2023-06-20 City Council Agenda PacketCITY COUNCIL AGENDA
MENDOTA HEIGHTS CITY HALL - COUNCIL CHAMBERS
Tuesday, June 20, 2023
7:00 p.m.
1.Call to Order
2.Roll Call
3.Pledge of Allegiance
4.Adopt Agenda
5.Consent Agenda
a.Approval of City Council Meeting Minutes – June 6, 2023
b.Approval of City Council Work Session Minutes – June 6, 2023
c.Accept Fire Department Training Officer Resignation and Authorize Internal
Position Posting
d.Resolution 2023-35 Approving an Administrative MRCCA Minor Development
Permit for 1588 Victoria Rd (Planning Case 2023-08)
e.Resolution 2023-36 Approving an Administrative MRCCA Minor Development
Permit for 1155 Kingsley Rd (Planning Case 2023-09)
f.Resolution 2023-37 Approving an Administrative MRCCA Minor Development
Permit for 1164 Kingsley Rd (Planning Case 2023-10)
g.Approve Resolution 2023-38 Accepting a Park Bench Donation—Mary Jane Cronin
h.Approve Resolution 2023-31 Accepting a Donation to Valley View Heights Park
Playground Grand Opening
i.Approve Technology Updates to the City Council Chambers
j.Approve Purchase of Replacement Street Light Poles
k.Acknowledge April, 2023 Fire Synopsis
l.Approve Claims List
Guidelines for Public Comment Period: The Public Comment Period of the agenda provides an opportunity
to address the Council on items which are not on the agenda. All are welcome to speak.
Comments should be directed to the Council. Comments will be lim ited to 3 minutes per person; presentations
which are longer will need to be scheduled with the City Clerk to appear on a future City Council agenda.
Public comments may not be used to air personal attacks, to make political endorsements, or for political
campaign purposes. Council members will not enter into a dialogue, nor will any decisions be made at that
presentation.
Questions from the Council will be for clarification only. If appropriate, the Mayor may assign staff for follow up
to the issues raised or occasionally called on to respond.
Page 2 of 2
6. Public Comment Period (for items not on the agenda)
7. Presentations/Recognitions
a. City of Mendota Heights FY2022 Audit Report
b. 2023 Legislative Overview and Recap
8. Public Hearings
9. New Business
a. Approve Amendments to the Parks and Recreation Scholarship Program
b. Resolution 2023-34 Accepting Bids and Awarding Contract for the Victoria Curve
Street Improvements
10. Community Announcements
11. Council Comments
12. Adjourn
Alternative formats or auxiliary aids are available to individuals with disabilities upon
request. Please contact city hall at 651-452-1850 or cityhall@mendotaheightsmn.gov
CITY OF MENDOTA HEIGHTS
DAKOTA COUNTY
STATE OF MINNESOTA
DRAFT Minutes of the Regular Meeting
Held Tuesday, June 6, 2023
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 Levine called the meeting to order at 7:00 p.m. Councilors Lorberbaum, Paper, Mazzitello, and
Miller were also present.
PLEDGE OF ALLEGIANCE
Council, the audience, and staff recited the Pledge of Allegiance.
AGENDA ADOPTION
Mayor Levine presented the agenda for adoption. Councilor Mazzitello moved adoption of the agenda.
Councilor Paper seconded the motion.
Ayes: 5
Nays: 0
CONSENT CALENDAR
Mayor Levine presented the consent calendar and explained the procedure for discussion and approval.
Councilor Lorberbaum moved approval of the consent calendar as presented, pulling items E, N, and P.
a.Approval of May 16, 2023 City Council Minutes
b. Acknowledge Natural Resource Commission April 12, 2023 Meeting Minutes
c.Acknowledge March 15, 2023 Airport Relations Commission Meeting Minutes
d. Resolution 2023-27 Accept Memorial Tree Donation
e. Approve the MN Historical Society Heritage Partnership Program Grant Agreement
f.Approve Purchase Order for Tree Removals
g.Resolution 2023-32 Approving an Administrative MRCCA Minor Development Permit to 1902
Glenhill Road (Planning Case 2023-06)
h. Acknowledge the April 2023 Par 3 Financial Report
i.Approve Replacement of Overhead Garage Door at Public Works
j.Approve Purchase of Sanitary Sewer Camera Nozzle
k.Resolution 2023-28 Accept Bids and Award Contract for the 2023 Sanitary Sewer Cleaning and
Televising Project
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June 6, 2023 Mendota Heights City Council Page 2 of 5
l.Resolution 2023-09 Accepting Project and Approving Final Payment for the Rogers Lake and Park
Place Pond Improvement Project
m.Resolution 2023-30 Authorizing Continued Participation in the Dakota County Electronic Crimes
Task Force Joint Powers Agreement
n. Approve Out of Metro Travel Request for City Mechanic
o.Accept Natural Resources Commissioner Resignation
p.Accept Police Sergeant Resignation and Authorize Police Sergeant and Police Officer Position
Postings
q. Approve Closure of City Hall on Monday, July 3, 2023
r.Approve Alcohol License Renewals
s.Approve Massage Licenses
t.Approval of Claims List
Councilor Mazzitello seconded the motion.
Ayes: 5
Nays: 0
PULLED CONSENT AGENDA ITEMS
E)APPROVE THE MN HISTORICAL SOCIETY HERITAGE PARTNERSHIP PROGRAM
GRANT AGREEMENT
Mayor Levine commented that she wanted to acknowledge the Natural Resources Coordinator for
securing $50,000 in grant funding for signage.
Mayor Levine moved to approve THE MN HISTORICAL SOCIETY HERITAGE PARTNERSHIP
PROGRAM GRANT AGREEMENT.
Councilor Mazzitello seconded the motion.
Ayes: 5
Nays: 0
N)APPROVE OUT OF METRO TRAVEL REQUEST FOR CITY MECHANIC
Councilor Paper took the opportunity to acknowledge the work of the City Mechanic to maintain the City
fleet which includes vehicles for Police, Fire, Public Works, etc. He commented that Nick does an
amazing job keeping things running and on the road.
The Council echoed the accolades.
Mayor Levine noted the requested training that the employee will receive.
Councilor Paper moved to approve OUT OF METRO TRAVEL REQUEST FOR CITY MECHANIC.
Councilor Mazzitello seconded the motion.
Ayes: 5
Nays: 0
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June 6, 2023 Mendota Heights City Council Page 3 of 5
P)ACCEPT POLICE SERGEANT RESIGNATION AND AUTHORIZE POLICE SERGEANT
AND POLICE OFFICER POSITION POSTINGS
Mayor Levine congratulated Sergeant Fleming for his years of service in Mendota Heights, noting that he
received a great promotion and wished him luck in his future endeavors in Texas.
Mayor Levine moved to approve POLICE SERGEANT RESIGNATION AND AUTHORIZE POLICE
SERGEANT AND POLICE OFFICER POSITION POSTINGS.
Councilor Mazzitello seconded the motion.
Ayes: 5
Nays: 0
PUBLIC COMMENTS
No one from the public wished to be heard.
PRESENTATIONS
No items scheduled.
PUBLIC HEARING
No items scheduled.
NEW BUSINESS
A)AUTHORIZE PURCHASE ORDER FOR THE WENTWORTH PARK WARMING HOUSE
REPLACEMENT
Parks and Recreation Manager Meredith Lawrence explained that the Council was being asked to approve
a purchase order for the construction of a new (replacement) warming house at Wentworth Park.
Councilor Lorberbaum asked and received confirmation that there would not be restrooms in the facility.
She referenced the rectangle shapes on the drawing and asked for clarification.
Public Works Director Ryan Ruzek provided additional clarification on the items shown on the drawing.
Councilor Paper referenced the ground work and asked who would be responsible for the grading work.
Public Works Director Ryan Ruzek replied that the City has constructed a trail that would run to the
portable restroom and building to provide ADA access.
Councilor Paper asked the number of accessible outlets inside the building. He noted that going forward,
it is important to have outlets as there are no phones and cell phones die.
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Parks and Recreation Manager Meredith Lawrence replied that the Marie Park warming house has four
outlets and they are used by residents and warming house staff to charge phones or laptops. She noted
that this bid does not include electric, so more outlets could be added.
Councilor Paper asked if there would be windows.
Parks and Recreation Manager Meredith Lawrence replied that there are not windows as they want to
avoid pucks breaking windows.
Councilor Paper commented that it would be helpful to have a window for the warming house staff.
Councilor Miller moved to approve THE PURCHASE ORDER FOR THE WENTWORTH WARMING
HOUSE BY KIRCHNER CONTRACTING FOR $58,800.
Councilor Mazzitello seconded the motion.
Ayes: 5
Nays: 0
B) REVIEW FIRST QUARTER CITY FINANCIAL REPORT
Finance Director Kristen Schabacker provided a brief background on this item. She provided a report on
the first quarter financials.
Councilor Lorberbaum noted the difference in the storm utility revenue comparing this year to last
year and asked for details.
Finance Director Kristen Schabacker replied that they should be very similar and noted that the full entry
for 2022 was most likely not complete.
Mayor Levine thanked Finance Director Kristen Schabacker for the update.
COMMUNITY ANNOUNCEMENTS
City Administrator Cheryl Jacobson announced upcoming events and activities.
COUNCIL COMMENTS
Councilor Lorberbaum congratulated those graduating from high school, college, or any level.
She commented on the ribbon cutting for the reintroduction of the bison at Dakota County’s Spring Lake
Park Reserve and provided details for the event in Rosemont.
Councilor Miller commented that school is coming to an end, therefore drivers should be cautious
of children in the neighborhoods.
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Councilor Mazzitello echoed the congratulations to all graduates, including his daughter. He commented
that today is the 79th anniversary of the invasion of Normandy, which led to the end of World War II.
He encouraged people to thank veterans if they know one.
Councilor Paper commented that the Officer Scott Patrick Memorial 5k was held this past weekend and
raised over $17,000. He noted that those funds will be donated to the Special Olympics in memory of
Officer Patrick. He congratulated former mayor Neil Garlock for his efforts on this event.
Mayor Levine congratulated the graduates and to former mayor Neil Garlock for the great job planning
and running the Officer Scott Patrick Memorial 5k. She encouraged people to come to Valley View
Heights playground for ice cream and fun celebrating the last day of school. She congratulated Councilor
Mazzitello as he will be getting married this weekend. She commented that there is an opening on the
Natural Resources Commission and encouraged interested residents to apply for the position.
ADJOURN
Councilor Mazzitello moved to adjourn.
Councilor Paper seconded the motion.
Ayes: 5
Nays: 0
Mayor Levine adjourned the meeting at 7:35 p.m.
____________________________________
Stephanie B. Levine
Mayor
ATTEST:
_______________________________
Christine Lusian
City Clerk
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CITY OF MENDOTA HEIGHTS
DAKOTA COUNTY
STATE OF MINNESOTA
DRAFT Minutes of the City Council Work Session
Tuesday, June 6, 2023
CALL TO ORDER
Mayor Levine called the work session to order at 4:32 p.m. Councilmembers Lorberbaum,
Mazzitello and Paper were present. Councilmember Miller arrived late.
Staff in attendance included City Administrator Cheryl Jacobson, Public Works Director Ryan
Ruzek, Assistant City Administrator Kelly Torkelson, Finance Director Kristen Schabacker, Park
and Recreation Manager Meredith Lawrence, Natural Resource Coordinator Krista Spreiter and
City Clerk Christine Lusian.
Also present Parks and Recreation Commission Chair Jaffray Blanks, Natural Resources
Commissioner Will Stein, Park and Recreation Commissioner Jo Shifsky, City Attorney Elliott
Knetsch, Municipal Advisor Stacie Kvilvang with Ehlers, Senior Financial Specialist Dan
Tienter with Ehlers, Paul Dzubnar with Copperfield Restaurant.
FINANCIAL MANAGEMENT
FUNDING CITY OPERATIONS AND INFRASTRUCTURE
Stacie Kvilvang and Dan Tienter with Ehlers presented an overview of public funding options
that the city council could consider. As a public agency, the city is bound by the options
available for public funding. The presentation by Ehlers was a review of those options that are
legally available to the city council with the goal of identifying if the city council was interested
in having staff explore additional recommendations for public funding from any of the options
available.
Dan Tienter reviewed the benefit of budget plans and capital improvement plans to help the city
council plan for funding projects and initiatives responsibly. He noted that these plans were not
binding and that the only action that would be binding for a city council would be to issue debt.
Councilor Mazzitello noted that even after the budget is approved, the city council would still
have to approve the procurement of budgetary items.
Dan Tienter reviewed how the capital planning process allows city councils to identify their
funding priorities and to reflect their values within the financial planning documents of the city.
In addition, this type of planning allows the city to make strategic adjustments to projects that
balance the many priorities of the city.
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Mayor Levine noted that the levy increase sometimes is not an accurate reflection of the
financial impact on residents and that the impact is better understood by looking at the increase
to the median home value property taxes.
Dan Tienter reviewed the city’s current fund balance which is higher than is legally required. He
noted that the higher fund balance contributes towards the city having a AAA bond rating and to
the city receiving better rates when it borrows funds. The property tax levy and the allocation to
public safety in Mendota Heights is typical of many cities.
Councilor Lorberbaum asked what fines the city collects. City Attorney Elliot Knetsch
responded that the city gets a distribution from traffic fines.
Mayor Levine noted that the fire department’s equipment is funded with the general fund which
distorts the funding for the fire department on the funding distribution graph.
Councilor Mazzitello noted that public works operates similarly in that a lot of their equipment is
funded through the capital improvement plan and the general fund. Dan Tienter noted that this
makes it so that these funds show up some years and not in others; either way, the capital
improvement plan helps the city council anticipate and consider potential expenses.
Stacie Kvilvang reviewed Minnesota’s property tax system, noting it is one of the most
complicated in the nation. Mayor Levine noted that even if the city increases the levy, but the tax
base expands more than the increase, that it would function to actually decrease resident taxes.
Stacie Kvilvang discussed how different funding mechanisms impact residents. If a city taxes to
build their fund balance in preparation for a project, then the people who are paying for the
service might move out of the community before it is purchased or implemented for their benefit.
By issuing debt, a city would be able to provide a service to the residents utilizing the resource or
service that was purchased.
Another funding mechanism is a referendum, which is when the voters decide what the city is
going to do. Kvilvang noted that a city should be careful about what initiatives it delegates to a
referendum vote. For example, a city should not put maintenance to a referendum vote, if the
vote was against funding the maintenance, it would not be responsible of the city to defer that
maintenance.
Stacie Kvilvang reviewed utility franchise fees and noted that they can either be assigned as a
flat rate or as a percentage. These funds are collected monthly through utility bills and can fund a
wide variety of initiatives including general operations. She noted that many surrounding cities
utilize franchise fees to fund initiatives.
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Kvilvang noted that a flat fee is easier to collect and easier to predict the amount of funding that
would be received. She explained that a percentage fee can be set and the council would not
have to review it again unless it wanted to change the percentage. A flat rate might be re-
evaluated after several years.
Mayor Levine noted that her first instinct was that a franchise fee felt like an exchange for
property taxes and that it was just shifting the funds from one place to another. She asked how it
would impact the schools and churches that currently do not pay property taxes.
Kvilvang said that those organizations are getting the benefit of the services that the city is
providing, including access to the right of way for the utilities used to provide its own services.
She also noted that council can set a different rate for different types of properties such as school,
industrial and residential properties.
Councilor Mazzitello noted that the City of Richfield uses franchise fees to fund their road
projects and they do not asses their streets. Cities can use franchise fees to free up funds in their
property tax levy in order to fund other areas. City Administrator Jacobson noted that the City of
Eagan recently adopted a franchise fee to fund their sustainability initiatives.
Commissioner Blanks asked why the city has not already implemented franchise fees. City
Administrator Jacobson noted that the past council had decided not to move forward with utility
franchise fees. The city does currently have a cable franchise fee.
City Administrator Jacobson noted that staff is looking for direction from the city council
regarding interest in staff continuing their research to identify any recommendations pertaining
to franchise fees or the other funding mechanism that were being reviewed during the work
session. If the council is interested, staff will do additional work to develop a better picture for
the city council of what franchise fees might look like and be used for in Mendota Heights
specifically. This discussion is preliminary in reviewing the options that the city has legal
authority to leverage in order to generate public funding.
Councilor Paper asked how we would explain to taxpayers that the city was adding this fee now
when we have not used it in the past. Dan Tienter responded that the city would be diversifying
its revenue which makes the public funding mechanisms more resilient to unforeseen changes.
Councilor Paper asked how much notice taxpayers would get about the new fee. Dan Tienter said
that would be at the discretion of the city council and would be a part of the discussion of how
the city wanted to set up the fee.
Councilor Mazzitello stated that some cities highlight the conservation angle that introducing a
franchise fee can have. The less energy people use, the less they pay. Commissioner Stein noted
that his understanding was that cities used the funds for a specific initiative and that if there was
interest in the community to support that initiative, then they would also support the fee.
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City Administrator Jacobson introduced the discussion on charitable gambling. The last time the
city discussed charitable gambling was in 2019 and the city council decided at that time not to
move forward with it. The owner of the Copperfield Restaurant was in the audience, and staff
have also connected with the owners of Tommy Chicago’s. Both businesses have expressed
support for the city adopting charitable gambling as they believe it would improve sales at their
businesses. The city impact would be 10% of the net proceeds derived from the charitable
gambling. The businesses, not the city, would select the non-profit organization that they would
partner with in conducting charitable gambling activities.
The Copperfield Restaurant owner spoke in favor of adding charitable gambling, noting that his
other restaurants that were in cities that had adopted charitable gambling saw a direct increase in
the amount that people were spending at the restaurant. He noted that pull tabs did not
necessarily attract more people, but that consumers stay longer when they were gambling than if
they did not have the option. In addition, he noted that the people who want to do that will go
where they can do it, so by not having it in Mendota Heights, the council is just directing those
customers to businesses in neighboring communities rather than supporting Mendota Heights
businesses.
Ehlers presented information on Local Lodging Taxes which can be used to market the city or
fund a city convention and visitors bureau.
Stacie Kvilvang introduced the conversation on the Local Option Sales Tax. She noted that when
the specific project is over then you have to submit for another sales tax. The Council agreed that
they were not interested in pursuing a Local Option Sales Tax.
City Administrator Cheryl Jacobson confirmed with the city council that staff should proceed
with investigating the details for implementation of utility franchise fees, charitable gambling
and a city lodging tax.
ADJOURNMENT
Mayor Levine adjourned the meeting at 6:18 p.m.
ATTEST: ____________________________________
Stephanie B. Levine, Mayor
_______________________________
Christine Lusian, City Clerk
City Council | Tuesday, June 20, 2023 | Page 10 of 225
Request for City Council Action
DATE: June 20, 2023
TO: Mayor, City Council, and City Administrator
FROM: Kelly Torkelson, Assistant City Administrator
Dave Dreelan, Fire Chief
SUBJECT: Accept Training Officer Resignation and Authoring Posting Position
INTRODUCTION
Dale Stein will be stepping down from the position of Training Officer with the Mendota Heights
Fire Department effective June 30, 2023. He will be staying on the fire department as a firefighter.
BACKGROUND
Dale joined the fire department on November 16, 2005. He was promoted to Assistant Training
Officer in February, 2010, and appointed Training Officer on December 31, 2011.
The city of Mendota Heights, the Mendota Heights Fire Department, and communities of Lilydale,
Sunfish Lake, and Mendota are thankful to Dale for his many years of service as Training Officer
and as a firefighter on the Fire Department.
Staff is also seeking authorization to post internally the Training Officer position on the Mendota
Heights Fire Department.
BUDGET IMPACT
The Training Officer position is a budgeted position.
RECOMMENDATION
Staff recommends that the City Council accept the resignation of Dale Stein from the position of
Training Officer with the Mendota Heights Fire Department effective June 30, 2023, and authorize
the internal posting for a Training Officer.
ACTION REQURED
If Council concurs, it should, pass a motion accepting the resignation of Dale Stein from the
position of Training Officer with the Mendota Heights Fire Department effective June 30, 2023,
and authorize the internal posting for a Training Officer.
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City Council | Tuesday, June 20, 2023 | Page 12 of 225
Request for City Council Action
DATE: June 20, 2023
TO: Mayor Levine and City Council; City Administrator Jacobson
FROM: Jennifer Haskamp, AICP, Consulting Planning Services
SUBJECT: Resolution No. 2023-35 Approving an Administrative MRCCA Minor Development Permit for
1588 Victoria Rd. S. [Planning Case No. 2023-08]
INTRODUCTION
The Applicant, Gayle Johnson of Childrens Country Day School, on behalf of the Owner Ron Ettinger, is
requesting approval of an Administrative Mississippi River Corridor Critical Area (MRCCA) Permit for the
Childrens Country Day School located at 1588 Victoria Rd. S.
BACKGROUND
The Applicant Gayle Johnson on behalf of the Childrens Country Day School, is requesting approval of the
MRCCA Minor Development Permit to demolish and remove an existing pool, spa and associated retaining walls
and pool decking. The existing pool area is failing which is causing drainage issues on the property, and the space
is no longer functional for their operations. The Applicant is proposing to utilize the space, once restored, as an
outdoor play area that will include improved/replaced retaining walls, drainage and pollinator plantings.
The subject property is located in the R-1 Residential Zoning district; and is situated within the Mississippi River
Corridor Critical Area overlay district. According to the city’s MRCCA Mapping of this area, the subject property
is located in the SR-Separated by River District. The MRCCA Map of the subject property (appended to this
council report) shows the subject property within the overlay district, but setback approximately 95-feet from the
Bluff Impact Zone (BIZ) at its closest point northeast of the subject property. The proposed demolition and
replacement improvements will not encroach further into the yard as the existing footprint of the pool area
improvements will limit the extents of the project.
The MRCCA Mapping system also identifies Primary Conservation Areas (PCA) within proximity to the site,
which include protected areas such as established Significant Existing Vegetative Stands or Native Plant
Communities on properties inside the MRCCA district. As shown on the attached map, there are no PCA areas
within proximity to the site. The proposed demolition and subsequent improvements will not adversely impact
any designated PCA areas.
ANALYSIS
Pursuant to City Code Section 12-3-12, “no building permit, zoning approval, or subdivision approval shall be
issued for any action or development located in an area covered by this chapter (Mississippi River Corridor
Critical Area) until a site plan has been prepared and approved in accordance with the provisions of this chapter.”
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Subpart D. of this section provides for “Minor Developments”, that are described as minor improvements to a
single-family property that can be approved directly by the City Council, without Planning Commission review
or recommendation, and without a public hearing, but only if the minor project and plans conform to the general
standards specified within the section. The standards established for Minor Developments are as follows:
Small building additions of 200 sq. ft. or less; decks; fences; driveways; walkways; stairs; open patios or
outdoor sitting areas; storage sheds, gazebos and chicken coops; retaining walls (2’ or less in height);
landscaping materials and gardens, and similar structures.
Staff Comments: The proposed project is located within the R-1 zoning district, and the Childrens Country
Day School is a permitted use within the district, which meets the spirit and intent of the ordinance
language. The proposed demolition and improvements will correct and improve drainage issues through
grading and reconfiguration of retaining walls. Though the retaining walls exceed 2-feet, they can be
considered an in-kind replacement because they are correcting issues that are existing to the property and
retaining walls are present today. Given that the extent of the proposed project matches the existing
pool/spa improvement area, staff in coordination with the MNDNR determined that the project is
consistent with the MRRCA Minor Development criteria.
All administrative approved projects must meet or comply with the following conditions. Staff review comments
are provided after each condition:
1. No part of the subject property shall have slopes of greater than eighteen percent (18%).
Staff Comments: As shown on the submitted site plan, the existing grades will be modified slightly to
improve drainage on the site. When the pool/spa area was constructed, it was developed with a series of
retaining walls and walkways that will be demolished as part of the proposed project. The demolition will
result in slight alterations of the grades, but the grades will be gradual and are significantly less than 18%.
As proposed, the project complies with this standard.
2. No part of the project shall impact, disturb or be situated in a bluff line setback area as defined by this
chapter, whether on the same parcel or on an abutting parcel of land.
Staff Comments: As shown on the attached maps, the property is located within the MRCCA overlay
district, but the site and its current improvements are setback outside of the Bluff Impact Zone (BIZ) and
are not within proximity to the Bluff Line. The proposed improvements will generally be located in the
same area as the existing pool/spa improvements and will not encroach further into the yard. As proposed,
the project complies with this standard.
3. The proposed project shall not expand the enclosed area of the principal or accessory structures by more
than two hundred (200) square feet.
Staff Comments: The proposed project does not alter the existing principal structure on site. The project
complies with this standard.
4. The proposed project shall not increase the height of any existing structure.
Staff Comments: The proposed project is to demolish the existing pool, spa and pool deck and to replace
it with play equipment, replacement/modified retaining walls, walkways and vegetation. The proposed
project will not increase the height of any structures on the site. As proposed, the project complies with
this standard.
5. The proposed project shall be in compliance with all other requirements of this Chapter, and any other
applicable regulations.
City Council | Tuesday, June 20, 2023 | Page 14 of 225
Staff Comment: The proposed project, including associated grading and restoration activities are subject
to the City’s rules and regulations including the Land Disturbance Guidelines. Staff has included a
condition that all site work must comply with the standards and all appropriate permits must be obtained.
Provided the conditions are met, the proposed project complies with this standard.
6. The proposed project shall not result in significant changes to the existing finished grade.
Staff Comment: The proposed project is to demolish the existing pool, spa, pool deck, retaining walls and
walkways and replace the existing improvements with a new play area, retaining walls, and walkways.
The finished grade of the improvements will alter the topography slightly to improve drainage patterns on
the site. The proposed conditions will improve the grades on the site and are beneficial to the surrounding
properties and vegetation. As proposed, the project complies with this standard.
7. The proposed project areas shall include native vegetation.
Staff Comments: As described in the Letter of Intent, the Applicant is proposing to expand the gardens on
the site and to introduce a pollinator path that will be adjacent to the existing Prairie Garden onsite. The
pond area identified will also be converted to assist with onsite drainage and will likely become a rain
garden. As proposed, the project complies with this standard.
INTERAGENCY REVIEW
The MRCCA Permit application and site plan of this property were submitted to the Department of Natural
Resources and National Park Service for review and comment on June 12, 2023. Both agencies had no comments
or objections regarding the proposed project.
RECOMMENDATION
Based on staff’s interpretation of the intent of the Minor Development provisions of Title 12-3-1, the scope of the
project does not require Planning Commission review or a public hearing; and therefore, may be given full
consideration and approval by the City Council.
As proposed, no adverse impacts to the Mississippi River Corridor’s bluff areas, bluff impact zone, or PCA’s are
anticipated as a result of this project. The proposed project will have minimal to no impact on the surrounding
properties or neighborhood and the project complies with the standards as described within this report. Staff
recommends the City Council approve this Administrative MRCCA Permit for the Childrens Country Day
School, 1588 Victoria Rd S, with the findings-of fact and conditions as noted in the attached resolution.
ACTION REQUIRED
Adopt RESOLUTION NO. 2023-35 APPROVING AN ADMINISTRATIVE MISSISSIPPI RIVER CORRIDOR
CRITICAL AREA MINOR DEVELOPMENT PERMIT FOR THE PROPERTY LOCATED AT 1588 Victoria
Road.
This action requires a simple majority vote.
Attachments
1) MRCCA Maps
2) Letter of Intent
3) Plan dated 6/8/23
City Council | Tuesday, June 20, 2023 | Page 15 of 225
CITY OF MENDOTA HEIGHTS
DAKOTA COUNTY, MINNESOTA
RESOLUTION 2023-35
RESOLUTION APPROVING AN ADMINISTRATIVE MISSISSIPPI RIVER
CORRIDOR CRITICAL AREA (MRCCA) MINOR DEVELOPMENT PERMIT
FOR PROPERTY LOCATED AT 1588 VICTORIA RD S
(PLANNING CASE NO. 2023-08)
WHEREAS, Gayle Johnson on behalf of the Childrens Country Day School (“Applicant)
in coordination with Ron Ettinger (“Owner”) applied for an Administrative Mississippi River
Corridor Critical Area (MRCCA) Minor Development Permit to demolish an existing pool, spa
and associated improvements and to replace such improvements with a new outdoor play area and
improvements as proposed under Planning Case No. 2023-08, at the property located at 1588
Victoria Road S., legally described in attached Exhibit A (the “Subject Property”); and
WHEREAS, the Subject Property is located within the Mississippi River Corridor Critical
Area Overlay District of the City of Mendota Heights, and the proposed project qualifies as a
Minor Development under Title 12-3-12, Subpart D of the City Code provisions for those
properties situated in the recognized MRCCA District; and
WHEREAS, the proposed project is compliant with the required conditions for exemption
from Planning Commission review and a public hearing, and can be considered and acted on
directly by the City Council; and
NOW, THEREFORE, BE IT RESOLVED by the Mendota Heights City Council that
the Administrative MRCCA Minor Development Permit for property located at 1588 Victoria
Road S. and proposed under Planning Case No. 2023-08, is hereby approved and supported by the
following finding-of-facts:
A) The project qualifies as a minor development and consideration under the
Administrative MRCCA Permit standards including in-kind replacement of certain
improvements; and
B) The proposed project poses no threat to the general health, safety and welfare of the
public, or creates any negative impacts upon the MRCCA area, adjacent bluffs,
bluff impact zones (BIZ’s), Primary Conservation Areas (PCA’s) or surrounding
properties; and
C) The proposed demolition and replacement improvements will improve drainage on
the site positively impacting adjacent property; and
D) The proposed project will be done in accordance with all requirements of the City’s
Land Disturbance Guidelines, and
City Council | Tuesday, June 20, 2023 | Page 16 of 225
Mendota Heights Res. 2023-35 Page 2 of 3
E) The proposed project meets the general purpose and intent of the Mississippi River
Corridor Critical Area Overlay District and City Code.
AND BE IT FURTHER RESOLVED by the Mendota Heights City Council that the
Administrative MRCCA Minor Development Permit as requested by the Childrens Country Day
School for the property located at 1588 Victoria Road, and as presented under Planning Case No.
2023-08, is further hereby approved with the following conditions of approval:
1. A building permit must be submitted to the city for review and approval prior to
any construction work commencing on the subject property.
2. The landscape plan as described in the Letter of Intent shall be planted and installed
as part of the project.
3. All required erosion and sedimentation measures will be put in place prior to and
during grading and construction work activities.
4. All disturbed areas impacted by new grading or construction work on the subject
property shall be completely repaired and restored in a timely and expedited
manner.
5. All grading and construction activity must be in compliance with applicable federal,
state, and local regulations and codes, as well as in compliance with the City’s Land
Disturbance Guidance Document.
6. All work on site will only be performed between the hours of 7:00 AM and 8:00
PM Monday through Friday; 9:00 AM to 5:00 PM weekends.
Adopted by the City Council of the City of Mendota Heights this 20th day of June, 2023.
CITY COUNCIL
CITY OF MENDOTA HEIGHTS
________________________________
Stephanie B. Levine, Mayor
ATTEST:
________________________________
Christine Lusian, City Clerk
Drafted by: City of Mendota Heights
1101 Victoria Curve
Mendota Heights, MN 55118
City Council | Tuesday, June 20, 2023 | Page 17 of 225
Mendota Heights Res. 2023-35 Page 3 of 3
EXHIBIT A
Address: 1588 Victoria Road, Mendota Heights, Minnesota 55118
PID: 270230005020
Legal Description: PT OF SW ¼ OF NE ¼ LYING SW OF STH #35-E SUBJ TO VICTORIA
ST & SUBJ TO PAR 8A DAKOTA CO R/W MAP NO 119
Drafted by: City of Mendota Heights
1101 Victoria Curve
Mendota Heights, MN 55118
City Council | Tuesday, June 20, 2023 | Page 18 of 225
City Council | Tuesday, June 20, 2023 | Page 19 of 225
1588 Victoria Rd
Land Use/Land
Development
MRCCA Bluff Impact
Zones
Mississippi River
Corridor Critical Area
(MRCCA) Districts
DISTRICT
CA-RN
CA-ROS
CA-RTC
CA-SR
CA-UC
CA-UM
Water
Property Information
Addresses
Parcel Lines
Tax Parcels
Disclaimer: Map and parcel data are believed to be accurate, but accuracy is not guaranteed.
This is not a legal document and should not be substituted for a title search,appraisal, survey, or
for zoning verification.
Map Scale
1 inch = 150 feet
6/12/2023
City Council | Tuesday, June 20, 2023 | Page 20 of 225
Mississippi River Corridor Critical Area
MRCCA Boundary
City and Township Boundaries
Parcels
MRCCA Primary Conservation Areas
Natural Drainage Routes
Shore Impact Zones
Native Plant Communities
Significant Existing Vegetative Stands
Bluff Impact Zone
Wetlands
100 Year Floodplain
River
Legend
Zoom to
Search result
1588 Victoria Rd S, Saint Paul,
Minnesota, 55118
City Council | Tuesday, June 20, 2023 | Page 21 of 225
Children’s Country Day School
1588 South Victoria Road Mendota Heights MN 55118
PHONE: 651-454-4000 FAX: 651-454-7499 WEB: www.childrenscountryday.org
Letter of Intent:
As noted in the Project Description from Southview, we are
looking to eliminate our decades-old pools and surrounding
retaining wall. The failing retaining wall is creating safety
concerns. In addition, this failure has led to damage to our pool
pipes and pool deck, creating substantial maintenance problems
with leakage concerns. In addition, we have ground drainage
issues that we look to get corrected with the removal of the pool
area and a small man-made pond.
We hope to remove this unusable and failing area and are
looking to create an outdoor space that can be utilized and
enjoyed by our students year-round. This includes both a hard
surface area and an expansion of our variety of gardens. We
look to keep the footprint of greenspace with this change,
including our current trees and grassy areas. Our intentions
(within our current pond area) are to add a pollinator path in
addition to other plantings. This will be adjacent to our Prairie
Garden. Finally, we are also looking to have the current pond
area as a space where the water runoff can be diverted to, most
likely being a rain garden.
As a nature-based and environmentally friendly school, we
value our outdoor spaces. Providing children with unique and
interactive activities is a focus of our program and we look
forward to this new area.
City Council | Tuesday, June 20, 2023 | Page 22 of 225
Request for City Council Action
DATE: June 20, 2023
TO: Mayor Levine and City Council; City Administrator Jacobson
FROM: Jennifer Haskamp, AICP, Consulting Planning Services
SUBJECT: Resolution No. 2023-36 Approving an Administrative MRCCA Minor Development Permit for
1155 Kingsley Court [Planning Case No. 2023-09]
INTRODUCTION
Cynthia Ballard is requesting approval of an Administrative Mississippi River Corridor Critical Area (MRCCA)
Permit for the property located at 1155 Kingsley Court.
BACKGROUND
The Applicant and Owner, Cynthia Ballard, is requesting approval of the MRCCA Minor Development Permit to
replace and expand their existing deck on the subject property. The proposed replacement and expansion is at the
same elevation and in the same location as the existing deck.
The subject property is located in the R-1 Residential Zoning district; and is situated within the Mississippi River
Corridor Critical Area overlay district. According to the city’s MRCCA Mapping of this area, the subject property
is located in the SR-Separated by River District. The MRCCA Map of the subject property (appended to this
council report) shows the subject property within the overlay district, but setback approximately 200-feet from
the Bluff Impact Zone (BIZ) northwest of the subject property. The proposed replacement and expansion of the
deck will not impact the bluff line or encroach into the BIZ.
The MRCCA Mapping system also identifies Primary Conservation Areas (PCA) within proximity to the site,
which include protected areas such as established Significant Existing Vegetative Stands or Native Plant
Communities on properties inside the MRCCA district. As shown on the attached map, the BIZ and significant
vegetative stands are identified northwest of the subject property and the property is setback more than 230-feet
from the designated area. The proposed deck replacement and expansion will not adversely impact the identified
PCA.
ANALYSIS
Pursuant to City Code Section 12-3-12, “no building permit, zoning approval, or subdivision approval shall be
issued for any action or development located in an area covered by this chapter (Mississippi River Corridor
Critical Area) until a site plan has been prepared and approved in accordance with the provisions of this chapter.”
Subpart D. of this section provides for “Minor Developments”, that are described as minor improvements to a
single-family property that can be approved directly by the City Council, without Planning Commission review
5eCity Council | Tuesday, June 20, 2023 | Page 23 of 225
or recommendation, and without a public hearing, but only if the minor project and plans conform to the general
standards specified within the section. The standards established for Minor Developments are as follows:
Small building additions of 200 sq. ft. or less; decks; fences; driveways; walkways; stairs; open patios or
outdoor sitting areas; storage sheds, gazebos and chicken coops; retaining walls (2’ or less in height);
landscaping materials and gardens, and similar structures.
All administrative approved projects must meet or comply with the following conditions. Staff review comments
are provided after each condition:
1. No part of the subject property shall have slopes of greater than eighteen percent (18%).
Staff Comments: The proposed deck replacement and expansion is located on the northeast side of the
home and is affixed to the home in generally the same location as the existing deck. Staff confirmed on
available GIS and LiDAR data that the proposed expansion is located in an area that is generally flat and
has already been developed with the existing deck. There are no steep slopes present surrounding the deck
or back landscape area and the grade is less than 18%. As proposed, the project complies with this
standard.
2. No part of the project shall impact, disturb or be situated in a bluff line setback area as defined by this
chapter, whether on the same parcel or on an abutting parcel of land.
Staff Comments: The subject property is located within the MRCCA overlay district, however, there are
no bluffs or bluff impact zones (BIZs) or Primary Conservation Areas (PCAs) present on the subject
property. The proposed deck will replace an existing deck in generally the same location, with a slight
increase in size. The project, as proposed, will not adversely impact any abutting or neighboring property.
As proposed, the project complies with this standard.
3. The proposed project shall not expand the enclosed area of the principal or accessory structures by more
than two hundred (200) square feet.
Staff Comments: The proposed project does not alter the existing principal structure on site. The proposed
deck expansion is open and increases the deck area by approximately 130 SF. The project complies with
this standard.
4. The proposed project shall not increase the height of any existing structure.
Staff Comments: The proposed project is to replace the existing deck with a new slightly larger deck. The
height of the deck (elevation) is not proposed to change as part of the project. The proposed project
complies with this standard.
5. The proposed project shall be in compliance with all other requirements of this Chapter, and any other
applicable regulations.
Staff Comment: The proposed project, including associated grading and restoration activities are subject
to the City’s rules and regulations including the Land Disturbance Guidelines. Staff has included a
condition that all site work must comply with the standards and all appropriate permits must be obtained.
Provided the conditions are met, the proposed project complies with this standard.
6. The proposed project shall not result in significant changes to the existing finished grade.
Staff Comment: The proposed deck is approximately 130 SF larger than the existing deck and is proposed
to be constructed at the elevation as the existing deck. The orientation and location of the deck is generally
located in the same location and will be affixed (or floated) to the structure similarly. The elevation of the
City Council | Tuesday, June 20, 2023 | Page 24 of 225
deck and where it is tied (or floated) into the structure and foundation are not proposed to change
significantly. As proposed, the project complies with this standard.
7. The proposed project areas shall include native vegetation.
Staff Comments: As shown on the site plan, the proposed project includes the establishment and planting
of new vegetation. As shown, two Fox Valley River Birch, 8 Dogwoods, 3 Swamp Milkweed as well as
several other plantings are proposed. As shown, the project complies with this standard.
INTERAGENCY REVIEW
The MRCCA Permit application and site plan for this project were submitted to the Department of Natural
Resources and National Park Service for review and comment on June 12, 2023. Both agencies had no comments
or objections regarding the proposed project.
RECOMMENDATION
Based on staff’s interpretation of the intent of the Minor Development provisions of Title 12-3-1, the scope of the
project does not require Planning Commission review or a public hearing; and therefore, may be given full
consideration and approval by the City Council.
As proposed, no adverse impacts to the Mississippi River Corridor’s bluff areas, bluff impact zone, or PCA’s are
anticipated as a result of this project. The proposed project will have minimal to no impact on the surrounding
properties or neighborhood and the project complies with the standards described within this report. Staff
recommends the City Council approve this Administrative MRCCA Permit for Cynthia Ballard, 1155 Kingsley
Court, with the findings-of fact and conditions as noted in the attached resolution.
ACTION REQUIRED
Adopt RESOLUTION NO. 2023-36 APPROVING AN ADMINISTRATIVE MISSISSIPPI RIVER CORRIDOR
CRITICAL AREA MINOR DEVELOPMENT PERMIT FOR THE PROPERTY LOCATED AT 1155 Kingsley
Court.
This action requires a simple majority vote.
Attachments
1) MRCCA Maps
2) Plan dated 4/26/23
City Council | Tuesday, June 20, 2023 | Page 25 of 225
CITY OF MENDOTA HEIGHTS
DAKOTA COUNTY, MINNESOTA
RESOLUTION 2023-36
RESOLUTION APPROVING AN ADMINISTRATIVE MISSISSIPPI RIVER
CORRIDOR CRITICAL AREA (MRCCA) MINOR DEVELOPMENT PERMIT
FOR PROPERTY LOCATED AT 1155 KINGSLEY CT
(PLANNING CASE NO. 2023-09)
WHEREAS, Cynthia Ballard (the “Applicant” and “Owner”) applied for an
Administrative Mississippi River Corridor Critical Area (MRCCA) Minor Development Permit in
order to replace and reconstruct an existing deck on their single-family attached dwelling structure,
as proposed under Planning Case No. 2023-09, at the property located at 1155 Kingsley Court,
legally described in attached Exhibit A (the “Subject Property”); and
WHEREAS, the Subject Property is located within the Mississippi River Corridor Critical
Area Overlay District of the City of Mendota Heights, and the proposed project qualifies as a
Minor Development under Title 12-3-12, Subpart D of the City Code provisions for those
properties situated in the recognized MRCCA District; and
WHEREAS, the proposed project is compliant with the required conditions for exemption
from Planning Commission review and a public hearing, and can be considered and acted on
directly by the City Council; and
NOW, THEREFORE, BE IT RESOLVED by the Mendota Heights City Council that
the Administrative MRCCA Minor Development Permit for property located at 1155 Kingsley
Court, and proposed under Planning Case No. 2023-09, is hereby approved and supported by the
following finding-of-facts:
A) The project qualifies as a minor development and consideration under the
Administrative MRCCA Permit standards because it is a replacement deck and is a
minor expansion; and
B) The proposed project poses no threat to the general health, safety and welfare of the
public, or creates any negative impacts upon the MRCCA area, adjacent bluffs,
bluff impact zones (BIZ’s), Primary Conservation Areas (PCA’s) or surrounding
properties; and
C) The proposed deck expansion will not impact or change any grades or drainage
ways on the subject property; and
D) The proposed project will be done in accordance with all requirements of the City’s
Land Disturbance Guidelines, and
City Council | Tuesday, June 20, 2023 | Page 26 of 225
Mendota Heights Res. 2023-36 Page 2 of 3
E) The proposed project meets the general purpose and intent of the Mississippi River
Corridor Critical Area Overlay District and City Code.
AND BE IT FURTHER RESOLVED by the Mendota Heights City Council that the
Administrative MRCCA Minor Development Permit as requested by Cynthia Ballard and for the
property located at 1155 Kingsley Court, and as presented under Planning Case No. 2023-09, is
further hereby approved with the following conditions of approval:
1. If required, a building permit must be submitted to the city for review and approval
prior to any construction work commencing on the subject property.
2. All new trees or vegetation to be installed shall comply with the planting plan
shown on the submitted site plan.
3. All required erosion and sedimentation measures will be put in place prior to and
during grading and construction work activities.
4. All disturbed areas impacted by new grading or construction work on the subject
property shall be completely repaired and restored in a timely and expedited
manner.
5. All grading and construction activity must be in compliance with applicable federal,
state, and local regulations and codes, as well as in compliance with the City’s Land
Disturbance Guidance Document.
6. All work on site will only be performed between the hours of 7:00 AM and 8:00
PM Monday through Friday; 9:00 AM to 5:00 PM weekends.
Adopted by the City Council of the City of Mendota Heights this 20th day of June, 2023.
CITY COUNCIL
CITY OF MENDOTA HEIGHTS
________________________________
Stephanie B. Levine, Mayor
ATTEST:
________________________________
Christine Lusian, City Clerk
Drafted by: City of Mendota Heights
1101 Victoria Curve
Mendota Heights, MN 55118
City Council | Tuesday, June 20, 2023 | Page 27 of 225
Mendota Heights Res. 2023-36 Page 3 of 3
EXHIBIT A
Address: 1155 Kingsley Court, Mendota Heights, Minnesota 55118
PID: 274190001230
Legal Description: LOT 23 BLK 1 & INTEREST ATTRIBUTABLE TO COMMON AREA
BEING LOT 1 BLK 1 SUBJ TO CIC #602
Drafted by: City of Mendota Heights
1101 Victoria Curve
Mendota Heights, MN 55118
City Council | Tuesday, June 20, 2023 | Page 28 of 225
City Council | Tuesday, June 20, 2023 | Page 29 of 225
City Council | Tuesday, June 20, 2023 | Page 30 of 225
1155 Kingsley Ct
Land Use/Land
Development
MRCCA Bluff Impact
Zones
Mississippi River
Corridor Critical Area
(MRCCA) Districts
DISTRICT
CA-RN
CA-ROS
CA-RTC
CA-SR
CA-UC
CA-UM
Water
Property Information
Addresses
Parcel Lines
Tax Parcels
Disclaimer: Map and parcel data are believed to be accurate, but accuracy is not guaranteed.
This is not a legal document and should not be substituted for a title search,appraisal, survey, or
for zoning verification.
Map Scale
1 inch = 150 feet
6/12/2023
City Council | Tuesday, June 20, 2023 | Page 31 of 225
Mississippi River Corridor Critical Area
MRCCA Boundary
City and Township Boundaries
Parcels
MRCCA Primary Conservation Areas
Natural Drainage Routes
Shore Impact Zones
Native Plant Communities
Significant Existing Vegetative Stands
Bluff Impact Zone
Wetlands
100 Year Floodplain
River
Legend
Zoom to
Search result (1 of 2)
1155 Kingsley Ct, Saint Paul,
Minnesota, 55118
City Council | Tuesday, June 20, 2023 | Page 32 of 225
Request for City Council Action
DATE: June 20, 2023
TO: Mayor Levine and City Council; City Administrator Jacobson
FROM: Jennifer Haskamp, AICP, Consulting Planning Services
SUBJECT: Resolution No. 2023-37 Approving an Administrative MRCCA Minor Development Permit for
1164 Kingsley Court [Planning Case No. 2023-10]
INTRODUCTION
Michael and Susan Ste. Marie are requesting approval of an Administrative Mississippi River Corridor Critical
Area (MRCCA) Permit for the property located at 1164 Kingsley Ct.
BACKGROUND
The Applicant and Owners, Michael and Susan Ste. Marie are requesting approval of the MRCCA Minor
Development Permit to replace and expand their existing deck on the subject property. The proposed replacement
and expansion are at the same elevation and in the same location as the existing deck.
The subject property is located in the R-1 Residential Zoning district; and is situated within the Mississippi River
Corridor Critical Area overlay district. According to the city’s MRCCA Mapping of this area, the subject property
is located in the SR-Separated by River District. The MRCCA Map of the subject property (appended to this
council report) shows the subject property within the overlay district, but setback approximately 190-feet from
the Bluff Impact Zone (BIZ) northwest of the subject property. The proposed replacement and expansion of the
deck will not impact the bluff line or encroach into the BIZ.
The MRCCA Mapping system also identifies Primary Conservation Areas (PCA) within proximity to the site,
which include protected areas such as established Significant Existing Vegetative Stands or Native Plant
Communities on properties inside the MRCCA district. As shown on the attached map, the BIZ and significant
vegetative stands are identified northwest of the subject property and the property is setback more than 210-feet
from the designated area. The proposed deck replacement and expansion will not adversely impact the identified
PCA.
ANALYSIS
Pursuant to City Code Section 12-3-12, “no building permit, zoning approval, or subdivision approval shall be
issued for any action or development located in an area covered by this chapter (Mississippi River Corridor
Critical Area) until a site plan has been prepared and approved in accordance with the provisions of this chapter.”
Subpart D. of this section provides for “Minor Developments”, that are described as minor improvements to a
single-family property that can be approved directly by the City Council, without Planning Commission review
5fCity Council | Tuesday, June 20, 2023 | Page 33 of 225
or recommendation, and without a public hearing, but only if the minor project and plans conform to the general
standards specified within the section. The standards established for Minor Developments are as follows:
Small building additions of 200 sq. ft. or less; decks; fences; driveways; walkways; stairs; open patios or
outdoor sitting areas; storage sheds, gazebos and chicken coops; retaining walls (2’ or less in height);
landscaping materials and gardens, and similar structures.
All administrative approved projects must meet or comply with the following conditions. Staff review comments
are provided after each condition:
1. No part of the subject property shall have slopes of greater than eighteen percent (18%).
Staff Comments: The proposed deck replacement and expansion is located on the south side of the home
and is affixed to the home in generally the same location as the existing deck. Staff confirmed on available
GIS and LiDAR data that the proposed expansion is located in an area that is generally flat and has already
been developed with the existing deck. There are no steep slopes present surrounding the deck or back
landscape area and the grade is less than 18%. As proposed, the project complies with this standard.
2. No part of the project shall impact, disturb or be situated in a bluff line setback area as defined by this
chapter, whether on the same parcel or on an abutting parcel of land.
Staff Comments: The subject property is located within the MRCCA overlay district, however, there are
no bluffs or bluff impact zones (BIZs) or Primary Conservation Areas (PCAs) present on the subject
property. The proposed deck will replace an existing deck in generally the same location, with a slight
increase in size. The project, as proposed, will not adversely impact any abutting or neighboring property.
As proposed, the project complies with this standard.
3. The proposed project shall not expand the enclosed area of the principal or accessory structures by more
than two hundred (200) square feet.
Staff Comments: The proposed project does not alter the existing principal structure on site. The project
complies with this standard.
4. The proposed project shall not increase the height of any existing structure.
Staff Comments: The proposed project is to replace the existing deck with a new slightly larger deck. The
height of the deck (elevation) is not proposed change as part of the project. The proposed project complies
with this standard.
5. The proposed project shall be in compliance with all other requirements of this Chapter, and any other
applicable regulations.
Staff Comment: The proposed project, including associated grading and restoration activities are subject
to the City’s rules and regulations including the Land Disturbance Guidelines. Staff has included a
condition that all site work must comply with the standards and all appropriate permits must be obtained.
Provided the conditions are met, the proposed project complies with this standard.
6. The proposed project shall not result in significant changes to the existing finished grade.
Staff Comment: The proposed deck is approximately 240 SF larger than the existing deck and is proposed
to be constructed at the same elevation as the existing deck. The orientation and location of the deck is
generally located in the same location and will be affixed (or floating) to the structure similarly. The
elevation of the deck and where it is tied into/or abuts the structure and foundation are not proposed to
change significantly. As proposed, the project complies with this standard.
City Council | Tuesday, June 20, 2023 | Page 34 of 225
7. The proposed project areas shall include native vegetation.
Staff Comments: As described in the narrative, all existing vegetation (including native) is to remain,
addition arborvitae will be planted as additional screening. As proposed, no impact to existing vegetation
is proposed.
INTERAGENCY REVIEW
The MRCCA Permit application, survey, and site plan for this property were submitted to the Department of
Natural Resources and National Park Service for review and comment on June 12, 2023. Both agencies had no
comments or objections regarding the proposed project.
RECOMMENDATION
Based on staff’s interpretation of the intent of the Minor Development provisions of Title 12-3-1, the scope of the
project does not require Planning Commission review or a public hearing; and therefore, may be given full
consideration and approval by the City Council.
As proposed, no adverse impacts to the Mississippi River Corridor’s bluff areas, bluff impact zone, or PCA’s are
anticipated as a result of this project. The proposed project will have minimal to no impact on the surrounding
properties or neighborhood and the project complies with the standards as described within this report. Staff
recommends the City Council approve this Administrative MRCCA Permit for Michael and Susan Ste. Michael,
1164 Kingsley Court, with the findings-of fact and conditions as noted in the attached resolution.
ACTION REQUIRED
Adopt RESOLUTION NO. 2023-37 APPROVING AN ADMINISTRATIVE MISSISSIPPI RIVER CORRIDOR
CRITICAL AREA MINOR DEVELOPMENT PERMIT FOR THE PROPERTY LOCATED AT 1164 Kingsley
Court.
This action requires a simple majority vote.
Attachments
1) MRCCA Maps
2) Plan dated 2023
City Council | Tuesday, June 20, 2023 | Page 35 of 225
CITY OF MENDOTA HEIGHTS
DAKOTA COUNTY, MINNESOTA
RESOLUTION 2023-37
RESOLUTION APPROVING AN ADMINISTRATIVE MISSISSIPPI RIVER
CORRIDOR CRITICAL AREA (MRCCA) MINOR DEVELOPMENT PERMIT
FOR PROPERTY LOCATED AT 1164 KINGSLEY CT
(PLANNING CASE NO. 2023-10)
WHEREAS, Michael and Susan Ste. Marie (the “Applicant” and “Owner”) applied for
an Administrative Mississippi River Corridor Critical Area (MRCCA) Minor Development Permit
in order to replace and reconstruct an existing deck on their single-family attached dwelling
structure, as proposed under Planning Case No. 2023-10, at the property located at 1164 Kingsley
Court, legally described in attached Exhibit A (the “Subject Property”); and
WHEREAS, the Subject Property is located within the Mississippi River Corridor Critical
Area Overlay District of the City of Mendota Heights, and the proposed project qualifies as a
Minor Development under Title 12-3-12, Subpart D of the City Code provisions for those
properties situated in the recognized MRCCA District; and
WHEREAS, the proposed project is compliant with the required conditions for exemption
from Planning Commission review and a public hearing, and can be considered and acted on
directly by the City Council; and
NOW, THEREFORE, BE IT RESOLVED by the Mendota Heights City Council that
the Administrative MRCCA Minor Development Permit for property located at 1164 Kingsley
Court, and proposed under Planning Case No. 2023-10, is hereby approved and supported by the
following finding-of-facts:
A) The project qualifies as a minor development and consideration under the
Administrative MRCCA Permit standards because it is a replacement deck and is a
minor expansion; and
B) The proposed project poses no threat to the general health, safety and welfare of the
public, or creates any negative impacts upon the MRCCA area, adjacent bluffs,
bluff impact zones (BIZ’s), Primary Conservation Areas (PCA’s) or surrounding
properties; and
C) The proposed deck expansion will not impact or change any grades or drainage
ways on the subject property; and
D) The proposed project will be done in accordance with all requirements of the City’s
Land Disturbance Guidelines, and
City Council | Tuesday, June 20, 2023 | Page 36 of 225
Mendota Heights Res. 2023-37 Page 2 of 3
E)The proposed project meets the general purpose and intent of the Mississippi River
Corridor Critical Area Overlay District and City Code.
AND BE IT FURTHER RESOLVED by the Mendota Heights City Council that the
Administrative MRCCA Minor Development Permit as requested by Michael and Susan Ste.
Marie and for the property located at 1164 Kingsley Court, and as presented under Planning Case
No. 2023-10, is further hereby approved with the following conditions of approval:
1.If required, a building permit must be submitted to the city for review and approval
prior to any construction work commencing on the subject property.
2.All new trees or vegetation to be installed shall comply with the statement provided
in the letter of intent.
3.All required erosion and sedimentation measures will be put in place prior to and
during grading and construction work activities.
4.All disturbed areas impacted by new grading or construction work on the subject
property shall be completely repaired and restored in a timely and expedited
manner.
5.All grading and construction activity must be in compliance with applicable federal,
state, and local regulations and codes, as well as in compliance with the City’s Land
Disturbance Guidance Document.
6.All work on site will only be performed between the hours of 7:00 AM and 8:00
PM Monday through Friday; 9:00 AM to 5:00 PM weekends.
Adopted by the City Council of the City of Mendota Heights this 20th day of June, 2023.
CITY COUNCIL
CITY OF MENDOTA HEIGHTS
________________________________
Stephanie B. Levine, Mayor
ATTEST:
________________________________
Christine Lusian, City Clerk
Drafted by: City of Mendota Heights
1101 Victoria Curve
Mendota Heights, MN 55118
City Council | Tuesday, June 20, 2023 | Page 37 of 225
Mendota Heights Res. 2023-37 Page 3 of 3
EXHIBIT A
Address: 1164 Kingsley Court, Mendota Heights, Minnesota 55118
PID: 274190001180
Legal Description: LOT 18 BLK 1 & INTEREST ATTRIBUTABLE TO COMMON AREA
BEING LOT 1 BLK 1 SUBJ TO CIC #602
Drafted by: City of Mendota Heights
1101 Victoria Curve
Mendota Heights, MN 55118
City Council | Tuesday, June 20, 2023 | Page 38 of 225
City Council | Tuesday, June 20, 2023 | Page 39 of 225
1164 Kingsley Ct
Land Use/Land
Development
MRCCA Bluff Impact
Zones
Mississippi River
Corridor Critical Area
(MRCCA) Districts
DISTRICT
CA-RN
CA-ROS
CA-RTC
CA-SR
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City Council | Tuesday, June 20, 2023 | Page 40 of 225
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1164 Kingsley Ct, Saint Paul,
Minnesota, 55118
City Council | Tuesday, June 20, 2023 | Page 41 of 225
City Council | Tuesday, June 20, 2023 | Page 42 of 225
Request for City Council Action
DATE: June 20, 2023
TO: Mayor, City Council, and City Administrator
FROM: Meredith Lawrence, Parks and Recreation Manager
SUBJECT: Resolution 2023-38 Accept Park Bench Donation—Mary Jane Cronin
INTRODUCTION
The City Council is asked to accept a park bench donation from Mary Jane Cronin to be installed
at Ivy Hills Park.
BACKGROUND
The Park Bench Donation program was adopted in 2001. Through the program a resident may
donate $1,000 to the city to offset the costs to purchase and install a park bench. Any costs above
the donated amount are the responsibility of the city.
Mendota Heights received a park bench donation from Ms. Mary Jane Cronin to be installed at
Ivy Hills Park near the pond. A map that is attached provides a pin point of where the bench is
proposed to be installed. The bench will be south of the retaining wall near the trail.
The desired plaque language for the bench would read:
John and Mary Jane Dittberner
“Blue Skies”
(Insert 747 Plane Photo)
The City is grateful for the generosity of this financial donation.
Attachments: Plaque Proof Approved by Donor
Map of Preferred Location of Bench
BUDGET IMPACT
The $1,000 donation will be used toward the purchase and installation of a park bench. Costs
exceeding $1,000 will be drawn from the Parks Equipment/Maintenance budget.
RECOMMENDATION
5gCity Council | Tuesday, June 20, 2023 | Page 43 of 225
The Parks and Recreation Commission reviewed the Park Bench donation request including the
proposed bench’s location and plaque language at their June 13, 2023 meeting and recommended
approval of the request 6-0.
ACTION REQUIRED
If the Council concurs, it should, by motion pass RESOLUTION 2023-38, A RESOLUTION
FORMALLY ACCPETING A GIFT FOR A PARK BENCH DONATION. This action
requires a simple majority vote.
City Council | Tuesday, June 20, 2023 | Page 44 of 225
CITY OF MENDOTA HEIGHTS
DAKOTA COUNTY, MINNESOTA
RESOLUTION 2023-38
FORMALLY ACCEPTING A GIFT FOR A PARK BENCH DONATION
WHEREAS, the City of Mendota Heights desires to follow Minnesota Statute 465.03
“Gifts to Municipalities”; and
WHEREAS, the Minnesota 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 has duly considered this
matter and wish to acknowledge the civic mindedness of citizens and officially recognize their
donations.
NOW, THEREFORE, IT IS HEREBY RESOLVED, that the City Council of the City
of Mendota Heights formally accepts $1,000 for a park bench donation from Mary Jane Cronin
of Mendota Heights, Minnesota. The park bench is to be placed by the pond, south of the
retaining wall near the trail.
Adopted by the City Council of the City of Mendota Heights this 20th day of June, 2023.
CITY COUNCIL
CITY OF MENDOTA HEIGHTS
Stephanie B. Levine, Mayor
ATTEST
_________________________
Christine Lusian, City Clerk
City Council | Tuesday, June 20, 2023 | Page 45 of 225
2" X 10" PLAQUE
PLAQUE NOT TO SCALE
PLAQUE-037520C-01
6/09/2023
INTER NAL USE ONLY
PLQ ORDERED:
SO/REP:
ITEM:
QTY:
EST:
John and Mary Jane
Dittberner
“Blue Skies”
APPROVED-Exactly as provided on the proof
supplied by Dumor - No Exceptions!!
REJECTED- Clearly mark all changes.
A new proof will be provided by DuMor.
BY DATE
PHOTO TO BE DONE AS HALF TONE WITH BLACK BACKGROUND AND SILVER TONE FINISH
City Council | Tuesday, June 20, 2023 | Page 46 of 225
645
642 632 622
MAPLE PARK DR
This ima gery is co p yrighted a n d licen sed by Nea rma p US In c, which reta in so wn ership o f the ima gery. It is bein g p ro vided by Da ko ta Co un ty un der theterms o f tha t licen se. Un der tha t licen se, Da ko ta Co un ty is a llo wed top ro vide a ccess to the “Offlin e Co p y Add-On fo r Go vern men t”, o n which thisima ge services is ba sed, a t 6-in ch reso lutio n , six mo n ths a fter the ca p tureda te, p ro vided the user a ckn o wledges tha t the ima gery will be used in theirn o rma l co urse o f busin ess a n d must n o t be reso ld o r distributed fo r the
Park Bench Donation
Da te: 5/30/2023
City o fMen do taHeights050
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.
Pa rk Ben ch Lo ca tio n
City Council | Tuesday, June 20, 2023 | Page 47 of 225
City Council | Tuesday, June 20, 2023 | Page 48 of 225
Request for City Council Action
DATE: June 20, 2023
TO: Mayor, City Council and City Administrator
FROM: Meredith Lawrence, Parks and Recreation Manager
SUBJECT: Resolution 2023-31 Accepting a Donation to the Valley View Heights Park
Playground Grand Opening
INTRODUCTION
The City Council is asked to formally accept a donation which was received for the Valley View
Heights Park Playground Grand Opening for ice cream.
BACKGROUND
By state law, all donations to the City must be accepted by the City Council by means of a
resolution.
One June 8, the City hosted a grand opening event to celebrate the new playground at Valley View
Heights Park. As part of the ribbon cutting, funds were donated in order to enable an ice cream
truck onsite to provide ice cream free of cost to those in attendance at the event.
The event was well attended with over 60 park goers in attendance. Approximately 55 ice cream
bars were given out from the Mik Mart Ice Cream truck for a grand total of $241.79. This generous
donation was provided by Jimmy and Stephanie Levine.
The City is grateful for the generosity of this financial donation.
RECOMMENDATION
Staff recommends that the Mendota Heights City Council approve Resolution 2023-31.
ACTION REQUIRED
If the Council concurs, it should, by motion adopt RESOLUTION 2023-31 FORMALLY
ACKNOWLEDGING THE RECEIPT OF A DONATION TO THE VALLEY VIEW
HEIGHTS PLAYGROUND GRAND OPENING.
5hCity Council | Tuesday, June 20, 2023 | Page 49 of 225
CITY OF MENDOTA HEIGHTS
DAKOTA COUNTY, MINNESOTA
RESOLUTION 2023-31
A RESOLUTION FORMALLY ACKNOWLEDGING THE RECEIPT OF A DONATION
TO THE VALLEY VIEW HEIGHTS PARK PLAYGROUND GRAND OPENING
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 RESOLVED that the City Council of the City of
Mendota Heights hereby accepts a donation in support of the Valley View Heights Park
Playground Grand Opening:
DONOR DONATION VALUE
Jimmy and Stephanie Levine Ice Cream Giveaway $241.79
Adopted by the City Council of the City of Mendota Heights this 20th day of June 2023.
CITY COUNCIL
CITY OF MENDOTA HEIGHTS
Stephanie B. Levine, Mayor
ATTEST:
Christine Lusian, City Clerk
City Council | Tuesday, June 20, 2023 | Page 50 of 225
1
Request for City Council Action
DATE: June 20, 2023
TO: City Council
FROM: Kelly Torkelson, Assistant City Administrator
SUBJECT: City Council Chamber Technology Updates
INTRODUCTION
The audio/visual technology that is currently in the city council chambers is outdated and non-
compliant with necessary ADA standards. The following proposal provides updates to the
audio/visual technology within the council chambers.
Background
The primary purpose of this project will be to make upgrades to the city’s video displays in the
council chambers. These updates will ensure that the visual displays within the council chambers
are ADA compliant and meet the needs of the chambers. In addition to city council meetings, the
council chambers are also used for a wide variety of other meetings. The proposed technology
upgrades provide flexibility for users of the space to adapt to the various meeting formats and to
ensure that the technology services provide a professional experience for users and viewers of
the materials.
The video displays that are included in the proposal include:
•Main Display: 2x2 Monitor Wall
•Diocese display
•Presenter display
•Mobile display
•Lobby display
One of the challenges of developing technology improvements for the council chambers is the
pending discussion regarding the potential future remodel of city facilities which may include
changes to the council chambers. The updates that are recommended in this proposal meet both
the current need of the space and would be able to be adapted to alternative uses if the space was
used for other purposes in the future.
The proposal includes minimal upgrades to the audio system that have minimal cost impacts to
the project but are easily added to the project due to the upgrades required for the display
upgrades. The audio improvements prime the system for future updates and make it so that if the
council is interested in making additional updates to the audio system in the future, that the costs
5iCity Council | Tuesday, June 20, 2023 | Page 51 of 225
2
for implementation will be significantly reduced as the labor to set the stage for those
improvements will be completed in this phase of the project. The audio updates included in this
proposal are not sufficient enough to meet the state mandated requirements to allow for remote
meeting participation. The current audio system will require updates, however staff did not
include those in this proposal as the recommendation may change depending on the direction of
the city council in the discussion pertaining up renovations in the police department and city hall.
In addition to the installation of these devices, a critical part of this project is the integration of
the technology together. In addition to the displays, there are control panels that are included that
will be used to control the technology live during meetings.
City staff worked closely with staff from NDC4 on audio/visual needs for the space and sought
proposals from three different vendors for the project. The recommended vendor for the project
is Excel AV group for a total project cost of $58,650. There will be some additional ancillary
costs that are not included in this cost that the city will need to provide including the costs of
some minor electrical work.
Main Display: 2x2 Monitor Wall
Currently, the main display in the council
chambers is a projector and screen. The
projector is a challenging tool as it has poor
resolution which can make reading materials
challenging and the projector light display is
distorted by the room lights making it further
difficult to see. For these issues, it is not
recommended to replace the existing unit with
another projector. While a projector is not ideal,
the large screen did provide for a large display
for audiences. Single screen displays of comparable size are not common as the size makes it
very fragile and not in common production.
Instead of replacing the screen with a single
screen device, the proposal includes a 2x2
monitor wall that will use four narrow-edged 55 inch screens that will be synced together to form
a single image. While you will be able to see the lines between the screens, this will function to
make a larger display that better replicates the size of the existing display, but with the improved
benefits of clarity in the display.
Diocese Display
The city council has a diocese display currently which has damage to the screen and is not
synced well with meeting materials. The proposed display will increase the size of the diocese
display to a 55 inch display which will be mounted on the front of the lectern for the city council
to view presentation materials from the diocese. In addition, the system will sync this display to
display meeting materials easily viewable to the council seated at the diocese.
Presenter Display
A small display will be added onto the lectern for the presenter to view while they are presenting
to the city council. The existing lack of a display at the lectern makes it so that the presenter has
to view materials off to their side towards the large display which can make presenting more
Figure 1: Example of a 2x2 monitor wall. This image does
not reflect the actual model included in the proposal.
City Council | Tuesday, June 20, 2023 | Page 52 of 225
3
difficult. The project will include wiring to the lectern to facilitate this and the city will install a
small display not included in the project costs.
Mobile Display
In addition to the large display wall, there will be a secondary 65 inch display mounted on a
mobile cart that can be moved throughout the space to best meet the needs of any given meeting.
In addition, staff anticipate using this mobile display in the large conference room to support
meeting technology needs in that space.
Lobby Display
An additional 55 inch display will be added into the City Hall Lobby that will be able to project
meeting materials into the lobby for when there is overflow seating into the lobby. In addition,
this display will be used during the day to promote city news, events and updates for visitors to
city hall. This will be mounted on the wall in front of the Large Conference Room.
Display Layout:
This is a rough depiction of the layout of council chambers with the proposed display
improvements.
BUDGET IMPACT
The City Council budgeted $60,000 for this project which will be funded by the cable fund. The
total quoted cost of the project is $58,650 which is below budget for the project. Staff will also
City Council | Tuesday, June 20, 2023 | Page 53 of 225
4
need to complete some minor electrical work to add outlets for some of the new displays. Those
costs are not included in the proposal before the council.
RECOMMENDATION:
Staff are recommending that the city council approve proposal from Excel AV for technology
upgrades to the city council chambers for a cost of $58,650.
REQUESTED ACTION:
If the City Council agrees, to approve proposal from Excel AV for technology upgrades to the
city council chambers for a cost of $58,650.
City Council | Tuesday, June 20, 2023 | Page 54 of 225
Modified:
0Revision:
6/14/2023
System Upgrades (Recommended)
City of Mendota Heights
1101 Victoria Curve
Mendota Heights, MN 55118
651-452-1850
Presented By:
Aufderworld Corporation
2750 Niagara Lane North
Plymouth, MN 55447 USA
763-233-7700
www.aufderworld.com www.excelavgroup.com
Proposal
Kelly Torkelson
City Council | Tuesday, June 20, 2023 | Page 55 of 225
Recommended System Upgrades
Biamp Systems Parlé VBC 2500
Parlé VBC 2500 Conferencing Video Bar
1
B-Tech BT8431/B 83024200
Universal Flat Screen Wall Mount with Tilt (VESA 400)
1
Comprehensive DP8K-6PROBLK
Pro AV/IT Integrator Series DP 1.4 HBR3 8K Cable 6 feet
3
Comprehensive HD18G-12PROBLK 808447078800
Pro AV/IT Certified 18Gb 4K High Speed HDMI Cable with ProGrip 12ft Black
2
Comprehensive HD18G-15PROBLK 808447078817
Pro AV/IT Certified 18Gb 4K High Speed HDMI Cable with ProGrip 15ft Black
1
Comprehensive HD18G-6PROBLK 808447078787
Pro AV/IT Certified 18Gb 4K High Speed HDMI Cable with ProGrip 6ft Black
8
Comprehensive HD-AC10ST 808447045307
High Speed HDMI A To Mini HDMI C Cable 10ft
1
Comprehensive USB5G-AC-15PROBLK
Pro AV/IT Integrator Series USB 3.0 (3.2 Gen1) A to C 5G Cable 15ft
1
Decimator Designs MD-LX DD-LX
HDMI-SDI Bidirectional Converter
2
EXCEL AV GROUP CUSTOM WALL PLATE CUSTOM WALL PLATE SHAPE2
Excel Hardware & Labor
Labor and Materials
1
EXTRON 60-1390-03 MLC 55 RS
MediaLink Controller with RS-232 and IR Display Control
1
Aufderworld Corporation
Page 2 of 11
* Price Includes Accessories
System Upgrades (Recommended)
6/14/2023Aufderworld CorporationPresented By:
Project Name:AWC-6900Project No.:
City Council | Tuesday, June 20, 2023 | Page 56 of 225
EXTRON 70-1160-12 SMB Table Clamp Kit
SMB Table Clamp Kit for SMB 110/111T/210, Black
1
EXTRON SMB 111 70-1097-01
One Gang Surface Mount Box - Black
1
Hosa Technology HMIC-025
AUDIO CABLE XLR3M-XLR3F 25'
1
Legrand AV /Luxul Wireless Inc. AMS-2624P LW-AMS2624P
AV SERIES 26-Pt/24 PoE+ GbE Mgd Switch
1
Legrand AV/ Chief CSMP9X12 841872173467
PROXMOUNT PLATE9X12
2
Legrand AV/ Chief LTM1U 841872163277
Micro-Adjust Tilt Wall Mount Large
1
Legrand AV/ Chief PAC710 841872101750
CART & STAND SHELF
1
Legrand AV/ Chief PFCUB 841872100630
4' - 6' LFP MOBILE CART
1
Legrand AV/Middle Atlantic PD-815RA-PL 656747056383
POWER CENTER W/ANOD FACE
1
LG 65UR340C9UD
65" 3840 x 2160 UHD Commercial Lite LED backlit LCD TV - Black
1
LG Electronics 55UR340C9UD
55" Commercial LED Display
1
LG Electronics 55VM5JH-4P
55'' 500 nits FHD Slim Bezel Video Wall
1
LG Electronics 75UR340C9UD 75UR340C9UD
UHD Commercial TV with management software, scheduler and certified Crestron
Connected
1
Aufderworld Corporation
Page 3 of 11
* Price Includes Accessories
System Upgrades (Recommended)
6/14/2023Aufderworld CorporationPresented By:
Project Name:AWC-6900Project No.:
City Council | Tuesday, June 20, 2023 | Page 57 of 225
LIBERTY AV SOLUTIONS INT-USB2-50CWP INT-USB2-50CWP
USB2.0 High Speed extension with Isochronous data support up to 50m client side
with 2 port USB-A hub wall plate style
1
LIBERTY AV SOLUTIONS INT-USB2-50H INT-USB2-50H
USB 2.0 High Speed extension with Isochronous data support up to 50m - Local
only
1
QSC CORE 110f-v2
Unified Core with 24 local audio I/O channels, 128x128 total network I/O channels
with 8x8 Software-based Dante license included, USB AV bridging, dual LAN ports,
POTS and VoIP telephony, no GPIO, 16 next-generation AEC processors, 1RU.
1
QSC TSC-101-G3
Q-SYS 10.1? PoE Touch Screen Controller for In-Wall Mounting.
Color - Black only
2
QSC TSC-710t-G3
Table top mounting accessory for TSC-70-G3 and TSC-101-G3.
2
SHURE MX412D/C 042406052375
Cardioid-12" Desktop Gooseneck Condenser Microphone, Attached 10? XLR
Cable, Logic Functions, Programmable Switch and LED Indicator, Attached
Desktop Base
1
VIEWSONIC VA1655 VA1655
VA1655 15.6" LCD FHD Monitor
1
Visionary Solutions D4100 PacketAV D4100
A/V Decoder, 4K UHD over IP cinema quality ultra-low latency visually lossless
switch matrix routable, with built-in video wall functionality; POE
6
Visionary Solutions E4100 PacketAV E4100
A/V Encoder, 4K UHD over IP cinema quality ultra-low latency visually lossless
switch matrix routable, with built-in video wall functionality; POE
4
$57,870.00Recommended System Upgrades Total:
Aufderworld Corporation
Page 4 of 11
* Price Includes Accessories
System Upgrades (Recommended)
6/14/2023Aufderworld CorporationPresented By:
Project Name:AWC-6900Project No.:
City Council | Tuesday, June 20, 2023 | Page 58 of 225
Signage Player
BRIGHTSIGN LS445
Low-Cost 4K Digital Signage Player
1
Comprehensive HD18G-6PROBLK 808447078787
Pro AV/IT Certified 18Gb 4K High Speed HDMI Cable with ProGrip 6ft Black
1
Excel Hardware & Labor
Labor and Materials
1
$780.00Signage Player Total:
Aufderworld Corporation
$58,650.00Project Subtotal:
Page 5 of 11
* Price Includes Accessories
System Upgrades (Recommended)
6/14/2023Aufderworld CorporationPresented By:
Project Name:AWC-6900Project No.:
City Council | Tuesday, June 20, 2023 | Page 59 of 225
Aufderworld Corporation
Date
Kelly Torkelson Date
Aufderworld Corporation
Client:
Contractor:
$58,650.00Total Installation Price:
Project Summary
$58,650.00Grand Total:
Payment Schedule Amount Due Date
Down Payment (50%)$29,325.00
Commissioning (40%)$23,460.00
Final Payment (10%)$5,865.00
Sales tax will be added to the final invoice if applicable $0.00
Page 6 of 11
* Price Includes Accessories
System Upgrades (Recommended)
6/14/2023Aufderworld CorporationPresented By:
Project Name:AWC-6900Project No.:
City Council | Tuesday, June 20, 2023 | Page 60 of 225
Aufderworld Corporation
Scope of Work
System Description:
Recommended Video Upgrades:
Audio:
·Install (1) new audio/control processor (DSP) in OFE production rack.
o All audio will go through OFE audio splitters located in the production rack.
o Audio will be handled through current production mixers for TV production.
o All audio in the room will be processed through the new DSP.
o OFE amplifiers and speakers will be re-used – settings will be updated to best optimize audio within the room.
o Add (1) new desktop gooseneck microphone to be plugged into OFE XLR wall plate.
Video:
·Install (1) matrix video AV-over-IP switching solution. Any input will be able to be routed to any output.
o Inputs to be:
§Room PC (relocated and moved to rack)
·USB will be extended into the room for keyboard/mouse/flash drive connectivity.
§Clerk station laptop connection
§Lectern laptop connection
§OFE production video switcher at 720 @ 59.94
o Outputs to be:
§Install (1) 2x2 video wall comprised of 55” displays hung on client finished wall at the location of the current
projection screen.
·Client to provide (1) 15A quadplex outlet at display location.
·Bezel to Bezel measurement – 1.74mm
§Install (1) 75” monitor on a rolling cart.
·Install (1) all-in-one conferencing sound bar located above the display for laptop connectivity when
display is in conference room.
·Client to provide (1) 15A duplex outlet located on wall by entrance doors.
§Install (1) 65” monitor hung on client finished wall in lobby of building for overflow display.
·When the main chambers system is off, the display will change input to OFE signage.
·Display will be on timer for on/off not to exceed displays recommended settings.
·Client to provide (1) 15A duplex outlet at display location in lobby.
§Install (1) 55” display hung on OFE lectern front.
§Install (1) 15” monitor on lectern top.
§OFE production video switcher at 720 @ 59.94
Control:
·System control will be done via 2 touch panels.
o Locations
§Production room station
§Clerk station
o Controls
§System on/off
§Video switching
§Display on/off
§Volume controls
§Volume mute on/off
General:
·Use of OFE rack space located in production room.
·The system includes power conditioning and surge protection.
·Fixing/retracting of OFE projection screen is included to hide projection screen.
Signage Player:
·Install (1) digital signage player at overflow display location.
o Client to provide (1) data jack to network for player connection.
Page 7 of 11
* Price Includes Accessories
System Upgrades (Recommended)
6/14/2023Aufderworld CorporationPresented By:
Project Name:AWC-6900Project No.:
City Council | Tuesday, June 20, 2023 | Page 61 of 225
Aufderworld Corporation
o Client to provide (1) data jack to network for player connection.
·All new cabling runs will use Belden cabling, any alternate brands need to be approved by City representative.
·All new audio terminations will use Neutrik connectors, any alternate brands need to be approved by City representative.
·All new video cable terminations will use Winchester/Kings connectors, any alternate brands need to be approved by City
·representative.
·Aufderworld/ExcelAV will verify proper grounding on all equipment.
·Video displays will be properly aligned and free from distortion.
·Cabling and loudspeakers will be tested for proper polarity.
·Audio will be free of distortion, hums, buzzes, or pops.
o Aufderworld/ExcelAV is not responsible for any failure of re-used OFE equipment if it is the cause of interference in the
audio system. The OFE amplifier and speakers are being re-used at the request of the client.
·Loudspeaker systems will be tested and equalized to provide uniform frequency response.
·Control system programs will be tested for proper system operation
·Documentation:
o Preliminary Shop Drawings & Approval Submittals
o Detailed Installation Notes
o As-Built Drawings & Documentation printed and in PDF file
o IP Workbook for all AV Equipment, including login information.
Page 8 of 11
* Price Includes Accessories
System Upgrades (Recommended)
6/14/2023Aufderworld CorporationPresented By:
Project Name:AWC-6900Project No.:
City Council | Tuesday, June 20, 2023 | Page 62 of 225
Aufderworld Corporation
Terms and Conditions
The following terms and conditions shall apply to each order for products and services of Aufderworld Corporation (AWC) and Excel AV Group
which is an AWC company and shall constitute the entire agreement between the parties. The terms and condition may not be varied, and no
modification or addition shall be of any force or effect unless specifically accepted by AWC in writing. Acceptance of orders which contain
additional or different conditions of purchase printed on the order or other form shall not binding unless specifically agreed to by AWC in writing
by an authorized representative of Aufderworld Corporation. Conflicting terms and conditions between this document and a Client’s purchase
order, acceptance, or other form, THESE TERMS AND CONDITIONS SHALL SUPERSEDE AND GOVERN. This agreement shall be governed
by laws of the state of Minnesota. Any disputes arising under this agreement shall be determined by arbitration conducted in accordance with
the American Arbitration Association Expedited Rules for Commercial Arbitration in Minneapolis, Minnesota.
1.Pricing.Upon receipt of signed contract or purchase order AWC will supply products and/or services at price stated in bid/contract/quote.
Pricing is good for (90) days from date of bid with exception of items which are no longer commercially available due to end of sale
designation by manufacturers. If Client signs contract and/or provides purchase order after 90 days from date of bid AWC reserves the right
to revise pricing resulting from increase in cost to AWC from its’ suppliers. Client shall pay any extra costs incurred by AWC as a result of
changes or modifications to specifications by Client.
2.Down payment and Payment.Unless other terms are agreed to in writing, Client shall pay 50% of the total contract price to initiate project
activities. The final 50% will be invoiced upon completion of installation and commissioning of system and will be Net (30). Final invoice will
include all change orders resulting from scope changes and product additions. After the Net (30) date AWC reserves the right to charge a
late fee of $50.00 and 18% of outstanding balance. Payment for product only sales are due upon receipt.
3.Lease Rates.Client shall be responsible for lease payments if system is leased. Payments will be based on lease rates at the time of
purchase. Payment may vary depending on prevailing interest rates, terms, and deposits.
4.Cancellation.Client may not cancel or revise any order accepted by AWC without prior written consent of AWC. If an order is cancelled
following signed approval, there shall be a re-stocking fee equal to 20% of the total order, plus any expenses already incurred by AWC.
5.Change Orders. Equipment, materials, or labor needed outside of the scope of this agreement or resulting from unforeseen circumstances
out of the control of AWC will be submitted as a change order to the client’s representative (primary project contact). Aufderworld Corporation
assumes this contact is authorized to approve such work and will receive the appropriate approvals within the client’s organization to
authorize all additional spend. Approval will be needed prior to procurement by AWC.
6.Scope of Work Changes. Changes of scope requested by Client, including additional requirements or restrictions placed on AWC by Client
will be added to the contract/project price. When AWC becomes aware of the nature and impact of the change request a change order will
be submitted for review and approval by Client. Additional work or equipment purchases will note resume until Client approves change order
in writing.
7.Warranty. Products sold by AWC carry their respective manufacturer’s warranty. Installation performed by AWC or one of its subcontractors
is warrantied to be free from workmanship defects for a period of one year. Owner provided equipment warranties are the responsibility of
owner and not covered by AWC.
8.Access to Premises and worksite labor requirements. Client will provide prompt and timely access to installation areas based on an agreed
upon schedule. Any changes in schedule resulting in added labor or shipping expenses to AWC will be billed as a change order. Labor is bid at
non-union rates and normal business hours. Any changes to schedule resulting in off hour, weekend, or holiday work or requirements for union
labor will also be billed as change order.
9.Electrical. All electrical will be provided by owner/Client unless requested as part of bid under special arrangements. All electrical needs for
AWC systems will be specified on electrical or architectural drawings by AWC Engineering and/or Project Management teams. Installation of
Satellite, Audio, Video, and lighting systems is dependent on electrical to be completed. Any delays in electrical work will result in delays of AWC
systems being installed. All circuits for AV and lighting to be derived from the same subpanel and reference the same ground and neutral bus.
All electrical to be performed in accordance with NEC and local electrical codes (AHJ).
10.Low Voltage Cabling. Low voltage cabling that is not included in AWCs scope for projects must be completed using the specifications provided
by AWC Engineering/Project Management. The specifications will be provided for cable type, location of drops and quantities. Preference is to
provide the locations of drops on architectural drawings to ensure proper installation. All conduit, core drilling, firewall penetrations, and concrete
sawing to be performed by electrical contractor or general contractor.
11.Construction. Construction activities provided by client or client hired general contractor. AWC will need the GC to provide backer board or
other special mounting requirements for televisions, speakers, and other heavy equipment like projector and projector screens. AWC will
provide specific requirements to the GC in format they request.
Page 9 of 11
* Price Includes Accessories
System Upgrades (Recommended)
6/14/2023Aufderworld CorporationPresented By:
Project Name:AWC-6900Project No.:
City Council | Tuesday, June 20, 2023 | Page 63 of 225
Aufderworld Corporation
12.Network.Components of our satellite distribution systems are designed to be integrated into an existing local area network. Aufderworld
Corporation will work with the property’s IT department to integrate these components. Customer agrees that cooperation will be given by their IT
department in achieving integration with the newly installed system by AWC. Where necessary, AWC will install a closed audio, video, and
lighting system network. This network will not reside on any client or existing network infrastructure unless otherwise specified by Client. AWC
Engineers will work with client’s IT department to integrate all systems needing connection to existing client network and all networks will be
managed by client. Client will be responsible to provide all data network drops specified by AWC Engineering on construction drawings unless
AWC is contracted to provide. Client is also responsible to provide all data networking information to ensure a successful integration to AWC
installed systems where necessary including but not limited to IP address information, phone numbers, email accounts, and network credentials.
It is assumed that any existing systems (Lighting, Shades, HVAC, Audiovisual, and Control) that are to be integrated with new system will be
readily available with the current implemented version of source code. If original programming code cannot be provided AWC will provide a
change order for additional engineering time.
13.Owner Furnished Equipment (OFE). Performance and maintenance of OFE is responsibility of Client and AWC assumes existing equipment is
in good working condition currently. AWC is not responsible for broken or non-functional OFE and any repair or replacement of these items that
may be necessary will result in additional cost to Client. AWC is not responsible for unused OFE or for disposal of OFE unless prior agreement
has been made. AWC does not guarantee OFE will be compatible with all new systems being installed.
14.Delivery/Installation.Aufderworld Corporation shall not be responsible for any reasonable delays in delivery or installation due to strikes,
accidents, natural disasters, pandemics, or delays beyond the control of Aufderworld Corporation. Any delivery schedule which AWC may
provide to the Client represents a good faith estimate and shall not bind AWC to anything more than its reasonable efforts to meet such
estimates. Any requests from Client for expedited freight will be billed as a change order.
15.Training. A single system training will be performed by AWC Engineering staff for up to (3) individuals designated by Client. Training for
additional people will be the responsibility of client. Training to be done during normal business hours unless specified otherwise in contract.
Optional off hours training will be billed at higher rate. Standard training is to cover standard operation and main function of installed system
and is not intended to cover or explore every possible variable, nor is it training on AV or lighting theory and design. Advanced and
customized training can be provided at an additional cost.
16.Compliances/System.All local, national, and state code compliance, permissions, fees, permits, approvals, etc. are responsibility of Client
unless otherwise stated.
17.Insurance/Risk of Loss.Client shall assume risk of loss of equipment sold under this agreement upon date of equipment delivery by
Aufderworld Corporation; and Client shall assume risk of loss to improvements made by Aufderworld Corporation in the form of equipment
installation, after improvements are made and installed and the entire system is fully operational for thirty (30) consecutive days. Client shall
maintain appropriate insurance coverage to cover risks assumed by Client under these terms and conditions.
18.Insurance. Aufderworld Corporation shall maintain workers compensation coverage and public liability insurance to cover its activities under
this agreement.
19.Applicable Taxes.Clients outside the State of Minnesota are responsible for all applicable taxes.
20.Tax Exempt Status.Organizations with tax exempt status must supply Aufderworld Corporation with proof of exemption.
21.Confidentiality.All system design specifications and materials contained herein remains property of Aufderworld Corporation. Confidential
proposal and enclosures are intended for recipient only.
22.Proprietary.This proposal contains trade secrets and confidential proprietary design information of Aufderworld Corporation. Review of this
proposal constitutes agreement not to disclose its contents to any other party except with the approval of Aufderworld Corporation.
23.Hold Harmless.The client agrees that Aufderworld Corporation is to recommend design standards, systems, policies, procedures, vendors,
devices, etc. that are reasonable in nature, and the recommendations or lack of recommendations will not be construed as errors or
omissions of Aufderworld Corporation.
24.Exclusion.Aufderworld Corporation makes no warranty or claim of functionality for designs or equipment not provided by Aufderworld
Corporation. If any modifications, corrections, or revisions to the system are required, Aufderworld Corporation will provide solutions on a
time and materials basis with written approval by Client.
25.Indemnity.Each party agrees to indemnify and hold the other harmless from any claims, damages, or liability of any nature whatsoever,
arising out of the wrongful act, errors or omissions of the indemnifying party, its agents, or employees, or arising out of the negligent,
defective, or deficient condition of the property of the indemnifying party. In addition, Owner agrees to defend, indemnify, and hold harmless
the Operator from and against any claim, lawsuit, or other form of compulsion initiated and prosecuted by a Franchised Cable Company, its
successors or assigns arising out of the rights and duties granted to the Operator, and the cost for any repair, removal or re-installation
required to resolve any claim, lawsuit or other form of compulsion initiated and prosecuted by a Franchised Cable Company, its successors,
or assigns. This would also include any legal fees incurred by Aufderworld Corporation.
Satellite TV Specific Terms
26.Residential Upgrades. If the headend system installed at Client facility has the capability for residents to upgrade programming or
Page 10 of 11
* Price Includes Accessories
System Upgrades (Recommended)
6/14/2023Aufderworld CorporationPresented By:
Project Name:AWC-6900Project No.:
City Council | Tuesday, June 20, 2023 | Page 64 of 225
Aufderworld Corporation
equipment or both, Client staff will be expected to physically install new equipment with remote support from AWC. Aufderworld Corporation
will apply a $100 credit toward monthly programming invoices for each residential receiver installed by Client maintenance staff. An
Aufderworld Corporation service tech will be available to support the installation via phone should help be needed.
27.Extra Receivers.If the system purchased is a DRE or DRE+ system, a receiver is required for each TV connected to the DirecTV system.
Standard HD and HD DVR receivers are available. Client can purchase additional receivers for residents at any time at rates provided
above. Aufderworld Corporation must sell receivers to the Client directly and not to individual residents. Client can at its discretion sell,
lease, or rent extra receivers to the residents at whatever rate is established by the Client. Extra receivers are warranted for one year from
date of purchase.
28.Signal Integrity. Client shall hold Aufderworld Corporation harmless and indemnify it from any unauthorized reception and use of protected
signals by Client.
29.Existing Distribution.Aufderworld Corporation assumes existing distribution system is operational, functioning in good order and owned by
the Client. Aufderworld Corporation is not responsible for repair or warranty of any existing equipment, nor does Aufderworld Corporation
guarantee compliance with all FCC regulations for equipment not installed by Aufderworld Corporation. Distribution System improvements or
replacements will be made and billed for on an as-needed basis. Signal improvements will be assessed as made and determination of the
job scope is at the discretion of the Client. If any equipment in this quote is intended to integrate with an existing computer network, it is
assumed that a representative from the Client’s IT department will be available and able to assist in the integration. Aufderworld Corporation
assumes that all wiring is in place and is of the type that will accommodate full functionality of proposed system. Aufderworld Corporation
assumes all passive distribution components can pass frequencies from 5-2150 MHz’s If distribution upgrade is necessary, Aufderworld
Corporation can provide at standard commercial rates.
30.Satellite, in-house signal quality.Aufderworld Corporation guarantees optimal signal quality at the headend per equipment manufactures
specifications and performance criteria. Signal quality at TV outlets will be equal to or better than existing signals. Client to assume all
DirecTV programming costs associated with an upgrade in programming service. It is assumed that the length of the satellite signal run does
not exceed 200 feet. If the run exceeds 200 feet, Aufderworld Corporation can provide, if necessary, line amplifiers and additional labor at
prevailing commercial rates.
31.Compliances/Procedure. Compliance with the programming terms set forth by DirecTV is required. Aufderworld Corporation must be
notified of any changes in number of units and/or programming changes.
32.Term.Term of this agreement is 12 months from installation date unless other terms are agreed upon in the DirecTV programing agreement
signed by customer at the time of installation. In that case, the terms of the DirecTV agreement shall prevail. Once the DirecTV agreement
has expired, Client must give Aufderworld Corporation a minimum of 60-days written advance notice of intent to terminate service with
Aufderworld Corporation.
33.Program Fees. Client is responsible for payment of programming fees based on published rates at the time of installation. Fees may vary
from previously quoted prices due to rate increases or promotional discounts. Receiver price is based upon one-year programming
subscription. Early termination may result in $135.00 per receiver charge plus any other applicable early termination fees. Client will be
responsible for first and last month programming fees prior to activation of system.
Page 11 of 11
* Price Includes Accessories
System Upgrades (Recommended)
6/14/2023Aufderworld CorporationPresented By:
Project Name:AWC-6900Project No.:
City Council | Tuesday, June 20, 2023 | Page 65 of 225
City Council | Tuesday, June 20, 2023 | Page 66 of 225
Request for City Council Action
DATE: June 20, 2023
TO: Mayor, City Council, and City Administrator
FROM: John Boland, Public Works Superintendent
SUBJECT: Approve Purchase Order for Street Light Poles
INTRODUCTION
The Council is asked to approve the purchase of ten street light poles.
BACKGROUND
The City of Mendota Heights has 122 street light poles that are maintained. The poles are 30’
tall, square tapered steel poles with a baseplate welded on them. The street light poles were
installed in 1987, and are approaching their usable life due to corrosion. Staff began an
inspection process of the poles in 2021 and started a painting schedule to help extend the life of
the street light poles.
These ten new poles will replace existing street light poles that have failed an integrity test
during the annual inspection.
BUDGET IMPACT
Staff requested quotes from three vendors:
Mountain States Lighting $25,113.00
Greybar $29,000.00
Viking Electric $33,000.00
The purchase of the ten street light poles would come out of the Street Light Fund which is
funded through a special street light taxing district. This fund has an adequate balance to fund
the purchase of the ten street light poles.
RECOMMENDATION
Staff recommends that the Mendota Heights City Council approve the purchase of ten street light
poles.
ACTION REQUIRED
If Council concurs, they should pass a motion authorizing staff to issue a purchase order to
Mountain States Lighting, the low bidder, in the amount of $25,113.00, for the purchase of ten
replacement street light poles. This action requires a simple majority vote.
5jCity Council | Tuesday, June 20, 2023 | Page 67 of 225
City Council | Tuesday, June 20, 2023 | Page 68 of 225
Request for City Council Action
MEETING DATE: June 20, 2023
TO: Mayor, City Council, and City Administrator
FROM: Scott Goldenstein, Assistant Fire Chief
SUBJECT: Fire Synopsis – April 2023
Fire Calls: 55
For April 2023, the Fire Department paged for service a total of 55 times.
Types of fire calls:
Fires: 2 In April, the Fire Department responded to a residential structure fire as well as a
grass fire along interstate 35E.
Medical/Extrication: 10 Medical calls made up eight of the calls that the department
responded to in April, and in addition there were two extrication calls.
Hazardous Situations: 14 The department was paged to an unidentified chemical smell,
seven calls were for power line issues, one call was for a smell of natural gas in a home, and five
calls were carbon monoxide calls.
Haz Mat Release investigation: 2 Two fire calls were to investigate possible hazardous
material releases investigations.
False Alarms/System Malfunctions: 8 April had six calls for system malfunctions and two
calls were unintentional alarm trips.
Service Call: 2 Twice the MHFD was called out to assist an ambulance that was stuck in the
snow (during a snowstorm) while en route to a call.
Good Intent: 1 One call in April was for a smoke scare with no fire found after we arrived.
Dispatched and Cancelled En route: 13 Mendota Heights Fire had 13 fire calls that were
cancelled before our arrival.
Mendota Heights 39 calls
Lilydale 5 calls
Mendota 2 calls
Sunfish Lake 6 calls
Other 3 calls
Total 55 calls
5kCity Council | Tuesday, June 20, 2023 | Page 69 of 225
Mutual/Auto-Aid Other: 3 Mendota Heights Fire responded to assist Eagan Fire at the UPS
terminal in Eagan for a structure fire, we were also paged to a grass fire in South St Paul along
the river/railroad tracks, and we were also paged to Inver Grove Heights, but were cancelled
before our arrival there.
April Trainings
April 4 06:00 EMS C (Option 2)
This drill was the third portion of a firefighter’s bi-annual EMR medical refresher. The training
was presented by M Health and included the Mendota Heights Police Department as well.
April 12 18:30 Vehicle Extrication
This drill was a hand-on training with multiple stations going over best practices for fast and safe
patient stabilization and the removal of a victim from a vehicle that had been damaged in an
accident.
April 13 07:00 Vehicle Extrication
This drill was a hand-on training with multiple stations going over best practices for fast and safe
patient stabilization and the removal of a victim from a vehicle that had been damaged in an
accident.
April 24 18:30 Company Operations
This drill was a hands-on drill going over company operations at a fire scene including apparatus
operation and fire ground activities.
April 25 07:00 Company Operations
This drill was a hands-on drill going over company operations at a fire scene including apparatus
operation and fire ground activities.
City Council | Tuesday, June 20, 2023 | Page 70 of 225
Number of Calls 55 Total Calls for Year 136
FIRE ALARMS DISPATCHED:NUMBER STRUCTURE CONTENTS MISC.TOTALS TO DATE
ACTUAL FIRES
Structure - MH Commercial $0
Structure - MH Residential 1 $9,000 $500 $9,500
Structure - Contract Areas $0
Cooking Fire - confined $0
Vehicle - MH $0
Vehicle - Contract Areas $0
Grass/Brush/No Value MH 1
Grass/Brush/No Value Contract
Other Fire -$ -$
OVERPRESSURE RUPTURE $9,000 $500 $0
Excessive heat, scorch burns
MEDICAL
Emergency Medical/Assist 8
Vehicle accident w/injuries 2
Extrication ALL FIRES, ALL AREAS (MONTH)$9,500
Medical, other
HAZARDOUS SITUATION $9,500
Spills/Leaks 2
Carbon Monoxide Incident 5
Power line down 5
Arcing, shorting 1 $9,500
Hazardous, Other 1
SERVICE CALL
Smoke or odor removal $0
Assist Police or other agency 2
Service Call, other
GOOD INTENT
Good Intent
Dispatched & Cancelled 13 Current To Date Last Year
Smoke Scare 1 39 97 78
HazMat release investigation 2 5 8 8
Good Intent, Other 2 4 1
FALSE ALARMS 6 12 5
False Alarm 3 15 11
Malfunction 6
Unintentional 2 Total:55 136 103
False Alarm, other
MUTUAL AID 3 FIRE MARSHAL'S TIME FOR MONTH
Total Calls 55 Inspections
Investigations
WORK PERFORMED Hours To Date Last Year
Re-Inspection
Fire Calls 705 1732 1397
Meetings 77 251 339.5 Meetings
Training 383.5 1381 939
Special Activity 71.5 157.5 272.5 Administration
Fire Marshal 0 0 148.5
Plan Review/Training
TOTALS 1237 3521.5 3096.5 TOTAL:0
TOTAL MONTHLY FIRE LOSSES
Mendota Heights Only Structure/Contents
Mendota Heights Only Miscellaneous
Mendota Heights Total Loss to Date
Contract Areas Loss to Date
Lilydale
Mendota
Sunfish Lake
Other
MENDOTA HEIGHTS FIRE DEPARTMENT
APRIL 2023 MONTHLY REPORT
FIRE LOSS TOTALS
LOCATION OF FIRE ALARMS
Mendota Heights
City Council | Tuesday, June 20, 2023 | Page 71 of 225
City Council | Tuesday, June 20, 2023 | Page 72 of 225
1101 Victoria Curve I Mendota Heights, MN 55118
651.452.1850 phone I 651.452.8940 fax
www.mendota-heights.com ,� CITY OF ,m1 MENDOTA HEIGHTS
MEETING DATE:
TO:
FROM:
SUBJECT:
BACKGROUND
Significant Claims
Request for City Council Action
June 20, 2023
Mayor, City Council and City Administrator
Kristen Schabacker, Finance Director� Claims List Summary
Advanced Spo1tswear -Recreation/Staff T-Shi1ts
Century Fence-Dugouts at Valley, Civic Center & Victoria Highlands
Imagetrend-Fire Annual CAD Fee
Kirchner Contracting-Storm Water Repairs, Install Nets at Ball Fields
Mansfield Oil -Fuel
Schlomka Services -Storm Sewer and Sewer Utility Work
Swanson Haskamp Consulting -Zoning Code Update/Planning Services
TKDA-Victoria Curve/Centre Pointe Street Improvement Work
Tri State Bobcat -Toolcat/Equipment Repair -Public Works
Manual Checks Total
System Checks Total
Total for the list of claims for the June 20, 2023 City Council meeting
RECOMMENDATION
$ 5,970.25
$ 53,695.00
$ 3,245.97
$ 13,267.00
$ 9,091.51
$ 4,110.24
$ 14,875.00
$ 13,680.18
$ 65,696.42
$ 3,490.00
$ 304,272.85
$ 307,762.85
Staff recommends that the Mendota Heights City Council approve the list of claims for June 20, 2023.
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Request for City Council Action
DATE: June 20, 2023
TO: Mayor, City Council and City Administrator
FROM: Kristen Schabacker, Finance Director
SUBJECT: 2022 Audit Presentation
BACKGROUND
BerganKDV has completed the audit for 2022. The reports for 2022 are the Annual Report &
Basic Financial Statements and the Communications Letter. These reports are included in your
packet.
Matt Mayer from KDV will be presenting the Annual Audit Report for 2022.
BUDGET IMPACT
There is no budget impact.
RECOMMENDATION
Accept the review and ask any questions you may have.
7aCity Council | Tuesday, June 20, 2023 | Page 85 of 225
City of Mendota Heights
Dakota County, Minnesota
Communications Letter
December 31, 2022
City Council | Tuesday, June 20, 2023 | Page 86 of 225
City of Mendota Heights
Table of Contents
Report on Matters Identified as a Result of
the Audit of the Basic Financial Statements 1
Material Weakness 3
Required Communication 4
Financial Analysis 9
Emerging Issues 18
City Council | Tuesday, June 20, 2023 | Page 87 of 225
1
Report on Matters Identified as a Result of
the Audit of the Basic Financial Statements
Honorable Mayor, Members
of the City Council and Management
City of Mendota Heights
Mendota Heights, Minnesota
In planning and performing our audit of the basic financial statements of the governmental activities,
business-type activities, each major fund, and the aggregate remaining fund information of the City of
Mendota Heights, Minnesota, as of and for the year ended December 31, 2022, in accordance with
auditing standards generally accepted in the United States of America, we considered the City's internal
control over financial reporting (internal control) as a basis for designing audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinions on the financial statements,
but not for the purpose of expressing an opinion on the effectiveness of the City's internal control.
Accordingly, we do not express an opinion on the effectiveness of the City's internal control over
financial reporting.
Our consideration of internal control was for the limited purpose described in the preceding paragraph
and was not designed to identify all deficiencies in internal control that might be material weaknesses or
significant deficiencies and, therefore, material weaknesses or significant deficiencies may exist that
have not been identified. In addition, because of inherent limitations in internal control, including the
possibility of management override of controls, misstatements due to error, or fraud may occur and not
be detected by such controls. However, as discussed below, we identified a certain deficiency in internal
control that we consider to be a material weakness.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control over financial reporting, such that there is a reasonable
possibility that a material misstatement of the City's basic financial statements will not be prevented, or
detected and corrected, on a timely basis. A reasonable possibility exists when the likelihood of an event
occurring is either reasonably possible or probable as defined as follows:
Reasonably possible. The chance of the future event or events occurring is more than remote but
less than likely.
Probable. The future event or events are likely to occur.
The material weakness identified is stated within this letter.
A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less
severe than a material weakness, yet important enough to merit attention by those charged with
governance.
City Council | Tuesday, June 20, 2023 | Page 88 of 225
2
The accompanying memorandum also includes financial analysis provided as a basis for discussion. The
matters discussed herein were considered by us during our audit and they do not modify the opinion
expressed in our Independent Auditor's Report dated June 1, 2023, on such statements.
This communication, which is an integral part of our audit, is intended solely for the information and use
of management, the City Council, others within the City and state oversight agencies and is not intended
to be, and should not be, used by anyone other than these specified parties.
Minneapolis, Minnesota
June 1, 2023
City Council | Tuesday, June 20, 2023 | Page 89 of 225
3
City of Mendota Heights
Material Weakness
Lack of Segregation of Accounting Duties
The City had a lack of segregation of accounting duties due to a limited number of office employees.
The lack of adequate segregation of accounting duties could adversely affect the City's ability to initiate,
record, process, and report financial data consistent with the assertions of management in the financial
statements. This lack of segregation of accounting duties can be demonstrated in the following areas,
which is not intended to be an all-inclusive list:
The Finance Director has the ability to receipt City service revenue, prepares the deposit receipts,
is responsible for coding, and prepares the Treasurer's report for the City Council.
The Utility Billing Clerk enters consumption into the utility billing system, prepares and reviews
utility bills, applies payments to customer accounts, and has the ability to make adjustments to
customer accounts.
The Finance Director performs year-end reconciliations and prepares closing entries without
review.
In addition to having responsibilities in the cycles listed above, the City's Finance Director has full
general ledger access and the ability to write and post journal entries. While we believe this access is
necessary to efficiently perform the financial duties required, this access allows the ability to override
many of the controls and segregation the City has in place.
The City has implemented certain controls to mitigate the risk due to the lack of segregation of
accounting duties, including but not limited to reviewing adjustments to customer accounts before they
are posted, having a non-finance employee prepare bank reconciliations and review of all journal entries.
However, due to the number of staff needed to properly segregate all of the accounting duties, the cost
of obtaining desirable segregation of accounting duties can often exceed benefits which could be
derived. However, management and the City Council must remain aware of this situation and should
continually monitor the accounting system, including changes that occur.
We recommend that the City review the internal control process to ensure segregation or independent
review be implemented whenever practical and cost effective.
City Council | Tuesday, June 20, 2023 | Page 90 of 225
4
City of Mendota Heights
Required Communication
We have audited the basic financial statements of the governmental activities, business-type activities,
each major fund, and the aggregate remaining fund information of the City as of and for the year ended
December 31, 2022. Professional standards require that we advise you of the following matters related
to our audit.
Our Responsibility in Relation to the Financial Statement Audit
As communicated in our engagement letter, our responsibility, as described by professional standards, is
to form and express opinions about whether the basic financial statements prepared by management with
your oversight are presented fairly, in all material respects, in accordance with accounting principles
generally accepted in the United States of America. Our audit of the basic financial statements does not
relieve you or management of its respective responsibilities.
Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain
reasonable, rather than absolute, assurance about whether the basic financial statements are free of
material misstatement. An audit of the basic financial statements includes consideration of internal
control over financial reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal
control over financial reporting. Accordingly, as part of our audit, we considered the internal control of
the City solely for the purpose of determining our audit procedures and not to provide any assurance
concerning such internal control.
We are also responsible for communicating significant matters related to the audit that are, in our
professional judgement, relevant to your responsibilities in overseeing the financial reporting process.
However, we are not required to design procedures for the purpose of identifying other matters to
communicate to you.
Generally accepted accounting principles provide for certain Required Supplementary Information (RSI)
to supplement the basic financial statements. Our responsibility with respect to the RSI, which
supplements the basic financial statements, is to apply certain limited procedures in accordance with
generally accepted auditing standards. However, the RSI was not audited and, because the limited
procedures do not provide us with sufficient evidence to express an opinion or provide any assurance,
we do not express an opinion or provide any assurance on the RSI.
Our responsibility for the supplementary information accompanying the basic financial statements, as
described by professional standards, is to evaluate the presentation of the supplementary information in
relation to the basic financial statements as a whole and to report on whether the supplementary
information is fairly stated, in all material respects, in relation to the basic financial statements as a
whole.
Our Responsibility in Relation to Government Auditing Standards
As communicated in our engagement letter, part of obtaining reasonable assurance about whether the
basic financial statements are free of material misstatement, we performed tests of the City's compliance
with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which
could have a direct and material effect on the determination of basic financial statement amounts.
However, the objective of our tests was not to provide an opinion on compliance with such provisions.
City Council | Tuesday, June 20, 2023 | Page 91 of 225
5
City of Mendota Heights
Required Communication
Our Responsibility in Relation to Title 2 U.S. Code of Federal Regulations Part 200, Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards
(Uniform Guidance)
As communicated in our engagement letter, in accordance with the Uniform Guidance, we examined on
a test basis, evidence about the City's compliance with the types of compliance requirements described
in the U.S. Office of Management and Budget (OMB) Compliance Supplement applicable to each of its
major federal programs for the purpose of expressing an opinion on the City's compliance with those
requirements. While our audit provided a reasonable basis for our opinion, it did not provide a legal
determination on the City's compliance with those requirements.
In planning and performing our audit of compliance, we considered the City's internal control over
compliance with the types of requirements that could have a direct and material effect on each major
federal program to determine the auditing procedures that are appropriate in the circumstances for the
purpose of expressing an opinion on compliance for each major federal program and to test and report
on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose
of expressing an opinion on the effectiveness of internal control over compliance.
Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously communicated to
you.
Compliance with All Ethics Requirements Regarding Independence
The engagement team, others in our firm, as appropriate, our firm, and our network firms have complied
with all relevant ethical requirements regarding independence.
Significant Risks Identified
We have identified the following significant risks of material misstatement:
Risk of Improper Revenue Recognition – Revenue recognition is considered a fraud risk on
substantially all engagements as it is generally the largest line item impacting a City's change in
fund balance or net position.
Risk of Misappropriation of Assets – Misappropriation of Assets is considered a risk in
substantially all engagements as assets may be misappropriated due to fraud or error.
Risk of Management Override of Controls – Management override of internal control is
considered a risk in substantially all engagements as management may be incentivized to
produce better results.
Qualitative Aspects of the City's Significant Accounting Practices
Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary of the
significant accounting policies adopted by the City is included in the notes to financial statements. There
have been no initial selection of accounting policies and no changes to significant accounting policies or
their application during 2022. No matters have come to our attention that would require us, under
professional standards, to inform you about (1) the methods used to account for significant unusual
transactions and (2) the effect of significant accounting policies in controversial or emerging areas for
which there is a lack of authoritative guidance or consensus.
City Council | Tuesday, June 20, 2023 | Page 92 of 225
6
City of Mendota Heights
Required Communication
Qualitative Aspects of the City's Significant Accounting Practices (Continued)
Significant Accounting Estimates
Accounting estimates are an integral part of the basic financial statements prepared by management and
are based on management's current judgements. Those judgements are normally based on knowledge
and experience about past and current events and assumptions about future events. Certain accounting
estimates are particularly sensitive because of their significance to the basic financial statements and
because of the possibility that future events affecting them may differ markedly from management's
current judgements. The most sensitive estimates affecting the basic financial statements related to:
Depreciation – The City is currently depreciating its capital assets over their estimated useful lives,
as determined by management, using the straight-line method.
Expense Allocation – Certain expenses are allocated to functions based on an estimate of the benefit
to that particular function. Examples are salaries, benefits, insurance, and supplies.
Total Other Post Employment Benefits (OPEB) Liability, Deferred Outflows of Resources Related
to OPEB, and Deferred Inflows of Resources Related to OPEB – These balances are based on an
actuarial study using the estimates of future obligations of the City for post employment benefits.
Net Pension Liability, Deferred Outflows of Resources Related to Pensions and Deferred Inflows of
Resources Related to Pensions – These balances are based on an allocation by the pension plans
using estimates based on contributions.
We evaluated the key factors and assumptions used to develop the accounting estimates and determined
that they are reasonable in relation to the basic financial statements taken as a whole and in relation to
the applicable opinion units.
Financial Statement Disclosures
Certain basic financial statement disclosures involve significant judgment and are particularly sensitive
because of their significance to financial statement users. The basic financial statement disclosures are
neutral, consistent, and clear.
Significant Difficulties Encountered during the Audit
We encountered no significant difficulties in dealing with management relating to the performance of
the audit.
Uncorrected and Corrected Misstatements
For the purposes of this communication, professional standards require us to accumulate all known
and likely misstatements identified during the audit, other than those that we believe are trivial, and
communicate them to the appropriate level of management. Further, professional standards require
us to also communicate the effects of uncorrected misstatements related to prior periods on the
relevant classes of transactions, account balances or disclosures, and the basic financial statements
taken as a whole and each applicable opinion unit. Management did not identify, and we did not
notify them of any uncorrected financial statement misstatements
City Council | Tuesday, June 20, 2023 | Page 93 of 225
7
City of Mendota Heights
Required Communication
Uncorrected and Corrected Misstatements (Continued)
In addition, professional standards require us to communicate to you all material, corrected
misstatements that were brought to the attention of management as a result of our audit procedures.
None of the misstatements detected as a result of audit procedures and corrected by management were
material, either individually or in the aggregate, to the basic financial statements taken as a whole.
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a
matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or
auditing matter, which could be significant to the City's basic financial statements or the auditor's
report. No such disagreements arose during the course of our audit.
Representations Requested from Management
We have requested certain written representations from management, which are included in the
management representation letter.
Management's Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and
accounting matters. Management has informed us that, and to our knowledge, there were no
consultations with other accountants regarding auditing and accounting matters.
Other Significant Matters, Findings, or Issues
In the normal course of our professional association with the City, we generally discuss a variety of
matters, including the application of accounting principles and auditing standards, significant events or
transactions that occurred during the year, operating and regulatory conditions affecting the City, and
operational plans and strategies that may affect the risks of material misstatement. None of the matters
discussed resulted in a condition to our retention as the City's auditor.
Other Information Included in Annual Reports
Pursuant to professional standards, our responsibility as auditors for other information, whether financial
or nonfinancial, included in the City's annual reports, does not extend beyond the information identified
in the audit report, and we are not required to perform any procedures to corroborate such other
information.
We applied certain limited procedures to the RSI that supplements the basic financial statements. Our
procedures consisted of inquiries of management regarding the methods of preparing the information
and comparing the information for consistency with management's responses to our inquiries, the basic
financial statements, and other knowledge we obtained during our audit of the basic financial statements.
We did not audit the RSI and do not express an opinion or provide any assurance on the RSI.
City Council | Tuesday, June 20, 2023 | Page 94 of 225
8
City of Mendota Heights
Required Communication
Other Information Included in Annual Reports (Continued)
With respect to the supplementary information accompanying the financial statements, we made
certain inquiries of management and evaluated the form, content and methods of preparing the
information to determine that the information complies with accounting principles generally
accepted in the United States of America, the method of preparing it has not changed from the prior
period, and the information is appropriate and complete in relation to our audit of the financial
statements. We compared and reconciled the supplementary information to the underlying
accounting records used to prepare the basic financial statements or to the basic financial statements
themselves.
Our responsibility also includes communicating to you any information which we believe is a material
misstatement of fact. Nothing came to our attention that caused us to believe that such information, or its
manner of presentation, is materially inconsistent with the information, or manner of its presentation,
appearing in the basic financial statements.
City Council | Tuesday, June 20, 2023 | Page 95 of 225
City of Mendota Heights
Financial Analysis
9
The following pages provide graphic representation of select data pertaining to the financial position and
operations of the City for the past four years. Our analysis of each graph is presented to provide a basis
for discussion of past performance and how implementing certain changes may enhance future
performance. We suggest you view each graph and document if our analysis is consistent with yours. A
subsequent discussion of this information should be useful for planning purposes.
General Fund Revenues
The General Fund revenues for the past five years are depicted in the following graph.
2018 2019 2020 2021 2022
Other $352,191 $509,614 $412,446 $328,838 $129,072
Charges for Services 643,095 716,877 677,925 736,356 641,490
Intergovernmental 469,417 529,235 1,435,730 521,938 735,603
Licenses and Permits 515,103 480,249 405,376 619,710 731,480
Taxes and Assessments 7,237,908 7,509,301 7,959,743 8,243,823 8,935,145
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
General Fund Revenues
General Fund revenue increased $722,125, or 6.9%, during the year, from $10,450,665 in 2021 to
$11,172,790 in 2022. The largest fluctuation occurred in Taxes and assessments, which increased
$691,322 due to an increase in the amount of taxes levied in 2022. Intergovernmental revenue increased
$213,665 due to an increase in the number of grants received. Charges for services revenue decreased
$94,866 due to fewer contracts with surrounding governments for contracted public safety. Other
revenue decreased $199,766 due to a negative market value adjustment related to worsening market
conditions. License and permit revenue increased $111,770 due to an increased number of building
permits.
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City of Mendota Heights
Financial Analysis
10
General Fund Revenues (Continued)
Taxes and
Assessments
80%
Licenses and
Permits
6%
Intergovernmental
7%
Charges for
Services
6%
Other
1%
2022 General Fund Revenues
Taxes and
Assessments
79%
Licenses and
Permits
6%Intergovernmental
5%
Charges for
Services
7%
Other
3%
2021 General Fund Revenues
City Council | Tuesday, June 20, 2023 | Page 97 of 225
City of Mendota Heights
Financial Analysis
11
General Fund Expenditures
The General Fund expenditures for the past five years are depicted in the following graph.
2018 2019 2020 2021 2022
Debt Service $- $- $- $- $45,017
Capital Outlay 19,330 - 2,478 54,611 251,876
General Government 1,609,931 1,676,334 1,890,278 1,757,792 2,066,147
Public Works 2,464,014 2,645,909 2,632,290 2,795,095 3,172,510
Public Safety 4,151,895 4,607,105 4,885,438 5,034,195 5,106,234
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
General Fund expenditures increased $1,000,091, or 10.4%, from $9,641,693 in 2021 to $10,641,784 in
2022. Public works increased the most from 2021, by $377,415, or 13.5%. This increase is due to hiring
a park and recreation manager as well as increased diseased tree removal. Public safety increased
$72,039, or 1.4% due to cost of living adjustments. General government expenditures increased
$308,355, or 17.5% due to a lawsuit settlement payment. Capital outlay increased $197,265 due to the
implementation of GASB 87.
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City of Mendota Heights
Financial Analysis
12
General Fund Expenditures (Continued)
General
Government
20%
Public Safety
48%
Public Works
30%Capital Outlay
2%
2022 General Fund Expenditures
General
Government
18%
Public Safety
52%
Public Works
29%Capital Outlay
1%
2021 General Fund Expenditures
City Council | Tuesday, June 20, 2023 | Page 99 of 225
City of Mendota Heights
Financial Analysis
13
General Fund Expenditures (Continued)
The table below presents a comparison of budget and actual General Fund revenues and expenditures by
function. In total, the fund's expenditures were $44,611, or 0.4%, under budgeted expenditures of
$10,686,395. The fund's revenue was $533,945, or 5.0%, over budgeted revenues of $10,638,845.
Public Safety expenditures were under budget by $372,776. This was due to the police staffing turnover
causing vacancies and variations in personnel levels. Capital outlay expenditures were $251,876 over
budget due to GASB 87 implementation. All other functions were consistent with the budgeted amounts.
Licenses and permits revenue was $402,280 over budget due to budgeting conservatively.
Intergovernmental revenue was $188,103 over budget due to budgeting conservatively All other
functions were consistent with the budgeted amounts.
Variance
Original and Final Budget -
Final Budget Amounts Over (Under)
Revenues
Taxes and assessments 8,849,981$ 8,935,145$ 85,164$
Licenses and permits 329,200 731,480 402,280
Intergovernmental 547,500 735,603 188,103
Charges for services 675,164 641,490 (33,674)
Other 237,000 129,072 (107,928)
Total revenues 10,638,845 11,172,790 533,945
Expenditures
General government 1,979,540 2,066,147 86,607
Public safety 5,479,010 5,106,234 (372,776)
Public works 3,227,845 3,172,510 (55,335)
Capital outlay - 251,876 251,876
Debt service:
Principal - 45,017 45,017
Total expenditures 10,686,395 10,641,784 (44,611)
Other financing sources (uses)
Sale of capital asset - 103,076 103,076
Proceeds from leases - 210,926 210,926
Transfers in 47,550 47,550 -
Transfers out - (756,470) (756,470)
Total other financing sources (uses)47,550 (394,918) (442,468)
Net change in fund balances -$ 136,088$ 136,088$
City Council | Tuesday, June 20, 2023 | Page 100 of 225
City of Mendota Heights
Financial Analysis
14
General Fund Operations
The bar chart below highlights General Fund results for the last five years.
80%
100%
120%
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
2018 2019 2020 2021 2022
Revenues $9,217,714 $9,745,276 $10,891,220 $10,450,665 $11,172,790
Expenditures 8,245,170 8,929,348 9,410,484 9,641,693 10,641,784
Fund Balance 8,836,600 9,352,885 10,684,511 11,349,217 11,485,305
Fund Balance as a Percent of
the Year's Expenditures 107%105%114%118%108%
General Fund Operations
As shown in the chart, the City's fund balance increased to its highest point in the five years presented.
The amount of fund balance as a percentage of the current year's expenditures has increased steadily
since 2018, with a slight decrease in 2022 due to increased 2022 expenditures levels. The City
implemented a policy in accordance with GASB 54 whereby the General Fund's unassigned fund
balance is at least 75% of the subsequent year's budgeted expenditures. As of December 31, 2022, the
City's unassigned General Fund balance of $11,109,344 was 108% of 2023 budgeted expenditures.
City Council | Tuesday, June 20, 2023 | Page 101 of 225
City of Mendota Heights
Financial Analysis
15
Tax Capacity, Levy, and Rates
The chart below graphs the tax capacity, certified tax levy, and City tax rate for 2018 through 2022. The
tax capacity is based on total tax capacity, prior to adjustments for captured Tax Increment Financing
(TIF) and fiscal disparities. The certified tax levy amount is also prior to fiscal disparity adjustments.
With improving market values, the City's tax capacity increased from 2018 to 2022 by $6,240,751 or
26.4%. In 2022, the City's tax capacity increased $1,003,747.
$23,623,069
$25,020,902
$27,187,958
$28,860,073 $29,863,820
$8,348,491
$9,435,150 $10,048,724 $10,482,617 $11,194,705
37.83%39.29%38.32%37.85%
39.74%
0.00%
4.00%
8.00%
12.00%
16.00%
20.00%
24.00%
28.00%
32.00%
36.00%
40.00%
44.00%
48.00%
52.00%
56.00%
60.00%
64.00%
68.00%
$-
$2,500,000
$5,000,000
$7,500,000
$10,000,000
$12,500,000
$15,000,000
$17,500,000
$20,000,000
$22,500,000
$25,000,000
$27,500,000
$30,000,000
$32,500,000
2018 2019 2020 2021 2022
Tax Capacity, Levy, and Rates*
Total Tax Capacity Certified Tax Levy Tax Capacity Rate
* Property tax data was obtained from Dakota County.
City Council | Tuesday, June 20, 2023 | Page 102 of 225
City of Mendota Heights
Financial Analysis
16
Enterprise Funds
Sewer Utility Fund
The following graph presents a five-year history of the Sewer Utility Fund. Due to the nature and cost of
Sewer Utility Fund assets, it is often difficult to establish sewer rates that are sufficient to cover the
current year's use of the assets represented by depreciation expense. Ideally, Sewer Utility Fund
revenues should cover all operating expenses, including depreciation.
The Sewer Utility Fund had an operating income of $241,957, which included recognition of $205,635
of depreciation expense. Revenues exceeded expenses in all five years presented. Net position of the
fund increased $197,787 after factoring in nonoperating revenues, and net transfers.
2018 2019 2020 2021 2022
Charges for Services $2,012,107 $2,045,839 $2,317,640 $2,386,252 $2,411,225
Operating Expenses 1,954,960 2,001,963 2,024,291 2,273,926 2,169,268
Operating Income (Loss)57,147 43,876 293,349 112,326 241,957
Operating Income (Loss)
Excluding Depreciation 240,509 230,990 494,261 314,413 447,592
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
Sewer Fund
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City of Mendota Heights
Financial Analysis
17
Enterprise Funds (Continued)
Storm Water Fund
The Storm Water Fund had operating income of $396,394, which included recognition of depreciation
expense of $54,444. Net position increased $193,949 in 2022 after factoring in nonoperating revenues
and transfers out. The fund has shown operating income for all years presented.
$-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
2018 2019 2020 2021 2022
Charges for Services $501,173 $507,769 $578,799 $582,537 $586,430
Operating Expenses 285,058 275,606 225,841 404,573 190,036
Operating Income (Loss)216,115 232,163 352,958 177,964 396,394
Operating Income (Loss) Excluding
Depreciation 268,841 279,127 404,241 232,408 450,838
Storm Water Fund
City Council | Tuesday, June 20, 2023 | Page 104 of 225
City of Mendota Heights
Emerging Issues
18
Executive Summary
The following is an executive summary of financial related updates to assist you in staying current on
emerging issues in accounting and finance. This summary will give you a preview of the new standards
that have been recently issued and what is on the horizon for the near future. The most recent and
significant updates include:
Accounting Standard Update – GASB Statement No. 96 – Subscription-Based Information
Technology Arrangements
GASB has issued GASB Statement No. 96 relating to accounting and financial reporting for
subscription-based information technology arrangements. The requirements of this Statement
will improve financial reporting by establishing a definition for subscription-based information
technology arrangements and providing uniform guidance for accounting and financial reporting
for transactions that meet that definition.
Accounting Standard Update – GASB Statement No. 100 – Accounting Changes and Error
Corrections
GASB has issued GASB Statement No. 100 relating to accounting and financial reporting for
accounting changes and error corrections. The requirements of this Statement will improve the
clarity of the accounting and financial reporting requirements for accounting changes and error
corrections, which will result in greater consistency in application in practice. In turn, more
understandable, reliable, relevant, consistent, and comparable information will be provided to
financial statement users for making decisions or assessing accountability.
Accounting Standard Update – GASB Statement No. 101 – Compensated Absences
GASB has issued GASB Statement No. 101 relating to accounting and financial reporting for
compensated absences. The unified recognition and measurement model in this Statement will
result in a liability for compensated absences that more appropriately reflects when a government
incurs an obligation. In addition, the model can be applied consistently to any type of
compensated absence and will eliminate potential comparability issues between governments
that offer different types of leave.
The following is an extensive summary of the current updates. As your continued business partner, we
are committed to keeping you informed of new and emerging issues. We are happy to discuss these
issues with you further and their applicability to your City.
Accounting Standard Update – GASB Statement No. 96 – Subscription-Based Information
Technology Arrangements
This Statement provides guidance on the accounting and financial reporting for subscription-based
information technology arrangements (SBITAs) for government end users (governments). This
Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset –
an intangible asset – and a corresponding subscription liability; (3) provides the capitalization criteria for
outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires
note disclosures regarding a SBITA. To the extent relevant, the standards for SBITAs are based on the
standards established in Statement No. 87, Leases, as amended.
A SBITA is defined as a contract that conveys control of the right to use another party's (a SBITA
vendor's) information technology (IT) software, alone or in combination with tangible capital assets (the
underlying IT assets), as specified in the contract for a period of time in an exchange or exchange-like
transaction.
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City of Mendota Heights
Emerging Issues
19
Accounting Standard Update – GASB Statement No. 96 – Subscription-Based Information
Technology Arrangements (Continued)
The subscription term includes the period during which a government has a noncancellable right to use
the underlying IT assets. The subscription term also includes periods covered by an option to extend (if
it is reasonably certain that the government or SBITA vendor will exercise that option) or to terminate
(if it is reasonably certain that the government or SBITA vendor will not exercise that option).
Under this Statement, a government generally should recognize a right-to-use subscription asset – an
intangible asset – and a corresponding subscription liability. A government should recognize the
subscription liability at the commencement of the subscription term, – which is when the subscription
asset is placed into service. The subscription liability should be initially measured at the present value of
subscription payments expected to be made during the subscription term. Future subscription payments
should be discounted using the interest rate the SBITA vendor charges the government, which may be
implicit, or the government's incremental borrowing rate if the interest rate is not readily determinable.
A government should recognize amortization of the discount on the subscription liability as an outflow
of resources (for example, interest expense) in subsequent financial reporting periods.
The subscription asset should be initially measured as the sum of (1) the initial subscription liability
amount, (2) payments made to the SBITA vendor before commencement of the subscription term, and
(3) capitalizable implementation costs, less any incentives received from the SBITA vendor at or before
the commencement of the subscription term. A government should recognize amortization of the
subscription asset as an outflow of resources over the subscription term.
Activities associated with a SBITA, other than making subscription payments, should be grouped into
the following three stages, and their costs should be accounted for accordingly:
Preliminary Project Stage, including activities such as evaluating alternatives, determining
needed technology, and selecting a SBITA vendor. Outlays in this stage should be expensed as
incurred.
Initial Implementation Stage, including all ancillary charges necessary to place the subscription
asset into service. Outlays in this stage generally should be capitalized as an addition to the
subscription asset.
Operation and Additional Implementation Stage, including activities such as subsequent
implementation activities, maintenance, and other activities for a government's ongoing
operations related to a SBITA. Outlays in this stage should be expensed as incurred unless they
meet specific capitalization criteria.
In classifying certain outlays into the appropriate stage, the nature of the activity should be the
determining factor. Training costs should be expensed as incurred, regardless of the stage in which they
are incurred.
If a SBITA contract contains multiple components, a government should account for each component as
a separate SBITA or nonsubscription component and allocate the contract price to the different
components. If it is not practicable to determine a best estimate for price allocation for some or all
components in the contract, a government should account for those components as a single SBITA.
City Council | Tuesday, June 20, 2023 | Page 106 of 225
City of Mendota Heights
Emerging Issues
20
Accounting Standard Update – GASB Statement No. 96 – Subscription-Based Information
Technology Arrangements (Continued)
This Statement provides an exception for short-term SBITAs. Short-term SBITAs have a maximum
possible term under the SBITA contract of 12 months (or less), including any options to extend,
regardless of their probability of being exercised. Subscription payments for short-term SBITAs should
be recognized as outflows of resources.
This Statement requires a government to disclose descriptive information about its SBITAs other than
short-term SBITAs, such as the amount of the subscription asset, accumulated amortization, other
payments not included in the measurement of a subscription liability, principal and interest requirements
for the subscription liability, and other essential information.
GASB Statement No. 96 is effective for reporting periods beginning after June 15, 2022. Earlier
application is encouraged.
Information provided above was obtained from www.gasb.org.
Accounting Standard Update – GASB Statement No. 100 – Accounting Changes and Error
Corrections – an Amendment of GASB Statement No. 62
The primary objective of this Statement is to enhance accounting and financial reporting requirements
for accounting changes and error corrections to provide more understandable, reliable, relevant,
consistent, and comparable information for making decisions or assessing accountability.
This Statement defines accounting changes as changes in accounting principles, changes in accounting
estimates, and changes to or within the financial reporting entity and describes the transactions or other
events that constitute those changes. As part of those descriptions, for (1) certain changes in accounting
principles and (2) certain changes in accounting estimates that result from a change in measurement
methodology, a new principle or methodology should be justified on the basis that it is preferable to the
principle or methodology used before the change. That preferability should be based on the qualitative
characteristics of financial reporting – understandability, reliability, relevance, timeliness, consistency,
and comparability. This Statement also addresses corrections of errors in previously issued financial
statements.
This Statement prescribes the accounting and financial reporting for (1) each type of accounting change
and (2) error corrections. This Statement requires that (a) changes in accounting principles and error
corrections be reported retroactively by restating prior periods, (b) changes to or within the financial
reporting entity be reported by adjusting beginning balances of the current period, and (c) changes in
accounting estimates be reported prospectively by recognizing the change in the current period. The
requirements of this Statement for changes in accounting principles apply to the implementation of a
new pronouncement in absence of specific transition provisions in the new pronouncement.
This Statement also requires that the aggregate amount of adjustments to and restatements of beginning
net position, fund balance, or fund net position, as applicable, be displayed by reporting unit in the
financial statements.
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City of Mendota Heights
Emerging Issues
21
Accounting Standard Update – GASB Statement No. 100 – Accounting Changes and Error
Corrections – an Amendment of GASB Statement No. 62 (Continued)
This Statement requires disclosure in notes to financial statements of descriptive information about
accounting changes and error corrections, such as their nature. In addition, information about the
quantitative effects on beginning balances of each accounting change and error correction should be
disclosed by reporting unit in a tabular format to reconcile beginning balances as previously reported to
beginning balances as restated.
Furthermore, this Statement addresses how information that is affected by a change in accounting
principle or error correction should be presented in required supplementary information (RSI) and
supplementary information (SI). For periods that are earlier than those included in the basic financial
statements, information presented in RSI or SI should be restated for error corrections, if practicable, but
not for changes in accounting principles.
GASB Statement No. 100 is effective for reporting periods beginning after June 15, 2023. Earlier
application is encouraged.
Information provided above was obtained from www.gasb.org.
Accounting Standard Update – GASB Statement No. 101 – Compensated Absences
The objective of this Statement is to better meet the information needs of financial statement users by
updating the recognition and measurement guidance for compensated absences. That objective is
achieved by aligning the recognition and measurement guidance under a unified model and by amending
certain previously required disclosures.
This Statement requires that liabilities for compensated absences be recognized for (1) leave that has not
been used and (2) leave that has been used but not yet paid in cash or settled through noncash means. A
liability should be recognized for leave that has not been used if (a) the leave is attributable to services
already rendered, (b) the leave accumulates, and (c) the leave is more likely than not to be used for time
off or otherwise paid in cash or settled through noncash means. Leave is attributable to services already
rendered when an employee has performed the services required to earn the leave. Leave that
accumulates is carried forward from the reporting period in which it is earned to a future reporting
period during which it may be used for time off or otherwise paid or settled. In estimating the leave that
is more likely than not to be used or otherwise paid or settled, a government should consider relevant
factors such as employment policies related to compensated absences and historical information about
the use or payment of compensated absences. However, leave that is more likely than not to be settled
through conversion to defined benefit postemployment benefits should not be included in a liability for
compensated absences.
This Statement requires that a liability for certain types of compensated absences – including parental
leave, military leave, and jury duty leave – not be recognized until the leave commences. This Statement
also requires that a liability for specific types of compensated absences not be recognized until the leave
is used.
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City of Mendota Heights
Emerging Issues
22
Accounting Standard Update – GASB Statement No. 101 – Compensated Absences (Continued)
This Statement also establishes guidance for measuring a liability for leave that has not been used,
generally using an employee's pay rate as of the date of the financial statements. A liability for leave that
has been used but not yet paid or settled should be measured at the amount of the cash payment or
noncash settlement to be made. Certain salary-related payments that are directly and incrementally
associated with payments for leave also should be included in the measurement of the liabilities.
With respect to financial statements prepared using the current financial resources measurement focus,
this Statement requires that expenditures be recognized for the amount that normally would be
liquidated with expendable available financial resources.
This Statement amends the existing requirement to disclose the gross increases and decreases in a
liability for compensated absences to allow governments to disclose only the net change in the liability
(as long as they identify it as a net change). In addition, governments are no longer required to disclose
which governmental funds typically have been used to liquidate the liability for compensated absences.
GASB Statement No. 101 is effective for reporting periods beginning after December 15, 2023. Earlier
application is encouraged.
Information provided above was obtained from www.gasb.org.
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City of Mendota Heights
Annual Report and Basic
Financial Statements
December 31, 2022
City Council | Tuesday, June 20, 2023 | Page 110 of 225
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 Basic Financial Statements 29
Required Supplementary Information
Schedule of Changes in Total OPEB Liability and Related Ratios 62
Schedule of City's Proportionate Share of Net Pension Liability General
Employees Retirement Fund 63
Schedule of City's Proportionate Share of Net Pension Liability Public
Employees Police and Fire Retirement Fund 63
Schedule of City Contributions General Employees Retirement Fund 64
Schedule of City Contributions Public Employees Police and Fire
Retirement Fund 64
Notes to Required Supplementary Information 65
Supplementary Information
Combining Balance Sheet – Nonmajor Governmental Funds 74
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
– Nonmajor Governmental Funds 78
Combining Statement of Net Position – Internal Service Funds 84
Combining Statement of Revenues, Expenses, and Changes in Net Position
– Internal Service Funds 85
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City of Mendota Heights
Table of Contents
Supplementary Information (Continued)
Combining Statement of Cash Flows – Internal Service Funds 86
Detailed Schedule of Revenues, Expenditures, and Changes in Fund Balance
– Budget and Actual – General Fund 87
Schedule of Expenditures of Federal Awards 90
Notes to Schedule of Expenditures of Federal Awards 91
Report on Internal Control over Financial Reporting and on Compliance
and Other Matters Based on an Audit of Financial Statements Performed
in Accordance with Government Auditing Standards 93
Report on Compliance for each Major Federal Program and on Internal Control
Over Compliance Required by the Uniform Guidance 95
Schedule of Findings and Questioned Costs 98
Minnesota Legal Compliance 101
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1
City of Mendota Heights
Elected Officials and Administration
December 31, 2022
Elected Officials Position Term Expires
Stephanie Levine Mayor December 31, 2022
Joel Paper Council Member December 31, 2024
Jay Miller Council Member December 31, 2024
Ultan Duggan Council Member December 31, 2022
John Mazzitello Council Member December 31, 2022
Administration
Cheryl Jacobson City Administrator Appointed
Christine Lusian City Clerk Appointed
Kristen Schabacker Finance Director Appointed
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2
Independent Auditor's Report
Honorable Mayor and Members
of the City Council
City of Mendota Heights
Mendota Heights, Minnesota
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-
type activities, each major fund, and the aggregate remaining fund information of the City of Mendota
Heights, Minnesota, as of and for the year ended December 31, 2022, and the related notes to basic
financial statements, which collectively comprise the City's basic financial statements as listed in the
Table of Contents.
In our opinion, the financial statements referred to 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, 2022, 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.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America (GAAS). Our responsibilities under those standards are further described in the Auditor's
Responsibilities for the Audit of the Financial Statements section of our report. We are required to be
independent of the City of Mendota Heights and to meet our other ethical responsibilities, in accordance
with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our audit opinions.
Emphasis of Matter – Implementation of GASB 87
The City has adopted new accounting guidance, Governmental Accounting Standards Board (GASB)
Statement No. 87, Leases. Our opinion is not modified with respect to this matter.
Responsibilities of Management for the Financial Statements
The City of Mendota Heights' management is responsible for the preparation and fair presentation of the
financial statements in accordance with accounting principles generally accepted in the United States of
America, and for the design, implementation, and maintenance of internal control relevant to the
preparation and fair presentation of financial statements that are free from material misstatement,
whether due to fraud or error.
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3
Responsibilities of Management for the Financial Statements (Continued)
In preparing the financial statements, management is required to evaluate whether there are conditions
or events, considered in the aggregate, that raise substantial doubt about the City of Mendota Heights'
ability to continue as a going concern for one year beyond the financial statement date, including any
currently known information that may raise substantial doubt shortly thereafter.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor's report that
includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance
and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government
Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Misstatements are considered material if there is a substantial likelihood that, individually or in the
aggregate, they would influence the judgment made by a reasonable user based on the financial
statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and disclosures in
the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of City of Mendota Heights' internal control. Accordingly, no such
opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about City of Mendota Heights' ability to continue as a going concern
for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit, significant audit findings, and certain internal control–related
matters that we identified during the audit.
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4
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management's
Discussion and Analysis, which follows this report letter, and Required Supplementary information as
listed in the Table of Contents be presented to supplement the basic financial statements. Such
information is the responsibility of management and, although not a part of the basic financial
statements, is required by the 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.
Supplementary 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 are not a required part of the basic financial statements. The Schedule of Expenditures of
Federal Awards is presented for purposes of additional analysis as required by Title 2 U.S. Code of
Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards and is also not a required part of the basic financial statements.
Such information is the responsibility of management and was derived from and relates directly to the
underlying accounting and other records used to prepare the basic financial statements. The information
has been subjected to the auditing procedures applied in the audit of the basic financial statements and
certain additional procedures, including comparing and reconciling such information directly to the
underlying accounting and other records used to prepare the basic financial statements or to the basic
financial statements themselves, and other additional procedures in accordance with auditing standards
generally accepted in the United States of America. In our opinion, the accompanying supplementary in
formation and the Schedule of Expenditures of Federal Awards are fairly stated, in all material respects,
in relation to the basic financial statements as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated June 1, 2023,
on our consideration of the City of Mendota Heights' internal control over financial reporting and on our
tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and
other matters. The purpose of that report is solely to describe the scope of our testing of internal control
over financial reporting and compliance and the results of that testing, and not to provide an opinion on
the effectiveness of internal control over financial reporting or on compliance. That report is an integral
part of an audit performed in accordance with Government Auditing Standards in considering the City of
Mendota Heights' internal control over financial reporting and compliance.
Minneapolis, Minnesota
June 1, 2023
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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, 2022.
FINANCIAL AND DEVELOPMENT HIGHLIGHTS
The assets and deferred outflows of resources of the City exceeded liabilities and deferred inflows of
resources at the close of the most recent year by $56,946,611 (net position). Of this amount,
$14,139,755 (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 $3,391,238. Governmental activities resulted in an increase of
net position of $2,999,502. Business activities had net position increase of $391,736.
As of the close of the current year, the City's governmental funds reported a combined ending fund
balance of $20,551,428, an increase of $124,969 from the prior year.
At the end of the year the General Fund had an unassigned fund balance of $11,109,344, or 104.39% 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 basic financial statements. This report
also contains other supplementary information in addition to the basic financial statements themselves.
Government-Wide Financial Statements
The government-wide financial statements on pages 16 and 17 are designed to provide readers with a
broad overview of the City's finances, in a manner similar to a private-sector business.
The Statement of Net Position presents information on all of the City's assets, deferred outflows of
resources, liabilities, and deferred inflows of resources, with the difference reported as net position.
Over time, increases or decreases in net position may serve as a useful indicator of whether the financial
position of the City is improving or deteriorating.
The Statement of Activities presents information showing how the City's net position changed during
the most recent year. All changes in net position are reported as soon as the underlying event giving rise
to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are
reported in this statement for some items that will only result in cash flows in future periods (e.g.,
uncollected taxes and earned but unused vacation leave).
Both of the government-wide financial statements distinguish functions of the City that are principally
supported by taxes and intergovernmental revenues (governmental activities) and from other functions
that are intended to recover all or a significant portion of their costs through user fees and charges
(business-type activities). The governmental activities of the City include general government, public
safety, and public works. The business-type activities of the City include sewer and storm water.
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City of Mendota Heights
Management’s Discussion and Analysis
6
OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)
Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been
segregated for specific activities or objectives. The City, like other state and local governments, uses
fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of
the funds of the City can be divided into two categories: Governmental Funds and Proprietary Funds.
Governmental Funds
Governmental Funds are used to account for essentially the same functions reported as governmental
activities in the government-wide financial statements. However, unlike the government-wide financial
statements, governmental fund financial statements focus on near-term inflows and outflows of
spendable resource, as well as on balances of spendable resources available at the end of the year. Such
information may be useful in evaluating a government's near-term financial requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statement. By doing
so, readers may better understand the long-term impact of the City's near-term financial decisions. Both
the Governmental Fund Balance Sheet and Governmental Fund Statement of Revenues, Expenditures
and Changes in Fund Balances provide a reconciliation to facilitate this comparison between
governmental funds and governmental activities.
The City maintains 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.
The City adopts an annual appropriated budget for its General Fund. A budgetary comparison statement
has been provided for those funds to demonstrate compliance with this budget.
The basic governmental fund financial statements can be found on pages 18 through 25 of this report.
Proprietary Funds
The City maintains two enterprise funds and two internal service funds as a part of its proprietary fund
type. Enterprise funds are used to report the same functions presented as business-type activities in the
government-wide financial statements. The City uses enterprise funds to account for its sewer and storm
water operations.
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City of Mendota Heights
Management’s Discussion and Analysis
7
OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)
Proprietary Funds (Continued)
Proprietary Funds provide the same type of information as the government-wide financial statements,
only in more detail. The proprietary fund financial statements provide separate information for the
following funds:
Enterprise Funds
Sewer Utility Fund
Storm Water Utility Fund
Internal service funds are an accounting device used to accumulate and allocate costs internally among
the City's various functions. The City uses internal service funds to account for compensated absences
and city hall functions. The internal service funds are combined into a single, aggregated presentation in
the proprietary fund financial statements. Individual fund data for the internal service funds is provided
in the form of combining statements elsewhere in this report.
The basic proprietary fund financial statements can be found on pages 26 through 28 of this report.
Notes to Basic 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 basic financial statements can be found
on pages 29 through 60 of this report.
Other Information
The combining statements referred to earlier in connection with non-major governmental funds are
presented immediately following the required supplementary information on budgetary comparisons.
Combining and individual fund statements and schedules can be found on pages 74 through 89 of this
report.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
As noted earlier, net position may serve over time as a useful indicator of a government's financial
position. In the case of the City, assets and deferred outflows of resources exceeded liabilities and
deferred inflows of resources by $56,946,611 at the close of the most recent year.
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City of Mendota Heights
Management’s Discussion and Analysis
8
GOVERNMENT-WIDE FINANCIAL ANALYSIS (CONTINUED)
The largest portion of the City's net position ($36,241,470 or 63.64%) reflects its investment in capital
assets (e.g., land, buildings, machinery and equipment, sewer main lines and storm sewers and
infrastructure) less any related debt used to acquire those assets that is still outstanding. The City uses
these capital assets to provide services to citizens; consequently, these assets are not available for future
spending. Although the City's investment in its capital assets is reported net of related debt, it should be
noted that the resources needed to repay this debt must be provided from other sources, since the capital
assets themselves cannot be used to liquidate these liabilities.
Net Position
2022 2021 2022 2021 2022 2021
Assets
Current and other assets 26,832,745$ 25,671,612$ 2,658,383$ 2,406,743$ 29,491,128$ 28,078,355$
Capital assets 43,936,974 40,712,380 14,837,512 15,060,474 58,774,486 55,772,854
Deferred outflows of resources related to
pensions and OPEB 6,495,687 3,502,928 50,886 65,522 6,546,573 3,568,450
Total assets and deferred outflows of resources 77,265,406$ 69,886,920$ 17,546,781$ 17,532,739$ 94,812,187$ 87,419,659$
Liabilities
Long-term liabilities outstanding 31,916,926$ 24,834,269$ 175,829$ 104,073$ 32,092,755$ 24,938,342$
Other liabilities 3,997,301 4,002,693 183,662 558,012 4,180,963 4,560,705
Deferred inflows of resources related to pensions,
OPEB and leases 1,589,386 4,287,667 2,472 77,572 1,591,858 4,365,239
Total liabilities and deferred inflows of resources 37,503,613$ 33,124,629$ 361,963$ 739,657$ 37,865,576$ 33,864,286$
Net Position
Net investment in capital assets 21,403,958$ 18,715,996$ 14,837,512$ 15,060,474$ 36,241,470$ 33,776,470$
Restricted 6,565,386 5,352,281 - - 6,565,386 5,352,281
Unrestricted 11,792,449 12,694,014 2,347,306 1,732,608 14,139,755 14,426,622
Total net position 39,761,793$ 36,762,291$ 17,184,818$ 16,793,082$ 56,946,611$ 53,555,373$
Governmental Activities Business-Type Activities Totals
A portion of the of the City's net position ($6,565,386) represents resources that are subject to external
restrictions on how they may be used. The remaining balance of unrestricted net position ($14,139,755)
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.
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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 $2,999,502. Key elements of this increase
are as follows:
City's Changes in Net Position
2022 2021 2022 2021 2022 2021
Revenues
Program revenues
Charges for services 2,306,824$ 2,156,689$ 3,018,672$ 2,983,508$ 5,325,496$ 5,140,197$
Operating grants and contributions 1,330,988 907,269 3,818 - 1,334,806 907,269
Capital grants and contributions 2,215,900 1,701,832 - - 2,215,900 1,701,832
General revenues
Taxes 11,223,593 10,511,686 - - 11,223,593 10,511,686
Tax Increment 248,592 151,674 - - 248,592 151,674
Unrestricted investment earnings (262,196) (45,576) (19,893) (2,922) (282,089) (48,498)
Gain on sale of asset 92,313 - - (187) 92,313 (187)
Total revenues 17,156,014 15,383,574 3,002,597 2,980,399 20,158,611 18,363,973
Expenses
General government 2,607,449 2,148,828 - - 2,607,449 2,148,828
Public safety 5,748,716 4,844,510 - - 5,748,716 4,844,510
Public works 5,320,230 5,037,045 - - 5,320,230 5,037,045
Economic Development 226,594 139,444 - - 226,594 139,444
Interest on long-term debt 505,080 560,076 - - 505,080 560,076
Sewer - - 2,169,268 2,273,926 2,169,268 2,273,926
Storm water - - 190,036 404,573 190,036 404,573
Total expenses 14,408,069 12,729,903 2,359,304 2,678,499 16,767,373 15,408,402
Increase (decrease) in net
position before transfers 2,747,945 2,653,671 643,293 301,900 3,391,238 2,955,571
Transfers 251,557 (350,455) (251,557) 350,455 - -
Increase (decrease) in net position 2,999,502 2,303,216 391,736 652,355 3,391,238 2,955,571
Net position - beginning 36,762,291 34,459,075 16,793,082 16,140,727 53,555,373 50,599,802
Net position - ending 39,761,793$ 36,762,291$ 17,184,818$ 16,793,082$ 56,946,611$ 53,555,373$
Governmental Activities Business-Type Activities Totals
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City of Mendota Heights
Management’s Discussion and Analysis
10
GOVERNMENT-WIDE FINANCIAL ANALYSIS (CONTINUED)
Governmental Activities (Continued)
Below are specific graphs which provide comparisons of the governmental activities revenues and
expenditures:
Charges for
Services
13%
Operating Grants
and Contributions
8%
Capital Grants and
Contributions
13%
Taxes
65%Unrestricted
Investment
Earnings
-1%
Gain on sale of
capital assets
0%
General
Government
20%
Public Safety
40%
Public Works
37%Interest and Fees on
Long-Term Debt
3%
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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 $391,736. Below are graphs showing the business-type
activities revenue and expense comparisons:
Charges for
Services
99%
Unrestricted
Investment
Earnings
-1%
Sewer
92%
Storm Water
8%
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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
$20,551,428. Nonspendable fund balances are already allocated for prepaid items ($359,151) and
inventory ($21,623). Approximately 29.30% ($6,021,263) 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 $1,219,096
(5.93%). This represents fund balance that is to be used for the water system, Par 3 Golf Course, and
civil defense needs. The City has assigned fund balance of $2,190,588 (10.66%). This number
represents the fund balances for the various reserve accounts. The remaining category of fund balance is
the unassigned fund balance. The City has $10,739,707 of unassigned fund balance which is
approximately 52.26% of the combined governmental fund balance at December 31, 2022.
The General Fund increased by $136,088 in 2022. Revenues were greater than anticipated and
expenditures were lower than budgeted amounts.
The Special Assessments Debt Service Fund decreased by $787,999 in 2022. This fund accounted for
debt service payments for prior street improvement projects that were financed through the issuance of
bonds. This fund paid off the 2013A GO Improvement Bonds on February 1, 2022.
The Street Capital Project Fund increased by $827,071. This fund accounted for the costs and resources
associated with the Centre Pointe street project.
The nonmajor governmental funds decreased by $50,191. These funds received revenues from water
surcharges, Par 3 Golf Course, and park dedication fees. Nonmajor funds account for the Special Park,
Civil Defense, Par 3 Golf Course, American Rescue Plan, and Street Light District activity. In 2022, the
City spent the funds received from the American Rescue Plan to reduce the bond issue needed for the
Centre Pointe street project. The City also has nonmajor funds for future purchases of equipment,
facility needs and minor infrastructure projects.
Proprietary Funds
The City's proprietary funds provide the same type of information found in the government-wide
financial statements, but in more detail. The unrestricted net position in the respective Proprietary Funds
are sewer $1,629,497 and storm water $717,809. The Sewer Utility Fund had an increase in net position
in 2022 of $197,787 and the Storm Water Utility Fund had an increase in net position in 2022 of
$193,949.
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City of Mendota Heights
Management’s Discussion and Analysis
13
BUDGETARY HIGHLIGHTS
General Fund
The General Fund budget was not amended during 2022.
During the year, revenues exceeded budgeted estimates by $533,945, while expenditures were less than
anticipated by $44,611.
The General Fund experienced greater than budgeted revenues in some categories. The City received
higher than budgeted amounts for licenses and permits. Intergovernmental revenue was also greater than
anticipated. Miscellaneous revenue exceeded budgeted amounts, in part due to the City's conservative
philosophy used when budgeting for revenues that are not consistent from year to year.
The General Fund expenditures were lower than budgeted. The Public Safety function expenditures
were less than what was budgeted, primarily due to a number of vacant employee positions. This
function resulted in a majority of the under budget spending.
Overall, the General Fund balance increased by $136,088, an increase of approximately 1.20%.
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, 2022, amounts to $58,774,486 (net of accumulated depreciation/amortization). This
investment in capital assets includes land, buildings, machinery and equipment, sewer main lines and
storm sewers and infrastructure.
Capital Assets
(Net of Depreciation/Amortization)
2022 2021 2022 2021 2022 2021
Land 8,790,170$ 8,790,170$ -$ -$ 8,790,170$ 8,790,170$
Construction in progress 5,630,155 1,436,410 - 235,513 5,630,155 1,671,923
Buildings and structures 8,349,112 8,346,408 - - 8,349,112 8,346,408
Machinery and equipment 2,542,495 2,748,817 264,010 292,763 2,806,505 3,041,580
Leased equipment 544,461 - - 544,461 -
Other improvements 1,141,137 969,135 - - 1,141,137 969,135
Sewer main lines and
Storm sewers - - 14,573,502 14,532,198 14,573,502 14,532,198
Infrastructure 16,939,444 18,421,441 - - 16,939,444 18,421,441
Total capital assets 43,936,974$ 40,712,381$ 14,837,512$ 15,060,474$ 58,774,486$ 55,772,855$
Governmental Activities Business-Type Activities Totals
Additional information on the City's capital assets can be found in Note 5.
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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 $21,645,000, a decrease
of $885,000 from 2021. $21,645,000 for general obligation (G.O.) improvement debt which is supported
in part by special assessments.
Outstanding Debt
G.O. Improvement Bonds, G.O. Bonds and Revenue Bonds:
2022 2021
G.O. Improvement Bonds 15,150,000$ 15,440,000$
G.O. Bonds 6,495,000 7,090,000
Total 21,645,000$ 22,530,000$
Governmental Activities
The City maintains a AAA rating from Standard & Poor's.
Minnesota Statutes limit the amount of G.O. debt a Minnesota city may issue to 2% of total estimated
market value. The current debt limitation for the City is $57,546,085. Of the City's outstanding debt,
$6,495,000 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 2022, the taxable market value for the City was $2,877,304,274. This represents an increase of
15.12% from 2021. The City is expecting an increase in taxable market value for 2023.
These factors were considered in preparing the City's budget for 2023.
Requests for Information
This financial report is designed to provide a general overview of the City's finances for all those with
an interest in the government's finances. Questions concerning any of the information provided in this
report or requests for additional financial information should be addressed to the Director of Finance,
1101 Victoria Curve, Mendota Heights, Minnesota 55118.
City Council | Tuesday, June 20, 2023 | Page 126 of 225
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15
BASIC FINANCIAL STATEMENTS
City Council | Tuesday, June 20, 2023 | Page 128 of 225
See notes to basic financial statements. 16
City of Mendota Heights
Statement of Net Position
December 31, 2022
Governmental
Activities
Business-Type
Activities Total
Assets
Cash and investments
(including cash equivalents)21,388,286$ 1,760,552$ 23,148,838$
Property tax receivable 67,994 - 67,994
Accounts receivable 29,945 731,604 761,549
Interest receivable 26,486 1,514 28,000
Due from other governments 1,117,505 4,706 1,122,211
Special assessments receivable
Delinquent 7,013 6,425 13,438
Deferred 2,304,987 28,564 2,333,551
Lease receivable 1,405,256 - 1,405,256
Inventories 21,623 - 21,623
Prepaid items 367,550 125,018 492,568
Land held for resale 96,100 - 96,100
Capital assets not being depreciated
Land and improvements 8,790,170 - 8,790,170
Construction in progress 5,630,155 - 5,630,155
Capital assets being depreciated, net of accumulated depreciation
Infrastructure 16,939,444 14,573,502 31,512,946
Buildings and structures 8,349,112 - 8,349,112
Other improvements 1,141,137 - 1,141,137
Leased equipment 544,461 - 544,461
Machinery and equipment 2,542,495 264,010 2,806,505
Total assets 70,769,719 17,495,895 88,265,614
Deferred Outflows of Resources
Deferred outflows of resources related to pensions 5,775,767 50,397 5,826,164
Deferred outflows of resources related to OPEB 719,920 489 720,409
Total deferred outflows of resources 6,495,687 50,886 6,546,573
Total assets and deferred outflows of resources 77,265,406$ 17,546,781$ 94,812,187$
Liabilities
Accounts and contracts payable 791,481$ 11,552$ 803,033$
Deposits payable - 134,555 134,555
Due to other governments 63,793 3,889 67,682
Salaries and benefits payable 224,537 7,184 231,721
Interest payable 234,345 - 234,345
Developers' escrow deposits 7,295 - 7,295
Bond principal payable
Payable within one year 2,095,000 - 2,095,000
Payable after one year 20,515,004 - 20,515,004
Lease payable
Payable within one year 95,847 - 95,847
Payable after one year 448,388 - 448,388
Compensated absences payable
Payable within one year 485,003 26,482 511,485
Payable after one year 227,144 12,084 239,228
Total other post employment benefits (OPEB) payable 1,231,683 7,948 1,239,631
Net pension liability 9,494,707 155,797 9,650,504
Total liabilities 35,914,227 359,491 36,273,718
Deferred Inflows of Resources
Deferred inflows of resources related to pensions 174,369 2,207 176,576
Deferred inflows of resources related to leases 1,405,256 - 1,405,256
Deferred inflows of resources related to OPEB 9,761 265 10,026
Total deferred inflows of resources 1,589,386 2,472 1,591,858
Net Position
Net investment in capital assets 21,403,958 14,837,512 36,241,470
Restricted for
Police forfeiture 23,136 - 23,136
Debt service 5,684,555 - 5,684,555
Street light maintenance 33,970 - 33,970
Park dedication 798,260 - 798,260
Tax increment 25,465 - 25,465
Unrestricted 11,792,449 2,347,306 14,139,755
Total net position 39,761,793 17,184,818 56,946,611
Total liabilities, deferred inflows of resources, and net position 77,265,406$ 17,546,781$ 94,812,187$
City Council | Tuesday, June 20, 2023 | Page 129 of 225
See notes to basic financial statements. 17 Program RevenuesExpensesCharges for ServicesOperating Grants and ContributionsCapital Grants and ContributionsGovernmental ActivitiesBusiness-Type ActivitiesTotalGovernmental activitiesGeneral government2,607,449$ 199,430$ 416,934$ -$ (1,991,085)$ -$ (1,991,085)$ Public safety5,748,716 623,261 429,961 - (4,695,494) - (4,695,494) Public works5,320,230 1,484,133 484,093 2,215,900 (1,136,104) - (1,136,104) Economic development226,594 - - - (226,594) - (226,594) Interest on long-term debt505,080 - - - (505,080) - (505,080) Total governmental activities14,408,069 2,306,824 1,330,988 2,215,900 (8,554,357) - (8,554,357) Business-type activitiesSewer2,169,268 2,431,376 - - - 262,108 262,108 Storm water190,036 587,296 3,818 - - 401,078 401,078 Total business-type activities2,359,304 3,018,672 3,818 - - 663,186 663,186 Total governmental and business-type activities16,767,373$ 5,325,496$ 1,334,806$ 2,215,900$ (8,554,357) 663,186 (7,891,171) General revenuesProperty taxes11,223,593 - 11,223,593 Tax increments248,592 - 248,592 Unrestricted investment earnings(262,196) (19,893) (282,089) Gain on sale of asset92,313 - 92,313 Total general revenues11,302,302 (19,893) 11,282,409 Transfers251,557 (251,557) - Change in net position2,999,502 391,736 3,391,238 Net position - beginning36,762,291 16,793,082 53,555,373 Net position - ending39,761,793$ 17,184,818$ 56,946,611$ Functions/ProgramsNet (Expense) Revenues and Changes in Net PositionCity of Mendota HeightsStatement of Activities Year Ended December 31, 2022City Council | Tuesday, June 20, 2023 | Page 130 of 225
See notes to basic financial statements. 18
December 31, 2022
Capital Projects
General Fund
Special
Assessments
Debt Service
Street Capital
Projects
Assets
Cash and investments
(including cash equivalents) 11,192,448$ 2,675,152$ 1,191,288$
Taxes receivable - delinquent 54,132 8,413 -
Special assessments receivable
Delinquent 2,353 4,660 -
Deferred 20,147 2,155,244 118,503
Accounts receivable 14,647 - -
Interest receivable 15,933 3,268 1,462
Due from other funds - - -
Due from other governments 366,560 67,941 651,706
Lease receivables 1,405,256 - -
Inventories 21,623 - -
Prepaid items 354,338 - -
Land held for resale - - -
Total assets 13,447,437$ 4,914,678$ 1,962,959$
Liabilities
Accounts and contracts payable 189,344$ 2,996$ 430,647$
Due to other funds - - -
Due to other governments 62,860 - -
Salaries and benefits payable 220,745 - -
Developers' escrow deposits 7,295 - -
Total liabilities 480,244 2,996 430,647
Deferred Inflows of Resources
Unavailable revenue - property taxes 54,132 8,413 -
Unavailable revenue - grants - - 644,570
Unavailable revenue - leases 1,405,256 - -
Unavailable revenue - special assessments 22,500 2,159,904 118,503
Total deferred inflows of resources 1,481,888 2,168,317 763,073
Fund Balances
Nonspendable 375,961 - -
Restricted - 2,743,365 769,239
Committed - - -
Assigned - - -
Unassigned 11,109,344 - -
Total fund balances 11,485,305 2,743,365 769,239
Total liabilities, deferred inflows of
resources, and fund balances 13,447,437$ 4,914,678$ 1,962,959$
City of Mendota Heights
Balance Sheet - Governmental Funds
City Council | Tuesday, June 20, 2023 | Page 131 of 225
19
Other
Governmental
Funds
Total
Governmental
Funds
5,574,670$ 20,633,558$
5,449 67,994
- 7,013
11,093 2,304,987
11,088 25,735
5,670 26,333
354,454 354,454
31,138 1,117,345
- 1,405,256
- 21,623
4,813 359,151
96,100 96,100
6,094,475$ 26,419,549$
168,494$ 791,481$
354,454 354,454
836 63,696
630 221,375
- 7,295
524,414 1,438,301
5,449 67,994
- 644,570
- 1,405,256
11,093 2,312,000
16,542 4,429,820
4,813 380,774
2,508,659 6,021,263
1,219,096 1,219,096
2,190,588 2,190,588
(369,637) 10,739,707
5,553,519 20,551,428
6,094,475$ 26,419,549$
City Council | Tuesday, June 20, 2023 | Page 132 of 225
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See notes to basic financial statements. 21
City of Mendota Heights
Reconciliation of the Balance Sheet to
the Statement of Net Position - Governmental Funds
December 31, 2022
Total fund balances - governmental funds 20,551,428$
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 76,291,104
Less accumulated depreciation/amortization (32,918,697)
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 (21,645,000)
Lease payable (544,235)
Unamortized bond premium (965,004)
OPEB payable (1,225,824)
Net pension liability (9,420,793)
Deferred outflows of resources and deferred inflows of resources are created as a result of various
differences related to pensions and OPEB that are not recognized in the governmental funds.
Deferred inflows of resources related to pensions (173,322)
Deferred outflows of resources related to pensions 5,751,857
Deferred outflows of resources related to OPEB 719,560
Deferred inflows of resources related to OPEB (9,566)
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 67,994
Special assessments 7,013
Revenues in the Statement of Activities that do not provide current financial resources are not
reported as revenues in the funds.
Deferred special assessments 2,304,987
Deferred grants 644,570
Governmental funds do not report a liability for accrued interest until due and payable.(234,345)
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. 560,066
39,761,793$ Total net position - governmental activities
Amounts reported for governmental activities in the Statement of Net Position are different because:
City Council | Tuesday, June 20, 2023 | Page 134 of 225
See notes to basic financial statements. 22
Capital Projects
General Fund
Special
Assessments
Debt Service
Street Capital
Projects
Revenues
Property taxes 8,935,145$ 1,423,286$ -$
Tax increments - - -
Special assessments - 375,774 306,728
Licenses and permits 731,480 - -
Intergovernmental 735,603 - 680,886
Charges for services 641,490 - -
Fines and forfeitures 83,168 1,598 -
Miscellaneous revenue
Investment income (132,443) (42,939) (19,213)
Other 178,347 - 507,536
Total revenues 11,172,790 1,757,719 1,475,937
Expenditures
Current
General government 2,066,147 - -
Public safety 5,106,234 - -
Public works 3,172,510 - -
Economic development - - -
Debt service
Principal 45,017 1,360,000 -
Interest and other charges - 405,250 -
Capital outlay
General government 30,300 - -
Public safety 210,926 - -
Public works 10,650 - 3,805,428
Total expenditures 10,641,784 1,765,250 3,805,428
Excess of revenues over (under) expenditures 531,006 (7,531) (2,329,491)
Other Financing Sources (Uses)
Proceeds from sale of capital asset 103,076 - -
Issuance of debt - 1,880,000 -
Bond premium - 133,356 -
Proceeds from capital leases 210,926 - -
Refunded debt payment - (810,000) -
Transfers in 47,550 - 3,197,475
Transfers out (756,470) (1,983,824) (40,913)
Total other financing sources (uses) (394,918) (780,468) 3,156,562
Net change in fund balances 136,088 (787,999) 827,071
Fund Balances
Beginning of year 11,349,217 3,531,364 (57,832)
End of year 11,485,305$ 2,743,365$ 769,239$
City of Mendota Heights
Statement of Revenues, Expenditures, and
Changes in Fund Balances - Governmental Funds
Year Ended December 31, 2022
City Council | Tuesday, June 20, 2023 | Page 135 of 225
23
Other
Governmental
Funds
Total
Governmental
Funds
884,195$ 11,242,626$
248,592 248,592
- 682,502
- 731,480
1,223,361 2,639,850
399,103 1,040,593
323 85,089
(65,586) (260,181)
295,387 981,270
2,985,375 17,391,821
127,398 2,193,545
147,302 5,253,536
279,502 3,452,012
226,594 226,594
595,000 2,000,017
225,381 630,631
- 30,300
373,403 584,329
848,725 4,664,803
2,823,305 19,035,767
162,070 (1,643,946)
- 103,076
- 1,880,000
- 133,356
- 210,926
- (810,000)
1,177,440 4,422,465
(1,389,701) (4,170,908)
(212,261) 1,768,915
(50,191) 124,969
5,603,710 20,426,459
5,553,519$ 20,551,428$
City Council | Tuesday, June 20, 2023 | Page 136 of 225
See notes to basic financial statements. 24
124,969$
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 5,292,439
Depreciation expense (2,398,903)
Loss on disposal of capital assets (10,763)
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. (429,271)
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. 69,509
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. 2,000,017
Refunding bond payments are recognized as other financing uses in the governmental funds but
as an increase in net assets in the Statement of Activities. 810,000
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. (133,356)
Premiums are recognized when debt is issued in the governmental funds but amortized over the
life of the debt in the Statement of Activities. 124,736
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. 815
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 (1,880,000)
Lease payable (210,926)
Revenues in the Statement of Activities that do not provide current financial resources are not
reported as revenues in the funds. (326,105)
Activities of the internal service funds are presented separately from the governmental funds.
However, the functions, from a government-wide perspective, are governmental. (33,659)
2,999,502$ Change in net position - governmental activities
Net change in fund balances - governmental funds
Amounts reported for governmental activities in the Statement of Activities are different because:
City of Mendota Heights
Reconciliation of the Statement of Revenues,
Expenditures, and Changes in Fund Balances to
the Statement of Activities - Governmental Funds
Year Ended December 31, 2022
City Council | Tuesday, June 20, 2023 | Page 137 of 225
See notes to basic financial statements. 25
Budget and Actual - General Fund
Statement of Revenues, Expenditures, and
Changes in Fund Balance -
Budget and Actual - General Fund
Year Ended December 31, 2022
Budgeted
Amounts Variance with
Original Actual
and Final Amounts
Revenues
Property taxes 8,849,981$ 8,935,145$ 85,164$
Licenses and permits 329,200 731,480 402,280
Intergovernmental 547,500 735,603 188,103
Charges for services 675,164 641,490 (33,674)
Fines and forfeitures 102,000 83,168 (18,832)
Miscellaneous revenues
Investment income 30,000 (132,443) (162,443)
Other 105,000 178,347 73,347
Total revenues 10,638,845 11,172,790 533,945
Expenditures
Current
General government 1,979,540 2,066,147 86,607
Public safety 5,479,010 5,106,234 (372,776)
Public works 3,227,845 3,172,510 (55,335)
Debt service:
Principal - 45,017 45,017
Capital outlay
General government - 30,300 30,300
Public safety - 210,926 210,926
Public works - 10,650 10,650
Total expenditures 10,686,395 10,641,784 (44,611)
Excess of revenues over (under) expenditures (47,550) 531,006 578,556
Other Financing Sources (Uses)
Proceeds from sale of capital asset - 103,076 103,076
Issuance of debt - 210,926 210,926
Transfers in 47,550 47,550 -
Transfers out - (756,470) (756,470)
Total other financing sources (uses)47,550 (394,918) (442,468)
Net change in fund balance -$ 136,088 136,088$
Fund Balance
Beginning of year 11,349,217
End of year 11,485,305$
Final Budget -
Over (Under)
City Council | Tuesday, June 20, 2023 | Page 138 of 225
See notes to basic financial statements. 26
City of Mendota Heights
Statement of Net Position - Proprietary Funds
December 31, 2022
Sewer Utility
Storm Water
Utility Total
Internal
Service Funds
Assets
Current assets
Cash and investments 1,033,281$ 727,271$ 1,760,552$ 754,728$
Special assessment receivable
Delinquent 6,425 - 6,425 -
Deferred 28,564 - 28,564 -
Accounts receivable 583,816 147,788 731,604 4,210
Interest receivable 564 950 1,514 153
Due from other governments 888 3,818 4,706 160
Prepaid expenses 125,018 - 125,018 8,399
Total current assets 1,778,556 879,827 2,658,383 767,650
Noncurrent assets
Capital assets not being depreciated
Land - - - 25,000
Capital assets being depreciated
Buildings - - - 2,279,024
Sewer main lines and storm sewers 15,582,300 5,444,394 21,026,694 -
Improvements other than buildings - - - 40,781
Machinery and equipment 476,246 - 476,246 66,969
Total capital assets 16,058,546 5,444,394 21,502,940 2,411,774
Less accumulated depreciation (5,960,331) (705,097) (6,665,428) (1,847,207)
Net capital assets 10,098,215 4,739,297 14,837,512 564,567
Total assets 11,876,771 5,619,124 17,495,895 1,332,217
Deferred Outflows of Resources
Deferred outflows of resources related to pensions 42,260 8,137 50,397 23,910
Deferred outflows of resources related to OPEB 412 77 489 360
Total deferred outflows of resources 42,672 8,214 50,886 24,270
Total assets and deferred outflows of resources 11,919,443$ 5,627,338$ 17,546,781$ 1,356,487$
Liabilities and Net Position
Current liabilities
Accounts and contracts payable 3,734$ 7,818$ 11,552$ -$
Developers' escrow deposits - 134,555 134,555 -
Salaries and benefits payable 6,125 1,059 7,184 3,162
Due to other governments 3,889 - 3,889 97
Noncurrent liabilities due within one year 26,482 - 26,482 485,003
Total current liabilities 40,230 143,432 183,662 488,262
Noncurrent liabilities
Compensated absences 38,566 - 38,566 712,147
OPEB payable 6,700 1,248 7,948 5,859
Net pension liability 130,643 25,154 155,797 73,914
Less amount due within one year (26,482) - (26,482) (485,003)
Total noncurrent liabilities 149,427 26,402 175,829 306,917
Total liabilities 189,657 169,834 359,491 795,179
Deferred Inflows of Resources
Deferred inflows of resources related to OPEB 223 42 265 195
Deferred inflows of resources related to pensions 1,851 356 2,207 1,047
Total deferred inflows of resources 2,074 398 2,472 1,242
Net Position
Investment in capital assets 10,098,215 4,739,297 14,837,512 564,567
Unrestricted 1,629,497 717,809 2,347,306 (4,501)
Total net position 11,727,712 5,457,106 17,184,818 560,066
Total liabilities, deferred inflows of resources,
and net position 11,919,443$ 5,627,338$ 17,546,781$ 1,356,487$
City Council | Tuesday, June 20, 2023 | Page 139 of 225
See notes to basic financial statements. 27
Sewer Utility
Storm Water
Utility Total
Internal
Service Funds
Operating revenues
Charges for services 2,411,225$ 586,430$ 2,997,655$ 216,940$
Operating expenses
Wages and salaries 163,818 24,185 188,003 72,577
Employee benefits 74,204 10,171 84,375 45,325
Materials and supplies 30,617 - 30,617 51
Repairs and maintenance 134,839 16,868 151,707 -
Professional services 22,256 52,667 74,923 4,380
Insurance 8,770 - 8,770 6,139
Utilities 33,258 - 33,258 47,601
Depreciation 205,635 54,444 260,079 36,506
Travel 24 - 24 -
Miscellaneous 23,586 31,701 55,287 36,005
Sewer charges - MCES 1,472,261 - 1,472,261 -
Total operating expenses 2,169,268 190,036 2,359,304 248,584
Operating income (loss) 241,957 396,394 638,351 (31,644)
Nonoperating revenues
(expenses)
Investment income (7,414) (12,479) (19,893) (2,015)
Fines and forfeitures 452 - 452 -
Special assessments 4,579 - 4,579 -
Intergovernmental revenue - 3,818 3,818 -
Other income 15,120 866 15,986 -
Total nonoperating revenues 12,737 (7,795) 4,942 (2,015)
Change in net position
before capital contributions
and transfers 254,694 388,599 643,293 (33,659)
Transfers in 4,243 - 4,243 -
Transfers out (61,150) (194,650) (255,800) -
Change in net position 197,787 193,949 391,736 (33,659)
Net position
Beginning of year 11,529,925 5,263,157 16,793,082 593,725
End of year 11,727,712$ 5,457,106$ 17,184,818$ 560,066$
Year Ended December 31, 2022
City of Mendota Heights
Statement of Revenues, Expenses, and Changes
in Fund Net Position - Proprietary Funds
City Council | Tuesday, June 20, 2023 | Page 140 of 225
See notes to basic financial statements. 28
Sewer Utility
Storm Water
Utility Total
Internal
Service Funds
Cash Flows - Operating Activities
Receipts from customers and users 2,420,278$ 581,228$ 3,001,506$ 216,780$
Payments to suppliers (1,941,010) (249,045) (2,190,055) (86,032)
Payments to employees (229,014) (32,000) (261,014) (94,157)
Miscellaneous revenue 16,859 866 17,725 -
Net cash flows - operating activities 267,113 301,049 568,162 36,591
Cash Flows - Noncapital
Financing Activities
Transfer from other funds 4,243 - 4,243 -
Transfer to other funds (61,150) (194,650) (255,800) -
Due from other funds 220,757 - 220,757 -
Net cash flows - noncapital
financing activities 163,850 (190,832) (26,982) -
Cash Flows - Capital and Related
Financing Activities
Acquisition of capital assets (37,118) - (37,118) -
Cash Flows - Investing Activities
Interest and dividends received (7,634) (13,038) (20,672) (2,089)
Net change in cash and cash equivalents 386,211 97,179 483,390 34,502
Cash and Cash Equivalents
Beginning of year 647,070 630,092 1,277,162 720,226
End of year 1,033,281$ 727,271$ 1,760,552$ 754,728$
Reconciliation of Operating Income
(Loss) to Net Cash Flows -
Operating Activities
Operating income (loss) 241,957$ 396,394$ 638,351$ (31,644)$
Adjustments to reconcile operating income
(loss) to net cash flows - operating activities
Operating activities
Miscellaneous revenue 16,859 866 17,725 -
Depreciation expense 205,635 54,444 260,079 36,506
Accounts receivable 6,918 (1,384) 5,534 -
Due from other governments 2,135 (3,818) (1,683) (160)
Prepaid items 11,213 - 11,213 777
Developers' excrow deposits - 60,280 60,280 -
Accounts and contracts payable (221,402) (206,949) (428,351) 7,358
Due to other governmental units (5,210) (1,140) (6,350) 9
Salaries payable (54) 30 (24) (37)
OPEB payable 1,235 227 1,462 1,113
Pension related items 9,668 2,099 11,767 4,836
Compensated absences payable (1,841) - (1,841) 17,833
Total adjustments 25,156 (95,345) (70,189) 68,235
Net cash flows - operating activities 267,113$ 301,049$ 568,162$ 36,591$
City of Mendota Heights
Statement of Cash Flows - Proprietary Funds
Year Ended December 31, 2022
City Council | Tuesday, June 20, 2023 | Page 141 of 225
29
City of Mendota Heights
Notes to Basic 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 Basic 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.
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City of Mendota Heights
Notes to Basic Financial Statements
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)
Description of Funds: (Continued)
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 Basic Financial Statements
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Equity
(Continued)
1. Deposits and Investments (Continued)
Certain investments for the City are reported at fair value as disclosed in Note 3. The City
categorizes its fair value measurements within the fair value hierarchy established by generally
accepted accounting principles. The Hierarchy is based on the valuation inputs used to measure the
fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2
inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs.
2. Receivables and Payables
All trade and property tax receivables are shown at a gross amount since both are assessable to the
property taxes and are collectible upon the sale of the property.
The City levies its property tax for the subsequent year during the month of December. December 28
is the last day the City can certify a tax levy to the County Auditor for collection the following year.
Such taxes become a lien on January 1 and are recorded as receivables by the City at that date. The
property tax is recorded as revenue when it becomes measurable and available. Dakota County is the
collecting agency for the levy and remits the collections to the City three times a year. The tax levy
notice is mailed in March with the first half of the payment due on May 15 and the second half due
on October 15. Taxes not collected as of December 31 each year are shown as delinquent taxes
receivable.
The County Auditor prepares the tax list for all taxable property in the City, applying the applicable
tax rate to the tax capacity of individual properties, to arrive at the actual tax for each property. The
County Auditor also collects all special assessments, except for certain prepayments paid directly to
the City.
The County Auditor submits the list of taxes and special assessments to be collected on each parcel
of property to the County Treasurer in January of each year.
3. Inventories
Inventories are valued at cost, which approximates market, using the first in, first out (FIFO)
method. Inventory consists of expendable supplies held for consumption. Inventories of
governmental funds are recorded as expenditures when consumed rather than when purchased.
Inventory – land held for resale represents land owned by the City with the intent to sell to
developers. This land is recorded at the lesser of historical cost or expected net realizable value.
4. Prepaid Items
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as
prepaid items in both government-wide and fund financial statements. Prepaid items are recorded as
an expenditure at the time of consumption.
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City of Mendota Heights
Notes to Basic Financial Statements
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Equity
(Continued)
5. 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 assets that applies to a future period(s) and so will not be recognized as an outflow of
resources (expense/expenditure) until that time. The City presents deferred outflows of resources on
the Statements of Net Position for deferred outflows of resources related to pensions and OPEB for
various estimate differences that will be amortized and recognized over future years.
In addition to liabilities, the statement of financial position and fund financial statements will
sometimes report a separate section for deferred inflows of resources. This separate financial
statement element represents an acquisition of net assets that applies to a future period(s) and so will
not be recognized as an inflow of resources (revenue) until that time. The City has three items that
qualify for reporting in this category. The governmental funds report unavailable revenues from
three sources: property taxes, special assessments, and grants. These amounts are deferred and
recognized as an inflow of resources in the period that the amounts become available. The City
presents deferred inflows of resources on the Statements of Net Position for deferred inflows of
resources related to pensions and OPEB for various estimate differences that will be amortized and
recognized over future years. Deferred inflows of resources related to lease receivable is reported in
both the government-wide Statement of Net Position and the Governmental Funds Balance Sheet.
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City of Mendota Heights
Notes to Basic Financial Statements
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Equity
(Continued)
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.
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City of Mendota Heights
Notes to Basic Financial Statements
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Equity
(Continued)
10. Fund Equity
a. Classification
In the fund financial statements, governmental funds report fund classifications that comprise a
hierarchy based primarily on the extent to which the City is bound to honor constraints on the
specific purpose for which amounts in those funds can be spent.
Nonspendable Fund Balance – These are amounts that cannot be spent because they are not
in spendable form, or they are legally or contractually required to be maintained intact.
Restricted Fund Balance – These are amounts that are restricted to specific purposes either by
a) constraints placed on the use of resources by creditors, grantors, contributors, or laws or
regulations of other governments or b) imposed by law through constitutional provisions or
enabling legislation.
Committed Fund Balance – These are amounts that can only be used for specific purposes
pursuant to constraints imposed by the City Council (highest level of decision making
authority) through resolution.
Assigned Fund Balance – These are amounts that are constrained by the City's intent to be
used for specific purposes but are neither restricted nor committed. Assignments are made by
the City's Administrator or Finance Director based on the City Council's direction.
Unassigned Fund Balance – These are residual amounts in the General Fund not reported in
any other classification. The General Fund is the only fund that can report a positive
unassigned fund balance. Other funds would report a negative unassigned fund balance
should the total of nonspendable, restricted and committed fund balances exceed the total net
resources of that fund.
b. Minimum Fund Balance
The City will strive to maintain a General Fund unassigned fund balance of 75% of the following
year's budgeted operating expenditures.
11. Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted
in the United States of America requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the
date of the financial statements. Estimates also affect the reported amounts of revenue and
expenditures/expense during the reporting period. Actual results could differ from those estimates.
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City of Mendota Heights
Notes to Basic Financial Statements
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
E. Budgetary Information
The City Council adopts an annual budget for the General Fund and certain special revenue and capital
project funds. The American Rescue Plan Act special revenue fund is not budgeted for. 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 the City Council approved
supplemental appropriations and budget transfers.
Annual appropriations lapse at year-end. No revisions were made to the budgets during the year.
NOTE 2 – STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
A. Deficit Fund Balances
The following funds had deficit fund balances at December 31, 2022:
Other Nonmajor Capital Projects Fund
Pilot Knob Improvement 7,332$
Special Assessment Capital Project 362,305
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.
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City of Mendota Heights
Notes to Basic Financial Statements
NOTE 3 – DEPOSITS AND INVESTMENTS (CONTINUED)
A. Deposits (Continued)
In accordance with applicable Minnesota Statutes, the City maintains deposits at depository banks
authorized by the City Council.
Custodial Credit Risks – Deposits: For deposits, this is the risk that in the event of bank failure, the
City's deposits may not be returned to it. The City addresses custodial credit risk by having the authority
from the City Council to maintain deposits with various financial institutions that are members of the
Federal Reserve System. The City's policy states all deposits must be collateralized in compliance with
Minnesota Statutes 118A. As of December 31, 2022, the City's bank balance was not exposed to
custodial credit risk because it was insured through the Federal Deposit Insurance Corporation (FDIC)
and fully collateralized with securities held by the pledging financial institution's trust department or
agent in the City's name.
As of December 31, 2022, the City had deposits as follows:
Checking 262,252$
Certificates of deposit 25,940
Total deposits 288,192$
B. Investments
As of December 31, 2022, the City had the following investments:
Fair
Credit Value Less Than 1 - 5
Investment Type Ratings 12/31/22 1 Year Years
Negotiable CD's NR 3,717,642$ 585,568$ 3,132,074$
Treasury Bills N/A 935,627 935,627 -
US Government Securities AAA 3,588,333 1,435,328 2,153,005
Money Market Funds NR 14,618,144 14,618,144 -
Total 22,859,746$ 17,574,667$ 5,285,079$
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.
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City of Mendota Heights
Notes to Basic Financial Statements
NOTE 3 – DEPOSITS AND INVESTMENTS (CONTINUED)
B. Investments (Continued)
Custodial Credit Risk – Investments: For an investment, this is the risk that in the event of the failure of
the counterparty, the City will not be able to recover the value of its investments or collateral securities
that are in the possession of an outside party. The City's investment policy states that to ensure safety
when considering an investment, it is verified to make certain funds in excess of insurance are not made
at the same institution. The City's brokers carry SIPC and private insurance to cover the City's
investment holdings; however, given the size of the City's portfolio in relation to the insurance, it is
unlikely the City would receive the full value of their investments upon default of the counterparty.
Interest Rate Risk: This is the risk that market values of securities in a portfolio would decrease due to
changes in market interest rates. As a means of limiting its exposure to fair value losses arising from
rising interest rates, the City's investment policy states the City will hold investments with laddered
maturities so that funds become available on a regular schedule.
The City has the following recurring fair value measurements as of December 31, 2021:
$752,800 investments are valued using calculated Net Asset Value (Level 1 inputs)
$22,106,946 of investments are valued using a matrix pricing model (Level 2 inputs)
C. Deposits and Investments
The following is a summary of total deposits and investments:
Deposits (Note 3. A.)288,192$
Investments (Note 3.B.)22,859,746
Petty cash 900
Total cash and investments 23,148,838$
Deposits and investments are presented in the December 31, 2022, basic financial statements as follows:
Statement of Net Position
Cash and investments 23,148,838$
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City of Mendota Heights
Notes to Basic Financial Statements
NOTE 4 – INTERFUND ACTIVITIES
A. Interfund Receivables and Payable
The following is a summary of the City's due to/due from other funds at December 31, 2022:
Fund Due to Due from Reason
Water tower capital project 354,454$ -$ Cash deficit
Pilot Knob Improvement capital project - 7,332 Project costs
Special assessment capital project - 347,122 Cash deficit
Total 354,454$ 354,454$
The balances above will be repaid as financing becomes available.
B. Interfund Transfers
The composition of interfund transfers as of December 31, 2022, was as follows:
Transfers In
Street Other
Capital Governmental Sewer
General Projects Funds Utility Total
Transfers out
General -$ -$ 756,470$ -$ 756,470$
Special assessments
debt service 22,250 1,961,574 - - 1,983,824
Street capital projects - - 40,913 - 40,913
Other governmental
funds 4,500 1,000,901 380,057 4,243 1,389,701
Sewer utility 11,150 50,000 - - 61,150
Storm Water Utility 9,650 185,000 - - 194,650
Total 47,550$ 3,197,475$ 1,177,440$ 4,243$ 4,426,708$
The purpose of the above transfers is to distribute bond proceeds and to provide funding for capital
improvement projects, capital outlay, and operating purposes.
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City of Mendota Heights
Notes to Basic Financial Statements
NOTE 5 – CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2022, was as follows:
Beginning Ending
Balance Increases Decreases Balance
Governmental activities
Capital assets not being
depreciated/amortized
Land and improvements 8,790,170$ -$ -$ 8,790,170$
Construction in progress 1,436,410 4,193,745 - 5,630,155
Total capital assets
not being depreciated/amortized 10,226,580 4,193,745 - 14,420,325
Capital assets being
depreciated/amortized
Buildings and structures 12,532,028 340,040 - 12,872,068
Machinery and equipment 6,880,212 154,532 172,587 6,862,157
Leased equipment 383,911 240,763 - 624,674
Other improvements 2,919,855 267,460 12,000 3,175,315
Infrastructure 40,652,440 95,899 - 40,748,339
Total capital assets
being depreciated/amortized 63,368,446 1,098,694 184,587 64,282,553
Buildings and structures 4,185,620 337,336 - 4,522,956
Machinery and equipment 4,131,395 350,091 161,824 4,319,662
Leased equipment 5,585 74,628 - 80,213
Other improvements 1,950,720 95,458 12,000 2,034,178
Infrastructure 22,230,999 1,577,896 - 23,808,895
Total accumulated
depreciation/amortization 32,504,319 2,435,409 173,824 34,765,904
Total capital assets being
depreciated/amortized, net 30,864,127 (1,336,715) 10,763 29,516,649
Governmental activities capital
assets, net 41,090,707$ 2,857,030$ 10,763$ 43,936,974$
Less accumulated depreciation/
amortization for
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City of Mendota Heights
Notes to Basic Financial Statements
NOTE 5 – CAPITAL ASSETS (CONTINUED)
Beginning Ending
Balance Increases Decreases Balance
Business-type activities
Capital assets not being
depreciated
Construction in progress 235,513$ 7,796$ 243,309$ -$
Capital assets being
depreciated
Machinery and equipment 476,246 - - 476,246
Sewer main lines and storm sewers 20,754,063 272,631 - 21,026,694
Total capital assets
being depreciated 21,230,309 272,631 - 21,502,940
Less accumulated depreciation for
Machinery and equipment 183,483 28,752 - 212,235
Sewer main lines and storm sewers 6,221,866 231,327 - 6,453,193
Total accumulated
depreciation 6,405,349 260,079 - 6,665,428
Total capital assets being
depreciated, net 14,824,960 12,552 - 14,837,512
Business-type activities capital
assets, net 15,060,473$ 20,348$ 243,309$ 14,837,512$
Depreciation/amortization expense was charged to functions/programs of the City as follows:
Governmental activities
General government 157,000$
Public safety 431,294
Public works 1,810,609
Internal service funds 36,506
Total depreciation/amortization expense - governmental activities 2,435,409$
Business-type activities
Sewer utility 205,635$
Storm water utility 54,444
Total depreciation expense - business-type activities 260,079$
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City of Mendota Heights
Notes to Basic 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, Series 2014A 0.85%-3.40% 1,030,000$ 02/01/35 560,000$ 80,000$
G.O. Refunding Bond, Series 2014B 1.50%-3.00% 885,000 02/01/27 350,000 65,000
G.O. Improvement Bonds 2015A .90%-3.00% 1,200,000 02/01/36 815,000 75,000
G.O. Refunding Bond, Series 2015C 2.00%-2.50% 1,995,000 02/01/28 995,000 160,000
G.O. Reconstruction Bonds, Series 2016A 1.00%-2.50% 1,020,000 02/01/37 710,000 80,000
G.O. Improvement Bonds of 2017A 2.00%-2.50% 1,340,000 02/01/30 1,040,000 125,000
G.O. Improvement Bonds of 2018A 3.00%-4.00% 1,080,000 02/01/30 880,000 105,000
G.O. Improvement Bonds of 2019A 2.00%-3.00% 3,035,000 02/01/31 2,365,000 330,000
G.O. Improvement Bonds of 2020A 1.20%-2.00% 3,295,000 02/01/32 3,135,000 340,000
G.O. Improvement Bonds of 2021A 2.00%-3.00% 2,420,000 02/01/34 2,420,000 115,000
G.O. Improvement Bonds of 2022A 5.00%-4.00% 1,880,000 02/01/33 1,880,000 -
Total improvement bonds 15,150,000 1,475,000
G.O. Bonds, including refunding bonds
G.O. Refunding Bonds 2015B 2.00%-3.00% 1,475,000 02/01/23 230,000 230,000
G.O. Capital Improvement Plan Bonds 3.00%-4.00% 7,000,000 02/01/35 6,265,000 390,000
Total G.O. Bonds 6,495,000 620,000
Lease Liability 544,235 95,847
Net Premium on Bonds 965,004 -
Compensated absences payable 712,147 485,003
Total governmental activities 23,866,386 2,675,850
Business-type activities
Compensated absences payable 38,566 26,482
Total all long-term liabilities 23,904,952$ 2,702,332$
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. The
General Fund will pay the lease liability.
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City of Mendota Heights
Notes to Basic Financial Statements
NOTE 6 – LONG-TERM DEBT (CONTINUED)
C. Changes in Long-Term Liabilities
Long-term liability activity for the year ended December 31, 2022, was as follows:
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Governmental activities
Bonds payable
G.O. Improvements Bonds 15,440,000$ 1,880,000$ 2,170,000$ 15,150,000$ 1,475,000$
G.O. Bonds 7,090,000 - 595,000 6,495,000 620,000
Leases Payable 378,326 210,926 45,017 544,235 95,847
Unamortized premium 956,384 133,356 124,736 965,004 -
Compensated absences payable 694,314 571,540 553,707 712,147 485,003
Total governmental
activities 24,559,024 2,795,822 3,488,460 23,866,386 2,675,850
Business-type activities
Compensated absences payable 40,407 21,766 23,607 38,566 26,482
Total government 24,599,431$ 2,817,588$ 3,512,067$ 23,904,952$ 2,702,332$
D. Long-Term Debt
The annual requirements to amortize all bonded debt outstanding follows:
Year Ending
December 31, Principal Interest Total Principal Interest Total
2023 1,475,000$ 367,431$ 1,842,431$ 620,000$ 200,100$ 820,100$
2024 1,625,000 353,585 1,978,585 405,000 180,750 585,750
2025 1,835,000 307,488 2,142,488 420,000 164,250 584,250
2026 1,685,000 257,543 1,942,543 435,000 147,150 582,150
2027 1,650,000 209,914 1,859,914 455,000 131,625 586,625
2028-2032 6,095,000 454,413 6,549,413 2,480,000 442,200 2,922,200
2033-2037 785,000 31,710 816,710 1,680,000 76,500 1,756,500
Total 15,150,000$ 1,982,084$ 17,132,084$ 6,495,000$ 1,342,575$ 7,837,575$
Governmental Activities
G.O. BondsImprovement Bonds
In November 2021, the City issued $2,420,000 of General Obligation Refunding Bonds Series 2020A. A
portion of the proceeds of this issue were used to redeem the 2023 through 2034 maturities of the City's
2013A G.O Bonds on February 1. 2022. These refunding transactions will reduce the City's total future
debt service payments by $110,198 and result in present value savings of $345,614.
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City of Mendota Heights
Notes to Basic Financial Statements
NOTE 6 – LONG-TERM DEBT (CONTINUED)
D. Long-Term Debt (Continued)
The City leases 10 squad cars under a noncancelable lease. The City also has an agreement with Saint
Paul Regional Water Services that the City pays half of the amount water tower rental revenue to the
SPRWS.
The following is a schedule by years of future minimum payments required under the leases as of
December 31, 2022:
Year Ending
December 31, Principal Interest Total
2023 95,847$ 24,989$ 120,836$
2024 68,910 20,855 89,765
2025 65,127 17,495 82,622
2026 56,273 14,310 70,583
2027 28,256 12,077 40,333
2028-2032 110,301 45,225 155,526
2033-2037 119,521 11,052 130,573
Total 544,235$ 146,003$ 690,238$
Lease Payable
NOTE 7 – 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, 2022, was
$14,994,231.
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City of Mendota Heights
Notes to Basic Financial Statements
NOTE 8 – FUND BALANCE DETAIL
Fund equity balances are classified below to reflect the limitations and restrictions of the respective
Funds.
Special Street Other
General Assessment
Capital Governmental
Fund Debt Service Projects Funds Total
Nonspendable
Inventories 21,623$ -$ -$ -$ 21,623$
Prepaid items 354,338 - - 4,813 359,151
Restricted
Park dedication fees - - - 798,260 798,260
Capital projects - - 769,239 - 769,239
Street light maintenance - - - 33,950 33,950
Police - - - 23,136 23,136
Debt service - 2,743,365 - 1,626,986 4,370,351
Grant Funding - - - 862 862
Tax increment financing - - - 25,465 25,465
Committed
Water system maintenance - - - 910,754 910,754
Par 3 golf course - - - 135,199 135,199
Emergency preparedness
and civil defense - - - 173,143 173,143
Assigned
Capital projects - - - 2,190,588 2,190,588
Unassigned 11,109,344 - - (369,637) 10,739,707
Total 11,485,305$ 2,743,365$ 769,239$ 5,553,519$ 20,551,428$
NOTE 9 – 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 Basic Financial Statements
NOTE 10 – PENSION PLANS
The City participates in various pension plans. Total pension expense for the year ended December 31,
2022, was $1,069,515. The components of pension expense are noted in the following plan summaries.
The General Fund and Sewer and Stormwater Funds typically liquidate the liability related to the
pensions.
Public Employees' Retirement Association
A. Plan Description
The City participates in the following cost-sharing multiple-employer defined benefit pension plans
administered by PERA. PERA's defined benefit pension plans are established and administered in
accordance with Minnesota Statutes, Chapters 353 ad 356. PERA's defined benefit pension plans are tax
qualified plans under Section 401(a) of the Internal Revenue Code.
General Employees Retirement Plan
All full-time and certain part-time employees of the City are covered by the General Employees Plan.
General Employees Plan members belong to the Coordinated Plan. Coordinated Plan members are
covered by Social Security.
Public Employees Police and Fire Plan
The Police and Fire Plan, originally established for police officers and firefighters not covered by a local
relief association, now covers all police officers and firefighters hired since 1980. Effective July 1, 1999,
the Police and Fire Plan also covers police officers and firefighters belonging to local relief associations
that elected to merge with and transfer assets and administration to PERA.
B. Benefits Provided
PERA provides retirement, disability, and death benefits. Benefit provisions are established by state
statute and can only be modified by the state Legislature. Vested, terminated employees who are entitled
to benefits but are not receiving them yet, are bound by the provisions in effect at the time they last
terminated their public service.
General Employees Plan Benefits
General Employees Plan benefits are based on a member's highest average salary for any 5 successive
years of allowable service, age, and years of credit at termination of service. Two methods are used to
compute benefits for PERA's Coordinated Plan members. Members hired prior to July 1, 1989, receive
the higher of Method 1 or Method 2 formulas. Only Method 2 is used for members hired after June 30,
1989. Under Method 1, the accrual rate for a Coordinated members is 1.2% for each of the first 10 years
of service and 1.7% for each additional year. Under Method 2, the accrual rate for Coordinated members
is 1.7% for all years of service. For members hired prior to July 1, 1989, a full annuity is available when
age plus years of service equal 90 and normal retirement age is 65. For members hired on or after July 1,
1989, normal retirement age is the age for unreduced Social Security benefits capped at 66.
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City of Mendota Heights
Notes to Basic Financial Statements
NOTE 10 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
B. Benefits Provided (Continued)
General Employees Plan Benefits (Continued)
Benefit increases are provided to benefit recipients each January. The postretirement increase is equal to
50% of the cost-of-living adjustment (COLA) announced by the SSA, with a minimum increase of at
least 1% and a maximum of 1.5%. Recipients that have been receiving the annuity or benefit for at least
a full year as of the June 30 before the effective date of the increase will receive the full increase.
Recipients receiving the annuity or benefit for at least one month but less than a full year as of the June
30 before the effective date of the increase will receive a reduced prorated increase. For members
retiring on January 1, 2024, or later, the increase will be delayed until normal retirement age (age 65 if
hired prior to July 1, 1989, or age 66 for individuals hired on or after July 1, 1989). Members retiring
under Rule of 90 are exempt from the delay to normal retirement.
Police and Fire Plan Benefits
Benefits for the Police and Fire Plan members first hired after June 30, 2010, but before July 1, 2014,
vest on a prorated basis from 50% after five years up to 100% after 10 years of credited service. Benefits
for Police and Fire Plan members first hired after June 30, 2014, vest on a prorated basis from 50% after
10 years up to 100% after 20 years of credited service. The annuity accrual rate is 3% of average salary
for each year of service. For Police and Fire Plan members who were first hired prior to July 1, 1989, a
full annuity is available when age plus years of service equal at least 90.
Benefit increases are provided to benefit recipients each January. The postretirement increase is fixed at
1%. Recipients that have been receiving the annuity or benefit for at least 36 months as of the June 30
before the effective date of the increase will receive the full increase. Recipients receiving the annuity or
benefit for at least 25 months but less than 36 months as of the June 30 before the effective date of the
increase will receive a reduced prorated increase.
C. Contributions
Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. Contribution
rates can only be modified by the state Legislature.
General Employees Fund Contributions
Coordinated Plan members were required to contribute 6.5% of their annual covered salary in fiscal year
2022 and the City was required to contribute 7.5% for Coordinated Plan members. The City's
contributions to the General Employees Fund for the year ended December 31, 2022, were $186,921.
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 Basic Financial Statements
NOTE 10 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
C. Contributions (Continued)
Police and Fire Fund Contributions
Police and Fire Plan members were required to contribute 11.8% of their annual covered salary in fiscal
year 2022 and the City was required to contribute 17.7% for Police and Fire Plan members. The City's
contributions to the Police and Fire Fund for the year ended December 31, 2022, were $350,782. 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, 2022, the City reported a liability of $2,566,091 for its proportionate share of the
General Employees Fund's net pension liability. The City's net pension liability reflected a reduction due
to the State of Minnesota's contribution of $16 million. The State of Minnesota is considered a non-
employer contributing entity and the State's contribution meets the definition of a special funding
situation. The State of Minnesota's proportionate share of the net pension liability associated with the
City totaled $75,343.
The net pension liability was measured as of June 30, 2022, and the total pension liability used to
calculate the net pension liability was determined by an actuarial valuation as of that date. The City's
proportionate share of the net pension liability was based on the City's contributions received by PERA
during the measurement period for employer payroll paid dates from July 1, 2021, through June 30,
2022, relative to the total employer contributions received from all of PERA's participating employers.
The City's proportionate share was 0.0324% at the end of the measurement period and 0.0319% for the
beginning of the period.
City's proportionate share of the net pension liability 2,566,091$
State of Minnesota's proportionate share of the net pension
liability associated with the City 75,343
Total 2,641,434$
For the year ended December 31, 2022, the City recognized pension expense of $413,102 for its
proportionate share of General Employees Plan's pension expense. Included in the amount, the City
recognized $11,258 as pension expense (and grant revenue) for its proportionate share of the State of
Minnesota's contribution of $16 million to the General Employees Fund.
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City of Mendota Heights
Notes to Basic Financial Statements
NOTE 10 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
D. Pension Costs (Continued)
General Employees Fund Pension Costs (Continued)
At December 31, 2022, the City reported its proportionate share of the General Employees Plan's
deferred outflows of resources and deferred inflows of resources, related to pensions from the following
sources:
Differences between expected and actual economic experience 21,434$ 26,815$
Changes in actuarial assumptions 572,062 9,535
Net collective difference between projected
and actual investment earnings 51,237 -
Changes in proportion 91,873 -
Contributions paid to PERA subsequent
to the measurement date 93,461 -
Total 830,067$ 36,350$
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
The $93,461 reported as deferred outflows of resources related to pensions resulting from City
contributions subsequent to the measurement date will be recognized as a reduction of the net pension
liability in the year ended December 31, 2023. Other amounts reported as deferred outflows and
deferred inflows of resources related to pensions will be recognized in pension expense as follows:
Pension
Expense
Amount
268,658$
270,928
(71,394)
232,064
Total 700,256$
2024
Year Ending
December 31,
2023
2025
2026
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City of Mendota Heights
Notes to Basic Financial Statements
NOTE 10 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
D. Pension Costs (Continued)
Police and Fire Fund Pension Costs
At December 31, 2022, the City reported a liability of $7,084,413 for its proportionate share of the
Police and Fire Fund's net pension liability. The net pension liability was measured as of June 30, 2022,
and the total pension liability used to calculate the net pension liability was determined by an actuarial
valuation as of that date. The City's proportionate share of the net pension liability was based on the
City's contributions received by PERA during the measurement period for employer payroll paid dates
from July 1, 2021, through June 30, 2022, relative to the total employer contributions received from all
of PERA's participating employers. The City's proportionate share was 0.1628% at the end of the
measurement period and 0.1575% for the beginning of the period.
The State of Minnesota contributed $18 million to the Police and Fire Fund in the plan fiscal year ended
June 30, 2022. The contribution consisted of $9 million in direct state aid that does meet the definition
of a special funding situation and $9 million in supplemental state aid that does not meet the definition
of a special funding situation. The $9 million direct state aid was paid on October 1, 2021. Thereafter,
by October 1 of each year, the State will pay $9 million to the Police and Fire Fund until full funding is
reached or July 1, 2048, whichever is earlier. The $9 million in supplemental state aid will continue until
the fund is 90% funded, or until the State Patrol Plan (administered by the Minnesota State Retirement
System) is 90% funded, whichever occurs later.
The State of Minnesota is included as a non-employer contributing entity in the Police and Fire
Retirement Plan Schedule of Employer Allocations and Schedule of Pension Amounts by Employer
(pension allocation schedules) for the $9 million in direct state aid. Police and Fire Plan employers need
to recognize their proportionate share of the State of Minnesota's pension expense (and grant revenue)
under GASB 68 special funding situation accounting and financial reporting requirements. For the year
ended December 31, 2022, the City recognized pension expense of $656,413 for its proportionate share
of the Police and Fire Plan's pension expense. Included in this amount, the City recognized $60,028 as
pension expense (and grant revenue) for its proportionate share of the State of Minnesota's contribution
of $9 million to the Police and Fire Fund.
The State of Minnesota is not included as a non-employer contributing entity in the Police and Fire
Pension Plan pension allocation schedules for the $9 million in supplemental state aid. The City also
recognized $14,652 for the year ended December 31, 2022, as revenue and an offsetting reduction of the
net pension liability for its proportionate share of the State of Minnesota's on-behalf contributions to the
Police and Fire Fund.
At December 31, 2022, the City reported its proportionate share of the Police and Fire Plan's deferred
outflows of resources and deferred inflows of resources related to pensions from the sources on the
following page.
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City of Mendota Heights
Notes to Basic Financial Statements
NOTE 10 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
D. Pension Costs (Continued)
Police and Fire Fund Pension Costs (Continued)
Differences between expected and actual economic experience 428,746$ -$
Changes in actuarial assumptions 4,122,167 42,686
Net collective difference between projected
and actual investment earnings 165,521 -
Changes in proportion 104,272 97,540
Contributions paid to PERA subsequent
to the measurement date 175,391 -
Total 4,996,097$ 140,226$
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
The $175,391 reported as deferred outflows of resources related to pensions resulting from City
contributions subsequent to the measurement date will be recognized as a reduction of the net pension
liability in the year ended December 31, 2023. Other amounts reported as deferred outflows and inflows
of resources related to pensions will be recognized in pension expense as follows:
Pension
Year Ending Expense
December 31,Amount
2023 927,678$
2024 921,197
2025 805,837
2026 1,429,512
2027 596,256
Total 4,680,480$
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City of Mendota Heights
Notes to Basic Financial Statements
NOTE 10 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
E. Long-Term Expected Return on Investment
The State Board of Investment, which manages the investments of PERA, prepares an analysis of the
reasonableness on a regular basis of the long-term expected rate of return using a building-block method
in which best-estimate ranges of expected future rates of return are developed for each major asset class.
These ranges are combined to produce an expected long-term rate of return by weighting the expected
future rates of return by the target asset allocation percentages. The target allocation and best estimates
of geometric real rates of return for each major asset class are summarized in the following table:
Domestic equity 33.5 %5.10 %
International equity 16.5 5.30
Fixed income 25.0 0.75
Private markets 25.0 5.90
Total 100.0 %
Target Allocation Long-Term Asset Class
F. Actuarial Assumptions
The total pension liability in the June 30, 2022, actuarial valuation was determined using an individual
entry-age normal actuarial cost method. The long-term rate of return on pension plan investments used
in the determination of the total liability is 6.5%. This assumption is based on a review of inflation and
investments return assumptions from a number of national investment consulting firms. The review
provided a range of return investment return rates deemed to be reasonable by the actuary. An
investment return of 6.5% was deemed to be within that range of reasonableness for financial reporting
purposes.
Inflation is assumed to be 2.25% for the General Employees Plan and 2.25% for the Police and Fire
Plan. Benefit increases after retirement are assumed to be 1.25% for the General Employees. The Police
and Fire Plan benefit increase is fixed at 1% per year and that increase was used in the valuation.
Salary growth assumptions in the General Employees Plan range in annual increments from 10.25%
after one year of service to 3.0% after 27 years of service. In the Police and Fire Plan, salary growth
assumptions range from 11.75% after one year of service to 3.0% after 24 years of service.
Mortality rates for the General Employees Plan are based on the Pub-2010 General Employee Mortality
Table. Mortality rates for the Police and Fire Plan are based on the Pub-2010 Public Safety Employee
Mortality tables. The tables are adjusted slightly to fit PERA's experience.
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City of Mendota Heights
Notes to Basic Financial Statements
NOTE 10 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
F. Actuarial Assumptions (Continued)
Actuarial assumptions for the General Employees Plan are reviewed every four years. The most recent
four-year experience study for the General Employees Plan was completed in 2019. The assumption
changes were adopted by the Board and became effective with the July 1, 2020, actuarial valuation. The
most recent four-year experience study for the Police and Fire Plan was completed in 2020 and was
adopted by the Board and became effective with the July 1, 2021, actuarial valuation.
The following changes in actuarial assumptions and plan provisions occurred in 2022:
General Employees Fund
Changes in Actuarial Assumptions
The mortality improvement scale was changed from scale MP-2020 to scale MP-2021.
Changes in Plan Provisions
There have been no changes since the previous valuation.
Police and Fire Fund
Changes in Actuarial Assumptions
The mortality improvement scale was changed from MP-2020 to MP-2021.
The single discount rate was changed from 6.5% to 5.4%.
Changes in Plan Provisions
There have been no changes since the previous valuation.
G. Discount Rate
The discount rate for the General Employees Plan used to measure the total pension liability in 2022 was
6.5%. The projection of cash flows used to determine the discount rate assumed that contributions from
Plan members and employers will be made at rates set in Minnesota Statutes. Based on these
assumptions, the fiduciary net positions of the General Employees Fund was projected to be available to
make all projected future benefit payments of current plan members. Therefore, the long-term expected
rate of return on pension plan investments was applied to all periods of projected benefit payments to
determine the total pension liability.
In the Police and Fire Fund, the fiduciary net position was projected to be available to make all projected
future benefit payments of current plan members through June 30, 2060. Beginning in the fiscal year
ended June 30, 2061, projected benefit payments exceed the fund's projected fiduciary net position.
Benefit payments projected after were discounted at the municipal bond rate of 3.69% (based on the
weekly rate closest to but not later than the measurement date of the Fidelity "20-Year Municipal GO
AA Index"). The resulting equivalent single discount rate of 5.4% for the Police and Fire Fund was
determined to give approximately the same present value of projected benefits when applied to all years
of projected benefits as the present value of projected benefits using 6.5% applied to all years of
projected benefits through the point of asset depletion and 3.69% thereafter.
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City of Mendota Heights
Notes to Basic Financial Statements
NOTE 10 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
H. Pension Liability Sensitivity
The following presents the City's proportionate share of the net pension liability for all plans it
participates in, calculated using the discount rate disclosed in the preceding paragraph, as well as what
the City's proportionate share of the net pension liability would be if it were calculated using a discount
rate 1 percentage point lower or 1 percentage point higher than the current discount rate:
1% Decrease in Current 1% Increase in
City's proportionate share of
the General Employees Fund
net pension liability 4,053,275$ 2,566,091$ 1,346,370$
1% Decrease in Current 1% Increase in
City's proportionate share of
the Police and Fire Fund
net pension liability 10,721,350$ 7,084,413$ 4,144,167$
Discount Rate
(5.5%)
Discount Rate
(6.5%)
Discount Rate
(7.5%)
Discount Rate
(4.4%)
Discount Rate
(5.4%)
Discount Rate
(6.4%)
I. Pension Plan Fiduciary Net Position
Detailed information about each pension plan's fiduciary net position is available in a separately-issued
PERA financial report that includes financial statements and required supplementary information. That
report may be obtained on the Internet at www.mnpera.org.
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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City of Mendota Heights
Notes to Basic Financial Statements
NOTE 10 – 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 $5,750 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 2022, the total
contribution was $181,604. Required and actual employer contributions to the plan during 2022 were
$181,604. In addition, the City passes through state aid allocated to the plan in accordance with state
statutes. For 2022, the state aid was $125,625. 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 11 – POST EMPLOYMENT HEALTH CARE PLAN
A. Plan Description
The City provides a single-employer defined benefit healthcare plan to eligible retirees (as required by
Minnesota Statue § 471.61) and police or firefighters disabled in the line of duty (as required by
Minnesota Statute § 299A.465). The required contributions are based on projected pay-as-you-go
financing requirements. As of January 1, 2022, there were 17 retirees participating in the City's
healthcare plan.
B. Benefits Provided
Retirees and their spouses contribute to the healthcare plan at the same rate as City employees. This
results in the retirees receiving an implicit rate subsidy. Contribution requirements are established by the
City, based on the contract terms with Blue Cross Blue Shield and Delta Dental.
C. Contributions
The City makes direct subsidy payments towards retiree health insurance premiums. For the year 2022,
the City contributed $164,188.
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City of Mendota Heights
Notes to Basic Financial Statements
NOTE 11 – POST EMPLOYMENT HEALTH CARE PLAN (CONTINUED)
D. Members
As of January 1, 2022, the following were covered by the benefit terms:
Inactive employees or beneficiaries currently receiving benefits 17
Active employees 40
Total 57
E. Actuarial Assumptions
The total OPEB liability was determined by an actuarial valuation as of January 1, 2022, using the
following actuarial assumptions, applied to all periods included in the measurement, unless otherwise
specified:
Investment rate of return 2.00%, net of investment expense
Inflation 2.50%
Healthcare cost trend increases
Mortality assumption Pub-2010 Public Retirement Plans
Headcount-Weighted Mortality Tables
(General, Safety) with MP-2019
Generational Improvement Scale
Key Methods and Assumptions Used in Valuation of Total OPEB Liability
6.25% initially, grading to 5% over five
years and then to 4.00% over the next 48
years
The actuarial assumptions used in the January 1, 2022, valuation were based on the results of an
actuarial experience study for the period January 1, 2021 – January 1, 2022.
The discount rate used to measure the total OPEB liability was 2.00% based on 20 year municipal G.O.
Bonds.
City Council | Tuesday, June 20, 2023 | Page 169 of 225
57
City of Mendota Heights
Notes to Basic Financial Statements
NOTE 11 – POST EMPLOYMENT HEALTH CARE PLAN (CONTINUED)
F. Total OPEB Liability
The City's total OPEB liability of $1,239,631 was measured as of January 1, 2022, and was determined
by an actuarial valuation as of that date.
Total
OPEB
Liability
Balance at January 1, 2021 790,604$
Changes for the year
Service cost 24,213
Interest 14,864
Changes of assumptions 12,919
Differences between expected and actual experience 540,952
Benefit payments (143,921)
Net changes 449,027
Balance at January 1, 2022 1,239,631$
Changes of assumptions and other inputs reflect the following changes:
The health care trend rates were changed to better anticipate short term and long term medical
increases.
The mortality tables were updated from the Pub-2010 Public Retirement Plans Headcount-
Weighted Mortality Tables (General, Safety) with MP-2019 Generational Improvement Scale to
the Pub-2010 Public Retirement Plans Headcount-Weighted Mortality Tables (General, Safety)
with MP-2021 Generational Improvement Scale.
The salary increase rates were updated to reflect the latest experience study.
The retirement and withdrawal rates were updated to reflect the latest experience study.
The inflation rate was changed from 2.50% to 2.00%.
City Council | Tuesday, June 20, 2023 | Page 170 of 225
58
City of Mendota Heights
Notes to Basic Financial Statements
NOTE 11 – POST EMPLOYMENT HEALTH CARE PLAN (CONTINUED)
G. OPEB Liability Sensitivity
The following presents the City's total OPEB liability calculated using the discount rate of 2.00% as well
as the liability measured using 1% lower and 1% higher than the current discount rate.
1% decrease Current 1% increase
(1.00%)(2.00%)(3.00%)
1,287,223$ 1,239,631$ 1,194,801$
Total OPEB Liability/(Asset)
The following presents the total OPEB liability of the City, as well as what the City's total OPEB
liability would be if it were calculated using healthcare cost trend rates that are 1% lower and 1% higher
than the current healthcare cost trend rates.
1% decrease Current 1% increase
1,193,151$ 1,239,631$ 1,291,314$
Total OPEB Liability/(Asset)
(5.50% decreasing
to 3.0%)
(6.50% decreasing
to 4.0%)
(7.50% decreasing
to 5.0%)
H. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to OPEB
For the year ended December 31, 2022, the City recognized OPEB expense of $115,759. At
December 31, 2022, the Distract reported deferred outflows of resources and deferred inflows of
resources related to OPEB from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Liability losses 487,613$ -$
Assumption changes 50,102 10,026
Subsequent contributions 182,694 -
Total 720,409$ 10,026$
City Council | Tuesday, June 20, 2023 | Page 171 of 225
59
City of Mendota Heights
Notes to Basic Financial Statements
NOTE 11 – POST EMPLOYMENT HEALTH CARE PLAN (CONTINUED)
H. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to OPEB (Continued)
The $182,694 reported as deferred outflows of resources related to post employment benefits resulting
from City contributions subsequent to the measurement date will be recognized as a reduction of the net
pension liability in the year ended December 31, 2023. Other amounts reported as deferred outflows and
inflows of resources related to post employment benefits will be recognized in pension expense as
follows:
Expense
Amount
76,682$
76,682
76,682
76,685
79,182
141,777
527,690$
Thereafter
Total
Year Ending
December 31,
2023
2024
2025
2026
2027
NOTE 12 – JOINT VENTURES
A. Dakota Communications Center/Dakota 911
The City is a member of the Dakota Communication Center (DCC)(Dakota 911). 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 $238,594 for 2022. 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 2022, the City paid $256,702 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.
City Council | Tuesday, June 20, 2023 | Page 172 of 225
60
City of Mendota Heights
Notes to Basic Financial Statements
NOTE 13 – 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, 2022, financial statements and determined they
do not have a material effect on financial position or changes in financial position.
NOTE 14 – COMMITED CONTRACTS
At December 31, 2022, the City had commitments of $593,050 for uncompleted construction contracts.
NOTE 15 – TAX INCREMENT FINANCING
The City has entered into Tax Increment Financing agreements 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 these agreements, 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, 2022, the City generated $248,592 in tax increment revenue and
made $223,733 in payments to developers.
NOTE 16 – NEW STANDARDS ISSUED BUT NOT YET IMPLEMENTED
GASB Statement No. 96, Subscription-Based Information Technology Arrangements establishes that a
Subscription-Based Information Technology Arrangement (SBITA) results in a right-to-use subscription
asset and a corresponding liability. Under this statement, a governmental entity generally should
recognize a right-to-use subscription asset – an intangible asset – and a corresponding subscription
liability. This statement will be effective for the year ending December 31, 2023.
City Council | Tuesday, June 20, 2023 | Page 173 of 225
61
REQUIRED SUPPLEMENTARY INFORMATION
City Council | Tuesday, June 20, 2023 | Page 174 of 225
See notes to required supplementary information. 62
December 31, December 31, December 31, December 31, December 31,
2022 2021 2020 2019 2018
Total OPEB Liability
Service cost 24,213$ 20,191$ 17,009$ 22,733$ 24,002$
Interest 14,864 23,267 31,249 30,230 31,883
Differences between expected
and actual experience 540,952 - 22,848 - -
Changes of assumptions 12,919 26,487 30,297 (20,053) -
Benefit payments (143,921) (122,081) (126,784) (115,317) (94,257)
Net change in total
OPEB liability 449,027 (52,136) (25,381) (82,407) (38,372)
Beginning of year 790,604 842,740 868,121 950,528 988,900
Total OPEB Liability 1,239,631$ 790,604$ 842,740$ 868,121$ 950,528$
3,495,939$ 3,469,012$ 3,359,818$ 3,460,084$ 3,359,305$
35.46% 22.79% 25.08% 25.09% 28.30%
Covered-employee payroll
City of Mendota Heights
Schedule of Changes in Total OPEB Liability
and Related Ratios
Total OPEB liability as a percentage
of covered-employee payroll
City Council | Tuesday, June 20, 2023 | Page 175 of 225
See notes to required supplementary information. 63
City's
Covered
Payroll
2015 0.0322% 1,668,771$ -$ 1,668,771$ 1,859,307$ 89.75% 78.19%
2016 0.0315% 2,557,644 33,392 2,591,036 1,954,600 130.85% 68.91%
2017 0.0290% 1,851,341 23,303 1,874,644 1,870,160 98.99% 75.90%
2018 0.0281% 1,558,873 51,096 1,609,969 1,887,853 82.57% 79.53%
2019 0.0291% 1,608,874 49,998 1,658,872 2,058,880 78.14% 80.23%
2020 0.0296% 1,774,655 54,701 1,829,356 2,113,013 83.99% 79.06%
2021 0.0319% 1,362,273 41,634 1,403,907 2,294,880 59.36% 87.00%
2022 0.0324% 2,566,091 75,343 2,641,434 2,430,307 105.59% 76.67%
Note: Schedule is intended to show ten year trend. Additional years will be reported as they become available.
For Fiscal
Year Ended
June 30,
City's
Proportion of
the Net
Pension
Liability
(Asset)
City's
Proportionate
Share of the
Net Pension
Liability
(Asset)
State's
Proportionate
Share
(Amount) of
the Net
Pension
Liability
Associated
with the City
City's
Proportionate
Share of the
Net Pension
Liablility and
the State's
Proportionate
Share of the
Net Pension
Liablility
Associated
with the City
City's
Covered
Payroll
City's
Proportionate
Share of the
Net Pension
Liability
(Asset) as a
Percentage of
its Covered
Payroll
Plan
Fiduciary Net
Position as a
Percentage of
the Total
Pension
Liability
2015 0.1530% 1,738,438$ N/A 1,738,438$ 1,359,920$ 127.8% 86.61%
2016 0.1550% 6,220,420 N/A 6,220,420 1,496,272 415.7% 63.88%
2017 0.1500% 2,011,679 N/A 2,011,679 1,543,389 130.3% 85.43%
2018 0.1527% 1,613,882 N/A 1,613,882 1,609,556 100.3% 88.84%
2019 0.1643% 1,726,959 N/A 1,726,959 1,733,152 99.6% 89.26%
2020 0.1686% 2,207,154 52,363$ 2,259,517 1,902,465 116.0% 87.19%
2021 0.1575% 1,201,558 54,662 1,256,220 1,902,228 63.2% 93.66%
2022 0.1628% 7,084,413 309,465 7,393,878 1,977,853 358.2% 70.53%
Note: Schedule is intended to show ten year trend. Additional years will be reported as they become available.
Last Ten Years
For Fiscal
Year Ended
June 30,
State's
Proportionate
Share
(Amount) of
the Net
Pension
Liability
Associated
with the City
City's
Proportionate
Share of the
Net Pension
Liablility and
the State's
Proportionate
Share of the
Net Pension
Liablility
Associated
with the City
Public Employees Police and Fire Retirement Fund
of Net Pension Liability
City of Mendota Heights
Schedule of City's Proportionate Share
of Net Pension Liability
Last Ten Years
Schedule of City's Proportionate Share
General Employees Retirement Fund
City's
Proportionate
Share
(Percentage)
of the Net
Pension
Liability
(Asset)
City's
Proportionate
Share
(Amount) of
the Net
Pension
Liability
(Asset)
City's
Proportionate
Share of the
Net Pension
Liability
(Asset) as a
Percentage of
its Covered
Payroll
Plan
Fiduciary Net
Position as a
Percentage of
the Total
Pension
Liability
City Council | Tuesday, June 20, 2023 | Page 176 of 225
See notes to required supplementary information. 64
2015 149,420$ 149,420$ -$ 1,992,267$ 7.50%
2016 139,806 139,806 - 1,864,080 7.50%
2017 137,806 137,806 - 1,837,413 7.50%
2018 146,272 146,272 - 1,950,293 7.50%
2019 157,416 157,416 - 2,098,880 7.50%
2020 166,196 166,196 - 2,215,947 7.50%
2021 178,657 178,657 - 2,382,093 7.50%
2022 186,921 186,921 - 2,492,280 7.50%
Note: Schedule is intended to show ten year trend. Additional years will be reported as they become available.
2015 237,655$ 237,655$ -$ 1,467,006$ 16.20%
2016 245,917 245,917 - 1,518,006 16.20%
2017 251,584 251,584 - 1,552,988 16.20%
2018 266,168 266,168 - 1,643,012 16.20%
2019 311,718 311,718 - 1,839,044 16.95%
2020 344,654 344,654 - 1,947,198 17.70%
2021 349,826 349,826 - 1,976,418 17.70%
2022 350,782 350,782 - 1,981,819 17.70%
Note: Schedule is intended to show ten year trend. Additional years will be reported as they become available.
Last Ten Years
Contributions
as a Percentage
of Covered
Payroll
Statutorily
Required
Contribution
Statutorily
Required
Contribution
Contributions
in Relation to
the Statutorily
Required
Contributions
Contribution
Deficiency
(Excess)
Contributions
in Relation to
the Statutorily
Required
Contributions
Fiscal Year
Ending
December 31,
City's Covered
Payroll
Contributions
as a Percentage
of Covered
Payroll
Schedule of City Contributions -
Public Employees Police and Fire Retirement Fund
Fiscal Year
Ending
December 31,
City of Mendota Heights
Schedule of City Contributions -
General Employees Retirement Fund
Last Ten Years
Contribution
Deficiency
(Excess)
City's Covered
Payroll
City Council | Tuesday, June 20, 2023 | Page 177 of 225
City of Mendota Heights
Notes to Required Supplementary Information
65
General Employees Fund
2022 Changes
Changes in Actuarial Assumptions
The mortality improvement scale was changed from scale MP-2020 to scale MP-2021.
Changes in Plan Provisions
There have been no changes since the prior valuation.
2021 Changes
Changes in Actuarial Assumptions
The investment return and single discount rates were changed from 7.5% to 6.5% for financial
reporting purposes.
The mortality improvement scale was changed from scale MP-2019 to scale MP-2020.
Changes in Plan Provisions
There have been no changes since the prior valuation.
2020 Changes
Changes in Actuarial Assumptions
The price inflation assumption was decreased from 2.5% to 2.25%.
The payroll growth assumption was decreased from 3.25% to 3.0%.
Assumed salary increase rates were changed as recommended in the June 30, 2019, experience
study. The net effect is assumed rates that average 0.25% less than previous rates.
Assumed rates of retirement were changed as recommended in the June 30, 2019, experience
study. The changes result in more unreduced (normal) retirements and slightly fewer Rule of 90
and early retirements.
Assumed rates of termination were changes as recommended in the June 30, 2019, experience
study. The new rates are based on service and are generally lower than the previous rates for
years 2-5 and slightly higher thereafter.
Assumed rates of disability were changed as recommended in the June 30, 2019, experience
study. The change results in fewer predicted disability retirements for males and females.
The base mortality table for healthy annuitants and employees was changed from the RP-2014
table to the Pub-2010 General Mortality table, with adjustments. The base mortality table for
disabled annuitants was changed from the RP-2014 disabled annuitant mortality table to the
Pub-2010 General/Teacher disabled annuitant mortality table, with adjustments.
The mortality improvement scale was changed from Scale MP-2018 to Scale MP-2019.
The assumed spouse age difference was changed from two years older for females to one year
older.
The assumed number of married male new retirees electing the 100% Joint and Survivor option
changed from 35% to 45%. The assumed number of married female new retires electing the
100% Joint and Survivor option changed from 15% to 30%. The corresponding number of
married new retirees electing the Life annuity option was adjusted accordingly.
Changes in Plan Provisions
Augmentation for current privatized members was reduced to 2.0% for the period July 1, 2020
through December 31, 2023, and 0.0% thereafter. Augmentation was eliminated for
privatizations occurring after June 30, 2020.
City Council | Tuesday, June 20, 2023 | Page 178 of 225
City of Mendota Heights
Notes to Required Supplementary Information
66
General Employees Fund (Continued)
2019 Changes
Changes in Actuarial Assumptions
The mortality projection scale was changed from MP-2017 to MP-2018.
Changes in Plan Provisions
The employer supplemental contribution was changed prospectively, decreasing from $31.0
million to $21.0 million per year. The State's special funding contribution was changed
prospectively, requiring $16.0 million due per year through 2031.
2018 Changes
Changes in Actuarial Assumptions
The mortality projection scale was changed from MP-2015 to MP-2017.
The assumed benefit increase was changed from 1.0% per year through 2044 and 2.5% per year
thereafter to 1.25% per year.
Changes in Plan Provisions
The augmentation adjustment in early retirement factors is eliminated over a five-year period
starting July 1, 2019, resulting in actuarial equivalence after June 30, 2024.
Interest credited on member contributions decreased from 4.00% to 3.00%, beginning July 1,
2018.
Deferred augmentation was changed to 0.00%, effective January 1, 2019. Augmentation that has
already accrued for deferred members will still apply.
Contribution stabilizer provisions were repealed.
Postretirement benefit increases were changed from 1.00% per year with a provision to increase
to 2.50% upon attainment of 90.00% funding ratio to 50.00% of the Social Security Cost of
Living Adjustment, not less than 1.00% and not more than 1.50%, beginning
January 1, 2019.
For retirements on or after January 1, 2024, the first benefit increase is delayed until the retiree
reaches normal retirement age; does not apply to Rule of 90 retirees, disability benefit recipients,
or survivors.
Actuarial equivalent factors were updated to reflect revised mortality and interest assumptions.
2017 Changes
Changes in Actuarial Assumptions
The CSA loads were changed from 0.8% for active members and 60% for vested and non-vested
deferred members. The revised CSA loads are now 0.0% for active member liability, 15% for
vested deferred member liability and 3% for non-vested deferred member liability.
The assumed post-retirement benefit increase rate was changed from 1.0% per year for all years
to 1.0% per year through 2044 and 2.5% per year thereafter.
Changes in Plan Provisions
The State's contribution for the Minneapolis Employees Retirement Fund equals $16,000,000 in
2017 and 2018, and $6,000,000 thereafter.
The Employer Supplemental Contribution for the Minneapolis Employees Retirement Fund
changed from $21,000,000 to $31,000,000 in calendar years 2019 to 2031. The State's
contribution changed from $16,000,000 to $6,000,000 in calendar years 2019 to 2031.
City Council | Tuesday, June 20, 2023 | Page 179 of 225
City of Mendota Heights
Notes to Required Supplementary Information
67
General Employees Fund (Continued)
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 was decreased by 0.25% to 3.25%
for payroll growth and 2.50% for inflation.
Changes in Plan Provisions
There have been no changes since the prior valuation.
2015 Changes
Changes in Actuarial Assumptions
The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2030
and 2.5% per year thereafter to 1.0% per year through 2035 and 2.5% per year thereafter.
Changes in Plan Provisions
On January 1, 2015, the Minneapolis Employees Retirement Fund was merged into the General
Employees Fund, which increased the total pension liability by $1.1 billion and increased the
fiduciary plan net position by $892 million. Upon consolidation, state and employer
contributions were revised; the State's contribution of $6.0 million, which meets the special
funding situation definition, was due September 2015.
City Council | Tuesday, June 20, 2023 | Page 180 of 225
City of Mendota Heights
Notes to Required Supplementary Information
68
Police and Fire Fund
2022 Changes
Changes in Actuarial Assumptions
The mortality improvement scale was changed from scale MP-2020 to scale MP-2021.
The single discount rate was changed from 6.5% to 5.4%.
Changes in Plan Provisions
There have been no changes since the prior valuation.
2021 Changes
Changes in Actuarial Assumptions
The investment return and single discount rates were changed from 7.5% to 6.5% for financial
reporting purposes.
The inflation assumption was changed from 2.5% to 2.25%.
The payroll growth assumption was changed from 3.25% to 3.0%.
The base mortality table for healthy annuitants and employees was changed from the RP-2014
table to the Pub-2010 Public Safety mortality table. The mortality improvement scale was
changed from MP-2019 to MP-2020.
The base mortality table for disabled annuitants was changed from the RP-2014 healthy
annuitant mortality table (with future mortality improvement according to scale MP-2019) to the
Pub-2010 Public Safety disabled annuitant mortality table (with future mortality improvement
according to scale MP-2020).
Assumed rates of salary increase were modified as recommended in the July 14, 2020,
experience study. The overall impact is a decrease in gross salary increase rates.
Assumed rates of retirement were changed as recommended in the July 14, 2020, experience
study. The changes resulted in slightly more unreduced retirements and fewer assumed early
retirements.
Assumed rates of withdrawal were changed from select and ultimate rates to service-based rates.
The changes resulted in more assumed terminations.
Assumed rates of disability were increased for ages 25-44 and decreased for ages over 49.
Overall, proposed rates resulted in more projected disabilities.
Assumed percent married for active female members was changed from 60% to 70%. Minor
changes to form of payment assumptions were applied.
Changes in Plan Provisions
There have been no changes since the prior valuation.
2020 Changes
Changes in Actuarial Assumptions
The mortality projection scale was changed from MP-2018 to MP-2019.
Changes in Plan Provisions
There have been no changes since the prior valuation.
City Council | Tuesday, June 20, 2023 | Page 181 of 225
City of Mendota Heights
Notes to Required Supplementary Information
69
Police and Fire Fund (Continued)
2019 Changes
Changes in Actuarial Assumptions
The mortality projection scale was changed from MP-2017 to MP-2018.
Changes in Plan Provisions
There have been no changes since the prior valuation.
2018 Changes
Changes in Actuarial Assumptions
The mortality projection scale was changed from MP-2016 to MP-2017.
Changes in Plan Provisions
Postretirement benefit increases were changed to 1.00% for all years, with no trigger.
An end date of July 1, 2048, was added to the existing $9.0 million state contribution.
New annual state aid will equal $4.5 million in fiscal years 2019 and 2020, and $9.0 million
thereafter until the plan reaches 100% funding, or July 1, 2048, if earlier.
Member contributions were changed from 10.80% to 11.30% of pay, effective January 1, 2019,
and 11.80% of pay, effective January 1, 2020.
Employer contributions were changed from 16.20% to 16.95% of pay, effective January 1, 2019,
and 17.70% of pay, effective January 1, 2020.
Interest credited on member contributions decreased from 4.00% to 3.00%, beginning July 1,
2018.
Deferred augmentation was changed to 0.00%, effective January 1, 2019. Augmentation that has
already accrued for deferred members will still apply.
Actuarial equivalent factors were updated to reflect revised mortality and interest assumptions.
2017 Changes
Changes in Actuarial Assumptions
Assumed salary increases were changed as recommended in the June 30, 2016, experience study.
The net effect is proposed rates that average 0.34% lower than the previous rates.
Assumed rates of retirement were changed, resulting in fewer retirements.
The CSA load was 30% for vested and non-vested deferred members. The CSA has been
changed to 33% for vested members and 2% for non-vested members.
The base mortality table for healthy annuitants was changed from the RP-2000 fully generational
table to the RP-2014 fully generational table (with a base year of 2006), with male rates adjusted
by a factor of 0.96. The mortality improvement scale was changed from Scale AA to Scale MP-
2016. The base mortality table for disabled annuitants was changed from the RP-2000 disabled
mortality table to the mortality tables assumed for healthy retirees.
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.
City Council | Tuesday, June 20, 2023 | Page 182 of 225
City of Mendota Heights
Notes to Required Supplementary Information
70
Police and Fire Fund (Continued)
2017 Changes (Continued)
Changes in Actuarial Assumptions (Continued)
The assumed percentage of female members electing Joint and Survivor annuities was increased.
The assumed post-retirement benefit increase rate was changed from 1% for all years to 1% per
year through 2064 and 2.5% thereafter.
The single discount rate was changed from 5.6% per annum to 7.5% per annum.
Changes in Plan Provisions
There have been no changes since the prior valuation.
2016 Changes
Changes in Actuarial Assumptions
The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2037
and 2.5% thereafter to 1.0% per year for all future years.
The assumed investment return was changed from 7.9% to 7.5%. The single discount rate
changed from 7.9% to 5.6%.
The single discount rate changed from 7.90% to 5.60%.
The assumed future salary increases, payroll growth, and inflation was decreased by 0.25% to
3.25% for payroll growth and 2.50% for inflation.
Changes in Plan Provisions
There have been no changes since the prior valuation.
2015 Changes
Changes in Actuarial Assumptions
The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2030
and 2.5% per year thereafter to 1.0% per year through 2037 and 2.5% per year thereafter.
Changes in Plan Provisions
The post-retirement benefit increase to be paid after attainment of the 90% funding threshold was
changed, from inflation up to 2.5%, to a fixed rate of 2.5%.
City Council | Tuesday, June 20, 2023 | Page 183 of 225
City of Mendota Heights
Notes to Required Supplementary Information
71
OPEB
2022 Changes
Changes in Actuarial Assumptions
The health care trend rates were changed to better anticipate short term and long term medical
increases.
The mortality tables were updated from the Pub-2010 Public Retirement Plans Headcount-
Weighted Mortality Tables (General, Safety) with MP-2019 Generational Improvement Scale to
the Pub-2010 Public Retirement Plans Headcount-Weighted Mortality Tables (General, Safety)
with MP-2021 Generational Improvement Scale.
The salary increase rates were updated to reflect the latest experience study.
The retirement and withdrawal rates were updated to reflect the latest experience study.
The inflation rate was changed from 2.50% to 2.00%.
2021 Changes
Changes in Actuarial Assumptions
The discount rate decreased from 2.90% in 2020 to 2.00% in 2021.
2020 Changes
Changes in Actuarial Assumptions
The discount rate decreased from 3.80% in 2019 to 2.90% in 2020.
The healthcare trend rates, mortality tables, and salary increase rates were updated.
2019 Changes
Changes in Actuarial Assumptions
The discount rate increased from 3.30% in 2018 to 3.80% in 2019.
The healthcare trend rates, mortality tables, and salary increase rates were updated.
2018 Changes
Changes in Actuarial Assumptions
The discount rate decreased from 4.00% in 2017 to 3.30% in 2018.
There are no assets accumulated in a trust.
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SUPPLEMENTARY INFORMATION
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Water Revenue Special Park Civil Defense Street Lighting
Assets
Cash and investments 907,032$ 797,493$ 172,342$ 24,384$
Taxes receivable - delinquent - - 160 20
Special assessments receivable
Deferred - - - -
Accounts receivable - - - -
Interest receivable 932 767 172 38
Due from other funds - - - -
Due from other governments 2,790 - 629 9,528
Prepaid items - - - -
Land held for resale - - - -
Total assets 910,754$ 798,260$ 173,303$ 33,970$
Liabilities
Accounts and contracts payable -$ -$ -$ -$
Due to other funds - - - -
Due to other governments - - - -
Salaries and benefits payable - - - -
Total liabilities - - - -
Deferred Inflows of Resources
Unavailable revenue - property taxes - - 160 20
Unavailable revenue - special assessments - - - -
Total deferred inflows of resources - - 160 20
Fund Balances
Nonspendable - - - -
Restricted - 798,260 - 33,950
Committed 910,754 - 173,143 -
Assigned - - - -
Unassigned - - - -
Total fund balances 910,754 798,260 173,143 33,950
Total liabilities, deferred inflows of
resources, and fund balances 910,754$ 798,260$ 173,303$ 33,970$
December 31, 2021
Special Revenue
City of Mendota Heights
Combining Balance Sheet -
Nonmajor Governmental Funds
City Council | Tuesday, June 20, 2023 | Page 187 of 225
75
Par 3 Golf
Course
Police
Forfeiture Fund
American
Rescue Plan Act
Par 3 G.O.
Bonds
Equipment
Certficates
Fire Station
Bonds
Fire Truck
Equipment
Certificate
154,531$ 23,111$ -$ 348,675$ 43,089$ 566,674$ 651,223$
- - - 1,459 18 3,599 -
- - - - - - -
56 - - - - - -
120 25 862 260 47 262 -
- - - - - - -
61 - - 967 - 15,789 -
4,813 - - - - - -
- - - - - - -
159,581$ 23,136$ 862$ 351,361$ 43,154$ 586,324$ 651,223$
18,103$ -$ -$ -$ -$ -$ -$
- - - - - - -
836 - - - - - -
630 - - - - - -
19,569 - - - - - -
- - - 1,459 18 3,599 -
- - - - - - -
- - - 1,459 18 3,599 -
4,813 - - - - - -
- 23,136 862 349,902 43,136 582,725 651,223
135,199 - - - - - -
- - - - - - -
- - - - - - -
140,012 23,136 862 349,902 43,136 582,725 651,223
159,581$ 23,136$ 862$ 351,361$ 43,154$ 586,324$ 651,223$
Debt ServiceSpecial Revenue
City Council | Tuesday, June 20, 2023 | Page 188 of 225
76
Equipment
Replacement
Reserve
Infrastructure
Reserve Facility Reserve
Water Tower
Capital Project
Assets
Cash and investments 506,939$ 31,383$ 359,031$ 356,631$
Taxes receivable - delinquent 35 15 - -
Special assessments receivable
Deferred - - - -
Accounts receivable - - - -
Interest receivable 338 51 259 769
Due from other funds - - - 354,454
Due from other governments - - - -
Prepaid items - - - -
Land held for resale - - - -
Total assets 507,312$ 31,449$ 359,290$ 711,854$
Liabilities
Accounts and contracts payable 10,816$ -$ -$ -$
Due to other funds - - - -
Due to other governments - - - -
Salaries and benefits payable - - - -
Total liabilities 10,816 - - -
Deferred Inflows of Resources
Unavailable revenue - property taxes 35 15 - -
Unavailable revenue - special assessments - - - -
Total deferred inflows of resources 35 15 - -
Fund Balances
Nonspendable - - - -
Restricted - - - -
Committed - - - -
Assigned 496,461 31,434 359,290 711,854
Unassigned - - - -
Total fund balances 496,461 31,434 359,290 711,854
Total liabilities, deferred inflows of
resources, and fund balances 507,312$ 31,449$ 359,290$ 711,854$
City of Mendota Heights
Combining Balance Sheet -
Nonmajor Governmental Funds
December 31, 2021
Capital Projects
City Council | Tuesday, June 20, 2023 | Page 189 of 225
77
Pilot Knob
Improvement
Pre-1998 Non-
Increment
Special
Assessment
Capital Project
TIF District
No. 2
Fire Hall
Remodel
Total
Nonmajor
Governmental
Funds
-$ 494,658$ -$ 137,288$ 186$ 5,574,670$
- - - - 143 5,449
- - 11,093 - - 11,093
- - 11,032 - - 11,088
- 605 120 43 - 5,670
- - - - - 354,454
- - 1,374 - - 31,138
- - - - - 4,813
- 96,100 - - - 96,100
-$ 591,363$ 23,619$ 137,331$ 329$ 6,094,475$
-$ -$ 27,709$ 111,866$ -$ 168,494$
7,332 - 347,122 - - 354,454
- - - - - 836
- - - - - 630
7,332 - 374,831 111,866 - 524,414
- - - - 143 5,449
- - 11,093 - - 11,093
- - 11,093 - 143 16,542
- - - - - 4,813
- - - 25,465 - 2,508,659
- - - - - 1,219,096
- 591,363 - - 186 2,190,588
(7,332) - (362,305) - - (369,637)
(7,332) 591,363 (362,305) 25,465 186 5,553,519
-$ 591,363$ 23,619$ 137,331$ 329$ 6,094,475$
Capital Projects
City Council | Tuesday, June 20, 2023 | Page 190 of 225
78
Water Revenue Special Park Civil Defense
Revenues
Property taxes -$ -$ 25,134$
Tax increments - - -
Intergovernmental - 180,000 -
Charges for services 133,908 - -
Fines and forfeitures - - 12
Miscellaneous
Investment income (12,242) (10,077) (2,254)
Other - 244,000 -
Total revenues 121,666 413,923 22,892
Expenditures
Current
General government 165 - 10,275
Public safety - - -
Public works - 14,228 -
Economic development - - -
Debt service
Principal - - -
Interest and other charges - - -
Capital outlay
Public safety - - -
Public works 23,802 363,360 -
Total expenditures 23,967 377,588 10,275
Excess of revenues over (under) expenditures 97,699 36,335 12,617
Other Financing Sources (Uses)
Transfers in - 97,695 -
Transfers out (3,000) (1,500) -
Total other financing sources (uses) (3,000) 96,195 -
Net change in fund balances 94,699 132,530 12,617
Fund Balances
Beginning of year 816,055 665,730 160,526
End of year 910,754$ 798,260$ 173,143$
Special Revenue
City of Mendota Heights
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances - Nonmajor Governmental Funds
Year Ended December 31, 2022
City Council | Tuesday, June 20, 2023 | Page 191 of 225
79
Street Lighting Par 3 Golf Course
Police Forfeiture
Fund
American Rescue
Plan Act Par 3 G.O. Bonds
Equipment
Certficates
51,923$ -$ -$ -$ 179,290$ -$
- - - - - -
- - - 1,018,831 - -
- 263,936 - - - -
- - - - - -
(505) (1,569) (326) (11,325) (3,409) (622)
- 425 1,651 - - -
51,418 262,792 1,325 1,007,506 175,881 (622)
73,427 - - - - -
- - - - - -
- 220,182 - - - -
- - - - - -
- - - - 220,000 -
- - - - 10,438 -
- - - - - -
- 41,552 - - - -
73,427 261,734 - - 230,438 -
(22,009) 1,058 1,325 1,007,506 (54,557) (622)
- 26,099 - - - -
- - - (1,005,144) - -
- 26,099 - (1,005,144) - -
(22,009) 27,157 1,325 2,362 (54,557) (622)
55,959 112,855 21,811 (1,500) 404,459 43,758
33,950$ 140,012$ 23,136$ 862$ 349,902$ 43,136$
Special Revenue Debt Service
City Council | Tuesday, June 20, 2023 | Page 192 of 225
80
Capital Projects
Fire Station Bonds
Fire Truck
Equipment
Certificate
Equipment
Replacement
Reserve
Revenues
Property taxes 627,848$ -$ -$
Tax increments - - -
Intergovernmental - - -
Charges for services - - -
Fines and forfeitures 311 - -
Miscellaneous
Investment income (3,439) 8,909 (4,449)
Other - - -
Total revenues 624,720 8,909 (4,449)
Expenditures
Current
General government - - -
Public safety - - 147,302
Public works - - -
Economic development - - -
Debt service
Principal 375,000 - -
Interest and other charges 212,425 1,870 -
Capital outlay
Public safety - - 373,403
Public works - - 22,727
Total expenditures 587,425 1,870 543,432
Excess of revenues over (under) expenditures 37,295 7,039 (547,881)
Other Financing Sources (Uses)
Transfers in - - 575,794
Transfers out - (296,057) -
Total other financing sources (uses)- (296,057) 575,794
Net change in fund balances 37,295 (289,018) 27,913
Fund Balances
Beginning of year 545,430 940,241 468,548
End of year 582,725$ 651,223$ 496,461$
Debt Service
City of Mendota Heights
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances - Nonmajor Governmental Funds
Year Ended December 31, 2022
City Council | Tuesday, June 20, 2023 | Page 193 of 225
81
Infrastructure
Reserve Facility Reserve
Water Tower
Capital Project
Pilot Knob
Improvement
Pre-1998
Non-Increment
Special
Assessment
Capital Project
-$ -$ -$ -$ -$ -$
- - - - - -
- - - 4,450 20,080 -
- - - - 1,259 -
- - - - - -
(682) (3,410) (10,110) 1 (7,945) (1,570)
- - - - 39,115 -
(682) (3,410) (10,110) 4,451 52,509 (1,570)
- - - 43,531 - -
- - - - - -
32,192 12,900 - - - -
- - - - - -
- - - - - -
- - 648 - - -
- - - - - -
- 340,039 - - - 57,245
32,192 352,939 648 43,531 - 57,245
(32,874) (356,349) (10,758) (39,080) 52,509 (58,815)
- 352,939 - - - 40,913
- - - - (84,000) -
- 352,939 - - (84,000) 40,913
(32,874) (3,410) (10,758) (39,080) (31,491) (17,902)
64,308 362,700 722,612 31,748 622,854 (344,403)
31,434$ 359,290$ 711,854$ (7,332)$ 591,363$ (362,305)$
Capital Projects
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TIF District
No. 2 Fire Hall Remodel
Total Other
Governmental
Funds
Revenues
Property taxes -$ -$ 884,195$
Tax increments 248,592 - 248,592
Intergovernmental - - 1,223,361
Charges for services - - 399,103
Fines and forfeitures - - 323
Miscellaneous
Investment income (562) - (65,586)
Other - 10,196 295,387
Total revenues 248,030 10,196 2,985,375
Expenditures
Current
General government - - 127,398
Public safety - - 147,302
Public works - - 279,502
Economic development 226,594 - 226,594
Debt service
Principal - - 595,000
Interest and other charges - - 225,381
Capital outlay
Public safety - - 373,403
Public works - - 848,725
Total expenditures 226,594 - 2,823,305
Excess of revenues over (under) expenditures 21,436 10,196 162,070
Other Financing Sources (Uses)
Transfers in - 84,000 1,177,440
Transfers out - - (1,389,701)
Total other financing sources (uses)- 84,000 (212,261)
Net change in fund balances 21,436 94,196 (50,191)
Fund Balances
Beginning of year 4,029 (94,010) 5,603,710
End of year 25,465$ 186$ 5,553,519$
Capital Projects
City of Mendota Heights
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances - Nonmajor Governmental Funds
Year Ended December 31, 2022
City Council | Tuesday, June 20, 2023 | Page 196 of 225
84
Compensated
Absences
City Hall
Sinking Fund Total
Assets
Current assets
Cash and investments
(including cash equivalents) 695,762$ 58,966$ 754,728$
Accounts receivable - 4,210 4,210
Interest receivable - 153 153
Due from other governments - 160 160
Prepaid expenses - 8,399 8,399
Total current assets 695,762 71,888 767,650
Noncurrent assets
Capital assets
Land - 25,000 25,000
Buildings - 2,279,024 2,279,024
Improvements other than buildings - 40,781 40,781
Machinery and equipment - 66,969 66,969
Total capital assets - 2,411,774 2,411,774
Less accumulated depreciation - (1,847,207) (1,847,207)
Net capital assets - 564,567 564,567
Total assets 695,762 636,455 1,332,217
Deferred Outflows of Resources
Deferred outflows of resources related to OPEB - 360 360
Deferred outflows of resources related to pensions - 23,910 23,910
Total deferred outflows of resources - 24,270 24,270
Total assets and deferred outflows of resources 695,762$ 660,725$ 1,356,487$
Liabilities
Current liabilities
Salaries and benefits payable -$ 3,162$ 3,162$
Due to other governments - 97 97
Noncurrent liabilities due within one year 478,340 6,663 485,003
Total current liabilities 478,340 9,922 488,262
Noncurrent liabilities
Compensated absences 695,762 16,385 712,147
OPEB payable - 5,859 5,859
Net pension liability - 73,914 73,914
Less amount due within one year (478,340) (6,663) (485,003)
Total noncurrent liabilities 217,422 89,495 306,917
Total liabilities 695,762 99,417 795,179
Deferred Inflows of Resources
Deferred inflows of resources related to OPEB - 195 195
Deferred inflows of resources related to pensions - 1,047 1,047
Total deferred inflows of resources - 1,242 1,242
Net Position
Investment in capital assets - 564,567 564,567
Unrestricted - (4,501) (4,501)
Total net position - 560,066 560,066
Total liabilities, deferred inflows of resources,
and net position 695,762$ 660,725$ 1,356,487$
December 31, 2022
Combining Statement of Net Position - Internal Service Funds
City of Mendota Heights
City Council | Tuesday, June 20, 2023 | Page 197 of 225
85
City of Mendota Heights
Combining Statement of Revenues, Expenses, and Changes
in Net Position - Internal Service Funds
Year Ended December 31, 2022
City Hall
Sinking Fund Total
Operating revenues
Charges for services 216,940$ 216,940$
Operating expenses
Wages and salaries 72,577 72,577
Employee benefits 45,325 45,325
Professional services 4,380 4,380
Insurance 6,139 6,139
Utilities 47,601 47,601
Depreciation 36,506 36,506
Miscellaneous 36,005 36,005
Total operating expenses 248,584 248,584
Operating loss (31,644) (31,644)
Nonoperating revenues
Investment income (2,015) (2,015)
Change in net position (33,659) (33,659)
Net position
Beginning of year 593,725 593,725
End of year 560,066$ 560,066$
City Council | Tuesday, June 20, 2023 | Page 198 of 225
86
Compensated
Absences
City Hall
Sinking Fund Total
Cash Flows - Operating Activities
Receipts from customers and users -$ 216,780$ 216,780$
Payments to suppliers - (86,032) (86,032)
Payments to employees 17,839 (111,996) (94,157)
Net cash flows - operating activities 17,839 18,752 36,591
Cash Flows - Investing Activities
Interest and dividends received - (2,089) (2,089)
Net change in cash and cash equivalents 17,839 16,663 34,502
Cash and Cash Equivalents
Beginning of year 677,923 42,303 720,226
End of year 695,762$ 58,966$ 754,728$
Reconciliation of Operating
Loss to Net Cash Flows -
Operating Activities
Operating loss -$ (31,644)$ (31,644)$
Operating activities
Depreciation expense - 36,506 36,506
Due from other governments - (160) (160)
Prepaid items - 777 777
Accounts payable - 7,358 7,358
Due to other governmental units - 9 9
Salaries payable - (37) (37)
OPEB payable - 1,113 1,113
Pension related items - 4,836 4,836
Compensated absences payable 17,839 (6) 17,833
Total adjustments 17,839 50,396 68,235
Net cash flows - operating activities 17,839$ 18,752$ 36,591$
City of Mendota Heights
Combining Statement of Cash Flows - Internal Service Funds
Year Ended December 31, 2022
City Council | Tuesday, June 20, 2023 | Page 199 of 225
87
Budgeted
Amounts Variance with
Original Actual
and Final Amounts
Revenues
Property taxes 8,849,981$ 8,935,145$ 85,164$
Licenses and permits 329,200 731,480 402,280
Intergovernmental revenue
State grants and aids
Fire aid 111,000 125,625 14,625
Police aid 180,000 191,147 11,147
Other grants and aids 256,500 418,831 162,331
Total intergovernmental revenue 547,500 735,603 188,103
Charges for services 675,164 641,490 (33,674)
Fines and forfeitures 102,000 83,168 (18,832)
Miscellaneous revenues
Investment income 30,000 (132,443) (162,443)
Other 105,000 178,347 73,347
Total miscellaneous revenues 135,000 45,904 (89,096)
Total revenues 10,638,845 11,172,790 533,945
Expenditures
General government
Mayor and council
Salaries and benefits 24,406 24,239 (167)
Contracted services 24,000 18,683 (5,317)
Administration and finance
Salaries and benefits 893,461 876,553 (16,908)
Materials and supplies 20,000 13,872 (6,128)
Contracted services 386,900 579,559 192,659
Capital outlay - 30,300 30,300
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, 2022
City Council | Tuesday, June 20, 2023 | Page 200 of 225
88
Budgeted
Amounts Variance with
Original Actual Final budget -
And final Amounts Over (under)
Expenditures (Continued)
General government (continued)
Elections
Salaries and benefits 86,738$ 78,982$ (7,756)$
Materials and supplies 16,100 9,788 (6,312)
Contracted services 9,575 14,465 4,890
Information technology
Materials and supplies 110,675 23,761 (86,914)
Contracted services 112,735 200,707 87,972
Planning and zoning
Salaries and benefits 161,950 163,697 1,747
Materials and supplies 4,500 529 (3,971)
Contracted services 96,900 50,212 (46,688)
Recycling
Materials and supplies 1,000 - (1,000)
Contracted services 30,600 6,973 (23,627)
Miscellaneous
Contracted services - 49,144 49,144
Total general government 1,979,540 2,141,464 161,924
Public safety
Police protection
Salaries and benefits 3,547,941 3,245,008 (302,933)
Materials and supplies 216,500 212,731 (3,769)
Contracted services 803,069 722,071 (80,998)
Capital outlay - 210,926 210,926
Fire protection
Salaries and benefits 344,520 331,106 (13,414)
Materials and supplies 127,350 162,573 35,223
Contracted services 439,630 432,745 (6,885)
Total public safety 5,479,010 5,317,160 (161,850)
General Fund
Year Ended December 31, 2022
(Continued)
Detailed Schedule of Revenues, Expenditures, and
Changes in Fund Balance - Budget and Actual -
City of Mendota Heights
City Council | Tuesday, June 20, 2023 | Page 201 of 225
See notes to schedule of expenditures of federal awards. 89
Budgeted
Amounts Variance with
Original Actual Final budget -
And final Amounts Over (under)
Expenditures (Continued)
Public works
Code enforcement
Materials and supplies 2,750$ 4,388$ 1,638$
Contracted services 118,725 115,466 (3,259)
Street maintenance
Salaries and benefits 1,171,943 1,148,080 (23,863)
Materials and supplies 155,450 166,474 11,024
Contracted services 512,151 422,747 (89,404)
Capital outlay - 10,650 10,650
Parks
Salaries and benefits 756,904 740,877 (16,027)
Materials and supplies 257,900 212,594 (45,306)
Contracted services 252,022 361,884 109,862
Total public works 3,227,845 3,183,160 (44,685)
Total expenditures 10,686,395 10,641,784 (44,611)
Excess of revenues over
(under) expenditures (47,550) 531,006 578,556
Other Financing Sources (Uses)
Proceeds from sale of capital assets - 103,076 103,076
Issuance of debt 210,926 210,926
Transfer in 47,550 47,550 -
Transfer out - (756,470) (756,470)
Total other financing sources (uses) 47,550 (394,918) (442,468)
Net change in fund balance -$ 136,088 136,088$
Fund Balance
Beginning of year 11,349,217
End of year 11,485,305$
Year Ended December 31, 2022
(Continued)
Detailed Schedule of Revenues, Expenditures, and
Changes in Fund Balance - Budget and Actual -
General Fund
City of Mendota Heights
City Council | Tuesday, June 20, 2023 | Page 202 of 225
See notes to schedule of expenditures of federal awards. 90
City of Mendota Heights
Schedule of Expenditures of Federal Awards
For the Year Ended December 31, 2022
Federal Assistance
Listing Number Expenditures
U.S. Department of Treasury
Direct
COVID - Coronavirus State and Local Fiscal Recovery Funds 21.027 1,018,831$
Passed through Minnesota Department of Transportation
COVID - Coronavirus State and Local Fiscal Recovery Funds 21.027 45,964
Total U.S. Department of Treasury 1,064,795
U.S. Department of Transportation
Passed through Minnesota Management and Budget
State and Community Highway Safety 20.600 6,749
U.S. Department of the Interior
Passed through State of Minnesota
Outdoor Recreation Acquisition, Development and Planning 15.916 180,000
Total federal expenditures 1,251,544$
Federal Grantor/Pass-Through Grantor/Grant Program Title
City Council | Tuesday, June 20, 2023 | Page 203 of 225
91
City of Mendota Heights
Notes to Schedule of Expenditures of Federal Awards
NOTE 1 – BASIS OF PRESENTATION
The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") includes the federal
award activity of the City under programs of the federal government for the year-ended December 31,
2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S.
Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a
selected portion of the operations of the City, it is not intended to and does not present the financial
position, changes in net position, or cash flows of the City.
NOTE 2 – PASS-THROUGH GRANT NUMBERS
All pass-through entities listed above use the same Assistance Listing numbers as the federal grantors to
identify these grants and have not assigned any additional identifying numbers.
NOTE 3 – INDIRECT COST RATE
The City did not elect to use the 10 percent de minimis indirect cost rate, as allowed under the Uniform
Guidance.
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93
Report on Internal Control over Financial Reporting
and on Compliance and Other Matters Based on an Audit of
Financial Statements Performed in Accordance with
Government Auditing Standards
Independent Auditor's Report
Honorable Mayor and Members
of the City Council
City of Mendota Heights
Mendota Heights, Minnesota
We have audited, in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States, the financial statements of the governmental
activities, the business-type activities, the aggregate discretely presented component units, 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, 2022, and the related notes to financial statements, which
collectively comprise the City's basic financial statements, and have issued our report thereon dated
June 1, 2023.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City's internal
control over financial reporting (internal control) as a basis for designing audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinions on the financial statements,
but not for the purpose of expressing an opinion on the effectiveness of the City's internal control.
Accordingly, we do not express an opinion on the effectiveness of the City's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control such that there is a reasonable possibility that a material
misstatement of the City's financial statements will not be prevented, or detected and corrected, on a
timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control
that is less severe than a material weakness, yet important enough to merit attention by those charged
with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies
may exist that were not identified. We did identify a certain deficiency in internal control, described in
the accompanying Schedule of Findings and Questioned Costs that we consider to be a material
weakness as audit finding 2022-001.
City Council | Tuesday, June 20, 2023 | Page 206 of 225
94
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on
the financial statements. However, providing an opinion on compliance with those provisions was not an
objective of our audit, and accordingly, we do not express such an opinion. The results of our tests
disclosed no instances of noncompliance or other matters that are required to be reported under
Government Auditing Standards.
City's Response to the Finding
Government Auditing Standards requires the auditor to perform limited procedures on the City's
response to the findings identified in our audit are described in the accompanying Schedule of Findings
and Questioned Costs. The City's response was not subjected to the other auditing procedures applied in
the audit of the financial statements and, accordingly, we express no opinion on the response.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the result of that testing, and not to provide an opinion on the effectiveness of the City's
internal control or on compliance. This report is an integral part of an audit performed in accordance
with Government Auditing Standards in considering the City's internal control and compliance.
Accordingly, this communication is not suitable for any other purpose.
Minneapolis, Minnesota
June 1, 2023
City Council | Tuesday, June 20, 2023 | Page 207 of 225
95
Report on Compliance for each Major Federal Program
and Report on Internal Control over Compliance Required by
the Uniform Guidance
Independent Auditor's Report
Honorable Mayor and Members
of the City Council
City of Mendota Heights
Mendota Heights, Minnesota
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the City's compliance with the types of compliance requirements identified as subject
to audit in the OMB Compliance Supplement that could have a direct and material effect on the City's
major federal program for the year ended December 31, 2022 The City's major federal program is
identified in the summary of auditor's results section of the accompanying Schedule of Findings and
Questioned Costs.
In our opinion, the City complied in all material respects, with the compliance requirements referred to
above that could have a direct and material effect on its major federal program for the year ended
December 31, 2022.
Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the
United States of America (GAAS); the standards applicable to financial audits contained in Government
Auditing Standards issued by the Comptroller General of the United States (Government Auditing
Standards); and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform
Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in
the Auditor's Responsibilities for the Audit of Compliance section of our report.
We are required to be independent of the City and to meet our other ethical responsibilities, in
accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence
we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each
major federal program. Our audit does not provide a legal determination of the City's compliance with
the compliance requirements referred to above.
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design,
implementation, and maintenance of effective internal control over compliance with the requirements of
laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the City's
federal programs.
City Council | Tuesday, June 20, 2023 | Page 208 of 225
96
Auditor's Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the
compliance requirements referred to above occurred, whether due to fraud or error, and express an
opinion on the City's compliance based on our audit. Reasonable assurance is a high level of assurance
but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with
GAAS, Government Auditing Standards, and the Uniform Guidance will always detect material
noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is
higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control. Noncompliance with the compliance
requirements referred to above is considered material, if there is a substantial likelihood that,
individually or in the aggregate, it would influence the judgment made by a reasonable user of the report
on compliance about the City's compliance with the requirements of each major federal program as a
whole.
In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform
Guidance, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material noncompliance, whether due to fraud or error, and
design and perform audit procedures responsive to those risks. Such procedures include
examining, on a test basis, evidence regarding the City's compliance with the compliance
requirements referred to above and performing such other procedures as we considered necessary
in the circumstances.
Obtain an understanding of the City's internal control over compliance relevant to the audit in
order to design audit procedures that are appropriate in the circumstances and to test and report
on internal control over compliance in accordance with the Uniform Guidance, but not for the
purpose of expressing an opinion on the effectiveness of the City's internal control over
compliance. Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit and any significant deficiencies and material weaknesses in
internal control over compliance that we identified during the audit.
Report on Internal Control over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their assigned
functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a
federal program on a timely basis. A material weakness in internal control over compliance is a
deficiency, or combination of deficiencies, in internal control over compliance, such that there is a
reasonable possibility that material noncompliance with a type of compliance requirement of a federal
program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in
internal control over compliance is a deficiency, or a combination of deficiencies, in internal control
over compliance with a type of compliance requirement of a federal program that is less severe than a
material weakness in internal control over compliance, yet important enough to merit attention by those
charged with governance.
City Council | Tuesday, June 20, 2023 | Page 209 of 225
97
Report on Internal Control over Compliance (Continued)
Our consideration of internal control over compliance was for the limited purpose described in Auditor's
Responsibilities for the Audit of Compliance section and was not designed to identify all deficiencies in
internal control over compliance that might be material weaknesses or significant deficiencies in internal
control over compliance. Given these limitations, during our audit we did not identify any deficiencies
in internal control over compliance that we consider to be material weaknesses, as defined above.
However, material weaknesses or significant deficiencies in internal control over compliance may exist
that were not identified.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal
control over compliance. Accordingly, no such opinion is expressed.
The purpose of this report on internal control over compliance is solely to describe the scope of our
testing of internal control over compliance and the results of that testing based on the requirements of
the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.
Minneapolis, Minnesota
June 1, 2023
City Council | Tuesday, June 20, 2023 | Page 210 of 225
98
City of Mendota Heights
Schedule of Findings and Questioned Costs
SECTION I – SUMMARY OF AUDITOR'S RESULTS
Financial Statements
Type of auditor's report issued:
We issued an unmodified opinion on the fair
presentation of the financial statements of the
governmental activities, business-type
activities, each major fund, and the aggregate
remaining fund information in accordance
with accounting principles generally
accepted in the United States of America
(GAAP).
Internal control over financial reporting:
Material weakness(es) identified? Yes, Audit Finding 2022-001
Significant deficiency(ies) identified? None reported
Noncompliance material to financial statements noted? No
Federal Awards
Type of auditor's report issued on compliance for major
programs: Unmodified
Internal control over major programs:
Material weakness(es) identified? No
Significant deficiency(ies) identified? None reported
Any audit findings disclosed that are required to
be reported in accordance with 2 CFR 200.516(a)? No
Identification of Major Programs
Assistance Listing No.: 21.027
Name of Federal Program or Cluster:
Coronavirus State and Local Fiscal Recovery
Funds
Dollar threshold used to distinguish
between type A and type B programs: $750,000
Auditee qualified as low risk auditee? No
City Council | Tuesday, June 20, 2023 | Page 211 of 225
99
City of Mendota Heights
Schedule of Findings and Questioned Costs
SECTION II – FINANCIAL STATEMENT FINDINGS
Audit Finding 2022-001
Criteria:
Internal control that supports the City's ability to initiate record, process, and report financial data
consistent with the assertions of management in the financial statements requires adequate segregation
of accounting duties.
Condition:
The City had a lack of segregation of accounting duties due to a limited number of office employees.
The lack of adequate segregation of accounting duties could adversely affect the City's ability to initiate,
record, process, and report financial data consistent with the assertions of management in the financial
statements.
Context:
This finding impacts the internal control for all significant accounting functions.
Effect or Potential Effect:
The lack of adequate segregation of accounting duties could adversely affect the City's ability to initiate,
record, process, and report financial data consistent with the assertions of management in the financial
statements.
Cause:
There are a limited number of office employees.
Recommendation:
We recommend that the City review the internal control processes to ensure segregation or independent
review be implemented whenever practical and cost effective.
Views of Responsible Officials and Planned Corrective Action:
City staff is aware of the lack of segregation of accounting duties and continue to make every effort to
ensure that transactions are separated and monitored to the extent possible. Staff will continue to
examine and implement methods and processes that will address this issue.
SECTION III – FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
None
SECTION IV – PRIOR YEAR FINDINGS AND QUESTIONED COSTS
None
City Council | Tuesday, June 20, 2023 | Page 212 of 225
100
(THIS PAGE LEFT BLANK INTENTIONALLY)
City Council | Tuesday, June 20, 2023 | Page 213 of 225
101
Minnesota Legal Compliance
Independent Auditor's Report
Honorable Mayor and Members
of the City Council
City of Mendota Heights
Mendota Heights, Minnesota
We have audited, in accordance with auditing standards generally accepted in the United States of
America, and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States, the financial statements of the governmental
activities, the business-type activities, each major fund and the aggregate remaining fund information of
the City of Mendota Heights, Minnesota as of and for the year ended December 31, 2022, and the
related notes to financial statements, which collectively comprise the City's basic financial statements,
and have issued our report thereon dated June 1, 2023.
In connection with our audit, nothing came to our attention that caused us to believe that the City failed
to comply with the provisions of the contracting and bidding, deposits and investments, conflicts of
interest, public indebtedness, claims and disbursements, miscellaneous provisions, and tax increment
financing sections of the Minnesota Legal Compliance Audit Guide for Cities, promulgated by the State
Auditor pursuant to Minnesota Statutes § 6.65, insofar as they relate to accounting matters. However,
our audit was not directed primarily toward obtaining knowledge of such noncompliance. Accordingly,
had we performed additional procedures, other matters may have come to our attention regarding the
City's noncompliance with the above referenced provisions, insofar as they relate to accounting matters.
The purpose of this report is solely to describe the scope of our testing of compliance and the results of
that testing, and not to provide an opinion on compliance. Accordingly, this communication is not
suitable for any other purpose.
Minneapolis, Minnesota
June 1, 2023
City Council | Tuesday, June 20, 2023 | Page 214 of 225
City Council | Tuesday, June 20, 2023 | Page 215 of 225
Request for City Council Action
DATE: June 20, 2023
TO: Mayor and City Council
FROM: Cheryl Jacobson, City Administrator
SUBJECT: Legislative Session Overview
INTRODUCTION
Staff will provide an overview of the 2023 State Legislative Session.
BACKGROUND
The 2023 legislative session began on January 3 and adjourned on May 22.
BUDGET IMPACT
N/A
ACTION REQUESTED
Informational item. Council may choose to discuss items as needed.
7bCity Council | Tuesday, June 20, 2023 | Page 216 of 225
Request for City Council Action
DATE: June 20, 2023
TO: Mayor and City Council, City Administrator
FROM: Meredith Lawrence, Parks and Recreation Manager
SUBJECT: Approve Amendments to the Parks and Recreation Scholarship Program
INTRODUCTION
The Mendota Heights Recreation Scholarship Program provides financial assistance to eligible
Mendota Heights Residents for participation in City of Mendota Heights sponsored recreation
programs.
BACKGROUND
The existing Recreation Scholarship Program was adopted by the City Council on March 6, 2018.
The program consists of the following:
QUALIFICATIONS
o Must be a Mendota Heights Resident
o Recipient must be under the age of 18
o Recipient must participate in the Free and Reduced Lunch program in District 197 or
have a parent on active duty in the military
o Provide one of the following as documentation, along with the application:
o Copy of eligibility notification letter from ISD 197 Child Nutrition Office; or
o Documentation of parent on active duty in the military
ASSISTANCE AMOUNT
o Assistance of up to $150 per child, per calendar year
o Recipients will receive a 50% reduction in cost for each Mendota Heights recreation
program they register for
ELIGIBLE PROGRAMS
o Skating, gymnastics, summer playgrounds, safety camp, tennis camp and golf camp
In 2018 one participant applied for the program and received 50% off the sports class the child
attended. In 2019 one participant applied for the program and received 50% of a field trip. Since
then the City has received no applications for the program. Staff has received inquiries from others
interested in applying for the program but they did not meet the residency requirements.
9aCity Council | Tuesday, June 20, 2023 | Page 217 of 225
Staff has reviewed the existing program, as well as neighboring cities programs, and has made the
following recommendations for program amendments:
• Allow any resident of Mendota Heights regardless of age to participate in the program
• Utilize U.S. Department of Housing and Urban Development area median income limits
for the Minneapolis, St. Paul and Bloomington Metropolitan Area (which includes Dakota
County) to determine the level of financial assistance provided
• Provide a larger city assistance contribution based on income and on a sliding scale format
• Update and allow additional forms of documentation for program approval
• Allow any City recreation program, event, class, camp, or trip to be eligible for assistance
With the amendments to the policy, staff hopes the program is more widely used within the
community and provides a more equitable program.
The current Minneapolis, St. Paul, Bloomington MSA area median income is $124,900 for 2023.
The sliding fee assistance scale would be as follows:
• 0% Participant Contribution = “Extremely Low Income” 30% of Area Median Income
• 10% Participant Contribution: “Very Low Income” 50% of Area Median Income
• 20% Participant Contribution: “60 Percent Limit” 60% of Area Median Income
• 30% Participant Contribution: “Low Income” 80% of Area Median Income
Attachment: Updated Parks and Recreation Scholarship Program Application Form
BUDGET IMPACT
Included in the FY2023 Recreation budget is $1,000 for the Scholarship Program.
ACTION RECOMMENDED
The Parks and Recreation Commission reviewed this item at their June 13 meeting. The
Commission recommended the following additions:
• Allow a tax forms (W2, or Form 1040) as income documentation
• Award funding based on staff discretion
Staff has concerns in regards to the process of determining staff discretion that is fair as
applications would need to be reviewed on a case-by-case basis. With the usage of tax payer
dollars funding this program, direction from the City Council on their desired process and
allowable criteria for need is appreciated.
With these changes to staff’s recommendation at the June 13 meeting, the Parks and Recreation
Commission recommends the City Council approve the amendments to the Parks and Recreation
Scholarship program.
ACTION REQUESTED
If the City Council concurs, it should, by motion, approve the amendments to the Parks and
Recreation Scholarship Program.
City Council | Tuesday, June 20, 2023 | Page 218 of 225
PARKS AND RECREATION
SCHOLARSHIP PROGRAM
The City of Mendota Heights recognizes the importance of all residents having the ability to participate in recreation
programs in the community. The City’s Parks and Recreation Scholarship Program works to provide financial resources
to qualifying Mendota Heights residents to participate in fee-based programs and events to foster positive health and
wellness within the community. This program is open to Mendota Heights residents of all ages.
The program offers financial options for registration-based recreation programs, events, trips, classes or camps. The
program does not cover greens fees at the Par 3 or the Senior Golf Pass. Each participant that receives approval of the
program can receive up to $200 of city funding per calendar year of programming.
Anyone interested in utilizing the City’s Parks and Recreation Scholarship Program is asked to complete the request form
below:
Name of Head of Household:
Birthdate:
Street Address:
City: Mendota Heights State: MN Zip:
Email
Address:
Home/Cell
Phone #:
Please indicate the number of persons in your household and your annual gross income. Income is defined as the total
gross annual income of all family and non-family members 18+ years old living within the household.
Number of People in Household:
Household Annual Gross Income: $
The amount of city contribution will be based upon U.S. Department of Housing and Urban Development income limits
for state, federal and local levels using the sliding scale listed below.
• 0% Participant Contribution = “Extremely Low Income” 30% of Area Median Income
• 10% Participant Contribution: “Very Low Income” 50% of Area Median Income
• 20% Participant Contribution: “60 Percent Limit” 60% of Area Median Income
• 30% Participant Contribution: “Low Income” 80% of Area Median Income
City Council | Tuesday, June 20, 2023 | Page 219 of 225
I meet qualifications as a (check box of criteria met and documentation provided): ☐ Participant in CDA Housing (address serves as documentation) ☐ Veteran (DD214 form serves as documentation) ☐ Active Duty Military Family (military ID card serves as documentation) ☐ Family with a Foster Child (foster care paperwork serves as documentation) ☐ Proof of County Assistance (SNAP or Medical Assistance serves as documentation) ☐ Income-based Social Security (disability or supplemental paperwork serves as documentation) ☐ Most Recent W2 tax form (proof of income level meeting HUD requirements serves as documentation) *If an applicant meets the criteria met and would like to utilize a different form of documentation, reach out to the City’s Parks and Recreation Manager, mlawrence@mendotaheightsmn.gov or 651-255-1354*
Household Participant(s) Name and Date of Birth (Please Print)
Name: Date of Birth:
_______________________________________________ _________________________________
_______________________________________________ _________________________________
_______________________________________________ _________________________________
_______________________________________________ _________________________________
_______________________________________________ _________________________________
_______________________________________________ _________________________________
_______________________________________________ _________________________________
_______________________________________________ _________________________________
_______________________________________________ _________________________________
Signature of Applicant (Parent or Guardian if participant is under 18 years old)
I hereby certify that the information on this form is accurate and complete.
________________________________________________________________________ Date__________________
Received by: Mendota Heights Parks and Recreation Staff
________________________________________________________________________ Date__________________
City Council | Tuesday, June 20, 2023 | Page 220 of 225
Request for City Council Action
DATE: June 20, 2023
TO: Mayor, City Council, and City Administrator
FROM: Ryan Ruzek, P.E., Public Works Director
SUBJECT: Resolution 2023-34 Accept Bids and Award Contract for the Victoria Curve Street
Improvements
INTRODUCTION
The Council is asked to approve Resolution 2023-34 accepting bids and awarding a contract for
the Victoria Curve Street Improvement Project.
BACKGROUND
Council ordered the Victoria Curve Improvements at their February 2, 2022 meeting and directed
staff to prepare plans and specifications for this street reconstruction project. The plans were
approved and authorized to bid at the April 19, 2022 meeting.
DISCUSSION
Four bids (see below) were received per the online bidding platform of QuestCDN on Thursday,
May 26, 2022, at 10:00 a.m. for the Victoria Curve Street Improvements.
Name of Bidder Amount of Bid
Danner Inc. $1,169,094.81
S.M. Hentges & Sons, Inc.$1,277,905.70
OMG Midwest, Inc. $1,384,560.65
Park Construction Co. $1,397,950.59
Meyer Contracting. $1,544,612.28
Danner Inc. submitted the lowest responsible bid of $1,169,094.81. Their bid was less than the
Engineer's Estimate of $1,415,814.40. Danner Inc. is a contractor with many years of experience
with an office in South St. Paul, Minnesota. Staff recommends them for this contract.
The substantial completion date for the project is October 20, 2023. The project also specifies
that the first lift of asphalt be installed on Victoria Curve prior to September 15, 2023. We
expect Danner, Inc., serving in the capacity of General Contractor, is capable of meeting the
completion dates and installing the proposed improvements in accordance with the plans and
specifications given their experience and the amount of equipment and manpower they have at
their disposal.
9bCity Council | Tuesday, June 20, 2023 | Page 221 of 225
BUDGET IMPACT
The Victoria Curve Street Improvements are proposed to be financed by Special Assessments,
Municipal Bonds, Municipal State Aid, Minnesota Department of Transportation, and Utility
Funds. The project costs are further expanded to include indirect costs for administration,
engineering, finance, legal, etc.:
In reviewing the split assessments for the project, Orchard Hill residents would see a higher cost
assessment than Victoria Curve residents. The Council should direct staff if they desire to split
assessments. Staff also recommends reducing the amount of State Aid on the project from
$400,000 to $250,000. The city has additional projects along Delaware Avenue the possible
work on the Marie Bridge that would be eligible for State Aid funding.
RECOMMENDATION
Staff recommends that the Council accept the bids and award the construction contract to Danner
Inc. for their bid in the amount of $1,169,094.81.
ACTION REQUIRED
If City Council wishes to implement the staff recommendation, pass a motion adopting A
RESOLUTION ACCEPTING BIDS AND AWARDING CONTRACT FOR THE
VICTORIA CURVE STREET IMPROVEMENTS. This action requires a simple majority
vote.
City Council | Tuesday, June 20, 2023 | Page 222 of 225
CITY OF MENDOTA HEIGHTS
DAKOTA COUNTY, MINNESOTA
RESOLUTION 2023-34
A RESOLUTION ACCEPTING BIDS AND AWARDING CONTRACT FOR THE
VICTORIA CURVE STREET IMPROVEMENTS
WHEREAS, pursuant to an advertisement for bids for the proposed construction of
bituminous pavement reclamation, aggregate base, concrete curb and gutter, concrete curb and
gutter repair, catch basin repair, bituminous surfacing, storm sewer, trails, ADA improvements,
and appurtenant work of rehabilitating Victoria Curve and Orchard Hill, bids were received,
opened, and tabulated according to law and the following bids were received complying with
said advertisement:
Name of Bidder Amount of Bid
Danner Inc. $1,169,094.81
S.M. Hentges & Sons, Inc. $1,277,905.70
OMG Midwest, Inc. $1,384,560.65
Park Construction Co. $1,397,950.59
Meyer Contracting. $1,544,612.28
;and
WHEREAS, the Public Works Director recommended that the lowest responsible bid
submitted by Danner Inc. of South St. Paul, Minnesota, be accepted.
NOW, THEREFORE, BE IT RESOLVED, by the Mendota Heights City Council as
follows:
1. That the bids for Victoria Curve Street Improvement project are hereby received and
accepted.
2. That the bid of Danner Inc. of South St. Paul, Minnesota, submitted for the construction of
the above described improvements be and the same is hereby accepted.
3. That the contract be awarded to Danner Inc. of South St. Paul, Minnesota, and that the
Mayor and Clerk are hereby authorized and directed to execute and deliver any and all
contracts and documents necessary to consummate the awarding of said bids.
Adopted by the City Council of the City of Mendota Heights this twentieth day of June, 2023.
CITY COUNCIL
CITY OF MENDOTA HEIGHTS
ATTEST
___________________________
Christine Lusian, City Clerk Stephanie B. Levine, Mayor
City Council | Tuesday, June 20, 2023 | Page 223 of 225
TKDA® | 444 Cedar Street Suite 1500 | Saint Paul, MN 55101 651.292.4400 • tkda.com
An employee-owned company promoting affirmative action and equal opportunity.
June 13, 2023
Honorable Mayor and City Council
City of Mendota Heights
1101 Victoria Curve
Mendota Heights, MN, 55102
Re: Victoria Curve Street Improvements
City of Mendota Heights, Minnesota
City Project No. 202305
TKDA Project No. 20304.000
SAP Project No. 140-117-001
Dear Mayor and City Council:
On June 8, 2023 at 10:00 AM, five bids for the Victoria Curve Street Improvements project were received. The
lowest bid was submitted by Danner Inc operating out of South St Paul. A complete Tabulation of Bids is enclosed
for your information.
Contractor Total Base Bid
Danner Inc. $1,169,094.81
S.M Hentges & Sons, Inc. $1,277,905.70
OMG Midwest Inc. $1,384,560.65
Park Construction Co. $1,397,950.59
Meyer Contracting Inc. $1,544,612.28
Engineer’s Estimate $1,415,814.40
Bid Analysis
The low bid from Danner Inc. is approximately 17% ($246,000) under the engineer’s estimate. Bid prices in 2023
have been favorable and improved from the previous few years. Engineering estimates have increased based on
bidding trends and higher materials prices.
Recommendation
Our recommendation is as follows:
1. Receive all bids submitted.
2. Award the contract for the Victoria Curve Street Improvements Project to the lowest responsible bidder,
Danner Inc., for the Total Bid of $1,169,814.40.
Please call or email me with any questions or comments.
Sincerely,
Larry Poppler, PE
Project Manager
(Enclosure)
City Council | Tuesday, June 20, 2023 | Page 224 of 225
Victoria Curve Street Improvements (#8489044)Owner: Lorri SmithSolicitor: TKDA06/08/2023 10:00 AM CDTLine ItemItem DescriptionUofMQuantityUnit PriceExtensionUnit PriceExtensionUnit PriceExtensionUnit PriceExtensionUnit PriceExtensionUnit PriceExtensionSECTION A - Schedule A (STREET & UTILITY RECONSTRUCTION)$1,415,814.40$1,169,094.81$1,277,905.70$1,384,560.65$1,397,950.59$1,544,612.281MOBILIZATIONLS1$53,504.00$53,504.00$40,000.00$40,000.00$52,000.00$52,000.00$54,000.00$54,000.00$50,000.00$50,000.00$77,230.61$77,230.612CLEARINGEA3$1,000.00$3,000.00$1,200.00$3,600.00$800.00$2,400.00$1,754.92$5,264.76$1,785.00$5,355.00$1,541.67$4,625.013GRUBBINGEA3$600.00$1,800.00$250.00$750.00$400.00$1,200.00$501.41$1,504.23$510.00$1,530.00$1,541.67$4,625.014SALVAGE SIGN TYPE CEA1$45.00$45.00$30.00$30.00$105.00$105.00$25.07$25.07$25.50$25.50$25.00$25.005REMOVE DRAINAGE STRUCTUREEA6$260.00$1,560.00$800.00$4,800.00$600.00$3,600.00$531.49$3,188.94$152.01$912.06$821.20$4,927.206REMOVE SIGN TYPE CEA20$50.00$1,000.00$30.00$600.00$55.00$1,100.00$25.07$501.40$25.50$510.00$25.00$500.007REMOVE SIGN TYPE SPECIALEA12$56.00$672.00$30.00$360.00$55.00$660.00$25.07$300.84$25.50$306.00$25.00$300.008SAWING BITUMINOUS PAVEMENT (FULL DEPTH)LIN FT530$2.50$1,325.00$6.00$3,180.00$3.00$1,590.00$3.33$1,764.90$2.70$1,431.00$2.65$1,404.509SAWING CONCRETE PAVEMENT (FULL DEPTH)LIN FT60$5.00$300.00$8.00$480.00$6.00$360.00$9.99$599.40$5.10$306.00$5.00$300.0010REMOVE CURB AND GUTTERLIN FT1817$10.00$18,170.00$9.50$17,261.50$4.00$7,268.00$6.76$12,282.92$10.30$18,715.10$4.99$9,066.8311REMOVE SEWER PIPE (STORM)LIN FT207$30.00$6,210.00$20.00$4,140.00$20.00$4,140.00$19.67$4,071.69$28.21$5,839.47$31.66$6,553.6212REMOVE BITUMINOUS DRIVEWAY PAVEMENTSQ YD62$5.50$341.00$9.00$558.00$7.00$434.00$18.91$1,172.42$10.79$668.98$7.78$482.3613REMOVE CONCRETE WALKSQ YD29$8.80$255.20$10.00$290.00$10.00$290.00$13.06$378.74$10.42$302.18$8.61$249.6914REMOVE CONCRETE DRIVEWAY PAVEMENT SQ YD130$12.00$1,560.00$10.00$1,300.00$6.00$780.00$18.91$2,458.30$12.80$1,664.00$12.28$1,596.4015REMOVE BITUMINOUS WALKSQ FT9701$2.00$19,402.00$1.75$16,976.75$0.50$4,850.50$2.38$23,088.38$0.64$6,208.64$0.66$6,402.6616SALVAGE MAIL BOX SUPPORTEA12$80.00$960.00$200.00$2,400.00$77.00$924.00$75.21$902.52$76.50$918.00$75.00$900.0017SALVAGE BRICK PAVERSSQ FT200$20.00$4,000.00$7.50$1,500.00$7.00$1,400.00$11.33$2,266.00$4.84$968.00$2.01$402.0018GEOTEXTILE FABRIC TYPE 5SQ YD1246$1.20$1,495.20$2.50$3,115.00$2.00$2,492.00$1.98$2,467.08$1.54$1,918.84$2.63$3,276.9819DEWWATERINGLUMP SUM1$4,025.00$4,025.00$500.00$500.00$1.00$1.00$5,014.05$5,014.05$0.01$0.01$10,000.00$10,000.0020SALV MILL BIT & AGG FROM STOCKPILE (SV)CU YD2162$20.00$43,240.00$8.00$17,296.00$16.30$35,240.60$17.93$38,764.66$0.01$21.62$14.42$31,176.0421CRUSHED ROCK (1" CLEAR)TON114$40.00$4,560.00$35.00$3,990.00$39.00$4,446.00$65.78$7,498.92$43.72$4,984.08$75.85$8,646.9022CRUSHED ROCK (3" MINUS)TON145$40.00$5,800.00$23.00$3,335.00$50.00$7,250.00$54.34$7,879.30$31.36$4,547.20$75.85$10,998.2523COMMON EMBANKMENTCU YD526$15.00$7,890.00$10.00$5,260.00$10.00$5,260.00$33.44$17,589.44$37.51$19,730.26$38.67$20,340.4224SELECT GRANULAR EMBANKMENT (CV)CU YD427$18.00$7,686.00$18.00$7,686.00$52.00$22,204.00$20.67$8,826.09$48.62$20,760.74$65.33$27,895.9125EXCAVATION - COMMONCU YD2941$10.00$29,410.00$17.00$49,997.00$22.00$64,702.00$19.43$57,143.63$0.01$29.41$39.45$116,022.4526EXCACATION - SUBGRADECU YD427$12.00$5,124.00$17.00$7,259.00$12.00$5,124.00$26.86$11,469.22$30.84$13,168.68$41.31$17,639.3727TEST ROLLINGROAD STA46$150.00$6,900.00$50.00$2,300.00$67.00$3,082.00$27.97$1,286.62$75.64$3,479.44$68.18$3,136.2828SUBGRADE PREPARATIONROAD STA46$800.00$36,800.00$185.00$8,510.00$405.00$18,630.00$398.52$18,331.92$292.36$13,448.56$491.72$22,619.1229STREET SWEEPER (WITH PICKUP BROOM)HOUR152$340.00$51,680.00$160.00$24,320.00$180.00$27,360.00$15.04$2,286.08$0.01$1.52$160.00$24,320.00301.5 CU YD BACKHOEHOUR32$205.00$6,560.00$50.00$1,600.00$520.00$16,640.00$240.67$7,701.44$187.15$5,988.80$351.22$11,239.0431WATERM GALLON120$55.00$6,600.00$35.00$4,200.00$55.00$6,600.00$45.13$5,415.60$53.52$6,422.40$66.18$7,941.6032STOCKPILE AGGREGATE (CV)CU YD2162$15.00$32,430.00$12.00$25,944.00$7.00$15,134.00$9.32$20,149.84$0.01$21.62$13.03$28,170.8633AGGREGATE BASE CLASS 5TON1000$16.00$16,000.00$15.00$15,000.00$30.00$30,000.00$17.37$17,370.00$0.01$10.00$64.52$64,520.0034SHOULDER BASE AGGREGATE SPECIALTON154$30.00$4,620.00$35.00$5,390.00$44.00$6,776.00$59.44$9,153.76$20.29$3,124.66$91.46$14,084.8435FULL DEPTH RECLAMATIONSQ YD17427$2.50$43,567.50$1.85$32,239.95$2.50$43,567.50$6.35$110,661.45$10.57$184,203.39$1.85$32,239.9536TYPE SP 9.5 WEARING COURSE MIXTURE (3,C)TON4273$100.00$427,300.00$76.00$324,748.00$93.70$400,380.10$90.25$385,638.25$90.20$385,424.60$83.21$355,556.3337TYPE SP 9.5 WEARING COURSE MIXTURE (3,C) DRIVEWAYSTON12$120.00$1,440.00$275.00$3,300.00$240.00$2,880.00$291.00$3,492.00$258.64$3,103.68$190.48$2,285.7638BITUMINOUS PATCHING MIXTURETON110$145.00$15,950.00$75.00$8,250.00$160.00$17,600.00$200.00$22,000.00$130.57$14,362.70$160.40$17,644.0039TYPE SP 9.5 WEARING COURSE MIXTURE (2,B) TRAILTON234$120.00$28,080.00$114.00$26,676.00$100.00$23,400.00$92.00$21,528.00$149.42$34,964.28$86.22$20,175.4840CONCRETE STAIRWAYEA1$5,000.00$5,000.00$20,000.00$20,000.00$16,800.00$16,800.00$19,604.95$19,604.95$21,473.71$21,473.71$21,052.66$21,052.6641PIPE RAILINGLIN FT10$200.00$2,000.00$150.00$1,500.00$337.00$3,370.00$0.01$0.10$336.60$3,366.00$330.00$3,300.004215" RC PIPE APRONEA3$1,200.00$3,600.00$3,800.00$11,400.00$2,200.00$6,600.00$2,236.51$6,709.53$2,389.08$7,167.24$2,399.80$7,199.404312" RC PIPE SEWER DESIGN 3006 CLASS VLIN FT66$100.00$6,600.00$95.00$6,270.00$105.00$6,930.00$84.78$5,595.48$84.72$5,591.52$127.84$8,437.444415" RC PIPE SEWER DESIGN 3006 CLASS VLIN FT624$110.00$68,640.00$87.00$54,288.00$130.00$81,120.00$91.42$57,046.08$91.44$57,058.56$120.80$75,379.2045CONNECT TO EXISTING STORM SEWEREA2$1,000.00$2,000.00$2,500.00$5,000.00$3,000.00$6,000.00$4,783.41$9,566.82$2,117.93$4,235.86$1,378.46$2,756.9246ADJUST VALVE/SERVICE STOP BOXEA2$430.00$860.00$1,050.00$2,100.00$800.00$1,600.00$718.79$1,437.58$328.86$657.72$1,068.53$2,137.0647ADJUST FRAME AND RING CASTINGEA23$750.00$17,250.00$1,500.00$34,500.00$800.00$18,400.00$642.07$14,767.61$1,125.97$25,897.31$790.10$18,172.3048CASTING ASSEMBLYEA12$1,000.00$12,000.00$1,500.00$18,000.00$1,200.00$14,400.00$1,528.48$18,341.76$865.53$10,386.36$1,896.27$22,755.2449CONSTRUCT DRAINAGE STRUCTURE DESIGN HLIN FT10$500.00$5,000.00$278.00$2,780.00$460.00$4,600.00$527.24$5,272.40$737.16$7,371.60$915.98$9,159.8050CONSTRUCT DRAINAGE STRUCTURE DESIGN SPEC 1 (2X3 CB)LIN FT11$550.00$6,050.00$463.00$5,093.00$460.00$5,060.00$622.11$6,843.21$645.64$7,102.04$964.00$10,604.0051CONSTRUCT DRAINAGE STRUCTURE DESIGN SPEC 2 (48" MH)LIN FT11$750.00$8,250.00$435.00$4,785.00$750.00$8,250.00$958.81$10,546.91$1,127.25$12,399.75$1,641.52$18,056.7252CONSTRUCT DRAINAGE STRUCTURE DESIGN SPEC 3 (58" MH)LIN FT16$800.00$12,800.00$840.00$13,440.00$800.00$12,800.00$904.33$14,469.28$1,128.50$18,056.00$1,478.02$23,648.3253CONSTRUCT RAIN GARDENSQ YD160$250.00$40,000.00$95.00$15,200.00$120.00$19,200.00$76.21$12,193.60$102.88$16,460.80$121.32$19,411.2054RANDOM RIPRAP CLASS IIITON14$92.00$1,288.00$100.00$1,400.00$155.00$2,170.00$159.45$2,232.30$107.14$1,499.96$132.19$1,850.66556" CONCRETE WALKSQ FT893$16.00$14,288.00$16.00$14,288.00$13.50$12,055.50$15.94$14,234.42$28.29$25,262.97$27.40$24,468.2056DRILL & GROUT DOWEL BAR (EPOXY COATED)EA18$24.00$432.00$25.10$451.80$13.00$234.00$25.07$451.26$20.62$371.16$20.22$363.9657CONCRETE CURB & GUTTER DESIGN B618LIN FT2687$40.00$107,480.00$30.50$81,953.50$25.00$67,175.00$30.49$81,926.63$40.31$108,312.97$38.06$102,267.22586" CONCRETE DRIVEWAY PAVEMENT SQ YD130$75.00$9,750.00$108.00$14,040.00$74.00$9,620.00$102.89$13,375.70$112.08$14,570.40$106.87$13,893.10598" CONCRETE DRIVEAY PAVEMENT SQ YD98$100.00$9,800.00$135.00$13,230.00$85.00$8,330.00$129.96$12,736.08$146.49$14,356.02$140.61$13,779.78608" VALLEY GUTTERLIN FT235$45.00$10,575.00$56.00$13,160.00$52.00$12,220.00$56.06$13,174.10$75.32$17,700.20$70.83$16,645.0561TRUNCATED DOMESSQ FT111$55.00$6,105.00$85.00$9,435.00$62.00$6,882.00$85.24$9,461.64$45.90$5,094.90$45.00$4,995.0062INSTALL MAIL BOX SUPPORT EA12$80.00$960.00$200.00$2,400.00$127.00$1,524.00$125.35$1,504.20$127.50$1,530.00$125.00$1,500.0063INSTALL BRICK PAVERSSQ FT200$30.00$6,000.00$16.25$3,250.00$17.00$3,400.00$16.19$3,238.00$16.32$3,264.00$67.60$13,520.0064BLOCK RETAINING WALLSQ FT525$75.00$39,375.00$40.00$21,000.00$45.00$23,625.00$39.11$20,532.75$44.28$23,247.00$47.29$24,827.2565TRAFFIC CONTROLLUMP SUM1$13,000.00$13,000.00$30,000.00$30,000.00$5,500.00$5,500.00$63,400.00$63,400.00$70,415.00$70,415.00$8,250.00$8,250.0066INSTALL SIGN TYPE CEA1$150.00$150.00$155.00$155.00$310.00$310.00$150.42$150.42$153.00$153.00$150.00$150.0067SIGN TYPE CSQ FT118$72.00$8,496.00$48.00$5,664.00$61.00$7,198.00$48.13$5,679.34$48.96$5,777.28$48.00$5,664.0068SIGN TYPE SPECIALSQ FT33$120.00$3,960.00$33.00$1,089.00$71.00$2,343.00$43.12$1,422.96$43.86$1,447.38$43.00$1,419.0069ORNAMENTAL TREE 5' HT B&BEA3$950.00$2,850.00$426.00$1,278.00$450.00$1,350.00$426.19$1,278.57$981.27$2,943.81$425.00$1,275.0070CONIFEROUS SHRUB 2' SPREAD CONTEA27$100.00$2,700.00$53.00$1,431.00$55.00$1,485.00$52.15$1,408.05$222.08$5,996.16$52.00$1,404.0071CONIFEROUS SHRUB 3' SPREAD CONTEA9$125.00$1,125.00$66.00$594.00$70.00$630.00$66.19$595.71$263.39$2,370.51$66.00$594.0072ITEM DELETEDEA0.00E+00$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.00$206.58$0.00$0.00$0.0073DECIDUOUS SHRUB NO 2 CONTEA85$100.00$8,500.00$39.20$3,332.00$42.00$3,570.00$39.11$3,324.35$206.58$17,559.30$39.00$3,315.0074DECIDUOUS SHRUB 2' HT CONTEA55$100.00$5,500.00$44.20$2,431.00$46.00$2,530.00$44.12$2,426.60$211.75$11,646.25$44.00$2,420.0075DECIDUOUS SHRUB 4' HT CONTEA12$125.00$1,500.00$92.00$1,104.00$98.00$1,176.00$92.26$1,107.12$278.89$3,346.68$92.00$1,104.0076PERENNIAL 1 GAL CONTEA41$50.00$2,050.00$23.00$943.00$25.00$1,025.00$23.06$945.46$67.14$2,752.74$23.00$943.0077ORNAMENTAL GRASS NO 1 CONTEA16$50.00$800.00$18.50$296.00$19.00$304.00$18.05$288.80$67.14$1,074.24$18.00$288.0078STABILIZED CONSTRUCTION EXITLUMP SUM1$3,000.00$3,000.00$2,000.00$2,000.00$2,150.00$2,150.00$1,002.81$1,002.81$0.01$0.01$9,962.72$9,962.7279STORM DRAIN INLET PROTECTIONEA35$170.00$5,950.00$175.00$6,125.00$165.00$5,775.00$155.44$5,440.40$201.21$7,042.35$389.49$13,632.1580SILT FENCE TYPE MSLIN FT2808$5.00$14,040.00$2.15$6,037.20$2.00$5,616.00$2.06$5,784.48$2.09$5,868.72$2.55$7,160.4081SEDIMENT CONTROL LOG TYPE COMPOSTLIN FT4323$3.00$12,969.00$2.50$10,807.50$2.50$10,807.50$2.36$10,202.28$2.40$10,375.20$3.15$13,617.4582COMMON TOPSOIL BORROWCU YD243$40.00$9,720.00$32.00$7,776.00$34.00$8,262.00$32.09$7,797.87$0.01$2.43$73.42$17,841.0683FERTILIZER TYPE 3POUND182$1.00$182.00$2.00$364.00$2.00$364.00$2.01$365.82$2.04$371.28$3.00$546.0084ROLLED EROSION PREVENTION CATEGORY 20SQ YD1224$2.00$2,448.00$2.00$2,448.00$2.00$2,448.00$2.01$2,460.24$2.04$2,496.96$3.50$4,284.0085SOIL BED PREPARATIONACRE0.24$1,500.00$360.00$2,000.00$480.00$2,200.00$528.00$2,005.62$481.35$2,040.00$489.60$6,000.00$1,440.0086RAPID STABILIZATION METHOD 3ACRE0.24$4,000.00$960.00$3,000.00$720.00$3,200.00$768.00$6,016.86$1,444.05$3,060.00$734.40$1,000.00$240.0087SEEDINGACRE0.24$3,500.00$840.00$6,000.00$1,440.00$6,400.00$1,536.00$6,016.86$1,444.05$6,120.00$1,468.80$6,000.00$1,440.0088SEED MIXTURE 25-131POUND183$5.00$915.00$5.03$920.49$5.50$1,006.50$5.01$916.83$5.10$933.30$10.00$1,830.0089SEED MIXTURE 25-151POUND10$5.00$50.00$7.00$70.00$7.50$75.00$7.02$70.20$7.14$71.40$10.00$100.0090STABILIZED FIBER MATRIXPOUND2705$1.20$3,246.00$9.00$24,345.00$2.10$5,680.50$2.01$5,437.05$2.04$5,518.20$2.59$7,005.95914" SOLID LINE MULTI COMPONENT (WR)LIN FT7626$1.00$7,626.00$0.62$4,728.12$0.75$5,719.50$0.60$4,575.60$0.62$4,728.12$0.60$4,575.60924" DOUBLE SOLID LINE MULTI COMPONENT (WR)LIN FT3675$1.50$5,512.50$1.20$4,410.00$1.50$5,512.50$1.20$4,410.00$1.24$4,557.00$1.20$4,410.00Base Bid Total:$1,415,814.40$1,169,094.81$1,277,905.70$1,384,560.65$1,397,950.59$1,544,612.28Engineer EstimateDanner Inc.S.M. Hentges & Sons, Inc.Park Construction CompanyOMG Midwest Inc. dba Minnesota Paving & MaterialsMeyer Contracting Inc. City Council | Tuesday, June 20, 2023 | Page 225 of 225