living benefit increases for retirees
are assumed to be 1% per year for the General Employees plan through 2044 and the Police and Fire
Plan through 2064 and then 2.5% thereafter for both plans.
Actuarial assumptions used in the June 30, 2017, 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 2015. The most recent five-year experience study for Police and Fire Plan was completed
in 2016.
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City of Mendota Heights
Notes to Financial Statements
NOTE 11 –PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
E. Actuarial Assumptions (Continued)
The following changes in actuarial assumptions occurred in 2017:
General Employees Fund
• The Combined Service Annuity (CSA) loads were changed from 0.8% for active members and
60% for vested and non-vested deferred members. The revised CSA loads are now 0.0% for
active member liability, 15% for vested deferred member liability, and 3% for non-vested
deferred member liability.
• The assumed post-retirement benefit increase rate was changed from 1% per year for all years to
1% per year through 2044 and 2.5% per year thereafter.
Police and Fire Fund
• 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.
• Assumed termination rates were decreased to 3.0% 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.
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City of Mendota Heights
Notes to Financial Statements
NOTE 11 –PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
E. Actuarial Assumptions (Continued)
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 39 %5.10 %
International stocks 19 5.30
Bonds 20 0.75
Alternative assets 20 5.90
Cash 2 0.00
Total 100 %
Asset Class
Long-Term
Expected Real
Rate of ReturnTarget Allocation
F. Discount Rate
The discount rate used to measure the total pension liability in 2017 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 those assumptions, the fiduciary net position of
the General Employees Fund and the Police and Fire Fund was projected to be available to make all
projected future benefit payments of current Plan members. Therefore, the long-term expected rate of
return on pension plan investments was applied to all periods of projected benefit payments to determine
the total pension liability.
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City of Mendota Heights
Notes to Financial Statements
NOTE 11 –PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
G. Pension Liability Sensitivity
The following table presents the City's proportionate share of the net pension liability for all plans it
participates in, calculated using the discount rate disclosed in the preceding paragraph, as well as what
the City's proportionate share of the net pension liability would be if it were calculated using a discount
rate 1 percentage point lower or 1 percentage point higher than the current discount rate:
1% Decrease in 1% Increase in
City's proportionate share of
the General Employees Fund
net pension liability 2,871,567$ 1,851,341$ 1,016,100$
1% Decrease in 1% Increase in
City's proportionate share of
the Police and Fire Fund
net pension liability 3,800,502$ 2,011,679$ 534,906$
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.
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.
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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 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 $3,500 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 2017, the total contribution
was $112,595. Required and actual employer contributions to the plan during 2017 were $112,595. In
addition, the City passes through state aid allocated to the plan in accordance with state statutes. For 2017,
the state aid was $97,810. 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 health care plan to eligible retirees and their
spouses. The plan offers medical coverage and dental coverage. Medical coverage is administered by
BlueCross BlueShield and dental coverage is provided by Delta Dental. It is the City's policy to
periodically review its medical coverage and to obtain requests for proposals in order to provide the most
favorable benefits and premiums for City employees and retirees.
B. Funding Policy
Retirees and their spouses contribute to the health care plan at the same rate as City employees. This
results in the retirees receiving an implicit rate subsidy. Contribution requirements are established by the
City, based on the contract terms with BlueCross BlueShield and Delta Dental. The required
contributions are based on projected pay-as-you-go financing requirements. For the year 2017, the City
contributed $94,257 to the plan. As of December 31, 2017, there were five retirees receiving health and
dental benefits from the City.
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56
City of Mendota Heights
Notes to Financial Statements
NOTE 12 – POST EMPLOYMENT HEALTH CARE PLAN (CONTINUED)
C. Annual Other Post-Employment Benefits Cost and Net Other Post Employment
Benefits Obligation
The City's annual other post-employment benefits (OPEB) cost (expense) is calculated based on the
annual required contribution (ARC) of the City, an amount actuarially determined in accordance with the
parameters of GASB Statement No. 45. The ARC represents a level of funding that, if paid on an
ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities
(or funding excess) over a period not to exceed 30 years. The following table shows the components of
the City's annual OPEB cost of the year, the amount actually contributed to the plan and changes in the
City's net OPEB obligation to the plan.
ARC 109,212$
Interest on net OPEB obligation 12,503
Adjustment to ARC (17,725)
Annual OPEB Cost (expense)103,990
Contributions made (94,257)
Increase in net OPEB obligation 9,733
Net OPEB obligation - beginning of year 312,575
Net OPEB obligation - end of year 322,308$
The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and the net
OPEB obligation for 2017 was as follows:
Year Ended
Annual OPEB
Cost
Employer
Contribution
Percentage of
Annual OPEB Cost
Contributed
Net OPEB
Obligation
12/31/15 102,203$ 64,135$ 63%284,676$
12/31/16 104,456 76,557 73%312,575
12/31/17 103,990 94,257 91%322,308
D. Funded Status and Funding Progress
As of January 1, 2015, the most recent actuarial valuation date, the City had no assets deposited to fund
the plan. The actuarial accrued liability for benefits was $1,071,748 and the actuarial value of assets was
$0, resulting in an unfunded actuarial accrued liability (UAAL) of $1,071,748. The covered payroll
(annual payroll of active employees covered by the plan) was $2,958,302, and the ratio of the UAAL to
the covered payroll was 36.2%
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57
City of Mendota Heights
Notes to Financial Statements
NOTE 12 – POST EMPLOYMENT HEALTH CARE PLAN (CONTINUED)
D. Funded Status and Funding Progress (Continued)
Actuarial valuations involve estimates of the value of reported amounts and assumptions about the
probability of occurrence of events far into the future. Examples include assumptions about future
employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status
of the plan and the annual required contributions of the employer are subject to continual revision as
actual results are compared with past expectations and new estimates are made about the future.
The Schedule of Funding Progress – Other Post Employment Benefits, presented as required
supplementary information following the notes to financial statements, presents multi-year trend
information about whether the actuarial value of plan assets is increasing or decreasing over time relative
to the actuarial accrued liabilities for benefits.
E. Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as
understood by the employer and the plan members) and include the types of benefits provided at the time
of each valuation and the historical pattern of sharing of benefit costs between the employer and plan
members to that point. The actuarial methods and assumptions used include techniques that are designed
to reduce the effects of short-term volatility in actuarial accrued liabilities, consistent with the long-term
perspective of the calculations.
In the January 1, 2015, the actuarial valuation date, the projected unit credit actuarial cost method was
used. The actuarial assumptions included a 4.0% discount rate, which is based on the investment yield
expected to finance benefits depending on whether the plan is funded in a separate trust (about 7% to
8.5%, long-term, similar to a pension plan) or unfunded (3.5% to 5%, shorter term, based on City's
general assets). The City currently does not plan to prefund for this benefit. At the actuarial valuation
date, the annual healthcare cost trend rate was calculated to be 7.25% initially, reduced incrementally to
an ultimate rate of 5.0% after nine years. Both rates included a 2.5% inflation assumption. The UAAL is
being amortized as a level dollar amount on a closed basis. The remaining amortization period at
January 1, 2017, was 26 years.
NOTE 13 – TOWN CENTER – THE VILLAGE AT MENDOTA HEIGHTS
The City temporarily has title to certain real properties in Town Center. The City currently has title to
land valued by Dakota County at $544,800. Once the project is complete all parcels, except the out lots
which are included in the City's capital assets, will be developed and owned privately, and thus the land
is not reported in the City's financial statements.
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58
City of Mendota Heights
Notes to Financial Statements
NOTE 14 – 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 $207,264 for 2017. 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 2017, the City paid $102,936 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 15 – 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, 2017, financial statements and determined they
do not have a material effect on financial position or changes in financial position.
NOTE 16 – CHANGE IN ACCOUNTING PRINCIPLE
During 2017, the City merged its Engineering internal service fund with the General Fund. This merger
resulted in a decrease in the General Fund's beginning fund balance of $313,379 and an increase in the
Engineering internal service fund of $573,398.
NOTE 17 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.
During the year ended December 31, 2017, the City generated $0 in tax increment revenue and made $0
in payments to developers.
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59
City of Mendota Heights
Notes to Financial Statements
NOTE 18 – COMMITMENTS
At December 31, 2017, the City had the following commitments relating to contracts:
Contract Expended Commitment
Contractor Amount to Date Remaining
Dering Pierson 238,298$ 74,823$ 163,475$
Valley Paving 1,823,172 1,784,113 39,059
Northdale Construction 108,986 105,445 3,541
NOTE 19 – NEW STANDARDS ISSUED BUT NOT YET IMPLEMENTED
GASB has issued GASB statement 75 relating to accounting and financial reporting for postemployment
benefits other than pensions. The new statement requires governments in all types of OPEB plans to
present more extensive note disclosures and required supplementary information (RSI) about OPEB
liabilities. This statement will be effective for the year ending December 31, 2018.
GASB Statement No. 83, Certain Asset Retirement Obligations establishes criteria for determining the
timing and pattern of recognition of a liability and a corresponding deferred outflow of resources for
Asset Retirement Obligations (AROs). This statement requires that recognition occur when the liability
is both incurred and reasonably estimable. The determination of when the liability is incurred should be
based on the occurrence of external laws, regulations, contracts, or court judgments, together with the
occurrence of an internal event that obligates a government to perform asset retirement activities. Laws
and regulations may require governments to take specific actions to retire certain tangible capital assets
at the end of the useful lives of those capital assets, such as decommissioning nuclear reactors and
dismantling and removing sewage treatment plants. Other obligations to retire tangible capital assets
may arise from contracts or court judgments. Internal obligating events include the occurrence of
contamination, placing into operation a tangible capital asset that is required to be retired, abandoning a
tangible capital asset before it is placed into operation, or acquiring a tangible capital asset that has an
existing ARO. This statement will be effective for the year ending December 31, 2019.
GASB Statement No. 85, Omnibus 2017 addresses practice issues that have been identified during
implementation and application of certain GASB statements, including issues related to blending
component units, goodwill, fair value measurement and application, and post employment benefits. This
statement will be effective for the year ending December 31, 2018.
GASB Statement No. 86, Certain Debt Extinguishment Issues improves consistency in accounting and
financial reporting for in-substance defeasance of debt by providing guidance for transactions in which
cash and other monetary assets acquired with only existing resources are placed in an irrevocable trust
for the sole purpose of extinguishing debt. This statement also improves accounting and financial
reporting for prepaid insurance on debt that is extinguished and notes to the financial statements for debt
that is defeased in substance. This statement will be effective for the year ending December 31, 2018.
page 127
60
City of Mendota Heights
Notes to Financial Statements
NOTE 19 – 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, 2020.
page 128
61
REQUIRED SUPPLEMENTARY INFORMATION
page 129
City of Mendota Heights
Schedule of Funding Progress - Other Post Employment Benefits
December 31, 2017
Actuarial UAAL as a
Actuarial Accrued Liability Unfunded Percentage of
Actuarial Value of (AAL) - Projected AAL Funded Covered Covered
Valuation Assets Unit Credit (UAAL) Ratio Payroll Payroll
Date (a)(b)(b-a) (a/b) (c )((b-a)/c)
01/01/09 -$ 357,126$ 357,126$ 0.0% 2,905,073$ 12.3%
01/01/12 - 506,367 506,367 0.0% 3,176,568 15.9%
01/01/15 - 1,071,748 1,071,748 0.0% 2,958,302 36.2%
62
page 130
City's Covered
Payroll
2015 0.0322% 1,668,771$ -$ 1,668,771$ 1,859,307$ 89.8% 78.2%
2016 0.0315% 2,557,644 33,392 2,591,036 1,954,600 130.9% 68.9%
2017 0.0290% 1,851,341 23,303 1,874,644 1,870,160 99.0% 75.9%
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)
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$ 1,359,920$ 127.8%86.6%
2016 0.1550% 6,220,420 1,496,272 415.7%63.9%
2017 0.1500% 2,011,679 1,543,389 130.3%85.4%
Note: Schedule is intended to show ten year trend. Additional years will be reported as they become available.
63
Plan Fiduciary
Net Position as a
Percentage of the
Total Pension
Liability
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
City of Mendota Heights
Schedule of City's Proportionate Share
of Net Pension Liability
Last Ten Years
Schedule of City's Proportionate Share
of Net Pension Liability
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
page 131
2015 149,420$ 149,420$ -$ 1,992,267$ 7.5%
2016 139,806 139,806 - 1,864,080 7.5%
2017 137,806 137,806 - 1,837,413 7.5%
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$ 16.2%
2016 245,917 245,917 - 1,518,006 16.2%
2017 251,584 251,584 - 1,552,988 16.2%
Note: Schedule is intended to show ten year trend. Additional years will be reported as they become available.
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
page 132
City of Mendota Heights
Notes to Required Supplementary Information
65
GENERAL EMPLOYEES FUND
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.
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.
2015 Changes
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.
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.
page 133
City of Mendota Heights
Notes to Required Supplementary Information
66
POLICE AND FIRE FUND
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.
• 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.
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 assumed future salary increases, payroll growth, and inflation were decreased by 0.25% to
3.25% for payroll growth and 2.50% for inflation.
2015 Changes
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%.
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.
page 134
67
SUPPLEMENTARY INFORMATION
page 135
Water Revenue Special Park Civil Defense Street Lighting
Assets
Cash and investments 372,232$ 586,019$ 102,192$ -$
Taxes receivable - delinquent - - 209 445
Special assessments receivable
Deferred - - - -
Accounts receivable - - - 15,339
Interest receivable 348 695 100 -
Due from other funds - - - -
Due from other governments 2,864 - - -
Prepaid items - - 311 -
Land held for resale - - - -
Total assets 375,444$ 586,714$ 102,812$ 15,784$
Liabilities
Accounts and contracts payable -$ 38,120$ 263$ 1,593$
Due to other funds - - - 25,229
Due to other governments - - - -
Total liabilities - 38,120 263 26,822
Deferred Inflows of Resources
Unavailable revenue - property taxes - - 209 445
Unavailable revenue - special assessments - - - -
Total deferred inflows of resources - - 209 445
Fund Balances
Nonspendable - - 311 -
Restricted - 548,594 - -
Committed 375,444 - 102,029 -
Assigned - - - -
Unassigned - - - (11,483)
Total fund balances 375,444 548,594 102,340 (11,483)
Total liabilities, deferred inflows of
resources, and fund balances 375,444$ 586,714$ 102,812$ 15,784$
68
Special Revenue
City of Mendota Heights
Combining Balance Sheet -
Nonmajor Governmental Funds
December 31, 2017
page 136
Debt Service
Par 3 G.O.
Bonds
Equipment
Certficates
Equipment
Replacement
Reserve
Infrastructure
Reserve Facility Reserve
Water Tower
Capital Project
Pilot Knob
Improvement
343,796$ 132,443$ 379,726$ 59,405$ 355,281$ 355,426$ 959$
2,134 449 497 161 8 - -
- - - - - - -
- - - - - - -
220 89 426 79 396 1,018 -
- - - 25,229 - 295,023 -
- - - - - - -
- - - - - - -
- - - - - - -
346,150$ 132,981$ 380,649$ 84,874$ 355,685$ 651,467$ 959$
-$ -$ -$ -$ -$ -$ -$
- - - - - - -
- - - - - - -
- - - - - - -
2,134 449 497 161 8 - -
- - - - - - -
2,134 449 497 161 8 - -
- - - - - - -
344,016 132,532 - - - - -
- - - - - - -
- - 380,152 84,713 355,677 651,467 959
- - - - - - -
344,016 132,532 380,152 84,713 355,677 651,467 959
346,150$ 132,981$ 380,649$ 84,874$ 355,685$ 651,467$ 959$
69
Capital Projects
page 137
70
(THIS PAGE LEFT BLANK INTENTIONALLY)
page 138
Pre-1998 Non-
Increment
Special
Assessment
Capital Project
TIF District No.
2
Total Nonmajor
Governmental
Funds
Assets
Cash and investments 50,882$ -$ -$ 2,738,361$
Taxes receivable - delinquent - - - 3,903
Special assessments receivable
Deferred - 9,819 - 9,819
Accounts receivable - 18,324 - 33,663
Interest receivable 33 119 - 3,523
Due from other funds 7,358 - - 327,610
Due from other governments - 1,374 - 4,238
Prepaid items - - - 311
Land held for resale 96,100 - - 96,100
Total assets 154,373$ 29,636$ -$ 3,217,528$
Liabilities
Accounts and contracts payable -$ 724$ -$ 40,700$
Due to other funds - 128,217 7,358 160,804
Due to other governments - 170,000 - 170,000
Total liabilities - 298,941 7,358 371,504
Deferred Inflows of Resources
Unavailable revenue - property taxes - - - 3,903
Unavailable revenue - special assessments - 9,819 - 9,819
Total deferred inflows of resources - 9,819 - 13,722
Fund Balances
Nonspendable - - - 311
Restricted - - - 1,025,142
Committed - - - 477,473
Assigned 154,373 - - 1,627,341
Unassigned - (279,124) (7,358) (297,965)
Total fund balances 154,373 (279,124) (7,358) 2,832,302
Total liabilities, deferred inflows of
resources, and fund balances 154,373$ 29,636$ -$ 3,217,528$
71
City of Mendota Heights
Combining Balance Sheet -
Nonmajor Governmental Funds
December 31, 2017
Capital Projects
page 139
City of Mendota Heights
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances - Nonmajor Governmental Funds
Year Ended December 31, 2017
Special Revenue
Water Revenue Special Park Civil Defense Street Lighting
Revenues
Property taxes -$ -$ 25,100$ 18,706$
Charges for services 126,618 - - -
Fines and forfeitures - - - -
Miscellaneous
Investment income 2,459 4,906 704 -
Contributions and donations - 1,000 - -
Other - 515,400 - -
Total revenues 129,077 521,306 25,804 18,706
Expenditures
Current
General government 3,369 - 20,592 29,872
Public safety - - - -
Public works - 4,935 - -
Debt service
Principal - - - -
Interest and other charges - - - -
Capital outlay
General government - 106,844 - -
Public works - - - -
Total expenditures 3,369 111,779 20,592 29,872
Excess of revenues over
(under) expenditures 125,708 409,527 5,212 (11,166)
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 122,708 408,027 5,212 (11,166)
Fund Balances
Beginning of year 252,736 140,567 97,128 (317)
End of year 375,444$ 548,594$ 102,340$ (11,483)$
72
page 140
Debt Service
Par 3 G.O. Bonds
Equipment
Certficates
Equipment
Replacement
Reserve
Infrastructure
Reserve Facility Reserve
Water Tower
Capital Project
Pilot Knob
Improvement
246,914$ 52,276$ 92,614$ 19,698$ -$ -$ -$
- - - - - - -
- 1 2 1 - - -
1,554 626 3,006 559 2,793 7,186 -
- - - - - - -
- - - 1,160 - 19,486 -
248,468 52,903 95,622 21,418 2,793 26,672 -
- - 177,133 - - - -
- - - - 3,441 - -
- - - - - - -
190,000 45,000 - - - - -
32,550 5,760 - - - - -
- - - - - - -
- - 43,875 - 7,200 - -
222,550 50,760 221,008 - 10,641 - -
25,918 2,143 (125,386) 21,418 (7,848) 26,672 -
- - 315,000 - 330,000 - -
- - - - - (904,459) -
- - 315,000 - 330,000 (904,459) -
25,918 2,143 189,614 21,418 322,152 (877,787) -
318,098 130,389 190,538 63,295 33,525 1,529,254 959
344,016$ 132,532$ 380,152$ 84,713$ 355,677$ 651,467$ 959$
Capital Projects
73
page 141
Pre-1998 Non-
Increment
Special
Assessment
Capital Project
TIF District No.
2
Total Other
Governmental
Funds
Revenues
Property taxes -$ -$ -$ 455,308$
Charges for services 30,000 - - 156,618
Fines and forfeitures - - - 4
Miscellaneous
Investment income 235 838 - 24,866
Contributions and donations - - - 1,000
Other 34,827 - - 570,873
Total revenues 65,062 838 - 1,208,669
Expenditures
Current
General government 33,074 - - 264,040
Public safety - - - 3,441
Public works - - - 4,935
Debt service
Principal - - - 235,000
Interest and other charges - - - 38,310
Capital outlay
General government 11,950 - - 118,794
Public works - 134,102 7,358 192,535
Total expenditures 45,024 134,102 7,358 857,055
Excess of revenues over
(under) expenditures 20,038 (133,264) (7,358) 351,614
Other Financing Sources (Uses)
Transfers in - 42,039 - 687,039
Transfers out - - - (908,959)
Total other financing
sources (uses)- 42,039 - (221,920)
Net change in fund balances 20,038 (91,225) (7,358) 129,694
Fund Balances
Beginning of year 134,335 (187,899) - 2,702,608
End of year 154,373$ (279,124)$ (7,358)$ 2,832,302$
74
Capital Projects
City of Mendota Heights
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances - Nonmajor Governmental Funds
Year Ended December 31, 2017
page 142
Compensated
Absences
City Hall
Sinking Fund Total
Assets
Current assets
Cash and investments
(including cash equivalents) 402,679$ 174,520$ 577,199$
Interest receivable - 192 192
Prepaid expenses - 21,952 21,952
Total current assets 402,679 196,664 599,343
Noncurrent assets
Capital assets
Land - 25,000 25,000
Buildings - 1,782,525 1,782,525
Improvements other than buildings - 27,581 27,581
Machinery and equipment - 66,969 66,969
Construction In Progress - 134,479 134,479
Total capital assets - 2,036,554 2,036,554
Less accumulated depreciation - (1,622,557) (1,622,557)
Net capital assets - 413,997 413,997
Total assets 402,679 610,661 1,013,340
Deferred Outflows of Resources
Deferred outflows of resources related to pensions - 17,163 17,163
Total assets and deferred outflows of resources 402,679$ 627,824$ 1,030,503$
Liabilities
Current liabilities
Accounts and contracts payable -$ 97,972$ 97,972$
Salaries and benefits payable - 1,497 1,497
Due to other governments - 94 94
Noncurrent liabilities due within one year 310,254 3,899 314,153
Total current liabilities 310,254 103,462 413,716
Noncurrent liabilities
Compensated absences 402,679 12,054 414,733
OPEB payable - 4,767 4,767
Net pension liability - 62,846 62,846
Less amount due within one year (310,254) (3,899) (314,153)
Total noncurrent liabilities 92,425 75,768 168,193
Total liabilities 402,679 179,230 581,909
Deferred Inflows of Resources
Deferred inflows of resources related to pensions - 17,772 17,772
Net Position
Investment in capital assets - 413,997 413,997
Unrestricted - 16,825 16,825
Total net position - 430,822 430,822
Total liabilities, deferred inflows of resources,
and net position 402,679$ 627,824$ 1,030,503$
75
December 31, 2017
Combining Statement of Net Position - Internal Service Funds
City of Mendota Heights
page 143
City of Mendota Heights
Combining Statement of Revenues, Expenses, and Changes
in Net Position - Internal Service Funds
Year Ended December 31, 2017
Engineering
City Hall
Sinking Fund Total
Operating revenues
Charges for services -$ 215,775$ 215,775$
Operating expenses
Wages and salaries - 64,629 64,629
Employee benefits - 29,370 29,370
Professional services - 9,514 9,514
Insurance - 5,876 5,876
Utilities - 41,052 41,052
Depreciation - 64,778 64,778
Miscellaneous - 44,518 44,518
Total operating expenses - 259,737 259,737
Operating loss - (43,962) (43,962)
Nonoperating revenues
Investment income - 1,352 1,352
Loss before transfers - (42,610) (42,610)
Transfers in - 130,738 130,738
Change in net position - 88,128 88,128
Net position
Beginning of year (573,398) 342,694 (230,704)
Change in accounting principle (Note 16) 573,398 - 573,398
Beginning of year, as restated - 342,694 342,694
End of year -$ 430,822$ 430,822$
76
page 144
Compensated
Absences
City Hall
Sinking Fund Total
Cash Flows - Operating Activities
Receipts from customers and users -$ 215,775$ 215,775$
Payments to suppliers - (23,005) (23,005)
Payments to employees (11,256) (87,499) (98,755)
Net cash flows - operating activities (11,256) 105,271 94,015
Cash Flows - Noncapital
Financing Activities
Transfer from Other Funds - 130,738 130,738
Due from other funds 273,556 - 273,556
Net cash flows - noncapital
financing activities 273,556 130,738 404,294
Cash Flows - Capital And Related
Financing Activities
Acquisition of capital assets - (134,479) (134,479)
Cash Flows - Investing Activities
Interest and dividends received - 1,353 1,353
Net change in cash and cash equivalents 262,300 102,883 365,183
Cash and Cash Equivalents
Beginning of year 140,379 71,637 212,016
End of year 402,679$ 174,520$ 577,199$
Reconciliation of Operating
Loss to Net Cash Flows -
Operating Activities
Operating loss -$ (43,962)$ (43,962)$
Adjustments to reconcile operating
Loss to net cash flows -
Operating activities
Depreciation expense - 64,778 64,778
Prepaid items - (15,120) (15,120)
Accounts payable - 93,074 93,074
Contracts payable - - -
Due to other governmental units - 1 1
Salaries payable - 130 130
OPEB payable - 253 253
Pension related items - 3,972 3,972
Compensated absences payable (11,256) 2,145 (9,111)
Total adjustments (11,256) 149,233 137,977
Net cash flows - operating activities (11,256)$ 105,271$ 94,015$
77
City of Mendota Heights
Combining Statement of Cash Flows - Internal Service Funds
Year Ended December 31, 2017
page 145
Budgeted
Amounts Variance with
Original Actual
And final Amounts
Revenues
Property taxes 6,607,624$ 6,652,540$ 44,916$
Special assessments - 893 893
Licenses and permits 354,050 633,846 279,796
Intergovernmental revenue
State grants and aids
PERA aid 9,070 9,073 3
Fire aid 94,000 97,811 3,811
Police aid 120,000 132,257 12,257
Other grants and aids 176,100 185,127 9,027
Total intergovernmental revenue 399,170 424,268 25,098
Charges for services 619,936 621,308 1,372
Fines and forfeitures 64,000 82,901 18,901
Miscellaneous revenues
Investment income 32,000 49,891 17,891
Other 171,161 279,978 108,817
Total miscellaneous revenues 203,161 329,869 126,708
Total revenues 8,247,941 8,745,625 497,684
Expenditures
General government
Mayor and council
Salaries and benefits 24,325 24,346 21
Contracted services 14,400 18,599 4,199
Administration and finance
Salaries and benefits 623,788 666,120 42,332
Materials and supplies 17,630 16,053 (1,577)
Contracted services 409,012 435,093 26,081
78
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, 2017
page 146
Budgeted
Amounts Variance with
Original Actual Final budget -
And final Amounts Over (under)
Expenditures (Continued)
General government (continued)
Elections
Salaries and benefits 34,375$ 31,711$ (2,664)$
Materials and supplies 11,105 11,961 856
Contracted services 2,150 2,046 (104)
Information technology
Salaries and benefits 67,228 - (67,228)
Materials and supplies 69,500 19,316 (50,184)
Contracted services 15,400 62,306 46,906
Capital outlay 20,000 - (20,000)
Planning and zoning
Salaries and benefits 76,418 105,797 29,379
Materials and supplies 3,200 1,746 (1,454)
Contracted services 73,100 97,294 24,194
Recycling
Salaries and benefits 19,105 3,976 (15,129)
Contracted services 20,300 8,020 (12,280)
Miscellaneous
Contracted services - 12,522 12,522
Total general government 1,501,036 1,516,906 15,870
Public safety
Police protection
Salaries and benefits 2,837,388 2,458,022 (379,366)
Materials and supplies 217,550 168,520 (49,030)
Contracted services 670,798 602,338 (68,460)
Capital outlay 52,600 5,295 (47,305)
Fire protection
Salaries and benefits 277,734 255,540 (22,194)
Materials and supplies 105,040 93,148 (11,892)
Contracted services 317,415 301,834 (15,581)
Total public safety 4,478,525 3,884,697 (593,828)
79
Detailed Schedule of Revenues, Expenditures, and
Changes in Fund Balance - Budget and Actual -
City of Mendota Heights
General Fund
Year Ended December 31, 2017
(Continued)
page 147
Budgeted
Amounts Variance with
Original Actual Final budget -
And final Amounts Over (under)
Expenditures (Continued)
Public works
Code enforcement
Materials and supplies 2,475$ 5,184$ 2,709$
Contracted services 110,380 103,882 (6,498)
Street maintenance
Salaries and benefits 858,479 842,669 (15,810)
Materials and supplies 96,150 126,661 30,511
Contracted services 457,929 371,666 (86,263)
Capital outlay - 2,437 2,437
Parks
Salaries and benefits 474,117 456,676 (17,441)
Materials and supplies 197,250 156,128 (41,122)
Contracted services 127,350 121,512 (5,838)
Capital outlay - 25,137 25,137
Total public works 2,324,130 2,211,952 (112,178)
Total expenditures 8,303,691 7,613,555 (690,136)
Excess of revenues over
(under) expenditures (55,750) 1,132,070 1,187,820
Other Financing Sources
Transfer in 55,750 47,550 (8,200)
Net change in fund balance -$ 1,179,620 1,179,620$
Fund Balance
Beginning of year 7,221,257
Change in accounting principle (Note 16)(313,379)
Beginning of year, as restated 6,907,878
End of year 8,087,498$
80
Detailed Schedule of Revenues, Expenditures, and
Changes in Fund Balance - Budget and Actual -
General Fund
City of Mendota Heights
Year Ended December 31, 2017
(Continued)
page 148
81
BerganKDV, Ltd.
bergankdv.com
Report on 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, 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, 2017, and the
related notes to financial statements, which collectively comprise the City's basic financial
statements, and have issued our report thereon dated May 31, 2018.
The Minnesota Legal Compliance Audit Guide for Cities, promulgated by the State Auditor
pursuant to Minnesota Statutes § 6.65, contains seven categories of compliance to be tested:
contracting and bidding, deposits and investments, conflicts of interest, public indebtedness,
claims and disbursements, miscellaneous provisions and tax increment financing. Our audit
considered all of the listed categories.
In connection with our audit, nothing came to our attention that caused us to believe that the
City of Mendota Heights, Minnesota failed to comply with the provisions of the Minnesota
Legal Compliance Audit Guide for Cities. 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.
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
May 31, 2018
page 149
REQUEST FOR COUNCIL ACTION
DATE: June 19, 2018
TO: Mayor, City Council, and City Administrator
FROM: Ryan Ruzek, P.E., Public Works Director
SUBJECT: Ordinance 527 & 528 Renaming Freeway Road North and South
COMMENT:
INTRODUCTION
The Council is asked to approve Ordinance 527 renaming South Freeway Road to Mulberry
Lane & Ordinance 528 renaming North Freeway Road to Linden Street.
BACKGROUND
Mendota Heights received a petition from residents on South Freeway Road. The petition
included 13 of the 18 properties which constituted a majority.
DISCUSSION
Mendota Heights received a petition from residents on South Freeway Road requesting a street
name change. Upon reviewing the petition, staff made a determination to poll the residents on
North Freeway Road to gauge interest in renaming their street as Linden Street. Currently,
Linden Street changes to North Freeway Road at Oak Street.
A letter was mailed to the 13 properties on North Freeway Road. Staff received 7 votes in favor
of the name change, 2 votes opposed, and 4 properties did not submit a response (see map).
Once the votes were tallied, it was determined that a majority of the properties on North Freeway
Road were also in favor of this change, a letter was mailed to all 31 affected properties inviting
them to the City Council meeting on June 19, 2018. Staff received two emails ahead of the
meeting asking for approval of the Ordinance.
BUDGET IMPACT
The City will have minimal time and postage in sending letters regarding updating the addresses.
Public Works will also need to replace the street name plates.
RECOMMENDATION
Staff recommends that the Council hear comments from the residents. Based on a majority of
the properties desiring a street name change, staff recommends approving both Ordinance 527
and Ordinance 528.
page 150
ACTION REQUIRED
Staff recommends that the city council pass a motion adopting Ordinance 527, “AN
ORDINANCE PROVIDING FOR THE NAME CHANGE OF SOUTH FREEWAY ROAD
(LOCATED BETWEEN OAK STREET AND SOUTH LANE) TO MULBERRY LANE”
and Ordinance 528, “AN ORDINANCE PROVIDING FOR THE NAME CHANGE OF
NORTH FREEWAY ROAD (LOCATED BETWEEN OAK STREET AND SOUTH
LANE) TO LINDEN STREET”. This action requires a simple majority vote.
page 151
700
684 650
699 645
679
670
679689 1912
1968
663667 655
1940
1926
646
664
697
656
697
650
654698
660
660668692
667
680
685
686
693
674
659
664672680688692
636
696
1937
673
645
1946
1954
651 641
1882
1891
1872
19021901
709
1971
686 680 673 665703 657
720
649
651
1892
643645651657663669689
1892
1902
698
1960
1862
1882
1871
SOUTH LNWESLEY LN
FREEWAY RD S
FREEWAY RD N
OAK STMARKET STHWY OAK STLINDEN ST WESLEY CTDakota County GIS
Freeway Road Street Name Change map City ofMendotaHeights0200
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.
6/11/2018
Legend
Linden Street
Mulberry Lane
"No" Vote
"Yes" vote or signed petition
page 152
CITY OF MENDOTA HEIGHTS
DAKOTA COUNTY, MINNESOTA
ORDINANCE NO. 527
AN ORDINANCE PROVIDING FOR THE NAME CHANGE OF SOUTH FREEWAY
ROAD (LOCATED BETWEEN OAK STREET AND SOUTH LANE) TO
MULBERRY LANE
The City Council of the City of Mendota Heights, Minnesota, does hereby ordain:
The name of the street located in the City of Mendota Heights, Dakota County,
Minnesota heretofore known and designated as “South Freeway Road” between
Oak Street and South Lane shall be and is hereby renamed to Mulberry Lane.
This Ordinance shall be in effect from and after the date of its passage and publication.
Adopted and ordained into an Ordinance this nineteenth day of June, 2018.
CITY COUNCIL
CITY OF MENDOTA HEIGHTS
Neil Garlock, Mayor
ATTEST
___________________________
Lorri Smith, City Clerk
page 153
CITY OF MENDOTA HEIGHTS
DAKOTA COUNTY, MINNESOTA
ORDINANCE NO. 528
AN ORDINANCE PROVIDING FOR THE NAME CHANGE OF NORTH
FREEWAY ROAD (LOCATED BETWEEN OAK STREET AND SOUTH LANE) TO
LINDEN STREET
The City Council of the City of Mendota Heights, Minnesota, does hereby ordain:
The name of the street located in the City of Mendota Heights, Dakota County,
Minnesota heretofore known and designated as “North Freeway Road” between
Oak Street and South Lane shall be and is hereby renamed to Linden Street.
This Ordinance shall be in effect from and after the date of its passage and publication.
Adopted and ordained into an Ordinance this nineteenth day of June, 2018.
CITY COUNCIL
CITY OF MENDOTA HEIGHTS
Neil Garlock, Mayor
ATTEST
___________________________
Lorri Smith, City Clerk
page 154
To: Mayor and City Council
From: Kelly McCarthy, Police Chief
Mark McNeill, City Administrator
Subject: Sexual Predator and Offenders Residency Restrictions
Date: June 19, 2018
COMMENT:
INTRODUCTION:
The City Council is asked to amend the City Code by adding City Code Section 4-7, which
proposes to establish restrictions as to where designated registered Level 2 and 3 sexual
offenders and predators may live in the City.
BACKGROUND:
On April 26th, a community meeting was held by the Minnesota Department of Corrections to
present information to interested residents about the living arrangements in Mendota Heights of a
recently-released Level 3 sexual predator.
As a result of that meeting, interest was expressed about the creation of an ordinance which
would restrict where future such individuals could be allowed to live in the City.
According to a staff member of the Minnesota Department of Corrections, 85 cities in Minnesota
have established residency restrictions for registered sexual offenders and predators. Common
language of several ordinances which have been reviewed by staff include prohibitions on where
they can live--in terms of a specific number of feet from locations where children are known to
congregate--and the identification of those particular places of gathering.
From staff research, it appears that 1200 feet (approximately 4 city blocks) is a commonly used
distance cited in other ordinances from which to restrict the offender’s residence from the
common gathering places. This distance would be measured from the corner of the boundaries
of the proposed residence, to the nearest boundaries of the protected gathering places.
page 155
It should be noted that placing a distance restriction of greater than 1200 feet would make too
much of the residentially-zoned areas of Mendota Heights “off-limits”, which could potentially
raise constitutional issues
The gathering places which are proposed to be the basis of the restrictions are:
• City Parks
• Public and Private Schools
• Licensed Daycares
• The residences of other registered Level 2 and Level 3 Offenders.
The proposed code addition prohibits offenders from renting lodging in the areas so designated,
and prohibits property owners from renting to the offenders. The code does provide exemptions
for specific situations for the designated offender:
• The person is living at the primary or secondary address with a parent, grandparent, adult
children, or spouse;
• The person is a minor, or was a minor when convicted;
• The licensed daycare or school was opened after the person had established residency at
the primary or secondary residence;
• The primary or secondary residence of the person was established prior to June 5, 2018.
In addition to the restrictions on residency, the ordinance would prohibit registered offenders
from dressing in costume for Halloween and other holidays when children might be present, for
the purpose of interacting with non-familial children.
If approved, a summary of this ordinance will be published, and the restrictions would become
effective July1, 2018.
DISCUSSION:
Adoption of this ordinance would be an additional tool that the City could use to protect its
residents from possible negative interaction with Level 2 and 3 registered offenders. However,
to be clear, there is no evidence that residency restrictions have offered any increased level of
protection against child predators. It should never be assumed that laws like this will guaranty
that residents will always be safe—not all prospective threats are from people who have been
convicted or have been previously charged. Parents should always be vigilant, and empower
their children with the facts regarding sexual predators.
The City is committed to increasing its commitment to educate parents and children as to how
best to protect themselves. In conjunction with other law enforcement resources, the Mendota
Heights Police Department is designing safety classes for families, which will be made available
later this summer. Details will be forthcoming on the City’s website.
A representative of the Dakota County Community Corrections will be in attendance to make a
presentation on the topic of residency restrictions.
page 156
RECOMMENDTION:
If the Council desires to have a residency restriction on the books, it should adopt Section 4-7, as
an amendment to the City Code.
ACTION REQUIRED:
If the Council concurs, it should, by motion adopt the following:
AN ORDINANCE ADDING CITY CODE SECTION 4-7
REGARDING PREDATORY OFFENDERS
Kelly McCarthy Mark McNeill
Police Chief City Administrator
page 157
CITY OF MENDOTA HEIGHTS
DAKOTA COUNTY, MINNESOTA
ORDINANCE NO. 526
AN ORDINANCE ADDING CITY CODE SECTION 4-7
REGARDING PREDATORY OFFENDERS
The City Council of Mendota Heights, Minnesota does hereby ordain:
SECTION 1.
Mendota Heights City Code Section 4-7 relating to Predatory Offenders is hereby added as
follows:
§ 4-7-1: FINDINGS AND INTENT.
(A) Repeat predatory offenders, predatory offenders who use physical violence, and
predatory offenders who prey on children and vulnerable individuals, are predators who present a
threat to the public safety. Predatory offenders are likely to use physical violence or force and to
repeat their offenses. Most predatory offenders commit many offenses, have many more victims
than are ever reported, and are prosecuted for only a fraction of their crimes. Moreover, predatory
offenders often learn and evolve as they commit additional offenses, thereby making detection of
their unlawfulness more difficult for authorities. This makes the cost of predatory offender
victimization to society at large, while incalculable, clearly exorbitant.
(B) It is the intent of this chapter to serve the city’s compelling interest to promote,
protect and improve the health, safety and welfare of the citizens of the city by creating areas
around locations where children regularly congregate wherein certain predatory offenders are
prohibited from establishing a primary or secondary address.
§ 4-7-2: DEFINITIONS.
The following words, terms and phrases, when used in this chapter, shall have the meanings
ascribed to them in this section, except where the context clearly indicates a different meaning:
DESIGNATED SEXUAL OFFENSE. A conviction, commitment under M.S. Ch. 253B,
or admission of guilt under oath without adjudication involving any of the following offenses:
Minn. Stat. § 609.342, subd. 1(a), (b), (g), (h); § 609.343, subd. 1(a), (b), (g), (h); § 609.344, subd.
1(a), (b), (e), (f), (g); § 609.345, subd. 1(a), (b), (e), (f), (g); § 609.352; § 617.23, subd. 2(1), subd.
3(1); § 617.246, subd. 2, successor statutes, or a similar offense from another state.
DESIGNATED OFFENDER. Any person who (1) is required to register as a predatory
offender under Minn. Stat. § 243.166, (2) is assigned at Risk Level II or Risk Level III under Minn.
page 158
Stat. § 244.052, subd. 3, and (3) has been convicted of a designated sexual offense, regardless of
whether the adjudication has been withheld
PRIMARY ADDRESS. The mailing address of the person's dwelling. If the mailing
address is different from the actual location of the dwelling, primary address also includes the
physical location of the dwelling described with as much specificity as possible.
SECONDARY ADDRESS. The mailing address of any place where the person regularly
or occasionally stays overnight when not staying at the person’s primary address. If the mailing
address is different from the actual location of the place, secondary address also includes the
physical location of the place described with as much specificity as possible. However, the location
of a supervised publicly or privately-operated shelter or facility designated to provide temporary
living accommodations for homeless individuals as defined in M.S. § 116L.361, subd. 5, does not
constitute a secondary address.
§ 4-7-3: RESIDENCE PROHIBITION; PENALTIES; EXCEPTIONS.
(A) Prohibited location of residence. It is unlawful for any designated offender to
establish a primary address or secondary address within 1,200 feet of any of the following places:
(1) Public or private school; or
(2) Licensed child care facilities.
(3) Any current Designated Offender residing in the city.
(4) City parks
(B) Prohibited activity. It is unlawful for any designated offender to participate in a
holiday event involving children under 18 years of age, such as distributing candy or wearing any
costume for the purpose of enticing or attracting children. Holiday events in which the offender is
the parent or guardian of the children involved, and no non-familial children are present, are
exempt from this division.
(C) Measurement of distance.
(1) For purposes of determining the minimum distance separation, the
requirement shall be measured by following a straight line from the outer
property line of the primary address or secondary address to the nearest
outer property line of the places identified in division (A).
(2) The City Clerk shall maintain an official map showing prohibited locations
as defined by this chapter. The Clerk shall update the map at least annually
to reflect any changes in the location of prohibited zones.
page 159
(D) Penalties. Any person violating any provision of this chapter shall be guilty of a
misdemeanor or administrative citation and shall be punished as provided in this code. Each day a
person maintains a residence in violation of this chapter constitutes a separate violation.
(E) Exceptions. A designated offender residing within a prohibited area as described in
division (A) of this section does not commit a violation of this section if any of the following
applies:
(1) The person established the primary address or secondary address and
reported and registered the residence pursuant to M.S. §§ 243.166, 243.167,
or successor statute, prior to June 5, 2018.
(2) The person was a minor when he/she committed the offense and was not
convicted as an adult.
(3) The person is a minor.
(4) The school or licensed child care facility within 1,200 of the person’s
primary address or secondary address was opened after the person
established the primary address or secondary address and reported and
registered the residence pursuant to M.S. §§ 243.166 or 243.167.
(5) The residence is also the primary address and secondary address of the
person’s parents, grandparents, adult children, or spouse.
§ 4-7-4: RENTING REAL PROPERTY; PENALTIES.
(A) It is unlawful to let or rent any place, structure, or part thereof, trailer or other
conveyance, with the knowledge that it will be used as a primary address or secondary address by
any person prohibited from establishing such primary address or secondary address pursuant to
this chapter, if such place, structure, or part thereof, trailer or other conveyance, is located within
a prohibited location zone described in Section 4-7-3 (A) of this chapter.
(B) A property owner’s failure to comply with provisions of this section shall constitute
a violation of this section.
(C) If a property owner discovers or is informed that a tenant is a designated offender
after signing a lease or otherwise agreeing to let the offender reside on the property, the owner or
property manager may evict the offender.
SECTION 2.
EFFECTIVE DATE. This Ordinance shall be in full force and effect from and after its passage
and publication according to law.
page 160
Adopted and ordained into an Ordinance this 19th day of June, 2018.
CITY COUNCIL
CITY OF MENDOTA HEIGHTS
Neil Garlock, Mayor
ATTEST
___________________________
Lorri Smith, City Clerk
CITY OF MENDOTA HEIGHTS
SUMMARY PUBLICATION OF ORDINANCE NO. 526
ADDING CITY CODE SECTION 4-7
REGARDING PREDATORY OFFENDERS
The City Council of the City of Mendota Heights, MN ordains:
The City of Mendota Heights Code of Ordinances, Title 4, Chapter 7, Predatory Offenders is
hereby added to prevents certain designated offenders from establishing a residence in the City
that is within 1,200 feet of public or private schools, licensed child care centers, city parks, or the
residences of other Level 2 or Level 3 registered sexual predators or offenders; and further
prohibits such offenders from the wearing of any costume for the purpose of enticing or attracting
children.
The ordinance will take effect July1, 2018. The complete text of this ordinance may be
obtained at the city hall or from the City’s website at www.mendota-heights.com.
Adopted this 19th day of June, 2018.
CITY COUNCIL OF MENDOTA HEIGHTS
/s/ Neil Garlock, Mayor
Attest:
/s/ Lorri Smith, City Clerk
page 161