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City Council Agenda Packet 05-24-2021AGENDA REGULAR MEETING — MONTICELLO CITY COUNCIL Monday, May 24, 2021— 6:30 p.m. Mississippi Room, Monticello Community Center CITY COUNCIL SPECIAL MEETINGS Monticello Community Center (Bridge Room) 4:45 p.m. Closed Meeting —Discuss Offer to Sell Property PID 155-176-001020 (Jefferson Commons 1st Addition, Lot 1, Block 1) Discuss Offer to Purchase Property PID 155-230-000010 (Cedar Street Addition, Outlot A) Closed meeting authorized by Minnesota Statute 13D.05, Subd. 3 5:30 p.m. Parks, Arts & Recreation Department Discussion Mayor: Lloyd Hilgart Council Members: Jim Davidson, Charlotte Gabler, Brian Hudgins, Sam Murdoff 1. General Business A. Call to Order & Pledge of Allegiance B. Approval of Agenda — Councilmembers or the City Administrator may add items to the agenda for discussion purposes or approval. The City Council may or may not take official action on items added to the agenda. C. Approval of Meeting Minutes • Joint Meeting Minutes from May 10, 2021 • Regular Meeting Minutes from May 10, 2021 D. Citizen Comments — Individuals may address the City Council about any item not contained on the agenda. Each speaker will be allotted three minutes with a maximum of five speakers. The Mayor may allow for additional time and/or speakers. The City Council generally takes no official action of items discussed, except for referral to staff for future report. E. Public Service Announcements • Memorial Day Hours • Walk & Roll • Summer Swimming Lessons F. Council Liaison Updates • EDA • MOAA 0 1-94 Coalition G. Department Updates • WCSO Quarterly Update (when meeting starts) • MontiArts Update • Finance Department Annual Update • Construction Update • City Administrator Update - Great River Soccer Club - Covid-19 Update/Return to Work 2. Consent Agenda — All items listed on the Consent Agenda are considered standard or may not need discussion prior to approval. These items are acted upon by one motion unless a councilmember, the city administrator, or a citizen requests the item by removed from consent for additional discussion. A. Consideration of approving payment of bills B. Consideration of approving new hires and departures for City departments C. Consideration of approving the sale/disposal of surplus city property D. Consideration of approving annual liquor license renewals for 2021-2022 E. Consideration of adopting Resolution 2021-35 rescinding emergency order F. Consideration of approving an updated facility hours schedule G. Consideration of adopting Resolution 2021-34 opting to participate in the Wright County Economic Development Authority H. Consideration of extending the lease for Fred's auto building, 349 W. Broadway I. Consideration of approving closure of a portion of Hart Boulevard from 7:00 a.m. —1:00 p.m. on Saturday, June 12, 2021 J. Consideration of approving a temporary waiver of construction activities noise regulations, City Code 130.09 (3) for Hoffman Construction, Inc. for the 1-94 Expansion Project K. Consideration of authorizing the purchase of two -post vehicle lift from Mohawk Resources LTD in the amount of $17,036.36 L. Consideration of authorizing the purchase of a VariTech anti icing system from Bert's Truck and Equipment for a total of $26,369 and declaring the 1982 Ford water truck as surplus 2A. Consideration of items removed from the consent agenda for discussion 3. Public Hearings 4. Regular Agenda A. Consideration of accepting the 2020 Comprehensive Annual Financial Report 5. Adjournment AGENDA CITY COUNCIL SPECIAL MEETING Monday, May 24, 2021— 4:45 p.m. Monticello Community Center AGENDA 1. Call to Order 2. 4:45 p.m. CLOSED MEETING — Discuss Offer to Sell Property PID 155-176-001020 (Jefferson Commons 1St Addition, Lot 1, Block 1) Discuss Offer to Purchase Property PID 155-230-000010 (Cedar Street Addition, Outlot A) Closed meeting authorized by Minnesota Statute 13D.05, Subd. 3 3. 5:30 p.m. Parks, Arts & Recreation Department Discussion 4. Adjournment MINUTES JOINT MEETING MONTICELLO CITY COUNCIL/PLANNING COMMISSION Monday, May 10, 2021— 4:30 p.m. Mississippi Room, Monticello Community Center Present: City Council: Lloyd Hilgart, Jim Davidson, Charlotte Gabler, Brian Hudgins, Sam Murdoff Planning Commission: Paul Konsor, John Alstad, Andrew Tapper, Alison Zimpfer, and Eric Hagen Absent: None Others: Rachel Leonard, Angela Schumann, Jim Thares, Tom Pawelk, Matt Leonard, Steve Grittman, and Jennifer Schreiber Developers: Jeff Von Feldt, Richard Palmiter, 1. Call to Order Mayor Hilgart called joint meeting to order at 4:30 p.m. 2. 4:30 p.m. Duffy Development Multi -Family Concept PUD Proposal Steve Grittman, NAC, provided an overview of the proposed project which will be located at the southern corner of 7' Street West and Elm Street. The project proposal will provide 59 units of workforce housing with rents that will serve households with incomes at or below 50% of the area median income. The project consists of a multi- family structure, plus the addition of six 4 -bedroom units in three duplexes. The site is currently owned by Riverwood Bank. The developers requested that the parcel to be rezoned to Planned Unit Development, PUD, utilizing the R-4, Medium -High Residence District as the baseline zoning for comparative purposes. The applicant is looking for specific feedback in various areas of the project. The applicant must submit a funding application to Minnesota Housing in July, 2021. The main funding source is the Housing Tax Credit program. This is a competitive program and awards will be announced in December 2021. If approved, the project would not be complete until summer 2023. There was some discussion among City Council, Planning Commission, and the developer. Tom Pawelk, Parks Superintendent, noted that the pedestrian traffic would need to be addressed as there are missing pathways and sidewalk segments north and east. There was some discussion on whether this area would qualify for Safe Routes to School funding. Councilmember Gabler questioned the location of the townhomes being closest to the interstate. Jeff Von Feldt noted that they prefer townhomes in that area because the location slope more easily allows underground parking. Eric Hagen questioned the location of the entrance and that it maybe would be better to have on the west side. City Council Special Meeting Minutes — May 10, 2021 Mayor Hilgart was not completely convinced that this was the best location and noted that senior affordable housing may be a bigger need. However, he is supportive of the project and Duffy Development's ability to do a good project. Mr. Von Feldt responded that the State is recognizing the need for affordable senior housing, however, funding is dedicated primarily to affordable workforce housing. Overall, the City Council and Planning Commission expressed support for the project. The next step for Duffy Development is to meet with the EDA to discuss funding and apply to the State of Minnesota by July 15, 2021. 3. Adjournment By consensus, the meeting was adjourned at 5:51 p.m. Recorder: Jennifer Schreiber Approved: Attest: City Council Special Meeting Minutes — May 10, 2021 City Administrator REGULAR MEETING — MONTICELLO CITY COUNCIL Monday, May 10, 2021— 6:30 p.m. Mississippi Room, Monticello Community Center Present: Lloyd Hilgart, Jim Davidson, Charlotte Gabler, Brian Hudgins, and Sam Murdoff Absent: None 1. General Business A. Call to Order & Pledge of Allegiance Mayor Hilgart called the meeting to order at 6:30 p.m. B. Approval of Agenda Councilmember Davidson moved approval of the agenda. Councilmember Gabler seconded the motion. Motion carried unanimously. C. Approval of Meeting Minutes • Joint City Council/Planning Commission Meeting Minutes from April 12, 2021 • Special Meeting Minutes from April 26, 2021 • Regular Meeting Minutes from April 26, 2021 Councilmember Gabler moved approval of the three sets of minutes. Councilmember Murdoff seconded the motion. Motion carried unanimously. D. Citizen Comments None. E. Public Service Announcements • Reserved Firefighter Informational Meeting will be held Tuesday, May 11, 2021. • Farmers Market will be open May 27 — September 30, 2021. • Walk & Roll event is on June 12, 2021, from 9 a.m. until noon. F. Council Liaison Updates • IEDC — Councilmember Hudgins noted that the IEDC received a presentation about the 2020 Census statewide results and discussed upcoming topics to review in June 2021, including the 2021 Legislative Update. • Planning Commission — Councilmember Gabler provided an overview of the meeting held on May 4. The Planning Commission reviewed the amendment for Nuss Truck & Equipment, an extension of a variance for side yard setback, and an administrative appeal from Capstone Homes. City Council Minutes May 10, 2021 Page 1 1 3 Department Update • Construction Update — Matt Leonard noted the following construction updates: Chelsea Road will be closed Monday, May 17 for approximately two days; 1-94 is in progress. MontiArts Update — Tom Pawelk previewed the artwork that is going to be installed on the Monticello Community Center. It will be located near Door 6, by the Senior Center access. 2. Consent Agenda: Councilmember Hudgins moved approval of the Consent Agenda. Councilmember Murdoff seconded the motion. Motion carried unanimously. A. Consideration of approving the payment of bills. Recommendation: Approved the bill and purchase card registers for a $629,006.33. B. Consideration of approving new hires and departures for city departments. Recommendation: Approved the hire for MCC and the terminations for DMV and MCC. C. Consideration of approving the sale/disposal of surplus city property for the Monticello Community Center. Recommendation: Approved as presented. D. Consideration of adopting Resolution 2021-31 accepting a donation of $500 from Cargill for median plantings at Walnut & Broadway and $400 from JK Amusements for Liquor Store general use. Recommendation: Mayor Hilgart recognized the donors. Resolution accepting the donations was adopted. Consideration of adopting Resolution 2021-32 accepting grant funding in the amount of $19,000 from Central Minnesota Arts Board for MontiArts Creative Support and for a sculpture at East Bridge Park. Recommendation: Resolution accepting the grant from the CMAB was adopted. Consideration of approving an application for a temporary charitable gambling permit for a raffle to be conducted on September 11, 2021, by the Wright County Pheasants Forever at River City Extreme, 3875 School Blvd. in conjunction with their annual membership banquet. Recommendation: The temporary charitable gambling permit was approved. G. Consideration of adopting Ordinance 761 approving rezoning to Planned Unit Development (PUD) and adopting Resolution 2021-33 approving the Final Plat, Final Stage PUD and Development Agreement for Storage Link, Monticello. Recommendation: Ordinance 761 rezoning the proposed Lot 1, Block 1, StorageLink Monticello from B-3 to StorageLink Monticello Planned Unit Development was approved and Resolution 2021-33 approving the Final Plat and Final Stage PUD for StorageLink Monticello was adopted. H. Consideration of adopting Ordinance 760 approving an amendment to Nuss Truck & Equipment Planned Unit Development for buffer yard landscaping. Applicant: Nuss Truck and Equipment (Phil Watkins). Recommendation: City Council Minutes May 10, 2021 Page 2 1 3 Adopted Ordinance 760 approving an amendment to Nuss Truck & Equipment Planned Unit Development, subject to conditions in Exhibit Z as amended by the Planning Commission and based on findings in Planning Commission Resolution 2021-015. Consideration of authorizing Hentges Land Corp to grade a stormwater swale in Spirit Hills for $15,700. Recommendation: Approved a contract with Hentges Land Corp to grade a Stormwater swale in Spirit Hills in the amount of $15,700. Consideration of approving a temporary waiver of construction activities noise regulations, City Code 130.09(3) for UMC expansion, Lot 2, Block 1, Monticello Commerce Center 6t" Addition. Recommendation: Approved a temporary waiver of noise regulations for the UMC expansion project, Lot 2, Block 1, Monticello Commerce Center 6t" Addition to permit site -related construction activity to begin at 6:00 a.m. through September 1, 2021 subject to written notification to surrounding property owners. 4. Regular Agenda: 5. Adjournment: By consensus, the meeting was adjourned at 6:40 p.m. Recorder: Jennifer Schreiber Approved: Attest: City Administrator City Council Minutes May 10, 2021 Page 3 1 3 City Council Agenda: 05/24/2021 2A. Consideration of approving payment of bills Prepared by: Meeting Date: ❑ Regular Agenda Item Finance Director 05/24/2021 ® Consent Agenda Item Reviewed by: Approved by: N/A City Administrator ACTION REQUESTED Motion to approve the bill and purchase card registers for a total amount of $651,854.70. REFERENCE AND BACKGROUND City staff submits the attached bill registers and purchasing card registers for approval by Council. The bill registers contain all invoices processed and the purchasing card registers contain all card purchases made since the last Council meeting. Subject to MN Statutes, most invoices require Council approval prior to releasing checks for payment. The day following Council approval, payments will be released unless directed otherwise. A credit purchasing agreement and policy was approved by Council initially and card purchases must comply with the policy. If Council has no questions or comments on the bill and purchase card registers, these can be approved with the consent agenda. If requested, this item can be removed from consent and discussed prior to making a motion for approval. I. Budget Impact: N/A II. Staff Workload Impact: No additional work. III. Comprehensive Plan Impact: N/A STAFF RECOMMENDED ACTION City staff recommends approval of bill and purchase card registers as presented. SUPPORTING DATA • Bill registers and purchase card registers Accounts Payable CITY' OF Computer Check Proof List by Vendor Moiiii6effo User: Debbie.Davidson Printed: 05/19/2021 - 12:45PM Batch: 00203.05.2021 - 203.05.2021 AP Invoice No Description Amount Payment Date Acct Number Reference Vendor: 2925 1 ST LINE/LEEWES VENTURES LLC Check Sequence: 1 ACH Enabled: False 138928 Flavored Syrups for Concession (4) 404.75 05/25/2021 226-45125-425410 Check Total: 404.75 Vendor: 5167 3D SPECIALTIES INC. Check Sequence: 2 ACH Enabled: False 221860 (35) 9"x12" digital sign push button 253.56 05/25/2021 101-43120-422600 Check Total: 253.56 Vendor: 5660 ABSOLUTE PRINT GRAPHICS Check Sequence: 3 ACH Enabled: False 56598 UB March Invoices (3618) Print, Fold, Stuff, En 657.14 05/25/2021 601-49440-431800 56598 UB March Invoices (3618) Print, Fold, Stuff, En 657.13 05/25/2021 602-49490-431800 56758 UB April Invoices (3616) Print, Fold, Stuff, Envi 847.78 05/25/2021 601-49440-431800 56758 UB April Invoices (3616) Print, Fold, Stuff, Env, 847.77 05/25/2021 602-49490-431800 56758 Recycling Day Insert (3700) 550.00 05/25/2021 101-41310-443990 56931 UB May Invoices (3616) Print, Fold, Stuff, Enve 656.80 05/25/2021 601-49440-431800 56931 UB May Invoices (3616) Print, Fold, Stuff, Enve 656.79 05/25/2021 602-49490-431800 56931 Walk & Roll Insert (3700) 273.48 05/25/2021 101-45130-444140 Check Total: 5,146.89 Vendor: 5184 ADVANCED GRAPHIX INC. Check Sequence: 4 ACH Enabled: False 206266 2019 F-150- reflective stripes; chevrons; remove 1,070.00 05/25/2021 101-42200-440500 Check Total: 1,070.00 Vendor: 5731 JAMES ALTENDAHL Check Sequence: 5 ACH Enabled: False 5/18/2021 Performance @ Farmers Market 6/10/21 300.00 05/25/2021 226-45127-431990 Check Total: 300.00 Vendor: 1977 ANCOM COMMUNICATIONS INC Check Sequence: 6 ACH Enabled: False 101693 (5) volume knob; (5) channel knob 65.00 05/25/2021 101-42200-422100 AP -Computer Check Proof List by Vendor (05/19/2021 - 12:45 PM) Page 1 Invoice No Description Amount Payment Date Acct Number Reference AP -Computer Check Proof List by Vendor (05/19/2021 - 12:45 PM) Page 2 Check Total: 65.00 Vendor: 5732 BROCKANDREWS Check Sequence: 7 ACH Enabled: True 5/17/21 2021 boot reimbursement- Fleet Farm - 1/2 Watt 75.00 05/25/2021 601-49440-421990 5/17/21 2021 boot reimbursement- Fleet Farm - 1/2 Sew( 75.00 05/25/2021 602-49490-421990 Check Total: 150.00 Vendor: 3491 ARTISAN BEER COMPANY Check Sequence: 8 ACH Enabled: False 3473144 resale- beer 236.65 05/25/2021 609-49750-425200 Check Total: 236.65 Vendor: 4502 ARVIG Check Sequence: 9 ACH Enabled: True 0002697713 003 Managed Services - May 2020 1,145.60 05/25/2021 702-00000-431900 315578 April 2021 FNM expenses - Calix; Border States 11,134.41 05/25/2021 656-49877-422990 5/8/2021 IT Services - May 2021 73.00 05/25/2021 702-00000-431990 Check Total: 12,353.01 Vendor: 1051 BAILEY NURSERIES INC Check Sequence: 10 ACH Enabled: False 618817 resale -(135) Spring Trees 3,405.50 05/25/2021 101-46102-421990 619404 resale -(175) Spring Trees 5,210.50 05/25/2021 101-46102-421990 Check Total: 8,616.00 Vendor: 5727 LUCAS JAMES BAKKEN Check Sequence: 11 ACH Enabled: False 5/17/2021 Performance @ Farmer's Market 5/27/21 100.00 05/25/2021 226-45127-431990 Check Total: 100.00 Vendor: 1062 BEAUDRY OIL COMPANY Check Sequence: 12 ACH Enabled: True 1824519 (42.30) gal. ultrapure def 111.33 05/25/2021 101-43120-421200 Check Total: 111.33 Vendor: 1065 BELLBOY CORPORATION Check Sequence: 13 ACH Enabled: True 103203300 freight 2.55 05/25/2021 609-49750-433300 103203300 resale- mix 125.00 05/25/2021 609-49750-425400 103203300 resale- juice 120.60 05/25/2021 609-49750-425500 103203300 asst. bags 310.25 05/25/2021 609-49754-421990 89146700 resale- wine 176.00 05/25/2021 609-49750-425300 89146700 resale- liquor 11,853.83 05/25/2021 609-49750-425100 89146700 freight 130.98 05/25/2021 609-49750-433300 AP -Computer Check Proof List by Vendor (05/19/2021 - 12:45 PM) Page 2 Invoice No Description Amount Payment Date Acct Number Reference 89208300 freight credit inv.# 89146700 -3.10 05/25/2021 609-49750-433300 89208300 resale - liquor credit inv. # 89146700 -352.00 05/25/2021 609-49750-425100 89256200 resale -liquor 8,485.47 05/25/2021 609-49750-425100 89256200 resale- wine 188.00 05/25/2021 609-49750-425300 89256200 freight 84.61 05/25/2021 609-49750-433300 89278200 resale -liquor 272.00 05/25/2021 609-49750-425100 89335600 resale -liquor 2,806.05 05/25/2021 609-49750-425100 89335600 freight 32.81 05/25/2021 609-49750-433300 89343800 resale -liquor 267.00 05/25/2021 609-49750-425100 Check Total: 24,500.05 Vendor: 1067 BERNICK'S Check Sequence: 14 ACH Enabled: False 208038 resale - soda pop 45.48 05/25/2021 609-49750-425400 208039 resale - beer n/a 182.50 05/25/2021 609-49750-425400 208039 resale - beer 3,002.10 05/25/2021 609-49750-425200 210409 resale - soda pop 201.32 05/25/2021 609-49750-425400 210411 resale - beer credit breakage -24.00 05/25/2021 609-49750-425200 Check Total: 3,407.40 Vendor: 1074 BOLTON AND MENK INC Check Sequence: 15 ACH Enabled: False 0267946 200002 CONSTR - 2020 Stonnwater improvem 11,856.50 05/25/2021 652-00000-165010 Check Total: 11,856.50 Vendor: 5730 BOURGET IMPORTS, LLC Check Sequence: 16 ACH Enabled: True 177352 resale- wine 616.00 05/25/2021 609-49750-425300 177352 freight 12.50 05/25/2021 609-49750-433300 Check Total: 628.50 Vendor: 4328 BREAKTHRU BEVERAGE MN WINE & SPIF Check Sequence: 17 ACH Enabled: False 339408129 resale -liquor 4,590.13 05/25/2021 609-49750-425100 339408129 resale - mix 94.35 05/25/2021 609-49750-425400 339408129 freight 55.00 05/25/2021 609-49750-433300 Check Total: 4,739.48 Vendor: 2784 BUELL CONSULTING Check Sequence: 18 ACH Enabled: False 5/6/2021 ZVERI - Escrow Refund 5,315.00 05/25/2021 101-00000-220110 Check Total: 5,315.00 AP -Computer Check Proof List by Vendor (05/19/2021 - 12:45 PM) Page 3 Invoice No Description Amount Payment Date Acct Number Reference Vendor: 1091 CAMPBELL KNUTSON PA Check Sequence: 19 ACH Enabled: True 2348-OOOIG 138 Code Enforcement Services - April 2021 81.60 05/25/2021 101-42400-430400 2348-0155G 29 16C006 - Bluffs in Monticello Assessment Appe 64.00 05/25/2021 400-43300-430400 2348-0157G 6 202107 - Groveland 5th Addition/StorageLink - . 18.00 05/25/2021 101-00000-220110 2348-0173G 4 21D003 - Nuss Truck & Equipment Addition - A 440.00 05/25/2021 101-00000-220110 2348-0174G 1 202107 - StorageLink Plat - April 2021 226.60 05/25/2021 101-00000-220110 2348-0175G 1 202109 - Haven Ridge 2nd Addition Plat - April 179.40 05/25/2021 101-00000-220110 2348-0176G 1 202104 - CorTrust Bank Plat - April 2021 28.60 05/25/2021 101-41910-431990 Check Total: 1,038.20 Vendor: 4646 CAPITOL BEVERAGE SALES L.P. Check Sequence: 20 ACH Enabled: True 14710278 resale- mix credit -49.50 05/25/2021 609-49750-425400 2544623 resale- beer 19,207.27 05/25/2021 609-49750-425200 2544623 resale- juice 119.94 05/25/2021 609-49750-425500 2544623 resale- beer n/a 189.65 05/25/2021 609-49750-425400 2544623 resale- liquor 192.00 05/25/2021 609-49750-425100 Check Total: 19,659.36 Vendor: 1106 CENTRAL MCGOWAN INC Check Sequence: 21 ACH Enabled: True 00452916 Bulk Carbon Dioxide (582 lbs) 157.49 05/25/2021 226-45124-421600 Check Total: 157.49 Vendor: 1129 DAHLHEIMER BEVERAGE LLC Check Sequence: 22 ACH Enabled: True 1389902 resale - beer credit -54.00 05/25/2021 609-49750-425200 1389978 resale - beer 26,455.45 05/25/2021 609-49750-425200 1389978 resale - beer n/a 274.00 05/25/2021 609-49750-425400 1391983 resale - beer 7,057.02 05/25/2021 609-49750-425200 1392085 resale - beer credit -216.23 05/25/2021 609-49750-425200 1393976 resale - beer 1,103.15 05/25/2021 609-49750-425200 1394136 resale - beer 28,773.45 05/25/2021 609-49750-425200 1394136 resale - beer n/a 57.80 05/25/2021 609-49750-425400 1394185 resale - beer 1,091.00 05/25/2021 609-49750-425200 1395568 resale - beer credit -58.58 05/25/2021 609-49750-425200 1395676 resale - beer 8,255.13 05/25/2021 609-49750-425200 1395676 resale - beer n/a 28.90 05/25/2021 609-49750-425400 1395748 resale - beer 230.00 05/25/2021 609-49750-425200 Check Total: 72,997.09 Vendor: 5105 DELL MARKETING LP Check Sequence: 23 ACH Enabled: False 10486093463 PowerEdge T440 Server 6,184.45 05/25/2021 702-00000-424100 AP -Computer Check Proof List by Vendor (05/19/2021 - 12:45 PM) Page 4 Invoice No Description Amount Payment Date Acct Number Reference Check Total: 6,184.45 Vendor: 5201 DICK FAMILY, INC. Check Sequence: 24 1158791 resale - beer 884.40 05/25/2021 609-49750-425200 1158791 resale - beer n/a 24.00 05/25/2021 609-49750-425400 Check Total: 908.40 Vendor: 5340 DISGRUNTLED BREWING DISGRUNTLED Check Sequence: 25 1568 resale- beer 193.60 05/25/2021 609-49750-425200 1605 resale- beer 192.00 05/25/2021 609-49750-425200 ACH Enabled: True ACH Enabled: False ACH Enabled: False ACH Enabled: True ACH Enabled: False ACH Enabled: True AP -Computer Check Proof List by Vendor (05/19/2021 - 12:45 PM) Page 5 Check Total: 385.60 Vendor: 3648 DJ'S COMPANIES INC Check Sequence: 26 5/17/2021 19D005 - Escrow Refund 2,300.00 05/25/2021 101-00000-220110 Check Total: 2,300.00 Vendor: 1793 E.A.T.I. EMERGENCY AUTOMOTIVE TECH Check Sequence: 27 OAK20184 Command Vehicle- installs to new truck- Fire 11,537.55 05/25/2021 703-00000-165010 OAK20184A Command Vehicle- installs- antenna plus cellula] 375.67 05/25/2021 703-00000-165010 Check Total: 11,913.22 Vendor: 2561 FERGUSON WATERWORKS #2516 Check Sequence: 28 471487-1 resale- 2 T/F cmpd meter p/c R900I v4 usg pit 2,039.39 05/25/2021 601-49440-422710 472702 resale- (4) LF1 T10 meter p/c R900I usg 1,504.36 05/25/2021 601-49440-422710 Check Total: 3,543.75 Vendor: 2273 FIBERNET MONTICELLO - ACH Check Sequence: 29 5/8/2021 May 2020 - Phone - City Hall 736.34 05/25/2021 702-00000-432100 5/8/2021 May 2020 - Phone - MCC 590.95 05/25/2021 702-00000-432100 5/8/2021 May 2020 - Phone - Ballfields 20.30 05/25/2021 702-00000-432100 5/8/2021 May 2020 - Phone - DMV 308.71 05/25/2021 702-00000-432100 5/8/2021 May 2020 - Phone - Hi Way Liquor 359.89 05/25/2021 702-00000-432100 5/8/2021 May 2020 - Phone - Fire Hall 453.44 05/25/2021 702-00000-432100 5/8/2021 May 2020 - Phone - Public Works 301.93 05/25/2021 702-00000-432100 5/8/2021 May 2020 - Phone - Parks 116.34 05/25/2021 702-00000-432100 5/8/2021 May 2020 - Phone - Prairie Center 13.40 05/25/2021 702-00000-432100 5/8/2021 May 2020 - Phone - Sheriff 71.28 05/25/2021 702-00000-432100 5/8/2021 May 2020 - Internet - City Hall 248.90 05/25/2021 702-00000-432300 ACH Enabled: True ACH Enabled: False ACH Enabled: False ACH Enabled: True ACH Enabled: False ACH Enabled: True AP -Computer Check Proof List by Vendor (05/19/2021 - 12:45 PM) Page 5 Invoice No Description Amount Payment Date Acct Number Reference 5/8/2021 May 2020 - Internet - MCC 10.00 05/25/2021 702-00000-432300 5/8/2021 May 2020 - Internet - Ballfields 10.00 05/25/2021 702-00000-432300 5/8/2021 May 2020 - Internet - DMV 43.95 05/25/2021 702-00000-432300 5/8/2021 May 2020 - Internet - Hi Way Liquor 43.95 05/25/2021 702-00000-432300 5/8/2021 May 2020 - Internet - Fire Hall 168.90 05/25/2021 702-00000-432300 5/8/2021 May 2020 - Internet - Animal Shelter 31.95 05/25/2021 702-00000-432300 5/8/2021 May 2020 - Internet - Public Works 43.95 05/25/2021 702-00000-432300 5/8/2021 May 2020 - Internet - Sheriff 43.95 05/25/2021 702-00000-432300 5/8/2021 May 2020 - Internet - MCC @ Prairie Center -19.54 05/25/2021 702-00000-432300 5/8/2021 May 2020 - Cable @ Fire Hall 110.85 05/25/2021 101-42200-431990 5/8/2021 May 2020 - Cable @ MCC 185.85 05/25/2021 226-45127-432500 5/8/2021 May 2020 - Data Hosting 500.00 05/25/2021 702-00000-431900 5/8/2021 May 2020 - Service Contract 250.00 05/25/2021 702-00000-431900 5/8/2021 May 2020 - Phone & Internet - Monti Arts 82.57 05/25/2021 101-45204-431990 Check Total: 4,727.86 Vendor: 5053 CAROLYN GRANGER Check Sequence: 30 ACH Enabled: True 5/18/2021 Reimbursement - Postage for DMV Mailings 13.80 05/25/2021 653-41990-432200 Check Total: 13.80 Vendor: 1223 HAWKINS INC Check Sequence: 31 ACH Enabled: True 4928236 Polymer - Aqua Hawk - WWTP 4,834.08 05/25/2021 602-49480-421990 4939236 Pool Chemicals 819.23 05/25/2021 226-45124-421600 Check Total: 5,653.31 Vendor: 4650 JASEN HOGLUND Check Sequence: 32 ACH Enabled: False 01517 (10) custom lettering - Parks signs 235.00 05/25/2021 101-45201-421990 Check Total: 235.00 Vendor: 1642 HUSKY SPRING Check Sequence: 33 ACH Enabled: False S2-1596967 #302- hvy. duty spring; leaf spring; (4) ubolt kit- 356.64 05/25/2021 601-49440-422990 S2-1596967 #302- hvy. duty spring; leaf spring; (4) ubolt kit- 356.64 05/25/2021 602-49490-422990 Check Total: 713.28 Vendor: 5491 IMAGETREND, INC. Check Sequence: 34 ACH Enabled: False 128435 mobile fire inspection license support- 2021 231.75 05/25/2021 702-00000-431900 Check Total: 231.75 AP -Computer Check Proof List by Vendor (05/19/2021 - 12:45 PM) Page 6 Invoice No Description Amount Payment Date Acct Number Reference Vendor: 3356 INDIAN ISLAND WINERY Check Sequence: 35 ACH Enabled: False 3718 resale- wine 249.60 05/25/2021 609-49750-425300 Check Total: 249.60 Vendor: 3369 JAKE'S EXCAVATING INC Check Sequence: 36 ACH Enabled: True 4588 4/17/21- Saville 450.00 05/25/2021 215-49010-431150 Check Total: 450.00 Vendor: 1245 JLA INDUSTRIAL EQUIPMENT Check Sequence: 37 ACH Enabled: False MO70279 dba- HotsyMN- truck/equip. wash bulk; l Ow40; 737.39 05/25/2021 101-43127-440100 Check Total: 737.39 Vendor: 1263 JOHNSON BROTHERS LIQUOR CO. Check Sequence: 38 ACH Enabled: False 1793528 resale- liquor 4,248.30 05/25/2021 609-49750-425100 1793528 freight 35.03 05/25/2021 609-49750-433300 1793529 resale- wine 1,797.32 05/25/2021 609-49750-425300 1793529 resale- wine n/a 72.00 05/25/2021 609-49750-425400 1793529 freight 49.92 05/25/2021 609-49750-433300 1794190 resale - liquor 3,074.98 05/25/2021 609-49750-425100 1794190 freight 32.25 05/25/2021 609-49750-433300 1794191 freight 11.55 05/25/2021 609-49750-433300 1794191 resale - wine 603.85 05/25/2021 609-49750-425300 1794192 resale - beer 63.00 05/25/2021 609-49750-425200 1796242 resale - liquor 6,989.10 05/25/2021 609-49750-425100 1796242 freight 102.81 05/25/2021 609-49750-433300 1797034 freight 14.65 05/25/2021 609-49750-433300 1797034 resale- liquor 3,385.17 05/25/2021 609-49750-425100 1798243 freight 58.11 05/25/2021 609-49750-433300 1798243 resale - mix 60.00 05/25/2021 609-49750-425400 1798243 resale - wine 2,049.50 05/25/2021 609-49750-425300 1799558 freight 41.47 05/25/2021 609-49750-433300 1799558 resale - liquor 3,472.78 05/25/2021 609-49750-425100 1799808 resale - wine 23.23 05/25/2021 609-49750-425300 1802050 resale - liquor 7,945.39 05/25/2021 609-49750-425100 1802050 freight 97.12 05/25/2021 609-49750-433300 Check Total: 34,227.53 Vendor: 1273 KIWI KAI IMPORTS, INC. Check Sequence: 39 ACH Enabled: False 127042 resale- wine 1,184.50 05/25/2021 609-49750-425300 127042 freight 15.00 05/25/2021 609-49750-433300 AP -Computer Check Proof List by Vendor (05/19/2021 - 12:45 PM) Page 7 Invoice No Description Amount Payment Date Acct Number Reference AP -Computer Check Proof List by Vendor (05/19/2021 - 12:45 PM) Page 8 Check Total: 1,199.50 Vendor: 3829 STEVE LANGANKI Check Sequence: 40 ACH Enabled: True 1373 porta toilet rental - 4/3-30/2021 1,689.89 05/25/2021 101-45201-431901 Check Total: 1,689.89 Vendor: 5728 JOAN LARSON Check Sequence: 41 ACH Enabled: False 5/12/2021 Refund - Community Garden Plot 30.00 05/25/2021 101-45201-349990 Check Total: 30.00 Vendor: 4455 HALLIE LEFFINGWELL Check Sequence: 42 ACH Enabled: True CMAB 5/12/21 CMAB Grant Project- final payment 3,500.00 05/25/2021 101-45204-431990 Check Total: 3,500.00 Vendor: 5642 LOONEY BIN BREWING, LLC Check Sequence: 43 ACH Enabled: False 2553 resale- beer 290.00 05/25/2021 609-49750-425200 Check Total: 290.00 Vendor: 4456 LUPULIN BREWING LLC Check Sequence: 44 ACH Enabled: True 36812 resale- beer 203.35 05/25/2021 609-49750-425200 8378 resale- beer credit -53.13 05/25/2021 609-49750-425200 Check Total: 150.22 Vendor: 3745 MANSFIELD OIL COMPANY Check Sequence: 45 ACH Enabled: True 22351986 (589) gal. unleaded @ $2.49 1,464.40 05/25/2021 101-43120-421200 22351987 (120) gal. diesel@ $2.67 320.61 05/25/2021 101-43120-421200 22366310 (494) gal. these 1@ $3.01 1,487.74 05/25/2021 101-43120-421200 Check Total: 3,272.75 Vendor: 1726 MARCO TECHNOLOGIES Check Sequence: 46 ACH Enabled: False INV8716378 5/3 Inbound Emails Not Working 37.50 05/25/2021 702-00000-431990 Check Total: 37.50 Vendor: 1341 MMKR Check Sequence: 47 ACH Enabled: True 50389 Progress Billing - Audit Services thru 4/30/21 13,500.00 05/25/2021 101-41540-430100 Check Total: 13,500.00 AP -Computer Check Proof List by Vendor (05/19/2021 - 12:45 PM) Page 8 Invoice No Description Amount Payment Date Acct Number Reference Vendor: 1370 MONTICELLO DEPUTY REG #002 Check Sequence: 48 ACH Enabled: False 5/18/2021 Refund DMV for Overpayment of Fees in Marcl 27,747.01 05/25/2021 653-41990-341060 Check Total: 27,747.01 Vendor: 2512 MONTICELLO PLBG HTG AC LLC Check Sequence: 49 ACH Enabled: False 22725 Labor - Install NewToilets (Library) 1,625.00 05/25/2021 101-45501-440100 22725 Permit Fee 100.55 05/25/2021 101-45501-440100 22725 Labor - Install Water SoBner (Library) 1,150.00 05/25/2021 101-45501-440100 22727 Labor - Install Water Heater (MCC) 9,750.00 05/25/2021 226-45126-440100 Check Total: 12,625.55 Vendor: 1377 MONTICELLO SENIOR CENTER Check Sequence: 50 ACH Enabled: True May 2021 Monthly Allocation - May 2021 5,416.67 05/25/2021 101-45175-444310 Check Total: 5,416.67 Vendor: 5586 MOOSE LAKE BREWING CO. Check Sequence: 51 ACH Enabled: True 53-0004 resale- beer 216.00 05/25/2021 609-49750-425200 Check Total: 216.00 Vendor: 5160 MOTOROLA SOLUTIONS, INC. Check Sequence: 52 ACH Enabled: False 8281171754 (2) model 2.5 portable; baud trunking; smarkzon 7,800.00 05/25/2021 101-42500-421990 8281171754 (2) model 2.5 portable; baud trunking; smarkzon 1,442.00 05/25/2021 101-42200-421990 Check Total: 9,242.00 Vendor: 1390 MTI DISTRIBUTING INC Check Sequence: 53 ACH Enabled: True 1300087-00 (2) guide -hose; (2) v -belt 297.93 05/25/2021 101-45201-422990 Check Total: 297.93 Vendor: 1913 NEW FRANCE WINE Check Sequence: 54 ACH Enabled: False 173087 resale- wine 857.50 05/25/2021 609-49750-425300 Check Total: 857.50 Vendor: 1401 NORTHWEST ASSOCIATED CONSULTANTS Check Sequence: 55 ACH Enabled: True 25277 April 2021 -Technical Assistance City Projects 3,546.45 05/25/2021 101-41910-431990 25278 202110 - G Cubed Townhome PUD Concept - A 1,317.20 05/25/2021 101-00000-220110 25278 202117 - NUSS PUD Amendment - April 2021 890.00 05/25/2021 101-00000-220110 25279 April 2021 - Technical Assistance - Meetings 150.00 05/25/2021 101-41910-431990 25280 202041 - Chelsea Common Small Area Study - 6,346.70 05/25/2021 101-41910-431990 AP -Computer Check Proof List by Vendor (05/19/2021 - 12:45 PM) Page 9 Invoice No Description Amount Payment Date Acct Number Reference AP -Computer Check Proof List by Vendor (05/19/2021 - 12:45 PM) Page 10 Check Total: 12,250.35 Vendor: 5426 NOVEL SOLAR TWO LLC Check Sequence: 56 ACH Enabled: True 2741 Solar Rebate Program - Xcel Energy 25,778.18 05/25/2021 101-41310-443992 Check Total: 25,778.18 Vendor: 1417 OSC OXYGEN SERVICE COMPANY Check Sequence: 57 ACH Enabled: True 8438088 repair torch w/ tip 158.50 05/25/2021 101-43127-440440 Check Total: 158.50 Vendor: 1427 PHILLIPS WINE & SPIRITS CO Check Sequence: 58 ACH Enabled: False 6198557 resale -liquor 822.50 05/25/2021 609-49750-425100 6198557 freight 10.43 05/25/2021 609-49750-433300 6199123 freight 33.53 05/25/2021 609-49750-433300 6199123 resale- liquor 2,998.10 05/25/2021 609-49750-425100 6199124 resale -liquor 152.00 05/25/2021 609-49750-425100 6199124 resale- wine 1,264.06 05/25/2021 609-49750-425300 6199124 freight 43.22 05/25/2021 609-49750-433300 6202231 freight 25.33 05/25/2021 609-49750-433300 6202231 resale- liquor 1,245.30 05/25/2021 609-49750-425100 6203266 freight 37.79 05/25/2021 609-49750-433300 6203266 resale- liquor 3,284.02 05/25/2021 609-49750-425100 6203267 resale -liquor 49.92 05/25/2021 609-49750-425100 6203267 freight 1.49 05/25/2021 609-49750-433300 6205187 freight 4.47 05/25/2021 609-49750-433300 6205187 resale- liquor 544.00 05/25/2021 609-49750-425100 6205188 resale- wine 980.95 05/25/2021 609-49750-425300 6205188 freight 21.61 05/25/2021 609-49750-433300 Check Total: 11,518.72 Vendor: 1430 PIONEER MANUFACTURING CO Check Sequence: 59 ACH Enabled: False 788597 acct. # CI7106 - brite striper 7000 spray tip 419 48.00 05/25/2021 101-45201-422990 Check Total: 48.00 Vendor: 5733 RJ RYAN CONSTRUCTION Check Sequence: 60 ACH Enabled: False 5/19/2021 202105 - Escrow Refund CUP & Variance 4,642.30 05/25/2021 101-00000-220110 Check Total: 4,642.30 AP -Computer Check Proof List by Vendor (05/19/2021 - 12:45 PM) Page 10 Invoice No Description Amount Payment Date Acct Number Reference Vendor: 1470 RUSSELL SECURITY RESOURCE INC Check Sequence: 61 ACH Enabled: True A39556 troubleshoot main entry- exterior vestibule- latck 80.00 05/25/2021 101-42200-440100 A39561 Install Lock on Academy Room Door; Grade 11 250.00 05/25/2021 101-41940-440100 Check Total: 330.00 Vendor: 5523 RUSTECH BREWING COMPANY, LLC Check Sequence: 62 ACH Enabled: True 1066 resale- beer 430.00 05/25/2021 609-49750-425200 Check Total: 430.00 Vendor: 4660 SAFE -FAST, INC Check Sequence: 63 ACH Enabled: True 245728 (7) Class 3 hooded sweatshirt; (12) class 2 vest 352.05 05/25/2021 101-45201-421990 Check Total: 352.05 Vendor: 4148 SHERWIN WILLIAMS CO. #3442 Check Sequence: 64 ACH Enabled: False 3301-4 (30) 5 gal. sstripe br white; (6) highway white 440.28 05/25/2021 101-45203-421990 7566-1 Blue Tape, 3 Gallons Paint for FiberNet Relocati 143.43 05/25/2021 656-49870-443990 Check Total: 583.71 Vendor: 5211 RANDI ANN SMELSER Check Sequence: 65 ACH Enabled: False 4/30/2021 Reimbursement - Supplies - Cleaning Supplies, ( 78.97 05/25/2021 101-42700-421990 May 2nd Semi Monthly Contract Payment 1,622.50 05/25/2021 101-42700-431200 Check Total: 1,701.47 Vendor: 5210 ADAM SMIGLEWSKI Check Sequence: 66 ACH Enabled: True 5/11/2021 Referee Mens Spring Hockey (5 Games) 350.00 05/25/2021 226-45127-431990 Check Total: 350.00 Vendor: 3309 SOUTHERN GLAZER'S WINE AND SPIRITS, Check Sequence: 67 ACH Enabled: False 2076911 freight 37.93 05/25/2021 609-49750-433300 2076911 resale- liquor 3,435.56 05/25/2021 609-49750-425100 2076912 resale - wine 1,491.11 05/25/2021 609-49750-425300 2076912 freight 33.60 05/25/2021 609-49750-433300 2079584 resale - liquor 2,074.73 05/25/2021 609-49750-425100 2079584 freight 22.75 05/25/2021 609-49750-433300 2079585 freight 32.20 05/25/2021 609-49750-433300 2079585 resale - wine 1,523.92 05/25/2021 609-49750-425300 Check Total: 8,651.80 AP -Computer Check Proof List by Vendor (05/19/2021 - 12:45 PM) Page 11 Invoice No Description Amount Payment Date Acct Number Reference Vendor: 4874 SPLASH SCHOOL LLC Check Sequence: 68 ACH Enabled: False 4659 Life Guard Training & Refresher Courses (10) 1,860.00 05/25/2021 226-45124-431990 Check Total: 1,860.00 Vendor: 4006 SUMMIT FIRE PROTECTION Check Sequence: 69 ACH Enabled: False 150001487 (2) inspect extinguishers; serv. call - Fire 225.00 05/25/2021 101-43120-440440 Check Total: 225.00 Vendor: 1518 TDS TELECOM Check Sequence: 70 ACH Enabled: True 763-271-3257 TDS 102.41 05/25/2021 702-00000-432100 763-295-0078 TDS - Fire 160.91 05/25/2021 702-00000-432100 763-295-2005 TDS 20.39 05/25/2021 702-00000-432100 763-295-3714 TDS 344.75 05/25/2021 702-00000-432100 Check Total: 628.46 Vendor: 5729 TENCO HYDRO INC Check Sequence: 71 ACH Enabled: False 14940 21C003-WWTPUpgrades: Scraper Arm Assem 15,032.50 05/25/2021 602-00000-165010 Check Total: 15,032.50 Vendor: 5422 TERMINLY INTERNATIONAL COMPANY LI Check Sequence: 72 ACH Enabled: False 159222 Pest Control - Mice - Prairie Center 55.00 05/25/2021 101-41941-431990 159243 Pest Control - Ants - MCC 85.00 05/25/2021 226-45126-431990 159244 Pest Control - Ants - DMV 40.00 05/25/2021 653-41990-431990 159245 Pest Control - Ants - Library 55.00 05/25/2021 101-45501-431990 159246 Pest Control - Hi -Way Liquor 64.06 05/25/2021 609-49754-431990 Check Total: 299.06 Vendor: 4859 TRIO SUPPLY COMPANY Check Sequence: 73 ACH Enabled: False 676758 hot bev. cups; paper plates; (3) cs. roll towels; 212.23 05/25/2021 101-43127-421990 Check Total: 212.23 Vendor: 3783 ULINE Check Sequence: 74 ACH Enabled: False 133525499 24 pk. paper towels; cable ties; broom 154.22 05/25/2021 609-49754-421990 Check Total: 154.22 Vendor: 1544 US POSTAL SERVICE Check Sequence: 75 ACH Enabled: False 5/10/2021 PI42 - Increase Balance for UB Billings (1/2) 1,250.00 05/25/2021 601-00000-155010 5/10/2021 PI42 - Increase Balance for UB Billings (1/2) 1,250.00 05/25/2021 602-00000-155010 AP -Computer Check Proof List by Vendor (05/19/2021 - 12:45 PM) Page 12 Invoice No Description Amount Payment Date Acct Number Reference 5/7/2021 PI42 - UB May Billing (3616 pcs) (1/2) 831.68 05/25/2021 601-49440-432200 5/7/2021 PI42 - UB May Billing (3616 pcs) (1/2) 831.68 05/25/2021 602-49490-432200 Check Total: 4,163.36 Vendor: 4774 SALLY VANBROCKLIN Check Sequence: 76 ACH Enabled: False 5/17/2021 Performance @ Farmers Market 6/3/21 200.00 05/25/2021 226-45127-431990 Check Total: 200.00 Vendor: 1550 VEOLIA WATER N AM OPERATING SERV L. Check Sequence: 77 ACH Enabled: True 90282518 June 2021 - WWTP Operations & Maintenance 62,559.50 05/25/2021 602-49480-430800 Check Total: 62,559.50 Vendor: 1552 VIKING COCA COLA BOTTLING CO Check Sequence: 78 ACH Enabled: True 2692883 resale- soda pop 321.20 05/25/2021 609-49750-425400 2692994 resale- soda pop 453.20 05/25/2021 609-49750-425400 Check Total: 774.40 Vendor: 1684 VINOCOPIA Check Sequence: 79 ACH Enabled: True 278511 resale- liquor 72.00 05/25/2021 609-49750-425100 278511 freight 2.50 05/25/2021 609-49750-433300 278512 freight 2.50 05/25/2021 609-49750-433300 278512 resale- liquor 90.00 05/25/2021 609-49750-425100 278985 resale- liquor 72.00 05/25/2021 609-49750-425100 278985 resale- wine 93.00 05/25/2021 609-49750-425300 Check Total: 332.00 Vendor: 1561 WATER LABORATORIES INC Check Sequence: 80 ACH Enabled: False 8497 April 2021 Water Testing 289.00 05/25/2021 601-49440-431990 Check Total: 289.00 Vendor: 1567 WES OLSON ELECTRIC LLC Check Sequence: 81 ACH Enabled: False 10056 labor - add extra receptacle new Parks bldg. 585.00 05/25/2021 101-45201-440100 10056 parts- add extra receptacle new Parks bldg. 301.79 05/25/2021 101-45201-440100 Check Total: 886.79 Vendor: 4798 WIN DEVELOPMENT LLC Check Sequence: 82 ACH Enabled: False 5/6/2021 ZUNION - Escrow Refund for Landscaping 300.00 05/25/2021 101-00000-220110 AP -Computer Check Proof List by Vendor (05/19/2021 - 12:45 PM) Page 13 Invoice No Description Amount Payment Date Acct Number Reference The preceding list of bills payable was reviewed and approved for payment. Date: 5/24/2021 Approved by Mayor Lloyd Hilgart AP -Computer Check Proof List by Vendor (05/19/2021 - 12:45 PM) Page 14 Check Total: 300.00 Vendor: 1573 WINE MERCHANTS INC Check Sequence: 83 ACH Enabled: False 7328211 resale - wine 1,206.00 05/25/2021 609-49750-425300 7328211 freight 8.94 05/25/2021 609-49750-433300 7329339 resale- wine 620.00 05/25/2021 609-49750-425300 7329339 freight 10.43 05/25/2021 609-49750-433300 Check Total: 1,845.37 Vendor: 1577 WRIGHT CO AUDITOR-TREAS - ACH Check Sequence: 84 ACH Enabled: True 5/12/2021 Court Fines & Fees - April 2021 3,644.64 05/25/2021 101-42100-430410 Check Total: 3,644.64 Vendor: 1581 WRIGHT CO RECORDER Check Sequence: 85 ACH Enabled: False 202100000021 202103 - CUP A# 1466982 46.00 05/25/2021 101-41910-430400 Check Total: 46.00 Vendor: 5520 ZIP'S DIESEL SERVICE Check Sequence: 86 ACH Enabled: False z139875 starter for black top paver; core deposit refund tc 268.66 05/25/2021 101-43120-422100 Check Total: 268.66 Total for Check Run: 486,169.99 Total of Number of Checks: 86 The preceding list of bills payable was reviewed and approved for payment. Date: 5/24/2021 Approved by Mayor Lloyd Hilgart AP -Computer Check Proof List by Vendor (05/19/2021 - 12:45 PM) Page 14 Accounts Payable Computer Check Proof List by Vendor User: Debbie.Davidson Printed: 05/19/2021 - 12:19PM Batch: 00201.05.2021 - 201.05.2021 USB Invoice No Description Moiiii6effo Y Amount Payment Date Acct Number Reference Vendor: 4263 CAYAN Check Sequence: 1 ACH Enabled: True 1818126 April 2021 (15,155) transactions 1,627.34 05/15/2021 609-49754-443980 1818126 April 2021 (3) machine rental 128.62 05/15/2021 609-49754-424100 Check Total: 1,755.96 Vendor: 5188 HEALTHY CONTRIBUTIONS Check Sequence: 2 ACH Enabled: True 5/18/2021 AARP Supplement/At Your Best 8.80 05/15/2021 226-45122-430900 Check Total: 8.80 Vendor: 1592 IRS Check Sequence: 3 ACH Enabled: True 5/10/2021 Q2 2020 Employer FICA/COVID ESL Due 155.38 05/15/2021 101-41520-443990 5/10/2021 Q2 2020 Employer FICA/COVID ESL Due - Int 3.90 05/15/2021 101-41520-443990 Check Total: 159.28 Vendor: 5415 MII LIFE INSURANCE INC Check Sequence: 4 ACH Enabled: True 39814169 FSA -Medical 40.00 05/15/2021 101-00000-217300 39814169 FSA- Dependent Care 497.86 05/15/2021 101-00000-217200 39817636 FSA -Medical 667.13 05/15/2021 101-00000-217300 Check Total: 1,204.99 Vendor: 5147 MN PEIP Check Sequence: 5 ACH Enabled: True 1087926 Health Insurance - June 2021 40,881.15 05/15/2021 101-00000-217061 Check Total: 40,881.15 Vendor: 4732 MONEY MOVERS, INC. Check Sequence: 6 ACH Enabled: True 138842 Fitness Rewards - April 2021 13.00 05/15/2021 226-45122-430900 Check Total: 13.00 AP -Computer Check Proof List by Vendor (05/19/2021 - 12:19 PM) Page 1 Invoice No Description Amount Payment Date Acct Number Reference Vendor: 1426 CITY OF MONTICELLO Check Sequence: 7 UB Mar 2021 8631 - Animal Shelter 47.93 05/15/2021 101-42700-438200 UB Mar 2021 5026 - Ellison Park 16.97 05/15/2021 101-45201-438200 UB Mar 2021 8905 - PW Office 16.97 05/15/2021 101-43127-438200 UB Mar 2021 8119 - 303 6th St - Parks new 53.93 05/15/2021 101-45201-438200 UB Mar 2021 7224 - WWTP 1,305.83 05/15/2021 602-49480-438200 UB Mar 2021 7256-004 - 130 Brdwy- Stormwtr 19.25 05/15/2021 213-46301-438200 UB Mar 2021 8086 - 4th St. Warming House 16.97 05/15/2021 101-45201-438200 UB Mar 2021 8177 - Library 101.93 05/15/2021 101-45501-438200 UB Mar 2021 8117 - MCC 739.09 05/15/2021 226-45126-438200 UB Mar 2021 8622 - Pioneer Park bathroom 16.97 05/15/2021 101-45201-438200 UB Mar 2021 10128 - Prairie Cntr. Bldg. 38.47 05/15/2021 101-41941-438200 UB Mar 2021 15291 - Commuter Lot- Stormwtr 40.25 05/15/2021 101-43120-438200 UB Mar 2021 7885 - DMV/Food Shelf 47.93 05/15/2021 653-41990-438200 UB Mar 2021 15292 - Dwntwn Parking-Strmwtr 19.25 05/15/2021 101-43120-438200 UB Mar 2021 7256-007 - 103 Pine St- EDA 37.97 05/15/2021 213-46301-438200 UB Mar 2021 8903 - PW Shop/Clerical 527.50 05/15/2021 101-43127-438200 UB Mar 2021 8120 - Bldg. Inspec. Garage 41.94 05/15/2021 101-41940-438200 UB Mar 2021 7256-008 - 112 River St. W EDA 37.97 05/15/2021 213-46301-438200 UB Mar 2021 5250 - Bridge Park W 26.93 05/15/2021 101-45201-438200 UB Mar 2021 8904 - PW Vehicle Storage 13.25 05/15/2021 101-43127-438200 UB Mar 2021 5637 - Meadow Oak Dog Park 6.87 05/15/2021 101-45201-438200 UB Mar 2021 7256-003 - MontiArts 37.97 05/15/2021 101-45204-438200 UB Mar 2021 8114 - Hi -Way Liquors 73.08 05/15/2021 609-49754-438200 UB Mar 2021 15640 - 103 Chelsea Rd- Fire 73.71 05/15/2021 101-42200-438200 UB Mar 2021 7256-0010 - 101 Broadway W 37.97 05/15/2021 101-45204-438200 UB Mar 2021 7256-0011 107 Broadway W -Monti Arts 37.97 05/15/2021 101-45204-438200 Check Total: 3,434.87 Vendor: 2811 US BANK CORPORATE PMT SYSTEM Check Sequence: 8 05/06/2021 Ausco - (25) Richardson Baseball Hats 300.00 05/15/2021 101-45201-421990 05/06/2021 Grainger - ADA compliant steel door; steel partii 222.00 05/15/2021 101-45201-422990 05/06/2021 Delegard Tools - tire/wheel dolly 70.33 05/15/2021 101-43127-421990 05/06/2021 Kwik Trip - (3.735) gal. prem. @ $3.459 13.26 05/15/2021 101-45201-421200 05/06/2021 Runnings - wash machine hose; valve 25.98 05/15/2021 101-45201-421990 05/06/2021 Monti Napa- dynatron (to be returned next batch 193.22 05/15/2021 101-45201-422990 05/06/2021 Royal Tire - (4) tire repair 115.30 05/15/2021 101-42200-440500 05/06/2021 Pioneer Athletics - #241 hydraulic pump 1,695.50 05/15/2021 101-45201-422990 05/06/2021 Runnings - grinder lag; (4) grinding wheel 235.55 05/15/2021 101-43127-421990 05/06/2021 Grainger - front floor vinyl liner - 1/2 Water 64.66 05/15/2021 601-49440-421990 05/06/2021 Grainger - front floor vinyl liner - 1/2 Sewer 64.66 05/15/2021 602-49490-421990 05/06/2021 Amazon - COVID - Plexiglass Guards (4) 697.99 05/15/2021 653-41990-421990 ACH Enabled: True ACH Enabled: True AP -Computer Check Proof List by Vendor (05/19/2021 - 12:19 PM) Page 2 Invoice No Description Amount Payment Date Acct Number Reference 05/06/2021 Amazon - Steno Pads, Plastic Dividers 19.49 05/15/2021 101-41310-421990 05/06/2021 Amazon - Laminating Sheets 67.98 05/15/2021 226-45122-421990 05/06/2021 Amazon - Ergonomic Office Chair 171.50 05/15/2021 101-41310-443990 05/06/2021 Amazon - Labels 19.98 05/15/2021 226-45122-421990 05/06/2021 Amazon - Paper Masks (500) COVID 49.95 05/15/2021 101-41310-421990 05/06/2021 Amazon - Tea & Coffee 48.43 05/15/2021 101-41310-421990 05/06/2021 AST Sports - Polar Plunge T Shirts (10) 313.00 05/15/2021 101-41800-443990 05/06/2021 Dacotah Paper - Cleaning Supplies (PC) 104.37 05/15/2021 101-41941-421990 05/06/2021 Dacotah Paper - Cleaning Supplies (MCC) 824.96 05/15/2021 226-45126-421990 05/06/2021 Dacotah Paper - Cleaning Supplies (Library) 173.02 05/15/2021 101-45501-421990 05/06/2021 Dacotah Paper - Cleaning Supplies (MCC) 1,032.76 05/15/2021 226-45126-421990 05/06/2021 Dacotah Paper - Dolly Conversion, Gray Contaii 85.69 05/15/2021 101-45201-421990 05/06/2021 MN Dept Labor - Qtr 1 Building Permit Surchar; 3,510.40 05/15/2021 101-00000-208110 05/06/2021 MN Dept Labor - Qtr 1 Building Permit Surchar; -140.42 05/15/2021 101-42400-343000 05/06/2021 Domino's Pizza - Food for Council Meeting 68.15 05/15/2021 101-41110-443990 05/06/2021 General Credit Forms - CC Machine Paper 38.58 05/15/2021 653-41990-421990 05/06/2021 Holiday - Unleaded Fuel 10.487 gals @ $2.759 28.93 05/15/2021 653-41990-421200 05/06/2021 Holiday - Unleaded Fuel 9.046 gals @ $2.759 24.96 05/15/2021 653-41990-421200 05/06/2021 Holiday - Unleaded Fuel 10.076 gals @ $2.759 27.80 05/15/2021 653-41990-421200 05/06/2021 Holiday - Unleaded Fuel 9.491 gals @ $2.759 26.19 05/15/2021 653-41990-421200 05/06/2021 ICMA - Guilde to Local Gov't Branding (RL) 149.00 05/15/2021 101-41310-433100 05/06/2021 Les Mills - Virtual Fitness Classes - April 2021 349.00 05/15/2021 226-45127-443300 05/06/2021 Martie's Farm - Softner Salt (63 Bags) 378.00 05/15/2021 226-45126-422990 05/06/2021 MinnCor - Title Paper (2 Pkgs) 70.00 05/15/2021 653-41990-421990 05/06/2021 MN Rec & Parks Assoc - Race & Equity Workst 30.00 05/15/2021 226-45122-433100 05/06/2021 MN Rec & Parks Assoc - Race & Equity Workst 30.00 05/15/2021 226-45122-433100 05/06/2021 Monticello Chamber - March Lunch (JT) 15.00 05/15/2021 213-46301-443990 05/06/2021 MCC - Bottled Water for Project Orion Meeting 9.00 05/15/2021 101-43110-443990 05/06/2021 Monti Printing - Signature Stamp Planning Com 30.65 05/15/2021 101-41910-421990 05/06/2021 Trusted Employees - March Background Checks 111.00 05/15/2021 101-45201-431990 05/06/2021 Trusted Employees - March Background Check 1 23.00 05/15/2021 653-41990-431990 05/06/2021 Randys Sanitation - Shredding Service (CH) 32.20 05/15/2021 101-41310-431990 05/06/2021 Randys Sanitation - Shredding Service (DMV) 32.20 05/15/2021 653-41990-431990 05/06/2021 Runnings - Filter 16 x 20 (3) 13.47 05/15/2021 653-41990-421990 05/06/2021 Runnings - Misc Hardware for Table Repair 3.45 05/15/2021 226-45126-422990 05/06/2021 Runnings - Misc Hardware for Bench in Romp t 9.39 05/15/2021 226-45126-422990 05/06/2021 Home Depot - Lock for Cabinet in Childcare 5.74 05/15/2021 226-45126-422990 05/06/2021 USPS - Postage for DMV Mailings 40.55 05/15/2021 653-41990-432200 05/06/2021 USPS - Postage for DMV Mailings 40.75 05/15/2021 653-41990-432200 05/06/2021 USPS - Postage for DMV Mailings 22.35 05/15/2021 653-41990-432200 05/06/2021 USPS - Postage for DMV Mailings 59.10 05/15/2021 653-41990-432200 05/06/2021 USPS - Postage for DMV Mailings 36.60 05/15/2021 653-41990-432200 05/06/2021 USPS - Postage for DMV Mailings 22.75 05/15/2021 653-41990-432200 AP -Computer Check Proof List by Vendor (05/19/2021 - 12:19 PM) Page 3 Invoice No Description Amount Payment Date Acct Number Reference 05/06/2021 USPS - Postage for DMV Mailings 14.40 05/15/2021 653-41990-432200 05/06/2021 USPS - Postage for DMV Mailings 66.85 05/15/2021 653-41990-432200 05/06/2021 USPS - Postage for DMV Mailings 23.05 05/15/2021 653-41990-432200 05/06/2021 USPS - Postage for DMV Mailings 24.50 05/15/2021 653-41990-432200 05/06/2021 USPS - Postage for DMV Mailings 101.00 05/15/2021 653-41990-432200 05/06/2021 USPS - Postage for DMV Mailings 34.80 05/15/2021 653-41990-432200 05/06/2021 USPS - Certified Letter Comm Dev 7.65 05/15/2021 101-41910-432200 05/06/2021 Verizon - Feb 21 - Mar 20 75.02 05/15/2021 101-43115-432100 05/06/2021 Verizon - Feb 21 - Mar 20 35.01 05/15/2021 101-43120-432100 05/06/2021 Verizon - Feb 21 - Mar 20 35.01 05/15/2021 101-45201-432100 05/06/2021 Verizon - Feb 21 - Mar 20 77.52 05/15/2021 601-49440-432100 05/06/2021 Verizon - Feb 21 - Mar 20 77.52 05/15/2021 602-49490-432100 05/06/2021 Verizon - Feb 21 - Mar 20 180.05 05/15/2021 101-42200-432100 05/06/2021 Walmart Checks - Checks (2 pkgs) 29.75 05/15/2021 653-41990-421990 05/06/2021 Walmart - Various Snacks for Council Meetings 25.40 05/15/2021 101-41110-443990 05/06/2021 Home Depot - silcone max clear; surface runt. bl 20.87 05/15/2021 101-45201-421990 05/06/2021 Monti Napa- E-12 toggle switch 13.16 05/15/2021 101-42200-422110 05/06/2021 Monti Napa- (2) wheel hub dust caps 9.00 05/15/2021 101-43120-422110 05/06/2021 Auto Value - oil filters 4.06 05/15/2021 101-43127-422120 05/06/2021 Auto Value - oil filter for roller 4.24 05/15/2021 101-43120-422100 05/06/2021 Home Depot -conduit hb 4.75 05/15/2021 101-43120-422600 05/06/2021 Auto Value - fuel filter 5.03 05/15/2021 101-43127-422120 05/06/2021 Auto Value - (2) fuel filter 5.67 05/15/2021 101-43120-422100 05/06/2021 Auto Value - #113 - domestic fuel 6.38 05/15/2021 101-43120-422100 05/06/2021 Runnings - 128 oz. vinegar; 4 lb. baking soda 6.98 05/15/2021 101-43127-421600 05/06/2021 USPS - certified letter - Fire 7.00 05/15/2021 101-42200-432200 05/06/2021 Auto Value - back splash retainers - 1/2 water 4.25 05/15/2021 601-49440-422990 05/06/2021 Auto Value - back splash retainers - 1/2 Sewer 4.24 05/15/2021 602-49490-422990 05/06/2021 Amazon - 3 pk disinfecting wipes 8.99 05/15/2021 101-43110-421990 05/06/2021 Monti Napa-consp. tap 14.87 05/15/2021 101-45201-422990 05/06/2021 USPS - postage to mail samples to MDH 9.05 05/15/2021 601-49440-432200 05/06/2021 USPS - postage 9.05 05/15/2021 602-49490-432200 05/06/2021 O'Reilly - 10 ml thread lock 11.69 05/15/2021 101-43120-421990 05/06/2021 Home Depot -screw eyes; (2) bungee cords 12.64 05/15/2021 101-42200-422110 05/06/2021 Auto Value -(3) oil filters 12.90 05/15/2021 101-43127-422120 05/06/2021 Monti Napa- Aero adhesive web 13.49 05/15/2021 101-43120-421990 05/06/2021 Auto Value - fuel filter 14.48 05/15/2021 101-43127-422120 05/06/2021 Runnings -#116 - 10' discharge hose 14.90 05/15/2021 101-43120-422100 05/06/2021 SpyPoint - May 2021 trail camera service 15.00 05/15/2021 101-45201-443300 05/06/2021 Cub - 8 pk.batteries 15.78 05/15/2021 609-49754-421990 05/06/2021 Auto Value - (4) oil filters 16.59 05/15/2021 101-43127-422120 05/06/2021 Runnings - Raid; Terro ant baits; ant killer get 16.76 05/15/2021 101-45201-421990 05/06/2021 Auto Value - #179 - universal joints 16.99 05/15/2021 101-43120-422100 AP -Computer Check Proof List by Vendor (05/19/2021 - 12:19 PM) Page 4 Invoice No Description Amount Payment Date Acct Number Reference 05/06/2021 Auto Value - #800 - air filter; oil filter 19.51 05/15/2021 653-41990-421990 05/06/2021 Auto Value - core return -18.00 05/15/2021 101-43127-422120 05/06/2021 Monti Napa- (2) blister P - 1/2 Water 11.12 05/15/2021 601-49440-422990 05/06/2021 Monti Napa- (2) blister P - 1/2 Sewer 11.11 05/15/2021 602-49490-422990 05/06/2021 Auto Value - #204 - (2) pvc grommet; (2) pvc ell 22.46 05/15/2021 101-45201-422990 05/06/2021 Auto Value -(12) brake parts cleaner 22.68 05/15/2021 101-43127-421990 05/06/2021 Grainger - (4) cabinet catch 22.88 05/15/2021 101-45201-421990 05/06/2021 Runnings - (2) fittings 22.98 05/15/2021 101-43120-422100 05/06/2021 Runnings - ball mount rgt ang. drop long shank 22.99 05/15/2021 101-42200-422110 05/06/2021 Runnings -air filter 23.99 05/15/2021 101-45201-421990 05/06/2021 Auto Value - #204 - (2) transmission filter kit 24.59 05/15/2021 101-45201-422990 05/06/2021 Amazon - printer paper 28.78 05/15/2021 101-43110-421990 05/06/2021 Amazon - US Flag 4x6 28.98 05/15/2021 101-42200-421990 05/06/2021 DSG - (2) hose adapter; (3) bronze adapter 29.03 05/15/2021 101-45201-421990 05/06/2021 Mills Fleet Farm - U-13 -(12.014) gal. unleaded 33.15 05/15/2021 101-42200-421200 05/06/2021 Grainger - resin comp. splice kit 33.36 05/15/2021 602-49490-422990 05/06/2021 Kwik Trip - (10) gal. unleaded @ $3.459 34.59 05/15/2021 101-45201-421200 05/06/2021 Mills Fleet Farm - U-13 -(13.775) gal. unleaded 38.01 05/15/2021 101-42200-421200 05/06/2021 Auto Value -(4) o asst. filters 38.27 05/15/2021 101-43127-422120 05/06/2021 Amazon - copy paper 41.15 05/15/2021 101-42200-421990 05/06/2021 Auto Value -hydr. filter; HD fuel filter 41.52 05/15/2021 101-43127-422120 05/06/2021 Grainger - lOpk steel expansion wedge anchor; ( 76.40 05/15/2021 101-43120-421990 05/06/2021 Auto Value - #204 - transmission domesti.; (12)1 47.48 05/15/2021 101-45201-422990 05/06/2021 Cub - resale- lemons/limes 48.36 05/15/2021 609-49750-425500 05/06/2021 Mills Fleet Farm -(2) diesel additive for generatc 24.99 05/15/2021 601-49440-421990 05/06/2021 Mills Fleet Farm -(2) diesel additive for generatc 24.99 05/15/2021 602-49490-421990 05/06/2021 Runnings - gloves; caulk; (4) flex tubing; clamp 50.10 05/15/2021 101-43120-422100 05/06/2021 Runnings - diamond blade; sirc saw blade; bolt s 57.44 05/15/2021 101-45201-421990 05/06/2021 Auto Value - perfectstop brake; (2) drum brake v 51.97 05/15/2021 101-45201-422990 05/06/2021 Cub - resale- lemons/limes 52.03 05/15/2021 609-49750-425500 05/06/2021 FSSolutions - DOT drug screen - B.A. 56.38 05/15/2021 601-49440-431990 05/06/2021 Runnings - return grinder lag 7' for rattail 6" -40.00 05/15/2021 101-43127-421990 05/06/2021 Auto Value - #302 - fuel domestic #33243 8.53 05/15/2021 601-49440-422990 05/06/2021 Runnings -screws for crosswalk signs 18.99 05/15/2021 101-43120-422600 05/06/2021 Runnings - 2 gal. sprayer 19.99 05/15/2021 101-43120-422100 05/06/2021 Amazon - 5 ct. 51 oz. coffee 59.80 05/15/2021 101-43110-421990 05/06/2021 Martie's Farm - (6) milorganite fertilizer 59.94 05/15/2021 101-45201-422500 05/06/2021 Auto Value - case tractor - oil filter; air filter 60.88 05/15/2021 101-43120-422100 05/06/2021 Amazon - desk chair w/ armrests 63.53 05/15/2021 101-43110-421990 05/06/2021 Amazon - 3 pk. notebooks; (2) printer paper; 121 64.07 05/15/2021 101-42200-421990 05/06/2021 Sherwin Williams - (6) yellow 70.14 05/15/2021 101-45203-421990 05/06/2021 Amazon - 3 pk. speed bump cable protectors 70.29 05/15/2021 101-45201-421990 05/06/2021 Cornerstone Ford - #302 - pipe - fuel filter- 1/2 \ 36.29 05/15/2021 601-49440-422990 AP -Computer Check Proof List by Vendor (05/19/2021 - 12:19 PM) Page 5 Invoice No Description Amount Payment Date Acct Number Reference 05/06/2021 Cornerstone Ford - #302 - pipe - fuel filter- 1/2 5 36.29 05/15/2021 602-49490-422990 05/06/2021 Runnings - rain jacket; rubber boots; pvc knee be 72.86 05/15/2021 101-45201-421990 05/06/2021 AT & T - FirstNet 3/21 mobile unl. aircard 76.46 05/15/2021 101-42200-432100 05/06/2021 Amazon -(4) 5 pk. reusable face protection; (2) 76.94 05/15/2021 101-45201-421990 05/06/2021 Auto Value - automix panel bonding; trans. drain 76.98 05/15/2021 101-45201-421990 05/06/2021 DISH - 5/21 service 77.01 05/15/2021 609-49754-432500 05/06/2021 Runnings - 33 lb. mig wire 78.99 05/15/2021 101-43127-421990 05/06/2021 Runnings - (2) synthetic Hidex gloves; (4) bulk 1 79.64 05/15/2021 101-43127-421990 05/06/2021 Runnings -class 3 jacket; class E overalls 79.98 05/15/2021 101-43120-421990 05/06/2021 Mills Fleet Farm - 2021 boots- T.B. 79.99 05/15/2021 101-43120-421990 05/06/2021 Runnings - (3) pruner 80.97 05/15/2021 101-45201-421990 05/06/2021 Auto Value - #302 - (2) gas - magnum truck sho. 41.99 05/15/2021 601-49440-422990 05/06/2021 Auto Value - #302 - (2) gas - magnum truck sho. 41.99 05/15/2021 602-49490-422990 05/06/2021 Auto Value - #204 - transmission line 85.99 05/15/2021 101-45201-422990 05/06/2021 Midway Iron - #101 - 12' flat for sander 87.48 05/15/2021 101-43125-422100 05/06/2021 E.A.T.I. - strobe light 87.85 05/15/2021 101-43120-422100 05/06/2021 Ausco - (48) screen printed pieces - Streets 64.00 05/15/2021 101-43120-421990 05/06/2021 Ausco - (48) screen printed pieces - Water 16.00 05/15/2021 601-49440-421990 05/06/2021 Ausco - (48) screen printed pieces - Sewer 16.00 05/15/2021 602-49490-421990 05/06/2021 Amazon - Epson Workforce printer/scanner 129.99 05/15/2021 101-45201-421990 05/06/2021 Red's Service - #144 battery for air compressor 130.00 05/15/2021 101-43120-422100 05/06/2021 OSC - (2) bandsaw blades 135.96 05/15/2021 101-43127-421990 05/06/2021 Auto Value - #204 - battery 142.99 05/15/2021 101-45201-422990 05/06/2021 General Rental - acetylene MS tank; hazzardous 145.40 05/15/2021 101-43127-421990 05/06/2021 NBP - (2) 50pk. roll towel; 8 pk. battery; cal. pal 146.13 05/15/2021 609-49754-421990 05/06/2021 Nokomis Shoes - Boots T.G. 150.00 05/15/2021 101-45201-421990 05/06/2021 Home Depot - key safe returned; portable key sa 1.00 05/15/2021 101-45201-421990 05/06/2021 Home Depot - microwave; key safe returned 100.95 05/15/2021 101-45201-421990 05/06/2021 Mills Fleet Farm - (3) neverkink hose; (2) liquid 121.95 05/15/2021 601-49440-421990 05/06/2021 OSC - hose repair kit; oxy cylinder; hazmat fee 151.21 05/15/2021 101-43127-421990 05/06/2021 Certifit Auto Parts - # 113 - bumper-pnt w/o hole 153.39 05/15/2021 101-43120-422110 05/06/2021 Home Depot - (28) 50 lb. quickrete concrete 158.76 05/15/2021 101-43120-422600 05/06/2021 Auto Value - shock absorber; quick release ra.; (' 162.59 05/15/2021 101-45201-422990 05/06/2021 Auto Value -#114 - (2) high carbon brake ro; per 174.89 05/15/2021 101-43120-422110 05/06/2021 Certifit Auto Parts - bumper & trim for truck - 1/ 93.63 05/15/2021 601-49440-422990 05/06/2021 Certifit Auto Parts - bumper & trim for truck - 1/ 93.63 05/15/2021 602-49490-422990 05/06/2021 Home Depot - 5 shelf rivet; (2) tape meas.; nuts; 192.96 05/15/2021 101-45201-421990 05/06/2021 Auto Value - battery; (3) 5qt. synth. oil; pliers; of 205.24 05/15/2021 101-45201-422990 05/06/2021 Cintas - mat service - #4080751634; 408140851: 239.91 05/15/2021 609-49754-431990 05/06/2021 Allina Health - First Responders Training - K.K. 250.00 05/15/2021 101-42200-433100 05/06/2021 Moon Motors - Ranger- battery; solenoid -starter 253.98 05/15/2021 101-42200-422100 05/06/2021 CWP - #179 - assorted hoses 315.87 05/15/2021 101-43125-422100 05/06/2021 Amazon - (3) TireJect sealant 325.65 05/15/2021 101-45201-421990 AP -Computer Check Proof List by Vendor (05/19/2021 - 12:19 PM) Page 6 Invoice No Description Amount Payment Date Acct Number Reference 05/06/2021 AMEM - (3) 2021 membership- R.L.; D.K.; R.H 400.00 05/15/2021 101-42500-443990 05/06/2021 W Reeves - 6 pk.rechargeable flares 420.17 05/15/2021 101-45201-421990 05/06/2021 Sherwin Williams - (3 0) 5 gal. br. white; (6) 20 c 421.96 05/15/2021 101-45203-421990 05/06/2021 OSC - welder - rccl4; cable cover; collet; etc 450.77 05/15/2021 101-43127-421990 05/06/2021 Arctic Glacier - resale - #3456110504; 34561112 467.80 05/15/2021 609-49750-425500 05/06/2021 E.A.T.I. -(2) LED amber light 475.87 05/15/2021 101-45201-421990 05/06/2021 Runnings -band saw20v bare; radio bluetooth 60 491.95 05/15/2021 101-43127-421990 05/06/2021 Active 911 - (49) subscription renewal 637.00 05/15/2021 101-42200-443300 05/06/2021 Arctic Glacier - resale - 3456107604; 34561084( 704.37 05/15/2021 609-49750-425500 05/06/2021 Ausco - (37) short sleeve w/ logo; (32) long Slee, 788.50 05/15/2021 101-45201-421990 05/06/2021 Environmental Equip- #150 -GB torque motor- g 840.99 05/15/2021 101-43120-422110 05/06/2021 Ameripride - Mar. 2021 uniforms - Parks 143.29 05/15/2021 101-45201-441700 05/06/2021 Ameripride - Mar. 2021 uniforms - Sewer 96.83 05/15/2021 602-49490-441700 05/06/2021 Ameripride - Mar. 2021 uniforms - Water 96.83 05/15/2021 601-49440-441700 05/06/2021 Ameripride - Mar. 2021 uniforms - Streets 206.49 05/15/2021 101-43120-441700 05/06/2021 Ameripride - Mar. 2021 Shop towels 188.63 05/15/2021 101-43127-421990 05/06/2021 Ameripride - Mar. 2021- towels; rugs; paper sen 116.92 05/15/2021 101-45201-421990 05/06/2021 Peterson Companies- Fall blowout 900.00 05/15/2021 101-45203-440990 05/06/2021 Dyna - cryobit 1/2 red. shank; (100) hex nut; (50 1,222.96 05/15/2021 101-43127-421990 05/06/2021 AlldataAuto. Intelligence - 2021 repair & acces, 1,500.01 05/15/2021 101-43127-421990 05/06/2021 E.A.T.I. - (3) minibar; (3) amber; (3) blue; (6) sti 2,018.07 05/15/2021 101-43120-422100 05/06/2021 Central MN Mow & Snow - Riverside Cemetery 1,475.00 05/15/2021 215-49010-431050 05/06/2021 Central MN Mow & Snow - Hillside Cemetery 4 350.00 05/15/2021 101-45201-431050 05/06/2021 WHCE - Sunset Ponds 3/1-4/1/2021 955 kWh 133.12 05/15/2021 602-49490-438100 05/06/2021 WHCE - DMV 19.95 05/15/2021 653-41990-431900 05/06/2021 WHCE - 2171 W River St 36.45 05/15/2021 101-45201-431900 05/06/2021 WHCE - 5980 Jason Ave NE 19.95 05/15/2021 601-49440-431900 05/06/2021 WHCE - MCC 27.95 05/15/2021 226-45126-431900 05/06/2021 WHCE - 207 Chelsea Rd 32.95 05/15/2021 601-49440-431900 05/06/2021 WHCE - 209 Cedar St 29.95 05/15/2021 601-49440-431900 05/06/2021 WHCE - 132 E Broadway 29.95 05/15/2021 601-49440-431900 05/06/2021 WHCE - 107 River St W 19.95 05/15/2021 101-45201-431900 05/06/2021 WHCE - April 2021 - Hi -Way Liquors 21.42 05/15/2021 609-49754-431900 05/06/2021 WHCE - April 2021 - MCC 19.95 05/15/2021 226-45126-431900 05/06/2021 WHCE - April 2021 -200 Dundas Rd 29.95 05/15/2021 601-49440-431900 05/06/2021 WHCE - April 2021 -909 Golf Course Rd. 19.95 05/15/2021 101-43110-431900 05/06/2021 WHCE - General Street Lighting 1,434.24 05/15/2021 101-43160-438100 05/06/2021 Grainger - (3) coated gloves - 1/2 Sewer 4.65 05/15/2021 602-49490-421990 05/06/2021 Grainger - (3) coated gloves - 1/2 Water 4.65 05/15/2021 601-49440-421990 05/06/2021 Grainger - (27) coated gloves - 1/2 Water 41.85 05/15/2021 601-49440-421990 05/06/2021 Grainger - (27) coated gloves - 1/2 Sewer 41.85 05/15/2021 602-49490-421990 05/06/2021 Grainger - well #2 - air vac valve 736.98 05/15/2021 601-49440-422990 05/06/2021 Amazon - alarm battery 9.99 05/15/2021 101-43110-421990 AP -Computer Check Proof List by Vendor (05/19/2021 - 12:19 PM) Page 7 Invoice No Description Amount Payment Date Acct Number Reference 05/06/2021 Zep - (2) water wand head; doz. Zep Big Orange 297.94 05/15/2021 101-43127-421990 05/06/2021 Safeguard Security - 5/2021 security monitoring 44.95 05/15/2021 101-42200-431990 05/06/2021 NBP - Paper Towels, Post Its, Highlighters, Pens 55.45 05/15/2021 101-41310-421990 05/06/2021 NBP - Clasp Envelopes, Pens, Paper, Tape Dispe 139.67 05/15/2021 653-41990-421990 05/06/2021 NBP - Paper 69.80 05/15/2021 653-41990-421990 05/06/2021 Night Hawk Security - Monthly Security @ Park 49.95 05/15/2021 101-43110-431900 05/06/2021 Runnings - Keyed Padlock (3 pk) 20.99 05/15/2021 226-45126-422990 05/06/2021 Straight Talk Wireless - Minutes for UB Phone 39.17 05/15/2021 702-00000-432100 05/06/2021 USPS - Postage for DMV Mailings 41.10 05/15/2021 653-41990-432200 05/06/2021 USPS - Postage for DMV Mailings 41.00 05/15/2021 653-41990-432200 05/06/2021 USPS - Postage for DMV Mailings 13.15 05/15/2021 653-41990-432200 05/06/2021 USPS - Postage for DMV Mailings 23.00 05/15/2021 653-41990-432200 05/06/2021 USPS - Postage for DMV Mailings 75.65 05/15/2021 653-41990-432200 05/06/2021 USPS - Postage for DMV Mailings 26.00 05/15/2021 653-41990-432200 05/06/2021 USPS - Postage for DMV Mailings 52.50 05/15/2021 653-41990-432200 05/06/2021 USPS - Postage for DMV Mailings 11.20 05/15/2021 653-41990-432200 05/06/2021 USPS - Certified Letters for Fire Dept 28.00 05/15/2021 101-42200-432200 05/06/2021 Walmart - Various Snacks for Council Meetings 50.14 05/15/2021 101-41110-443990 05/06/2021 Weebly - MCC Webiste Renewal 159.00 05/15/2021 226-45122-430900 05/06/2021 MN Farmers Market Assoc - Annual Membershi 70.00 05/15/2021 226-45127-421750 05/06/2021 Microsoft - 365 Email Subscriptions for E3 112.52 05/15/2021 702-00000-431990 05/06/2021 Holiday - Unleaded Fuel 9.603 gals @ $2.759 26.49 05/15/2021 653-41990-421200 05/06/2021 Jimmy Johns - Food for Meeting (Tour) 274.49 05/15/2021 101-41910-443990 05/06/2021 Trusted Employees - April Background Check (1 37.00 05/15/2021 101-43120-431990 05/06/2021 Trusted Employees - April Background Check (1 37.00 05/15/2021 101-45201-431990 05/06/2021 Adobe - Annual Creative Cloud Subscription (Bi 599.88 05/15/2021 101-41310-443300 05/06/2021 Adobe - Sales Tax to be Refunded (5/17/21) 44.24 05/15/2021 101-00000-115030 05/06/2021 Advanced Disposal - March 2021 41,952.46 05/15/2021 101-43230-438400 05/06/2021 Advanced Disposal - March 2021 - Recycling 19,378.80 05/15/2021 101-43230-438400 05/06/2021 Advanced Disposal - March 2021 - GFEE 3,960.88 05/15/2021 101-00000-208120 05/06/2021 Advanced Disposal - March 2021 35.80 05/15/2021 101-43127-438400 05/06/2021 Advanced Disposal - March 2021 47.74 05/15/2021 101-45201-438400 05/06/2021 Advanced Disposal - March 2021 23.87 05/15/2021 101-45201-438400 05/06/2021 Advanced Disposal - March 2021 113.38 05/15/2021 602-49480-438400 05/06/2021 Advanced Disposal - March 2021 208.87 05/15/2021 226-45126-438400 05/06/2021 Advanced Disposal - March 2021 23.87 05/15/2021 609-49754-438400 05/06/2021 Advanced Disposal - March 2021 23.87 05/15/2021 101-45201-438400 05/06/2021 Advanced Disposal - March 2021 53.82 05/15/2021 101-45201-438400 05/06/2021 Advanced Disposal - March 2021 11.93 05/15/2021 101-45501-431990 05/06/2021 Amazon - Bulletin Board Letters, Boarder, Stick 42.94 05/15/2021 226-45122-421990 05/06/2021 Amazon - Bulletin Board Accents 9.76 05/15/2021 226-45122-421990 05/06/2021 Amazon - Doorbell for Childcare Area 12.96 05/15/2021 226-45127-421990 05/06/2021 Amazon - License Plate Envelopes (100) 33.25 05/15/2021 653-41990-421990 AP -Computer Check Proof List by Vendor (05/19/2021 - 12:19 PM) Page 8 Invoice No Description Amount Payment Date Acct Number Reference 05/06/2021 Amazon - 3 Hole Punch, Tape, Post It Notes, 56.28 05/15/2021 653-41990-421990 05/06/2021 Amazon - Desk Chair (TE) 122.44 05/15/2021 101-41800-421990 05/06/2021 Amazon - Box Cutter (12pk) 13.99 05/15/2021 101-41310-421990 05/06/2021 Amazon - Fingertip Moisteners (3 pk) 5.37 05/15/2021 101-41310-421990 05/06/2021 Cintas - Mat, Mop, Towel Svc #4080148333,4O; 126.12 05/15/2021 226-45126-431990 05/06/2021 Cintas - Mop, Mat Service #4080751421 53.62 05/15/2021 653-41990-431990 05/06/2021 Cintas - Mat Service #4081408455 26.17 05/15/2021 101-45501-431990 05/06/2021 Holiday - Unleaded Fuel 11.245 gals @ $2.759 31.02 05/15/2021 653-41990-421200 05/06/2021 Holiday - Unleaded Fuel 10.872 gals @ $2.799 30.43 05/15/2021 653-41990-421200 05/06/2021 Jimmy Johns - Food for Meeting (Developer) 100.90 05/15/2021 213-46301-443990 Check Total: 105,633.87 Vendor: 2438 VANCO SERVICES LLC Check Sequence: 9 00011533784 Vanco Gateway Exchange - April 2021 (1/2) 57.00 05/15/2021 601-49440-443980 00011533784 Vanco Gateway Exchange - April 2021 (1/2) 57.00 05/15/2021 602-49490-443980 Check Total: 114.00 Vendor: 2405 WELLS FARGO - Monthly Charges/Returns Check Sequence: 10 May 2021 Liq Store CC Fees (WF -0990) 7,891.74 05/15/2021 609-49754-443980 May 2021 WF account interest earnings -185.72 05/15/2021 101-00000-362110 May 2021 UB CC Fees (AmEx -8910) 37.54 05/15/2021 601-49440-443980 May 2021 CH CC Fees (WF -0999) 195.49 05/15/2021 101-41520-443980 May 2021 MCC CC Fees (iAccess FM -1476) 87.90 05/15/2021 226-45127-431992 May 2021 UB CC Fees (AmEx -8910) 37.53 05/15/2021 602-49490-443980 May 2021 WF account bank charges 1,357.80 05/15/2021 101-41520-443980 May 2021 UB CC Fees (Bluefin) 247.56 05/15/2021 602-49490-443980 May 2021 UB CC Fees (Bluefin) 247.55 05/15/2021 601-49440-443980 May 2021 MCC CC Fees (Daxco- 2887) 1,057.07 05/15/2021 226-45122-443980 May 2021 UB CC Fees (Bluefin-7022) 752.17 05/15/2021 601-49440-443980 May 2021 UB CC Fees (Bluefin-7022) 752.16 05/15/2021 602-49490-443980 Check Total: 12,478.79 Total for Check Run: 165,684.71 Total of Number of Checks: 10 ACH Enabled: True ACH Enabled: True The preceding list of bills payable was reviewed and approved for payment. Date: 5/24/2021 Approved by Mayor Lloyd Hilgart AP -Computer Check Proof List by Vendor (05/19/2021 - 12:19 PM) Page 9 City Council Agenda: 05/24/2021 2B. Consideration of approving new hires and departures for City departments Prepared by: Meeting Date: ❑ Regular Agenda Item Human Resources Manager 5/24/21 ® Consent Agenda Item Reviewed by: Approved by: N/A City Administrator ACTION REQUESTED Motion to approve new hires and departures for city departments. REFERENCE AND BACKGROUND The Council is asked to ratify the attached list of new hires and departures for the City. This listing includes full-time, part-time, seasonal, and temporary employees. The listing may also include status changes and promotions. Budget Impact: Positions are generally included in the budget. II. Staff Workload Impact: If new position, there may be some training involved. If terminated position, existing staff will cover hours as needed, until replacement. III. Comprehensive Plan Impact: N/A STAFF RECOMMENDED ACTION City staff recommends approval of new hires and departures as identified on the attached list. SUPPORTING DATA • List of new hires and terminated employees. NEW EMPLOYEES Name Title Department Hire Date Maria Sakry WSI MCC 5/10/21 PT Kathleen Haponuk Liquor Store Clerk Liquor Store 5/17/21 PT Hema Ramsewak DMV Clerk DMV 5/18/21 PT Mai Lor DMV Clerk DMV 6/1/21 PT TERMINATING EMPLOYEES Name Reason Department Last Day Derek Brunsberg Voluntary MCC 1/25/20 PT Shelley Lovejoy Voluntary DMV 2/10/20 PT Christy Mariette Voluntary MCC 3/7/20 PT Amee Pribyl Voluntary MCC 3/11/20 PT Jaime Cline Voluntary MCC 3/13/20 PT Melissa Hoernemann Voluntary Liquor Store 12/5/20 PT Chloe Beaudry Voluntary MCC 2/27/21 PT Eryn Pfeifer Voluntary MCC 5/10/21 PT Class Class Note: The 2020 terminations are employees who have opted not to return from extended leave. New Hire and Terms City Council 2021: 5/20/2021 City Council Agenda: 05/24/2021 2C. Consideration of approving the sale or disposal of surplus City property Prepared by: Meeting Date: ❑ Regular Agenda Item N/A 05/24/2021 ® Consent Agenda Item Reviewed by: Approved by: N/A N/A There is no report this City Council Cycle. City Council Agenda: 05/24/2021 2D. Consideration to approving annual liquor license renewals for 2021-2022 Prepared by: Meeting Date: ❑ Regular Agenda Item City Clerk 05/24/2021 ® Consent Agenda Item Reviewed by: Approved by: N/A City Administrator ACTION REQUESTED Motion to approve the annual liquor license renewals for 2021-2022. PREVIOUS COUNCIL ACTION April 12, 2021: The City Council waived all on -sale liquor license fees for 2021-2022. REFERENCE AND BACKGROUND City Council is asked to approve the liquor license renewals for 2021-2022 as listed below. The businesses listed are the current license holders on record. Staff reviews each renewal to ensure the paperwork was completed in compliance with the State Alcohol & Gambling rules and State laws. Renewal forms will be sent to the Wright County Sheriff's Office for background check verification and signature. The completed renewals, following City Council and WCSO approval, will be sent to the State Alcohol & Gambling Division. This office allows the license holders to purchase alcoholic beverages from approved wholesalers. The City is responsible for issuing the annual licenses and sending them to the premises, where they are to be displayed on site. Intoxicating Liquor On -Sale (no fee) 1. Applebee's Neighborhood Grill & Bar (Apple Minnesota LLC) 2. Beef O'Bradys (TMC & J Taylor Corp.) 3. Buffalo Wild Wings #210 (Blazin Wings Inc.) 4. Capitan Pancho Villa (IC Enterprises LLC) 5. Chatters Restaurant & Bar (West River Restaurants Inc.) 6. Cornerstone Cafe & Catering (Cornerstone Cafe & Catering Co.) 7. Emagine Monticello (Northwoods Entertainment Inc.) 8. Hawk's Sports Bar & Grill (Hawk's Sports Bar & Grill Inc.) 9. Monticello Country Club (Monticello Country Club Inc.) 10. Rancho Grande (Rancho Grande Mex. Rest. Inc. #2) City Council Agenda: 05/24/2021 11. River City Extreme (River City Extreme Inc.) 12. VFW 8731 (Blub Dorchester) Liquor — Club/Sunday On -Sale (no fee) 1. American Legion 260 Liquor — Wine/Strong Beer Combination (no fee) 1. Bluestone Grill (Pauly Companies) Liquor — Wine (no fee) 1. Asian Cafe Sushi Grill Inc. 3.2% Beer On -Sale 1. Asian Cafe Sushi Grill Inc. Taproom/Off-Sale Growler (no fee on -sale, $250 off -sale) 1. Nordic Brewing 2. Rustech Brewing 3.2% Beer Off -Sale ($100 fee) 1. Cub Foods (Monticello 1998 LLC) 2. Kwik Trip #177 (Kwik Trip Inc.) 3. Kwik Trip #345 (Kwik Trip Inc.) 4. SuperAmerica #4479 (Northern Tier Retail LLC) 5. Target Store T-2180 (Target Corporation) 6. Wal-Mart Supercenter #3624 (Wal-Mart Stores Inc.) I. Budget Impact: The on -sale liquor license fees were waived at the April 12, 2021 City Council meeting. This resulted in a revenue loss of $51,075 in the General Fund. II. Staff Workload Impact: City staff prepares and mails billings, handles renewal paperwork and payments, and issues the licenses. III. Comprehensive Plan Impact: N/A STAFF RECOMMENDED ACTION City staff recommends approval of the liquor license renewals. SUPPORTING DATA • Copies of liquor license renewal forms. Minnesota Department of Public Safety Alcohol & Gambling Enforcement Division 445 Minnesota Street, 1600 St Paul, Minnesota 55101 10 651-201-7507 RENEWAL Licensee: Please verify your license information contained below. Make corrections if necessary and sign. City Clerk/County Auditor should submit this signed renewal with completed license and licensee liquor liability for the new license period. City Clerk/County Auditor are also required by M.S. 340A.404 S.3 to report any license cancellation. License Code TRONSS License Period Ending 6/30/2021 Issuing Authority Monticello Licensee Name Rustech Brewing Company LLC DBA Rustech Brewing Address 105 W 3rd Street Monticello, MN 55362 Business Phone 6124149437 License Fees: Off Sale $0.00 On Sale $500.00 Iden 68730 Sunday Sales = Yes 0 No Sunday $200.00 By signing this renewal application, applicant certifies that there has been no change in ownership on the above named licensee. For changes in ownership, the licensee named above, or for new licensees, full applications should be used. See back of this application for further information needed to complete this renewal. Api3licant's sionature on this renewal confirms the following: Failure to report any of the following may result in civil penalties 1. Licensee confirms it has no interest whatsoever, directly or indirectly in any other liquor establishments in Minnesota. If so, give details on back of this application. 2. Licensee confirms that it has never had a liquor license rejected by any city/township/county in the state of Minnesota. If ever rejected, please give details on the back of this renewal, then sign below. 3. Licensee confirms that for the past five years it has not had a liquor license revoked for any liquor law violation (state or local). If a revocation has occurred, please give details on the back of this renewal, then sign below. 4. Licensee confirms that during the past five years it or its employees have not been cited for any civil or criminal liquor law violations. If violations have occurred, please give details on back of this renewal, then sign below. 5. Licensee confirms that during the past license year, a summons has not been issued under the Liquor Liability Law (Dram Shop) MS 340A.802. If yes, attach a copy of the summons, then sign below. 6. Licensee confirms that Workers Compensation insurance will be kept in effect during the license period. Licensee has attached a liquor liability insurance certificate that corresponds with the license period in city/county wherelicense is issued. $100,000 in cash or securities or $100,000 surety bond may be submitted in lieu of liquor liability.(3.2& liquor licenses are exempt if sales are less than $25,000 at on sale, or $50,000 at off sale). Licensee Signature DOB SSN Date (Signature certifies all above information to be correct and license has been approved by city/county.) City Clerk/County Auditor Signature Date (Signature certifies that renewal of a liquor, wine or club license has been approved by the city/county as stated above.) County Attorney Signature (County Board issued licenses only(Signature certifies licensee is eligible for license) Police/Sheriff Signature Signature certifies licensee or associates have been checked for any state/local liquor law violations (criminal/civil) during the past five years. Report violations on back, then sign here. Minnesota Department of Public Safety Alcohol & Gambling Enforcement Division 445 Minnesota Street, 1600 St Paul, Minnesota 55101 651-201-7507 RENEWAL Licensee: Please verify your license information contained below. Make corrections if necessary and sign. City Clerk/County Auditor should submit this signed renewal with completed license and licensee liquor liability for the new license period. City Clerk/County Auditor are also required by M.S. 340A.404 S.3 to report any license cancellation. License Code BROFSL License Period Ending 6/30/2021 Issuing Authority Monticello Licensee Name Rustech Brewing Company LLC DBA Rustech Brewing Address 105 W 3rd Street Monticello, MN 55362 Business Phone 6124149437 License Fees: Off Sale $200.00 On Sale $0.00 Iden 68729 Sunday Sales [—] Yes Sunday $0.00 Q No By signing this renewal application, applicant certifies that there has been no change in ownership on the above named licensee. For changes in ownership, the licensee named above, or for new licensees, full applications should be used. See back of this application for further information needed to complete this renewal. Aoolicant's sianature on this renewal confirms the following: Failure to report any of the following may result in civil penalties 1. Licensee confirms it has no interest whatsoever, directly or indirectly in any other liquor establishments in Minnesota. If so, give details on back of this application. 2. Licensee confirms that it has never had a liquor license rejected by any city/township/county in the state of Minnesota. If ever rejected, please give details on the back of this renewal, then sign below. 3. Licensee confirms that for the past five years it has not had a liquor license revoked for any liquor law violation (state or local). If a revocation has occurred, please give details on the back of this renewal, then sign below. 4. Licensee confirms that during the past five years it or its employees have not been cited for any civil or criminal liquor law violations. If violations have occurred, please give details on back of this renewal, then sign below. 5. Licensee confirms that during the past license year, a summons has not been issued under the Liquor Liability Law (Dram Shop) MS 340A.802. If yes, attach a copy of the summons, then sign below. 6. Licensee confines that Workers Compensation insurance will be kept in effect during the license period. Licensee has attached a liquor liability insurance certificate that corresponds with the license period in city/county wherelicense is issued. $100,000 in cash or securities or $100,000 surety bond may be submitted in lieu of liquor liability.(3.2& liquor licenses are exempt if sales are less than $25,000 at on sale, or $50,000 at off sale). Licensee Signature DOB SSN Date (Signature certifies all above information to be correct and license has been approved by city/county.) City Clerk/County Auditor Signature (Signature certifies that renewal of a liquor, wine or club license has been approved by the city/county as stated above.) County Attorney Signature (County Board issued licenses only(Signature certifies licensee is eligible for license) Police/Sheriff Signature Signature certifies licensee or associates have been checked for any state/local liquor law violations (criminal/civil) during the past five years. Report violations on back, then sign here. No. Fee $ THIS CERTIFIES THAT: LICENSEE TRADE NAME BREWER OFF SALE MALT LIQUOR LICENSE STREET ADDRESS OR LOT AND BLOCK NO Is authorized to sell malt liquor at off sale at a licensed brewery subject to the laws and regulations of the State of Minnesota and municipal Ordinances for the Period beginning to "SUNDAY LICENSE" YES ❑ No ❑ Mayor or President THIS LICENSE IS APPROVED Given under my hand and the Municipal Corporate Seal City Alcohol & Gambling Enforcement Director Date Clerk or Auditor Minnesota Department of Public Safety Alcohol & Gambling Enforcement Division 445 Minnesota Street, 1600 St Paul, Minnesota 55101 651-201-7507 RENEWAL Licensee: Please verify your license information contained below. Make corrections if necessary and sign. City Clerk/County Auditor should submit this signed renewal with completed license and licensee liquor liability for the new license period. City Clerk/County Auditor are also required by M.S. 340A.404 S.3 to report any license cancellation. License Code BROFSL License Period Ending 6/30/2021 Issuing Authority Monticello Licensee Name The Nordic Brewing Co LLC DBA The Nordic Brewing Address 530 Cedar Street Monticello, MN 55362 Business Phone 7636563370 License Fees: Off Sale $200.00 On Sale $0.00 Iden 71126 Sunday Sales 0 Yes Q No Sunday $0.00 By signing this renewal application, applicant certifies that there has been no change in ownership on the above named licensee. For changes in ownership, the licensee named above, or for new licensees, full applications should be used. See back of this application for further information needed to complete this renewal. Applicant's icnat r on this renewal confirms the following, Failure to report any of the following may result in civil penalties 1. Licensee confirms it has no interest whatsoever, directly or indirectly in any other liquor establishments in Minnesota. If so, give details on back of this application. 2. Licensee confirms that it has never had a liquor license rejected by any city/township/county in the state of Minnesota. If ever rejected, please give details on the back of this renewal, then sign below. 3. Licensee confirms that for the past five years It has not had a liquor license revoked for any liquor law violation (state or local). If a revocation has occurred, please give details on the back of this renewal, then sign below. 4. Licensee confirms that during the past five years it or its employees have not been cited for any civil or criminal liquor law violations. If violations have occurred, please give details on back of this renewal, then sign below. 5. Licensee confirms that during the past license year, a summons has not been issued under the Liquor Liability Law (Dram Shop) MS 340A.802. If yes, attach a copy of the summons, then sign below. 6. Licensee confirms that Workers Compensation insurance will be kept in effect during the license period. Licensee has attached a liquor liability insurance certificate that corresponds with the license period in city/county wherellcense is issued. $100,000 in cash or securities or $100,000 surety bond may be submitted in lieu of liquor liability.(3.2& liquor licenses are exempt if sales are less than $25,000 at on sale, or $50,000 at off sale). Licensee Signature DOB SSN Date (Signature certifies all above information to be correct and license has been approved by city/county.) that renewal of a liquor, wine or club license has been approved by the city/county as stated above.) Board issued licenses only(Signature certifies licensee is eligible for license) Police/Sheriff Signature Date Signature certifies licensee or associates have been checked for any state/local liquor law violations (criminal/civil) during the past five years. Report violations on back, then sign here. No. Fee $ THIS CERTIFIES THAT: LICENSEE TRADE NAME city_ BREWER OFF SALE MALT LIQUOR LICENSE STREET ADDRESS OR LOT AND BLOCK NO Is authorized to sell malt liquor at off sale at a licensed brewery subject to the laws and regulations of the State of Minnesota and municipal Ordinances for the Period beginning to "SUNDAY LICENSE" YES ❑ NO ❑ Mayor or President THIS LICENSE IS APPROVED Given under my hand and the Municipal Corporate Seal City of Alcohol & Gambling Enforcement Director Date Clerk or Auditor Minnesota Department of Public Safety Alcohol & Gambling Enforcement Division 445 Minnesota Street, 1600 St Paul, Minnesota 55101 10 651-201-7507 RENEWAL Licensee: Please verify your license information contained below. Make corrections if necessary and sign. City Clerk/County Auditor should submit this signed renewal with completed license and licensee liquor liability for the new license period. City Clerk/County Auditor are also required by M.S. 340A.404 S.3 to report any license cancellation. License Code TRONSS License Period Ending 6/30/2021 Issuing Authority Monticello Licensee Name The Nordic Brewing Cc LLC DBA The Nordic Brewing Address 530 Cedar Street Monticello, MN 55362 Business Phone 7636563370 License Fees: Off Sale $0.00 On Sale $500.00 Iden 71067 Sunday Sales 0 Yes = No Sunday $0.00 By signing this renewal application, applicant certifies that there has been no change in ownership on the above named licensee. For changes in ownership, the licensee named above, or for new licensees, full applications should be used. See back of this application for further information needed to complete this renewal. Aoulicant's sionaturethis al confirms the following: Failure to report any of the following may result in civil oenalties 1. Licensee confirms it has no interest whatsoever, directly or indirectly in any other liquor establishments in Minnesota. If so, give details on back of this application. 2. Licensee confirms that it has never had a liquor license rejected by any city/township/county in the state of Minnesota. If ever rejected, please give details on the back of this renewal, then sign below. 3. Licensee confirms that for the past five years it has not had a liquor license revoked for any liquor law violation (state or local). If a revocation has occurred, please give details on the back of this renewal, then sign below. 4. Licensee confirms that during the past five years it or its employees have not been cited for any civil or criminal liquor law violations. If violations have occurred, please give details on back of this renewal, then sign below. 5. Licensee confirms that during the past license year, a summons has not been issued under the Liquor Liability Law (Dram Shop) MS 340A.802. If yes, attach a copy of the summons, then sign below. 6. Licensee confirms that Workers Compensation insurance will be kept in effect during the license period. Licensee has attached a liquor liability insurance certificate that corresponds with the license period in city/county wherelicense is issued. $100,000 in cash or securities or $100,000 surety bond may be submitted in lieu of liquor liability.(3.2& liquor licenses are exempt if sales are less than $25,000 at on sale, or $50,000 at off sale). Licensee Signature DOB SSN Date (Signature certifies all above information to be correct and license has been approved by city/county.) City Clerk/County Auditor Signature Date (Signature certifies that renewal of a liquor, wine or club license has been approved by the city/county as stated above.) County Attorney Signature Date (County Board issued licenses only(Signature certifies licensee is eligible for license) Police/Sheriff Signature Date Signature certifies licensee or associates have been checked for any state/local liquor law violations (criminal/civil) during the past five years. Report violations on back, then sign here. ,�- Minnesota Department of Public Safety /// Alcohol & Gambling Enforcement Division 445 Minnesota Street, 1600 St Paul, Minnesota 55101 651-201-7507 �` RENEWAL OF LIQUOR, WINE, CLUB OR 3.2% LICENSES No license will be approve or released until the $20 Retailer ID Card fee is received by Alcohol and Gambling Enforcement Licensee: Please verify your license information contained below. Make corrections if necessary and sign. City Clerk/County Auditor should submit this signed renewal with completed license and licensee liquor liability for the new license period. City Clerk/County Auditor are also required by M.S. 340A.404 S.3 to report any license cancellation. License Code: MCLONSS Issuing Authority: Monticello Licensee Name: American Legion 260 Trade Name: Address: 304 Elm St/Box 806 Monticello, MN 55362 Business Phone: 7632952574 License Fees: Off Sale: $0.00 License Period Ending: 6/30/2021 On Sale: $500.00 Sunday: $200.00 Iden: 1143 By signing this renewal application, applicant certifies that there has been no change in ownership on the above named licensee. For changes in ownership, the licensee named above, or for new licensees, full applications should be used. See back of this application for further information needed to complete this renewal. Applicant's signature on this renewal confirms the following: Failure to report any of the following may result in civil penalties. 1. Licensee confirms it has no interest whatsoever, directly or indirectly in any other liquor establishments in Minnesota. If so, give details on back of this application. 2. Licensee confirms that it has never had a liquor license rejected by any city/township/county in the state of Minnesota. If ever rejected, please give details on the back of this renewal, then sign below. 3. Licensee confirms that for the past five years it has not had a liquor license revoked for any liquor law violation (state or local). If a revocation has occurred, please give details on the back of this renewal, then sign below. 4. Licensee confirms that during the past five years it or its employees have not been cited for any civil or criminal liquor law violations. If violations have occurred, please give details on back of this renewal, then sign below. 5. Licensee confirms that during the past license year, a summons has not been issued under the Liquor Liability Law (Dram Shop) MS 340A.802. If yes, attach a copy of the summons, then sign below. 6. Licensee confirms that Workers Compensation insurance will be kept in effect during the license period.Licensee has attached a liquor liability insurance certificate that corresponds with the license period in city/county where license is issued. Licensee has attached a liquor liability insurance certificate that corresponds with the license period in city/county where license is issued. $100,000 in cash or securities or $310,000 surety bond may be submitted in lieu of liquor liability.(3.2 liquor licenses are exempt if sales are less than $25,000 at on sale, or $50,000 at off sale). Licensee Signature DOB E� (Signature certifies all above information to be correct and license has been approved by city/county.) City Clerk/Auditor Signature Date (Signature certifies that renewal of a liquor, wine or club license has been approved by the city/county as stated above.) County Attorney Signature Date County Board issued licenses only(Signature certifies licensee is eligible for license). Police/Sheriff Signature Date Signature certifies licensee or associates have been checked for any state/local liquor law violations (criminal/civil) during the past five years. Report violations on back, then sign here. Minnesota Department of Public Safety Alcohol & Gambling Enforcement Division 445 Minnesota Street, 1600 St Paul, Minnesota 55101 651-201-7507 `-"J RENEWAL OF LIQUOR, WINE, CLUB OR 3.2% LICENSES No license will be approve or released until the $20 Retailer Ib Card fee is received by Alcohol and Gambling Enforcement Licensee: Please verify your license information contained below. Make corrections if necessary and sign. City Clerk/County Auditor should submit this signed renewal with completed license and licensee liquor liability for the new license period. City Clerk/County Auditor are also required by M.S. 340A.404 S.3 to report any license cancellation. License Code: ONSS License Period Ending: 6/30/2021 Iden: 30773 Issuing Authority: Monticello Licensee Name: Apple Minnesota LLC Trade Name: Applebee's Neighborhood Grill & Bar Address: 9386 Deegan Ave Monticello, MN 55362 Business Phone: 7632956337 License Fees: Off Sale: $0.00 On Sale: $3,750.00 Sunday: $200.00 By signing this renewal application, applicant certifies that there has been no change in ownership on the above named licensee. For changes in ownership, the licensee named above, or for new licensees, full applications should be used. See back of this application for further information needed to complete this renewal. Applicant's slanature on this renewal confines the following, Failure to report any of the followina may result in civil oenatttes 1. Licensee confirms it has no interest whatsoever, directly or indirectly in any other liquor establishments in Minnesota. If so, give details on back of this application. 2. Licensee confirms that it has never had a liquor license rejected by any city/township/county in the state of Minnesota. If ever rejected, please give details on the back of this renewal, then sign below. 3. Licensee confirms that for the past five years it has not had a liquor license revoked for any liquor law violation (state or local). If a revocation has occurred, please give details on the back of this renewal, then sign below. 4. Licensee confirms that during the past five years it or its employees have not been cited for any civil or criminal liquor law violations. If violations have occurred, please give details on back of this renewal, then sign below. 5. Licensee confirms that during the past license year, a summons has not been issued under the Liquor Liability Law (Dram Shop) MS 340A.802. If yes, attach a copy of the summons, then sign below. 6. Licensee confirms that Workers Compensation insurance will be kept in effect during the license period.Licensee has attached a liquor liability insurance certificate that corresponds with the license period in city/county where license is issued. Licensee has attached a liquor liability insurance certificate that corresponds with the license period in city/county where license is Issued. $100,000 in cash or securities or $310,000 surety bond may be submitted In lieu of liquor liability.(3.2 liquor licenses are exempt if sales are less than $25,000 at on sale, or $50,000 at off sale). Licensee Signature DOB S (Signature certifies all above information to be correct and license has been approved by city/county.) City Clerk/Auditor Signature Date (Signature certifies that renewal of a liquor, wine or club license has been approved by the city/county as stated above.) County Attorney Signature Date County Board issued licenses only(Signature certifies licensee is eligible for license). Police/Sheriff Signature Date Signature certifies licensee or associates have been checked for any statenocal liquor law violations (criminal/civil) during the past five years. Report violations on back, then sign here. Minnesota Department of Public Safety Alcohol & Gambling Enforcement Division 445 Minnesota Street, 1600 0 St Paul, Minnesota 55101 651-201-7507 RENEWAL OF LIQUOR, WINE, CLUB OR 3.2% LICENSES No license will be approve or released until the $20 Retailer ID Card fee is received by. Alcohol and Gambling Enforcement Licensee: Please verify your license information contained below. Make corrections if necessary and sign. City Clerk/County Auditor should submit this signed renewal with completed license and licensee liquor liability for the new license period. City Clerk/County Auditor are also required by M.S. 340A.404 S.3 to report any license cancellation. License Code: MWNONSB Issuing Authority: Monticello Licensee Name: Asian Cafe Sushi Grill Inc. Trade Name: Asian Cafe Sushi Grille Address: 514 Pine St Monticello, MN 55362 Business Phone: 7632721509 License Fees: Off Sale: $0.00 License Period Ending: 6/30/2021 Iden: 63860 On Sale: $250.00 Sunday: $0.00 By signing this renewal application, applicant certifies that there has been no change in ownership on the above named licensee. For changes in ownership, the licensee named above, or for new licensees, full applications should be used. See back of this application for further information needed to complete this renewal. Applicant's smana+ on this renewal confirms the following: Failure to report any of the followina may result in civil penalties 1. Licensee confirms it has no interest whatsoever, directly or indirectly in any other liquor establishments in Minnesota. If so, give details on back of this application. 2. Licensee confirms that it has never had a liquor license rejected by any city/township/county in the state of Minnesota. If ever rejected, please give details on the back of this renewal, then sign below. 3. Licensee confirms that for the past five years it has not had a liquor license revoked for any liquor law violation (state or local). If a revocation has occurred, please give details on the back of this renewal, then sign below. 4. Licensee confirms that during the past five years it or its employees have not been cited for any civil or criminal liquor law violations. If violations have occurred, please give details on back of this renewal, then sign below. 5. Licensee confirms that during the past license year, a summons has not been issued under the Liquor Liability Law (Dram Shop) MS 340A.802. If yes, attach a copy of the summons, then sign below. 6. Licensee confines that Workers Compensation insurance will be kept in effect during the license period.Licensee has attached a liquor liability insurance certificate that corresponds with the license period in city/county where license is issued. Licensee has attached a liquor liability insurance certificate that corresponds with the license period in city/county where license is issued. $100,000 in cash or securities or $310,000 surety bond may be submitted in lieu of liquor liability.(3.2 liquor licenses are exempt if sales are less than $25,000 at on sale, or $50,000 at off sale). Licensee Signature DOB SSN Date (Signature certifies all above information to be correct and license has been approved by city/county.) City Clerk/Auditor Signature Date (Signature certifies that renewal of a liquor, wine or club license has been approved by the city/county as stated above.) County Attorney Signature Date County Board issued licenses only(Signature certifies licensee is eligible for license). Police/Sheriff Signature Date Signature certifies licensee or associates have been checked for any state/local liquor law violations (criminal/civil) during the past five years. Report violations on back, then sign here. Minnesota Department of Public Safety Alcohol & Gambling Enforcement Division 445 Minnesota Street, 1600 9 St Paul, Minnesota 55101 651-201-7507 RENEWAL OF LIQUOR, WINE, CLUB OR 3.2% LICENSES No license will be approve or released until the $20 Retailer ID Card fee is received by Alcohol and Gambling Enforcement Licensee: Please verify your license information contained below. Make corrections if necessary and sign. City Clerk/County Auditor should submit this signed renewal with completed license and licensee liquor liability for the new license period. City Clerk/County Auditor are also required by M.S. 340A.404 S.3 to report any license cancellation. License Code: 3.2ONSS Issuing Authority: Monticello Licenses Name: Asian Cafe Sushi Grill Inc. Trade Name: Address: 514 Pine St Monticello, MN 55362 Business Phone: 763-272-1509 License Fees: Off Sale: $0.00 License Period Ending: 6/30/2021 Iden: 63861 On Sale: $250.00 Sunday: $0.00 By signing this renewal application, applicant certifies that there has been no change In ownership on the above named licensee. For changes in ownership, the licensee named above, or for new licensees, full applications should be used. See back of this application for further information needed to complete this renewal. Applicant's sianature on this renewal confirms the following, Failure to report any of the following may result in civil penalties. 1. Licensee confirms it has no interest whatsoever, directly or indirectly in any other liquor establishments in Minnesota. If so, give details on back of this application. 2. Licensee confirms that it has never had a liquor license rejected by any city/township/county in the state of Minnesota. If ever rejected, please give details on the back of this renewal, then sign below. 3. Licensee confirms that for the past five years it has not had a liquor license revoked for any liquor law violation (state or local). If a revocation has occurred, please give details on the back of this renewal, then sign below. 4. Licensee confines that during the past five years it or its employees have not been cited for any civil or criminal liquor law violations. If violations have occurred, please give details on back of this renewal, then sign below. 5. Licensee confirms that during the past license year, a summons has not been issued under the Liquor Liability Law (Dram Shop) MS 340A.802. If yes, attach a copy of the summons, then sign below. 6. Licensee confirms that Workers Compensation Insurance will be kept in effect during the license period.Licensee has attached a liquor liability insurance certificate that corresponds with the license period in city/county where license is issued. Licensee has attached a liquor liability insurance certificate that corresponds with the license period in city/county where license is issued. $100,000 in cash or securities or $310,000 surety bond maybe submitted In lieu of liquor Ilability.(3.2 liquor licenses are exempt If sales are less than $25,000 at on sale, or $50,000 at off sale). Licensee Signature DOB SSN Date (Signature certifies all above information to be correct and license has been approved by city/county.) City Clerk/Auditor Signature Date (Signature certifies that renewal of a liquor, wine or club license has been approved by the city/county as stated above.) County Attorney Signature Date County Board issued licenses only(Signature certifies licensee is eligible for license). Police/Sheriff Signature Date Signature certifies licensee or associates have been checked for any state/local liquor law violations (criminal/civil) during the past five years. Report violations on back, then sign here. Minnesota Department of Public Safety Alcohol & Gambling Enforcement Division 445 Minnesota Street, 1600 0 St Paul, Minnesota 55101 651-201-7507 RENEWAL OF LIQUOR, WINE, CLUB OR 3.2% LICENSES No license will be approve or released until the $20 Retailer ID Card fee is received by Alcohol and Gambling Enforcement Licensee: Please verify your license information contained below. Make corrections if necessary and sign. City Clerk/County Auditor should submit this signed renewal with completed license and licensee liquor liability for the new license period. City Clerk/County Auditor are also required by M.S. 340A.404 S.3 to report any license cancellation. License Code: ONSS Issuing Authority: Monticello Licensee Name: Blazin Wings Inc. Trade Name: Buffalo Wild Wings #1210 Address: 9221 Cedar Street Monticello, MN 55362 Business Phone: 2187225100 License Fees: Off Sale: $0.00 License Period Ending: 6/30/2021 On Sale: $3,750.00 Sunday: $200.00 Iden: 26234 By signing this renewal application, applicant certifies that there has been no change in ownership on the above named licensee. For changes in ownership, the licensee named above, or for new licensees, full applications should be used. See back of this application for further information needed to complete this renewal. Applicant's signature on this renewal confirms the following: Failure to report any of the following may result in civil penalties 1. Licensee confirms it has no interest whatsoever, directly or indirectly in any other liquor establishments in Minnesota. If so, give details on back of this application. 2. Licensee confirms that it has never had a liquor license rejected by any city/township/county in the state of Minnesota. If ever rejected, please give details on the back of this renewal, then sign below. 3. Licensee confirms that for the past five years it has not had a liquor license revoked for any liquor law violation (state or local). If a revocation has occurred, please give details on the back of this renewal, then sign below. 4. Licensee confirms that during the past five years it or its employees have not been cited for any civil or criminal liquor law violations. If violations have occurred, please give details on back of this renewal, then sign below. 5. Licensee confirms that during the past license year, a summons has not been issued under the Liquor Liability Law (Dram Shop) MS 340A.802. If yes, attach a copy of the summons, then sign below. 6. Licensee confirms that Workers Compensation insurance will be kept in effect during the license period.Licensee has attached a liquor liability insurance certificate that corresponds with the license period in city/county where license is issued. Licensee has attached a liquor liability insurance certificate that corresponds with the license period in city/county where license is issued. $100,000 in cash or securities or $310,000 surety bond may be submitted in lieu of liquor liability.(3.2 liquor licenses are exempt if sales are less than $25,000 at on sale, or $50,000 at off sale). Licensee Signature DOB SSN Date (Signature certifies all above information to be correct and license has been approved by city/county.) City Clerk/Auditor Signature Date (Signature certifies that renewal of a liquor, wine or club license has been approved by the city/county as stated above.) County Attorney Signature Date County Board issued licenses only(Signature certifies licensee is eligible for license). Police/Sheriff Signature uace Signature certifies licensee or associates have been checked for any state/local liquor law violations (criminal/civil) during the past five years. Report violations on back, then sign here. Minnesota Department of Public Safety Alcohol & Gambling Enforcement Division 445 Minnesota Street, 1600 0 St Paul, Minnesota 55101 651.201-7507 RENEWAL OF LIQUOR, WINE, CLUB OR 3.2% LICENSES No license will be approve or released until the $20 Retailer ID Card fee is received by Alcohol and Gambling Enforcement Licensee: Please verify your license information contained below. Make corrections if necessary and sign. City Clerk/County Auditor should submit this signed renewal with completed license and licensee liquor liability for the new license period. City Clerk/County Auditor are also required by M.S. 340A.404 S.3 to report any license cancellation. License Code: Issuing Authority: Licensee Name: Trade Name: Address: Business Phone: License Fees: 3.2ONSS Monticello City of Monticello License Period Ending: 6/30/2021 Monticello Community Center 2175 W River St Monticello, MN 55362 7632713268 Off Sale: $0.00 On Sale: $137.00 Sunday: $0.00 Iden: 22952 By signing this renewal application, applicant certifies that there has been no change in ownership on the above named licensee. For changes In ownership, the licensee named above, or for new licensees, full applications should be used. See back of this application for further information needed to complete this renewal. Applicant's signature on this renewal confirms the following, Failure to report any of the followina may result in civil penalties 1. Licensee confines it has no interest whatsoever, directly or indirectly in any other liquor establishments in Minnesota. If so, give details on back of this application. 2. Licensee confirms that it has never had a liquor license rejected by any city/township/county in the state of Minnesota. If ever rejected, please give details on the back of this renewal, then sign below. 3. Licensee confirms that for the past five years it has not had a liquor license revoked for any liquor law violation (state or local). If a revocation has occurred, please give details on the back of this renewal, then sign below. 4. Licensee confirms that during the past five years it or its employees have not been cited for any civil or criminal liquor law violations. If violations have occurred, please give details on back of this renewal, then sign below. 5. Licensee confirms that during the past license year, a summons has not been issued under the Liquor Liability Law (Dram Shop) MS 340A.802. If yes, attach a copy of the summons, then sign below. 6. Licensee confines that Workers Compensation insurance will be kept in effect during the license pedod.Licensee has attached a liquor liability insurance certificate that corresponds with the license period in city/county where license is issued. Licensee has attached a liquor liability insurance certificate that corresponds with the license period in city/county where license is issued. $100,000 in cash or securities or $310,000 surety bond may be submitted in lieu of liquor liability.(3.2 liquor licenses are exempt If sales are less than $25,000 at on sale, or $50,000 at off sale). Licensee Signature DOB SSN Date (Signature certifies all above information to be correct and license has been approved by city/county.) City Clerk/Auditor Signature Date (Signature certifies that renewal of a liquor, wine or club license has been approved by the city/county as stated above.) County Attorney Signature Date County Board issued licenses only(Signature certifies licensee is eligible for license). Police/Sheriff Signature Date Signature certifies licensee or associates have been checked for any statellocal liquor law violations (criminal/civil) during the past five years. Report violations on back, then sign here. Minnesota Department of Public Safety Alcohol & Gambling Enforcement Division 445 Minnesota Street, 1600 St Paul, Minnesota 55101 651-201-7507 RENEWAL OF LIQUOR, WINE, CLUB OR 3.2% LICENSES No license will be approve or released until the $20 Retailer ID Card fee is received by Alcohol and Gambling Enforcement Licensee: Please verify your license information contained below. Make corrections if necessary and sign. City Clerk/County Auditor should submit this signed renewal with completed license and licensee liquor liability for the new license period. City Clerk/County Auditor are also required by M.S. 340A.404 S.3 to report any license cancellation. License Code: ONSS License Period Ending: 6/30/2021 Iden: 1625 Issuing Authority: Monticello Licensee Name: Hawk's Sports Bar & Grill Inc. Trade Name: Hawk's Sports Bar & Grill Address: 9697 Hart Blvd Monticello, MN 55362 Business Phone: 7632959990 License Fees: Off Sale: $0.00 On Sale: $3,750.00 Sunday: $200.00 By signing this renewal application, applicant certifies that there has been no change in ownership on the above named licensee. For changes In ownership, the licensee named above, or for new licensees, full applications should be used. See back of this application for further Information needed to complete this renewal. Applicant's signature on this renewal confirms the following, Failure to report any of the followina may result in civil penalties 1. Licensee confirms it has no interest whatsoever, directly or indirectly in any other liquor establishments in Minnesota. If so, give details on back of this application. 2. Licensee confirms that it has never had a liquor license rejected by any city/township/county in the state of Minnesota. If ever rejected, please give details on the back of this renewal, then sign below. 3. Licensee confirms that for the past five years it has not had a liquor license revoked for any liquor law violation (state or local). If a revocation has occurred, please give details on the back of this renewal, then sign below. 4. Licensee confirms that during the past five years it or its employees have not been cited for any civil or criminal liquor law violations. If violations have occurred, please give details on back of this renewal, then sign below. 5. Licensee confirms that during the past license year, a summons has not been issued under the Liquor Liability Law (Dram Shop) MS 340A.802. If yes, attach a copy of the summons, then sign below. 6. Licensee confirms that Workers Compensation Insurance will be kept in effect during the license period.Licensee has attached a liquor liability insurance certificate that corresponds with the license period in city/county where license is issued. Licensee has attached a liquor liability Insurance certificate that corresponds with the license period in city/county where license is issued. $100,000 in cash or securities or $310,000 surety bond maybe submitted in lieu of liquor Ilabllity.(3.2 liquor licenses are exempt if sales are less than $25,000 at on sale, or $50,000 at off sale). Licensee Signature DOB SSN Date (Signature certifies all above information to be correct and license has been approved by city/county.) City Clerk/Auditor Signature Date (Signature certifies that renewal of a liquor, wine or club license has been approved by the city/county as stated above.) County Attorney Signature Date County Board issued licenses only(Signature certifies licensee is eligible for license). Police/Sheriff Signature Date Signature certifies licensee or associates have been checked for any state/local liquor law violations (criminal/civil) during the past five years. Report violations on back, then sign here. 0Minnesota Department of Public Safety Alcohol & Gambling Enforcement Division 445 Minnesota Street, 1000 St Paul, Minnesota 55101 651-201-7507 RENEWAL OF LIQUOR, WINE, CLUB OR 3.2% LICENSES No license will be approve or released until the $20 Retailer ID Card fee is received by Alcohol and Gambling Enforcement Licensee: Please verify your license information contained below. Make corrections if necessary and sign. City Clerk/County Auditor should submit this signed renewal with completed license and licensee liquor liability for the new license period. City Clerk/County Auditor are also required by M.S. 340A.404 S.3 to report any license cancellation. License Code: ONSS Issuing Authority: Monticello Licensee Name: IC Enterprises LLC Trade Name: Capitan Pancho Villa Address: 100 7th Street W Monticello, MN 55362 Business Phone: 7633140454 License Fees: Off Sale: $0.00 License Period Ending: 6/30/2021 On Sale: $3,750.00 Sunday: $200.00 Iden: 33416 By signing this renewal application, applicant certifies that there has been no change in ownership on the above named licensee. For changes in ownership, the licensee named above, or for new licensees, full applications should be used. See back of this application for further information needed to complete this renewal. Applicant's signature on this renewal confirms the following: Failure to reoort any of the following may result in civil penalties 1. Licensee confirms it has no interest whatsoever, directly or indirectly in any other liquor establishments in Minnesota. If so, give details on back of this application. 2. Licensee confirms that it has never had a liquor license rejected by any city/township/county in the state of Minnesota. If ever rejected, please give details on the back of this renewal, then sign below. 3. Licensee confirms that for the past five years it has not had a liquor license revoked for any liquor law violation (state or local). If a revocation has occurred, please give details on the back of this renewal, then sign below. 4. Licensee confirms that during the past five years it or its employees have not been cited for any civil or criminal liquor law violations. If violations have occurred, please give details on back of this renewal, then sign below. 5. Licensee confirms that during the past license year, a summons has not been issued under the Liquor Liability Law (Dram Shop) MS 340A.802. If yes, attach a copy of the summons, then sign below. 6. Licensee confirms that Workers Compensation insurance will be kept in effect during the license period.Licensee has attached a liquor liability insurance certificate that corresponds with the license period in city/county where license is issued. Licensee has attached a liquor liability insurance certificate that corresponds with the license period in city/county where license is issued. $100,000 in cash or securities or $310,000 surety bond maybe submitted in lieu of liquor liability.(3.2 liquor licenses are exempt if sales are less than $25,000 at on sale, or $50,000 at off sale). Licensee Signature DOB SSN Date (Signature certifies all above information to be correct and license has been approved by city/county.) City Clerk/Auditor Signature Date (Signature certifies that renewal of a liquor, wine or club license has been approved by the city/county as stated above.) County Attorney Signature County Board issued licenses only(Signature certifies licensee is eligible for license). Police/Sheriff Signature Date Signature certifies licensee or associates have been checked for any state/local liquor law violations (criminal/civil) during the past five years. Report violations on back, then sign here. ��- Minnesota Department of Public Safety /// Alcohol $ Gambling Enforcement Division 445 Minnesota Street, 1600 St Paul, Minnesota 551011 651-201-7507 .� RENEWAL OF LIQUOR, WINE, CLUB OR 3.2% LICENSES No license will be approve or released until the $20 Retailer ID Card fee is received by Alcohol and Gambling Enforcement Licensee: Please verify your license information contained below. Make corrections if necessary and sign. City Clerk/County Auditor should submit this signed renewal with completed license and licensee liquor liability for the new license period. City Clerk/County Auditor are also required by M.S. 340A.404 S.3 to report any license cancellation. License Code: 3.20FSL Issuing Authority: Monticello Licensee Name: Kwik Trip Inc. Trade Name: Kwik Trip #177 Address: 9855 Hart Blvd Monticello, MN 55362 Business Phone: License Fees: Off Sale: $100.00 License Period Ending: 6/30/2021 Iden: 46003 On Sale: $0.00 Sunday: $0.00 By signing this renewal application, applicant certifies that there has been no change in ownership on the above named licensee. For changes in ownership, the licensee named above, or for new licensees, full applications should be used. See back of this application for further information needed to complete this renewal. Applicant's signature on this renewal confirms the following Failure to report any of the following may result in civil penalties 1. Licensee confirms it has no interest whatsoever, directly or indirectly in any other liquor establishments in Minnesota. If so, give details on back of this application. 2. Licensee confirms that it has never had a liquor license rejected by any city/township/county in the state of Minnesota. If ever rejected, please give details on the back of this renewal, then sign below. 3. Licensee confirms that for the past five years it has not had a liquor license revoked for any liquor law violation (state or local). If a revocation has occurred, please give details on the back of this renewal, then sign below. 4. Licensee confirms that during the past five years it or its employees have not been cited for any civil or criminal liquor law violations. If violations have occurred, please give details on back of this renewal, then sign below. 5. Licensee confirms that during the past license year, a summons has not been issued under the Liquor Liability Law (Dram Shop) MS 340A.802. If yes, attach a copy of the summons, then sign below. 6. Licensee confirms that Workers Compensation insurance will be kept in effect during the license period.Licensee has attached a liquor liability insurance certificate that corresponds with the license period in city/county where license is issued. Licensee has attached a liquor liability insurance certificate that corresponds with the license period in city/county where license is issued. $100,000 in cash or securities or $310,000 surety bond may be submitted in lieu of liquor liability.(3.2 liquor licenses are exempt if sales are less than $25,000 at on sale, or $50,000 at off sale). Licensee Signature DOB SSN (Signature certifies all above information to be correct and license has been approved by city/county.) City Clerk/Auditor Signature (Signature certifies that renewal of a liquor, wine or club license has been approved by the city/county as stated above.) County Attorney Signature County Board issued licenses only(Signature certifies licensee is eligible for license). Police/Sheriff Signature Date Signature certifies licensee or associates have been checked for any state/local liquor law violations (criminal/civil) during the past five years. Report violations on back, then sign here. 9Minnesota Department of Public Safety Alcohol & Gambling Enforcement Division 445 Minnesota Street, 1600 St Paul, Minnesota 55101 651-201-7507 RENEWAL OF LIQUOR, WINE, CLUB OR 3.2% LICENSES No license will be approve or released until the $20 Retailer ID Card fee is received by Alcohol and Gambling Enforcement Licensee: Please verify your license information contained below. Make corrections if necessary and sign. City Clerk/County Auditor should submit this signed renewal with completed license and licensee liquor liability for the new license period. City Clerk/County Auditor are also required by M.S. 340A.404 S.3 to report any license cancellation. License Code: Issuing Authority: Licensee Name: Trade Name: Address: 3.2OFSL Monticello Kwik Trip Inc. Kwik Trip #345 9440 State Hwy 25 Monticello, MN 55362 Business Phone: 7632958857 License Period Ending: 6/30/2021 License Fees: Off Sale: $100.00 On Sale: $0.00 Sunday: $0.00 Iden: 29008 By signing this renewal application, applicant certifies that there has been no change in ownership on the above named licensee. For changes in ownership, the licensee named above, or for new licensees, full applications should be used. See back of this application for further Information needed to complete this renewal. Applicant's sianature on this renewal confirms the 6 llowina: Failure to renart any of the followina may result in civil penalties. 1. Licensee confirms it has no interest whatsoever, directly or indirectly in any other liquor establishments in Minnesota. If so, give details on back of this application. 2. Licensee confirms that it has never had a liquor license rejected by any city/township/county in the state of Minnesota. If ever rejected, please give details on the back of this renewal, then sign below. 3. Licensee confirms that for the past five years it has not had a liquor license revoked for any liquor law violation (state or local). If a revocation has occurred, please give details on the back of this renewal, then sign below. 4. Licensee confirms that during the past five years it or its employees have not been cited for any civil or criminal liquor law violations. If violations have occurred, please give details on back of this renewal, then sign below. 5. Licensee confirms that during the past license year, a summons has not been issued under the Liquor Liability Law (Dram Shop) MS 340A.802. If yes, attach a copy of the summons, then sign below. 6. Licensee confirms that Workers Compensation insurance will be kept in effect during the license period.Licensee has attached a liquor liability insurance certificate that corresponds with the license period in city/county where license is issued. Licensee has attached a liquor liability insurance certificate that corresponds with the license period in city/county where license is Issued. $100,000 in cash or securities or $310,000 surety bond may be submitted in lieu of liquor Itability.(3.2 liquor licenses are exempt if sales are less than $25,000 at on sale, or $50,000 at off sale). Licensee Signature DOB SSN Date (Signature certifies all above information to be correct and license has been approved by city/county.) City Clerk/Auditor Signature Date (Signature certifies that renewal of a liquor, wine or club license has been approved by the city/county as stated above.) County Attorney Signature Date County Board issued licenses only(Signature certifies licensee is eligible for license). Police/Sheriff Signature Date Signature certifies licensee or associates have been checked for any state/local liquor law violations (criminal/civil) during the past five years. Report violations on back, then sign here. �..----...,� Minnesota Department of Public Safety Alcohol &Gambling Enforcement Division 445 Minnesota Street, 1600 St Paul, Minnesota 55101 651-201-7507 "� RENEWAL OF LIQUOR, WINE, CLUB OR 3.2% LICENSES No license will be approve or released until the $20 Retailer ID Card fee is received by Alcohol and Gambling Enforcement Licensee: Please verify your license information contained below. Make corrections if necessary and sign. City Clerk/County Auditor should submit this signed renewal with completed license and licensee liquor liability for the new license period. City Clerk/County Auditor are also required by M.S. 340A.404 S.3 to report any license cancellation. License Code: Issuing Authority: Licensee Name: Trade Name: Address: 3.2OFSL Monticello Monticello 1998 LLC Cub Foods 216 7th Street Monticello, MN 55362 License Period Ending: 6/30/2021 Business Phone: 7632716800 License Fees: Off Sale: $100.00 On Sale: $0.00 Sunday: $0.00 Iden: 15558 By signing this renewal application, applicant certifies that there has been no change in ownership on the above named licensee. For changes in ownership, the licensee named above, or for new licensees, full applications should be used. See back of this application for further information needed to complete this renewal. Applicant's signature on this renewal confirms the following, Failure to report any of the followina may result in civil penalties. 1. Licensee confirms it has no interest whatsoever, directly or indirectly in any other liquor establishments in Minnesota. If so, give details on back of this application. 2. Licensee confirms that it has never had a liquor license rejected by any city/township/county in the state of Minnesota. If ever rejected, please give details on the back of this renewal, then sign below. 3. Licensee confirms that for the past five years it has not had a liquor license revoked for any liquor law violation (state or local). If a revocation has occurred, please give details on the back of this renewal, then sign below. 4. Licensee confirms that during the past five years it or its employees have not been cited for any civil or criminal liquor law violations. If violations have occurred, please give details on back of this renewal, then sign below. 5. Licensee confirms that during the past license year, a summons has not been issued under the Liquor Liability Law (Dram Shop) MS 340A.802. If yes, attach a copy of the summons, then sign below. 6. Licensee confirms that Workers Compensation Insurance will be kept in effect during the license period.Licensee has attached a liquor liability insurance certificate that corresponds with the license period in city/county where license is issued. Licensee has attached a liquor liability insurance certificate that corresponds with the license period in city/county where license is issued. $100,000 in cash or securities or $310,000 surety bond may be submitted in lieu of liquor liability.(3.2 liquor licenses are exempt if sales are less than $25,000 at on sale, or $50,000 at off sale). Licensee Signature DOB SSN (Signature certifies all above information to be correct and license has been approved by city/county.) City Clerk/Auditor Signature Date (Signature certifies that renewal of a liquor, wine or club license has been approved by the city/county as stated above.) County Attorney Signature Date County Board issued licenses only(Signature certifies licensee is eligible for license). Police/Sheriff Signature Date Signature certifies licensee or associates have been checked for any statefiocal liquor law violations (criminal/civil) during the past five years. Report violations on back, then sign here. Minnesota Department of Public Safety Alcohol $ Gambling Enforcement Division 445 Minnesota Street, 1600 (T) St Paul , Minnesota 55101 651.201-7507 RENEWAL OF LIQUOR, WINE, CLUB OR 3.2% LICENSES No license will be approve or released until the $20 Retailer ID Card fee is received by Alcohol and Gambling Enforcement Licensee: Please verify your license information contained below. Make corrections if necessary and sign. City Clerk/County Auditor should submit this signed renewal with completed license and licensee liquor liability for the new license period. City Clerk/County Auditor are also required by M.S. 340A.404 S.3 to report any license cancellation. License Code: Issuing Authority: Licensee Name: Trade Name: Address: Business Phone: License Fees: ONSS License Period Ending: 6/30/2021 Monticello Monticello Country Club Inc. Monticello Country Club 1209 Golf Course Rd Monticello, MN 55362-0575 763-295-4653 Off Sale: $0.00 On Sale: $3,750.00 Sunday: $200.00 Iden: 6356 By signing this renewal application, applicant certifies that there has been no change in ownership on the above named licensee. For changes in ownership, the licensee named above, or for new licensees, full applications should be used. See back of this application for further information needed to complete this renewal. Applicant's signature on this renewal confirms the following: Failure to report any of the following may result in civil penalties 1. Licensee confirms it has no interest whatsoever, directly or indirectly in any other liquor establishments in Minnesota. If so, give details on back of this application. 2. Licensee confirms that it has never had a liquor license rejected by any city/township/county in the state of Minnesota. If ever rejected, please give details on the back of this renewal, then sign below. 3. Licensee confirms that for the past five years it has not had a liquor license revoked for any liquor law violation (state or local). If a revocation has occurred, please give details on the back of this renewal, then sign below. 4. Licensee confirms that during the past five years it or its employees have not been cited for any civil or criminal liquor law violations. If violations have occurred, please give details on back of this renewal, then sign below. 5. Licensee confirms that during the past license year, a summons has not been issued under the Liquor Liability Law (Dram Shop) MS 340A.802. If yes, attach a copy of the summons, then sign below. 6. Licensee confirms that Workers Compensation insurance will be kept in effect during the license period.Licensee has attached a liquor liability insurance certificate that corresponds with the license period in city/county where license is issued. Licensee has attached a liquor liability insurance certificate that corresponds with the license period in city/county where license is issued. $100,000 in cash or securities or $310,000 surety bond may be submitted in lieu of liquor liability.(3.2 liquor licenses are exempt if sales are less than $25,000 at on sale, or $50,000 at off sale). Licensee Signature DOB SSN Date (Signature certifies all above information to be correct and license has been approved by city/county.) City Clerk/Auditor Signature (Signature certifies that renewal of a liquor, wine or club license has been approved by the city/county as stated above.) County Attorney Signature Date County Board issued licenses only(Signature certifies licensee is eligible for license). Police/Sheriff Signature Date Signature certifies licensee or associates have been checked for any state/local liquor law violations (criminal/civil) during the past five years. Report violations on hack, then sign here. r e Minnesota Department of Public Safety Alcohol & Gambling Enforcement Division 445 Minnesota Street, 1600 St Paul, Minnesota 55101 651-201-7507 RENEWAL OF LIQUOR, WINE, CLUB OR 3.2% LICENSES No license will be approve or released until the $20 Retailer ID Card fee is received by Alcohol and Gambling Enforcement Licensee: Please verify your license information contained below. Make corrections if necessary and sign. City Clerk/County Auditor should submit this signed renewal with completed license and licensee liquor liability for the new license period. City Clerk/County Auditor are also required by M.S. 340A.404 S.3 to report any license cancellation. License Code: 3.2OFSL Issuing Authority: Monticello Licensee Name: Northern Tier Retail LLC Trade Name: Speedway 114479 Address: 109 Oakwood Dr Monticello, MN 55362 Business Phone: 763-295-0444 License Fees: Off Sale: $100.00 License Period Ending: 6/30/2021 On Sale: $0.00 Sunday: $0.00 Iden: 15560 By signing this renewal application, applicant certifies that there has been no change In ownership on the above named licensee. For changes in ownership, the licensee named above, or for new licensees, full applications should be used. See back of this application for further Information needed to complete this renewal. o I' ant's slanature on this renewal confirms the following: Failure to report any of the following may result in civil Densities. 1. Licensee confirms it has no interest whatsoever, directly or indirectly in any other liquor establishments in Minnesota. If so, give details on back of this application. 2. Licensee confirms that it has never had a liquor license rejected by any city/township/county in the state of Minnesota. If ever rejected, please give details on the back of this renewal, then sign below. 3. Licensee confirms that for the past five years it has not had a liquor license revoked for any liquor law violation (state or local). If a revocation has occurred, please give details on the back of this renewal, then sign below. 4. Licensee confirms that during the past five years it or its employees have not been cited for any civil or criminal liquor law violations. If violations have occurred, please give details on back of this renewal, then sign below. 5. Licensee confirms that during the past license year, a summons has not been issued under the Liquor Liability Law (Dram Shop) MS 340A.802. If yes, attach a copy of the summons, then sign below. 6. Licensee confirms that Workers Compensation insurance will be kept in effect during the license period.Licensee has attached a liquor liability insurance certificate that corresponds with the license period in city/county where license is issued. Licensee has attached a liquor liability insurance certificate that corresponds with the license period in city/county where license is issued. $100,000 in cash or securities or $310,000 surety bond maybe submitted in lieu of liquor liability.(3.2 liquor licenses are exempt if sales are less than $25,000 at on sale, or $50,000 at off sale). Licensee Signature DOB SSN (Signature certifies all above information to be correct and license has been approved by city/county.) City Clerk/Auditor Signature Date (Signature certifies that renewal of a liquor, wine or club license has been approved by the city/county as stated above.) County Attorney Signature Date County Board issued licenses only(Signature certifies licensee is eligible for license). Police/Sheriff Signature Date Signature certifies licensee or associates have been checked for any state/local liquor law violations (criminal/civil) during the past five years. Report violations on back,, then sign here. f„---.. Minnesota Department of Public Safety / Alcohol & Gambling Enforcement Division [\/\ 445 Minnesota Street, 1600 St Paul, Minnesota 55101 651-201-7507 �" RENEWAL OF LIQUOR, WINE, CLUB OR 3.2% LICENSES No license will be approve or released until the $20 Retailer ID Card fee is received by Alcohol and Gambling Enforcement Licensee: Please verify your license information contained below. Make corrections if necessary and sign. City Clerk/County Auditor should submit this signed renewal with completed license and licensee liquor liability for the new license period. City Clerk/County Auditor are also required by M.S. 340A.404 S.3 to report any license cancellation. License Code: Issuing Authority: Licensee Name: Trade Name: Address: Business Phone: License Fees: ONSS License Period Ending: 6/30/2021 Monticello Northwoods Entertainment LLC Emagine Monticello 9375 Deegan Ave Monticello, MN 55362 763-295-5007 Off Sale: $0.00 On Sale: $3,750.00 Sunday: $200.00 Iden: 70890 By signing this renewal application, applicant certifies that there has been no change in ownership on the above named licensee. For changes in ownership, the licensee named above, or for new licensees, full applications should be used. See back of this application for further information needed to complete this renewal. Applicant's sianature on this renewal confirms the following: Failure to report any of the following may result in civil penalties 1. Licensee confirms it has no interest whatsoever, directly or indirectly in any other liquor establishments in Minnesota. If so, give details on back of this application. 2. Licensee confirms that it has never had a liquor license rejected by any city/township/county in the state of Minnesota. If ever rejected, please give details on the back of this renewal, then sign below. 3. Licensee confirms that for the past five years it has not had a liquor license revoked for any liquor law violation (state or local). If a revocation has occurred, please give details on the back of this renewal, then sign below. 4. Licensee confirms that during the past five years it or its employees have not been cited for any civil or criminal liquor law violations. If violations have occurred, please give details on back of this renewal, then sign below. 5. Licensee confirms that during the past license year, a summons has not been issued under the Liquor Liability Law (Dram Shop) MS 340A.802. If yes, attach a copy of the summons, then sign below. 6. Licensee confirms that Workers Compensation insurance will be kept in effect during the license period.Licensee has attached a liquor liability insurance certificate that corresponds with the license period in city/county where license is issued. Licensee has attached a liquor liability insurance certificate that corresponds with the license period in city/county where license is issued. $100,000 in cash or securities or $310,000 surety bond may be submitted in lieu of liquor liability.(3.2 liquor licenses are exempt if sales are less than $25,000 at on sale, or $50,000 at off sale). Licensee Signature DOB SSN Date (Signature certifies all above information to be correct and license has been approved by city/county.) City Clerk/Auditor Signature Date (Signature certifies that renewal of a liquor, wine or club license has been approved by the city/county as stated above.) County Attorney Signature County Board issued licenses only(Signature certifies licensee is eligible for license). Police/Sheriff Signature Date Signature certifies licensee or associates have been checked for any state/local liquor law violations (criminal/civil) during the past five years. Report violations on back, then sign here. a—., Minnesota Department of Public Safety Alcohol $ Gambling Enforcement Division 445 Minnesota Street, 1600 St Paul, Minnesota 55101 651-201-7507 _>' '" RENEWAL OF LIQUOR, WINE, CLUB OR 3.2% LICENSES No license will be approve or released until the $20 Retailer ID Card fee is received by Alcohol and Gambling Enforcement Licensee: Please verify your license information contained below. Make corrections if necessary and sign. City Clerk/County Auditor should submit this signed renewal with completed license and licensee liquor liability for the new license period. City Clerk/County Auditor are also required by M.S. 340A.404 S.3 to report any license cancellation. License Code: 3.2ONSS Issuing Authority: Monticello Licensee Name: Pauly Companies Inc. Trade Name: Bluestone Grill Address: 9351 Cedar St Monticello, MN 55362 Business Phone: 763-314-0500 License Fees: Off Sale: $0.00 License Period Ending: 6/30/2021 On Sale: $1.00 Sunday: $0.00 Iden: 33266 By signing this renewal application, applicant certifies that there has been no change in ownership on the above named licensee. For changes in ownership, the licensee named above, or for new licensees, full applications should be used. See back of this application for further information needed to complete this renewal. Applicant's signature on this renewal confirms the followincr Failure to report any of the following may result in civil penalties. 1. Licensee confirms it has no interest whatsoever, directly or indirectly in any other liquor establishments in Minnesota. If so, give details on back of this application. 2. Licensee confirms that it has never had a liquor license rejected by any city/township/county in the state of Minnesota. If ever rejected, please give details on the back of this renewal, then sign below. 3. Licensee confirms that for the past five years it has not had a liquor license revoked for any liquor law violation (state or local). If a revocation has occurred, please give details on the back of this renewal, then sign below. 4. Licensee confirms that during the past five years it or its employees have not been cited for any civil or criminal liquor law violations. If violations have occurred, please give details on back of this renewal, then sign below. 5. Licensee confirms that during the past license year, a summons has not been issued under the Liquor Liability Law (Dram Shop) MS 340A.802. If yes, attach a copy of the summons, then sign below. 6. Licensee confirms that Workers Compensation insurance will be kept in effect during the license period.Licensee has attached a liquor liability insurance certificate that corresponds with the license period in city/county where license is issued. Licensee has attached a liquor liability insurance certificate that corresponds with the license period in city/county where license is issued. $100,000 in cash or securities or $310,000 surety bond may be submitted in lieu of liquor liability.(3.2 liquor licenses are exempt if sales are less than $25,000 at on sale, or $50,000 at off sale). Licensee Signature DOB SSN Date (Signature certifies all above information to be correct and license has been approved by city/county.) City Clerk/Auditor Signature Date (Signature certifies that renewal of a liquor, wine or club license has been approved by the city/county as stated above.) County Attorney Signature County Board issued licenses only(Signature certifies licensee is eligible for license). Police/Sheriff Signature Date Signature certifies licensee or associates have been checked for any state/local liquor law violations (criminal/civil) during the past five years. Report violations on back, then sign here. Minnesota Department of Public Safety Alcohol & Gambling Enforcement Division 445 Minnesota Street, 1600 9 St Paul, Minnesota 55101 651-201-7507 RENEWAL OF LIQUOR, WINE, CLUB OR 3.2% LICENSES No license will be approve or released until the $20 Retailer ID Card fee is received by Alcohol and Gambling Enforcement Licensee: Please verify your license information contained below. Make corrections if necessary and sign. City Clerk/County Auditor should submit this signed renewal with completed license and licensee liquor liability for the new license period. City Clerk/County Auditor are also required by M.S. 340A.404 S.3 to report any license cancellation. License Code: MWNONSB Issuing Authority: Monticello Licensee Name: Pauly Companies Inc. Trade Name: Bluestone Grill Address: 9351 Cedar St Monticello, MN 55362 Business Phone: 7633140500 License Fees: Off Sale: $0.00 License Period Ending: 6/30/2021 On Sale: $1,200.00 Sunday: $200.00 Iden: 29481 By signing this renewal application, applicant certifies that there has been no change in ownership on the above named licensee. For changes in ownership, the licensee named above, or for new licensees, full applications should be used. See back of this application for further information needed to complete this renewal. Applicant's signature on this renewal confirms the following: Failure to report any of the following may result in civil penalties 1. Licensee confirms it has no interest whatsoever, directly or indirectly in any other liquor establishments in Minnesota. If so, give details on back of this application. 2. Licensee confirms that it has never had a liquor license rejected by any city/township/county in the state of Minnesota. If ever rejected, please give details on the back of this renewal, then sign below. 3. Licensee confirms that for the past five years it has not had a liquor license revoked for any liquor law violation (state or local). If a revocation has occurred, please give details on the back of this renewal, then sign below. 4. Licensee confirms that during the past five years it or its employees have not been cited for any civil or criminal liquor law violations. If violations have occurred, please give details on back of this renewal, then sign below. 5. Licensee confirms that during the past license year, a summons has not been issued under the Liquor Liability Law (Dram Shop) MS 340A.802. If yes, attach a copy of the summons, then sign below. 6. Licensee confirms that Workers Compensation insurance will be kept in effect during the license period.Licensee has attached a liquor liability insurance certificate that corresponds with the license period in city/county where license is issued. Licensee has attached a liquor liability insurance certificate that corresponds with the license period in city/county where license is issued. $100,000 in cash or securities or $310,000 surety bond may be submitted in lieu of liquor liability.(3.2 liquor licenses are exempt if sales are less than $25,000 at on sale, or $50,000 at off sale). Licensee Signature DOB S (Signature certifies all above information to be correct and license has been approved by city/county.) Dale City Clerk/Auditor Signature Date (Signature certifies that renewal of a liquor, wine or club license has been approved by the city/county as stated above.) County Attorney Signature Date County Board issued licenses only(Signature certifies licensee is eligible for license). Police/Sheriff Signature Date Signature certifies licensee or associates have been checked for any state/local liquor law violations (criminal/civil) during the past five years. Report violations on back, then sign here. Minnesota Department of Public Safety Alcohol & Gambling Enforcement Division 445 Minnesota Street, 1600 St Paul, Minnesota 55101 651-201-7507 (9—)RENEWAL OF LIQUOR, WINE, CLUB OR 3.2% LICENSES No license will be approve or released until the $20 Retailer ID Card fee is received by Alcohol and Gambling Enforcement Licensee: Please verify your license information contained below. Make corrections if necessary and sign. City Clerk/County Auditor should submit this signed renewal with completed license and licensee liquor liability for the new license period. City Clerk/County Auditor are also required by M.S. 340A.404 S.3 to report any license cancellation. License Code: ONSS License Period Ending: 6/30/2021 Iden: 18063 Issuing Authority: Monticello Licensee Name: Rancho Grande Max. Rest. Inc. #2 Trade Name: Rancho Grande Address: 615 Locus Street Monticello, MN 55362 Business Phone: 6126167648 License Fees: Off Sale: $0.00 On Sale: $3,750.00 Sunday: $200.00 By signing this renewal application, applicant certifies that there has been no change in ownership on the above named licensee. For changes in ownership, the licensee named above, or for new licensees, full applications should be used. See back of this application for further information needed to complete this renewal. Applicant's signature on this renewal confirms the following: Failure to report any of the following may result in civil penalties 1. Licensee confirms it has no interest whatsoever, directly or indirectly in any other liquor establishments in Minnesota. If so, give details on back of this application. 2. Licensee confirms that it has never had a liquor license rejected by any city/township/county in the state of Minnesota. If ever rejected, please give details on the back of this renewal, then sign below. 3. Licensee confirms that for the past five years it has not had a liquor license revoked for any liquor law violation (state or local). If a revocation has occurred, please give details on the back of this renewal, then sign below. 4. Licensee confirms that during the past five years it or its employees have not been cited for any civil or criminal liquor law violations. If violations have occurred, please give details on back of this renewal, then sign below. 5. Licensee confirms that during the past license year, a summons has not been issued under the Liquor Liability Law (Dram Shop) MS 340A.802. If yes, attach a copy of the summons, then sign below. 6. Licensee confirms that Workers Compensation insurance will be kept in effect during the license period.Licensee has attached a liquor liability insurance certificate that corresponds with the license period in city/county where license is issued. Licensee has attached a liquor liability insurance certificate that corresponds with the license period in city/county where license is issued. $100,000 in cash or securities or $310,000 surety bond may be submitted in lieu of liquor liability.(3.2 liquor licenses are exempt if sales are less than $25,000 at on sale, or $50,000 at off sale). Licensee Signature DOB SSN (Signature certifies all above information to be correct and license has been approved by city/county.) City Clerk/Auditor Signature Date (Signature certifies that renewal of a liquor, wine or club license has been approved by the city/county as stated above.) County Attorney Signature County Board issued licenses only(Signature certifies licensee is eligible for license). Date Police/Sheriff Signature Date Signature certifies licensee or associates have been checked for any state/local liquor law violations (criminal/civil) during the past five years. Report violations on back, then sign here. �— Minnesota Department of Public Safety JJJ Alcohol & Gambling Enforcement Division J a 445 Minnesota Street, 1600 t\4 St Paul, Minnesota 55101 651-201-7507 RENEWAL OF LIQUOR, WINE, CLUB OR 3.2% LICENSES No license will be approve or released until the $20 Retailer ID Card fee is received by Alcohol and Gambling Enforcement Licensee: Please verify your license information contained below. Make corrections if necessary and sign. City Clerk/County Auditor should submit this signed renewal with completed license and licensee liquor liability for the new license period. City Clerk/County Auditor are also required by M.S. 340A.404 S.3 to report any license cancellation. License Code: Issuing Authority: Licensee Name: Trade Name: Address: Business Phone: License Fees: 3.2OFSL Monticello Target Corporation Target Store T-2180 1447 E 7th Street Monticello, MN 55362 7632711100 License Period Ending: 6/30/2021 Off Sale: $100.00 On Sale: $0.00 Sunday: $0.00 Iden: 22126 By signing this renewal application, applicant certifies that there has been no change in ownership on the above named licensee. For changes in ownership, the licensee named above, or for new licensees, full applications should be used. See back of this application for further information needed to complete this renewal. Applicant's signature on this renewal confirms the following: Failure to report any of the following may result in civil penalties. 1. Licensee confirms it has no interest whatsoever, directly or indirectly in any other liquor establishments in Minnesota. If so, give details on back of this application. 2. Licensee confirms that it has never had a liquor license rejected by any city/township/county in the state of Minnesota. If ever rejected, please give details on the back of this renewal, then sign below. 3. Licensee confirms that for the past five years it has not had a liquor license revoked for any liquor law violation (state or local). If a revocation has occurred, please give details on the back of this renewal, then sign below. 4. Licensee confirms that during the past five years it or its employees have not been cited for any civil or criminal liquor law violations. If violations have occurred, please give details on back of this renewal, then sign below. 5. Licensee confirms that during the past license year, a summons has not been issued under the Liquor Liability Law (Dram Shop) MS 340A.802. If yes, attach a copy of the summons, then sign below. 6. Licensee confirms that Workers Compensation insurance will be kept in effect during the license period.Licensee has attached a liquor liability insurance certificate that corresponds with the license period in city/county where license is issued. Licensee has attached a liquor liability insurance certificate that corresponds with the license period in city/county where license is issued. $100,000 in cash or securities or $310,000 surety bond may be submitted in lieu of liquor liability.(3.2 liquor licenses are exempt if sales are less than $25,000 at on sale, or $50,000 at off sale). Licensee Signature DOB SSN Date (Signature certifies all above information to be correct and license has been approved by city/county.) City Clerk/Auditor Signature Date (Signature certifies that renewal of a liquor, wine or club license has been approved by the city/county as stated above.) County Attorney Signature County Board issued licenses only(Signature certifies licensee is eligible for license). Police/Sheriff Signature Date Signature certifies licensee or associates have been checked for any state/local liquor law violations (criminal/civil) during the past five years. Report violations on back, then sign here. �-- Minnesota Department of Public Safety a�') Alcohol & Gambling Enforcement Division 445 Minnesota Street, 1600 St Paul, Minnesota 55101 651-201-7507 RENEWAL OF LIQUOR, WINE, CLUB OR 3.2% LICENSES No license will be approve or released until the $20 Retailer ID Card fee is received by Alcohol and Gambling Enforcement Licensee: Please verify your license information contained below. Make corrections if necessary and sign. City Clerk/County Auditor should submit this signed renewal with completed license and licensee liquor liability for the new license period. City Clerk/County Auditor are also required by M.S. 340A.404 S.3 to report any license cancellation. License Code: Issuing Authority: Licensee Name: Trade Name: Address: Business Phone: License Fees: ONSS Monticello Tdcambra Foods Inc. License Period Ending: 6/30/2021 Cornerstone Cafe & Catering 154 W Broadway Monticello, MN 55362 763-350-5208 Off Sale: $0.00 On Sale: $3,750.00 Sunday: $200.00 Iden: 66818 By signing this renewal application, applicant certifies that there has been no change in ownership on the above named licensee. For changes In ownership, the licensee named above, or for new licensees, full applications should be used. See back of this application for further information needed to complete this renewal. 1. Licensee confines it has no interest whatsoever, directly or indirectly in any other liquor establishments in Minnesota. If so, give details on back of this application. 2. Licensee confirms that it has never had a liquor license rejected by any city/township/county in the state of Minnesota. If ever rejected, please give details on the back of this renewal, then sign below. 3. Licensee confines that for the past five years it has not had a liquor license revoked for any liquor law violation (state or local). If a revocation has occurred, please give details on the back of this renewal, then sign below. 4. Licensee confirms that during the past five years it or its employees have not been cited for any civil or criminal liquor law violations. If Violations have occurred, please give details on back of this renewal, then sign below. 5. Licensee confines that during the past license year, a summons has not been issued under the Liquor Liability Law (Dram Shop) MS 340A.802. If yes, attach a copy of the summons, then sign below. 6. Licensee confirms that Workers Compensation insurance will be kept in effect during the license period.Licensee has attached a liquor liability insurance certificate that corresponds with the license period in city/county where license is issued. Licensee has attached a liquor liability insurance certificate that corresponds with the license period in city/county where license is issued. $100,000 in cash or securities or $310,000 surety bond may be submitted in lieu of liquor liability.(3.2 liquor licenses are exempt If sales are less than $25,000 at on sale, or $50,000 at off sale). Licensee Signature DOB SSN Date (Signature certifies all above information to be correct and license has been approved by city/county.) City Clerk/Auditor Signature Date (Signature certifies that renewal of a liquor, wine or club license has been approved by the city/county as stated above.) County Attorney Signature County Board issued licenses only(Signature certifies licensee is eligible for license). Police/Sheriff Signature Date Signature certifies licensee or associates have been checked for any stateAocal liquor law violations (criminal/civil) during the past five years. Report violations on back, then sign here. Minnesota Department of Public Safety Alcohol & Gambling Enforcement Division 445 Minnesota Street, 1600 0 St Paul, Minnesota 55101 651-201-7507 RENEWAL OF LIQUOR, WINE, CLUB OR 3.2% LICENSES No license will be approve or released until the $20 Retailer ID Card fee is received by Alcohol and Gambling Enforcement _ Licensee: Please verify your license information contained below. Make corrections if necessary and sign. City Clerk/County Auditor should submit this signed renewal with completed license and licensee liquor liability for the new license period. City Clerk/County Auditor are also required by M.S. 340A.404 S.3 to report any license cancellation. License Code: Issuing Authority: Licensee Name: Trade Name: Address: Business Phone: License Fees: ONSS Monticello License Period Ending: 6/30/2021 Triple Shift Entertainment LLC River City Extreme 3875 School Blvd Monticello, MN 55362 763-295-3390 Off Sale: $0.00 On Sale: $3,750.00 Sunday: $200.00 Iden: 71279 By signing this renewal application, applicant certifies that there has been no change in ownership on the above named licensee. For changes in ownership, the licensee named above, or for new licensees, full applications should be used. See back of this application for further information needed to complete this renewal. Applicant's signature on this renewal confirms the following: Failure to report any of the following may result in civil penalties 1. Licensee confirms it has no interest whatsoever, directly or indirectly in any other liquor establishments in Minnesota. If so, give details on back of this application. 2. Licensee confirms that it has never had a liquor license rejected by any city/township/county in the state of Minnesota. if ever rejected, please give details on the back of this renewal, then sign below. 3. Licensee confirms that for the past five years it has not had a liquor license revoked for any liquor law violation (state or local). If a revocation has occurred, please give details on the back of this renewal, then sign below. - 4. Licensee confirms that during the past five years it or its employees have not been cited for any civil or criminal liquor law violations. If violations have occurred, please give details on back of this renewal, then sign below. 5. Licensee confirms that during the past license year, a summons has not been issued under the Liquor Liability Law (Dram Shop) MS 340A.802. If yes, attach a copy of the summons, then sign below. 6. Licensee confirms that Workers Compensation insurance will be kept in effect during the license period.Licensee has attached a liquor liability insurance certificate that corresponds with the license period in city/county where license is issued. Licensee has attached a liquor liability insurance certificate that corresponds with the license period in city/county where license is issued. $100,000 in cash or securities or $310,000 surety bond maybe submitted in lieu of liquor liability.(3.2 liquor licenses are exempt if sales are less than $25,000 at on sale, or $50,000 at off sale). Licensee Signature DOB SSN Date (Signature certifies all above information to be correct and license has been approved by city/county.) City Clerk/Auditor Signature Date (Signature certifies that renewal of a liquor, wine or club license has been approved by the city/county as stated above.) County Attorney Signature Date County Board issued licenses only(Signature certfies licensee is eligible for license). Police/Sheriff Signature Date Signature certifies licensee or associates have been checked for any state/local liquor law violations (criminal/civil) during the past five years. Report violations on back, then sign here. Minnesota Department of Public Safety Alcohol & Gambling Enforcement Division 445 Minnesota Street, 1600 St Paul, Minnesota 55101 651-201-7507 ca'—D RENEWAL OF LIQUOR, WINE, CLUB OR 3.2% LICENSES No license will be approve or released until the $20 Retailer ID Card fee is received by Alcohol and Gambling Enforcement Licensee: Please verify your license information contained below. Make corrections if necessary and sign. City Clerk/County Auditor should submit this signed renewal with completed license and licensee liquor liability for the new license period. City Clerk/County Auditor are also required by M.S. 340A.404 S.3 to report any license cancellation. License Code: ONSS Issuing Authority: Monticello Licensee Name: VFW 8731 Trade Name: Club Dorchester Address: 713 S Cedar St Monticello, MN 55362 Business Phone: 6122953792 License Fees: Off Sale: $0.00 License Period Ending: 6/30/2021 On Sale: $3,750.00 Sunday: $200.00 Iden: 1145 By signing this renewal application, applicant certifies that there has been no change in ownership on the above named licensee. For changes in ownership, the licensee named above, or for new licensees, full applications should be used. See back of this application for further information needed to complete this renewal. Applicant's sianature on this renewal confirms the following: Failure to report any of the following may result in civil penalties 1. Licensee confirms it has no interest whatsoever, directly or indirectly in any other liquor establishments in Minnesota. If so, give details on back of this application. 2. Licensee confirms that it has never had a liquor license rejected by any city/township/county in the state of Minnesota. If ever rejected, please give details on the back of this renewal, then sign below. 3. Licensee confirms that for the past five years it has not had a liquor license revoked for any liquor law violation (state or local). If a revocation has occurred, please give details on the back of this renewal, then sign below. 4. Licensee confirms that during the past five years it or its employees have not been cited for any civil or criminal liquor law violations. If violations have occurred, please give details on back of this renewal, then sign below. 5. Licensee confirms that during the past license year, a summons has not been issued under the Liquor Liability Law (Dram Shop) MS 340A.802. If yes, attach a copy of the summons, then sign below. 6. Licensee confirms that Workers Compensation insurance will be kept in effect during the license pedod.Lioensee has attached a liquor liability insurance certificate that corresponds with the license period in city/county where license is issued. Licensee has attached a liquor liability insurance certificate that corresponds with the license period in city/county where license is Issued. $100,000 In cash or securities or $310,000 surety bond maybe submitted in lieu of liquor Iiability.(3.2 liquor licenses are exempt if sales are less than $25,000 at on sale, or $50,000 at off sale). Licensee Signature DOB SSN Date (Signature certifies all above information to be correct and license has been approved by city/county.) certifies that renewal of a liquor, wine or club license has been approved by the city/county as stated above.) County Attorney Signature County Board issued licenses only(Signature certifies licensee is eligible for license). Police/Sheriff Signature Date Signature certifies licensee or associates have been checked for any statellocal liquor law violations (criminal/civil) during the past five years. Report violations on back, then sign here. Minnesota Department of Public Safety Alcohol & Gambling Enforcement Division 445 Minnesota Street, 1600 St Paul, Minnesota 55101 ce) 651-201-7507 RENEWAL OF LIQUOR, WINE, CLUB OR 3.2% LICENSES No license will be approve or released until the $20 Retailer ID Card fee is received by Alcohol and Gambling Enforcement Licensee: Please verify your license information contained below. Make corrections if necessary and sign. City Clerk/County Auditor should submit this signed renewal with completed license and licensee liquor liability for the new license period. City Clerk/County Auditor are also required by M.S. 340A.404 S.3 to report any license cancellation. License Code: 3.2OFSL Issuing Authority: Monticello Licensee Name: Walmart Inc. Trade Name: Walmart #3624 Address: 9320 Cedar Street Monticello, MN 55362 Business Phone: 7632959800 License Fees: Off Sale: $100.00 License Period Ending: 6/30/2021 On Sale: $0.00 Sunday: $0.00 Iden: 67711 By signing this renewal application, applicant certifies that there has been no change in ownership on the above named licensee. For changes in ownership, the licensee named above, or for new licensees, full applications should be used. See back of this application for further information needed to complete this renewal. Applicant's sianature on this renewal confirms the following: Failure to report any of the following may result in civil penalties 1. Licensee confirms it has no interest whatsoever, directly or indirectly in any other liquor establishments in Minnesota. If so, give details on back of this application. 2. Licensee confirms that it has never had a liquor license rejected by any city/township/county in the state of Minnesota. If ever rejected, please give details on the back of this renewal, then sign below. 3. Licensee confirms that for the past five years it has not had a liquor license revoked for any liquor law violation (state or local). If a revocation has occurred, please give details on the back of this renewal, then sign below. 4. Licensee confirms that during the past five years it or its employees have not been cited for any civil or criminal liquor law violations. If violations have occurred, please give details on back of this renewal, then sign below. 5. Licensee confirms that during the past license year, a summons has not been issued under the Liquor Liability Law (Dram Shop) MS 340A.802. If yes, attach a copy of the summons, then sign below. 6. Licensee confirms that Workers Compensation insurance will be kept in effect during the license period.Licensee has attached a liquor liability insurance certificate that corresponds with the license period in city/county where license is issued. Licensee has attached a liquor liability insurance certificate that corresponds with the license period In city/county where license is Issued. $100,000 in cash or securities or $310,000 surety bond may be submitted in lieu of liquor liability.(3.2 liquor licenses are exempt If sales are less than $25,000 at on sale, or $50,000 at off sale). Licensee Signature DOB SSN Date (Signature certifies all above information to be correct and license has been approved by city/county.) City Clerk/Auditor Signature Date (Signature certifies that renewal of a liquor, wine or club license has been approved by the city/county as stated above.) County Attorney Signature Date County Board issued licenses only(Signature certifies licensee is eligible for license). Police/Sheriff Signature Date Signature certifies licensee or associates have been checked for any stateflocal liquor law violations (criminal/civil) during the past five years. Report violations on back, then sign here. Minnesota Department of Public Safety Alcohol & Gambling Enforcement Division 445 Minnesota Street, 1600 0 St Paul, Minnesota 55101 651-201-7507 RENEWAL OF LIQUOR, WINE, CLUB OR 3.2% LICENSES No license will be approve or released until the $20 Retailer ID Card fee is received by Alcohol and Gambling Enforcement Licensee: Please verify your license information contained below. Make corrections if necessary and sign. City Clerk/County Auditor should submit this signed renewal with completed license and licensee liquor liability for the new license period. City Clerk/County Auditor are also required by M.S. 340A.404 S.3 to report any license cancellation. License Code: Issuing Authority: Licensee Name: Trade Name: Address: Business Phone: License Fees: ONSS Monticello License Period Ending: 6/30/2021 West River Restaurants Inc. Chatters Restaurant & Bar 4181 Cedar St Monticello, MN 55362 7632710070 Off Sale: $0.00 On Sale: $3,750.00 Sunday: $200.00 Iden: 22836 By signing this renewal application, applicant certifies that there has been no change in ownership on the above named licensee. For changes in ownership, the licensee named above, or for new licensees, full applications should be used. See back of this application for further information needed to complete this renewal. Applicant's signature on this renewal confirms the following, Failure to report any of the followina may result in civil Densities 1. Licensee confirms it has no interest whatsoever, directly or indirectly in any other liquor establishments in Minnesota. If so, give details on back of this application. 2. Licensee confirms that it has never had a liquor license rejected by any city/township/county in the state of Minnesota. If ever rejected, please give details on the back of this renewal, then sign below. 3. Licensee confirms that for the past five years it has not had a liquor license revoked for any liquor law violation (state or local). If a revocation has occurred, please give details on the back of this renewal, then sign below. 4. Licensee confirms that during the past five years it or its employees have not been cited for any civil or criminal liquor law violations. If violations have occurred, please give details on back of this renewal, then sign below. 5. Licensee confirms that during the past license year, a summons has not been issued under the Liquor Liability Law (Dram Shop) MS 340A.802. If yes, attach a copy of the summons, then sign below. 6. Licensee confirms that Workers Compensation insurance will be kept in effect during the license period.Licensee has attached a liquor liability insurance certificate that corresponds with the license period in city/county where license is issued. Licensee has attached a liquor liability insurance certificate that corresponds with the license period in city/county where license is issued. $100,000 In cash or securities or $310,000 surety bond may be submitted in lieu of liquor Ilabllity.(3.2 liquor licenses are exempt if sales are less than $25,000 at on sale, or $50,000 at off sale). Licensee Signature DOB SSN Date (Signature certifies all above information to be correct and license has been approved by city/county.) City Clerk/Auditor Signature Date (Signature certifies that renewal of a liquor, wine or club license has been approved by the city/county as stated above.) County Attorney Signature County Board issued licenses only(Signature certifies licensee is eligible for license). Police/Sheriff Signature Date Signature certifies licensee or associates have been checked for any state/local liquor law violations (criminal/civil) during the past five years. Report violations on back, then sign here. City Council Agenda: 05/24/2021 2E. Consideration of adopting Resolution 2021-33 rescinding Resolution 2020-36 declaring a health emergency Prepared by: Meeting Date: ❑ Regular Agenda Item City Administrator 05/24/2021 ® Consent Agenda Item Reviewed by: Approved by: N/A City Clerk ACTION REQUESTED Motion to adopt Resolution 2021-33 rescinding the City of Monticello Declaration of a Health Emergency. PREVIOUS COUNCIL ACTION March 30, 2020: City Council adopted Resolution 2020-36 ratifying the Mayoral Proclamation declaring a health emergency. REFERENCE AND BACKGROUND On March 27, 2020 former Mayor Stumpf declared a health state of emergency in the City of Monticello. The declaration was deemed necessary to provide flexibility in response to the COVID-19 pandemic. The City Council ratified the mayoral declaration 3 days later, and the City has been operating within the latitude granted by the order for the last 14 months. While COVID-19 remains a public health risk, staff believes the City can now adequately respond to the threat without the added authority of the emergency order. Adjustments to operations, service delivery, etc. no longer require immediate action and can be considered within the standard process for City Council review. As Governor Walz's State of Emergency remains in place, the City will continue to provide flexible public meeting participation as appropriate as well as honor the temporary adjustments City Council approved for certain ordinances and waiver of fees. STAFF RECOMMENDED ACTION City staff recommends rescinding the local emergency order. While COVID-19 remains a public health crisis, staff believes standard City processes are adequate to respond to the pandemic. SUPPORTING DATA A. Resolution 2021-33 B. Resolution 2020-36 CITY OF MONTICELLO WRIGHT COUNTY, MINNESOTA RESOLUTION NO. 2021-33 RESOLUTION RESCINDING RESOLUTION 2020-36 — DECLARATION OF HEALTH EMERGENCY WHEREAS, on March 30, 2020, the City Council adopted Resolution 2020-36 declaring a health emergency due to COVID-19; and WHEREAS, the City of Monticello understands that COVID-19 is still a public health crisis and should be taken seriously; and WHEREAS, the City of Monticello is able to make accommodations to enable it to conduct its affairs in a safe manner; and WHEREAS, the City of Monticello no longer needs emergency powers to operate effectively and efficiently. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Monticello, Minnesota, that Resolution 2020-36 declaring a local health emergency is hereby rescinded effective immediately. ADOPTED this 24th day of May, 2021, by the City Council of the City of Monticello, Minnesota. MONTICELLO CITY COUNCIL : ATTEST: Jennifer Schreiber, City Clerk 1 Lloyd Hilgart, Mayor CITY OF MONTICELLO WRIGHT COUNTY, MINNESOTA RESOLUTION 2020-36 RESOLUTION RATIFYING MAYORAL PROCLAMATION AND DECLARATION OF HEALTH EMERGENCY WHEREAS, the virus named "SARS-CoV-2," is a new strain of coronavirus that has not previously been identified in humans and can easily spread from person to person and which causes a disease named "coronavirus disease 2019," commonly known as "COVID-19," which is a respiratory disease that can result in serious injury or death; and WHEREAS, COVID-19 has been identified by the World Health Organization as a pandemic, and the United States Centers for Disease Control has provided guidance for individuals, healthcare professionals, and businesses to slow the spread of COVID- 19; and WHEREAS, on January 21, 2020 the first case of COVID-19 was detected in the United States; on March 6, 2020 the first case of COVID-19 was detected in the State of Minnesota; and WHEREAS, on January 31, 2020, the United States Department of Health and Human Services Secretary Alex Azar declared a public health emergency for COVID- 19, beginning on January 27, 2020; and WHEREAS, on March 13, 2020, President Donald Trump declared that the COVID-19 outbreak in the United States constitutes a National Emergency; and WHEREAS, on March 13, 2020, Governor Tim Walz declared a Peacetime State of Emergency to authorize and all necessary resources to be used in support of the COVID-19 response; and WHEREAS, on March 16, 2020 President Donald Trump issued additional guidelines that called for Americans to avoid social gatherings of more than 10 people and to limit discretionary travel; and WHEREAS, on March 16, 2020 Governor Tim Walz issued Emergency Executive Order 20-04 Providing for Temporary Closure of Bars, Restaurants, and Other Places of Public Accommodation; and WHEREAS, on March 25, 2020 Governor Tim Walz declared executive order 20- 20 "Stay at Home" for the period of March 27 — April 10, 2020 and WHEREAS, as of March 27, 2020, there are three hundred forty-six (346) known cases of COVID-19 and two (2) related death in Minnesota; and WHEREAS, as of March 27, 2020, there are five (5) known cases of COVID-19 in Wright County: and WHEREAS, as of March 27 2020 the World Health Organization Situation Report confirmed a total of 465,519 cases of COVID-19 in over 196 countries, including 21,031 deaths; and WHEREAS, the City of Monticello's staff and elected officials have the need to continue to prepare and to work diligently with local, state, and federal partners to maintain situational awareness and respond to COVID-19; and WHEREAS, additional local cases are likely to trigger a more aggressive public health response and are predicted to impact residents of Monticello and those who work in or travel through the City, including City employees; and WHEREAS, the need for social distancing, the closing of schools, bars, restaurants, and other places of public accommodation, and quarantine methods to stop the spread of COVID-19 are expected to cause significant challenges; and WHEREAS, the City Administrator and other City officials find that this situation threatens the health, safety, and welfare of the citizens of the community and will cause a significant impact on the ability of public safety personnel to address any immediate dangers to the public as a result of COVID-19; and WHEREAS, the City Administrator and other City officials find that traditional sources of financial aid, assistance and relief will not be able to compensate for the potential impact of COVID-19, and have determined that the necessary resources to respond to and recover from this pandemic may exceed those resources available within the City of Monticello, such that additional resources may be needed from other sources. NOW, THEREFORE, MAYOR BRIAN STUMPF OF THE CITY OF MONTICELLO PROCLAIMS, DECLARES, REQUESTS, AND DIRECTS AS FOLLOWS: 1. Under the authority given by Minnesota Statutes, Section 12.29, declares that a local emergency exists within the City of Monticello, effective 4:30 p.m. March 27, 2020, with all the powers and responsibilities attending thereto as provided by Minnesota Statutes, Chapter 12. 2. Under the direction and coordination of the City Administrator, directs City Staff to review ordinance and regulatory requirements, operations, civil and legal proceedings, events, and resources to determine whether the foregoing should be adjusted or suspended, and to make recommendations regarding additional emergency regulations to support the employees and residents of the City of Monticello. 3. Directs all City departments and offices to operate and support the response to this incident, under the direction and coordination of the City Administrator, including implementing new employee protocols, strategies, and processes, to ensure that public services aremaintained. 4. Directs the City's Administrator and other appropriate City staff to request and coordinate appropriate aid and resources from surrounding jurisdictions, Wright County, the State of Minnesota, and the Federal government, as needed. 5. Declares, under Minnesota Statues, Section 13D.021, that the closeness of in-person meetings of the City Council, Planning Commission, and other advisory commissions of the City of Monticello is not practical or prudent due to the COVID-19 health pandemic and the peacetime Emergency declared by Governor Walz pursuant to Minnesota Statutes, Chapter 12; therefore, from and after March 27, 2020 meetings of the City Council, Planning Commission, and other advisory commissions of the City shall be conducted by telephone or other electronic means unless social distancing of at least six feet between each person can be maintained, and when necessary, City Staff is hereby directed to take such action as may be needed to enable such meetings to occur via telephone or other electronic means pursuant to Minnesota Statutes, Section 13D.021, until such time as it is no longer impractical or imprudent for the City Council, Planning Commission, and other advisory commission to resume in-person meetings without said social distancing. 6. Requests that the City Council convene an emergency session at its earliest convenience to discuss the situation and this declaration. This emergency declaration shall continue for a period of three (3) days from its effective date of March 27, 2020, unless further extended by or with the consent of the City Council pursuant to Minnesota Statutes, Section 12.29, Subd. 1. 7. Orders that this declaration be given prompt and general publicity and that it be filed promptly by the City Clerk/Administrator. ADOPTED BY the Monticello City Council this 30th day of March, 2020. CITY OF MONTICELLO Brian Stumpf, Ma r ATTEST: Jeff O' , City Administrator City Council Agenda: 05/24/2021 2F. Consideration of approving an updated facility hours schedule for 2021 Prepared by: Meeting Date: ❑ Regular Agenda Item City Administrator 05/24/2021 ® Consent Agenda Item Reviewed by: Approved by: N/A City Clerk ACTION REQUESTED Motion to approve an updated facility hours schedule. PREVIOUS COUNCIL ACTION December 14, 2020: City Council approved city facility hours for 2021. REFERENCE AND BACKGROUND Every December City Council approves city facility business hours for the upcoming year. The approval includes standard, summer, and holiday hours for city locations. Generally, any modifications to the schedule require City Council approval; however, the 2020 emergency order provided authority for modifications to business hours as related to the COVID-19 pandemic. With the recommended rescission of the emergency order, staff requests to modify the 2021 schedule. Rather than the previously approved summer hours for the Monticello Community Center, staff suggests maintaining the hours of operation currently in place through Labor Day. The current hours are weekdays from 5:00 a.m. to 8:00 p.m. and weekends from 7:00 a.m. to 4:30 p.m. These hours are based on current staffing availability and peak usage times during the summer months. Pending adequate staffing levels, staff anticipates returning to pre -pandemic standard hours after Labor Day. STAFF RECOMMENDED ACTION City staff recommends amending the schedule to align with the community center's current hours of operation. SUPPORTING DATA A. Updated 2021 Schedule of City Facility Business Hours ciTv of Monticello 2021 SCHEDULE OF CITY FACILITY BUSINESS HOURS 2021 Standard Hours City Hall Public Works Office DMV Liquor Store MCC Monday - Thursday / Friday Sam - 4:30pm 7:00am - 3:30pm I Sam - 4:30pm I gam - 8pm / 9am - 10pm 5am - 10pm/5am - 8pm Saturday/ Summer Hours Closed Closed Sam - 12pm 9am - 10pm 7am -9pm/7am-4:30pm Sunday/ Summer Hours Closed Closed Closed 11am - 6pm 7am-8pm/7am-4:30pm 2021 Holiday Hours Holiday falls on: City Hall Public Works Office DMV Liquor Store MCC New Year's Eve Thu 12/31/2020 Standard Standard Standard Standard Standard New Year's Day Fri 1/1/2021 Closed Closed Closed 9am - 6pm 7am - 8pm Hi -Way Liquors Inventory Sun 1/17/2021 Closed Closed Closed Closed Standard Martin Luther King, Jr. Day Mon 1/18/2021 Closed Closed Standard Standard Standard Presidents Day Mon 2/15/2021 Closed Closed Standard Standard Standard Easter Sunday Sun 4/4/2021 Closed Closed Closed Closed Closed Memorial Day Mon 5/31/2021 Closed Closed Closed 9am - 6pm Closed Independence Day Sun 7/4/2021 Closed Closed Closed 9am - 6pm Closed Independence Day observed Mon 7/5/2021 Closed Closed Standard Standard Standard Labor Day Mon 9/6/2021 Closed Closed Closed 9am - 6pm Closed Columbus Day Mon 10/11/2021 Standard Standard Standard Standard Standard Veterans Day Thu 11/11/2021 Closed Closed Standard Standard Standard Thanksgiving Thu 11/25/2021 Closed Closed Closed Closed Closed Day After Thanksgiving Fri 11/26/2021 Closed Closed Standard Standard Standard Christmas Eve/Christmas Day Observed Fri 12/24/2021 Closed Closed Closed gam - 6pm Sam - 2pm Christmas Day Sat 12/25/2021 Closed Closed Closed Closed Closed New Year's Eve/New Year's Day Observed Fri 12/31/2021 Closed Closed Standard Standard Sam -8pm New Year's Day Sat 1/1/2022 Closed Closed Closed 9am - 6pm 7am - 9pm Policy: Moditications require City Council approval. Decisions to close tacilities or change hours due to inclement weather, pandemic or other reasons will be made by the city administrator after consultation with the department head and mayor. FiberNet Monticello hours are available at www.fibernetmonticello.com. 2G. Consideration of adopting Resolution No. 2021-34 opting to participate in the Wright County Economic Development Authority (EDA) Prepared by: Meeting Date: ❑ Regular Agenda Item Economic Development Manager 05/24/2021 ® Consent Agenda Item Reviewed by: Approved by: Community Development Director City Administrator ACTION REQUESTED Motion to approve Resolution No. 2021-34 authorizing opting to participate in the Wright County Economic Development Authority (EDA). REFERENCE AND BACKGROUND City Council is asked to approve Resolution No. 2021-34 authorizing the City to participate in the Wright County EDA for economic development activities. Wright County established an EDA in November 2020 primarily to allow the County to effectively pursue redevelopment opportunities of County -owned facilities. At its May 12, 2021 meeting, the City of Monticello EDA reviewed the attached factsheet outlining the Wright County EDA's mission and objectives. The factsheet indicates the County EDA will be able to partner with local cities and townships to support broader economic development efforts and specific projects as requested or needed. Occasionally, the size and overall complexity of a project requires supporting partners to help make them viable. If a city chooses to not participate in the County EDA, it cannot ask for assistance with a general effort or specific project. In the informational flyer, Wright County also indicated it does not currently intend to utilize the statutory EDA tax levy as a funding source. It has stated it will use its general property tax funding resources and seek grant opportunities to support the activities of its EDA. If the City chooses to participate in the County EDA, there are provisions in state statute that allow the City to withdraw from it in periodic time frames (5 -year review). According to the policy established by Wright County, if the County EDA chooses to levy a property tax in the future, the City retains the option to immediately withdraw participation in the County EDA prior to the final approval of the levy. STAFF RECOMMENDED ACTION Staff recommends that the City Council follow the EDA recommendation for the City to participate in the Wright County EDA for economic development activities. Wright County's EDA does not intend to levy a property tax and will mainly focus on facilitating redevelopment of County owned facilities and property. Given this scope, there should not be a conflict with the mission of the City's EDA. Instead, the City may benefit from the County EDA's broader support for local economic development efforts and specific projects which may be beneficial to the City and City EDA. Similar information was also presented to the EDA by Wright County Commissioner Darek Vetsch in late 2020. The EDA attorney also reviewed the EDA statute and found minimal potential areas of conflict between the City EDA and the County EDA. SUPPORTING DATA A. Resolution No. 2021-34 B. Letter regarding Wright County EDA formation and invitation to opt in C. Wright County EDA fact sheet CITY OF MONTICELLO WRIGHT COUNTY, MINNESOTA RESOLUTION NO. 2021-34 RESOLUTION OPTING TO PARTICIPATE IN THE WRIGHT COUNTY ECONOMIC DEVELOPMENT AUTHORITY WHEREAS, the City of Monticello is located within Wright County, Minnesota; and WHEREAS, pursuant to a resolution adopted by the Board of Commissioners of the County on November 24, 2020, the County established the Wright Count Economic Development Authority (the "EDA") in accordance with Minnesota Statutes, Sections 469.0900 through 469.1082, as amended; and WHEREAS, Section 469.1082, subdivision 5 of the EDA Act provides that the area of operation of the EDA shall include all cities and townships within the County that have adopted resolutions electing to participate in the EDA; and WHEREAS, the City Council of Monticello has determined that it is in the best interests of the City to elect to participate in the EDA; and WHEREAS, the City of Monticello may make an election to withdraw from participation in the EDA every fifth year following the adoption on the resolution electing to participate, all in accordance with the terms of Section 469.1082, subdivision 5 of the EDA Act; and WHEREAS, notwithstanding Section 469.1082, subdivision 5, if the EDA enacts and EDA levy, the EDA will notify the City of Monticello of the enactment of such levy and the City shall have the opportunity to withdraws its participation in the EDA prior to the levy going into effect; and NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Monticello, Minnesota, as follows: 1. The City of Monticello herby elects to participate in the EDA. 2. The election to participate in the EDA shall take effect on the date of adoption of this approval and may only be withdrawn in accordance with Section 469.1082, subdivision 5 of the EDA Act. ADOPTED this 24th day of May, 2021, by the City Council of the City of Monticello, Minnesota. ATTEST: Jennifer Schreiber, City Clerk MONTICELLO CITY COUNCIL m 2 Lloyd Hilgart, Mayor WRIGHT00'a 'A"h Lid COUNTY Economic Development Authority Board Members Darek Vetsch, President Christine Husom, Vice -President Mark Daleiden, Board Member Mary Wetter, Board Member Michael Koczmarek, Board Member Teri Lachermeler, Board Member Phil Kern, Board Member Lee Kelly, Executive Director 10 2nd St. NW, Room 235 Buffalo, MN 55313 Ph: (763) 682-7378 Fax: (763) 682-6178 www.co.wright.mn.us April 12, 2021 Rachel Leonard City Administrator City of Monticello 505 Walnut St Monticello, MN 55362 Dear Rachel Leonard, In November 2020, the Wright County Board established the Wright County Economic Development Authority (EDA). Under state law, county EDAs may operate only in cities and townships that have adopted resolutions electing to participate in the EDA. The attached factsheet provides information on what the Wright County EDA is, what it expects to do and not do, and what local participation means. Information is also available online: www.co.wright.mn.us/1012/Economic- Development-Authority The EDA is requesting that each city and township in Wright County elect to participate but understands that some entities may not see a need for development activities and resources in their communities. The EDA has prepared the attached sample resolution that your governing body can edit and consider for adoption. If your entity elects to opt into the FDA's area of operation, please send the fully executed resolution to the contact below. If your entity decides to opt out of the EDA's area of operation, please notify the contact below: Elizabeth Karels Wright County Project Administrator Direct: (763) 684-8604 Elizabeth.Karels@co.wright.mn.us EDA board members and staff are available to attend city council and township board meetings upon request for additional discussion. Please reach out to Elizabeth Karels to schedule. The EDA would appreciate receiving notice of all city and township participation decisions no later than June 30, 2021. Sincerely, The Wright County Economic Development Authority An Equal Opportunity Employer AfR I HT COUNTY C0NMIC DEVELOPMENT AUTHORITY What is the Wright County Economic Development Authority? The Wright County Economic Development Authority (EDA) is a local authority, a subdivision of Wright County with the primary objective of shepherding economic growth within Wright County. The EDA operates under the authority of Minnesota Statutes, Sections 469.090 through 469.1082. How was the EDA established? The formation of the EDA was recommended by an Advisory Committee which included city and township representatives. The committee met in August and October 2020 and provided a report in November 2020. In November 2020, The Wright County Board passed a resolution establishing the Wright County EDA. What will the EDA do? Facilitate and guide redevelopment of county owned properties. County EDAs have much more legal authority to pursue the repurposing of public assets than do counties themselves. The EDA will facilitate and guide the redevelopment of the current Government Center and Health & Human Services Building located in Buffalo. These two properties are anticipated to be vacated by Wright County staff at the end of 2021. Partner with local communities. The EDA will partner with local cities and townships as well as the Wright County Economic Development Partnership (WCEDP) and support their efforts to achieve specific projects and advance broader initiatives. Access state and federal resources. The EDA will seek to access state and federal resources that are available mainly to larger public development agencies. EDA Board Members & Staff Darek Vetsch, President Christine Husom, Vice -President Mark Daleiden, Board Member Ph: (763) 682-7687 Ph: (763) 682-7697 Ph: (763) 682-7686 Darek.Vetsch@co.wright.mn.us Christine.Husom@co.wright.mn.us Mark.Daleiden@co.wright.mn.us Mary Wetter, Board Member Michael Koczmarek, Board Member Teri Lachermeier, Board Member Ph: (763) 682-7696 Ph: (763) 682-7685 Ph: (763) 464-4732 Mary.Wetter@co.wright.mn.us Mike.Kaczmarek@co.wrighi.mn.us teri.lachermeier@ci.buffalo.mn.us Phil Kern, Board Member lee Kelly, Executive Director Elizabeth Karels, Project Administrator Ph: (763) 972-0565 Ph: (763) 682-7377 Ph: (763) 684-8604 pkern@delano.mn.us Lee.Kelly@co.wright.mn.us Elizabeth.karels@co.wright.mn.us What will the EDA NOT do? The EDA does not intend to enact its own levy. In establishing the EDA, the Wright County Board was clear that it has no intent for the EDA to levy its own dedicated property tax. EDA activities will be funded with Wright County resources. The EDA will be limited to economic development. Although some county EDAs also exercise powers available to housing and redevelopment authorities (HRAs), the Wright County FDA's powers are limited to economic development. The EDA does not intend to lead any development projects except for the development of county owned properties. With its focus on partnering with local communities and the WCEDP to achieve their objectives, the EDA does not expect to lead any projects other than the redevelopment of the Government Center and Health and Human Services Building. The EDA's role will be to augment the resources that other entities are bringing to advance projects throughout Wright County. What does local participation mean? Under state law, county EDAs may operate only in cities and townships that have adopted resolutions electing to participate in the EDA. Opting into the EDA If a city or township chooses to opt into the EDA's area of operation, the entity will be included in the EDA's area of operation. Opting in does not impose any obligation, financial or otherwise on the participating city or township. Opting in allows the participating city or township to take advantage of tools offered by the EDA, which may include tax increment financing (TIF), tax abatement, business loan programs and grant programs. Every five years, cities and townships having opted into the EDA may elect to withdraw, per Minnesota Statute, Section 469.1082 Subdivision 5. Opting out of the EDA If a city or township chooses to opt out of the EDA's area of operation, the EDA is not allowed to assist any development project in that community, even if requested by the city or township. Future EDA levies If the EDA ever decides to levy an EDA tax, all participating entities will have the option to withdraw from the EDA and not be subject to the EDA levy. Updated March 12, 2021 City Council Agenda: 05/24/2021 2H. Consideration of extending a lease agreement between the City of Monticello EDA and the Citv of Monticello Parks Deaartment for 349 West Broad Prepared by: Meeting Date: ❑ Regular Agenda Item PW Director/City Engineer 05/24/2021 ® Consent Agenda Item Reviewed by: Approved by: Parks Superintendent, Economic City Administrator Development Manager, Community Development Director ACTION REQUESTED Motion to authorize staff to proceed with extending the lease agreement between the City of Monticello EDA and the City of Monticello Parks Department. PREVIOUS COUNCIL ACTION December 10, 2018: Approved a 2 -year lease with an option for a 24 -month extension for 349 West Broadway to utilize the building for the Arts Initiative. REFERENCE AND BACKGROUND The Parks Department has been using the former Fred's Gas Station as a multi-purpose arts programing and storage area since September 2018. The original lease agreement was approved for two years with the option to extend the lease for two more years. The EDA approved extending the lease at their May 12, 2021 meeting as there have been no inquiries about the property within the last 23 months, and the MontiArts program has continued to grow within the city. This site has been a key central hub location for the efforts of that program. In addition to this leased space, MontiArts has been temporarily using two EDA -owned properties in Block 52 to provide more visibility for arts related projects. Currently, no leases are applicable for those sites as they are temporary installations. Budget Impact: The ongoing operation costs of this facility were estimated at $3,000. The funding is budgeted annually through the Parks Department and is expected to continue to cover costs for the extended lease term. 2. Staff Workload Impact: Minimal workload impacts to extend the lease. 3. Comprehensive Plan Impact: Continued support for MontiArts is identified in one of the Monti2040 Values outlined in the plan, "A thriving arts and culture scene that reflects the creativity of the community and supports a sense of place." City Council Agenda: 05/24/2021 STAFF RECOMMENDED ACTION City staff recommends approval to extend the lease agreement for 349 West Broadway. SUPPORTING DATA A. Lease Agreement B. EDA Staff Report 5/12/2021 LEASE AGREEMENT THIS LEASE AGREEMENT ("Lease") is made as of December LG, 2018, by and between the City of Monticello Economic Development Authority, a Minnesota public body corporate and politic ("Landlord") and the City of Monticello Parks Department ("Tenant"). 1. Premises. In consideration of the rents and covenants contained herein, and subject to the terms of this Lease, Landlord hereby leases to Tenant and Tenant hereby leases from Landlord that real property which is described on the attached Exhibit A (the "Premises"). 2. Acceptance of Premises. Tenant accepts the Premises in its present "as is" condition, but subject to the terms and conditions of this Lease. 3. Term of Lease. This Lease shall be in force from September 1, 2018 through August 31, 2020, and may be terminated by the Landlord or the Tenant with 45 days' written notice. The parties agree that the Lease may be extended by one additional period of 24 months upon mutual agreement of the parties. 4. Rent. No rent shall by payable by Tenant to Landlord. 5. Quiet Enjoyment. If Tenant complies with all terms of this Lease, Tenant may use the Premises for the term of this Lease. 6. Use of Premises. The Premises shall be used and occupied only for the purpose of a multi- purpose arts programming craft shop and storage facility, in conformity with applicable ordinances and governmental regulations. 7. Right of Entry. Landlord and Landlord's agents may enter the Premises at reasonable hours to repair or inspect the Premises and perform any work that Landlord decides is necessary. 8. Assignment and Subletting by Tenant. Tenant may not assign this Lease, sublease the Premises to any other party or permit any other party to use the Premises or any part of the Premises without the prior written consent of Landlord. Any assignment or sublease without Landlord's written consent will not be effective. Any such consent by Landlord shall not be a waiver of Landlord's rights under this Section as to any subsequent similar action. If Tenant is a corporation, company, partnership or otherwise is not a natural person, and there shall occur any change in the identity of the parties who are the owners of such entity, or who have the power to participate in the management of the affairs of such entity, then Tenant shall so notify Landlord in writing, and Landlord may terminate this Lease by reason of any such event by written notice to Tenant given at any time within sixty (60) days after receipt of the notice of change in identity from Tenant. 9. Sale of Premises by Landlord. Upon any sale of the Premises, and provided the purchaser shall assume all obligations of Landlord under this Lease, Landlord shall thereupon be entirely freed of all obligations of Landlord under this Lease arising from any act, omission or event occurring after such conveyance. Upon such sale and the transfer of Landlord's interest under this 532501v1 Lease, Tenant agrees to recognize and attorn to such transferee, and Tenant agrees upon request to execute and deliver documentation setting forth the provisions of this Section. 10. Utilities. Tenant shall timely pay for all utilities provided to the Premises during the term of this Lease. 11. Maintenance and Repair. Tenant shall keep the Premises, including the parking area and grounds, in reasonable repair during the term of this Lease and shall maintain the Premises in compliance with applicable health and safety laws, all at Tenant's sole expense, including without limitation repair or replacement of plumbing fixtures, water heater, furnace, and garage or entry doors. 12. Real Estate Taxes and Assessments. Landlord shall pay all real estate taxes, including installments of special assessments, which become payable during the term of this Lease. 13. Alterations. Tenant shall not change the heating, electrical, plumbing, ventilation or air conditioning or make any other changes of or alterations to the Premises without the prior written consent of Landlord. Any alterations made by Tenant must comply with applicable codes and ordinances. Tenant may install its usual trade fixtures provided that they do not interfere with or damage the structural, mechanical or electrical systems of the Premises. At the expiration or termination of this Lease, Tenant shall promptly remove Tenant's trade fixtures and repair at its own expense any damage to the Premises resulting from their installation or removal. 14. Surrender of Premises. Tenant shall vacate the Premises at the expiration or termination of this Lease and all alterations, additions, improvements and fixtures (other than Tenant's trade fixtures and signs) which have been made or installed by Tenant shall remain as part of the Premises and shall be the sole property of Landlord. When Tenant vacates the Premises, Tenant shall leave the Premises in as good condition as it was when the Lease started, with the exception of reasonable wear and tear. If the Premises are not so surrendered, Tenant shall indemnify Landlord against loss, liability or expense resulting from delay by Tenant in so surrendering the Premises or failure to leave the Premises in the condition required under this Lease including, but not limited to, claims made by any succeeding tenant founded on such delay. Tenant shall surrender all keys to Landlord at the time Tenant vacates the Premises. 15. Damage to Premises. If the Premises are destroyed or damaged not due to the fault of Tenant or Tenant's guests, invitees or customers, and the Premises is unfit for use as a commercial establishment, Tenant shall not be required to pay rent for the time the Premises cannot be used. If part of the Premises cannot be used, Tenant shall only pay rent for the usable part. If the Premises are damaged or destroyed and the cost of repairing the Premises would exceed 30% of their pre -casualty value (exclusive of land), then Landlord may terminate this Lease within 30 days of the casualty by written notice to Tenant and may elect not to rebuild or repair the Premises, and the rent and other obligations of Tenant under this Lease shall be prorated up to the time of the casualty. If this Lease is not terminated pursuant to this Section, then Landlord shall proceed with reasonable diligence to repair and restore the Premises. 16. Insurance. 2 532501v1 A. Tenant shall purchase, in advance, and carry in full force and affect the following insurance: (1) "All risk" property insurance covering the full replacement value of all of Tenant's leasehold improvements, trade fixtures, inventory and personal property within or about the Premises, covering damage from any cause whatsoever; and (2) Comprehensive general public liability insurance naming both Landlord and Tenant as insureds, covering all acts of Tenant, its employees, agents, representatives and guests on or about the Premises, containing a contractual liability endorsement, in a combined single limit amount of not less than $1,000,000, and written on an "occurrence" basis. B. Landlord shall purchase, in advance, and carry in full force and effect commercial property insurance for the full insurable value of the Premises. 17. Risk of Loss; Premises Liability. Landlord shall have no liability to Tenant for any claim relating to injury to or loss of life of persons, or for any damage to, theft of or other loss of property of Tenant on the Premises, by whatever cause. All personal property kept, maintained, or stored on the Premises shall be kept, stored, or maintained at the sole risk of the Tenant. Tenant shall indemnify Landlord from and against all claims of other parties arising from or relating to injury or loss of life of persons, or damage to or loss of property, to the extent occurring in or about the Premises, or arising from Tenant's negligence or intentional misconduct. The said indemnification shall include the duty to pay all reasonable attorneys' fees and costs incurred by Landlord and shall survive the termination or expiration of this Lease. 18. Waiver of Claims and Subrogation. Notwithstanding any other provision in this Lease to the contrary, Landlord and Tenant hereby release one another from any and all liability or responsibility (to the other or anyone claiming through or under them by way of subrogation or otherwise) for any loss or damage covered by the insurance required by the Lease, even if such loss or damage shall have been caused by the fault or negligence of the other party, or anyone for whom such party may be responsible. 19. Condemnation. If any part of the Premises is taken or condemned for a public or quasi - public use, or any transfer made in lieu of condemnation, and a part of the Premises remains which is suitable for the use contemplated by this Lease, this Lease shall terminate only as to the part so taken and shall continue in full force as to the remaining part. The date of termination as to a part so taken shall be the date on which the condemnor takes title. The rent payable after that date shall be adjusted so that Tenant shall pay only such portion of the rent as the value of the part remaining bears to the total value of the Premises on the date of the taking. If all of the Premises is taken or condemned, or so much is taken that the use by Tenant shall be substantially impaired, Tenant may terminate this Lease by written notice to Landlord, and all obligations of Tenant shall be prorated as of the notice of termination. All compensation awarded upon any condemnation or taking shall go to Landlord. 3 532501v1 20. Default. If Tenant shall violate any covenant made by Tenant in this Lease and shall fail to comply or begin and diligently prosecute compliance within 15 days after being sent written notice of such violation by Landlord, then Landlord may, at Landlord's option, terminate this Lease by giving Tenant a written notice of termination, and in such event Tenant shall immediately vacate and surrender the Premises. A termination of this Lease by Landlord as a result of a default by Tenant shall not, however, extinguish the liability of Tenant for all rents and covenants provided for in this Lease for the balance of the term of this Lease. After any such termination, Tenant shall pay to Landlord on demand all expenses incurred by Landlord in performing any of Tenant's obligations under this Lease, re-entering or terminating the Lease, reletting the Premises, collecting sums due and payable by Tenant, and the expense of placing and keeping the Premises in good order and repair. 21. Heirs and Assigns. The terms of this Lease apply to Tenant and Landlord, and also to any heirs, legal representatives, successors and assigns of Tenant or Landlord. 22. Notices. All notices, demands and requests by either party to the other shall be in writing and shall be deemed given when sent by United States Certified Mail, postage prepaid (a) if for Tenant, addressed to Tenant at the address of the Premises, or such other place as Tenant may from time to time designate by written notice to Landlord; or (b) If for Landlord, addressed to Landlord at such place as Landlord may from time to time designate by written notice to Tenant. Notices shall also be deemed given if and when delivered to the other party in person. 23. Environmental Requirements. Tenant shall comply with all laws, governmental standards and regulations applicable to Tenant or the Premises in respect to occupational health and safety, hazardous waste and substances and environmental matters. Tenant shall promptly notify Landlord of its receipt of any notice of a violation of any such law, standard or regulation. Tenant agrees to indemnify and hold Landlord harmless from all loss, costs, damage, claim and expense incurred by Landlord on account of Tenant's failure to perform the obligations of this provision. The obligations of Tenant under this provision shall survive the expiration or termination of this Lease as to any such loss, cost, damage, claim and expense attributable to or arising out of activities or misfeasance of Tenant during the term of this Lease or its extension or renewal. 24. Landlord's Disclaimer of Warranty. Landlord disclaims any warranty that the Premises are suitable for the Tenant's use. 25. Relationship of Landlord and Tenant. The Lease does not create the relationship of principal and agent or of partnership or of joint venture or of any association between Landlord and Tenant, the sole relationships between the parties hereto being that of Landlord and Tenant under this Lease. 26. Waiver. No waiver of Landlord's remedies upon the occurrence of an Event of Default shall be implied from any omission by Landlord to take any action on account of such Event of Default, and no express waiver shall affect any Event of Default other than the Event of Default specified in the express waiver and such an express waiver shall be effective only for the time and 4 5325010 to the extent expressly stated. One or more waivers by Landlord shall not then be construed as a waiver of a subsequent Event of Default. 27. Choice of Law. The laws of Minnesota shall govern the validity, performance and enforcement of this Lease. 28. Time. Time is of the essence in the performance of all obligations under this Lease. [Remainder of this page is intentionally left blank.] 5 532501v1 IN WITNESS WHEREOF, the parties hereto have executed this Lease in the manner sufficient to bind them as of the day and year first above written. LANDLORD CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY BJIV4 Its: President�) TENANT CITY OF ONTICELLO PARKS DEPARTMENT By: Its: S-1 532501v1 MNI MN325-31 EXHIBIT A PREMISES The South V2 of Lots 1, 2, and 3, in Block 50, Townsite of Monticello, according to the plat on file and of record in the office of the Register of Deeds in and for Wright County, Minnesota; Said South V2 of Lots 1, 2, and 3, Block 50, can also be described as follows: Beginning at the mid -point on the common line between Lots 3 and 4, in said Block; thence Southerly along said common line 82.5 feet to the Southerly line of said Block (being the Southeast corner of said Lot 3); thence Westerly along the Southerly line of Lots 3, 2 and 1 for a distance of 99 feet to the Southwest corner of Lot 1; thence Northerly along the Westerly line of Lot 1 for a distance of 82.5 feet; thence straight Easterly 99 feet to the point of beginning and there terminating. Subject to existing easements, restrictions and reservations of record, if any. A-1 532501vl MNI MN325-31 EDA: 05/12/21 4c. Consideration of Authorizing Staff to proceed with documentation to extend Lease Agreement between the City of Monticello Parks Department and the City of Monticello EDA for 349 West Broadway (JT) A. REFERENCE AND BACKGROUND: This item is to ask the EDA to consider authorizing staff to proceed with documentation steps extending the existing Lease Agreement between the City of Monticello Parks Department and the City of Monticello EDA for property located at 349 West Broadway. The Parks Department has been using the former Fred's Gas Station as a multi-purpose arts programing craft shop and storage area since September 2018. The original lease agreement was approved for two years with the option to extend the lease for two more years. The lease is attached to the staff report. There have been no other inquiries about the property in the past 32 months. The Parks Department has been able to use the facility for arts projects and as a gathering place for artistic themed activities and expression in that time. No provisions in the Lease Agreement are proposed to be changed with the extension. As a reminder, the Parks Department is responsible for all operating and maintenance costs at the property as spelled out in the lease. These include building and system maintenance and repair costs, all utility expenses, i.e. water, sewer, garbage, heat, electrical and internet. Further, the EDA will note that item #13 of the Lease Agreement provides for EDA approval on other improvements to the building on the part of the lessee, such as exterior alterations or major repairs in the interior of the building and its systems. Storage is not allowed in the CCD zone without a CUP. Outdoor Sales & Display is a permitted accessory use subject to the specific requirements of the ordinance. Since the original term of the lease has already passed, the extension time frame would an additional 16 months, through August 31, 2022. Since late fall of 2020, the Parks Department/MontiArts has also been using two more EDA -owned properties in Block 52 on a temporary basis to provide more visibility for arts related projects. At this time, no leases are applicable for those sites as they are temporary installations without active use. A1. STAFF IMPACT: The impact of extending the lease is modest. In-house staff have been involved in the lease extension discussion and no additional staff are required to complete this task. A2. BUDGET IMPACT: The expenses related to extending the lease agreement are minimal and are budgeted in the EDA General fund. B. ALTERNATIVE ACTIONS: EDA: 05/12/21 1. Motion to authorize staff to prepare the Lease Agreement addendum between the Parks Department and the EDA for property located at 349 West Broadway extending the term for 16 months and/or a resolution for same and presenting to the EDA for consideration at a future meeting. 2. Motion to deny authorizing staff to prepare the Lease Agreement addendum between the Parks Department and the EDA for property located at 349 West Broadway extending the term for 16 months and/or a resolution for same and presenting to the EDA for consideration at a future meeting. 3. Motion to table consideration of extending the Lease Agreement between the Parks Department and the EDA for further research and/or discussion. C���e���:TX�L�I► i► I�►I Z��[�I►A Staff recommends Alternative 1. The Parks Department is using the former vacant gas station in a creative manner for arts related activities and projects. There have not been any other private sector inquiries regarding the building since the Parks Department (Monti Arts programming) began operating at the property in September 2018. D. SUPPORTING DATA: a. Lease Agreement b. EDA Staff Report 08/08/18 2 City Council Agenda: 05/24/2021 21. Consideration of approving closure of a portion of Hart Boulevard from 7:00 a.m. — 1:00 p.m. on Saturday, June 12, 2021 Prepared by: Meeting Date: ❑ Regular Agenda Item Community Development Director 05/24/2021 ® Consent Agenda Item Reviewed by: Approved by: Wright County Sheriff's Office, MCC City Administrator Programs & Operations Manager, Public Works Director/City Engineer ACTION REQUESTED Motion to approve closure of a portion of Hart Boulevard from 7:00 a.m. to 1:00 p.m. on Saturday June 12, 2021 for Walk & Roll activities. REFERENCE AND BACKGROUND Walk & Roll 2021 is occurring on Saturday, June 12, 2021. In conjunction with the event, Council is asked to authorize the closure of Hart Boulevard from just east of the Mississippi Shores entrance to the Wastewater Treatment Plant at the intersection with CSAH 75/Broadway. The 2021 Walk & Roll event route begins and ends at the Monticello Middle School. Closure of the street to through traffic allows resident traffic into the area but limits other vehicular traffic during the event. Pathway partner locations and other activities are planned in this portion of Hart Boulevard during the event. Through traffic is typically limited due to the existing street configurations in the area. Closures will be coordinated with the Public Works Department and Wright County Sheriff's Office. Residents in and along this area have also been notified of the closure to through traffic. 1. Budget Impact: None. 2. Staff Workload Impact: Streets/Parks Department assistance prior to the event for signing and barriers required for the closure. 3. Comprehensive Plan Impact: This Walk & Roll event request supports several Monticello 2040 Value statements, including: • Celebrating Monticello's parks and pathways • Embracing the Mississippi River • A healthy community focusing on wellness • An inclusive community welcoming all City Council Agenda: 05/24/2021 STAFF RECOMMENDED ACTION City staff recommends approval of the limited closure of Hart Boulevard as noted. SUPPORTING DATA A. Aerial Image B. 2021 Walk & Roll Map '14 iF 75 IN RUUTE c A Check in at the Chamber Booth in the Middle School Parking Lot to obtain your pathport. Then visit the pathway partner locations along the route as shown to get your pathport stamped. Finish the route back in the middle school parking lot and have your pathport validated at the MCC booth. You must have a minimum of 20 stamps in your pathport to enter. Once validated, you may enter your name into the drawing to win a brand new bicycle! The bike drawing will be held on Facebook Live at 6:30 p.m. at MontiArts (located on West Broadway) during their Open Mic Night! Tune in to watch online or visit MontiArts on Broadway to watch live in person! The winners will have the opportunity to claim their new bike at the Farmers Market on Thursday, June 17 from 3:30-7:00 p.m. C41 001 SATURDAY . JUNE 12 9AM-12 PM t 1 1W RIVE J# r� BIKE DRAWING f LIVE 6:30 PM MontiArts FARMERS MARKET ARM WTN*M Visit ft Fri I WlA& y Wrsdm�, Jac 17 from 3:30 - 7:00 �n� to cUin 4ovr prise! City Council Agenda: 05/24/2021 2J. Consideration to approve a temporary waiver of Construction Activities Noise regulations, City Code 130.09(3) for Hoffman Construction, Inc for the 1-94 Expansion Project. Prepared by: Meeting Date: ® Regular Agenda Item Community Development Director 05/24/2021 ❑ Consent Agenda Item Reviewed by: Approved by: Project Engineer, City Engineer/Public City Administrator Works Director, City Clerk ACTION REQUESTED Approve a temporary waiver of Construction Activities Noise regulations, City Code 130.096 and 130.09.C(3), to permit concrete crushing/reclamation activity 24 hours/day, Monday through Saturday through September 1, 2021 along the 1-94 ROW within city limits unless a significant number of complaints are received during construction. Approval is subject to written notification to surrounding property owners. REFERENCE AND BACKGROUND Hoffman Construction, a contractor assigned to the 1-94 Expansion project, has requested consideration of a waiver of noise regulations and work hours for the 1-94 Monticello to Clearwater expansion project. The supplied narrative requests waiver for continuous day and night concrete crushing operations Monday through Saturday until September. Per the aerials provided by the contractor, the reclamation work is at this time focused on the west -bound lanes. A portion of the proposed construction area is directly adjacent to residential property. To address resident concerns, Hoffman has indicated that they will provide written notice of the activity and a direct contact for resident concerns. A draft of the letter is provided as supporting data. At the time of this report, Hoffman had not provided decibel level/comparable sound information. Staff has requested that Hoffman representatives be prepared to discuss this item with the Council, along with an alternative schedule proposal. Staff also plans to request that crushing/reclamation be limited at night within the areas with residential properties adjacent to the 1-94 ROW that currently aren't protected by a sound wall. Council has previously considered and approved similar construction activity adjustments for public improvement projects. These have included nighttime construction activities. Budget Impact: None. II. Staff Workload Impact: Limited to review of request and preparation of report. City Council Agenda: 05/24/2021 III. Comprehensive Plan Impact: Not directly applicable. STAFF RECOMMENDED ACTION City staff recommends approval of the waiver. Staff's recommendation considers both the impact to adjacent residential properties and completion of the public improvement project in a shorter amount of time, limiting overall construction impact. SUPPORTING DATA A. Aerial Site Image/Project Area B. Request Narrative C. Draft Letter to Property Owners D. City Code 130.09B and C(3) +� 3 CD f mm a Daftc r. AveA A� j6 A mm - =► a r A r i .0 LU . !, 0 _ �Qy t _ - • fir- ': - �- _ �' � � "�: f ' , ' I`.r. •'] - _-=—=:;:5[4��rriesala" t - f r � ..., -�. � �. ;-`� � + •...ltd _-----N- ti - } � { . +� `r � _ � ,. ...cry • - , �` � � ...� JF st r .. _•= f f i 9H :lVrall! go _ r.. • ,s:� ►� s �_ •ISO oll ?y . Z" w (13 k r3 ; f � � f � �• � 1 III! •X U Jr— -� HOFFMAN CONSTRUCTION CO. 123 CTH A Black River Falls, WI 54615 Phone (715) 284-2512 Fax (715) 284-9698 www.hoffmanconstructionco.com May 18, 2021 City Administrator 505 Walnut Street Monticello, MN 55362 Night Operations State Project No. 8680-173 1-94 Monticello to Clearwater Wright County City Administrator, Hoffman Construction Co. is requesting to work night hours on the 1-94 Monticello to Clearwater Design -Build Project. Due to the large amount of material that needs to be processed and the overall scope of the project, both day and night work is required to meet project deadlines. Our work will consist of crushing the existing pavement and producing recycled base material to be used within the project. Our typical crushing operation will be continuous day and night work beginning Mondays at 6:00am until Saturday afternoon. To mitigate the noise, HCC will point equipment away from the Right of Way and keep the crusher on the existing grade to centralize the equipment within the project. All equipment will be equipped with OSHA approved ambient backup alarms and we will keep our operation congregated to reduce the amount of area that we are causing noise. Our track crushers also have multiple water tanks and spray nozzles to minimize dust control while in motion. If the spray nozzles are not sufficient, we will water the recycle pile prior to crushing to better improve dust control. In addition to this letter, a notice will be sent to the homes and businesses within 500 LF of our proposed working zone, explaining the times and dates of the crushing operation. The expected duration of night construction is June Vt — September 19th, 2021. Each supervisor that will be working the night shift will complete the "MnDOT Noise Mitigation for Night Construction". Jason Ivers will be named the Night contact: (715) 533-2331. In the event that the night contact changes, the new supervisors name, contact information, and a copy of their certification will be forwarded to MnDOT prior to night operations taking place. Do not hesitate to contact HCC representatives with any questions or concerns. Respectfully submitted, Hoffman Construction Company Hoffman Construction Company Is An Equal Opportunity Employer. HOFFMAN CONSTRUCTION CO. 111115 123 CTH A Black River Falls, WI 54615 www.hoffmanconstructionco.com 5/20/2021 1-94 Resident/ Business Monticello to Clearwater Project Night Operations State Project No.8680-173 Wright County To whom it may concern, Hoffman Construction Company (HCC) plans to work night hours on the 1-94 Monticello to Clearwater Construction Project. It was determined that night work is required due to the scope of the project. The majority of our night work will include crushing recycle material generated from within the project. Our typical crushing operation will be continuous day and night work beginning Mondays at 6:00am until Saturday afternoon. To mitigate the noise, HCC will point equipment away from the Right of Way and keep the crusher on the existing grade to centralize the equipment within the project. All equipment will be equipped with OSHA approved ambient backup alarms and we will keep our operation congregated to reduce the amount of area that we are causing noise. The expected duration of night construction is June 1st — September 19th, 2021. The crushing operation with be a slow-moving group of equipment, crushing up the existing concrete and asphalt along the west -bound roadway. HCC will have a designated night supervisor certified with the "MnDOT Noise Mitigation for Night Construction" training. The night supervisor will be on site at all times and ensure any issues related to Night Construction are immediately addressed. Thank you for your cooperation, Hoffman Construction Company Hoffman Construction Company Is An Equal Opportunity Employer. 5/7/2021 § 130.09 NOISE. https://export.amlegal.com/api/export-requests/6ab3dcf1-da7d-47ee-a1 b0-d8d59d6a0782/download/ (A) Purpose. It is recognized that loud, unpleasant, raucous, or prolonged noise has a harmful, debilitating, and detrimental effect upon human beings, adversely affecting their mental and physical health, safety, and well being. Loud, unpleasant, raucous, or prolonged noise is hereby declared to be a public nuisance. In an endeavor to provide for the mental and physical health, safety, and well being and for peaceful repose of the citizens and neighborhoods of the city, it is hereby declared to be in the public interest that loud, unpleasant, raucous, and unnecessary or prolonged noise be abated. (B) Prohibited noise. The following are declared to be nuisances affecting public health, safety, peace, or welfare: (1) Any distinctly and loudly audible noise that unreasonably annoys, disturbs, injures, or endangers the comfort, repose, health, peace, safety, or welfare of any person, or precludes his or her enjoyment of property, or affects his or her property's value in such a manner as to be plainly audible at the boundary of the real property, building, structure, or residence from which the noise originates, or at a distance of 50 feet from the source of the noise. (This general prohibition is not limited by any specific restrictions provided in this section). PLAINLY AUDIBLE is defined as sound that can be detected by a person using their unaided hearing faculties; (2) All obnoxious noises, motor vehicle or otherwise, in violation of Minn. Rules. Ch. 7030, as it may be amended from time to time, are hereby incorporated into this section by reference; (3) The use of any vehicle so out of repair or so loaded as to create loud and unnecessary grating, grinding, rattling, or other noise; (4) The discharging of the exhaust or permitting the discharge of the exhaust of any stationary internal combustion engine, motor boat, motor vehicle, motorcycle, all terrain vehicle (ATV), snowmobile, or any recreational device, except through a muffler or other device that effectively prevents loud or explosive noises therefrom and complies with all applicable state laws and regulations; (5) Any loud or excessive noise in the loading, unloading, or unpacking of any vehicle; and (6) The use or operation, or permitting the use or operation, of any radio receiving set, television set, musical instrument, music device, paging system, machine, or other device for producing or reproduction of sound in a distinctly and loudly manner so as to disturb the peace, quiet, and comfort of any person nearby. (C) Hourly restriction of certain operations. (1) Domestic power equipment. No person shall operate a power lawn mower, power hedge clipper, chain saw, mulcher, garden tiller, edger, drill, or other similar domestic power equipment, except between the hours of 7:00 a.m. and 10:00 p.m. Snow removal equipment is exempt from this provision. (2) Refuse hauling. No person shall collect or remove garbage or refuse in any residential district, except between the hours of 6:00 a.m. and 10:00 p.m. on any weekday or between the hours of 9:00 a.m. and 9:00 p.m. on any weekend or holiday. (3) Construction activities. No person shall engage in or permit construction activities involving the use of any kind of electric, diesel, or gas -powered machine or other power equipment, except between the hours of 7:00 a.m. and 10:00 p.m. (4) Radios, music devices, paging systems, and the like. The operation of any device referred to in division (13)(6) above between the hours of 10:00 p.m. and 7:00 a.m. in a manner so as to be plainly audible at the property line of the structure or building in which it is https://export.amIegal.com/api/export-requests/6ab3dcfl-da7d-47ee-a1 b0-d8d59d6a0782/download/ 1/2 5/7/2021 https://export.amlegal.com/api/export-requests/6ab3dcf1-da7d-47ee-a1 b0-d8d59d6a0782/download/ located, or at a distance of 50 feet if the source is located outside a structure or building shall be prima facie evidence of a violation of this section. (D) Noise impact statements. The City Council may require any person applying for a change in zoning classification or a permit or license for any structure, operation, process, installation, alteration, or project that may be considered a potential noise source to submit a noise impact statement on a form prescribed by the Council. The Council shall evaluate each statement and take its evaluation into account in approving or disapproving the license or permit applied for or the zoning changes requested. (E) Enforcement. A peace officer may order all persons present in any group or gathering from which such noise emanates or other than the owners or tenants of a dwelling unit to immediately disperse from the party in lieu of being charged under this section. Refusal to disperse is a violation of the section. (F) Street noise. No person between the hours of 7:00 p.m. and 7:00 a.m. shall operate a radio, stereo, tape player, or any other mechanical device other than an automobile engine on the highways, streets, parking lots, alleys, sidewalks, or other public property within the city which is audible at a distance of 25 feet. (G) Engine brakes and compression brakes unlawful. It shall be unlawful within the city for the driver of any vehicle to use or operate or cause to be used or operated any engine brake, compression brake or mechanical exhaust device designed to aid in the braking or deceleration of any vehicle which results in the excessive, loud, unusual, or explosive noise from such vehicle. (Prior Code, § 6-1-10) (Ord. 745, passed 8-10-2020) Penalty, see § 130.99 https://export.amIegal.com/api/export-requests/6ab3dcfl-da7d-47ee-a1 b0-d8d59d6a0782/download/ 2/2 City Council Agenda: 05/24/2021 2K. Consideration of authorizing the purchase of two -post vehicle lift from Mohawk Lifts for a total of $17,036.36. Prepared by: Meeting Date: ❑ Regular Agenda Item PW Director/City Engineer 05/24/2021 ® Consent Agenda Item Reviewed by: Approved by: Mechanic, Finance Director City Administrator ACTION REQUESTED Consideration of authorizing the purchase of a two -post vehicle lift from Mohawk Lifts for a total cost of $17,036.36. REFERENCE AND BACKGROUND The Public Works Department currently has two vehicle lifts. One is an in -ground two post lift that can lift 50,000 pounds, which is large enough for the city's fleet except for some of the fire trucks. The other hoist is an above ground two -post lift that is rated for 9000 lbs. This second lift is too small to lift anything larger than a % ton vehicle. There are currently 12 vehicles in the city's fleet that exceed this limit. Staff recommends authorizing replacing the smaller lift to provide more versatility in operations, allowing other equipment to be worked on while a larger project may have a lift tied up waiting for parts, etc. The requested purchase will also allow staff to leave the larger in - ground hoist set-up primarily for the large dump trucks, utilizing the new lift for all the other equipment. If the purchase is approved, the existing lift would be moved to the parks department facility where it would be used primarily for repairing mowers and utility vehicles. I. Budget Impact: The 2021 budget includes $40,880 for building and systems repair and maintenance in the shop and garage budget which would be utilized for this purchase. II. Staff Workload Impact: Improve efficiencies by eliminating the need to convert the in -ground lift from the set-up required for large dump trucks to smaller 1 -ton and over vehicles. STAFF RECOMMENDED ACTION City staff recommends approval to purchase a two -post vehicle lift from Mohawk lifts for a total cost of $17,036,36. SUPPORTING DATA • Quotes dj== MOHAWK urTS "America's Best Lift Investment" VENDOR: MOHAWK RESOURCES LTD 65 Vrooman Ave, PO Box 110 Amsterdam, NY 12010 518-842-1431 or 800-833-2006 Contact: Matt Barthel BUYER: City of Monticello 909 Golf Course Rd Monticello MN 55362 Page 2 of 2 QUOTE Page 1 of 2 QUOTE NO: QUOTE DATE: 4/27/21 EXPIRES IN 30 DAYS For purchase using Sourcewell (NJPA) Contract #013020 -MRL 04/14/2020-04/13/2024 SHIPPING METHOD SHIPPING TERMS LEADTIME PAYMENTTERMS Best Way FOB Destination, Freight Prepaid xx Days ARO Net 30 ITEM # DESCRIPTION QTY UNIT PRICE LINE TOTAL 016-000-002 TP-16-3SA-16,0001b Cap 2 -Post 3 stage -arms 1 $15874.04 $15874.04 601-440-017 Weight Indicating Pressure Gauge (LMF-12, TP -16, TP -18, ML220) 4 Diameter *optional* 1 $162.32 $162.32 NOTES: SUBTOTAL Freight Installation Sales Tax (If Applicable) TOTAL $16036.36 $1000.00 $17036.36 This is a quotation for the above named equipment subject to the terms and conditions on the following page. THANK YOU FOR YOUR BUSINESS! Page 2 of 2 TERMS AND CONDITIONS OF THE SALE This order is subject to the general terms and conditions and warranty terms found at www.govlifts.com/sourcewell and www.mohawklifts.com/warranty. DELIVERY AND INSTALLATION ➢ A fork truck must be supplied by the customer to unload the equipment from the freight carrier at time of delivery and for installation of the lift. If not available, please inquire for other options. ➢ The customer is responsible for inspecting all items at the time of delivery and before signing the delivery receipt, freight bill, or bill of lading. Should the customer determine at the time of delivery that any items are damaged or missing, the customer must note the item, discrepancy, or condition on the delivery receipt, freight bill, or bill of lading. ➢ Mohawk is not responsible for missing or damaged items when the customer has signed they are in good condition. If any damage to the lift or missing parts or pieces is noted by the installer at the time of installation, it will be the customer's financial responsibility to replace the damaged or missing parts. ➢ The quoted installation price is for standard installation and does not include any unforeseen circumstances such as plumbing, electrical, in -ground hot water heat, rebar, steel structures, drains, or drain slopes in the existing floor. ➢ The quoted installation price does not include electrical hook-up or any concrete work that may be required. Electrical and concrete work must be performed prior to the scheduled installation date. ➢ The quoted installation price is subject to change if the lift is unable to be installed within 30 days after receipt, if the lift is not in new condition, or if shop conditions (lack of adequate concrete, no electrical service, etc) prevent scheduled installation and requires additional return trips. ➢ Any and all permits, brokerage fees, duties, and sales tax are the responsibility of the customer. Signature: Name (printed): Acknowledged and Accepted by: Date: Title: Phone: Email: BENCO EQUIPMENT QUOTE AUTOMOTIVE & INDUSTRIAL ST CLOUD, MN 320-267-6648 FARGO, ND 701-298-8221 SERVICE EQUIPMENT BISMARCK, ND 701-221-4217 SHAKOPEE, MN 952-233-1490 +♦ www.bencoequipment.com TOLL FREE: 888-799-8083 FAX: 952-233-1481 QUOTE: DATE: 5/12/2021 CONTACT PERSON: PO# CUSTOMER: Matt Barthel ADDRESS: City of Monticello CITY. Monticello I STATE: m ZIP CODE: PHONE: 763-370-3438 CELL# FAX# E-MAIL ADDRESS Matt.Barthel@ci.monticello.mn.us AREA CODE TELEPHONE NUMBER ITEM # QTY DESCRIPTION UNIT PRICE LINE TOTAL Spol6cargo 1 Rotary 2 post 16k $ 15,399.00 $ 15,399.00 1 Incoming Freight $ 890.00 $ 890.00 1 oil $ 65.00 $ 65.00 1 Install $ 950.00 $ 950.00 1 mileage $ 50.00 $ 50.00 1 shop supplies $ 20.00 $ 20.00 $ ***Quote does not include applicable state & local taxes**** SHOP SUPPLIES: MILEAGE: FREIGHT (Estimated): LABOR TOTAL: $ CUSTOMER SIGNATURE DATE RENTAL: $ - SUBTOTAL: $ 17,374.00 TAX CITY & STATE: BENCO REPRESENTATIVE DATE TOTAL DUE: $ 17,374.00 THIS QUOTE IS GOOD FOR 30 DAYS FROM DATE CUSTOMER SIGNS ABOVE. BENCO IS NOT RESPONSIBLE FOR CONNECTING TO ELECTRICAL, A CERTIFIED ELECTRICIAN MUST DO. LUBE •TECH® Accelerating Performance Sold To Name Address CITY OF MONTICELLO 505 WALNUT STREET MONTICELLO MN 55362 Description of Work: Lubetech ESI TO: Estimate Date: 5/13/2021 Estimate# 9738 CITY OF MONTICELLO 505 WALNUT STREET MONTICELLO MN 55362 -Disassemble and package to skid existing above ground rotary lift. -Replace above lift with SPO16. -Customer to provide use of on-site crane and forklift. ELECTRICAL: -to be com feted by other. Item Description Qty Price Total 900005 SP016 - 16K lift RED 1 17,323.06 17,323.06 900375 SERVICE / REPAIR LABOR 22 95 2,090.00 900374 TRUCK CHARGE / MILEAGE 2 125 250.00 105614 LT ENDURANCE ATF MD -3 - 5GAPA 1 14.597 14.60 900319 SCISSOR LIFT CHARGE - IA 1 175 175.00 This proposal may be withdrawn if not accepted within 15 days. TOTAL 19,852.66 Additional work performed outside of the scope of work and the description above will be subject to additional charges. • All work to be performed during normal working hours. If requested to work overtime and/or on weekends/holidays, MAY BE SUBJECT TO TAX additional charges may apply. AND FREIGHT • Area to be free and clear of all obstructions; delays caused by others will be subject to additional charges. • Sales tax will be applied unless a Tax Exempt form is on file at Lube Tech. ACCEPTANCE OF PROPOSAL: The above prices, specifications and conditions are satisfactory and are hereby accepted. You are authorized to do the work as specified. Payment will be made as outlined above. Authorized Lube Tech Signature Title Date Signature Title Date City Council Agenda: 05/24/2021 2L. Consideration of authorizing the purchase of a VariTech Anti -Icing system from Bert's Truck and Equipment for a total of $26,369 and declaring the 1982 Ford Water Truck as surplus. Prepared by: Meeting Date: ❑ Regular Agenda Item PW Director/ City Engineer 05/24/2021 ® Consent Agenda Item Reviewed by: Approved by: Street Superintendent, Utilities City Administrator Superintendent, Mechanic, Finance Director ACTION REQUESTED Motion to authorize the purchase of a VariTech Anti -Icing system from Bert's Truck and Equipment for a total of $26,369 and declare the 1982 Ford Water Truck as surplus. REFERENCE AND BACKGROUND The city currently has an anti -icing tank that was built in-house around 2012. It is still functional but is starting to have leaks, pump issues, etc. Staff proposes adding an additional anti -icing tank that would provide more reliability and allow more flexibility on when to start the anti - icing process to treat the roadways and limiting staff overtime. This tank system would be installed on a skid which could be utilized on the city's two hook - trucks. The anti -icing system would also be utilized in the summer for cleaning sidewalks and medians. In addition, this anti -icing system would be outfitted with a large enough pump to clean the water towers. Currently, the utilities department uses a 1982 Ford water Truck acquired from the Fire Department to clean the towers, but it requires repairs before it can be used again. Adding the new pump would eliminate the need for this truck in the City's fleet and avoid the associated repair costs. Staff received quotes from the only two truck set-up companies in the region. These quotes ranged from $26,369 to $29,536. The high bid did not include the high-pressure pump required to clean the water towers. Both companies are on the state contract. Budget Impact: The 2021 Central Equipment Fund budget includes $23,000 for a box sander. That purchase will be delayed and budgeted for in 2022 to purchase this anti -icing system. The remaining $3,369 will come from savings in central equipment fund purchases that were under this year. II. Staff Workload Impact: Improve efficiencies City Council Agenda: 05/24/2021 STAFF RECOMMENDED ACTION City staff recommends approval to purchase a VariTech Anti Icing system from Bert's Truck and Equipment for a total of $26,369 and declaring the 1982 Ford Water Truck as surplus. SUPPORTING DATA A. Bert's Truck and Equipment Proposal. B. Towmaster Proposal City of Monticello Monticello, MN Attn: Mike or Matt TRUCK EQUIPMENT 4/19/2021 1.00 VariTech Anti Icing A12600 3 lane anti ice system $ 17,970.00 Hydraulic closed loop, Baffle balls, Stainless steel spray bar 1.00 3" Conversion kit quick fill and suction $ 1,119.00 1.00 Skid for Hook Lift and lift frame $ 2,250.00 1.00 8.5" x 10" Steel rollers for skid $ 650.00 1.00 Labor to install skid to A12600 frame $ 880.00 1.00 Gas powered water pump for 3" wash down system $ 3,500.00 Sub -Total less sales tax $ 26,369.00 X Brian Pederson, Sales Manager YOUR TRUCK EQUIPMENT HEADQUARTERS 1-800-232-3787 (218) 233-8681 3804 Hwy 75 North Fax 218-233-9548 Moorhead, MN 56560 email:brianp@bertsonIine.com APF TRUCK EQU/PME/VT TOWMASTER, 61301 US HWY 12, LITCHFIELD, MN 55355 PH: 320-693-7900 FX: 320-693-7921 TF: 000-462-4517 TOWMASTERTRUCK.COM ** QUOTATION ** Reference No. QT 65488 Ship To: Cust: 3249 Phone: MONTICELLO, CITY OF 505 WALNUT STREET, SUITE 1 MONTICELLO MN 55362 USA Bill To: Phone: MONTICELLO, CITY OF 505 WALNUT STREET, SUITE 1 MONTICELLO MN 55362 USA ATTN: MATT BARTHEL Poft salesmall Terms Created JOSH PAULSON NET 30 DAYS 5/19/21 Last Revised 5/19/21 Appx Comp 0/00/00 Qty Part No. Description Price Ea. Net Amt. 1 9905007 - VariTech Ind. LDS AI2600-DAS HYD POWERED Anti -Ice System $14,572.00 $14,572.00 1 9906044 - TMTE DIRECT APP HOOK SUBFRAME COMPLETE PAINTED BLACK $4,580.00 $4,580.00 1 9901748 - Anti -Icing Installation of anti -icing system (A -FRAM $1,580.00 $1,580.00 HOOKLIFT TYPE) 1 9905008 - VariTech Ind. Tank TamerI Ball Baffle System AI2600 $2,261.00 $2,261.00 1 9902490 - VariTech Ind. Installation of direct module and switch $809.00 $809.00 package for use with existing control (MUST ADD/USE 9903288 ALSO) 1 9903288 - Control Add-on Force 6100 for Direct Application Valve $1,904.00 $1,904.00 Module, & Feedback, for 3 Lane only. 1 9901752 - VariTech Ind. 3 Lane Plumbing Package UPGRADE, AI1035-2600 $1,688.00 $1,688.00 1 9901754 - VariTech Ind. 3 Lane Spray Bar Package (Stainless Steel) $627.00 $627.00 AI1035-2600 1 SPECIAL REQUEST - Special Request Charges for: $1,515.00 $1,515.00 FORCE (PN1109656) AI SUCTION/QUICK FILL CONVERTION KIT TP 3" PLUMBING WITH 3" BALL VALVE 1 WARRANTY - TOWMASTER EXCLUSIVE WARRANTY: 5 yr Steel/Stainless Steel Body Structure; 5 yr Whelen LED Light Systems; 3 yr Palfinger Hoists; 4 yr SwapLoader Hoists; 1 year Swenson Spreaders, 2 yr Hyd, FALLS Snow Equip, Tele Hoists, and all other items. Accepted by TRKQT3 Date Price: $29,536.00 Total Discounts: Net Cost: $29,536.00 Freight Total: $29,536.00 City Council Agenda: 05/24/2021 4A. Consideration of accepting the 2020 Comprehensive Annual Financial Report Prepared by: Meeting Date: ® Regular Agenda Item Finance Director 05/24/2021 ❑ Consent Agenda Item Reviewed by: Approved by: N/A City Administrator ACTION REQUESTED Motion to accept the 2020 Comprehensive Annual Financial Report as audited by MMKR. REFERENCE AND BACKGROUND As a transparent organization trusted with properly managing public dollars, the City of Monticello is statutorily required to have a private third party conduct an annual audit of its financial statements. Malloy, Montague, Karnowski, Radosevich & Co., P.A. (MMKR) conducted the City's annual audit this spring. All finance department personnel, along with staff from other departments, contributed to the audit process. Last year, the City's 2019 Comprehensive Annual Financial Report received the Government Finance Officers Association's (GFOA) Certificate of Achievement for Excellence in Financial Reporting. This was the eleventh time the City received the award, and the sixth time staff prepared the report. The 2020 Financial Report has been prepared, and staff will submit it to the GFOA for grading and comment. Finally, the Financial Report format allows credit rating firms to compare the City's financial position with other cities. Such comparison could lead to a better bond rating. Jim Eichten, Managing Partner of MMKR, will present a summary of the highlights of the City's 2020 Financial Report, which does not include any findings related to internal controls over financial reporting, compliance with Minnesota state statutes, or internal controls and compliance with requirements of federal programs. The 2019 Financial Report was also clear of any findings. Information presented at the council meeting will be available on the City's website: www.ci.monticello.mn.us/finance. I. Budget Impact: None. II. Staff Impact: While the preparation of financial statements and the audit of the financial statements is a significant time commitment, approval of the report has no direct staff impact. III. Comprehensive Plan Impact: N/A City Council Agenda: 05/24/2021 STAFF RECOMMENDED ACTION City staff recommends accepting the 2020 Comprehensive Annual Financial Report as audited by MMKR. SUPPORTING DATA A. 2020 Comprehensive Annual Financial Report B. 2020 Special Purpose Audit Report C. 2020 Management Report �-I 4w% V Comprehensive Annual Financial Report City of Monticello, Minnesota For the Fiscal Year Ended December 31, 2020 0 City of Monticello Wright County, Minnesota COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2020 Prepared by THE FINANCE DEPARTMENT Sarah Rathlisberger, Finance Director • Liz Lindrud, Senior Accountant Julie Cheney, Finance Assistant • Cheri Butler, Payroll Clerk Debbie Davidson, Finance Clerk • Pat Kovich, Utility Billing Specialist Comprehensive Annual Financial Report Table of Contents December 31, 2020 INTRODUCTORY SECTION Letter of Transmittal GFOA Certificate of Achievement for Excellence in Financial Reporting Organization Chart Directory of Officials CITY OF MONTICELLO Page 1 4 5 6 FINANCIAL SECTION Independent Auditor's Report 7 Management's Discussion and Analysis 9 Basic Financial Statements Government -wide Financial Statements Statement of Net Position 19 Statement of Activities 21 Fund Financial Statements Balance Sheet - Governmental Funds 22 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position 23 Statement of Revenues, Expenditures and Changes in Fund Balance - Governmental Funds 24 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 25 Statement of Net Position - Proprietary Funds 26 Statement of Revenues, Expenses and Changes in Net Position - Proprietary Funds 29 Statement of Cash Flows - Proprietary Funds 30 Notes to the Financial Statements 33 Required Supplementary Information Schedule of Employer's Share and Non -Employer Proportionate Share of Net Pension Liability - Public Employees Retirement Association 57 Schedule of Employer's Pension Contibutions - Public Employees Retirement Association 58 Schedule of Changes in the Fire Relief Association's Net Pension Liability (Asset) and Related Ratios 59 Schedule of Employer's Pension Contributions - Monticello Fire Department Relief Association 60 Schedule of Changes in the City's Total OPEB Liability and Related Ratios 61 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - General Fund 62 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Community Center Fund 64 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Economic Development Authority Fund 65 Notes to the Required Supplementry Information 66 Combining and Individual Fund Financial Statements and Schedules Nonmajor Governmental Funds Combining Balance Sheet 69 Combining Statement of Revenues, Expenditures and Changes in Fund Balance 70 (continued) I CITY OF MONTICELLO Comprehensive Annual Financial Report Table of Contents December 31, 2020 (continued) Internal Service Funds Page Combining Statement of Net Position 71 Combining Statement of Revenues, Expenses and Changes in Net Position 72 Combining Statement of Cash Flows 73 Other Supplementry Schedules 92 Schedule of Revenues (Sources) and Expenditures (Uses) - General Fund 75 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Small Cities Development Program 79 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Cemetery Fund 80 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - CDBG-Revitalization Fund 81 Schedule of Assets, Liabilities, Deferred Inflows of Resources and Fund Balances - Economic Development Authority 82 Schedule of Revenues, Expenditures and Other Financing Uses - Economic Development Authority 84 Schedule of Assets, Liabilities, Deferred Inflows of Resources and Fund Balances - Debt Service Activities 86 Schedule of Revenues, Expenditures and Other Financing Sources (Uses) - Debt Service Activities 87 STATISTICAL SECTION Financial trends Net Position by Component - Last Ten Fiscal Years 89 Changes in Net Position - Last Ten Fiscal years 90 General Governmental Tax Revenues by Source - Last Ten Fiscal Years 92 Fund Balances of Governmental Funds - Last Ten Fiscal Years 93 Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years 94 Governmental Funds Tax Revenues by Source - Last Ten Fiscal Years 95 Revenue capacity Tax Capacity Value and Estimated Market Value of Taxable Property - Last Ten Fiscal Years 96 Property Tax Rates - All Direct and Overlapping Governments - Last Ten Fiscal Years 97 Property Tax Levies and Collections - Last Ten Fiscal Years 98 Principal Property Taxpayers - Current Year and Nine Years Ago 99 New Construction and Bank Deposits - Last Ten Fiscal Years 100 Water Sold by Customer Type - Last Ten Fiscal Years 101 Water and Sewage Utility Rates - Last Ten Fiscal Years 102 Debt capacity Ratios of Outstanding Debt by Type - Last Ten Fiscal Years 103 Ratios of Net General Obligation Bonded Debt Outstanding - Last Ten Fiscal Years 104 Legal Debt Margin Information - Last Ten Fiscal Years 105 Computation of Direct and Overlapping Debt - As of December 31, 2020 106 Schedule of General Obligation Revenue Bond Coverage - Last Ten Fiscal Years 107 Economic and demographic information Demographic and Economic Statistics - Last Ten Fiscal Years 108 Principal Employers - Current Year and Nine Years Ago 109 Operating information City Government Employees by Function/Program - Last Ten Fiscal Years 110 Operating Indicators by Function - Last Ten Fiscal Years 111 Capital Assets Statistics by Function - Last Ten Fiscal Years 113 Schedule of Cash Flows Adjusted for Additional City Funding of Fiber Optics Fund -Last Six Fiscal Years 114 nk' INTRODUCTORY SECTION Letter of Transmittal CITY 0I - ,o M rlt 1 do May 14, 2021 To the Honorable Mayor, Members of the City Council, and the Residents of the City of Monticello: The city is pleased to present the Comprehensive Annual Financial Report (Financial Report) of the City of Monticello, Minnesota (the city) for the fiscal year ended December 31, 2020. Responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with the city. To the best of our knowledge and belief, the enclosed data is accurate, in all material respects, and is reported in a manner designed to present fairly the financial position and results of operations of the various funds of the city. All disclosures necessary to enable the reader to gain an understanding of the city's financial activities have been included. Management assumes full responsibility for the completeness and reliability of the information contained in this report, based upon a comprehensive framework of internal control that it has established for this purpose. Because the cost of internal control should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements. The city's financial statements have been audited by Malloy, Montague, Karnowski, Radosevich & Co., P.A. (MMKR), a firm of licensed certified public accountants. The goal of the independent audit is to provide reasonable assurance that the financial statements of the city for the fiscal year ended December 31, 2020 are free of material misstatements. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the city's financial statements for the fiscal year ended December 31, 2020, are fairly presented in conformity with accounting principles generally accepted in the United States of America. The independent CITY OF MONTICELLO auditor's report is presented as the first component of the financial section of this report. The preparation of this Financial Report is a requirement of state law. Also, the Financial Report is required by the bond rating agencies before they will rate the city's bonds. The report can be used by the city council and residents of the city to gain a better understanding of the financial condition of the city. Accounting principles generally accepted in the United States of America require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The city's MD&A can be found immediately following the independent auditor's report. PROFILE OF THE CITY The city is situated in a prime location on Interstate 94 between the cities of Minneapolis/St. Paul and St. Cloud. The city has experienced remarkable growth within the last 10 years in the residential, commercial, office, and retail sectors. The city is a freestanding urban fringe community encompassing approximately 5,000 acres and a population of 13,886. The city is home to one of Minnesota's two nuclear power plants, both owned by Xcel Energy, Inc. (NYSE: XEL). With a small carbon footprint, the Xcel plant is also the city's largest employer and property taxpayer. Additionally, Monticello's business friendly environment provides a home for Cargill Kitchen Solutions. The privately -owned, agri-giant is the city's largest customer of water and sewage utility services. The city was founded by second -generation Americans who migrated west in the mid -1800s. Early settlers found the gently sloping banks and shallow levels of the Mississippi River made a logical place for a river crossing. Incorporated in 1856, the city grew quickly during the early settlement years and then leveled to a population of about 1,300. It was this original settlement that became the core city and survives today as downtown Monticello. The city is categorized as a 501(a) entity by IRS Code and operates under the "Optional Plan A" form of government as defined in Minnesota Statutes. Under this plan, the government of the city is directed by a city council composed of an elected mayor and four elected city council members. The city council exercises legislative authority and determines all matters of policy. The city council appoints personnel responsible for the proper administration of all affairs relating to the city. Council members serve four-year terms, with two members Letter of Transmittal elected every two years. The mayor is elected for a two-year term. The mayor and members of the city council are elected at large. The city provides a full range of services: the construction and maintenance of streets and other infrastructure; snow removal; park and cemetery maintenance; recreational and cultural activities; water, sewer, stormwater, and residential garbage and recycling systems; community development, building inspection, planning, police, fire, liquor store, and deputy registrar operations; a city -run fiber optic system and community center; and general government operations, including administration, finance/accounting, information systems, community information, and general government buildings. The city council is required to adopt a final budget by late December for the subsequent year. The budget is prepared by fund, function (e.g. public works), and department (e.g. streets and alleys). Transfers of appropriations between funds require the approval of the city council. The legal level of budgetary control is the department level in the General Fund and fund level in all other funds. Budget amendments require city council approval. FINANCIAL PLANNING AND THE LOCAL ECONOMY The city is recovering from economic woes that affected many communities in Wright County and throughout the state of Minnesota in the late 2000s. The nuclear power plant provides the city with a relatively stable tax and employment base. During the economic downturn, the city lost very few of its local businesses, although some reduced their workforce and scaled back operations. New commercial development came to a virtual standstill and growth remains conservative but is increasing. The residential growth has increased greatly from a decade ago when the economic downturn was still causing slow development, but still has not reached pre -economic downturn levels. In the past, the state of Minnesota has reduced local government aid (LGA) and the market value homestead credit (MVHC) to cities and counties to balance its own budget. Since the city does not receive LGA, the city's finances are relatively insulated from the state's budget impacts. In 2012, the state eliminated the MVHC and replaced it with a Market Value Exclusion program. The new program shifted more of the tax burden to nonresidential property taxpayers. The economy and housing market has also affected city revenues for building permits. The city issued 495 building permits in 2010 with a total valuation of $9,033,078. In 2020, the city issued 957 permits with a total valuation of $32,453,366. New residential infrastructure construction will need to occur to support the same level of residential building permits in the future. CITY OF MONTICELLO Fortunately, the city does not rely on the state as a major funding source (LGA). In addition, the city has budgeted conservatively over the years, resulting in very modest growth in the property tax levy. To assist external stakeholders, the city is continuously exploring various ways to better represent its financial position. Other initiatives include consolidating funds with similar purposes, distributing unallocated expenses and aggregating similar costs for distribution as single amounts to each budget unit. Further, staff continues to refine the chart of accounts with the goal of providing better information to decision makers. MAJOR INITIATIVES The city has three major ongoing initiatives in 2020. The first ongoing initiative is the revitalization of its historic downtown. The downtown is the oldest part of the city, and many buildings need maintenance or demolition. In addition, the amount of traffic on State Highway 25 and County Road 75 makes both vehicle and pedestrian traffic difficult to move from one area of the downtown to another. Because of these issues, several store fronts are unoccupied. To address these issues, the city completed an Embracing Downtown Monticello initiative with the goal to identify needed improvements and enhancements, which will once again make the downtown area a vibrant shopping and resident destination. This initiative was supplemented with a 2017 Downtown Small Area Plan. Several property acquisitions have taken place by the Monticello Economic Development Authority (EDA) to support this initiative. The challenge moving forward will be the implementation of the plan and creating development opportunities within the downtown area for new and existing businesses. The city's new Monti:2040 Comprehensive Plan, completed in 2020, includes downtown revitalization as a priority focus through 2040. Letter of Transmittal The second ongoing initiative is the joint operation with Wright County of Bertram Chain of Lakes properties. The city and Wright County completed the final land purchases in 2016. This 1,258 -acre site includes four pristine lakes and woodlands, which, when developed, will become a regional park. Wright County and the city obtained matching grants from the state to purchase much of the acreage in the park. Construction of phase 1 of park improvements began in 2019 and is expected to be completed in 2021. Finally, a pending Trunk Highway Transportation study will provide context for the last major initiative of improving regional transportation corridors. The city is part of a joint powers agreement, which also includes the cities of Becker and Big Lake, the counties of Wright and Sherburne, the townships of Becker, Big Lake, Silver Creek, and Monticello. In addition, and as was the case for all forms and levels of government, a major focus in 2020 was the COVID-19 pandemic. The city had to find new ways to provide essential services for those who live, work, and play in our community. INTERNAL CONTROL The management of the city is responsible for establishing and maintaining a system of internal controls designed to ensure that the assets of the city are protected from loss, theft, or misuse and that adequate accounting data is compiled to allow for the preparation of financial statements in conformity with accounting principles generally accepted in the United States of America. The city's internal controls are designed to provide reasonable, but not absolute assurance that these objectives are met. The concept of reasonable assurance recognizes that: 1) the cost of a control should not exceed the benefits likely to be derived, and 2) the valuation of cost and benefit requires estimates and judgments by management. The city's internal controls are subject to periodic evaluation by management and the finance department staff of the city. BUDGETING CONTROLS The city maintains budgetary controls, and the objective of these budgetary controls is to assure compliance with legal provisions embodied in the annual appropriated budget approved by the city council. Activities of the General Fund are included in the annual appropriated budget. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is established by department within the General Fund. The city council also adopts a five-year Capital Improvement Plan as a financial planning document for major purchases. As demonstrated by the statements and schedules included in the financial section of this report, the city continues to meet its responsibility for sound financial management. CITY OF MONTICELLO ACKNOWLEDGEMENTS The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the city for its Financial Report for the fiscal year ended December 31, 2019. This was the eleventh year that the city has achieved this prestigious award. To be awarded a Certificate of Achievement, the city had to publish an easily readable and efficiently organized Financial Report. This report must satisfy both accounting principles generally accepted in the United States of America and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. The city believes our current Financial Report continues to meet the Certificate of Achievement Program's requirements, and the city is submitting it to the GFOA to determine its eligibility for the award. The 2020 Financial Report meets the highest professional standards and was prepared in a timely and cost-effective manner. The preparation of this report would not have been possible without the efficient and dedicated service of the entire staff of the finance department, other city department heads, and through the helpful guidance and assistance from our auditing firm, MMKR. City management expresses our appreciation to all parties who assisted and contributed to the preparation of this report. Credit also must be given to the mayor and city council for their unfailing support for maintaining the highest standards of professionalism in the management of the city's finances. Respectfully submitted, 5��A 0 Sarah Rathlisberger Finance Director Certificate of Achievement Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Monticello Minnesota For its Comprehensive Annual Financial Report For the Fiscal Year Ended December 31, 2019 OA� P- 7- u Executive Director CITY OF MONTICELLO The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate for Excellence in Financial Reporting to the City of Monticello, Minnesota for its Comprehensive Annual Financial Report for the fiscal year ended December 31, 2019. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government reports. To be awarded a Certificate of Achievement, a governmental unit must publish an easily readable and efficiently organized Comprehensive Annual Financial Report, whose contents conform to program standards. Such reports must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe our current report continues to conform to Certificate of Achievement program requirements, and we are submitting it to the GFOA. Directory of Officials CITY OF MONTICELLO MAYOR & CITY COUNCIL CITY STAFF Position Name Term Expires Mayor......................................................................................Brian Stumpf 12/31/2020 Council...................................................................................Jim Davidson 12/31/2020 Council............................................................................................ Bill Fair 12/31/2020 Council..............................................................................Charlotte Gabler 12/31/2022 Council.................................................................................... Lloyd Hilgart 12/31/2022 City Administrator....................................................... Public Works Director/City Engineer .......................... Finance Director......................................................... Community Development Director .............................. Community Center Director ........................................ CityClerk.................................................................... Human Resource Manager ........................................ Communications Coordinator ..................................... Street Superintendent................................................. Parks Superintendent................................................. Senior Accountant..................................................... Water & Sewage Superintendent ............................... Deputy Registrar Manager ......................................... Liquor Store Manager ................................................. Economic Development Manager .............................. Chief Building Official ................................................. FireChief.................................................................... PROFESSIONAL SERVICES Law Enforcement ...................... City Attorney ............................. City Planning Consultant .......... Financial Advisor ...................... Fibernet Management Services ...... Rachel Leonard .......... Matt Leonard Sarah Rathlisberger ..Angela Schumann .................... Vacant .. Jennifer Schreiber ............Tracy Ergen .................... Vacant ......... Mike Haaland ............Tom Pawelk .............. Liz Lindrud ............... Mat Stang .....Carolyn Granger .....Randall Johnsen ..............Jim Thares Ron Hackenmueller .......... Mike Mossey ................... Wright County Sheriff's Office ............................ Campbell Knutson, P.A. ........... Northwest Associated Consultants ........................... Northland Securities, Inc ......................................................... Arvig 0 nk' FINANCIAL SECTION CERTIFIED A C C O U N" INDEPENDENT AUDITOR'S REPORT To the City Council and Management City of Monticello, Minnesota REPORT ON THE FINANCIAL STATEMENTS We have audited the accompanying financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Monticello, Minnesota (the City) as of and for the year ended December 31, 2020, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. MANAGEMENT'S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. AUDITOR'S RESPONSIBILITY Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. Principals Thomas A. Kamowski, CPA Paul A. Radosevich, CPA William J. Lauer, CPA James H. Eichten, CPA Aaron J. Nielsen, CPA Victoria L. Holinka, CPA Jaclyn M. Huegel, CPA Kalen T. Karnowski, CPA An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the City's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. OPINIONS In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City as of December 31, 2020, and the respective changes in financial position and, where applicable, cash flows thereof, for the year then ended, in accordance with accounting principles generally accepted in the United States of America. Malloy, Montague, Karnowski, Radosevich, & Co., P.A. 5353 Wayzata Boulevard • Suite 410 • Minneapolis, MN 55416 • Telephone: 952-545-0424 • Telefax: 952-545-0569 • www.mmkr.com (continued) OTHER MATTERS Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis and the required supplementary information (RSI), as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, 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 RSI in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The introductory section, combining and individual fund financial statements and schedules, and statistical section, are presented for purposes of additional analysis and are not required parts of the basic financial statements. The combining and individual fund financial statements and schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual fund financial statements and schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Prior Year Comparative Information We have previously audited the City's 2019 financial statements, and we expressed unmodified audit opinions on the respective financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information in our report dated May 18, 2020. In our opinion, the partial comparative information presented herein as of and for the year ended December 31, 2019 is consistent, in all material respects, with the audited financial statements from which it has been derived. OTHER REPORTING REQUIRED BY GOVERNMENT AUDITING STANDARDS In accordance with Government Auditing Standards, we have also issued our report dated May 14, 2021, on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements, and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control over financial reporting and compliance. Minneapolis, Minnesota May 14, 2021 nk' MANAGEMENT'S DISCUSSION AND ANALYSIS Management's Discussion and Analysis CITY OF MONTICELLO Management's Discussion and Analysis As management of the City of Monticello, 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 fiscal year ended December 31, 2020. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found on pages 1-3 of this report. Overview of the Basic 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 the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. COMPONENTS OF THE ANNUAL FINANCIAL REPORT Management's Basic Discussion and Financial Analysis Statements J Government -wide Fund Notes to the Financial Financial Financial Statements Statements Statements Government -Wide Financial Statements — The government -wide financial statements are designed to provide readers with a broad overview of the city's finances, in a manner similar to private sector businesses. The Statement of Net Position presents information on all of the city's assets and deferred outflows of resources, and liabilities and deferred inflows of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the city is improving or deteriorating. The Statement of Activities presents information showing how the city's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (delinquent taxes and special assessments). Both of the government -wide financial statements distinguish functions of the city that are principally supported by taxes and intergovernmental revenue (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business -type activities). The governmental activities provided by the city include general government, public safety, public works, sanitation, recreation and culture, economic development, and interest and fiscal charges. Business -type activities include water, sewage, stormwater, liquor, fiber optics, and deputy registrar enterprises. The government -wide financial statements include not only the city itself (known as the primary government), but also the Economic Development Authority (EDA). The EDA is a legally separate entity which functions, in essence, as a department of the city, to provide redevelopment and other economic development assistance through the administration of various programs. Therefore, the EDA has been included as an integral part of the city's financial statements and a blended component unit. The government -wide financial statements can be found on pages 19-21 of this report. 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 city's funds 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- Management's Discussion and Analysis CITY OF MONTICELLO term inflows and outflows of spendable resources, as well as the balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements. Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government -wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental funds Balance Sheet and Statement of Revenue, Expenditures and Changes in Fund Balances provide a reconciliation to facilitate the comparison between governmental funds and governmental activities. The city maintains several individual governmental funds. Information is presented separately in the governmental funds Balance Sheet and in the governmental funds Statement of Revenue, Expenditures and Changes in Fund Balances for the General Fund, Community Center (special revenue) Fund, EDA (special revenue) Fund, Debt Service Fund, and Capital Projects Fund, all of which are considered to be major funds. Data from the remaining governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements elsewhere in this report. The city adopts an annual budget for its General Fund and special revenue funds. A budgetary comparison schedule has been provided within the required supplementary information for the General Fund and major special revenue funds to demonstrate compliance with the adopted budgets. The governmental fund financial statements can be found on pages 22-25 of this report. Proprietary Funds — The city maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business - type activities in the government -wide financial statements. The city maintains six enterprise funds which are used to account for its water, sewage, and stormwater services, municipal liquor store sales, fiber optics network, and deputy registrar, which provides vehicle and other licensing services. 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 benefit accruals, central equipment services, and information technology (IT) services. Because these internal service fund activities predominantly benefit governmental rather than business -type functions, they have been included within governmental activities in the government -wide financial statements. Proprietary funds provide the same type of information as the government -wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for each of the enterprise operations. 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 proprietary fund financial statements can be found on pages 26-31 of this report. Notes to Basic Financial Statements — The notes to basic financial statements provide additional information that is essential to obtaining a full understanding of the data provided in the government -wide and fund financial statements. The notes to the basic financial statements can be found on pages 33-56 of this report. Other Information — In addition to the basic financial statements and accompanying notes, this report presents required supplementary information on activity related to the defined benefit pension plans and the other post - employment benefits (OPEB) plan as well as budgetary comparison information. Combining statements for nonmajor governmental funds, internal service funds, and other supplementary schedules including activities of the General Fund, nonmajor special revenue funds, Economic Development Authority Fund, and Debt Service sub -funds, can also be found in the combining and individual fund statements and schedules section of this report. Required supplementary information and combining and individual fund statements and schedules can be found starting on page 57. Financial Highlights The assets and deferred outflows of resources of the city exceeded its liabilities and deferred inflows of resources at year-end by $137,599,467 (net position). Of this amount, $50,310,955 (unrestricted net position) may be used to meet the city's ongoing obligations to citizens and creditors. As of the close of the current fiscal year, the city's governmental funds reported combined ending fund balances of $36,034,364, an increase of $489,959, or 1.4%. Nonspendable, restricted, and assigned uses of fund balance totaled $29,539,732, leaving an unassigned fund balance of $6,494,632, which is $47,479, or 0.7%, lower than the 2019 ending unassigned balance. 10 Management's Discussion and Analysis CITY OF MONTICELLO At the end of the current fiscal year, unassigned fund balance for the General Fund was $6,494,632, or 73.6%, of total General Fund expenditures for 2020. The city targets 60-75% of next year's expenditure budget as the optimum fund balance level, providing a reserve for cash flow during the first six months of each subsequent year until property tax receipts are released from the county treasurer's office and distributed to the local levels of government. The state auditor recommends that local governments maintain an unrestricted fund balance of approximately 35-50% of operating revenues or no less than five months of operating expenditures for the General Fund. The General Fund's heavy dependence on property tax revenues validates the 60-75% target. What is more, this reserve threshold provides temporary financing for unforeseen emergencies. (Source: Minnesota Office of the State Auditor: Fund Balance Reporting and Governmental Fund Type Definitions, based on Governmental Accounting Standards Board (GASB) Statement No. 54, 2010-1003 Revised July 2012). In 2020, government -wide capital assets decreased by $1,140,692 due to disposals and depreciation on existing assets exceeding acquisitions. Governmental activities include completion of a new fire station and pedestrian improvements, purchase of a fire ladder truck, construction of 2020 street improvements, repairs to the roof at the Monticello Community Center, and progress on phase 1 of improvements at the Bertram Chain of Lakes regional park. The city also completed a walking trail and park shelter and storm drain repair on Maple Street. Other acquisitions include a developer donation of land in Deephaven and Haven Ridge developments and acquisitions of equipment including a parks Toro mower, aerial bucket lift truck, and plow truck chassis. Technology upgrades for document storage, Audio -Visual equipment, and software were also acquired. Finally, the city upgraded heating, ventilation, and air conditioning (HVAC) units in various city buildings. The city's total long-term bonded indebtedness decreased by $1,649,000, or 5.0%, in 2020. Principal payments made on outstanding debt totaled $3,804,000. The city issued $2,155,000 in general obligation improvement bonds in 2020 to finance the 2020 street improvement project. The 2020A general obligation bonds are accounted for in the Debt Service Fund and will be paid from special assessments and property taxes. Montiry cello 11 Management's Discussion and Analysis CITY OF MONTICELLO GOVERNMENT -WIDE FINANCIAL ANALYSIS NET POSITION Governmental Activities Business -Type Activities 2020 2019 2020 2019 Total 2020 2019 Current and other assets $ 47,287,278 $ 47,955,707 $ 19,431,324 $ 16,554,485 $ 66,718,602 $ 64,510,192 Capital assets 67,965,404 67,002,287 44,433,718 46,537,527 112,399,122 113,539,814 Total assets 115, 252, 682 114, 957, 994 63, 865, 042 63, 092, 012 179,117, 724 178, 050, 006 Deferred outflows of resources 309,898 313,775 81,748 79,890 391,646 393,665 Long-term liabilities 30,876,766 32,036,517 4,454,304 4,664,872 35,331,070 36,701,389 Other liabilities 1,275,645 2,136,609 763,874 636,291 2,039,519 2,772,900 Total liabilities 32,152,411 34,173,126 5,218,178 5,301,163 37,370,589 39,474,289 Deferred inflows of resources 4,460,169 5,266,362 79,145 207,096 4,539,314 5,473,458 Net position Net investment in capital assets Restricted Unrestricted Total net position 40,836,892 40,008,410 5,451,441 8,690,172 32, 661, 667 27,133, 699 41, 000,179 42, 808, 003 17, 649, 288 14, 855, 640 81, 837, 071 82, 816,413 5,451,441 8,690,172 50, 310, 955 41, 989, 339 $ 78,950,000 $ 75,832,281 $ 58,649,467 $ 57,663,643 $ 137,599,467 $ 133,495,924 By the far the largest portion of the city's net position (59%) reflects investment in capital assets (e.g. land, buildings, structures, systems, machinery, equipment, infrastructure, and intangible assets), net of any related debt used to acquire those assets that is still outstanding. The city uses assets to provide services to citizens; consequently, these assets are not available for future spending. Although the city's investment in capital assets is reported net of related debt, it should be noted that resources needed to repay this debt must be provided from other sources since capital assets themselves cannot be used to liquidate these liabilities. A small portion of the city's net position (4%) represents resources that are subject to external restrictions on how they can be used. The remaining unrestricted net position of $50,310,955 may be used to meet the ongoing obligations to citizens and creditors. Of the unrestricted net position, $17,649,288 (35%) is attributable to business -type activities. The unrestricted governmental activities net position increased $5,527,968 (20%), and business -type activities unrestricted net position increased $2,793,648 (19%). The government -wide total unrestricted net position increased $8,321,616 (20%), reflecting revenues exceeding conservative budgeted estimates, expenses below liberal estimates, and use of restricted net position where applicable. The $963,117 (1%) increase in governmental activities capital assets is reflective of capital asset purchases and reinvestment, exceeding depreciation and disposals. Business -type capital assets decreased $2,103,809 (5%) due to depreciation in excess of additions. Net investment in capital assets, which is capital assets less related debt, decreased because capital asset disposals and depreciation exceeded capital asset acquisitions less the amount of debt borrowed to acquire assets. 12 Management's Discussion and Analysis CITY OF MONTICELLO Revenues Program revenues Charges for services Operating grants and contributions Capital grants and contributions General revenues Property taxes Tax increments Franchise taxes Unrestricted grants and aids Unrestricted investment earnings Total revenues Expenses General government Public safety Public works Sanitation Recreation and culture Economic development Interest and fiscal charges Water utility Sewage utility Stormwater Liquor Fiber optics Deputy registrar Total expenses Increase in net position before transfers Transfers Change in net position Net position, January 1 Net position, December 31 CHANGE IN NET POSITION Governmental Activities 2020 2019 $ 2,665,535 $ 3,525,783 463,335 431,004 1,289,990 1,024,891 10, 874, 313 10, 375, 714 707,824 679,925 418,030 432,934 886,544 - 666,325 969,216 17,971,896 17,439,467 2,335,614 1,927,752 2,658,246 2,406,748 4,777,282 5,765,576 681,948 610,944 3,289,716 3,636,958 1,914,825 872,984 756,546 752,595 2,545,824 2,928,682 16,414,177 15, 973, 557 1,557,719 1,465,910 1,560,000 (2,223,245) 3,117,719 (757,335) 75, 832, 281 76, 589, 616 $ 78,950,000 $ 75,832,281 Business -Type Activities 2020 2019 $ 14,402,228 $ 12,932,551 1,488, 339 1,646,123 151,794 - 332,938 482,120 16, 375, 299 15, 060, 794 1,212,656 1,216,446 2,960,153 2,889,438 658,771 - 6,395,558 5,577,481 2,063,712 1,990,052 538,625 458,695 13,829,475 12,132,112 2,545,824 2,928,682 (1,560,000) 2,223,245 985,824 5,151,927 57,663,643 52,511,716 $ 58,649,467 $ 57,663,643 Total 2020 2019 $ 17,067,763 $ 16,458,334 463,335 431,004 2,778,329 2,671,014 10, 874, 313 10, 375, 714 707,824 679,925 418,030 432,934 1,038,338 - 999,263 1,451,336 34,347,195 32,500,261 2,335,614 1,927,752 2,658,246 2,406,748 4,777,282 5,765,576 681,948 610,944 3,289,716 3,636,958 1,914,825 872,984 756,546 752,595 1,212,656 1,216,446 2,960,153 2,889,438 658,771 - 6,395,558 5,577,481 2,063,712 1,990,052 538,625 458,695 30,243,652 28,105,669 4,103,543 4,394,592 4,103,543 4,394,592 133,495,924 129,101,332 $ 137,599,467 $ 133,495,924 13 Management's Discussion and Analysis CITY OF MONTICELLO Revenues by Source - Program Expenses and Revenues - Governmental Activities Unrestricted grants and $6 contributions 5% Investment $s earnings 4% Property taxes / Charges for 60% $4 services 15% Operating c $3 grants & contributions 3% Capital g rants & contributions Tax increment Franchise taxes 7% 4% 2% Governmental Activities. The most significant revenue source for governmental activities is property taxes at 60% of total revenues. Property taxes support the General Fund, Community Center Fund, Economic Development Authority Fund, Capital Project Fund, and Debt Service Fund. Charges for services accounts for 15% of revenues, with about 19% generated by the Community Center, a decrease of previous years due to the COVID-19 pandemic. Capital grants and contributions include special assessments and revenues from other sources restricted to capital asset acquisition. Investment earnings include both interest earnings received and the change in the investment fair values. Tax increments are property taxes collected in tax increment financing districts and are restricted for development purposes. Governmental activities revenues increased $532,429 (3%) in the current year. Charges for services decreased $860,248 (24%) with decreased operations at the Community Center caused by the COVID-19 pandemic. Additionally, unrestricted grants and aids increased $886,544 due to federal CARES Act funding, property taxes increased by $498,599 (5%), and investment earnings decreased $302,891 (31 %). Public works (engineering, streets, ice and snow removal, shop and garage, street lighting, etc.) expenses are the most significant (29%), followed by recreation and culture (20%), public safety (16%), general government (14%), economic development (12%), interest and fiscal charges (5%), and sanitation (4%). Included in these amounts is depreciation expense, which is 22% of the total expenses for governmental activities. Governmental activities expenses increased $440,620 (3%) in the current year. The most significant changes in program expenses were as follows: • Economic development increased $1,041,841 (119%) due to land acquisition related to a new TIF district to be certified in 2021. • General government expenses increased $407,862 (21%) due to a solar production investment program that began in 2020 whereby the city pays Novel Solar for kilowatts produced in return for credit on its electric bill from Xcel Energy. • Public works decreased $988,294 (17%) due to decrease in depreciation charges to the public works function. The decrease was caused by the transfer of capital assets from governmental activities to the Stormwater enterprise fund in 2019. • Recreation and culture decreased $347,242 (10%) as a result of reduced operations at the Community Center caused by the COVID-19 pandemic. 14 Program Expenses and Revenues - Governmental Activities $6 $s $4 c $3 $2 $1 $- General Public safety Public works Sanitation Recreation & Economic Interest & government culture development fiscal charges ■ Program Expenses ■ Program Revenues Governmental Activities. The most significant revenue source for governmental activities is property taxes at 60% of total revenues. Property taxes support the General Fund, Community Center Fund, Economic Development Authority Fund, Capital Project Fund, and Debt Service Fund. Charges for services accounts for 15% of revenues, with about 19% generated by the Community Center, a decrease of previous years due to the COVID-19 pandemic. Capital grants and contributions include special assessments and revenues from other sources restricted to capital asset acquisition. Investment earnings include both interest earnings received and the change in the investment fair values. Tax increments are property taxes collected in tax increment financing districts and are restricted for development purposes. Governmental activities revenues increased $532,429 (3%) in the current year. Charges for services decreased $860,248 (24%) with decreased operations at the Community Center caused by the COVID-19 pandemic. Additionally, unrestricted grants and aids increased $886,544 due to federal CARES Act funding, property taxes increased by $498,599 (5%), and investment earnings decreased $302,891 (31 %). Public works (engineering, streets, ice and snow removal, shop and garage, street lighting, etc.) expenses are the most significant (29%), followed by recreation and culture (20%), public safety (16%), general government (14%), economic development (12%), interest and fiscal charges (5%), and sanitation (4%). Included in these amounts is depreciation expense, which is 22% of the total expenses for governmental activities. Governmental activities expenses increased $440,620 (3%) in the current year. The most significant changes in program expenses were as follows: • Economic development increased $1,041,841 (119%) due to land acquisition related to a new TIF district to be certified in 2021. • General government expenses increased $407,862 (21%) due to a solar production investment program that began in 2020 whereby the city pays Novel Solar for kilowatts produced in return for credit on its electric bill from Xcel Energy. • Public works decreased $988,294 (17%) due to decrease in depreciation charges to the public works function. The decrease was caused by the transfer of capital assets from governmental activities to the Stormwater enterprise fund in 2019. • Recreation and culture decreased $347,242 (10%) as a result of reduced operations at the Community Center caused by the COVID-19 pandemic. 14 Management's Discussion and Analysis CITY OF MONTICELLO Revenues by Source - Business -Type Activities Charges for services 88% Capital grants & Unrestricted grants contributions and contributions Investment 9/0 1 % earnings 2% Business -type Activities. Business -type activities increased the city's net position by $985,824, which is $4,166,103 less than the prior fiscal year's increase in business -type net position but is $863,324 more after factoring out the transfer of capital assets from governmental activities to the Stormwater enterprise fund that occurred in 2019. The change is mostly attributable to fewer operating transfers to governmental activities and improved operations in the Liquor fund. FINANCIAL ANALYSIS OF THE CITY'S FUNDS Governmental funds. The focus of the city's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the city's financing requirements. In particular, spendable fund balances may serve as a useful measure of a government's net resources available for expenditure at the end of the fiscal year. At December 31, 2020, the city's governmental funds reported total ending fund balances of $36,034,364, an increase of $489,959 (1%) when compared with the prior year. Approximately 14% or $5,008,177 of the total ending fund balances constituted restricted fund balances, which are considered unavailable for appropriation for general operations. The $173,203 nonspendable fund balance accounted for 0.5% of total governmental fund balances and is comprised of prepaid items. At the end of the fiscal year, the General Fund reported a fund balance of $6,640,235, decreasing $37,015 (1%) from the prior year. General fund revenues were $557,063 (6%) more than the prior fiscal year and expenditures increased by $557,550 (7%). General government expenditures increased $393,309 (22%) with most of the increase related to employee costs and a new solar investment program that began in 2020. Public safety expenditures increased $294,189 (12%) due to an increase in the police contract with Wright County and expenditures related to the COVID-19 pandemic. Public works expenditures decreased $322,719 (15%) due to vacancies in staffing due to a retirement and lower wages for snow removal. Recreation and culture expenditures increased by $121,767 (10%) with the addition of a full-time position in the parks department. The fund balance in the Community Center Fund decreased $187,125 (78%) to $52,357 due to operating impacts from closures in response to the COVID-19 pandemic. The closures also caused charges for services to decrease $864,090 (63%) to $496,912 in 2020. Expenditures decreased $570,698 (26%) to 15 Management's Discussion and Analysis CITY OF MONTICELLO $1,623,151 due to layoffs and reductions in spending. The Community Center's roof needed repairs, which was funded by a transfer in from the Liquor Fund. The fund balance in Economic Development Authority (EDA) Fund decreased $794,559 (11%) to $6,518,705. The assigned fund balance, which is available for general EDA activity, equaled $4,611,335 at year-end. Land held for resale increased by $591,000 (21%) with the acquisition of three properties and a decrease in value of one property. The EDA received $355,080 in property tax revenue and $707,824 in tax increments in 2020. At year-end, the restricted $1,904,184 portion of the fund balance is attributable to tax increment districts and loan programs. The fund balance in the Debt Service Fund decreased $517,029 (28%) to $1,304,532. This planned fund balance decrease reflects prior year accumulation of resources to make scheduled bond payments and the partial early redemption of the 2011A refunding bonds on February 1, 2020. Special assessment revenue increased $95,691 (26%) to $469,028 due to prepaid assessments. In governmental funds, assessments are recorded as a revenue when collectible, which occurs when it is in the current period or soon thereafter. The Capital Projects Fund provides the accounting for acquisition of general government capital assets. Accordingly, the fund accumulates resources from various sources and expenditures may or may not occur in the same year of accumulation. Consequently, the fund balance in the Capital Projects Fund increased $1,957,195 (13%) to $17,157,596. Proceeds from the 2020A $2,155,000 general obligation bond issue are accounted for in this fund and used to finance capital project costs related to the 2020 Street Improvements project. The project was under budget, and, therefore, the fund has $820,516 of restricted fund balance from unspent bond proceeds. Proprietary funds. The proprietary funds provide the same type of information found in the business -type activities in the government -wide financial statements, but in more detail. Water Fund operating expenses decreased $12,467 (1%). Utility employee personal service costs are divided between the Water Fund and Sewage Fund based on activity. The Water Fund operating revenues increased $241,503 (19%) with an increase in consumption and new state connection fee charge. The fund's net position decreased $158,873 (1%) to $13,781,749 due to a $900,000 transfer out to the Capital Projects fund for a future new Public Works facility. Depreciation expense for the fund totaled $513,484. Sewage Fund expenses increased $64,134 (2%) and operating revenues increased $115,498 (5%). The 2020 capital contributions of $875,660 were from sewer access and trunk charges. The fund's net position increased $611,431 (3%) to $23,070,466. Depreciation expense for the fund totaled $1,220,725. The Stormwater Fund was established in 2019. Stormwater operating expenses were $658,771 in 2020 and operating revenues were $241,873, an increase of $180,116 (292%). The fund's net position decreased $83,233 (1%) to $6,435,141. Depreciation expense for the fund totaled $520,495. The Liquor Fund's net position increased $424,933 (81 %) to $947,741 despite $660,000 of transfers out to the Community Center and the Park and Pathways nonmajor governmental fund. Liquor and related product sales increased $1,030,802 (16%) to $7,404,955, exceeding the $7 million threshold for the first time. The increase in sales was mainly due to the closure of local bars and restaurants during the COVID-19 pandemic Gross profit increased $246,015 (15%) to $1,902,727. Operating expenses increased $19,434 (2%) to $885,605, and depreciation expense for the fund totaled $33,591. The Fiber Optics Fund's net position decreased $115,205 (1 %) to $12,349,665. The fund's 2020 charges for services increased $52,581 (3%) to $1,846,734. Excluding depreciation, the operating income increased to $163,355 in 2020. Depreciation expense for the fund totaled $374,624. The city contracted for FiberNet operations management in July 2016. The Deputy Registrar Fund (DMV) net position increased $335,901 (20%) to $1,975,799. Charges for services increased $12,922 (2%) to $801,502 and operating expenses increased $62,233 (13%) to $528,732. Depreciation for the fund totaled $8,178. The DMV processed 127,128 transactions, a 9% decrease over the prior year. The DMV transitioned to Minnesota's Licensing and Vehicle Registration System (MNLARS) system in 2017, but that system was flawed, so the DMV transitioned to a new system, MNDrive, in November 2020. Due to the difficulty of operating MNLARS, the city received a $165,387 grant from the State of Minnesota in 2019 to help offset the costs of operating MNLARS. Other factors of the changes in income from operations have previously been discussed in the government -wide financial analysis of business -type activities. GENERAL FUND BUDGETARY HIGHLIGHTS During the year, there were no amendments to the budget. General Fund revenues and other financing sources totaled $9,790,059 and exceeded budget by 887,059 (10%). Licenses and permits, intergovernmental revenues, and other revenues, were $114,169 (28%), $340,450 (86%), and $368,983 (588%) higher than budget, respectively. Licenses and permits include building permits, intergovernmental revenues include grants from other governmental entities, 16 Management's Discussion and Analysis CITY OF MONTICELLO and other revenues include donations and solar investment rebates. These revenues can be difficult to predict, and are, therefore, budgeted conservatively. General Fund expenditures totaled $8,827,074 and were $75,926 (11%) less than budget. Other financing uses consisted of unbudgeted transfers out of $1,000,000 in order to follow the General Fund balance policy of 60-75% of next year's budgeted expenditures. While unbudgeted solar investment and COVID- 19 pandemic related expenditures caused spending over budget, conservative spending, most notably in the Streets and alleys reporting unit, allowed for overall spending under budget. The General government function exceeded budget due to unbudgeted solar investment program expenditures that are offset by solar investment rebate revenues over budget. The public safety function exceeded budget because of unbudgeted expenditures in response to the COVID-19 pandemic that were offset by federal intergovernmental revenues. Within the expenditure functions, eight of thirty-two reporting units exceeded budget. CAPITAL ASSETS AND DEBT ADMINISTRATION The General Fund year end fund balances for the past ten years are as follows: CAPITAL ASSETS Governmental Activities 2020 2019 Year Amount 2011 $ 4,410,637 2012 3,478,507 2013 3,914,563 2014 4,331,058 2015 4,986,796 2016 6,276,720 2017 7,029,093 2018 7,109,478 2019 6,677,250 2020 6,640,235 Business -Type Activities 2020 2019 Total 2020 2019 Land $ 10,556,829 $ 11,020,584 $ 786,010 $ 730,695 $ 11,342,839 $ 11,751,279 Construction in progress 2,575,132 7,339,275 253,761 - 2,828,893 7,339,275 Buildings and systems 102,018,474 93,970,808 104,641,807 104,383,594 206,660,281 198,354,402 Machinery and equipment 7,947,245 6,478,680 3,309,584 3,498,584 11,256,829 9,977,264 Less: Accumulated depreciation (55,132,276) (51,807,060) (64,557,444) (62,075,346) (119,689,720) (113,882,406) Net total $ 67,965,404 $ 67,002,287 $ 44,433,718 $ 46,537,527 $ 112,399,122 $ 113,539,814 Capital assets. The city's investment in capital assets for its governmental and business -type activities on December 31, 2020 totaled $112,399,122 (net of accumulated depreciation). This investment in capital assets includes land, construction in progress, buildings and systems, including infrastructure, and machinery and equipment, including intangible assets. Major governmental activities capital assets changes: completion of construction of the fire station, purchase of a fire ladder truck, the 2020 Street Improvement project, pedestrian improvement projects, building upgrades, and equipment additions. Business -type capital assets include HVAC upgrades and construction of the Maple Street storm drain. The total decrease from the prior fiscal year is 1%; governmental activities increased 1.4% and business -type activities decreased 4.5%. Additional information on the city's capital assets can be found in the notes to the financial statements on pages 42-43. 17 Management's Discussion and Analysis CITY OF MONTICELLO OUTSTANDING INDEBTEDNESS Long-term Debt. The city's outstanding long-term debt, including general obligation bonds, special assessment bonds, tax abatement bonds, and a Public Facilities Authority (PFA) revenue note, totaled $31,321,000 at December 31, 2020. In 2020, the city issued $2,155,000 in general obligation bonds (governmental activities) to finance capital project costs related to the 2020 Street Improvement project. Business -type long-term debt decreased with regularly scheduled payments. All other changes are the result of the partial early redemption of the 2011A G.O. Bonds and regularly scheduled payments. Additional information on the city's long-term liabilities can be found in the notes to the financial statements on pages 43-46 of this report. ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES Shortly after the fiscal year began, the Novel Coronavirus (COVID-19) pandemic caused significant volatility in economic conditions. The overall long-term effect of the pandemic is still unknown, but the city expects manageable loss of revenue and continues to look for ways to cut unnecessary spending as needed to ensure continued sound financial standing. The unemployment rate for the Wright County, Minnesota area for December 31, 2020 was 4.4%, which is lower than the state average (4.9%) and well below the national average (6.5%). The figures are elevated due to the COVID-19 pandemic. It is unclear when the pandemic will end. The long-term state and local economic outlook are currently unknown, also due to the COVID-19 pandemic. However, new commercial and residential development continued to grow at a sustainable pace in 2020, and have not indicated a significant downward trend yet in 2021. The occupancy rate of the city's business district has remained constant over the last few years and new commercial construction had recently grown. The COVID-19 pandemic has not caused any permanent local business closures in Monticello. The prospects for continued residential and large commercial growth in 2021 look promising. Small commercial growth is not expected in the near future in light of the COVID-19 pandemic. Inflationary trends in the region have compared favorably to national indices the last few years. REQUESTS FOR INFORMATION This financial report is designed to provide a general overview of the city's finances for all those interested in governmental finance. Questions concerning any information in the report or requests for additional information should be addressed to City of Monticello, Finance Department, 505 Walnut Street, Suite 1, Monticello, MN 55362. (IIY M Monticello 18 Governmental Business -Type Activities Activities Total 2020 2019 2020 2019 2020 2019 General obligation bonds $ 10,770,000 $ 11,600,000 $ 1,720,000 $ 1,910,000 $ 12,490,000 $ 13,510,000 Certificate of indebtedness - 70,000 - - - 70,000 Special assessment bonds 9,290,000 9,200,000 - - 9,290,000 9,200,000 Tax abatement bonds 7,845,000 8,390,000 - - 7,845,000 8,390,000 Public Facilities Authority revenue note - - 1,696,000 1,800,000 1,696,000 1,800,000 Total $ 27,905,000 $ 29,260,000 $ 3,416,000 $ 3,710,000 $ 31,321,000 $ 32,970,000 Long-term Debt. The city's outstanding long-term debt, including general obligation bonds, special assessment bonds, tax abatement bonds, and a Public Facilities Authority (PFA) revenue note, totaled $31,321,000 at December 31, 2020. In 2020, the city issued $2,155,000 in general obligation bonds (governmental activities) to finance capital project costs related to the 2020 Street Improvement project. Business -type long-term debt decreased with regularly scheduled payments. All other changes are the result of the partial early redemption of the 2011A G.O. Bonds and regularly scheduled payments. Additional information on the city's long-term liabilities can be found in the notes to the financial statements on pages 43-46 of this report. ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES Shortly after the fiscal year began, the Novel Coronavirus (COVID-19) pandemic caused significant volatility in economic conditions. The overall long-term effect of the pandemic is still unknown, but the city expects manageable loss of revenue and continues to look for ways to cut unnecessary spending as needed to ensure continued sound financial standing. The unemployment rate for the Wright County, Minnesota area for December 31, 2020 was 4.4%, which is lower than the state average (4.9%) and well below the national average (6.5%). The figures are elevated due to the COVID-19 pandemic. It is unclear when the pandemic will end. The long-term state and local economic outlook are currently unknown, also due to the COVID-19 pandemic. However, new commercial and residential development continued to grow at a sustainable pace in 2020, and have not indicated a significant downward trend yet in 2021. The occupancy rate of the city's business district has remained constant over the last few years and new commercial construction had recently grown. The COVID-19 pandemic has not caused any permanent local business closures in Monticello. The prospects for continued residential and large commercial growth in 2021 look promising. Small commercial growth is not expected in the near future in light of the COVID-19 pandemic. Inflationary trends in the region have compared favorably to national indices the last few years. REQUESTS FOR INFORMATION This financial report is designed to provide a general overview of the city's finances for all those interested in governmental finance. Questions concerning any information in the report or requests for additional information should be addressed to City of Monticello, Finance Department, 505 Walnut Street, Suite 1, Monticello, MN 55362. (IIY M Monticello 18 BASIC STATEMENTS CITY OF MONTICELLO Statement of Net Position December 31, 2020 Governmental Business -type Activities Activities Total ASSETS Cash and investments $ 34,171,867 $ 17,065,962 $ 51,237,829 Receivables Unremitted taxes 73,214 - 73,214 Deliquent taxes 48,375 - 48,375 Unremitted special assessments 33,658 44 33,702 Deliquent special assessments 3,451 13,248 16,699 Deferred special assessments 4,537,022 939,419 5,476,441 Accrued interest 97,070 - 97,070 Accounts 268,290 691,044 959,334 Due from other governmental units 2,256,605 78,907 2,335,512 Internal balances (88,906) 88,906 - Inventory - 426,994 426,994 Prepaid items 173,203 126,800 300,003 Notes receivable 351,886 - 351,886 Land held for resale 4,962,552 4,962,552 Net pension asset - FRA 398,991 - 398,991 Capital assets Nondepreciable 13,131,961 1,039,771 14,171,732 Depreciable, net 54,833,443 43,393,947 98,227,390 TOTAL ASSETS 115,252,682 63,865,042 179,117,724 DEFERRED OUTFLOWS OF RESOURCES Deferred other post -employment benefits resources 2,559 1,206 3,765 Deferred pension resources 307,339 80,542 387,881 TOTAL DEFERRED OUTFLOWS OF RESOURCES 309,898 81,748 391,646 LIABILITIES Accounts and contracts payable 434,244 489,816 924,060 Accrued interest payable 41,892 10,811 52,703 Other accrued liabilities 191,331 5,968 197,299 Due to other governmental units 25,641 257,279 282,920 Unearned revenue 70,317 - 70,317 Escrow deposits 512,220 - 512,220 Long-term liabilities Due within one year 2,878,570 350,113 3,228,683 Due in more than one year 27,998,196 4,104,191 32,102,387 TOTAL LIABILITIES 32,152,411 5,218,178 37,370,589 DEFERRED INFLOWS OF RESOURCES Deferred other post -employment benefits resources 92,058 43,322 135,380 Deferred pension resources 421,513 35,823 457,336 Deferred MSA state aid and grants 3,946,598 - 3,946,598 TOTAL DEFERRED INFLOWS OF RESOURCES 4,460,169 79,145 4,539,314 NET POSITION Net investment in capital assets 40,836,892 41,000,179 81,837,071 Restricted for Debt service 2,565,047 - 2,565,047 Economic development 2,324,270 2,324,270 Perpetual cemetery care 54,407 54,407 Tax increment 507,717 - 507,717 Unrestricted 32,661,667 17,649,288 50,310,955 TOTAL NET POSITION $ 78,950,000 $ 58,649,467 $ 137,599,467 The notes to the financial statements are an integral part of this statement. 19 CITY OF MonticeRo (This page left blank intentionally) 20 CITY OF MONTICELLO Statement of Activities For the Year Ended December 31, 2020 Business -type activities Program Revenues Net (Expense) Revenue and Changes in Net Position Water 1,212,656 1,541,694 310,155 Operating Capital 639,193 Sewage 2,960,153 2,559,354 875,660 Charges for Grants and Grants and Governmental Business -type Functions/Programs Expenses Services Contributions Contributions Activities Activities Total Governmental activities 1,010,402 1,010,402 Fiber Optics 2,063,712 1,851,845 General government $ 2,335,614 $ 523,919 $ 19,285 $ $ (1,792,410) $ $ (1,792,410) Public safety 2,658,246 799,227 220,246 (1,638,773) (1,638,773) Public works 4,777,282 156,657 202,860 1,289,990 (3,127,775) (3,127,775) Sanitation 681,948 522,088 20,944 - (138,916) (138,916) Recreation and culture 3,289,716 652,729 - (2,636,987) (2,636,987) Economic development 1,914,825 10,915 Franchise taxes (1,903,910) (1,903,910) Interest and fiscal charges 756,546 - - (756,546) (756,546) Total governmental activities 16,414,177 2,665,535 463,335 1,289,990 (11,995,317) (11,995,317) Business -type activities Water 1,212,656 1,541,694 310,155 639,193 639,193 Sewage 2,960,153 2,559,354 875,660 474,861 474,861 Stormwater 658,771 241,873 302,524 (114,374) (114,374) Liquor 6,395,558 7,405,960 - 1,010,402 1,010,402 Fiber Optics 2,063,712 1,851,845 (211,867) (211,867) Deputy Registrar 538,625 801,502 262,877 262,877 Total business -type activities 13,829,475 14,402,228 1,488,339 2,061,092 2,061,092 Total primary government $ 30,243,652 $ 17,067,763 $ 463,335 $ 2,778,329 (11,995,317) 2,061,092 (9,934,225) General Revenues Property taxes 10,874,313 - 10,874,313 Tax increments 707,824 707,824 Franchise taxes 418,030 - 418,030 Unrestricted grants and contributions 886,544 151,794 1,038,338 Unrestricted investment earnings 666,325 332,938 999,263 Transfers Operating 1,560,000 (1,560,000) - Total general revenues and transfers 15,113,036 (1,075,268) 14,037,768 Change in Net Position 3,117,719 985,824 4,103,543 Net Position, January 1 75,832,281 57,663,643 133,495,924 Net Position, December 31 $ 78,950,000 $ 58,649,467 $ 137,599,467 The notes to the financial statements are an integral part of this statement. 21 CITY OF MONTICELLO Balance Sheet Governmental Funds December 31, 2020 Economic Total Total Community Development Debt Capital Nonmajor Governmental General Center Authority Service Projects Funds Funds ASSETS Cash and investments $ 7,233,133 $ 2,561 $ 2,881,239 $ 1,274,149 $ 17,428,266 $ 4,147,927 $ 32,967,275 Receivables Unremitted taxes 70,847 - 2,367 - - - 73,214 Delinquent taxes 45,110 3,265 - - 48,375 Unremitted special assessments - - 33,205 453 33,658 Delinquent special assessments - 1,587 1,864 - 3,451 Deferred special assessments 437 1,300,820 3,223,761 12,004 4,537,022 Accrued interest 97,070 - - - 97,070 Accounts 148,385 19,626 525 - 99,724 268,260 Due from other governmental units 16,230 37,223 - 2,203,152 - 2,256,605 Prepaid items 145,603 23,482 3,186 - 932 173,203 Notes receivable - - 183,693 - 168,193 351,886 Land held for resale - - 3,466,370 - 1,496,182 - 4,962,552 TOTAL ASSETS $ 7,756,815 $ 82,892 $ 6,540,645 $ 2,609,761 $ 24,353,678 $ 4,428,780 $ 45,772,571 LIABILITIES Accounts and contracts payable $ 304,683 $ 4,447 $ 11,696 $ 2,822 $ 23,767 $ 55,837 $ 403,252 Other accrued liabilities 175,806 15,525 - - - - 191,331 Due to other governmental units 24,304 986 259 92 25,641 Unearned revenue 60,740 9,577 - - 70,317 Escrow deposits 505,500 6,720 512,220 Total liabilities 1,071,033 30,535 18,675 2,822 23,859 55,837 1,202,761 DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes 45,110 - 3,265 - - - 48,375 Unavailable revenue - special assessments 437 - 1,302,407 3,225,625 12,004 4,540,473 Unavailable revenue - MSA state aid and grants - - - 3,946,598 - 3,946,598 Total Deferred Inflows of Resources 45,547 - 3,265 1,302,407 7,172,223 12,004 8,535,446 FUND BALANCES Nonspendable 145,603 23,482 3,186 - - 932 173,203 Restricted - - 1,904,184 1,304,532 820,516 978,945 5,008,177 Assigned - 28,875 4,611,335 - 16,337,080 3,381,062 24,358,352 Unassigned 6,494,632 - - - - 6,494,632 Total fund balance 6,640,235 52,357 6,518,705 1,304,532 17,157,596 4,360,939 36,034,364 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES $ 7,756,815 $ 82,892 $ 6,540,645 $ 2,609,761 $ 24,353,678 $ 4,428,780 $ 45,772,571 The notes to the financial statements are an integral part of this statement. 22 CITY OF MONTICELLO Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position December 31, 2020 Amounts reported for governmental activities in the statement of net position are different because: Total fund balances - governmental funds $ 36,034,364 Long-term assets from pensions reported in governmental activities are not financial resources and, therefore, are not reported as assets in the funds. 398,991 Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. Land $ 10,556,829 Construction in progress 2,575,132 Buildings and systems 102,018,474 Machinery and equipment 5,449,088 Accumulated depreciation (54,246,935) 66,352,588 Governmental funds do not report long-term amounts related to other post -employment benefits and pensions. Deferred outflows of resources - OPEB $ 2,559 Deferred outflows of resources - pensions 307,339 Deferred inflows of resources - OPEB (92,058) Deferred inflows of resources - pensions (421,513) (203,673) Long-term liabilties that pertain to governmental funds, including bonds payable, are not due and payable in the current period, and, therefore, are not reported as fund liabilities. All liabilities, both current and long-term, are reported in the Statement of Net Position Bonds payable $ (27,665,000) Unamortized bond premiums (44,028) Other post -employment benefits liability (96,068) Net pension liability - PERA (2,520,012) (30,325,108) Internal service funds are used by management to charge the costs of central equipment, information technology, and benefit accrual services to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the Statement of Net Position. Internal service fund net position included in the governmental activities $ 2,234,508 Less internal services net position allocated to to business -type activities (88,906) 2,145,602 Some of the city's property taxes, special assessments, and notes receivable will be collected after year-end, but are not available soon enough to pay for current period expenditures and, therefore, are reported as deferred inflows of resources in the governmental funds. 4,588,848 Interest on long-term debt is not accrued in governmental funds, but rather is recognized as an expenditure when due. Accrued interest for general obligation bonds is included in the Statement of Net Position. (41,612) Net position of governmental activities $ 78,950,000 The notes to the financial statements are an integral part of this statement. 23 Statement of Revenues, Expenditures and Changes in Fund Balance Governmental Funds For the Year Ended December 31, 2020 Revenues Property taxes Tax increments Franchise taxes Special assessments Licenses and permits Intergovernmental Charges for services Fines and forfeitures Investment earnings Interest on loans Other revenues Total revenues Expenditures Current General government Public safety Public works Sanitation Recreation and culture Economic development Capital outlay Public safety Public works Recreation and culture Debt service Principal Interest and fiscal charges Bond issuance costs Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Long-term debt issued Premium on long-term debt issued Sale of capital assets Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balance at beginning of year Fund balance at end of year CITY OF MONTICELLO 3,385,000 756,908 8,827,074 1,623,151 1,917,581 4,141,908 962,985 (612,125) (594,559) (717,029) 425,000 Economic 200,000 (1,000,000) Total Total - Community Development Debt Capital Nonmajor Governmental General Center Authority Service Projects Funds Funds $ 6,797,640 $ 417,000 $ 355,080 $ 2,939,987 $ 350,604 $ $ 10,860,311 - - 707,824 - - 1,957,195 707,824 194,000 15,200,401 - - 33,694 190,336 418,030 166 469,028 162,789 1,033 633,016 521,369 - - - - - 521,369 737,650 42,827 185,000 675,751 15,000 1,656,228 936,731 496,912 - - 40,884 1,474,527 31,852 - - - - - 31,852 138,968 1,084 69,099 15,864 329,493 86,938 641,446 - - 3,739 - - 4,896 8,635 431,683 53,203 2,280 4,548 29,395 521,109 9,790,059 1,011,026 1,323,022 3,424,879 1,556,879 368,482 17,474,347 2,170,661 - - - - - 2,170,661 2,743,954 2,743,954 1,899,315 1,899,315 681,948 - - 681,948 1,331,196 1,255,578 - 27,321 2,614,095 - - 1,917,581 - 392 1,917,973 - 2,343,036 - 2,343,036 - 1,671,808 621 1,672,429 367,573 21,195 506,656 895,424 3,385,000 756,908 8,827,074 1,623,151 1,917,581 4,141,908 962,985 (612,125) (594,559) (717,029) The notes to the financial statements are an integral part of this statement 425,000 3,385,000 200,000 (1,000,000) - (200,000) - (1,000,000) 425,000 (200,000) 200,000 (37,015) (187,125) (794,559) (517,029) 6,677,250 239,482 7,313,264 1,821,561 $ 6,640,235 $ 52,357 $ 6,518,705 $ 1,304,532 The notes to the financial statements are an integral part of this statement 24 3,385,000 - 756,908 53,475 - 53,475 4,089,514 534,990 21,134,218 (2,532,635) (166,508) (3,659,871) 2,155,000 2,155,000 101,280 101,280 333,550 - 333,550 1,900,000 235,000 2,760,000 - - (1,200,000) 4,489,830 235,000 4,149,830 1,957,195 68,492 489,959 15,200,401 4,292,447 35,544,405 $ 17,157,596 $ 4,360,939 $ 36,034,364 24 CITY OF MONTICELLO Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Year Ended December 31, 2020 Amounts reported for governmental activities in the Statement of Activities are different because: Net change in fund balances - governmental funds $ 489,959 Governmental funds reported capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period. Capital outlays $ 4,533,624 Capital contributions 25,549 Disposals (466,855) Depreciation (3,432,841) 659,477 Proceeds from long-term debt provide financial resources to governmental funds, but the issuing of debt increases long-term liabilities in the Statement of Net Position. (2,155,000) Repayment of long-term debt principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the Statement of Net Position. 3,385,000 Some expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds. Premium on long-term debt issued $ (101,280) Amortization of bond premiums 126,439 Change in total OPEB liability and deferred outflows/inflows of resources 18,960 Change accrued interest payable 38,846 82,965 Long-term pension activity is not reported in governmental funds Pension revenue from state contributions 6,763 Pension expense 254,494 Deferred inflows of resources are revenues included in the change in net position, but are excluded from the change in fund balances until they are available to liquidate liabilities of the current period. Taxes $ 14,002 Special assessments 143,188 Notes receivable (27,500) 129,690 Internal service funds are used by management to charge the costs of certain activities to individual funds. The net revenue of the internal service funds is reported with governmental activities. Internal service fund activity included in governmental activities $ 235,241 Subtract internal service fund activity allocated to business -type activities 29,130 264,371 Change in net position of governmental activities $ 3,117,719 The notes to the financial statements are an integral part of this statement 25 CITY OF MONTICELLO Statement of Net Position Proprietary Funds December 31, 2020 (continued) Governmental Business -Type Activities - Enterprise Funds Activities - Deputy Internal Water Sewage Stormwater Liquor Fiber Optics Registrar Totals Service Funds ASSETS Current assets Cash and investments $ 4,895,930 $ 6,817,212 $ 1,226,361 $ 1,034,277 $ 868,359 $ 2,223,823 $ 17,065,962 $ 1,204,592 Receivables Unremitted special assessments 44 - - - - - 44 - Deliquent special assessments 13,248 - - 13,248 Deferred special assessments 365,066 349,056 225,297 - - - 939,419 - Accounts 141,044 385,961 45,869 1,605 116,481 84 691,044 30 Due from other governmental units - - - - - 78,907 78,907 - Inventory - - - 426,994 - - 426,994 Prepaid items 19,809 91,126 3,806 9,230 1,000 1,829 126,800 - Totalcurrentassets 5,435,141 7,643,355 1,501,333 1,472,106 985,840 2,304,643 19,342,418 1,204,622 Noncurrent assets Capital assets Land 208,143 516,952 55,315 5,600 - - 786,010 Buildings and systems 21,273,202 48,464,534 18,899,098 848,997 15,067,875 88,101 104,641,807 - Machinery and equipment 302,728 2,526,593 - 133,862 305,726 40,675 3,309,584 2,498,157 Construction in progress - 253,761 253,761 - Total capital assets 21,784,073 51,508,079 19,208,174 988,459 15,373,601 128,776 108,991,162 2,498,157 Less accumulated depreciation (13,222,416) (32,427,749) (14,252,678) (874,801) (3,718,352) (61,448) (64,557,444) (885,341) Total capital assets (net) 8,561,657 19,080,330 4,955,496 113,658 11,655,249 67,328 44,433,718 1,612,816 TOTAL ASSETS 13,996,798 26,723,685 6,456,829 1,585,764 12,641,089 2,371,971 63,776,136 2,817,438 DEFERRED OUTFLOWS OF RESOURCES Deferred other post -employment benefits resources 264 162 113 441 - 226 1,206 - Deferred pension resources 12,390 15,489 - 34,076 18,587 80,542 TOTAL DEFERRED OUTFLOWS OF RESOURCES 12,654 15,651 113 34,517 18,813 81,748 (continued) CITY OF MONTICELLO Statement of Net Position Proprietary Funds December 31, 2020 (Continued) Governmental Business -Type Activities - Enterprise Funds Activities - Deputy Internal Water Sewage Stormwater Liquor Fiber Optics Registrar Totals Service Funds LIABILITIES Current liabilities Accounts and contracts payable $ 31,512 $ 7,348 $ 13,502 $ 144,784 $ 291,424 $ 1,246 $ 489,816 $ 30,992 Accrued interest payable - 10,811 - - - - 10,811 280 Other accrued liabilities 4,000 - 1,968 - 5,968 - Due to other governmental units 12,327 1,974 74,450 168,528 257,279 - Bonds and notes payable - current - 300,000 - - 300,000 60,000 Compensated absences due within one year 8,165 8,165 - 23,506 - 10,277 50,113 184,805 Total current liabilities 56,004 328,298 13,502 244,708 291,424 180,051 1,113,987 276,077 Noncurrent liabilities Bonds and notes payable - net current portion - 3,133,539 - - - - 3,133,539 180,000 Compensated absences payable 10,608 10,608 - 13,079 5,741 40,036 126,853 Total OPEB liability 9,889 9,889 4,238 12,715 8,477 45,208 - Net pension liability 136,215 170,272 - 374,595 204,326 885,408 - Total noncurrent liabilities 156,712 3,324,308 4,238 400,389 - 218,544 4,104,191 306,853 TOTAL LIABILITIES 212,716 3,652,606 17,740 645,097 291,424 398,595 5,218,178 582,930 DEFERRED INFLOWS OF RESOURCES Deferred other post -employment benefits resources 9,477 9,375 4,061 12,286 - 8,123 43,322 - Deferred pension resources 5,510 6,889 - 15,157 8,267 35,823 TOTAL DEFERRED OUTFLOWS OF RESOURCES 14,987 16,264 4,061 27,443 - 16,390 79,145 - NET POSITION Net investment in capital assets 8,561,657 15,646,791 4,955,496 113,658 11,655,249 67,328 41,000,179 1,372,816 Unrestricted 5,220,092 7,423,675 1,479,645 834,083 694,416 1,908,471 17,560,382 861,692 TOTAL NET POSITION $ 13,781,749 $ 23,070,466 $ 6,435,141 $ 947,741 $ 12,349,665 $ 1,975,799 58,560,561 $ 2,234,508 Adjustment to reflect the cumulative internal balance for the net effect of the activity between the internal service funds and the enterprise funds over time 88,906 Net position of business -type activities (page 19) $ 58,649,467 The notes to the financial statements are an integral part of this statement. 27 CITY OF MonticeRo (This page left blank intentionally) 28 CITY OF MONTICELLO Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds For the Year Ended December 31, 2020 Sales and cost of sales Net sales Cost of sales Gross profit Operating revenues Charges for services Other Total operating revenues Operating expenses Personal services Materials and supplies Other services and charges Depreciation Total operating expenses Operating income (loss) Nonoperating revenues (expenses) Investment earnings Intergovernmental revenues Interest expense Total Nonoperating revenes (expenses) Income (loss) before capital contributions and transfers Capital contributions Transfers out Change in net position Net Position, January 1 Net Position, December 31 Governmental Business -Type Activities - Enterprise Funds Deputy Internal Water Sewage Stormwater Liquor Fiber Optics Registrar Totals Service Funds $ 7,404,955 (5,502,228) 1,902,727 $ 7,404,955 (5,502,228) 1,902,727 $ 1,468,890 $ 2,558,601 $ 241,873 - $ 1,846,734 $ 800,954 6,917,052 $ 562,341 72,804 753 - 1,005 5,111 548 80,221 90 1,541,694 2,559,354 241,873 1,005 1,851,845 801,502 6,997,273 562,431 250,345 354,812 127,167 628,667 4,086 466,262 1,831,339 6,541 104,801 154,593 641 18,320 111,721 7,109 397,185 110,502 339,048 1,153,829 10,468 205,027 1,572,683 47,183 3,328,238 235,292 513,484 1,220,726 520,495 33,591 374,624 8,178 2,671,098 198,954 1,207,678 2,883,960 658,771 885,605 2,063,114 528,732 8,227,860 551,289 334,016 (324,606) (416,898) 1,018,127 (211,269) 272,770 672,140 11,142 95,694 129,558 30,789 22,822 14,001 40,074 332,938 24,879 1,262 1,076 352 43,984 82,063 23,057 151,794 209,388 (70,257) (70,257) (10,168) 96,956 60,377 31,141 66,806 96,064 63,131 414,475 224,099 430,972 (264,229) (385,757) 1,084,933 (115,205) 335,901 1,086,615 235,241 310,155 875,660 302,524 - - 1,488,339 - (900,000) - - (660,000) - (1,560,000) - (158,873) 611,431 (83,233) 424,933 (115,205) 335,901 1,014,954 235,241 13,940,622 22,459,035 6,518,374 522,808 12,464,870 1,639,898 1,999,267 $ 13,781,749 $ 23,070,466 $ 6,435,141 $ 947,741 $ 12,349,665 $ 1,975,799 $ 2,234,508 Adjustment to reflect the consolidation of internal service fund related to enterprise funds (29,130) Change in net position of business -type activities (page 21) $ 985,824 The notes to the financial statements are an integral part of this statement. Statement of Cash Flows Proprietary Funds For the Year Ended December 31, 2020 Cash flows from operating activities Cash received from customers and users Cash from interfund services provided Cash paid to suppliers for goods and services Cash paid to employees Cash paid to other funds for services provided Net cash provided by operating activities Cash flows from noncapital financing activities Transfers to other funds Intergovernmental revenues Net cash provided (used) by noncapital financing activities Cash flows from capital and related financing activities Capital contributions Acquisition of capital assets Principal paid on long-term debt Interest and fiscal charges paid on long-term debt Net cash provided (used) by capital and related financing activities Cash flows from investing activities Interest on investments Net increase (decrease) in cash and cash equivalents Cash and cash equivalents, January 1 Cash and cash equivalents, December 31 Business -Type Activities - Enterprise Funds CITY OF MONTICELLO Governmental Activities - (continued) 30 Deputy Internal Water Sewage Stormwater Liquor Fiber Optics Registrar Totals Service Funds $ 1,577,613 $ 2,484,302 $ 203,672 $ 7,403,700 $ 1,819,710 $ 825,480 $ 14,314,477 $ - - - - 562,431 (411,315) (1,314,105) (11,173) (5,678,126) (1,545,323) (38,304) (8,998,346) (323,543) (256,795) (363,182) (118,981) (655,716) (4,086) (476,971) (1,875,731) (8,743) (10,424) - (13,566) (1,050) (17,374) (51,157) - 900,760 796,591 73,518 1,056,292 269,251 292,831 3,389,243 238,888 (900,000) - - (660,000) - - (1,560,000) - 1,262 1,076 352 43,984 82,063 23,057 151,794 209,388 (898,738) 1,076 352 (616,016) 82,063 23,057 (1,408,206) 209,388 103,287 547,155 56,988 - - 707,430 - - - (377,747) (41,740) (171,210) (590,697) (502,594) (294,000) (294,000) (125,000) (72,972) (72,972) (10,341) 103,287 180,183 (320,759) (41,740) (171,210) - (250,239) (637,935) 95,694 129,558 30,789 22,822 14,001 40,074 332,938 24,879 201,003 1,107,408 (216,100) 421,358 194,105 355,962 2,063,736 (164,780) 4,694,927 5,709,804 1,442,461 612,919 674,254 1,867,861 15,002,226 1,369,372 $ 4,895,930 $ 6,817,212 $ 1,226,361 $ 1,034,277 $ 868,359 $ 2,223,823 $ 17,065,962 $ 1,204,592 (continued) 30 Statement of Cash Flows Proprietary Funds For the Year Ended December 31, 2020 (Continued) Reconciliation of operating income (loss) to net cash provided (used) by operating activities Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities Depreciation OPEB expense (Increase) decrease in assets Special assessments receivable Accounts receivable Due from other governmental units Inventory Prepaid items (Increase) decrease in deferred outflows Deferred other post -employment benefits resources Deferred pension resources Increase (decrease) in liabilities Accounts and contracts payable Other liabilities Due to other governmental units Compensated absences Net pension liability Increase (decrease) in deferred inflows Deferred other post -employment benefits resources Deferred pension resources Net cash provided (used) by operating activities Schedule of noncash investing, capital and financing activities: Net amortization of bond premium (discount) Capital assets purchased on account Capital contributions CITY OF MONTICELLO Governmental Business -Type Activities - Enterprise Funds Activities - Deputy Internal Water Sewage Stormwater Liquor Fiber Optics Registrar Totals Service Funds $ 334,016 $ (324,606) $ (416,898) $ 1,018,127 $ (211,269) $ 272,770 $ 672,140 $ 11,142 513,484 1,220,726 520,495 33,591 374,624 8,178 2,671,098 198,954 4,053 5,876 4,238 (4,972) - (1,005) 8,190 - 52,099 694 - - 52,793 (12,980) (75,746) (38,201) (1,605) (32,135) (84) (160,751) - (14,362) (14,362) - 20,364 - 20,364 (6,387) (7,627) (64) (398) (207) (14,683) (254) (264) (113) 7 9 (615) (191) (239) - (526) - (287) (1,243) - 26,296 (7,032) 3,320 138,031 (1,179) 159,436 22,251 (3,200) (655) - - (3,855) - 3,882 (1,448) 10,597 38,424 51,455 - (327) (327) 2,323 2,326 3,995 6,541 11,266 14,083 - 30,983 16,900 73,232 - (1,895) (3,622) 4,061 (2,335) - (3,791) (19,102) (23,877) - (52,529) - (28,652) (124,160) - $ 900,760 $ 796,591 $ 73,518 $ 1,056,292 $ 269,251 $ 292,831 $ 3,389,243 $ 238,888 $ - $ 1,986 $ - $ - $ - $ - $ 1,986 $ - $ $ - $ 13,502 $ $ (92,225) $ $ (78,723) $ $ $ - $ 55,315 $ $ - $ $ 55,315 $ The notes to the financial statements are an integral part of this statement. 31 CITY OF MonticeRo (This page left blank intentionally) 32 Notes to the Financial Statements — December 31, 2020 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The basic financial statements of the city of Monticello, Minnesota (the city) have been prepared in conformity with accounting principles (GAAP) generally accepted in the United States of America as applied to governmental units, as applied by the Governmental Accounting Standards Board (GASB). GASB is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The significant accounting policies of the city are described as follows: A. Reporting entity Incorporated in 1856, the city of Monticello is designated as a third-class city (population 10,001 to 20,000) and governed by statutory city code under Optional Plan A in Minnesota statutes. The city falls under section 501(a) of the Internal Revenue Code. The five -member mayor -council is elected on staggered, even -numbered years. Councilors are elected at -large to four-year terms while the mayor is elected to a two-year term. The governing body appoints an administrator to implement policies and oversee daily operations. The accompanying financial statements include all funds, departments, agencies, boards, commissions, and other organizations that comprise the city, along with any component units. Component units are legally separate entities for which the city (primary government) is financially accountable, or for which the exclusion of the component unit would render the financial statements of the primary government misleading. Criteria used to determine if the primary government is financially accountable for a component unit includes whether or not the primary government appoints the voting majority of the potential component unit's governing body, is able to impose its will on the potential component unit, is in a relationship of financial benefit or burden with the potential component unit, or is fiscally depended upon by the potential component unit. The Monticello Economic Development Authority (EDA) is a legally separate entity created pursuant to Minnesota Statutes § 469.090 through § 469.108 to carryout economic and industrial development and redevelopment within the city in accordance with policies established by the City Council. The seven - member Board of Directors consists of two councilmembers and five members from the community appointed by the City Council. Management of the city has complete operational responsibility of the EDA's activities, the City Council reviews and approves the tax levy and all expenditures for the EDA, and the EDA provides services entirely to the city. Therefore, the EDA is reported as a blended component unit within the EDA Special Revenue Fund. Separate financial statements are not issued for this component unit. CITY OF MONTICELLO The mayor and council are responsible for appointing some members of other organizations. However, the city's accountability for these organizations does not extend beyond making appointments. 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 activities of the primary government and its component unit. 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. 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 operation 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. 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. Aggregated information for the remaining nonmajor funds are reported in single columns in the respective fund financial statements. The city applies restricted resources first when an expense is incurred for which both restricted and unrestricted resources are available. Depreciation expense is included in the direct expense of each function. Interest on long-term debt of governmental activities is considered an indirect expense and is reported separately on the Statement of Activities. 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 and special assessments, if levied, are recognized as revenues in the year for which they are levied. Grants and similar 33 Notes to the Financial Statements — December 31, 2020 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 available when they are collectible with the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the city considers revenue to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to claims and judgments, compensated absences, other post -employment benefits, and net pension liabilities, are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as capital outlay expenditures in the governmental funds. Proceeds from long-term debt are reported as other financing sources. Property taxes, franchise taxes, licenses, and investment interest associated with the current fiscal period are all considered to be susceptible to accrual and have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the city. Since governmental fund statements are presented using a measurement focus and basis of accounting different from that used in the government -wide statements' governmental column, a reconciliation is presented that briefly explains the adjustments necessary to reconcile ending net position and the change in net position. In the fund financial statements, financial transactions and accounts of the city are organized on the basis of funds. The operation of each fund is considered to be an independent fiscal and separate accounting entity, with a self -balancing set of accounts recording cash and/or other financial resources together with all related liabilities and residual equities or balances, and changes therein, which are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations. Major Governmental Funds — The major governmental funds reported by the city are as follows: General Fund — The General Fund is used to account for all financial resources except those required to be accounted for in another fund. CITY OF MONTICELLO Community Center Fund — The Community Center (special revenue) Fund accounts for the revenues and expenditures related to the community center. In addition to a property tax allocation, the community center generates significant revenue from charges for memberships, program activities, and space rentals. Economic Development Authority(EDA) Fund—The EDA (special revenue) Fund is used to account for revenues and expenditures related to the blended component unit. Tax increments, generated mainly by economic and redevelopment districts, and a property tax levy are the EDA's primary revenue sources. Debt Service Fund — The Debt Service Fund is used to account for the accumulation of resources for and the payment of long-term debt principal, interest, and related costs. Capital Projects Fund — The Capital Projects Fund is used to account for financial resources to be used for the acquisition or construction of major capital facilities and infrastructure (other than those financed by proprietary funds). Major Proprietary Funds — The city reports the following major proprietary funds: Water Fund — The Water (enterprise) Fund is used to account for all activities necessary to provide water services to the residents and businesses of the city. Sewage Fund — The Sewage (enterprise) Fund is used to account for all activities necessary to provide sewage services to the residents and businesses of the city. Stormwater Fund — The Stormwater (enterprise) Fund is used to account for all activities necessary to provide stormwater maintenance and street sweeping services to the residents and businesses of the city. Liquor Fund — The Liquor (enterprise) Fund is used to account for the operations of the city's liquor store. Fiber Optics Fund — The Fiber Optics (enterprise) Fund is used to account for all activities necessary to provide fiber optic services to the residents and businesses of the city. Deputy Registrar Fund— The Deputy Registrar (enterprise) Fund is used to account for the operation of city's department of motor vehicles. 34 Notes to the Financial Statements — December 31, 2020 Additionally, the city reports the following fund type: Internal Service Funds — These funds account for the city's benefit accrual, central equipment, and information technology services. Internal service funds operate in a manner similar to enterprise funds; however, they provide services primarily to other city departments. 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 enterprise funds and various other functions of the city. Elimination of these charges would distort the direct costs and program revenues of the various functions involved. Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes the city has the authority to impose. Proprietary funds distinguish operating revenues and expenses from non- operating 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 and internal service funds are charges to customers for sales and services. Operating expenses for enterprise and internal service funds include cost of sales and services, administrative expenses, and depreciation on capital assets. All revenue and expenses not meeting this definition are reported as non-operating revenues and expenses. Aggregated information for the internal service funds is reported in a single column in the proprietary fund financial statements. Because the principal user of the internal services is the city's governmental activities, the financial statements of the internal service funds are consolidated into the governmental column when presented in the government -wide financial statements. The cost of these services is reported in the appropriate functional activity. D. Cash and Investments Cash and investments include balances from all funds that are combined and invested to the extent available in savings accounts, certificates of deposit, U.S. government obligations, and other securities authorized by state statutes. Earnings from investments are allocated to the respective funds based on applicable participation by each fund. CITY OF MONTICELLO For purposes of the statement of cash flows, the city considers all highly liquid debt instruments with an original maturity from the time of purchase by the city of three months or less to be cash equivalents. The proprietary fund's equity in the government -wide cash and investment management pool is considered a cash equivalent. Investments are generally stated at fair value, except for investments in external investment pools, which are stated at amortized cost. Short-term highly liquid debt instruments (including commercial paper, banker's acceptances, and U.S. treasury and agency obligations) purchased with a remaining maturity of one year or less are reported at amortized cost. Investment income is accrued at the balance sheet date. The city categorizes its fair value measurements within the fair value hierarchy established by accounting principles generally accepted in the United States of America. The hierarchy is based on the valuation inputs used to measure the fair value of the asset as follows: • 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. Debt securities classified in Level 2 of the fair value hierarchy are valued using a matrix pricing technique. Matrix pricing is used to value securities based on the securities' relationship to benchmark quoted price as outlined in Note 2. E. Property Taxes Property tax levies are set by the city council each year and are certified to Wright County for collection in the following year. In Minnesota, counties act as collection agents for all property taxes. Wright County spreads all levies over taxable property. Such taxes become a lien on January 1 and are recorded as receivables by the city on that date. Most property taxes can be paid without penalty and interest by taxpayers in two equal installments on May 15 and October 15. Wright County provides tax settlements to cities and other taxing districts several times throughout the year. Within the governmental fund financial statements, the city recognizes property tax revenue when it becomes both measurable and available to finance expenditures of the current period. Taxes which remain unpaid at December 31 are classified as delinquent taxes receivable and are offset by deferred inflows of resources because it is not available to finance current expenditures. Deferred inflows of resources in governmental activities are susceptible to full accrual on the government -wide financial statements. 35 Notes to the Financial Statements — December 31, 2020 F. Special Assessments Special assessments are levied against the benefiting properties for the assessable costs of special assessment improvement projects in accordance with Minnesota Statutes. The city usually adopts assessment rolls when individual public improvement projects are complete or substantially complete. The assessments are collectible over a term of years generally consistent with the term of years for the related bond issue. Collection of annual installments (including interest) is handled by the county in the same manner as property taxes. Property owners are allowed to prepay total future installments without interest or prepayment penalties. Once a special assessment roll is adopted, the amount attributed to each parcel is a lien upon that property until full payment is made or the amount is determined to be excessive by the city council or court action. If special assessments are left unpaid, the property is subject to tax forfeited sale and the first proceeds of that sale (after costs, penalties, and expenses of sale) are remitted to the city in payment of delinquent special assessments. Generally, the city will collect the full amount of its special assessments not adjusted by city council or court action. Pursuant to state statutes, a property shall be subject to tax forfeit sale after three years of delinquency except for homesteaded, agricultural or seasonal recreational property, which is subject to sale after five years. These assessments are recorded as delinquent (levied, but not yet paid) and deferred (certified, but not yet levied) special assessments receivable, and are offset by deferred inflows of resources in the governmental fund financial statements. Unremitted special assessments are amounts collected by Wright County, but not paid to the city before year-end. G. Receivables Utility and miscellaneous accounts receivable are reported at gross value. Since the city is generally able to certify delinquent amounts to the county for collection as special assessments, no allowance for uncollectible accounts has been provided on current receivables. The city contracted with a third party to manage Fibernet beginning on July 1, 2016. On a monthly basis, the city receives amounts billed by Arvig with an estimated portion withheld for uncollectible account. Customer receivable balances are carried by Arvig rather than the city. Therefore, no allowance for uncollectible accounts is set up in the proprietary Fiber Optics Fund. CITY OF MONTICELLO A receivable is considered past due if any portion of the receivable balance is outstanding for more than 30 days. Interest is charged on receivables that are considered past due. Accrual of interest is not suspended until a receivable is determined to be uncollectible. Provisions for bad debts would be insignificant and none have been made for 2020. Interest receivable is recorded as revenue in the year the interest is earned and is available to pay liabilities of the current period. The interest receivable balance is reported as one amount in the General Fund while all other funds receive interest revenue distributions in cash. H. Inventories The inventories of the proprietary funds are stated at cost using the first -in, first - out (FIFO) method. Enterprise fund inventory consists of merchandise held for resale at the city -owned Hi -Way Liquors store. I. Prepaid Items Payments to vendors for services that will benefit future accounting periods are recorded as prepaid. Prepaid items are accounted for using the consumption method. Fund balance in an amount equal to the prepaid balance in the related funds is not available for appropriation, and is, therefore, classified as nonspendable. J. Notes Receivable Notes receivable consist of loans made by the city or EDA to area businesses for development or redevelopment purposes. The terms and interest rates of the individual loans vary. Notes receivable that are passed through to another entity are offset by deferred inflows of resources in the governmental funds. K. Land Held for Resale Land held for resale is recorded in the governmental fund which purchased it at the lower of cost or acquisition value. Fund balances are reported as restricted or assigned in an amount equal to the land's carrying value in the governmental funds as these assets are not available for appropriation. L. Capital Assets Capital assets, which include property, plant, equipment, and infrastructure assets (roads, bridges, sidewalks, and similar items) are reported in the applicable governmental or business -type activities columns in the government - wide financial statements. Such assets are capitalized at historical cost or 36 Notes to the Financial Statements — December 31, 2020 estimated historical cost for assets where actual historical cost is not available. Donated capital assets are recorded at their estimated acquisition value at the date of donation. The city's capitalization policy divides each asset into a class with a related threshold as follows: Class of Asset Threshold Level Useful Life Years Land $1 N/A Land improvements $50,000 10-20 Building/building improvements $20,000 12-40 Primary infrastructure and utility $75,000 10-40 Secondary infrastructure $25,000 10-40 Equipment $10,000 5-20 Software and non -tangible $10,000 5-20 The cost of normal maintenance and repairs that does not add to the value of the asset or materially extend an asset's useful life is not capitalized. The city has elected to fully capitalize the infrastructure capital assets of its governmental activities regardless of their acquisition date or amount. Capital assets are recorded in the government -wide and proprietary fund financial statements but are not reported in the governmental funds financial statements. Capital assets are depreciated using the straight-line method over their estimated useful lives shown in the previous table. Since surplus assets are generally sold for an immaterial amount when no longer needed for city purposes, no salvage value is taken into consideration for depreciation purposes. Capital assets not being depreciated include land and construction in progress. M. Deferred Outflows of Resources In addition to assets, the statement of net position and/or balance sheet will sometimes report a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of net position that applies to future periods and so will not be recognized as an outflow of resources (expense/expenditure) until that time. The city has two types of items, which arise under a full accrual basis of accounting, that qualify for reporting in this category. Accordingly, the items, deferred other post -employment benefits resources and deferred pension resources, are reported only in the statement of net position. These items result from other post -employment benefits and CITY OF MONTICELLO pension -related actuarial calculations and current year contributions made subsequent to the measurement date. N. Long -Term Liabilities In the government -wide and proprietary fund financial statements, long-term debt and other long-term obligations are reported as liabilities. Bond premiums and discounts, if material, are deferred and amortized over the life of the bonds using the straight-line method. In the fund financial statements, governmental fund types recognize bond premiums and discounts during the current period. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. The par amount of debt issued is reported as other financing sources. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. O. Compensated Absences Payable City employees earn vacation and sick leave or paid -time -off (PTO) based upon the number of completed years of service. All new full-time employees receive PTO, while two employees still receive vacation and sick leave benefits. Full- time employees who resign or leave city employment voluntarily and in good standing, after giving proper notice, shall be compensated for unused days under their respective plan upon termination of employment. PTO is credited at the beginning of each fiscal year for existing employees and prorated for the fiscal year for new employees. Vacation and sick leave are accrued by pay period. PTO benefit: Up to 320 hours accrued at year-end plus any current year hours earned to their date of severance multiplied by their hourly rate at the time of severance. Sick leave benefit: One-half of the unused sick leave up to 800 hours and all unused sick leave above 800 hours times their hourly rate at the time of severance. All compensated absences are accrued when incurred in the government -wide and proprietary fund financial statements. The liability for governmental funds is recorded in the Benefit Accrual (internal service) Fund. Resignations and retirements of employees reduce the liability in the Benefit Accrual Fund or the applicable enterprise fund. 37 Notes to the Financial Statements — December 31, 2020 P. Pensions For purposes of measuring the net pension liability (asset), deferred outflows/inflows of resources, and pension expense, information about the fiduciary net position of the Public Employees Retirement Association (PERA) and Monticello Fire Relief (FRA) and additions to/deductions from each plan's fiduciary net position have been determined on the same basis as they are reported by each plan. 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. The General Fund or applicable enterprise fund will be used to liquidate these liabilities. Q. Deferred Inflows of Resources In addition to liabilities, the statement of net position and/or balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of net position that applies to future periods and so will not be recognized as an inflow of resources (revenue) until that time. The city has three types of items that qualify for reporting in this category. First, deferred other post -employment benefits and pension resources, which arise under a full -accrual basis of accounting, is reported only in the statement of net position. These amounts are the result of actuarial calculations involving net differences between expected and actual economic experience, changes in actuarial assumptions, net differences between projected and actuarial earnings, and changes in proportion and are deferred and recognized as an inflow of resources in accordance with actuarial calculations. Second, deferred MSA state aid is reported. This amount is the result of an advance of state aid allocated to future periods. Third, unavailable revenue, which arises under the modified accrual basis of accounting, is reported in the governmental funds balance sheet. Governmental funds report unavailable revenue from three sources: property taxes, special assessments, and MSA state aid and grants. These amounts are deferred and recognized as an inflow of resources in the period the amounts become available or are allocated to the city. R. Net Position In the government -wide and proprietary fund financial statements, net position represents the difference between assets and deferred outflows of resources, and liabilities and deferred inflows of resources. Net position is displayed in three components: CITY OF MONTICELLO • Net investment in capital assets — Consists of capital assets, net of accumulated depreciation, reduced by any outstanding debt attributable to acquire capital assets. • Restricted net position — Consists of net position restricted when there are limitations imposed on their use through external restrictions imposed by creditors, grantors, or laws or regulations of other governments. • Unrestricted net position —All other net position that does not meet the definition of "net investment in capital assets" or "restricted." S. Fund Balance Classifications In the fund financial statements, governmental funds report fund balance in classifications that disclose constraints for which amounts in those funds can be spent. These classifications are as follows: • Nonspendable — Consists of amounts that are not in spendable form, such as prepaid items, inventory, and other long-term assets. • Restricted — Consists of amounts related to externally imposed constraints established by creditors, grantors, or contributors; or constraints imposed by state statutory provisions. • Committed — Consists of internally imposed constraints that are established by resolution by the city council, which is the city's highest level of decision-making authority. Those committed amounts cannot be used for any other purpose unless the city council modifies or rescinds the commitment by resolution. • Assigned — Consists of internally imposed constraints. These constraints consist of amounts intended to be used by the city for specific purposes but do not meet the criteria to be classified as restricted or committed. In governmental funds, assigned amounts represent intended uses established by the governing body itself or by an official to which the governing body delegates the authority. Pursuant to city council resolution, the council, city administrator, or finance director are authorized to establish assignments of fund balance. • Unassigned — The residual classification for the General Fund which also reflects negative residual amounts in other funds. 38 Notes to the Financial Statements — December 31, 2020 When both restricted and unrestricted resources are available for use, it is the city's policy to first use restricted resources, then use unrestricted resources as they are needed. When committed, assigned, or unassigned resources are available for use, it is the city's policy to use resources in the following order: 1) committed, 2) assigned, and 3) unassigned. T. Budget Budgets for the General Fund and all special revenue funds are adopted on a basis consistent with accounting principles generally accepted in the United States of America. Reported budget amounts are as originally adopted or as amended by city council -approved supplemental appropriations and budget transfers. No budget amendments were adopted during the year. Budget appropriations lapse at year-end. The legal level of budgetary control is at the department level in the General Fund and at the fund level in the major special revenue funds. As shown in the Required Supplementary Information on page 65, expenditures in the Economic Development Authority special revenue fund were over budget in 2020. U. 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, liabilities, and deferred outflows/inflows and disclosure of contingent assets, liabilities, and deferred outflows/inflows at the date of the financial statements and the reported amounts of revenues and expenses/expenditures during the reporting period. Actual results could differ from those estimates. V. Future Applicable Changes in Accounting Standards In June 2017, GASB issued Statement No. 87, Leases. This Statement increases the usefulness of governments' financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. Under this Statement, a lessee is required to recognize a lease liability and an intangible right -to -use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of information about governments' leasing activities. This statement is effective for the city's fiscal year ending December 31, 2022. CITY OF MONTICELLO In June 2018, GASB issued Statement No. 89, Accounting for Interest Costs Incurred Before the End of a Construction Period. This Statement establishes accounting requirements for interest cost incurred before the end of a construction period. Such interest cost includes all interest that previously was accounted for in accordance with the requirements of paragraphs 5-22 of Statement No. 62, which are superseded by this Statement. This Statement requires that interest cost incurred before the end of a construction period be recognized as an expense in the period in which the cost is incurred for financial statements prepared using the economic resources measurement focus. As a result, interest cost incurred before the end of a construction period will not be included in the historical cost of a capital asset reported in a business -type activity or enterprise fund. This Statement also reiterates that in financial statements prepared using the current financial resources measurement focus, interest cost incurred before the end of a construction period should be recognized as an expenditure on a basis consistent with governmental fund accounting principles. This statement is effective for the city's fiscal year ending December 31, 2021. In May 2019, GASB issued Statement No. 91, Conduit Debt Obligations. The primary objectives of this Statement are to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. This Statement clarifies the existing definition of a conduit debt obligation; establishes that a conduit debt obligation is not a liability of the issuer; establishes standards for accounting and financial reporting of additional commitments and voluntary commitments extended by issuers and arrangements associated with conduit debt obligations; and improves required note disclosures. This statement is effective for the city's fiscal year ending December 31, 2022. NOTE 2. CASH, CASH EQUIVALENTS, AND INVESTMENTS A. Components of Cash and Investments Cash and investments at year-end consist of the following: Deposits $ 2,861,670 1 nvestments 48, 367, 734 Cash on hand 8,425 Total cash and investments — Statement of Net Position $ 51,237,829 39 Notes to the Financial Statements — December 31, 2020 B. Deposits In accordance with applicable Minnesota Statutes, the city maintains deposits at depository banks authorized by the city council, including checking accounts and non-negotiable certificates of deposit. The following is considered the most significant risk associated with deposits Custodial Credit Risk — In the case of deposits, this is the risk that in the event of a bank failure, the city's deposits may be lost. Minnesota Statutes require that all deposits be protected by federal deposit insurance, corporate surety bond, or collateral. The fair value of collateral pledged must equal 110% of the deposits not covered by federal deposit insurance or corporate surety bonds. Authorized collateral includes treasury bills, notes, and bonds; issues of U.S. government agencies; general obligations rated "A" or better; revenue obligations rated "AX or better; irrevocable standard letters of credit issued by the Federal Home Loan Bank; and certificates of deposit. Minnesota Statutes require that securities pledged as collateral be held in safekeeping in a restricted account at the Federal Reserve Bank or in an account at a trust department of a commercial bank or other financial institution that is not owned or controlled by the financial institution furnishing the collateral. The city's investment policy does not provide further requirements regarding custodial credit risk. At year-end, the carrying amount of the city's deposits was $2,861,670 while the balance on bank records was $3,099,911. All deposits were covered by federal depository insurance, surety bonds, or by collateral held by the city's agent in the city's name. C. Investments Custodial Credit Risk — For investments, this is the risk that in the event of a failure of the counterparty to an investment transaction (typically a broker-dealer) the city would not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The city's investment policy does not provide additional requirements beyond state statutes, but the city typically limits its exposure by purchasing insured or registered investments, or by the control of who holds the securities. Credit Risk — This is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. Minnesota Statutes limit the city's investments to direct obligations or obligations guaranteed by the United CITY OF MONTICELLO States or its agencies; shares of investment companies registered under the Federal Investment Company Act of 1940 that receive the highest credit rating, are rated in one of the two highest rating categories by a statistical rating agency, and all of the investments have a final maturity of 13 months or less; general obligations rated "A" or better; revenue obligations rated "AA" or better; general obligations of the Minnesota Housing Finance Agency rated "A" or better; bankers' acceptances of United States banks eligible for purchase by the Federal Reserve System; commercial paper issued by United States corporations or their Canadian subsidiaries, rated of the highest quality category by at least two nationally recognized rating agencies, and maturing in 270 days or less; Guaranteed Investment Contracts guaranteed by a United States commercial bank, domestic branch of a foreign bank, or a United States insurance company, and with a credit quality in one of the top two highest categories; repurchase or reverse purchase agreements and securities lending agreements with financial institutions qualified as a "depository" by the government entity, with banks that are members of the Federal Reserve System with capitalization exceeding $10,000,000; that are a primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York; or certain Minnesota securities broker-dealers. The city's investment policy does not further address credit risk. Concentration Risk— This is the risk associated with investing a significant portion of the city's investment (5% or more) in the securities of a single issuer, excluding U.S. guaranteed investments (such as treasuries), investment pools, and mutual funds. The city's investment policy requires that no more than 5% of the overall portfolio may be invested in the securities of a single issuer, except for the securities of the U.S. government and in agencies or an external investment pool. No single issuer held more than 5% of the city's total investments at December 31, 2020. Interest Rate Risk — This is the risk of potential variability in the fair value of fixed rate investments resulting from changes in interest rates (the longer the period for which an interest rate is fixed, the greater the risk). The city's investment policy does not further address the duration of investments. The Minnesota Municipal Money Market Fund (4M Fund) is a common-law trust organized in accordance with the Minnesota Joint Powers Act, which invests only in investment instruments allowable under Minnesota Statutes. It is an external investment pool regulated by Minnesota statutes and the Board of Directors of the League of Minnesota Cities. The 4M Fund is not registered with the Securities Exchange Commission (SEC), but it follows the same regulatory rules of the SEC. The fair value of the city's position in the pool is the same as the value of the pool shares. The 4M Fund does not have any restrictions on participant withdrawals. The city's investment in the 4M Fund is measured at the 40 Notes to the Financial Statements — December 31, 2020 net asset value per share provided by the pool, which is based on an amortized cost method that approximates fair value. The city's cash management and investment policy complies with all statutory requirements. CITY OF MONTICELLO D. Cash on hand Cash on hand consists of cash in the possession of the city, including petty cash and change funds. The following schedule provides information on credit and interest rate risks by investment type for the city's investments at December 31, 2020: Investment Type U.S. agency securities Federal Farm Credit Bank Federal Agriculture Mortgage Credit Risk Fair Value Measurements Rating Agency Using AA+ S&P Level Interest Risk - Maturity Duration in Years Less More Than 1 1 to 5 5 to 10 Than 10 Percent of Total Holdings $ - $ 457,192 $ 299,883 $ - $ 757,075 1.6% Corporation N/R N/A Level - - 826,926 - 826,926 1.7% Federal Home Loan Bank AA+ S&P Level 2 - 548,945 - 432,858 981,803 2.0% Federal Home Loan Bank AAA Moody's Level 250,320 535,100 - 785,420 1.6% Negotiable certificates of deposit N/R N/A Level 2 2,542,494 9,961,743 3,935,489 - 16,439,726 34.1% Local government securities AAA S&P Level 2 - - - 501,740 501,740 1.0% Local government securities AA S&P Level 2 - 591,638 - 201,464 793,102 1.6% Local government securities Aaa Moody's Level - - - 1,002,870 1,002,870 2.1% Local government securities A Moody's Level 2 167,609 315,336 - - 482,945 1.0% Investment pools and mutual funds N/R N/A Amortized Cost 25,678,847 - - - 25,678,847 53.1% Investment pools and mutual funds AAA S&P Amortized Cost 117,280 - - - 117,280 0.2% Total investments $28,506,230 $12,125,174 $5,597,398 $2,138,932 $48,367,734 100.0% N/R — Not Rated N/A — Not Applicable 41 Notes to the Financial Statements — December 31, 2020 CITY OF MONTICELLO NOTE 3. CAPITAL ASSETS Capital asset activities for the year end December 31, 2020 are as follows: January 1, Transfers and December 31, Governmental Beginning Completed Ending Internal Service Governmental Internal Service Activities Balance Additions Deletions Construction Balance Fund Assets Activities Total Fund Additions Additions Governmental activities Nondepreciable capital assets: Land $11,020,584 $ 3,100 $(466,855) $ - $ 10,556,829 $ $10,556,829 $ $ 3,100 Construction in progress 7,339,275 4,344,927 - (9,109,070) 2,575,132 2,575,132 4,344,927 Total capital assets, not depreciated 18,359,859 4,348,027 (466,855) (9,109,070) 13,131,961 13,131,961 4,348,027 Depreciable capital assets: Buildings and systems 93,970,808 211,146 - 7,836,520 102,018,474 102,018,474 211,146 Machinery and equipment 6,478,680 502,594 (306,579) 1,272,550 7,947,245 2,498,157 5,449,088 502,594 - Total capital assets, depreciated 100,449,488 713,740 (306,579) 9,109,070 109,965,719 2,498,157 107,467,562 502,594 211,146 Less accumulated depreciation for: Buildings and systems (47,183,734) (3,362,511) - - (50,546,245) - (50,546,245) - (3,362,511) Machinery and equipment (4,623,326) (269,284) 306,579 (4,586,031) (885,341) (3,700,690) (198,954) (70,330) Total accumulated depreciation (51,807,060) (3,631,795) 306,579 (55,132,276) (885,341) (54,246,935) (198,954) (3,432,841) Net capital assets, depreciated 48,642,428 (2,918,055) - 9,109,070 54,833,443 1,612,816 53,220,627 303,640 (3,221,695) Total governmental activities $67,002,287 $ 1,429,972 $(466,855) $ - $ 67,965,404 $ 1,612,816 $66,352,588 $ 303,640 $ 1,126,332 Business -type activities Nondepreciable capital assets: Land $ 730,695 $ 55,315 $ $ $ 786,010 Construction in progress - 253,761 253,761 Total capital assets, not depreciated 730,695 309,076 1,039,771 Depreciable capital assets: Buildings and systems 104,383,594 258,213 104,641,807 Machinery and equipment 3,498,584 - (189,000) 3,309,584 Total capital assets, depreciated 107,882,178 258,213 (189,000) 107,951,391 Less accumulated depreciation for: Buildings and systems (60,084,164) (2,545,566) - (62,629,730) Machinery and equipment (1,991,182) (125,532) 189,000 (1,927,714) Total accumulated depreciation (62,075,346) (2,671,098) 189,000 (64,557,444) Net capital assets, depreciated 45,806,832 (2,412,885) 43,393,947 Total business -type activities $46,537,527 $ (2,103,809) $ $ $ 44,433,718 42 Notes to the Financial Statements — December 31, 2020 Depreciation for the year ended December 31, 2020 was charged to functions/programs as follows: Governmental activities General government Public safety Public works Recreation and culture Capital assets held by the City's internal service funds — charged to the various functions based on usage of assets Total depreciation expense — governmental activities Business -type activities Water Sewage Stormwater Liquor Fiber Optics Deputy Registrar Total depreciation expense — business -type activities NOTE 4. COMMITMENTS 36,071 57,660 2,791,217 547,893 198,954 $ 3,631,795 $ 513,484 1,220,726 520,495 33,591 374,624 8,178 $ 2,671,098 The city has awarded contracts for various construction and remodeling projects. The city's commitments for uncompleted work on these contracts at December 31, 2020 are approximately as follows: Fund Project Description Capital projects 2019 Pedestrian Improvements Amount Contract Paid Remaining Amount To -Date 12/31/2020 364,411 346,190 18,221 Nonmajor governmental Bertram Park Improvements 1,686,178 1,640,472 45,706 $ 2,050,589 $1,986,662 $ 63,927 In 2019, the city entered into an investment agreement with Novel Solar Two LLC (Novel) at a solar farm. The city pays Novel $0.119 per kilowatt-hour (kWh) generated. Novel then sells the produced solar energy to Xcel Energy, and, in return, the city receives an energy credit on its monthly electric bills from Xcel Energy. Payments on the contract began in 2020, but amounts vary each month based on kilowatt-hours produced. CITY OF MONTICELLO NOTE 5. LONG-TERM LIABILITIES A. Description The city has the following types of long-term liabilities outstanding at December 31, 2020: • General Obligation Bonds — The general obligation bond issues financed a settlement with telecommunication revenue bondholders, capital equipment purchases in the Central Equipment and Capital Projects funds, and construction of a new fire station. • Special Assessment Bonds — These bonds are payable primarily from special assessments levied on the properties benefiting from the improvements funded by these issues. Any deficiencies in revenue to fund these issues will be provided from general property taxes. • Tax Abatement Bonds — The principal balances on these bonds are payable primarily from a special tax abatement levy, and interest is paid from general property taxes. • General Obligation Revenue Bonds — The outstanding general obligation revenue bond financed improvements to the city's sewer system. They will be repaid from revenues pledged and are backed by the taxing power of the city. Net operating revenues were $2,559,354 and principal and interest payments were $242,398 for a percentage of revenues of 9.47%. • PFA Revenue Note — This note was issued for improvements to the wastewater treatment plant and is payable primarily from user fees which benefit from the improvements. • Compensated Absences — The city provides vacation and sick or paid -time -off (PTO) leave benefits to eligible employees. The liability will be repaid by the Benefit Accrual fund or respective enterprise fund for which each employee is employed. • Total OPEB Liability — The city provides post -employment benefits to certain eligible employees through the city's OPEB Plan. The liability will be repaid based on a pay-as-you-go financing requirement from the General fund or applicable enterprise fund. • Net Pension Liability — City employees participate in one state-wide, multiple -employer, defined benefit pension plan administered by the Public Employees Retirement Association (PERA) per Minnesota state statute. The liability reflects the city's portion of the total net pension 43 Notes to the Financial Statements - December 31, 2020 liability of the PERA plan based on a percentage of contributions into the plan. The liability will be repaid by the General fund or applicable enterprise fund. Final Long-term liabilities at year-end are summarized as follows: Interest Maturity Balance - Issue Final Date End of Year Original Interest Maturity Balance - General obligation revenue bonds Issue Rate % Issue Date Date End of Year Governmental activities treatment bonds $3,000,000 General obligation bonds 12/01/2028 $ 1,720,000 Public Facility Authority G.O. 2014A General Sewer Revenue Note (2015A) 2,214,632 1.06 08/26/2015 08/20/2035 obligation bonds Premiums on bonds 17,539 judgment portion $6,080,000 1.00 - 3.50 % 12/18/2014 12/15/2030 $ 4,300,000 equipment portion 515,000 1.00-3.05 12/18/2014 12/15/2024 240,000 2019A General 885,408 Total business -type activities obligation bonds $ 4,454,304 CIP portion 5,350,000 2.00-2.30 09/18/2019 12/15/2034 5,065,000 equipment portion 1,290,000 2.00 09/18/2019 12/15/2028 1,165,000 Special assessments bonds 2011A General obligation refunding bonds 10,735,000 2.00-3.00 10/19/2011 02/01/2023 385,000 20158 General obligation bonds 2,605,000 1.50-3.00 11/01/2015 12/15/2030 1,830,000 2016A General obligation bonds 4,900,000 2.00-3.00 11/15/2016 12/15/2030 3,155,000 2017A General obligation bonds 2,040,000 2.00-2.50 10/24/2017 12/15/2027 1,475,000 2019A General obligation bonds 320,000 2.00 09/18/2019 12/15/2028 290,000 2020A General obligation bonds 2,155,000 0.45-2.00 09/09/2020 12/15/2030 2,155,000 Tax abatement bonds 2017A General obligation bonds 2,960,000 2.00-3.00 10/24/2017 12/15/2032 2,450,000 2018A General obligation bonds 5,000,000 3.00-3.38 10/23/2018 12/15/2032 4,420,000 2019A General obligation bonds 1,040,000 2.00-2.20 09/18/2019 12/15/2032 975,000 Premiums on bonds 44,028 Compensated absences payable 311,658 Total OPEB liability 96,068 Net pension liability 2,520,012 Total governmental activities $30,876,766 CITY OF MONTICELLO B. Changes in Long -Term Liabilities Governmental activities General obligation bonds Certificates of indebtedness Special assessment bonds Tax abatement bonds Add premiums on bonds Compensated absences Total OPEB liability Net pension liability Total governmental activities Business -type activities General obligation revenue bonds PFA Revenue Note Add premiums on bonds Compensated absences Total OPEB liability Net pension liability Total business -type activities January 1, December 31, Due Within 2020 Additions Retirements 2020 One Year $ 11,600,000 $ $ (830,000) $10,770,000 $ 885,000 70,000 (70,000) - - 9,200,000 $2,155,000 (2,065,000) 9,290,000 1,240,000 8,390,000 - (545,000) 7,845,000 565,000 69,187 101,280 (126,439) 44,028 - 305,117 275,254 (268,713) 311,658 184,805 90,631 6,824 (1,387) 96,068 3,765 2,311,582 499,967 (291,537) 2,520,012 $ 32,036,517 $3,038,325 $(4,198,076) $30,876,766 $2,878,570 $ 1,910,000 $ $ (190,000) $ 1,720,000 $ 195,000 1,800,000 (104,000) 1,696,000 105,000 19,524 (1,985) 17,539 - 86,154 78,504 (74,509) 90,149 50,113 37,018 8,843 (653) 45,208 - 812,176 175,664 (102,432) 885,408 $ 4,664,872 $ 263,011 $ (473,579) $ 4,454,304 $ 350,113 44 Final Original Interest Maturity Balance - Issue Rate % Issue Date Date End of Year Business -type activities General obligation revenue bonds 2013B Wastewater treatment bonds $3,000,000 2.00 - 3.35 % 12/01/2013 12/01/2028 $ 1,720,000 Public Facility Authority G.O. Sewer Revenue Note (2015A) 2,214,632 1.06 08/26/2015 08/20/2035 1,696,000 Premiums on bonds 17,539 Compensated absences payable 90,149 Total OPEB liability 45,208 Net pension liability 885,408 Total business -type activities $ 4,454,304 B. Changes in Long -Term Liabilities Governmental activities General obligation bonds Certificates of indebtedness Special assessment bonds Tax abatement bonds Add premiums on bonds Compensated absences Total OPEB liability Net pension liability Total governmental activities Business -type activities General obligation revenue bonds PFA Revenue Note Add premiums on bonds Compensated absences Total OPEB liability Net pension liability Total business -type activities January 1, December 31, Due Within 2020 Additions Retirements 2020 One Year $ 11,600,000 $ $ (830,000) $10,770,000 $ 885,000 70,000 (70,000) - - 9,200,000 $2,155,000 (2,065,000) 9,290,000 1,240,000 8,390,000 - (545,000) 7,845,000 565,000 69,187 101,280 (126,439) 44,028 - 305,117 275,254 (268,713) 311,658 184,805 90,631 6,824 (1,387) 96,068 3,765 2,311,582 499,967 (291,537) 2,520,012 $ 32,036,517 $3,038,325 $(4,198,076) $30,876,766 $2,878,570 $ 1,910,000 $ $ (190,000) $ 1,720,000 $ 195,000 1,800,000 (104,000) 1,696,000 105,000 19,524 (1,985) 17,539 - 86,154 78,504 (74,509) 90,149 50,113 37,018 8,843 (653) 45,208 - 812,176 175,664 (102,432) 885,408 $ 4,664,872 $ 263,011 $ (473,579) $ 4,454,304 $ 350,113 44 Notes to the Financial Statements - December 31, 2020 CITY OF MONTICELLO C. Minimum Debt Payments Minimum annual principal and interest payments to maturity for bonds payable are as follows: Governmental Activities Business -Type Activities Special Year Ending General Obligation Bonds Assessment Bonds Tax Abatement Bonds General Obligation Bonds PFA Revenue Note December 31, Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest 2021 $ 885,000 $ 271,709 $ 1,240,000 $ 204,307 $ 565,000 $ 215,773 $ 195,000 $ 48,598 $ 105,000 $ 18,028 2022 910,000 251,834 1,270,000 168,168 580,000 201,373 200,000 44,405 106,000 16,912 2023 925,000 230,296 1,100,000 143,743 590,000 186,573 205,000 39,705 107,000 15,786 2024 945,000 207,701 1,120, 000 120,893 605,000 171,473 210,000 34,375 108,000 14,648 2025 910,000 183,919 1,145, 000 97,618 625,000 155,973 215,000 28,600 109,000 13,500 2026-2030 4,600,000 552,486 3,415,000 193,925 3,380,000 520,648 695,000 45,590 565,000 49,802 2031 -2035 1,595,000 90,523 - - 1,500,000 69,863 - - 596,000 19,134 $10,770,000 $1,788,468 $ 9,290,000 $ 928,652 $ 7,845,000 $1,521,673 $1,720,000 $ 241,273 $1,696,000 $ 147,810 D. Legal Debt Margin Under Minnesota State Statutes, the general obligation bonded debt issued by the city is subject to a legal debt limitation based on 3 percent of market value. At December 31, 2020, the city's legal debt margin was $49,671,142. The statutes provide that debt issues supported by tax increment, special assessment revenues or available dedicated reserves are excluded from the total limited debt. E. Conduit Debt From time to time, the city has issued bonds or notes to provide financial assistance to private sector entities for the acquisition and construction of housing or commercial facilities deemed to be in the public interest. The bonds or notes are secured by the property financed and are payable solely from payments received on the underlying mortgage loans or leases. Upon repayment of the bonds, ownership of the acquired facilities transfers to the private sector entity served by the bond issuance. The city is not obligated in any manner for repayment of the bonds or notes. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. As of December 31, 2020, there was one Revenue Refunding Note and two series of Educational Facilities Revenue Notes outstanding. The original issue of the 2014 Revenue Refunding Note (Ice Arena Project) totaled $1,111,000 and matures in 2024. The original issues of the 2017A and 20178 Educational Facilities Revenue Notes totaled $2,225,000 and mature in 2037. These balances have reduced through regularly scheduled payments. The outstanding balance as of December 31, 2020 is undetermined. F. Pay -As -You -Go Tax Increment Notes The city, in order to spur economic development and redevelopment, has entered into private development and redevelopment agreements to encourage developers to construct, expand, or improve new or existing properties and buildings or clean-up and redevelop blighted areas. These agreements may in substance be a tax abatement but will depend on their individual circumstances. G. Abatements The city is authorized to create a tax increment financing plan under Minnesota Statute 469.175. The criteria that must be met under the statute are that, in the opinion of the municipality: the proposed development or redevelopment would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future; and the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the district 45 Notes to the Financial Statements — December 31, 2020 permitted by the plan. The requirements of this item do not apply if the district is a housing district; that the tax increment financing plan conforms to the general plan for the development or redevelopment of the municipality as a whole; and that the tax increment financing plan will afford maximum opportunity, consistent with the sound needs of the municipality as a whole, for the development or redevelopment of the project by private enterprise. The city has development agreements with private developers for properties in the city's tax increment districts. As part of the agreements, the city has agreed to reimburse the developers for certain costs through pay-as-you-go tax increment notes. These notes provide for the payment of principal equal to the developers' costs, plus interest at rates ranging from 5.5% to 8.5% (interest accrual commencing upon the developer completing the project). Payments of the notes will be made at the lesser of the scheduled note payments or the actual net tax increment received during the period specified in the agreement. The notes, classified as abatements, will be canceled at the end of the agreement term, whether it has been fully repaid or not. The city currently has two agreements that would be considered tax abatements under GASB Statement 77. The outstanding principal balances as of December 31, 2020 are listed in the following table. These notes are not included in the city's long-term debt, because repayment is required only to the extent sufficient tax increments are received. The city's position is that this is an obligation to assign future and uncertain revenue sources and is not actual debt in substance. Name Purpose 1-22 Redevelopment activities in Downtown 1997 Downtown and 2010 District Embracing Downtown plans 1-40 60 unit elderly (senior Briggs citizen) housing facility H. Arbitrage Rebate Amount of taxes Outstanding Date of abated during principal balance required the fiscal year at year-end decertification 11,303 $ 184,816 12/31/2024 785,000 12/31/2045 In accordance with the provisions of Section 148(f) of the Internal Revenue Code of 1986, as amended, bonds must satisfy certain arbitrage rebate requirements. Positive arbitrage is the excess of (1) the amount earned on investments purchased with bond proceeds over (2) the amount that such investments would have earned had such investments been invested at a rate equal to the yield on CITY OF MONTICELLO the bond issue. In order to comply with the arbitrage rebates requirements, positive arbitrage must be paid to the U.S. treasury at the end of each five-year anniversary date of the bond issue. As of December 31, 2020, there are no arbitrage rebates owed. I. Revenue Pledged Future revenue pledged for the payment of long-term debt is as follows: 2013B G.O. Wastewater Description Treatment Bonds PFA Note Use of proceeds Sewage Fund Sewage Fund Revenue pledged Type Utility charges Utility charges Percent of total debt service 52% 48% Term of pledge 2013-2028 2015-2035 Remaining principal & interest $ 1,961,273 $ 1,843,810 Current year Principal and interest paid $ 242,398 $ 123,134 Pledged revenue received $ 1,330,864 $ 1,228,490 NOTE 6. DEFINED BENEFIT PENSION PLANS — STATE-WIDE A. Plan Description The city participates in the General Employees Retirement Fund (GERF) cost- sharing multiple -employer defined benefit pension plan administered by the Public Employees Retirement Association of Minnesota (PERA). PERA's defined benefit pension plans are established and administered in accordance with Minnesota Statutes, Chapters 353 and 356. PERA's defined benefit pension plans are tax qualified plans under Section 401 (a) of the Internal Revenue Code. General Employees Retirement Fund (General Employees 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. 46 Notes to the Financial Statements - December 31, 2020 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 Benefits are based on a member's highest average salary for any five successive years of allowable service, age, and years of credit at termination of service. Two methods are used to compute benefits for PERA's Coordinated Plan members. Members hired prior to July 1, 1989, receive the higher of Method 1 or Method 2 formulas. Only Method 2 is used for members hired after June 30, 1989. Under Method 1, the accrual rate for Coordinated members is 1.2% of average salary for each of the first 10 years of service and 1.7% of average salary for each additional year. Under Method 2, the accrual rate for Coordinated members is 1.7% of average salary for all years of service. For members hired prior to July 1, 1989 a full annuity is available when age plus years of service equal 90 and normal retirement age is 65. For members hired on or after July 1, 1989, normal retirement age is the age for unreduced Social Security benefits capped at 66. Benefit increases are provided to benefit recipients each January. Beginning in 2019, the postretirement increase is equal to 50% of the cost -of -living adjustment (COLA) announced by the Social Security Administration, with a minimum increase of at least 1.0% and a maximum of 1.5%. Recipients that have been receiving the annuity or benefit for at least a full year as of the June 30 before the effective date of the increase will receive the full increase. For recipients receiving the annuity or benefit for at least one month but less than a full year as of the June 30 before the effective date of the increase will receive a reduced prorated increase. For members retiring on January 1, 2024, or later, the increase will be delayed until normal retirement age (age 65 if hired prior to July 1, 1989, or age 66 for individuals hired on or after July 1, 1989). Members retiring under Rule of 90 are exempt from the delay to normal retirement. 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 6.50%, of their annual covered salary in fiscal year 2020, and the city was required to contribute 7.50% for Coordinated Plan members. The city's contributions to the General Employees Fund for the year ended December 31, 2020, were $304,809. The city's CITY OF MONTICELLO contributions were equal to the required contributions as set by state statute. D. Pension Costs General Employees Fund Pension Costs At December 31, 2020, the city reported a liability of $3,405,420 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 $104,919. The net pension liability was measured as of June 30, 2020, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The city's proportionate share of the net pension liability was based on the city's contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2019, through June 30, 2020, relative to the total employer contributions received from all of PERA's participating employers. The city's proportionate share was 0.0568%, which was an increase of 0.0003% from its proportionate share at June 30, 2019. For the year ended December 31, 2020, the city recognized pension expense of $99,210 for its proportionate share of the General Employees Fund's pension expense. In addition, the city recognized an additional $9,147 as pension expense (and grant revenue) for its proportionate share of the State of Minnesota's contribution of $16 million to the General Employees Fund. At December 31, 2020, the city reported its proportionate share of the General Employees Plan's deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred Inflows of Racnurrac of RP,;n11rCAlC Differences between expected and actual economic experience $ 30,852 $ 12,885 Changes in actuarial assumptions - 124,892 Net collective difference between projected and actual investment earnings 68,068 Changes in proportion 55,643 Contributions paid to PERA subsequent to the measurement date 155,223 - Total $ 309,786 $ 137,777 47 Notes to the Financial Statements — December 31, 2020 $155,223 reported as deferred outflows of resources related to pensions resulting from the city's contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2021. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions, excluding the contributions subsequent to the measurement date, will be recognized in pension expense as follows: Pension Yearended Expense December 31, Amount 2021 $ (158,191) 2022 23,836 2023 68,865 2024 82,276 $ 16,786 E. Actuarial Assumptions The total pension liability in the June 30, 2020 actuarial valuation was determined using an individual entry -age normal actuarial cost method and the following actuarial assumptions: Inflation 2.25% per year Active Member Payroll Growth 3.00% per year Investment Rate of Return 7.50% Salary increases were based on a service -related table. Mortality rates for active members, retirees, survivors, and disabilitants for all plans were based on RP 2014 tables for males or females, as appropriate, with slight adjustments to fit PERA's experience. Cost of living benefit increases after retirement for retirees are assumed to be 1.25% per year for the General Employees Plan. Actuarial assumptions used in the June 30, 2020 valuation were based on the results of actuarial experience studies. The most recent four-year experience study in the General Employees Plan was completed in 2019. The assumption changes were adopted by the Board and become effective with the July 1, 2020 actuarial valuation. The following changes in actuarial assumptions and changes in plan provisions occurred in the General Employees Plan in 2020: CITY OF MONTICELLO • The price inflation assumption was decreased from 2.50% to 2.25%. • The payroll growth assumption was decreased from 3.25% to 3.00%. • 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 changed as recommended in the June 30, 2019 experience study. The new rates are based on service and are generally lower than the previous rates for years 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 & Survivor option changed from 35% to 45%. The assumed number of married female new retirees electing the 100% Joint & Survivor option changed from 15% to 30%. The corresponding number of married new retirees electing the Life annuity option was adjusted accordingly. • Augmentation for current privatized members was reduced to 2.0% for the period July 1, 2020 through December 31, 2023 and 0.0% after. Augmentation was eliminated for privatizations occurring after June 30, 2020. 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 48 Notes to the Financial Statements — December 31, 2020 allocation percentages. The target allocation and best estimates of geometric real H. Pension Plan Fiduciary Net Position rates of return for each major asset class are summarized in the following table: Asset Class Domestic stocks Internalation stocks Bonds (fixed income) Alternative assets (private markets) Cash Total F. Discount Rate Target Allocation 35.5% 17.5% 20.0% 25.0% 2.0% 100.0% CITY OF MONTICELLO Detailed information about the General Employees Fund pension plan's Long -Term fiduciary net position is available in a separately -issued PERA financial report Expected Real that includes financial statements and required supplementary information. Rate of Return That report may be obtained on the Internet at www.mnpera.org. 5.10% NOTE 7. PUBLIC EMPLOYEES DEFINED CONTRIBUTION PENSION 5.30% PLANS — STATE-WIDE 0.75% 5.90% All council members of the city are covered by the Public Employees Defined 0.00% Contribution Plan (PEDCP), a multiple -employer deferred compensation plan administered by PERA. However, only two of the five Council members choose to participate in the plan. The PEDCP is a tax qualified plan under Section 401(a) of the Internal Revenue Code and all contributions by or on behalf of employees are tax deferred until time of withdrawal. The discount rate used to measure the total pension liability in 2020 was 7.50%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members and employers will be made at the rates set in Minnesota Statutes. Based on these assumptions, the fiduciary net position of the General Employees Fund was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. G. Pension Liability Sensitivity The following presents the city's proportionate share of the net pension liability 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 1% Increase In Discount Discount In Discount Rate (6.50%) Rate (7.50%) Rate (8.50%) City's proportionate share of the GERF net pension liability $ 5,457,706 $ 3,405,420 $ 1,712,448 Plan benefits depend solely on amounts contributed to the plan plus investment earnings, less administrative expenses. Minnesota Statutes, Chapter 353D.03, specifies plan provisions, including the employee and employer contribution rates for those qualified personnel who elect to participate. An eligible elected official who decides to participate contributes 5% of salary which is matched by the elected official's employer. Employer and employee contributions are combined and used to purchase shares in one or more of the seven accounts of the Minnesota Supplemental Investment Fund. For administering the plan, PERA receives 2% of employer contributions and twenty-five hundredths of 1 % (0.25%) of the assets in each member's account annually. Total contributions made by the city during fiscal year 2020 were: Contribution Amount % of Covered Payroll Required Employee Employer Employee Employer Rate 780 $ 780 5.00% 5.00% 5.00% NOTE 8. DEFINED BENEFIT PENSION PLAN - MONTICELLO FIRE RELIEF ASSOCIATION A. Plan Description All members of the Monticello Fire Department (the Department) are covered by a defined benefit plan administered by the Monticello Fire Relief Association (the Association). As of December 31, 2020, the plan covered 27 active firefighters and 6 retirees and beneficiaries. The plan is a single -employer 49 Notes to the Financial Statements — December 31, 2020 retirement plan that is established and administered in accordance with Minnesota statute, chapter 69. The Association maintains a separate Special fund to accumulate assets to fund the retirement benefits earned by the Department's membership. Funding for the Association is derived from voluntary contributions from the city and 2% fire aid from the State of Minnesota, as well as from investment income. B. Benefits Provided Upon approval by the Board of Trustees, lump sum retirement benefits are either paid or deferred as follows: Each member who is at least 50 years of age, has retired from the fire department, has served at least 10 years of active service with such department before retirement and has been a member of the Association in good standing at least 10 years prior to such retirement, shall be entitled to a lump sum service pension in the amount of $4,200 for each year of service but not exceeding the maximum amount per year of service allowed by law for the minimum average amount of available financing per firefighter as prescribed by laws. A year of service may be prorated to twelve monthly slices, if a full year of active service is not reached. If a member of the Association shall become permanently and totally disabled, the Association shall pay the sum of $4,200 for each year the member was an active member of the Association. If a member who received a disability pension subsequently recovers and returns to active duty, the disability pension is deducted from the service pension as approved by the Board of Trustees. According to the bylaws of the Association and pursuant to Minnesota Statutes, members who retire with less than 20 years of service and have reached the age of 50 years and have completed at least 10 years of active membership are entitled to a reduced service pension not to exceed the amount calculated by multiplying the member's service pension for the completed years of service times an applicable nonforfeitable percentage. During the time a member is on deferred vested pension (not yet reached age 50), they will earn interest on the deferred benefit amount at a rate determined by the Board of Trustees, up to 5%, compounded annually. A deferred vested member will not be eligible for disability benefits. C. Contributions Minnesota statutes, chapters 424 and 424A authorize pension benefits for CITY OF MONTICELLO volunteer fire relief associations. Contributions by the city are determined as follows: • Normal cost for next year (increase in pension benefit obligation) • Plus estimated expenses for next year and 10% of any deficits • Less anticipated income next year and 10% of any surplus The plan is funded by fire state aid, investment earnings and, if necessary, employer contributions as specified in Minnesota statutes and voluntary city contributions (if applicable). The State of Minnesota contributed $128,638 in fire state aid to the plan on behalf of the city Fire Department for the year ended December 31, 2020, which was recorded as a revenue. Required employer contributions are calculated annually based on statutory provisions. The city's statutorily -required contributions to the plan for the year ended December 31, 2020 were $128,638. The city's contributions were equal to the required contributions as set by state statute. The city made no voluntary contributions to the plan. Furthermore, the members have no obligation to contribute to the plan. D. Actuarial Assumptions The total pension liability at December 31, 2020 was determined using the entry age cost method and the following assumptions: Retirement eligibility at 100% service pension at age 50 and 20 years of service, early vested retirement at age 50 with 10 years of service vested at 60% and increased by 4% for each additional year of service up to 20 and eligibility for deferred service pension payable at age 50 and 20 years of service. Benefit increases 2.00% per year Cost of living increases 2.00% per year Investment rate of return 4.25% 20 year municipal bond yield 2.74% E. Pension Costs At December 31, 2020, the city reported a net pension asset of $398,991 for the FRA plan. The total pension liability used to calculate the net pension liability in accordance with GASB 68 was determined by Robinson Associates LLC applying an actuarial formula to specific census data certified by the fire department as of December 31, 2020. For the year ended December 31, 2020, the Fire Department recognized pension expense of $15,871. 50 Notes to the Financial Statements — December 31, 2020 At December 31, 2020, the fire relief reported deferred outflows/inflows of resources as follows: Differences between expected and actual economic experience Changes in actuarial assumptions Net difference between projected and actual investment earnings Deferred Deferred Outflows Inflows of Resources of Resources $ 70,676 $ 198,568 7,419 7,389 - 113,602 $ 78,095 $ 319,559 Amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: $ (241,464) The 4.25% long-term expected rate of return on pension plan investments was determined using a building-block method in which best estimates for expected future real rates of return (expected returns, net of inflation) were developed for each asset class using the plan's target investment allocation along with long-term return expectations by asset class. Inflation expectations were applied to derive the nominal rate of return for the portfolio. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: CITY OF MONTICELLO Pension Yearended Expense December 31, Amount 2021 $ (46,564) 2022 (31,668) 2023 (53,877) 2024 (29,049) 2025 (11,889) Thereafter (68,417) $ (241,464) The 4.25% long-term expected rate of return on pension plan investments was determined using a building-block method in which best estimates for expected future real rates of return (expected returns, net of inflation) were developed for each asset class using the plan's target investment allocation along with long-term return expectations by asset class. Inflation expectations were applied to derive the nominal rate of return for the portfolio. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: CITY OF MONTICELLO F. Changes in the Net Pension Liability (Asset) Beginning balance 12/31/19 Changes for the year Service cost Interest on total pension liability Differences between actual and expected experience in measurement of TPL Contributions from employer Net investment income Administrative expenses Ending balance 12/31/20 G. Discount Rate Total Long-term Target Expected Real Asset Class Allocation Rate of Return Cash 2.3% -0.02% Mutual funds 97.7% 3.22% 100.0% (a -b) F. Changes in the Net Pension Liability (Asset) Beginning balance 12/31/19 Changes for the year Service cost Interest on total pension liability Differences between actual and expected experience in measurement of TPL Contributions from employer Net investment income Administrative expenses Ending balance 12/31/20 G. Discount Rate Total Plan Net Pension Pension Fiduciary Liability Liability (TPL) Net Position (Asset) (a) (b) (a -b) $ 981,203 $ 1,209,943 $ (228,740) 69,921 43,168 69,921 43,168 (20,335) - (20,335) 128,638 (128,638) 139,820 (139,820) (5,453) 5,453 $ 1,073,957 $ 1,472,948 $(398,991) The discount rate used to measure the total pension liability was 4.25%. The projection of cash flows used to determine the discount rate assumed that contributions to the FRA plan will be made as specified in statute. Based on that assumption and considering the funding ratio of the plan, the fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive 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. H. Pension Asset Sensitivity The following presents the city's net pension liability (asset) for the FRA plan, calculated using the discount rate disclosed in the preceding paragraph, as well as what the city's net pension liability (asset) would be if it were calculated using 51 Notes to the Financial Statements — December 31, 2020 a discount rate 1 percentage point lower or 1 percentage point higher than the current discount rate: 1 % Decrease 1 % Increase In Discount Discount In Discount Rate (3.25%) Rate (4.25%) Rate (5.25%) Net Pension Liability (Asset) $ (334,521) $ (398,991) $ (452,983) Pension Plan Fiduciary Net Position The Association issues a publicly available financial report that includes financial statements and required supplementary information. A copy of the report may be obtained at Monticello City Hall. J. Other Pension Information The following is a summary of the net pension assets and liabilities, deferred outflows and inflows of resources, and pension expense reported for the PERA and FRA pension plans as of the year ended December 31, 2020: Pension Plan Deferred Deferred Net Pension Net Pension Outflows of Inflows of Asset Liability Resources Resources Pension Expense State-wide, mulit- employer-PERA $ - $ 3,405,420 $ 309,786 $ 137,777 $ 108,357 Single -employer- FRA 398,991 - 78,095 319,559 15,871 $ 398,991 $ 3,405,420 $ 387,881 $ 457,336 $ 124,228 NOTE 9. OTHER POST -EMPLOYMENT BENEFITS (OPEB) PLAN A. Plan Description The city provides post -employment insurance benefits to certain eligible employees through its OPEB Plan, a single -employer defined benefit plan administered by the city. All post -employment benefits are based on contractual agreements with employee groups. Eligibility for these benefits is based on years of service and/or minimum age requirements. These contractual agreements do not include any specific contribution or funding requirements. The Retiree Health Plan does not issue a publicly available financial report. No plan assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75. CITY OF MONTICELLO B. Benefits Provided All retirees of the city upon retirement have the option under state law to continue their medical insurance coverage through the city. For members of certain employee groups, the city pays for all or part of the eligible retiree's premiums for medical and/or dental insurance from the time of retirement until the employee reaches the age of eligibility for Medicare. Benefits paid by the city differ by bargaining unit and date of hire, with some contracts specifying a certain dollar amount per month, and some covering premium costs as defined within each collective bargaining agreement. Retirees not eligible for these city -paid premium benefits must pay the full city premium rate for their coverage. The city is legally required to include any retirees for whom it provides health insurance coverage in the same insurance pool as its active employees until the retiree reaches Medicare eligibility, whether the premiums are paid by the city or the retiree. Consequently, participating retirees are considered to receive a secondary benefit known as an "implicit rate subsidy." This benefit relates to the assumption that the retiree is receiving a more favorable premium rate than they would otherwise be able to obtain if purchasing insurance on their own, due to being included in the same pool with the city's younger and statistically healthier active employees. C. Contributions The required contribution is based on projected pay-as-you-go financing requirements, with additional amounts to prefund benefits as determined periodically by the city. The city's current year required pay-as-you-go contributions to finance the benefits described in the previous section totaled $2,040. D. Membership Membership in the plan consisted of the following as of the latest actuarial valuation: Retirees and beneficiaries receiving benefits - Active plan members 38 Total members 38 52 Notes to the Financial Statements — December 31, 2020 E. Total OPEB Liability of the City The city's total OPEB liability of $141,276 as of year-end was measured as of January 1, 2020 and was determined by an actuarial valuation as of January 1, 2019. F. Actuarial Assumption The total OPEB liability was determined by an actuarial valuation as of January 1, 2019, using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified: Discount rate 20 -year municipal bond yield Inflation rate Salary increases Medical trend rate 3.80% 3.80% 2.50% 3.00% 6.5% grading to 5.0% over 6 years The actuarial assumptions used in the latest valuation were based on those used to value pension liabilities for Minnesota city employees. The state pension plans base their assumptions on periodic experience studies. Economic assumptions are based on input from a variety of published sources of historical and projected future financial data. Each assumption was reviewed for reasonableness with the source information as well as for consistency with the other economic assumptions. Since the plan is not funded by an irrevocable trust, the discount rate is equal to the 20 -year municipal bond yield rate of 3.80%, which was set by considering published rate information for 20 -year high quality, tax-exempt, general obligation municipal bonds as of the measurement date. Mortality rates were based on the RP -2014 White Collar Mortality Tables with MP - 2018 Generational Improvement Scale. Future retirees electing coverage is assumed to be 50% with 30% of those electing family coverage. G. Changes in the Total OPEB Liability CITY OF MONTICELLO Total OPEB Liability Beginning balance $ 127,649 Changes for the year Service cost 10,457 Interest 5,210 Benefit payments — employer financed (2,040) 13,627 Ending balance $ 141,276 Assumption changes since the prior measurement date include the following: • The health care trend rates were changed to better anticipate short term and long-term medical increases. H. Total OPEB Liability Sensitivity to Discount and Health -Care Cost Trend Rate Changes The following presents the total OPEB liability of the city, as well as what the city's total OPEB liability would be if it were calculated using a discount rate that is 1 percentage point lower or 1 percentage point higher than the current discount rate: 1% Decrease in Discount 1% Increase in Discount Rate Rate Discount Rate OPEB discount rate 2.80% 3.80% 4.80°% Total OPEB liability $152,054 $141,276 $131,134 The following presents the total OPEB liability of the city, as well as what the city's total OPEB liability would be if it were calculated using healthcare cost trend rates that are 1 percentage point lower or 1 percentage point higher than the current healthcare cost trend rates: 1% Decrease in Healthcare Trend 1% Increase in Healthcare Trend Rate Rate Healthcare Trend Rate OPEB medical trend rate 5.50% decreasing to 6.50% decreasing to 7.50% decreasing to 4.00% over 5 years 5.00% mer 5 years 6.00% over 5 years Total OPEB liability $125,440 $141,276 $159,932 53 Notes to the Financial Statements — December 31, 2020 OPEB Expense and Related Deferred Outflows of Resources and Deferred Inflows of Resources For the current year ended, the city recognized OPEB expense/(benefit) of ($11,411). As of year-end, the city reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Deferred Outflows Inflows of Resources of Resources Liability gains $ $ 133,919 Assumption changes 11461 Benefit payments after the measurement date 3,765 - Total $ 3,765 $ 135,380 Amounts reported as deferred outflows and inflows of resources related to OPEB, excluding benefit payments after the measurement date, will be recognized in OPEB expense as follows: OPEB Year Ending Expense June 30, Amount 2021 $ (27,078) 2022 (27,078) 2023 (27,078) 2024 (27,078) 2025 (27,068) $ (135,380) NOTE 10. RISK MANAGEMENT AND LITIGATION The city is exposed to various risks of losses related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. For the past several years, the city has obtained insurance coverage from various trusts administered by the League of Minnesota Cities (LMCIT). Additionally, the city has effectively managed risk through various employee education and prevention programs. All risk management activities are accounted for in the appropriate fund. Expenditures and claims are recognized when it is probable that a loss has CITY OF MONTICELLO occurred, the amount of the loss can be reasonably estimated, and the loss amount exceeds insurance coverage. In determining claims, events that might create claims, but for which none have been reported, are considered. The city attorney estimates that the amount of actual or potential claims against the city as of December 31, 2020 will not materially affect the financial condition of the city. Workers compensation coverage is procured through Travelers Insurance, a private insurance company. The city has never had to contribute any additional funds beyond the annual standard premium and deductibles, which is $1,000 per occurrence. The city's annual premium reflects a base rate based on number of employees, total employee compensation, and history of workplace injuries. The city provides health benefit coverage to all full-time employees and certain part-time employees who meet personnel policy set criteria. The city pays a portion of the premium, which is set annually by council action, and is not obligated to make any other payments. The city also purchases property, vehicle, liability and various other insurance coverages from the LMCIT. The standard deductible for most claims is $1,000. State statute sets tort limits for most liability claims at $500,000 per individual and $1,500,000 for all claimants for one incident. Annually, the council can waive the tort limits, but has chosen not to without exception. The city periodically receives a dividend from LMCIT and has never had to contribute additional funds beyond premiums and deductibles. There were no significant reductions in insurance coverages from the previous year and there were no settlements in excess of insurance coverage in each of the past three years. NOTE 11. CLAIMS AND JUDGMENTS The city participates in a number of federal and state programs that are fully or partially funded by grants received from other governmental units. Expenditures financed by grants are subject to audit by the appropriate grantor government. If expenditures are disallowed due to noncompliance with grant program regulations, the city may be required to reimburse the grantor government. As of December 31, 2020, significant amounts of grant expenditures have not been audited by the granting agency, but the city believes that disallowed expenditures discovered in subsequent audits, if any, will not have a material effect on any of the individual funds or the overall financial position of the city. 54 Notes to the Financial Statements — December 31, 2020 NOTE 12. CONCENTRATION OF REVENUES Cargill Kitchen Solutions is the largest customer of water and sewage services. The company's water purchases account for $81,436, or 5.3 percent, of Water Fund operating revenue; and the company's sewage charges account for $415,408, or 16.2 percent, of Sewage Fund operating revenue. Additionally, Northern States Power Company's (Xcel Energy) net tax capacity for property taxes payable in 2020 is $16,079,435, or 52.5 percent, of the total net capacity of $30,610,915. Accordingly, Xcel Energy's share of the $10.8 million city property tax levy is $5.67 million. The tax capacity on January 1, 2020, is based on market values certified to the state on January 1, 2019. NOTE 13. SUBSEQUENT EVENTS Beginning early in 2020, the worldwide spread of the novel coronavirus (COVID- 19) has caused significant volatility in the economy and financial markets. There is significant uncertainty about the breadth and duration of potential business disruptions related to COVID-19, and its economic impact in the U.S. and around the world. At this time, the city is unable to determine what effect this may have on its future financial condition and operations. CITY OF MONTICELLO NOTE 14. INTERFUND TRANSFERS Interfund transfers for the year ended December 31, 2020 are as follows: Governmental funds: General Community Center Economic Development Authority Debt Service Capital Projects Nonmajor governmental Total governmental funds Enterprise funds: Water Liquor Total enterprise funds Total Transfers In Transfers Out $ - $ 1,000,000 425,000 - - 200,000 200,000 - 1,900,000 - 235,000 - 2,760,000 1,200,000 - 900,000 - 660,000 - 1,560,000 $ 2,760,000 $ 2,760,000 The following schedule reflects each fund transfer: Transfers In Transfers Out Amount Community Center Debt Service Capital Projects Nonmajor governmental Liquor $ 425,000 (1) Economic Development Authority 200,000 (2) General 1,000,000 (3) Water 900,000 (3) Liquor 235,000 (3) Total $2,760,000 (1) Transferto fund roofing projectand impacts related to COVID-19 pandemic (2) Transferfor principal and interest payments on 2011Adebtissue. (3) Transfer for project and equipment related funding. 55 Notes to the Financial Statements — December 31, 2020 NOTE 15. FUND BALANCES At December 31, 2020, a summary of the city's governmental fund balance classifications are as follows: Special Revenue Funds Economic Debt General Community Development Service Fund Center Authority Fund CITY OF MONTICELLO Capital Nonmajor Projects Funds Total Nonspendable Prepaid items $ 145,603 $ 23,482 $ 3,186 $ - $ - $ 932 $ 173,203 Restricted Debt service - - - 1,304,532 - - 1,304,532 Capital improvements - - - - 820,516 - 820,516 Economic development - - 1,396,467 - - 924,538 2,321,005 Perpetual cemetery care - - - - 54,407 54,407 Tax increment - - 507,717 - - - 507,717 Total restricted - - 1,904,184 1,304,532 820,516 978,945 5,008,177 Assigned Capital improvements - - - - 16,337,080 3,381,062 19,718,142 Economic development - - 4,611,335 - - - 4,611,335 Community center operations - 28,875 - - - - 28,875 Total assigned - 28,875 4,611,335 - 16,337,080 3,381,062 24,358,352 Unassigned 6,494,632 - - - - - 6,494,632 Total $ 6,640,235 $ 52,357 $ 6,518,705 $ 1,304,532 $ 17,157,596 $ 4,360,939 $ 36,034,364 56 nk' REQUIRED SUPPLEMENTARY INFORMATION CITY OF MONTICELLO Required Supplementary Information Schedule of Employer's Share and Non -Employer Proportionate Share of Net Pension Liability - Public Employees Retirement Association Last Ten Fiscal Years (1) General Employees Retirement Fund (1) The city implemented GASB Statement No. 68 in fiscal 2015 (using a June 30, 2015 measurement date). This schedule is intended to present 10 -year trend information. Additional years will be added as they become available. (2) For purposes of this schedule, covered employee payroll is defined as "pensionable wages." 57 Employer's Employer's Proportionate Share Proportionate Share PERA of the State of of the Net Pension Fiscal Employer's Minnesota's Total Employer's Liability as a Plan Fiduciary Net Year Employer's Proportion Proportionate Share Proportionate Share Proportionate Share (2) Percentage of Position as a Ending (Percentage) of the (Amount) of the Net of the Net Pension of the Net Pension Covered Employee Covered Employee Percentage of the June 30, Net Pension Liability Pension Liability Liability Liability Payroll Payroll Total Pension Liability 2015 0.0578% $2,995,496 $0 $2,995,496 $3,395,756 88.21% 78.2% 2016 0.0588% 4,774,268 62,387 4,836,655 3,651,024 130.77% 68.9% 2017 0.0549% 3,504,780 44,041 3,548,821 3,534,506 99.16% 75.9% 2018 0.0550% 3,051,175 100,077 3,151,252 3,697,145 82.53% 79.5% 2019 0.0565% 3,123,758 96,996 3,220,754 3,997,826 78.14% 80.2% 2020 0.0568% 3,405,420 104,919 3,510,339 4,048,023 84.13% 79.1% (1) The city implemented GASB Statement No. 68 in fiscal 2015 (using a June 30, 2015 measurement date). This schedule is intended to present 10 -year trend information. Additional years will be added as they become available. (2) For purposes of this schedule, covered employee payroll is defined as "pensionable wages." 57 CITY OF MONTICELLO Required Supplementary Information Schedule of Employer's Pension Contributions - Public Employees Retirement Association Last Ten Fiscal Years (1) General Employees Retirement Fund Fiscal Year Contributions in Relation to the Ending Statutorily Required Statutorily Required (2) Contributions as a Percentage of December Contributions Contributions Contribution Deficiency (Excess) Covered Employee Payroll Covered Employee Payroll 31, (a) (b) (a -b) (c) (b/c) 2015 $ 266,042 $ 266,042 $ $ 3,547,217 7.5% 2016 267,516 267,516 3,566,884 7.5% 2017 269,721 269,721 3,596,280 7.5% 2018 287,700 287,700 3,835,998 7.5% 2019 308,216 308,216 4,109,547 7.5% 2020 304,809 304,809 4,064,114 7.5% (1) The city implemented GASB Statement No. 68 in fiscal 2015 using a June 30, 2015 measurement date. This schedule is intended to present 10 -year trend information. Additional years will be added as they become available. (2) For purposes of this schedule, covered employee payroll is defined as "pensionable wages." 58 Required Supplementary Information Schedule of Changes in the Fire Relief Association's Net Pension Liability (Asset) and Related Ratios Last Ten Fiscal Years (1) Total pension liability Service cost Interest Changes in benefit terms Experience gain/(loss) Effect of changes in assumptions Benefit payments, including refund of member contributions Net change in total pension liability Total pension liability - beginning Total pension liability - ending (A) Plan fiduciary net position Contributions - State Supplemental benefits reimbursements Net investment income Benefit payments, including refund of member contributions Administrative expenses Net change in plan fiduciary net position Plan fiduciary net position - beginning Plan fiduciary net position - ending (B) Net pension liability (asset) - ending (A) -(B) Plan fiduciary net position as a percentage of the total pension liability Covered employee payroll (2) Net pension liability as a percentage of covered employee payroll (2) CITY OF MONTICELLO 2015 2016 2017 2018 2019 2020 $ 77,343 $ 79,730 $ 66,097 $ 71,325 $ 69,774 $ 69,921 41,888 44,224 49,857 49,897 50,829 43,168 - 90,761 67,016 74,540 - - (53,156) (30,666) 94,235 (148,892) (20,335) (10,673) - 8,770 (128,101) (1,168) (164,699) (121,900) (321,833) - (8,870) 160,391 (23,068) 168,097 (341,352) 92,754 1,026,005 1,017,135 1,177,526 1,154,458 1,322,555 981,203 $ 1,017,135 $ 1,177,526 $ 1,154,458 $ 1,322,555 $ 981,203 $ 1,073,957 $ 120,027 $ 123,656 $ 125,764 $ 130,874 $ 122,639 $ 128,638 2,000 - 2,000 1,000 5,068 - (17,673) 55,902 126,579 (54,150) 172,359 139,820 (128,101) (1,168) (164,699) (121,900) (321,833) - (3,532) (4,144) (4,331) (4,929) (5,204) (5,453) (27,279) 174,246 85,313 (49,105) (26,971) 263,005 1,053,739 1,026,460 1,200,706 1,286,019 1,236,914 1,209,943 $ 1,026,460 $ 1,200,706 $ 1,286,019 $ 1,236,914 $ 1,209,943 $ 1,472,948 (9,325) (23,180) (131,561) 85,641 (228,740) (398,991) 100.9% 102.0% 111.4% 93.5% 123.3% 137.2% N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A (1) The city implemented GASB Statement No. 68 in fiscal 2015 using a December 31, 2015 measurement date. This schedule is intended to present 10 -year trend information. Additional years will be added as they become available. (2) The Association is comprised of volunteers, therefore, there are no payroll expenditures (i.e., there are no covered employee payroll percentage calculations). 59 CITY OF MONTICELLO Required Supplementary Information Schedule of Employer's Pension Contributions - Monticello Fire Department Relief Association Last Ten Fiscal Years (1) The city implemented GASB Statement No. 68 in fiscal 2015 using a December 31, 2015 measurement date. This schedule is intended to present 10 -year trend information. Additional years will be added as they become available. Note: The Association is comprised of volunteers, therefore, there are no payroll employee expenditures (i.e., there are no covered employee payroll percentage calculations). City Contributions City Fiscal Statutorily Required Actual Contributions Contribution Deficiency Non -Employer Year Ending Contributions Paid (Excess) Contribution - State 2% December 31, (a) (b) (a -b) Fire Aid 2015 $ $ $ $ 120,027 2016 123,656 2017 125,764 2018 130,874 2019 122,639 2020 128,638 (1) The city implemented GASB Statement No. 68 in fiscal 2015 using a December 31, 2015 measurement date. This schedule is intended to present 10 -year trend information. Additional years will be added as they become available. Note: The Association is comprised of volunteers, therefore, there are no payroll employee expenditures (i.e., there are no covered employee payroll percentage calculations). Required Supplementary Information Schedule of Changes in the City's Total OPEB Liability and Related Ratios Last Ten Fiscal Years (1) Total OPEB liability Service cost Interest Changes in assumptions Differences between expected and actual experience Benefit payments Net change in total OPEB liability Total OPEB liability - beginning Total OPEB liability - ending Covered employee payroll Net OPEB liability as a percentage of covered employee payroll CITY OF MONTICELLO 2018 2019 2020 $ 24,158 $ 10,152 $ 10,457 9,998 10,347 5,210 - (2,047) - (187,489) (5,938) (13,277) (2,040) 28,218 (182,314) 13,627 281,745 309,963 127,649 $ 309,963 $ 127,649 $ 141,276 $ 3,130,628 $ 2,462,725 $ 2,536,607 10% 5% 6% (1) The city implemented GASB Statement No. 75 in fiscal 2018 using a January 1, 2018 measurement date. This schedule is intended to present 10 -year trend information. Additional years will be added as they become available. 61 CITY OF MONTICELLO Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual - General Fund For the Year Ended December 31, 2020 Original and Final Variance with Budget Actual Final Budget Revenues Property taxes $ 6,807,500 $ 6,797,640 $ (9,860) Franchise taxes 250,500 194,000 (56,500) Special assessments 200 166 (34) Licenses and permits 407,200 521,369 114,169 Intergovernmental 397,200 737,650 340,450 Charges for services 857,300 936,731 79,431 Fines and forfeitures 40,400 31,852 (8,548) Investment earnings 80,000 138,968 58,968 Other revenues 62,700 431,683 368,983 Total revenues 8,903,000 9,790,059 887,059 Expenditures: Current General government Mayor and council 57,798 52,589 (5,209) City administration 491,649 789,820 298,171 City clerk 150,400 180,824 30,424 Finance 491,791 451,819 (39,972) Audit 44,000 39,559 (4,441) City assessing 73,000 70,115 (2,885) Legal 37,000 29,340 (7,660) Human resources 129,407 142,232 12,825 Planning and zoning 331,630 339,005 7,375 City hall 65,095 60,501 (4,594) Prairie center building 18,549 14,857 (3,692) Public safety Law enforcement 1,532,621 1,524,150 (8,471) Fire and rescue 457,772 414,399 (43,373) Fire relief 130,000 131,638 1,638 Building inspections 443,860 354,251 (89,609) Emergency Management 5,000 257,565 252,565 Animal control 52,755 49,522 (3,233) National Guard 14,000 12,429 (1,571) (continued) 62 CITY OF MONTICELLO Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual - General Fund For the Year Ended December 31, 2020 (Continued) Original and Final Variance with Budget Actual Final Budget Expenditures (continued) Public works Public works administration $ 224,484 $ 221,881 $ (2,603) Engineering 116,662 80,432 (36,230) Public works inspecitons 111,035 102,110 (8,925) Streets and alleys 1,061,105 777,633 (283,472) Ice and snow removal 328,990 326,120 (2,870) Shop and garage 214,727 199,310 (15,417) Street lighting 250,500 191,829 (58,671) Sanitation Refuse and recycling collection 686,776 681,948 (4,828) Recreation and culture Senior center 107,452 103,662 (3,790) Park operations 1,078,841 1,040,665 (38,176) Park ballfields 27,400 23,685 (3,715) Shade tree 85,892 79,024 (6,868) Public arts 35,664 36,092 428 Library 47,145 48,068 923 Total expenditures 8,903,000 8,827,074 (75,926) Excess (deficiency) of revenues over expenditures - 962,985 962,985 Other financing uses Transfers out (1,000,000) (1,000,000) Net change in fund balance - (37,015) (37,015) Fund balance at beginning of year 6,677,250 6,677,250 Fund balance at end of year $ 6,677,250 $ 6,640,235 $ (37,015) 63 CITY OF MONTICELLO Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual - Community Center Fund For the Year Ended December 31, 2020 Original and Final Variance with Budget Actual Final Budget Revenues Property taxes $ 417,000 $ 417,000 $ - Intergovernmental - 42,827 42,827 Charges for services 1,577,800 496,912 (1,080,888) Investment earnings 2,000 1,084 (916) Other revenues 11,200 53,203 42,003 Total revenues 2,008,000 1,011,026 (996,974) Expenditures Current Recreation and culture Operations 486,428 465,919 (20,509) Rentals 40,406 737 (39,669) Aquatics 222,283 82,967 (139,316) Concessions & guest services 193,283 89,602 (103,681) Maintenance 664,374 506,372 (158,002) Programming 301,226 109,981 (191,245) Capital outlay Recreation and culture Maintenance 100,000 367,573 267,573 Total expenditures 2,008,000 1,623,151 (384,849) Excess (deficiency) of revenues over expenditures - (612,125) (612,125) Other financing sources Transfers in 425,000 425,000 Net change in fund balance - (187,125) (187,125) Fund balance at beginning of year 239,482 239,482 Fund balance at end of year $ 239,482 $ 52,357 $ (187,125) 64 CITY OF MONTICELLO Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual - Economic Development Authority Fund For the Year Ended December 31, 2020 Expenditures Original and Final Variance with Current Budget Actual Final Budget Revenues Property taxes $ 355,000 $ 355,080 $ 80 Tax increments 617,344 707,824 90,480 Intergovernmental - 185,000 185,000 Investment earnings 40,000 69,099 29,099 Interest on loans - 3,739 3,739 Other revenues - 2,280 2,280 Total revenues 1,012,344 1,323,022 310,678 Expenditures Current Economic development General operations 216,000 300,232 84,232 Land held for resale adjustment 144,000 245,118 101,118 Developmental activities 290,344 1,372,231 1,081,887 Total expenditures 650,344 1,917,581 1,267,237 Excess (deficiency) of revenues over expenditures 362,000 (594,559) (956,559) Other financing uses Transfers out (200,000) (200,000) Net change in fund balance 162,000 (794,559) (956,559) Fund balance at beginning of year 7,313,264 7,313,264 Fund balance at end of year $ 7,475,264 $ 6,518,705 $ (956,559) 65 Notes to the Required Supplementary Information — December 31, 2020 CITY OF MONTICELLO NOTE 1. SCHEDULE OF EMPLOYER'S SHARE AND NON - EMPLOYER PROPORTIONATE SHARE OF NET PENSION LIABILITY — PUBLIC EMPLOYEES RETIREMENT ASSOCIATION The following changes were reflected in the valuation performed on behalf of the Public Employees Retirement Association for the year ended June 30: 2020 Changes in Actuarial Assumptions • The price inflation assumption was decreased from 2.50% to 2.25%. • The payroll growth assumption was decreased from 3.25% to 3.00%. • 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 changed as recommended in the June 30, 2019 experience study. The new rates are based on service and are generally lower than the previous rates for years 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 & Survivor option changed from 35% to 45%. The assumed number of married female new retirees electing the 100% Joint & 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% after. Augmentation was eliminated for privatizations occurring after June 30, 2020. 2019 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 in Actuarial Assumption • The morality projection scale was changed from MP -2015 to MP -2017. • The assumed benefit increase was changed from 1.00% per year through 2044 and 2.50% 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 in Actuarial Assumption • The Combined Service Annuity (CSA) loads were changed from 0.8% for active members and 60% for vested and non -vested deferred members. The revised CSA loads are now 0.00% for active member liability, 15.00% for vested deferred member liability, and 3.00% for nonvested deferred member liability. The assumed post-retirement benefit increase rate was changed from 1.00% per year for all years to 1.00% per year through 2044, and 2.50% per year thereafter. Notes to the Required Supplementary Information — December 31, 2020 CITY OF MONTICELLO Changes in Plan Provisions • The State's contribution for the Minneapolis Employees Retirement Fund equals $16,000,000 in 2017 and 2018, and $6,000,000 thereafter. • The Employer Supplemental Contribution for the Minneapolis Employees Retirement Fund changed from $21,000,000 to $31,000,000 in calendar years 2019 to 2031. The state's contribution changed from $16,000,000 to $6,000,000 in calendar years 2019 to 2031. 2016 Changes in Actuarial Assumptions • The assumed postretirement benefit increase rate was changed from 1.00% per year through 2035 and 2.50% per year thereafter to 1.00% per year for all years. • The assumed investment return was changed from 7.90% to 7.50%. The single discount rate changed from 7.90% to 7.50°/x. • Other assumptions were changed pursuant to the experience study June 30, 2015. The assumed future salary increases, payroll growth, and inflation were decreased by 0.25% to 3.25% for payroll growth and 2.50% for inflation. Changes in Actuarial Plan Provisions • There have been no changes since the prior valuation. 2015 Changes in Actuarial Assumptions • The assumed postretirement benefit increase rate was changed from 1.00% per year through 2030 and 2.50% per year thereafter to 1.00% per year through 2035 and 2.50% 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 increase 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. NOTE 2. SCHEDULE OF CHANGES IN THE FIRE RELIEF ASSOCIATION'S NET PENSION LIABILITY (ASSET) AND RELATED RATIOS Changes in Actuarial Assumptions and Benefit Terms • 2019 — The discount rate was decreased from 4.42% to 4.25%, which is primarily due to a lower weighted average rate of return on the FRA's asset classes of investments. • 2018 — The benefit level was increased from $3,900 to $4,200 per year of service. • 2017 — The annual turnover rate was changed from 10% to 1 %. The discount rate was increased from 4.19% to 4.42%, which is primarily due to a reduction in the portfolio's average expense load. The benefit level was increased from $3,600 to $3,900 per year of service. • 2016 — The benefit level was increased from $3,300 to $3,600 per year of service. NOTE 3. SCHEDULE OF CHANGES IN THE CITY'S TOTAL OPEB LIABILITY AND RELATED RATIOS Changes in Actuarial Assumptions • 2020 — The healthcare trend rate was changed to better anticipate short-term and long-term medical increases. • 2019 — The discount rate was increased from 3.3% to 3.8%. The health care trend rates were changed to better anticipate short term and long- term medical increases. The mortality tables were updated from the RP -2014 White Collar Mortality Tables with MP -2016 Generational Improvement Scale to the RP -2014 White Collar Mortality Tables with MP -2018 Generational Improvement Scale. The percentage of retirees electing single or family coverage was updated to reflect that the city sponsored plan has separated single and family premium rates, rather than a composite rate. The assumption was changed that 50% of eligible retirees will elect to continue coverage and 30% of retirees with coverage will elect family coverage. • 2018 — The discount rate was decreased from 3.5% to 3.3%. NOTE 4. BUDGETARY INFORMATION A. Budgetary basis of accounting The city follows these procedures in establishing the budgetary data reflected in the basic financial statements: A. Prior to September 1, the city administrator submits to the city council a proposed operating budget for the fiscal year commencing the following January 1. The operating budget includes proposed expenditures and the means of financing them. The city council provides input and adjustments. Based on the proposed budget, the city council certifies the proposed property tax levy to the county auditor according to Minnesota Statutes before September 30. B. Public hearings are conducted at the city council's chambers in the Monticello Community Center. 67 Notes to the Required Supplementary Information — December 31, 2020 CITY OF MONTICELLO C. On or before December 28, the final budget is legally enacted by city council resolution and the final property tax levy is certified to the county auditor. D. Management is authorized to transfer budgeted amounts between departments within a fund; however, any revisions that alter the total expenditures of any fund must be approved by the city council. E. The city has legally adopted budgets for the General Fund and all special revenue funds. Expenditures may not legally exceed budgeted appropriations at the total fund level. Monitoring of budgets is maintained at the department level. All amounts over budget have been approved by the city council through the disbursement process. The city is not legally required to adopt an annual budget for the nonmajor special revenue funds, the Debt Service Fund, and the Capital Projects Funds. Project - length financial plans are adopted for the Debt Service and Capital Projects Funds. F. Budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America. Budgeted amounts are as originally adopted or amended by the city council. All annual appropriations lapse at year-end. B. Excess of expenditures over appropriations For the year ended December 31, 2020, expenditures exceeded appropriations in the Economic Development Authority special revenue fund by $1,267,237. The excess of expenditures was related to an unbudgeted qualifying TIF expenditure for land acquisition in the new 1-41 TIF district that will be certified in 2021. Fund balance reserves were used to fund the expenditures. Monticello NONMAJOR GOVERNMENTAL FUNDS NONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS are used to account for revenue derived from specific taxes or other earmarked revenue sources (other than for major capital projects) that are restricted by law or administrative action to expenditures for specified purposes. Small Cities Development Program (SCDP) Fund - Established to account for the administration of loans to local businesses while following state and federal guidelines. Cemetery Fund — Established to account for the activities of cemetery operations at Riverside Cemetery. CDBG Revitalization Fund — Established to account for funding and activities for the CDBG Revitalization Grant. CAPITAL PROJECTS FUNDS are used to account for resources used for the acquisition and construction of capital assets by the city, except for those financed by proprietary funds. City Street Reconstruction Fund—This fund was established to account for annual improvements to the city's infrastructure based on a reconstruction schedule. Street Lighting Improvement Fund — This fund was established to account for activities incorporating street lighting into designated areas throughout the city. A portion of the city's electric franchise fee is the main revenue source for this fund. Park and Pathway Dedication Fund — This fund was established to account for restricted fees collected from developers for park land acquisition and for park and pathway improvements. The fund also accumulates resources from other sources used for the same purposes. Combining Balance Sheet Nonmajor Governmental Funds December 31, 2020 ASSETS Cash and investments Receivables Deferred special assessments Accounts Prepaid items Notes receivable Total assets LIABILITIES Accounts and contracts payable DEFERRED INFLOWS OF RESOURCES Unavailable revenue - special assessments FUND BALANCES Nonspendable Restricted for economic development Restricted for cemetery operations Assigned for capital improvements Total fund balances Total liabilities, deferred inflows of resources, and fund balances CITY OF MONTICELLO Special Revenue Funds Capital Project Funds Small Cities City Street Street Park & Development CDBG - Recon- Lighting Pathway Program Cemetery Revitalization struction Improvement Dedication Total $ 756,345 $ 51,742 $ $ 1,667,656 $ 899,269 $ 772,915 $ 4,147,927 - - - - 12,004 12,004 3,065 96,659 - 99,724 - 932 - 932 168,193 - - - 168,193 $ 924,538 $ 55,739 $ $ 1,667,656 $ 995,928 $ 784,919 $ 4,428,780 $ - $ 400 $ $ - $ - $ 55,437 $ 55,837 - 12,004 12,004 - 932 - 932 924,538 - 924,538 - 54,407 - - - 54,407 - - 1,667,656 995,928 717,478 3,381,062 924,538 55,339 1,667,656 995,928 717,478 4,360,939 $ 924,538 $ 55,739 $ $ 1,667,656 $ 995,928 $ 784,919 $ 4,428,780 Combining Statement of Revenues, Expenditures and Changes in Fund Balance Nonmajor Governmental Funds For the Year Ended December 31, 2020 Revenues Franchise taxes Special assessments Intergovernmental Charges for services Investment earnings Interest on loans Other revenues Total revenues Expenditures Current Recreation and culture Economic development Capital outlay Public works Recreation and culture Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources Transfers in Net change in fund balance Fund balance at begining of year Fund balance at end of year CITY OF MONTICELLO 70 Special Revenue Funds Capital Project Funds Small Cities City Street Street Park & Development CDBG - Recon- Lighting Pathway Program Cemetery Revitalization struction Improvement Dedication Total $ $ $ $ $ 190,336 $ - $ 190,336 - 1,033 1,033 15,000 - 15,000 40,884 - - 40,884 15,277 701 33,886 17,709 19,365 86,938 4,896 - - - - 4,896 - - - - 29,395 29,395 20,173 56,585 33,886 208,045 49,793 368,482 27,321 - - - 27,321 - 392 - 392 - 621 - 621 - - - 506,656 506,656 - 27,321 392 - 621 506,656 534,990 20,173 29,264 (392) 33,886 207,424 (456,863) (166,508) - - - - - 235,000 235,000 20,173 29,264 (392) 33,886 207,424 (221,863) 68,492 904,365 26,075 392 1,633,770 788,504 939,341 4,292,447 $ 924,538 $ 55,339 $ - $ 1,667,656 $ 995,928 $ 717,478 $ 4,360,939 70 nk' INTERNAL SERVICE FUNDS INTERNAL SERVICE FUNDS INTERNAL SERVICE FUNDS are used to account for the financing of centralized services to city departments on a cost -reimbursement basis (including depreciation). Benefit Accrual Fund — This fund was established to account for resources accumulated to satisfy paid -time -off (PTO) and vacation/sick leave liabilities of governmental fund employees. Central Equipment Fund — This fund was established to account for equipment purchases and rental to various governmental fund departments. Information Technology (IT) Services Fund — This fund was established to account for the accumulation and distribution of various IT related costs, including communications, software support, capital and non -capital equipment, and software purchases. CITY OF MONTICELLO Combining Statement of Net Position Internal Service Funds December 31, 2020 Benefit Central IT Accrual Equipment Services Total ASSETS Current assets Cash and investments $ 339,355 $ 579,335 $ 285,902 $ 1,204,592 Accounts receivable - - 30 30 Total current assets 339,355 579,335 285,932 1,204,622 Noncurrent assets Capital assets Machinery and equipment - 2,312,841 185,316 2,498,157 Less accumulated depreciation (845,005) (40,336) (885,341) Total noncurrent assets - 1,467,836 144,980 1,612,816 TOTAL ASSETS 339,355 2,047,171 430,912 2,817,438 LIABILITIES Current liabilities Accounts payable - - 30,992 30,992 Accrued interest payable 280 - 280 Bonds payable due within one year - 60,000 60,000 Compensated absences due within one year 184,805 - - 184,805 Total current liabilities 184,805 60,280 30,992 276,077 Noncurrent liabilities Bonds payable, net current portion - 180,000 - 180,000 Compensated absences payable 126,853 - 126,853 Total noncurrent liabilities 126,853 180,000 - 306,853 TOTAL LIABILITIES 311,658 240,280 30,992 582,930 NET POSITION Net investment in capital assets - 1,227,836 144,980 1,372,816 Unrestricted 27,697 579,055 254,940 861,692 TOTAL NET POSITION $ 27,697 $ 1,806,891 $ 399,920 $ 2,234,508 71 CITY OF MONTICELLO Combining Statement of Revenues, Expenses and Changes in Net Position Internal Service Funds For the Year Ended December 31, 2020 Benefit Central IT Accrual Equipment Services Total Operating revenues Charges to other funds $ 6,541 $ 330,800 $ 225,000 $ 562,341 Other revenues - - 90 90 Total operating revenues 6,541 330,800 225,090 562,431 Operating expenses Personal services 6,541 - - 6,541 Materials and supplies - 110,502 110,502 Other services and charges - 235,292 235,292 Depreciation - 191,486 7,468 198,954 Total operating expenses 6,541 191,486 353,262 551,289 Operating income - 139,314 (128,172) 11,142 Nonoperating revenues (expenses) Intergovernmental - - 209,388 209,388 Investment earnings 6,927 12,421 5,531 24,879 Interest expense - (10,168) - (10,168) Total nonoperating revenues (expenses) 6,927 2,253 214,919 224,099 Change in net position 6,927 141,567 86,747 235,241 Net position at beginning of year 20,770 1,665,324 313,173 1,999,267 Net position at end of year $ 27,697 $ 1,806,891 $ 399,920 $ 2,234,508 72 CITY OF MONTICELLO Combining Statement of Cash Flows Internal Service Funds For the Year Ended December 31, 2020 Benefit Central IT Accrual Equipment Services Total Cash flow from operating activities Cash received from internal services provided $ 6,541 $ 330,800 $ 225,090 $ 562,431 Cash paid to suppliers for goods and services - - (323,543) (323,543) Net cash provided by operating activities 6,541 330,800 (98,453) 238,888 Cash flows from noncapital financing activities Intergovernmental revenues - - 209,388 209,388 Cash flows from capital and related financing activities Acquisition of capital assets (375,450) (127,144) (502,594) Principal payments on long-term debt (125,000) (125,000) Interest and fiscal charges paid on long-term debt (10,341) (10,341) Net cash (used) by capital and related financing activities - (510,791) (127,144) (637,935) Cash flows from investing activities Interest on investments 6,927 12,421 5,531 24,879 Increase in cash and cash equivalents 13,468 (167,570) (10,678) (164,780) Cash and cash equivalents - January 1 325,887 746,905 296,580 1,369,372 Cash and cash equivalents - December 31 $ 339,355 $ 579,335 $ 285,902 $ 1,204,592 Reconciliation of operating income (loss) to net cash provided by operating activities: Operating income (loss) $ $ 139,314 $ (128,172) $ 11,142 Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided by Operating Activities: Depreciation 191,486 7,468 198,954 Changes in assets and liabilities: Increase (decrease) in accounts payable - - 22,251 22,251 Increase (decrease) in compensated absences 6,541 - - 6,541 Net cash provided by operating activities $ 6,541 $ 330,800 $ (98,453) $ 238,888 73 CITY OF MonticeRo (This page left blank intentionally) 74 OTHER SUPPLEMENTARY SCHEDULES CITY OF MONTICELLO Schedule of Revenues (Sources) and Expenditures (Uses) General Fund For the Year Ended December 31, 2020 (continued) 75 2020 Variance with 2016 2017 2018 2019 Final 2020 Final Actual Actual Actual Actual Budget Actual Budget Revenue and other sources - summary: Property taxes $ 6,204,429 $ 6,384,444 $ 6,634,769 $ 6,689,647 $ 6,807,500 $ 6,797,640 $ (9,860) Franchise taxes 263,900 250,000 245,000 211,000 250,500 194,000 (56,500) Special assessments 242 2,290 206 802 200 166 (34) Licenses and permits 668,602 600,933 504,464 603,925 407,200 521,369 114,169 Intergovernmental 389,005 429,697 428,443 431,004 397,200 737,650 340,450 Charges for services 421,762 477,436 590,106 792,311 857,300 936,731 79,431 Fines and forfeitures 30,656 36,702 45,350 40,054 40,400 31,852 (8,548) Investment earnings 99,237 120,631 106,767 228,216 80,000 138,968 58,968 Other 193,723 191,212 134,688 236,037 62,700 431,683 368,983 Other Financing Sources 11,180 1,725 15,000 54,340 - - - Total Revenues & Other Sources 8,282,736 8,495,070 8,704,793 9,287,336 8,903,000 9,790,059 887,059 Revenue and other sources - detail: Property taxes Propertytax- current 6,152,157 6,277,737 6,567,152 6,649,999 6,788,000 6,758,778 (29,222) Propertytax- delinquent 31,704 71,029 46,482 17,832 - 15,998 15,998 Mobile home tax 16,324 17,620 18,984 18,202 17,500 20,152 2,652 Penalties and interest - taxes 4,244 18,058 2,151 3,614 2,000 2,712 712 Franchise taxes Franchise taxes - electric 263,900 250,000 245,000 211,000 250,500 194,000 (56,500) Special assessments Assessment for services/projects 242 2,290 206 802 200 166 (34) Licenses and permits Liquor license 45,895 46,205 50,295 52,303 48,100 37,512 (10,588) Beer license 1,013 1,151 1,988 - - - - Other business licenses & permits 5,295 6,387 6,840 7,540 5,200 6,430 1,230 Building permits 598,983 520,692 427,644 520,409 340,000 461,383 121,383 Variance/conditional use permits - 200 - - - 200 200 Driveway permits 30 360 180 510 200 275 75 Mobile home permits 180 868 720 2,551 300 540 240 Excavation permits 7,125 6,405 7,410 6,720 5,000 8,375 3,375 Right-of-way permits 3,144 4,610 3,707 4,567 3,000 3,061 61 Sign/banner permits 5,694 9,355 4,815 6,020 4,500 2,840 (1,660) Animal licenses 1,243 4,700 865 3,305 900 753 (147) Intergovernmental Pera increase aid 6,741 6,822 6,849 6,741 - - - Federal - operating - - - - - 274,315 274,315 State highway aid - operating 131,898 134,955 155,374 155,211 152,000 171,913 19,913 Fire department aid - operating 123,656 133,813 130,874 123,640 130,000 131,638 1,638 Police department aid - operating 68,710 70,959 71,834 81,708 69,000 84,631 15,631 County operating grant - streetthighway 55,780 26,875 27,353 26,428 25,000 30,947 5,947 (continued) 75 CITY OF MONTICELLO Schedule of Revenues (Sources) and Expenditures (Uses) General Fund For the Year Ended December 31, 2020 (Continued) (continued) 76 2020 Variance with 2016 2017 2018 2019 Final 2020 Final Actual Actual Actual Actual Budget Actual Budget Intergovernmental (continued) County operating grant - emergency management $ 2,220 $ 2,392 $ 12,331 $ 7,531 $ 2,200 $ 3,977 $ 1,777 County operating grant - recycling - 53,881 19,978 19,745 19,000 20,944 1,944 Operating grant - other - - 3,850 10,000 - 19,285 19,285 Charges for services Assessment searches 12,760 10,968 10,695 13,940 9,000 17,530 8,530 Blight notice fee 320 - - - - - - Planning administration fee 5,950 7,585 5,876 24,571 2,000 5,550 3,550 NSF fee 30 60 30 - - - - Inspection/construction fees 965 1,014 764 907 300 827 527 Contractor licensing fee 825 320 290 720 - 340 340 Fire protections fees - townships 131,717 131,774 142,374 142,740 142,000 143,533 1,533 Fire emergency response fee 4,900 23,500 19,995 19,210 10,000 57,650 47,650 Fire - other fees 3,814 5,407 11,808 3,345 4,000 2,359 (1,641) Blight mowing fees 450 - - - - - - Rental housing fees 49,020 49,600 45,500 42,835 46,000 45,365 (635) Animal control fees 36,089 45,224 45,232 38,915 45,000 40,428 (4,572) Miscellaneous pubic works - - 8,621 - - - - Tree and brush removal charge 3,290 1,513 2,365 2,580 2,300 2,730 430 Recycling charge - - 30 - - 54,259 54,259 Garbagefee- taxable 89,656 80,774 169,217 381,328 531,000 467,829 (63,171) Garbage surcharge - not taxable 300 - 90 - - - Field/Tourney fees 5,679 14,036 14,400 13,200 10,700 4,415 (6,285) Park rental fees 4,962 5,355 9,051 5,751 5,000 5,386 386 Arts activity fees - - - 400 - - - Developer cost reimbursement 750 19,540 16,429 19,498 - 13,656 13,656 Billboard land rental 21,149 21,187 22,881 23,475 7,000 21,714 14,714 Lease - Prairie Center 24,006 32,238 28,548 30,154 16,000 24,098 8,098 Lease - communication tower 24,905 26,441 29,213 26,300 27,000 26,959 (41) General charges for services 225 900 6,697 2,442 - 2,103 2,103 Fines and forfeitures Court fines 30,150 35,607 44,450 38,454 40,000 31,170 (8,830) Animal impound fines 506 595 400 1,100 400 682 282 Liquor license violation - 500 500 500 - - - Investment earnings Investment earnings 99,237 120,631 106,767 228,216 80,000 138,968 58,968 Other Solar investment rebates - - - - - 326,917 326,917 City property rental 1,600 1,600 1,600 1,600 1,600 277 (1,323) Contributions 5,315 3,025 13,543 42,567 2,500 2,218 (282) Sale of city property 10,650 20,948 5,724 3,096 1,000 16,945 15,945 Sale of lock boxes 1,710 855 920 2,400 800 3,544 2,744 (continued) 76 Schedule of Revenues (Sources) and Expenditures (Uses) General Fund For the Year Ended December 31, 2020 (Continued) Other (continued) Tree Sales Copies Refunds & reimbursables Assessment fee reimbursement Fire contributions Insurance claims Other miscellaneous Other Financing Sources Sales of capital assets Transfers from other funds Total revenues and other sources Expenditures and other uses - summary General government Public safety Public works Sanitation Transit Recreation and culture Transfers out and other uses Total expenditures and other uses Expenditures and other uses - divisions General government Mayor and council City administration City clerk Finance Audit City assessing Legal Human resources Planning and zoning Information technology services City hall Prairie center building Public safety Law enforcement Fire and rescue Fire relief Building inspections Emergency management CITY OF MONTICELLO $ 1,493,560 $ 1,620,699 $ 1,654,539 $ 1,775,333 2020 $ 2,168,641 Variance with 2016 2017 2018 2019 Final 2020 Final Actual Actual Actual Actual Budget Actual Budget $ 7,533 $ 8,646 $ 7,073 $ 6,752 $ 7,000 $ 5,346 $ (1,654) 19 10 15 47 - 87 87 88,860 49,603 42,297 21,663 - 24,026 24,026 24,150 19,950 21,300 16,575 20,000 15,300 (4,700) 7,852 12,660 2,973 84,149 - 3,764 3,764 - 46,475 - 1,867 - - - 46,034 27,440 39,243 55,321 29,800 33,259 3,459 11,180 1,725 15,000 29,340 - - - 102,422 130,948 - 25,000 - 30,424 393,754 $ 8,282,736 $ 8,495,070 $ 8,704,793 $ 9,287,336 $ 8,903,000 $ 9,790,059 $ 887,059 $ 1,493,560 $ 1,620,699 $ 1,654,539 $ 1,775,333 $ 1,888,299 $ 2,168,641 $ 280,342 2,038,793 2,180,745 2,356,471 2,451,784 2,638,028 2,745,974 107,946 1,802,884 1,904,391 2,079,091 2,222,034 2,307,503 1,899,315 (408,188) 600,300 614,328 615,586 610,944 686,776 681,948 (4,828) 41,250 3,191 18,333 - - - 1,016,025 1,119,343 1,200,388 1,209,429 1,382,394 1,331,196 (51,198) - 300,000 700,000 1,450,040 - 1,000,000 1,000,000 $ 6,992,812 $ 7,742,697 $ 8,624,408 $ 9,719,564 $ 8,903,000 $ 9,827,074 $ 924,074 $ 57,507 $ 54,123 $ 53,928 $ 57,409 $ 57,798 $ 52,589 $ (5,209) 326,134 481,843 449,100 443,963 491,649 789,820 298,171 66,031 102,422 130,948 121,197 150,400 180,824 30,424 393,754 425,247 430,924 456,902 491,791 451,819 (39,972) 39,273 44,745 40,531 45,940 44,000 39,559 (4,441) 50,415 51,972 66,190 64,554 73,000 70,115 (2,885) 29,152 35,714 27,967 41,837 37,000 29,340 (7,660) 116,522 123,206 126,581 142,812 129,407 142,232 12,825 210,173 216,007 239,045 315,091 331,630 339,005 7,375 692 - - - - - - 197,006 70,235 66,111 66,422 65,095 60,501 (4,594) 8,917 17,202 25,232 21,225 18,549 14,857 (3,692) 1,212,080 1,257,194 1,362,411 1,455,727 1,532,621 1,524,150 (8,471) 289,010 350,891 435,068 477,941 457,772 414,399 (43,373) 123,656 125,764 132,874 123,640 130,000 131,638 1,638 350,304 381,260 351,511 324,072 443,860 354,251 (89,609) 1,234 1,933 12,332 8,253 5,000 257,565 252,565 (continued) 77 Schedule of Revenues (Sources) and Expenditures (Uses) General Fund For the Year Ended December 31, 2020 (Continued) Public safety (continued) Animal control National guard Public works Public works administration Engineering Public works inspecitons Streets and alleys Ice and snow Shop and garage Stormwater Street lighting Sanitation Refuse and recycling collection Transit Bus service Recreation and culture Senior center Park operations Park ballfields Shade tree Public arts Library Transfers out and other uses Transfers out Total expenditures & other uses Revenue and other sources over expenditures and other uses CITY OF MONTICELLO $ 1,289,924 $ 752,373 $ 80,385 $ (432,228) $ - $ (37,015) (37,015) 78 2020 Variance with 2016 2017 2018 2019 Final 2020 Final Actual Actual Actual Actual Budget Actual Budget $ 46,943 $ 48,166 $ 46,608 $ 46,709 $ 52,755 $ 49,522 $ (3,233) 13,550 13,520 13,649 13,423 14,000 12,429 (1,571) 126,327 120,785 196,851 228,625 224,484 221,881 (2,603) 111,795 130,325 126,179 111,710 116,662 80,432 (36,230) 62,100 62,882 83,560 90,047 111,035 102,110 (8,925) 806,098 846,575 891,117 920,384 1,061,105 777,633 (283,472) 264,232 267,095 344,974 454,607 328,990 326,120 (2,870) 171,079 200,690 168,049 178,063 214,727 199,310 (15,417) 29,277 30,743 23,883 27,650 - - 231,976 245,296 244,478 210,948 250,500 191,829 (58,671) 600,300 614,328 615,586 610,944 686,776 681,948 (4,828) 41,250 3,191 18,333 - - - 99,124 103,161 103,226 102,169 107,452 103,662 (3,790) 775,738 871,121 916,335 925,482 1,078,841 1,040,665 (38,176) 20,538 21,936 21,063 19,836 27,400 23,685 (3,715) 75,802 80,922 80,916 61,396 85,892 79,024 (6,868) - - 29,876 46,954 35,664 36,092 428 44,823 42,203 48,972 53,592 47,145 48,068 923 - 300,000 700,000 1,450,040 1,000,000 1,000,000 $ 6,992,812 $ 7,742,697 $ 8,624,408 $ 9,719,564 $ 8,903,000 $ 9,827,074 924,074 $ 1,289,924 $ 752,373 $ 80,385 $ (432,228) $ - $ (37,015) (37,015) 78 Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual - Small Cities Development Program For the Year Ended December 31, 2020 Orginal and Final Budget Actual Revenues Investment earnings $ 15,000 $ 15,277 Interest on loans - 4,896 Total revenues 15,000 20,173 Fund balance at beginning of year 904,365 904,365 Fund balance at end of year $ 919,365 $ 924,538 CITY OF MONTICELLO Variance with Final Budget $ 277 4,896 5,173 $ 5,173 79 CITY OF MONTICELLO Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual - Cemetery Fund For the Year Ended December 31, 2020 Orginal and Final Variance with Budget Actual Final Budget Revenues Intergovernmental $ - $ 15,000 $ 15,000 Charges for services 33,000 40,884 7,884 Investment earnings - 701 701 Total revenues 33,000 56,585 23,585 Expenditures Current Recreation and culture Cemetery operations 33,000 27,321 (5,679) Net change in fund balance - 29,264 29,264 Fund balance at beginning of year 26,075 26,075 - Fund balance at end of year $ 26,075 $ 55,339 $ 29,264 Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual - CDBG-Revitalization Fund For the Year Ended December 31, 2020 Orginal and Final Budget Actual Expenditures Current Economic development Other expenditures $ $ 392 Net change in fund balance - (392) Fund balance at beginning of year 392 392 Fund balance at end of year $ 392 $ - CITY OF MONTICELLO Variance with Final Budget $ 392 (392) $ (392) 81 Schedule of Assets, Liabilities, Deferred Inflows of Resources and Fund Balances Economic Development Authority December 31, 2020 ASSETS Cash and investments Receivables Unremitted taxes Delinquent taxes Accounts Intrafund receivable Prepaid items Notes receivable Land held for resale TOTAL ASSETS LIABILITIES Accounts and contracts payable Due to other governmental units Intrafund payable Unearned revenue Escrow deposits Total liabilities DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes FUND BALANCES Nonspendable Restricted Assigned Total fund balance TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES Required or Actual Decertification Date TIF District Type (d) = decertified CITY OF MONTICELLO (continued) 82 TIF 6 (d) TIF 19 TIF 20 (d) TIF 22 TIF 24 EDA General GMEF TIF Future Raindance MS Shores Prairie West Downtown St. Henry's $ 801,521 $ 1,049,574 $ $ 6,721 $ 92,936 $ 104,838 $ 400,241 $ 117,208 2,367 - - - - - - 1,367 1,898 525 - - 566,924 742,384 3,186 - - - 183,693 - 3,303,170 - 163,200 - $ 4,679,060 $ 1,233,267 $ $ 749,105 $ 92,936 $ 104,838 $ 565,339 $ 117,208 $ 11,696 $ - $ $ - $ - $ - $ - $ - 259 - 44,497 - - - 163,200 6,720 - 18,675 44,497 163,200 1,367 - 1,898 3,186 - - - - - - - 1,233,267 749,105 92,936 104,838 400,241 117,208 4,655,832 (44,497) 4,659,018 1,233,267 (44,497) 749,105 92,936 104,838 400,241 117,208 $ 4,679,060 $ 1,233,267 $ - $ 749,105 $ 92,936 $ 104,838 $ 565,339 $ 117,208 12/9/2013 12131/2023 12/10/2018 12/31/2024 12/31/2026 Redevelopment Housing Redevelopment Housing & Housing Redevelopment (continued) 82 Schedule of Assets, Liabilities, Deferred Inflows of Resources and Fund Balances Economic Development Authority December 31, 2020 (Continued) ASSETS Cash and investments Receivables Unremitted taxes Delinquent taxes Accounts Intrafund receivable Prepaid items Notes receivable Land held for resale TOTAL ASSETS LIABILITIES Accounts and contracts payable Due to other governmental units Intrafund payable Unearned revenue Escrow deposits Total liabilities DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes FUND BALANCES Nonspendable Restricted Assigned Total fund balance TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES Required or Actual Decertification Date TIF District Type (d) = decertified CITY OF MONTICELLO TIF 29 TIF 30 TIF 34 TIF 39 TIF 40 TIF 41 GAAP Total Front Porch CMHP Interchange Otter Creek Briggs UMC Reconciliation EDA $ 160,026 $ 112,177 $ 35,662 $ $ 335 $ $ $ 2,881,239 - - - - 2,367 3,265 525 (1,309,308) - 3,186 183,693 - - - 3,466,370 $ 160,026 $ 112,177 $ 35,662 $ $ 335 $ $ (1,309,308) $ 6,540,645 $ - $ $ $ $ $ $ $ 11,696 259 103,215 130,596 1,031,000 (1,309,308) - - - - (163,200) - - 6,720 103,215 130,596 1,031,000 (1,472,508) 18,675 3,265 - - - - - 3,186 160,026 8,962 35,662 (130,596) 335 (1,031,000) 163,200 1,904,184 - - - - - 4,611,335 160,026 8,962 35,662 (130,596) 335 (1,031,000) 163,200 6,518,705 $ 160,026 $ 112,177 $ 35,662 $ - $ 335 $ $ (1,309,308) $ 6,540,645 12/31/2029 12/31/2029 12/31/2022 12/31/2021 12/31/2045 12/31/2030 Housing Housing Redevelopment Economic Housing Economic Development Development 83 Schedule of Revenues, Expenditures and Other Financing Uses Economic Development Authority For the Year Ended December 31, 2020 Revenues Property taxes Tax increments Intergovernmental Investment earnings Interest on loans Other revenues Total revenues Expenditures: Current Salary and wages Benefits Professional services - legal Professional services - other LPV Insurance Legal and general publications Property taxes Marketing Dues and membership Utilities IT services Travel and conferences Land adjustment to market Qualifying TIF expenditures Other expenditures Excess increments Interest on intrafund loans PAYG payments to third parties Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing uses Transfers out Net change in fund balances Fund balance at beginning of year Fund balance at end of year Required or Actual Decertification Date TIF District Type (d) = decertified CITY OF MONTICELLO 97,169 TIF 6 (d) TIF 19 TIF 20 (d) TIF 22 TIF 24 EDA General GMEF TIF Future Raindance MS Shores Prairie West Downtown St. Henry's $ 355,080 $ $ $ $ - $ $ - $ - - 105 39,084 105 298,946 56,104 - 185,000 - - - - - 25,519 19,994 6,826 1,401 2,000 6,213 1,701 9,622 3,739 - - - - - 2,280 - 392,501 208,733 6,826 40,485 2,000 305,159 57,805 2,428 97,169 37,021 17,318 - - - - - 61,742 105 105 105 990 105 1,224 - - - - - 106 35 35 35 1,641 - - - 1,149 5,796 2,428 2,665 1,348 245,118 70,625 190,000 - - - 137,813 - - - - - 11,303 - 545,350 190,000 105 140 105 150,141 140 (152,849) 18,733 6,721 40,345 1,895 155,018 57,665 6,721 (152,849) 18,733 40,345 1,895 155,018 57,665 4,811,867 1,214,534 (44,497) 742,384 52,591 102,943 245,223 59,543 $ 4,659,018 $ 1,233,267 $ (44,497) $ 749,105 $ 92,936 $ 104,838 $ 400,241 $ 117,208 12/9/2013 1213112023 12/10/2018 1213112024 12/31 /2026 Redevelopment Housing Redevelopment Housing & Housing Redevelopment (continued) 84 CITY OF MONTICELLO Schedule of Revenues, Expenditures and Other Financing Uses Economic Development Authority For the Year Ended December 31, 2020 (Continued) TIF 29 TIF 30 TIF 34 TIF 39 TIF 40 TIF 41 GAAP Total Front Porch CMHP Interchange Otter Creek Briggs UMC Reconciliation EDA Revenues Property taxes $ - $ - $ - $ - $ - $ $ $ 355,080 Tax increments 33,749 15,145 218,945 45,479 372 707,824 Intergovernmental - - - - - 185,000 Investment earnings 2,731 2,126 501 84 3 69,099 Interest on loans - - - - - (9,622) 3,739 Other revenues - - - - 2,280 Total revenues 36,480 17,271 219,446 45,563 375 (9,622) 1,323,022 Expenditures: Current Salary and wages - - - - 97,169 Benefits - 37,021 Professional services - legal - - - - 40 17,358 Professional services - other 105 105 105 105 - 63,572 LPV Insurance - - - - 1,224 Legal and general publications 35 35 35 35 351 Property taxes - - - - 1,641 Marketing 1,149 Dues and membership 5,796 Utilities 2,428 IT services 2,665 Travel and conferences 1,348 Land adjustment to market - 245,118 Qualifying TIF expenditures 1,031,000 1,031,000 Other expenditures - 260,625 Excess increments 137,813 Interest on intrafund loans 2,850 6,772 (9,622) - PAYG payments to third parties - - - - - - 11,303 Total expenditures 140 2,990 140 6,912 40 1,031,000 (9,622) 1,917,581 Excess (deficiency) of revenues over (under) expenditures 36,340 14,281 219,306 38,651 335 (1,031,000) (594,559) Other financing uses Transfers out - - (200,000) - - (200,000) Net change in fund balances 36,340 14,281 19,306 38,651 335 (1,031,000) - (794,559) Fund balance at beginning of year 123,686 (5,319) 16,356 (169,247) 163,200 7,313,264 Fund balance at end of year $ 160,026 $ 8,962 $ 35,662 $ (130,596) $ 335 $ (1,031,000) $ 163,200 $ 6,518,705 Required or Actual Decertification Date 12/31/2029 12131/2029 12/31/2022 12131/2021 12131/2045 12131/2030 TIF District Type Housing Housing Redevelopment Economic Housing Economic (d) = decertified Development Development 85 CITY OF MONTICELLO Schedule of Assets, Liabilities, Deferred Inflows of Resources and Fund Balances Debt Service Activities December 31, 2020 General Obligation Bonds 2011A 2014A 2015B 2016A 2017A 2018A 2019A 2020A Refunding Bonds Bonds Bonds Bonds Bonds Bonds Bonds Total ASSETS Cash and cash equivalents $ 79,015 $ 148,910 $ 121,883 $ 399,837 $ 278,965 $ 80,415 $ 40,190 $ 124,934 $ 1,274,149 Receivables Unremitted special assessments 32,641 - - 326 238 - - - 33,205 Deliquent special assessments - - 137 1,450 - - 1,587 Deferred special assessments 91,208 391,878 226,644 81,840 509,250 1,300,820 Total assets $ 111,656 $ 148,910 $ 213,091 $ 792,178 $ 507,297 $ 80,415 $ 122,030 $ 634,184 $ 2,609,761 LIABILITIES Accounts and contracts payable $ 196 $ 196 $ 196 $ 196 $ 646 $ 696 $ 696 $ - $ 2,822 DEFERRED INFLOWS OF RESOURCES Unavailable revenue - special assessments - - 91,208 392,015 228,094 - 81,840 509,250 1,302,407 FUND BALANCES Restricted for debt service 111,460 148,714 121,687 399,967 278,557 79,719 39,494 124,934 1,304,532 Total liabilities, deferred inflows of resources, and fund balances $ 111,656 $ 148,910 $ 213,091 $ 792,178 $ 507,297 $ 80,415 $ 122,030 $ 634,184 $ 2,609,761 CITY OF MONTICELLO Schedule of Revenues, Expenditures and Other Financing Sources (Uses) Debt Service Activities For the Year Ended December 31, 2020 General Obligation Bonds 2011A 2014A 2015B 2016A 2017A 2018A 2019A 2020A Refunding Bonds Bonds Bonds Bonds Bonds Bonds Bonds Total Revenues Property taxes $ 172,641 $ 535,501 $ 198,385 $ 405,039 $ 427,367 $ 472,434 $ 728,620 $ - $ 2,939,987 Special assessments 113,348 - 23,416 145,564 47,347 - 14,833 124,520 469,028 Investment earnings (8,015) 3,163 2,557 8,875 6,141 1,817 912 414 15,864 Total revenues 277,974 538,664 224,358 559,478 480,855 474,251 744,365 124,934 3,424,879 Expenditures Debt service Principal 1,230,000 365,000 160,000 450,000 370,000 305,000 505,000 - 3,385,000 Interest and fiscal charges 29,662 146,638 52,087 76,137 100,927 146,575 204,882 756,908 Total expenditures 1,259,662 511,638 212,087 526,137 470,927 451,575 709,882 - 4,141,908 Excess (deficiency) of revenues over expenditures (981,688) 27,026 12,271 33,341 9,928 22,676 34,483 124,934 (717,029) Other financing sources Transfers in 200,000 200,000 Net change in fund balance (781,688) 27,026 12,271 33,341 9,928 22,676 34,483 124,934 (517,029) Fund balance at beginning of year 893,148 121,688 109,416 366,626 268,629 57,043 5,011 - 1,821,561 Fund balance at end of year $ 111,460 $ 148,714 $ 121,687 $ 399,967 $ 278,557 $ 79,719 $ 39,494 $ 124,934 $ 1,304,532 87 CITY OF MonticeRo (This page left blank intentionally) :: nk' � � ATISTICAL SECTION STATISTICAL SECTION The Statistical Section is included to provide detailed data on the physical, economic, social and political characteristics of the reporting government. It is intended to provide the user with a broader and more complete understanding of the government and its financial affairs than is possible from the basic financial statements and supplementary information included in the Financial Section. Paqe STATISTICAL SECTION Financial trends Net Position by Component - Last Ten Fiscal Years 89 Changes in Net Position - Last Ten Fiscal years 90 General Governmental Tax Revenues by Source - Last Ten Fiscal Years 92 Fund Balances of Governmental Funds - Last Ten Fiscal Years 93 Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years 94 Governmental Funds Tax Revenues by Source - Last Ten Fiscal Years 95 Revenue capacity Tax Capacity Value and Estimated Market Value of Taxable Property - Last Ten Fiscal Years 96 Property Tax Rates - All Direct and Overlapping Governments - Last Ten Fiscal Years 97 Property Tax Levies and Collections - Last Ten Fiscal Years 98 Principal Property Taxpayers - Current Year and Nine Years Ago 99 New Construction and Bank Deposits - Last Ten Fiscal Years 100 Water Sold by Customer Type - Last Ten Fiscal Years 101 Water and Sewage Utility Rates - Last Ten Fiscal Years 102 Debt capacity Ratios of Outstanding Debt by Type - Last Ten Fiscal Years 103 Ratios of Net General Obligation Bonded Debt Outstanding - Last Ten Fiscal Years 104 Legal Debt Margin Information - Last Ten Fiscal Years 105 Computation of Direct and Overlapping Debt - As of December 31, 2020 106 Schedule of General Obligation Revenue Bond Coverage - Last Ten Fiscal Years 107 Economic and demographic information Demographic and Economic Statistics - Last Ten Fiscal Years 108 Principal Employers - Current Year and Nine Years Ago 109 Operating information City Government Employees by Function/Program - Last Ten Fiscal Years 110 Operating Indicators by Function - Last Ten Fiscal Years 111 Capital Assets Statistics by Function - Last Ten Fiscal Years 113 Schedule of Cash Flows Adjusted for Additional City Funding of Fiber Optics Fund -Last Six Fiscal Years 114 CITY OF MONTICELLO Net Position by Component Last Ten Fiscal Years (accrual basis of accounting) $100 Primary Government Net Position $80 ■ Net investment in p $60 capital assets ■ Restricted net $40 position $20 ■ Unrestricted net position $- IUUU 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Note 1: In fiscal years 2012 and 2013, the city had a change in accounting principle, a change in fund structure, and prior period adjustments. In addition, the city implemented GASB Statement No. 68 and GASB Statement No. 71 in fiscal year 2015, and GASB Statement No. 75 in fiscal year 2018. Prior years have not been adjusted to reflect these changes. 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Governmental activities Net investment in capital assets $ 38,242,040 $ 40,525,009 $ 44,268,757 $ 48,253,810 $ 38,099,568 $ 41,077,683 $ 41,535,637 $ 43,517,983 $ 40,008,410 $ 40,836,892 Restricted 16,894,936 13,061,044 18,118,070 10,453,449 12,633,770 10,569,693 11,599,951 9,649,085 8,690,172 5,397,034 Unrestricted 24,758,269 25,119,107 13,487,299 14,792,521 18,144,067 20,824,170 20,899,110 23,422,548 27,133,699 32,716,074 Total governmental net position $ 79,895,245 $ 78,705,160 $ 75,874,126 $ 73,499,780 $ 68,877,405 $ 72,471,546 $ 74,034,698 $ 76,589,616 $ 75,832,281 $ 78,950,000 Business -type activities Net investment in capital assets $ 25,031,043 $ 23,698,091 $ 20,496,832 $ 42,117,264 $ 40,722,087 $ 41,014,122 $ 39,944,797 $ 39,250,211 $ 42,808,003 $ 41,000,179 Restricted 19,350 19,350 - - - - - - - - Unrestricted 6,901,353 7,642,046 6,463,638 9,121,952 8,163,982 9,052,590 11,905,058 13,261,505 14,855,640 17,649,288 Total business -type net position $ 31,951,746 $ 31,359,487 $ 26,960,470 $ 51,239,216 $ 48,886,069 $ 50,066,712 $ 51,849,855 $ 52,511,716 $ 57,663,643 $ 58,649,467 Primary government Net investment in capital assets $ 63,273,083 $ 64,223,100 $ 64,765,589 $ 90,371,074 $ 78,821,655 $ 82,091,805 $ 81,480,434 $ 82,768,194 $ 82,816,413 $ 81,837,071 Restricted 16,914,286 13,080,394 18,118,070 10,453,449 12,633,770 10,569,693 11,599,951 9,649,085 8,690,172 5,397,034 Unrestricted 31,659,622 32,761,153 19,950,937 23,914,473 26,308,049 29,876,760 32,804,168 36,684,053 41,989,339 50,365,362 Total primary government net position $ 111,846,991 $ 110,064,647 $ 102,834,596 $ 124,738,996 $ 117,763,474 $ 122,538,258 $ 125,884,553 $ 129,101,332 $ 133,495,924 $ 137,599,467 $100 Primary Government Net Position $80 ■ Net investment in p $60 capital assets ■ Restricted net $40 position $20 ■ Unrestricted net position $- IUUU 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Note 1: In fiscal years 2012 and 2013, the city had a change in accounting principle, a change in fund structure, and prior period adjustments. In addition, the city implemented GASB Statement No. 68 and GASB Statement No. 71 in fiscal year 2015, and GASB Statement No. 75 in fiscal year 2018. Prior years have not been adjusted to reflect these changes. CITY OF MONTICELLO Changes in Net Position Last Ten Fiscal Years (accrual basis of accounting) Expenses 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Governmental activities General government $ 2,111,710 $ 2,103,737 $ 1,623,727 $ 1,488,243 $ 1,447,725 $ 1,694,111 $ 1,656,666 $ 1,614,613 $ 1,927,752 $ 2,335,614 Public safety 1,788,595 1,819,378 1,884,981 1,880,193 1,960,009 2,187,363 2,208,971 2,377,661 2,406,748 2,658,246 Public works 4,838,544 5,045,729 5,163,461 5,223,345 5,312,612 5,480,074 5,292,743 5,548,199 5,765,576 4,777,282 Sanitation 495,693 500,037 487,268 517,956 563,477 600,300 614,328 615,586 610,944 681,948 Transit - - - 10,000 40,000 41,250 3,191 18,333 - - Recreation and culture 1,753,197 2,719,730 2,875,260 2,882,127 3,524,979 3,998,945 3,521,756 3,460,887 3,636,958 3,289,716 Economic development 1,199,936 803,594 1,005,813 1,084,620 1,547,875 756,620 488,380 1,206,067 872,984 1,914,825 Interest and fiscal charges 1,248,716 1,298,869 235,265 649,854 735,753 565,774 514,558 617,344 752,595 756,546 Total governmental activities 13,436,391 14,291,074 13,275,775 13,736,338 15,132,430 15,324,437 14,300,593 15,458,690 15,973,557 16,414,177 Business -type activities Water utility 1,167,572 1,118,789 1,009,600 1,084,882 1,102,610 1,168,473 1,157,506 1,235,055 1,216,446 1,212,656 Sewage utility 2,340,555 2,480,657 2,466,660 2,762,357 2,661,990 2,618,887 2,708,053 2,932,413 2,889,438 2,960,153 Stormwater - - - - - - - - - 658,771 Liquor 4,161,212 4,302,055 4,457,207 4,569,673 4,768,218 4,873,033 5,104,937 5,394,968 5,577,481 6,395,558 Fiber optics 5,702,480 5,228,428 5,240,871 2,919,170 2,536,461 2,483,262 2,252,287 2,276,015 1,990,052 2,063,712 Deputy registrar 293,531 300,236 313,968 345,492 390,658 421,662 458,695 538,625 Total business -type activities 13,371,819 13,129,929 13,467,869 11,636,318 11,383,247 11,489,147 11,613,441 12,260,113 12,132,112 13,829,475 Total primary government expenses $ 26,808,210 $ 27,421,003 $ 26,743,644 $ 25,372,656 $ 26,515,677 $ 26,813,584 $ 25,914,034 $ 27,718,803 $ 28,105,669 $ 30,243,652 Program Revenues Governmental activities Charges for services General government $ 521,182 $ 619,992 $ 147,244 $ 180,145 $ 214,087 $ 274,309 $ 239,460 $ 207,802 $ 232,336 $ 523,919 Public safety 202,237 179,540 163,366 164,616 320,158 894,311 851,307 780,236 921,916 799,227 Public works 508,077 383,066 544,404 371,671 521,697 527,425 283,241 217,675 373,581 156,657 Sanitation 52,304 53,077 16,653 48,385 104,786 89,956 80,774 169,337 381,328 522,088 Recreation and culture 1,240,970 1,150,273 1,307,149 1,331,581 1,488,197 1,437,659 1,493,651 1,630,915 1,602,473 652,729 Economic development - - - - 14,653 301,232 13,846 2,832 14,149 10,915 Operating grants and contributions 253,127 252,784 293,710 295,828 355,041 389,005 429,697 428,443 431,004 463,335 Capital grants and contributions 2,083,511 1,841,915 1,079,738 1,774,628 2,667,710 3,297,265 1,996,441 2,044,698 1,024,891 1,289,990 Total governmental activities program revenues 4,861,408 4,480,647 3,552,264 4,166,854 5,686,329 7,211,162 5,388,417 5,481,938 4,981,678 4,418,860 Business -type activities Charges for services Water utility 1,078,133 1,304,923 1,214,570 1,117,226 1,126,718 1,172,258 1,415,441 1,432,194 1,300,191 1,541,694 Sewage utility 1,712,058 1,850,919 1,981,491 2,081,660 2,083,122 2,223,252 2,472,774 2,581,833 2,443,856 2,559,354 Stormwater - - - - - - - - 61,757 241,873 Liquor 4,653,384 4,854,798 5,085,924 5,166,066 5,493,925 5,450,630 5,755,166 6,090,981 6,377,457 7,405,960 Fiber optics 1,610,258 1,747,587 1,606,720 1,761,978 1,642,403 1,739,566 1,757,134 1,736,243 1,795,435 1,851,845 Deputy registrar - - 456,285 497,798 535,931 562,891 594,777 694,263 953,855 801,502 Capital grants and contributions 488,628 1,454,980 2,000,456 699,901 925,195 1,646,123 1,488,339 Total business -type activities program revenues 9,053,833 9,758,227 10,344,990 11,113,356 12,337,079 13,149,053 12,695,193 13,460,709 14,578,674 15,890,567 Total primary government program revenues $ 13,915,241 $ 14,238,874 $ 13,897,254 $ 15,280,210 $ 18,023,408 $ 20,360,215 $ 18,083,610 $ 18,942,647 $ 19,560,352 $ 20,309,427 (continued) U Changes in Net Position Last Ten Fiscal Years (accrual basis of accounting) Net Governmental activities Business -type activities Total primary government net expense General Revenues and Other Changes in Net Position Governmental activities Taxes Property taxes Tax increment Franchise taxes Unrestricted grants and contributions Investment earnings Other Gain on sale of capital assets Transfers Total governmental activities Business -type activities Unrestricted grants and contributions Investment earnings Miscellaneous Gain on extinguishment of debt Contribution of land to County Transfer of operations Transfers Total business -type activities Total primary government Changes in Net Position Governmental activities Business -type activities Total primary government CITY OF MONTICELLO 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 $ (8,574,983) $ (9,810,427) $ (9,723,511) $ (9,569,484) $ (9,446,101) $ (8,113,275) $ (8,912,176) $ (9,976,752) $ (10,991,879) $ (11,995,317) (4,317,986) (3,371,702) (3,122,879) (522,962) 953,832 1,659,906 1,081,752 1,200,596 2,446,562 2,061,092 $ (12,892,969) $ (13,182,129) $ (12,846,390) $ (10,092,446) $ (8,492,269)$ (6,453,369) $ (7,830,424) $ (8,776,156) $ (8,545,317) $ (9,934,225) $ 7,406,358 $ 7,722,214 $ 7,961,229 $ 8,393,374 $ 8,683,585 $ 9,270,592 $ 9,560,482 $ 9,972,166 $ 10,375,714 $ 10,874,313 1,044,791 1,024,134 965,935 826,363 727,617 668,352 648,031 638,278 679,925 707,824 341,362 339,518 320,640 357,409 333,484 412,217 436,248 386,622 432,934 418,030 19,359 38,618 65,228 27,502 - - - - - 886,544 1,467,780 767,722 (189,128) 784,347 278,465 375,614 379,107 364,364 969,216 666,325 - 11,575 3,885 217,643 30,473 11,180 - - - - 354,501 540,272 489,782 - - - 1,725 15,000 - 713,655 (2,420,489) 278,500 (3,411,500) 2,301,045 969,461 (550,265) 1,000,000 (2,223,245) 1,560,000 11,347,806 8,023,564 9,896,071 7,195,138 12,354,669 11,707,416 10,475,328 12,376,430 10,234,544 15,113,036 - - - - - - - - - 151,794 495,484 264,589 (117,175) 399,757 108,191 128,080 151,126 162,003 482,120 332,938 1,555,509 100,687 65,468 - 88,157 5,218 - 379,246 - - - - - 20,990,451 - - - - (5,511,547) - - - - - - - 356,900 - - (713,655) 2,420,489 (278,500) 3,411,500 (2,301,045) (969,461) 550,265 (1,000,000) 2,223,245 (1,560,000) 1,337,338 2,785,765 (330,207) 24,801,708 (7,616,244) (479,263) 701,391 (458,751) 2,705,365 (1,075,268) $ 12,685,144 $ 10,809,329 $ 9,565,864 $ 31,996,846 $ 4,738,425 $ 11,228,153 $ 11,176,719 $ 11,917,679 $ 12,939,909 $ 14,037,768 $ 2,772,823 $ (1,786,863) $ 172,560 $ (2,374,346) $ 2,908,568 $ 3,594,141 $ 1,563,152 $ 2,399,678 $ (757,335) $ 3,117,719 (2,980,648) (585,937) (3,453,086) 24,278,746 (6,662,412) 1,180,643 1,783,143 741,845 5,151,927 985,824 $ (207,825) $ (2,372,800) $ (3,280,526) $ 21,904,400 $ (3,753,844) $ 4,774,784 $ 3,346,295 $ 3,141,523 $ 4,394,592 $ 4,103,543 Note 1: The city made a fund structure change for the period ending December 31, 2013. Prior year data has not been restated as a result of this change. Note 2: The city implemented GASB Statement No. 68 and GASB Statement No. 71 in fiscal year 2015, and GASB Statement No. 75 in fiscal year 2018. Prior years have not been adjusted to reflect these changes. Note 3: The city created a new Stormwater enterprise fund in 2019. As part of creating the fund, all balances of the Storm Water Access capital projects fund were transferred to this fund. 91 CITY OF MONTICELLO General Governmental Tax Revenues by Source Last Ten Fiscal Years (accrual basis of accounting) Property Tax Franchise Year Tax Increment Tax Total 2011 $ 7,406,358 $ 1,044,791 $ 341,362 $ 8,792,511 2012 7,722,214 1,024,134 339,518 9,085,866 2013 7,961,229 965,935 320,640 9,247,804 2014 8,393,374 826,363 357,409 9,577,146 2015 8,683,585 727,617 333,484 9,744,686 2016 9,270,592 668,352 412,217 10,351,161 2017 9,560,482 648,031 436,248 10,644,761 2018 9,972,166 638,278 386,622 10,997,066 2019 10, 375,714 679,925 432,934 11,488, 573 2020 10,874,313 707,824 418,030 12,000,167 Change 2011-2020 46.8% -32.3% 22.5% 36.5% $12 $10 $8 c ° $6 $4 $2 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Tax Revenues by Source Source: Finance Department ■ Property Tax ■Tax Increment ■ Franchise Tax 92 CITY OF MONTICELLO Fund Balances of Governmental Funds $ 1,299,057 $ 197,123 $ 1,822,926 $ 1,815,087 $ 4,259,743 $ 3,690,330 $ 23,488 Last Ten Fiscal Years $ 72,028 $ 27,600 Restricted 22,140,662 21,480,938 10,928,985 10,453,449 8,619,905 (modified accrual basis of accounting) 7,924,461 5,867,997 7,567,522 5,008,177 Committed 2,662,124 - - 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 General Fund 6,485,727 7,321,744 11,109,806 13,320,718 16,910,080 17,145,463 21,227,605 24,358,352 Nonspendable $ 386,616 $ 342,380 $ 258,100 $ 126,327 $ 113,302 $ 134,245 $ 110,869 $ 124,650 $ 135,139 $ 145,603 Committed 3,374,200 - - - - - - - - - Unassigned 649,821 3,136,127 3,656,463 4,204,731 4,873,494 6,142,475 6,918,224 6,984,828 6,542,111 6,494,632 Total general fund $ 4,410,637 $ 3,478,507 $ 3,914,563 $ 4,331,058 $ 4,986,796 $ 6,276,720 $ 7,029,093 $ 7,109,478 $ 6,677,250 $ 6,640,235 All other governmental funds Nonspendable $ 1,299,057 $ 197,123 $ 1,822,926 $ 1,815,087 $ 4,259,743 $ 3,690,330 $ 23,488 $ 47,614 $ 72,028 $ 27,600 Restricted 22,140,662 21,480,938 10,928,985 10,453,449 8,619,905 6,987,234 7,924,461 5,867,997 7,567,522 5,008,177 Committed 2,662,124 - - - - - - - - - Assigned 9,138,626 8,655,488 6,485,727 7,321,744 11,109,806 13,320,718 16,910,080 17,145,463 21,227,605 24,358,352 Unassigned Special revenue (141,890) - - - - - - - - - Capital projects (1,435,666) Total all other governmental funds $ 33,662,913 $ 30,333,549 $ 19,237,638 $ 19,590,280 $ 23,989,454 $ 23,998,282 $ 24,858,029 $ 23,061,074 $ 28,867,155 $ 29,394,129 Note 1: The City made a fund structure change for the period ending December 31, 2013. Prior year data has not been restated as a result of this change. 93 Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) Revenues Property taxes Tax increments Franchise taxes Special assessments Licenses and permits Intergovernmental Charges for services Fines and forfeitures Investment earnings Interest on loans Other revenues Total revenues Expenditures General government Public safety Public works Sanitation Transit Recreation and culture Economic development Capital outlay Debt service Principal Interest and fiscal charges Bond issuance costs Total expenditures Excess of revenues over (under) expenditures Other financing sources (uses) Long-term debt issued Premium (discount) on debt issued Refunded bonds redeemed Sale of capital assets Transfers in Transfers out Total other financing sources (uses) Net change in fund balances CITY OF MONTICELLO 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 $ 7,294,635 $ 8,234,086 $ 7,985,695 $ 8,407,627 $ 8,638,401 $ 9,295,983 $ 9,593,445 $ 9,967,550 $ 10,375,468 $10,860,311 1,044,791 1,024,134 965,935 826,363 727,617 668,352 648,031 638,278 679,925 707,824 341,362 339,518 320,640 357,409 333,484 412,217 436,248 386,622 432,934 418,030 1,856,134 1,902,871 2,065,944 1,912,932 3,318,901 984,390 946,669 700,190 712,681 633,016 249,999 275,699 331,711 378,810 461,049 668,602 600,933 504,464 603,925 521,369 1,434,420 540,475 1,264,781 732,366 1,520,239 2,041,362 1,340,094 911,477 896,638 1,656,228 2,239,584 2,076,834 1,846,919 1,722,974 2,063,520 2,222,475 1,909,357 2,098,362 2,297,568 1,474,527 85 14,338 1,725 1,900 42,474 30,656 36,702 45,350 40,054 31,852 1,467,780 767,722 (183,242) 738,956 261,856 357,112 364,786 351,620 930,128 641,446 - - - - - - - - 10,929 8,635 603,019 753,832 700,776 413,113 475,170 589,394 335,530 302,469 436,264 521,109 16,531,809 15,929,509 15,300,884 15,492,450 17,842,711 17,270,543 16,211,795 15,906,382 17,416,514 17,474,347 2,039,270 2,023,674 1,576,653 1,450,930 1,465,458 1,489,892 1,617,680 1,656,557 1,777,352 2,170,661 1,728,409 1,735,579 1,805,434 1,845,073 1,972,986 2,036,777 2,178,728 2,354,453 2,449,765 2,743,954 1,675,222 1,703,849 1,707,576 1,793,162 1,734,562 1,941,750 2,009,481 2,079,305 2,393,638 1,899,315 495,693 500,037 505,996 517,956 563,477 600,300 614,328 615,586 610,944 681,948 - - - 10,000 40,000 41,250 3,191 18,333 - - 2,419,369 2,272,595 2,472,987 2,386,832 2,622,991 2,756,372 2,940,313 3,034,496 3,137,153 2,614,095 1,198,449 800,540 1,011,961 1,084,620 1,237,107 530,746 486,706 1,210,053 871,950 1,917,973 4,067,251 2,829,049 1,357,254 2,220,883 2,238,365 6,235,029 5,430,272 9,708,481 7,941,452 4,910,889 4,860,000 5,174,500 5,290,750 5,411,000 5,028,000 5,681,653 3,921,000 2,285,000 2,855,000 3,385,000 1,383,095 1,290,430 930,982 658,983 570,753 529,116 470,508 522,220 634,241 756,908 71,358 107,050 93,300 94,350 138,350 53,475 19,866,758 18,330,253 16,659,593 17,379,439 17,545,057 21,949,935 19,765,507 23,578,834 22,809,845 21,134,218 (3,334,949) (2,400,744) (1,358,709) (1,886,989) 297,654 (4,679,392) (3,553,712) (7,672,452) (5,393,331) (3,659,871) 10,735,000 6,080,000 2,605,000 4,900,000 5,000,000 5,000,000 8,000,000 2,155,000 301,910 (12,374) 46,898 97,503 78,814 40,882 131,662 101,280 - - (10,690,000) - - - - - - - 11,575 12,428 - 30,473 11,180 1,725 15,000 29,340 333,550 5,710,819 9,990,120 6,906,770 4,914,385 4,261,817 2,192,636 1,029,628 2,082,845 5,928,040 2,760,000 (4,997,164) (10,732,901) (7,158,933) (8,325,885) (2,186,930) (1,223,175) (944,335) (1,182,845) (3,321,858) (1,200,000) 11,750,565 (731,206) (10,929,735) 2,656,126 4,757,258 5,978,144 5,165,832 5,955,882 10,767,184 4,149,830 $ 8, 15 4,616 $ (3,131,950) $ (12,288,444) $ 769,137 $ 5,054,912 $ 1,298,752 $ 1,612,120 $ (1,716,570) $ 5,373,853 $ 489,959 Debt service as percentage of noncapital expenditures 42.6% 41.4% 41.7% 40.0% 35.1% 38.0% 30.4% 20.1% 26.4% 24.9% Note: The city made a fund structure change for the period ending December 31, 2013. Prior year data has not been modified to reflect this change. 94 Governmental Funds Tax Revenues by Source Last Ten Fiscal Years (modified accrual basis of accounting) Year LU11 2012 2013 2014 2015 2016 2017 2018 2019 2020 Change 2011-2020 Source: Finance Department PrODerty Tax Franchise Z� (,Ly4,bJb 1b 1,U44,/y1 Z� 8,234,086 1,024,134 7,985,695 965,935 8,407,627 826,363 8,638,401 727,617 9,295,983 668,352 9,593,445 648,031 9,967,550 638,278 10,375,468 679,925 10,860,311 707,824 48.9% -32.3% Tax Revenues by Source t„ S41 ,3bL 339,518 320,640 357,409 333,484 412,217 436,248 386,622 432,934 418,030 22.5% CITY OF MONTICELLO Total 9,597,738 9,272,270 9,591,399 9,699,502 10,376,552 10,677,724 10,992,450 11,488, 327 11,986,165 38.1% 95 CITY OF MONTICELLO Tax Capacity Value and Estimated Market Value of Taxable Property Last Ten Fiscal Years Total Taxable Net Tax Capacity Value (Excludes Personal and Ag/Misc Property) $35 $30 $25 o $20 ■ Residential 2 $15 ■ Commercial $10 $5 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Note 1: The fiscal year is for the values in the year levied for taxes collectible in the following year. Note 2: Tax exempt property values are not included in total taxable net tax capacity value. Source: Wright County Certificate of Taxes and Taxable Properties. M Total Net Tax Real Property Taxable Net Capacity as a Residential % of Commercial % of Personal % of Ag/Misc % of Tax Capacity % of Total Direct Total Percentage of Year Property Total Property Total Property Total Property Total Value Total Tax Rate Market Value Market Value 2011 $ 5,307,260 31.9% $ 10,897,898 65.5% $ 194,825 1.2% $ 229,016 1.4% $ 16,628,999 100.0% 46.729 $ 1,106,541,400 1.5% 2012 4,611,403 23.6% 14,538,165 74.3% 235,633 1.2% 194,492 1.0% 19,579,693 100.0% 49.773 1,219,719,700 1.6% 2013 4,824,117 25.4% 13,793,916 72.5% 239,129 1.3% 164,609 0.9% 19,021,771 100.0% 42.234 1,201,075,800 1.6% 2014 5,408,138 21.9% 18,818,097 76.4% 235,713 1.0% 184,750 0.7% 24,646,698 100.0% 44.709 1,513,570,400 1.6% 2015 5,861,759 22.1% 20,316,219 76.4% 238,732 0.9% 164,516 0.6% 26,581,226 100.0% 35.737 1,712,125,200 1.6% 2016 6,505,649 23.0% 21,386,874 75.6% 248,668 0.9% 166,437 0.6% 28,307,628 100.0% 34.471 1,828,437,600 1.5% 2017 7,325,880 24.2% 22,510,588 74.4% 272,344 0.9% 141,596 0.5% 30,250,408 100.0% 33.172 1,962,020,100 1.5% 2018 8,086,159 27.1% 21,262,918 71.4% 286,580 1.0% 148,899 0.5% 29,784,556 100.0% 32.333 1,974,154,400 1.5% 2019 8,924,604 29.2% 21,267,629 69.5% 274,720 0.9% 143,962 0.5% 30,610,915 100.0% 34.262 2,054,313,700 1.5% 2020 9,422,801 29.6% 21,941,590 69.0% 296,422 0.9% 135,311 0.4% 31,796,124 100.0% 34.967 2,135,371,400 1.5% Total Taxable Net Tax Capacity Value (Excludes Personal and Ag/Misc Property) $35 $30 $25 o $20 ■ Residential 2 $15 ■ Commercial $10 $5 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Note 1: The fiscal year is for the values in the year levied for taxes collectible in the following year. Note 2: Tax exempt property values are not included in total taxable net tax capacity value. Source: Wright County Certificate of Taxes and Taxable Properties. M Property Tax Rates - All Direct and Overlapping Governments Last Ten Fiscal Years 60 40 a io °C 20 0 Property Tax Rates For the three highest taxing authorities 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 (Wright County --*-School District #882 -City of Monticello CITY OF MONTICELLO Total (1) Direct and OverlaDoina 114.57 122.72 113.36 116.43 99.21 96.38 90.03 88.99 96.70 96.44 Note 1: Information reflects total tax rates levied by each entity. Tax rates are expressed in terms of "net tax capacity." A property's tax capacity is determined by multiplying its taxable market value by a state determined class rate. Class rates vary by property type and change periodically based on state legislation. Components of the direct rate are not readily available. Source: Wright County 97 Overlapping Taxing Districts Monticello City Wright School Special Year of Monticello County District #882 Districts 2011 46.73 39.31 27.03 1.50 2012 49.77 43.45 28.26 1.24 2013 42.23 44.29 26.23 0.61 2014 44.71 43.45 28.27 - 2015 35.74 40.59 22.88 - 2016 34.47 39.97 20.86 1.08 2017 33.17 39.60 16.24 1.02 2018 32.33 39.95 15.62 1.09 2019 34.26 44.27 16.97 1.20 2020 34.97 44.42 15.87 1.19 60 40 a io °C 20 0 Property Tax Rates For the three highest taxing authorities 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 (Wright County --*-School District #882 -City of Monticello CITY OF MONTICELLO Total (1) Direct and OverlaDoina 114.57 122.72 113.36 116.43 99.21 96.38 90.03 88.99 96.70 96.44 Note 1: Information reflects total tax rates levied by each entity. Tax rates are expressed in terms of "net tax capacity." A property's tax capacity is determined by multiplying its taxable market value by a state determined class rate. Class rates vary by property type and change periodically based on state legislation. Components of the direct rate are not readily available. Source: Wright County 97 Property Tax Levies and Collections Last Ten Fiscal Years PROPERTY TAXES Total Tax Fiscal Levy for 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 $ 7,677,351 7,850,042 7,900,724 8,151, 086 8,535,565 9,205,700 9,430,000 9,870,000 10,310,000 10,800,000 TAX INCREMENTS Total Tax Fiscal Levy for 2011 $ 1,071,686 2012 955,039 2013 971,745 2014 869,425 2015 729,130 2016 668,351 2017 650,375 2018 640,584 2019 680,301 2020 711,905 Source: Wright County Tax $ 293,075 Tax CITY OF MONTICELLO 0 Collected within the Total Collections Year of the Net Levy Collections in to Date Abatements Total Uncollected Net % of Subsequent % of and % of Levy Amount Net Levy Years Amount Net Levy Adjustments Amount Net Levy $ 7,384,276 $ 7,178,807 97.2% $ 185,763 $ 7,364,570 99.7% $ (19,371) $ 335 0.0% 7,850,042 7,759,174 98.8% 33,453 7,792,627 99.3% (57,061) 354 0.0% 7,900,724 7,827,356 99.1% 40,255 7,867,611 99.6% (31,626) 1,487 0.0% 8,151,086 8,109,373 99.5% 33,288 8,142,661 99.9% (7,013) 1,412 0.0% 8,535,565 8,498,745 99.6% 22,831 8,521,576 99.8% (12,524) 1,465 0.0% 9,205,700 9,177,787 99.7% 23,383 9,201,170 100.0% (3,733) 797 0.0% 9,430,000 9,416,303 99.9% 12,151 9,428,454 100.0% (1,546) - 0.0% 9,870,000 9,850,163 99.8% 10,991 9,861,154 99.9% (5,488) 3,358 0.0% 10,310,000 10,289,339 99.8% 11,864 10,301,203 99.9% (146) 8,651 0.1% 10,800,000 10,770,454 99.7% - 10,770,454 99.7% (928) 28,618 0.3% Collected within the Total Collections Year of the Net Levy Collections in to Date Abatements Total Uncollected Net % of Subsequent % of and % of Levy Amount Net Levy Years Amount Net Levy Adjustments Amount Net Levy $ 1,071,686 $ 1,044,309 97.4% $ 25,742 $ 1,070,051 99.8% $ (1,635) $ 0.0% 955,039 953,400 99.8% - 953,400 99.8% (1,639) 0.0% 971,745 970,071 99.8% - 970,071 99.8% (1,674) 0.0% 869,425 869,339 100.0% 60 869,399 100.0% (26) 0.0% 729,130 727,558 99.8% - 727,558 99.8% (1,572) 0.0% 668,351 668,351 100.0% 668,351 100.0% 0.0% 650,375 648,033 99.6% 648,033 99.6% (2,342) 0.0% 640,584 638,278 99.6% 638,278 99.6% (2,306) - 0.0% 680,301 679,925 99.9% 679,925 99.9% 376 0.1% 711,905 707,825 99.4% 707,825 99.4% (2,558) 1,522 0.2% 0 Principal Property Taxpayers Current Year and Nine Years Ago L&P Ventures, LLC AX TC Retail, LP BBF Properties Tapper's Holdings of Monticello, LLC $ 924,686,500 $ 18,278,202 57.5% (1) The market value and taxable net tax capacity value is for taxes levied in 2020, which are payable in 2021. Source: Wright County Certificate of Taxes and Taxable Properties and 2011 City of Monticello Financial Report CITY OF MONTICELLO 2011 Percentage of Taxable Net Tax Total Net Tax Market Value Capacity Value Rank Capacity Value $ 312,906,200 $ 6,252,112 1 37.6% 11,818,900 235,628 2020 1.4% 12,804,400 255,338 2 1.5% 7,617,300 Percentage of 4 (1) Taxable Net Tax 143,730 Total Net Tax Taxpayer Market Value Capacity Value Rank Capacity Value Xcel Energy (Northern States) $ 830,869,200 $ 16,610,285 1 52.2% IRET Properties 26,233,600 327,920 2 1.0% Mills Fleet Farm (Venturian Holdings) 12,911,000 255,220 3 0.8% Target Corporation 10,000,000 199,250 4 0.6% Walmart Real Estate Bus Trust 9,687,200 192,994 5 0.6% RCG-Monticello MN, LLC 9,331,300 182,126 6 0.6% CentraCare Medical Center (New River) 7,272,000 145,440 7 0.5% Home Depot USA, Inc. 6,501,500 129,280 8 0.4% Clear Creek Land Company, LLC 6,176,000 122,770 9 0.4% Spirit Master Funding (Muller Theatres) 5,704,700 112,917 10 0.4% L&P Ventures, LLC AX TC Retail, LP BBF Properties Tapper's Holdings of Monticello, LLC $ 924,686,500 $ 18,278,202 57.5% (1) The market value and taxable net tax capacity value is for taxes levied in 2020, which are payable in 2021. Source: Wright County Certificate of Taxes and Taxable Properties and 2011 City of Monticello Financial Report CITY OF MONTICELLO 2011 Percentage of Taxable Net Tax Total Net Tax Market Value Capacity Value Rank Capacity Value $ 312,906,200 $ 6,252,112 1 37.6% 11,818,900 235,628 3 1.4% 12,804,400 255,338 2 1.5% 7,617,300 152,346 4 0.9% 7,224,000 143,730 5 0.9% 5,536,400 109,597 7 0.7% 5,529,100 109,832 6 0.7% 5,156,900 101,638 8 0.6% 3,977,400 78,798 9 0.5% 3,999,400 78,488 10 0.5% $ 376,570,000 $ 7,517,507 45.2% CITY OF MONTICELLO New Construction and Bank Deposits Last Ten Fiscal Years New Residential and Commercial Construction $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 — - ■ — ' � ' — ■ 2011 2012 14 2015 2016 2017 2018 LU1_ ■ Residential ■ Commercial (1) Reported for Wright County as of June 30 Source: City of Monticello building department and FDIC Market Share Reports 100 Building Permits Bank Deposits (000s) New New New New Total New Commercial Commercial Residential Residential Residential & Percent Year Permits Value Permits Value Commercial Total (1) Change 2011 5 $ 1,987,000 2 $ 336,606 $ 2,323,606 $ 1,389,163 7.8% 2012 2 880,000 22 3,520,415 4,400,415 1,407,421 1.3% 2013 3 1,790,000 52 8,920,580 10,710,580 1,425,497 1.3% 2014 3 2,106,000 72 12,317,617 14,423,617 1,486,376 4.3% 2015 2 763,000 44 8,836,399 9,599,399 1,557,782 4.8% 2016 7 19,425,000 61 12,750,071 32,175,071 1,643,984 5.5% 2017 3 3,270,264 64 13,358,118 16,628,382 1,765,565 7.4% 2018 4 6,783,829 58 12,148,575 18,932,404 1,827,691 3.5% 2019 4 7,228,571 56 10,712,880 17,941,451 1,915,042 4.8% 2020 1 1,050,000 68 12,473,308 13,523,308 2,387,138 24.7% New Residential and Commercial Construction $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 — - ■ — ' � ' — ■ 2011 2012 14 2015 2016 2017 2018 LU1_ ■ Residential ■ Commercial (1) Reported for Wright County as of June 30 Source: City of Monticello building department and FDIC Market Share Reports 100 Water Sold by Customer Type Last Ten Fiscal Years (gallons) Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 CITY OF MONTICELLO % of Residential Total 348,580,072 66.0% 426,358,402 69.0% 383,079,041 68.8% 328,835,772 68.2% 325,188,041 68.1% 329,068,876 67.7% 371,596,967 67.7% 352,322,681 67.3% 307,411,101 64.0% 392,258,038 70.1% CITY OF MONTICELLO % of Commercial Total 84,194, 027 15.9% 97,281,410 15.7% 85,819,687 15.4% 79,370,922 16.5% 76,283,322 16.0% 77,795,226 16.0% 93,770,712 17.1% 89,911,481 17.2% 93,783,767 19.5% 92,058,431 16.5% CITY OF MONTICELLO % of Industrial Total 50,971,196 9.7% 46,654,712 7.5% 45,954,136 8.2% 38,308,124 7.9% 38,897,216 8.1% 42,407,860 8.7% 43,220,312 7.9% 43,067,083 8.2% 44,120,527 9.2% 39,630,515 7.1% CITY OF MONTICELLO Water Sold by Customer Type (gallons) 700 600 500 ■ Government 0 400 ■ Industrial g 300 ■ Commercial 200 ■ Residential 100 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Source: City of Monticello utility billing department 101 Total % of Water °% of Government Total Sold Total 44,219,755 8.4% 527,965,050 100.0% 47,866,428 7.7% 618,160,952 100.0% 42,206,803 7.6% 557,059,667 100.0% 35,566,000 7.4% 482,080,818 100.0% 37,005,919 7.8% 477,374,498 100.0% 36,647,583 7.5% 485,919,545 100.0% 40,409,649 7.4% 548,997,640 100.0% 38,128,401 7.3% 523,429,646 100.0% 35,187,913 7.3% 480,503,308 100.0% 35,351,965 6.3% 559,298,949 100.0% Water Sold by Customer Type (gallons) 700 600 500 ■ Government 0 400 ■ Industrial g 300 ■ Commercial 200 ■ Residential 100 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Source: City of Monticello utility billing department 101 CITY OF MONTICELLO Water and Sewage Utility Rates Last Ten Fiscal Years Note: The city began billing monthly in 2017. Source: City of Monticello fee schedule 102 Water Sewage Residential Commercial Rate Tier 1 Rate Tier 2 Rate Tier 3 Rate Tier 4 Rate Tier 1 Rate Tier 2 Rate Tier 3 Rate Tier 4 Rate Tier 1 Rate Tier 1 Base Rate 501-4,000 4,001-13,369 Over 13,369 Base Rate 501-4,000 4,001-13,369 Over 13,369 Base Rate Over 500 Fiscal First 500 per 100 per 100 per 100 First 500 per 100 per 100 per 100 First 500 per 100 Year Cubic Feet Cubic Feet Cubic Feet Cubic Feet Cubic Feet Cubic Feet Cubic Feet Cubic Feet Cubic Feet Cubic Feet 2011 $ 14.30 $ 0.95 $ 1.10 $ 1.20 $ 14.30 $ 0.95 $ 1.10 $ 1.20 $ 16.75 $ 3.00 2012 15.44 1.03 1.19 1.30 15.44 1.03 1.19 1.30 18.76 3.36 2013 17.00 1.13 1.31 1.43 17.00 1.13 1.31 1.43 20.65 3.70 2014 17.00 1.13 1.31 1.43 17.00 1.13 1.31 1.43 20.65 3.70 2015 17.85 1.19 1.38 1.50 17.85 1.19 1.38 1.50 21.69 3.89 2016 18.85 1.22 1.41 1.50 18.85 1.22 1.41 1.50 22.69 3.97 Water Sewage Residential Commercial Rate Tier 1 Rate Tier 2 Rate Tier 3 Rate Tier 4 Rate Tier 1 Rate Tier 2 Rate Tier 3 Rate Tier 4 Rate Tier 1 Rate Tier 1 Base Rate 1,001-10,000 10,001-33,000 Over 33,000 Base Rate 1,001-10,000 10,001-33,000 Over 33,000 Base Rate Over 1,000 Fiscal First 1,000 per 1,000 per 1,000 per 1,000 First 1,000 per 1,000 per 1,000 per 1,000 First 1,000 per 1,000 Year Gallons Gallons Gallons Gallons Gallons Gallons Gallons Gallons Gallons Gallons 2017 6.45 1.66 1.92 2.09 6.45 1.66 1.92 2.09 8.05 5.48 2018 6.95 1.70 1.97 2.15 6.95 1.70 1.97 2.15 8.75 5.63 2019 7.10 1.74 2.02 2.21 7.10 1.74 2.02 2.21 9.00 5.77 2020 7.10 1.74 2.02 2.21 7.10 1.74 2.02 2.21 9.18 5.89 Note: The city began billing monthly in 2017. Source: City of Monticello fee schedule 102 Ratios of Outstanding Debt by Type Last Ten Fiscal Years Governmental activities General obligation bonds Special assessment Other Tax abatement Net premium (discount) Total GO bonds Certificates of indebtedness Total general obligation debt Non -general obligation bonds Revenue Total governmental activites Business -type activities General obligation revenue bonds Non -general obligation Revenue bonds PFA notes Net premium (discount) Total business -type activities Total primary government % of personal income (1) Per capita debt (1) CITY OF MONTICELLO 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 $ 29,490,000 $ 26,625,000 $ 13,010,000 $ 12,203,653 $ 11,689,653 $ 12,730,000 $ 12,695,000 $ 10,925,000 $ 9,200,000 $ 9,290,000 10,196,903 8,877,403 7,506,653 10,487,000 9,563,000 7,686,000 5,785,000 5,375,000 11,600,000 10,770,000 - - - - - - 2,960,000 7,800,000 8,390,000 7,845,000 818,803 744,748 265,320 67,350 190,196 159,266 128,336 105,777 69,187 44,028 40,505,706 36,247,151 20,781,973 22,758,003 21,442,849 20,575,266 21,568,336 24,205,777 29,259,187 27,949,028 445,000 385,000 325,000 265,000 200,000 135,000 70,000 - 40,505,706 36,247,151 21,226,973 23,143,003 21,767,849 20,840,266 21,768,336 24,340,777 29,329,187 27,949,028 3,690,898 2,739,341 1,782,784 985,000 $ 44,196,604 $ 38,986,492 $ 23,009,757 $ 24,128,003 $ 21,767,849 $ 20,840,266 $ 21,768,336 $ 24,340,777 $ 29,329,187 $ 27,949,028 $ 654,097 $ 568,597 $ 3,479,347 $ 3,206,347 $ 2,930,347 $ 2,460,000 $ 2,280,000 $ 2,095,000 $ 1,910,000 $ 1,720,000 26,445,000 26,445,000 26,445,000 - - - - - - - - - - - 615,268 1,927,850 1,998,402 1,903,000 1,800,000 1,696,000 (434,904) (412,366) (360,211) 31,941 30,339 27,354 23,495 21,510 19,524 17,539 $ 26,664,193 $ 26,601,231 $ 29,564,136 $ 3,238,288 $ 3,575,954 $ 4,415,204 $ 4,301,897 $ 4,019,510 $ 3,729,524 $ 3,433,539 $ 70,860,797 $ 65,587,723 $ 52,573,893 $ 27,366,291 $ 25,343,803 $ 25,255,470 $ 26,070,233 $ 28,360,287 $ 33,058,711 $ 31,382,567 15.3% 13.2% 10.1% 5.1% 4.4% 4.2% 4.2% 4.4% 4.8% 4.4% $ 5,554 $ 5,071 $ 4,055 $ 2,106 $ 1,931 $ 1,899 $ 1,944 $ 2,093 $ 2,399 $ 2,260 (1) See the Schedule of Demographic and Economic Statistics. Source, Details regarding the city's outstanding debt can be found in the notes to basic financial statements. 103 Ratios of Net General Obligation Bonded Debt Outstanding Last Ten Fiscal Years Year Less Net General Position Obligation Restricted for Bonds (1) Debt Service TM.1 CITY OF MONTICELLO Percentage of Estimated Actual Market Value of Property (2) Per Capita (3) 2011 $ 41,159,803 $ 16,894,936 $ 24,264,867 2.19% $ 1,902 2012 36,815,748 13,061,044 23,754,704 1.95% 1,836 2013 24,706,320 9,660,316 15,046,004 1.25% 1,161 2014 26,349,350 9,942,901 16,406,449 1.08% 1,263 2015 24,728,535 9,266,800 15,461,735 0.90% 1,178 2016 23,327,620 7,009,231 16,318,389 0.89% 1,227 2017 24,071,831 6,359,147 17,712,684 0.90% 1,321 2018 26,457,287 6,082,504 20,374,783 1.03% 1,503 2019 31,258,711 5,251,080 26,007,631 1.27% 1,887 2020 29,686,567 2,565,047 27,121,520 1.27% 1,953 (1) Does not include revenue bonds. (2) See the Schedule of Taxable Net Tax Capacity Value and Estimated Market Value of Taxable Property for the estimated actual market value. (3) See the Schedule of Demographic and Economic Statistics. Source: Details regarding the city's outstanding debt can be found in the notes to basic financial statements. 104 CITY OF MONTICELLO Legal Debt Margin Information Last Ten Fiscal Years Fiscal Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Legal debt limit $ 33,196,242 $ 36,591,591 $ 35,671,296 $ 45,407,112 $ 51,363,756 $ 54,853,128 $ 58,860,603 $ 59,224,632 $ 61,629,411 $ 64,061,142 Total net debt applicable to debt limit 4,365,000 3,795,000 6,200,000 10,872,000 9,888,000 7,951,000 8,945,000 13,310,000 20,060,000 14,390,000 Legal debt margin $ 28,831,242 $ 32,796,591 $ 29,471,296 $ 34,535,112 $ 41,475,756 $ 46,902,128 $ 49,915,603 $ 45,914,632 $ 41,569,411 $ 49,671,142 Total net debt applicable to debt limit as a percentage of debt limit 13.1% 10.4% 17.4% 23.9% 19.3% 14.5% 15.2% 22.5% 32.5% 22.5% Legal Debt Margin Calculation for Fiscal Year 2020 Market value $ 2,135,371,400 Debt limit (3% of market value) $ 64,061,142 Debt applicable to limit General obligation bonds $ 29,625,000 Less amounts for general obligation bonds not subject to debt limit (15,235,000) Total net debt applicable to limit Legal debt margin Source: Details regarding the city's outstanding debt can be found in the notes to basic financial statements. Market value data provided in Wright County Certificate of Taxes and Taxable Properties. 14,390,000 $ 49,671,142 105 Computation of Direct and Overlapping Debt As of December 31, 2020 Total Overlapping Debt Total direct and overlapping debt CITY OF MONTICELLO Amount applicable to city $ 27,949,028 35,092,480 24,250,050 59,342,530 $ 87,291,558 (1) The percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable percentages were estimated by determining the portion of the government's taxable assessed value that is within the City's boundaries and dividing it by the government's total taxable assessed value. Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the City. This process recognizes that, when considering the government's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident and, therefore, responsible for repaying the debt of each overlapping government. Source: The Wright County auditor provided the debt outstanding and estimated applicable percentages for the school district and county. 106 Estimated Gross percentage bonded debt applicable Jurisdiction outstanding to city (1) DIRECT DEBT: City of Monticello $ 27,949,028 100.0% OVERLAPPING DEBT: I.S.D. 882 47,680,000 73.6% Wright County 146,970,000 16.5% Total Overlapping Debt Total direct and overlapping debt CITY OF MONTICELLO Amount applicable to city $ 27,949,028 35,092,480 24,250,050 59,342,530 $ 87,291,558 (1) The percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable percentages were estimated by determining the portion of the government's taxable assessed value that is within the City's boundaries and dividing it by the government's total taxable assessed value. Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the City. This process recognizes that, when considering the government's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident and, therefore, responsible for repaying the debt of each overlapping government. Source: The Wright County auditor provided the debt outstanding and estimated applicable percentages for the school district and county. 106 CITY OF MONTICELLO Schedule of General Obligation Revenue Bond Coverage Last Ten Fiscal Years Sewage Fund: Net Revenue Gross Operating Available for Debt Service Requirements (3) Year (3) Revenues (1) Expenses(2) Debt Service Principal Interest Total Coverage 2013 $ 2,006,718 $ 1,476,418 $ 530,300 $ - $ - $ - 2014 2,081,660 1,570,197 511,463 273,000 91,963 364,963 140.1% 2015 2,083,122 1,479,157 603,965 276,000 84,158 360,158 167.7% 2016 2,223,252 1,411,831 811,421 570,830 78,002 648,832 125.1% 2017 2,472,774 1,552,617 920,157 289,000 63,823 352,823 260.8% 2018 2,581,833 1,674,428 907,405 287,149 81,125 368,274 246.4% 2019 2,443,856 1,596,714 847,142 288,000 76,826 364,826 232.2% 2020 2,559,354 1,663,234 896,120 294,000 72,972 366,972 244.2% (1) Total revenues does not include investment earnings. (2) Total operating expenses excluding depreciation. (3) The first year of bond payments is 2014. Schedule excludes telecommunications bonds. No other revenue bonds existed before 2013. Source: Finance Department 107 CITY OF MONTICELLO Demographic and Economic Statistics Last Ten Fiscal Years Notes/sources: (1) Minnesota State Demographic Center population estimates. (2) Annual average unemployment rate for Wright County provided by the Minnesota Department of Employment & Economic Development. (3) ISD No. 882 enrollment information was obtained from the District's Financial Report for the year ended June 30, 2020. (4) This estimated personal income number is calculated by taking the per capita personal income and multiplying it by the city's population. Also see note (5) regarding the per capita personal income figures. (5) Per capita personal income data is provided by the Bureau of Economic Analysis. Monticello's estimates are based on Wright County information. Wright County, where Monticello is located, is the smallest, relevant statistical tracking area. Data is subject to annual revisions by the Bureau of Economic Analysis. 108 Per Estimated Capita Unemployment School Personal Personal Year Population (1) rate (2) Enrollment (3) Income (4) Income (5) 2011 12,759 7.5% 3,921 $ 462,041,667 $ 36,728 2012 12,935 6.2% 3,989 498,178,590 39,241 2013 12,964 4.6% 4,031 520,193,464 40,898 2014 12,993 3.8% 4,010 531,660,567 41,844 2015 13,125 3.7% 4,115 570,058,125 43,710 2016 13,299 4.3% 4,119 603,960,786 45,458 2017 13,409 3.5% 4,074 620,461,248 46,333 2018 13,553 3.4% 4,157 644,811,081 48,370 2019 13,782 3.8% 4,053 691,594,542 50,480 2020 13,886 4.4% 4,108 716,642,574 51,609 Notes/sources: (1) Minnesota State Demographic Center population estimates. (2) Annual average unemployment rate for Wright County provided by the Minnesota Department of Employment & Economic Development. (3) ISD No. 882 enrollment information was obtained from the District's Financial Report for the year ended June 30, 2020. (4) This estimated personal income number is calculated by taking the per capita personal income and multiplying it by the city's population. Also see note (5) regarding the per capita personal income figures. (5) Per capita personal income data is provided by the Bureau of Economic Analysis. Monticello's estimates are based on Wright County information. Wright County, where Monticello is located, is the smallest, relevant statistical tracking area. Data is subject to annual revisions by the Bureau of Economic Analysis. 108 Principal Employers Current Year and Nine Years Ago Employer Xcel Energy (Northern States) ISD No. 882 (Monticello) CentraCare Medical Center (New River) Cargill Kitchen Solutions (Sunny Fresh) Wal-Mart Supercenter City of Monticello Home Depot Target Ultra Machine Corporation Cub Foods WSI Industries, Inc. Standard Iron & Wire Works 3,196 45.3% (1) The city estimates its workforce by using the city's percentage of total county population and multiplying that number by the county's total workforce. Source: City of Monticello 2020A Bond Statement and 2011 City of Monticello CAFR CITY OF MONTICELLO 2020 180 6 2.5% 100 10 Percentage of 4,346 60.0% Total City Employees Rank Employment (1) 600 1 8.2% 576 2 7.9% 500 3 6.8% 350 4 4.8% 300 5 4.1% 230 6 3.1% 150 7 2.0% 150 7 2.0% 140 9 1.9% 100 10 1.4% 100 10 1.4% 3,196 45.3% (1) The city estimates its workforce by using the city's percentage of total county population and multiplying that number by the county's total workforce. Source: City of Monticello 2020A Bond Statement and 2011 City of Monticello CAFR CITY OF MONTICELLO 140 9 2011 180 6 2.5% 100 10 Percentage of 4,346 60.0% Total City Employees Rank —Employment (1) 2,000 1 27.6% 544 2 7.5% 500 3 6.9% 250 5 3.5% 325 4 4.5% 147 8 2.0% 160 7 2.2% 140 9 1.9% 180 6 2.5% 100 10 1.4% 4,346 60.0% 109 CITY OF MONTICELLO City Government Employees by Function/Program Last Ten Fiscal Years FT = Full-time PT = Part-time (1) Includes seasonal public works (2) Years 2011-2013 were estimated 2014 levels as data was not previously tracked. Reduction in 2020 was due to COVID-19 pandemic. (3) Prior to 2013, the deputy registrar function was included with general government. Prior years were restated. (4) Management and operations were contracted out beginning July 1, 2016. Source: City of Monticello human resources department 110 Fiscal Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Employees by function General Fund General government 11.00 11.00 11.00 12.50 12.50 13.50 11.50 11.50 11.50 11.75 Public Safety Building 3.00 3.00 3.00 3.00 4.00 4.00 4.00 3.00 3.00 3.00 Fire marshal - - - - - - - 1.00 1.00 1.00 Public works Engineering 3.00 3.00 1.00 1.00 1.00 1.00 1.00 2.00 2.00 2.00 Maintenance(1) 19.00 19.00 19.00 18.50 18.50 18.50 10.50 9.50 9.60 8.80 Recreation and culture Parks 5.00 5.00 5.00 5.00 5.00 5.00 13.00 10.00 8.90 9.90 Community development 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 Special Revenue Funds Recreation and culture Community center -FT 8.00 8.00 8.00 7.50 7.50 7.50 7.50 7.50 7.50 7.50 Community center-PT(2) 36.50 36.50 36.50 36.50 36.50 36.50 38.10 37.30 35.00 14.70 Enterprise Funds Sewer/water 4.00 4.00 4.00 4.00 5.00 5.00 6.00 6.00 6.50 6.50 Deputy registrar(3) 5.00 5.00 5.00 5.00 5.00 5.00 7.50 7.00 7.60 6.80 Liquor store 10.00 10.00 10.00 11.50 11.50 11.50 12.40 13.10 14.20 11.90 FiberNet(4) 11.50 11.50 8.50 8.50 8.50 Total 118.00 118.00 113.00 115.00 117.00 109.50 113.50 109.90 108.80 85.85 Employees by fund type General Fund 43.00 43.00 41.00 42.00 43.00 44.00 42.00 39.00 38.00 38.45 Special Revenue Funds 44.50 44.50 44.50 44.00 44.00 44.00 45.60 44.80 42.50 22.20 Enterprise Funds 30.50 30.50 27.50 29.00 30.00 21.50 25.90 26.10 28.30 25.20 118.00 118.00 113.00 115.00 117.00 109.50 113.50 109.90 108.80 85.85 FT = Full-time PT = Part-time (1) Includes seasonal public works (2) Years 2011-2013 were estimated 2014 levels as data was not previously tracked. Reduction in 2020 was due to COVID-19 pandemic. (3) Prior to 2013, the deputy registrar function was included with general government. Prior years were restated. (4) Management and operations were contracted out beginning July 1, 2016. Source: City of Monticello human resources department 110 Operating Indicators by Function Last Ten Fiscal Years Function Fire Calls for service Public works Salt (tons) Sand (tons) Crack sealant (pounds) Asphalt repairs (tons of asphalt) Recreation and culture Shade trees planted Diseased trees removed Trails maintained (miles) Community center users Program sales Rental revenue Economic development Permits issued Permit valuation New single-family dwellings Water Meters/remotes replaced Curb box repairs (water valves) Hydrant repair Residential water gallons used Avg. daily consumption (MG) Max. daily gallons pumped (MG) Sewer Sewage flow (MG) Thickened sludge (wet tons) Thickened sludge (dry tons) Dry tons as % of wet tons Library Items checked out Programs offered Program participants CITY OF MONTICELLO Fiscal Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 284 237 270 286 262 270 312 269 294 272 445 300 475 385 534 525 461 585 752 730 547 335 325 600 285 300 397 329 432 400 11,384 1,492 25,739 23,282 29,580 49,039 46,721 46,868 47,176 44,456 253 220 225 190 293 220 167 164 492 443 140 220 275 270 257 280 320 305 314 220 113 205 71 46 208 60 40 12 15 6 17 17 17 18 18 20 40 40 41 41 190,014 175,272 211,234 204,134 199,228 197,523 188,124 183,523 183,521 71,632 $ 168,159 $ 162,227 $ 192,708 $ 184,125 $ 213,924 $ 193,628 $ 162,461 $ 183,194 $ 112,506 $ 22,129 $ 154,962 $ 149,733 $ 163,329 $ 150,964 $ 154,938 $ 168,353 $ 190,343 $ 199,200 $ 197,351 $ 80,040 372 632 659 721 768 802 911 856 837 957 $ 5,333,124 $ 12,285,873 $ 15,821,223 $ 19,714,895 $ 36,242,742 $ 59,426,683 $ 43,853,123 $ 33,125,788 $ 45,723,446 $ 32,453,366 2 22 52 72 44 61 64 58 56 68 215 418 235 598 694 991 734 606 426 54 200 100 100 100 100 100 100 50 4 25 430 300 300 203 430 250 177 159 65 35 348,580,072 426,358,402 383,079,041 328,835,772 325,188,041 329,068,876 371,596,967 352,322,681 307,411,101 392,258,038 1.557 1.798 1.621 1.400 1.308 1.419 1.580 1.540 1.401 1.650 4.116 4.590 4.269 4.031 3.203 3.450 4.168 3.400 3.064 4.295 431 408 392 435 417 432 445 434 473 450 n/a n/a n/a 1,924 1,549 1,449 1,578 2,115 2,145 2,100 n/a n/a n/a 264 236 216 229 333 336 325 n/a n/a n/a 0 0 0 14.5% 15.7% 15.7% 15.5% 228,886 237,938 263,220 199,182 195,235 190,433 182,986 182,691 171,460 112,334 153 149 173 169 167 212 290 287 243 102 3,807 3,761 3,773 3,788 3,919 4,306 5,336 5,059 4,788 4,810 (continued) 111 Operating Indicators by Function Last Ten Fiscal Years (continued) Fiber optics Customers Service subscriptions TV customers Phone customers Internet customers Liquor store Transactions Average liquor sale transaction Beer sales Liquor sales Wine sales Other sales Gross profit margin % - beer Gross profit margin % - liquor Gross profit margin % - wine Annual sales increase Deputy registrar (DMV) Motor vehicle transactions DNR transactions Game/fish transactions Drivers licenses transactions Total transactions Dealerships serviced Net revenue per transaction CITY OF MONTICELLO 54,814 56,211 55,261 60,051 64,927 67,508 70,605 Fiscal Year 129,825 115,466 5,616 5,465 5,727 5,949 5,914 6,318 2011 7,009 2012 2013 325 2014 445 2015 387 2016 647 2017 709 2018 579 2019 2020 n/a 1,294 n/a n/a 1,411 1,539 2,927 1,574 62,999 1,630 67,895 1,671 75,891 1,639 119,543 1,701 1,851 n/a n/a n/a n/a 19 2,755 27 2,656 30 2,589 $ 1.71 $ 2,528 2.68 $ 2,388 3.02 $ 2,381 2,439 n/a 3.48 $ n/a n/a 813 714 641 543 458 395 323 n/a n/a n/a 582 518 461 431 386 362 315 n/a n/a n/a 1,360 1,424 1,487 1,554 1,544 1,624 1,801 n/a n/a n/a 229,236 237,535 235,901 248,356 261,071 267,276 260,957 n/a n/a n/a $ 21.90 $ 22.42 $ 22.39 $ 22.42 $ 22.56 $ 23.07 $ 27.48 $ 2,328,735 $ 2,483,194 $ 2,539,168 $ 2,604,942 $ 2,763,478 $ 2,768,394 $ 2,933,853 $ 3,074,408 $ 3,252,142 $ 3,838,912 $ 1,343,109 $ 1,396,521 $ 1,506,776 $ 1,546,118 $ 1,634,198 $ 1,624,908 $ 1,739,562 $ 1,909,953 $ 2,019,096 $ 2,351,072 $ 748,908 $ 812,832 $ 860,817 $ 868,779 $ 927,732 $ 889,082 $ 894,151 $ 904,385 $ 894,005 $ 982,113 n/a n/a $ 138,854 $ 145,903 $ 166,654 $ 171,420 $ 192,615 $ 201,482 $ 212,052 $ 232,452 19.1% 20.3% 22.5% 21.4% 25.6% 21.1% 23.2% 21.4% 22.5% 21.2% 28.0% 29.3% 27.7% 30.3% 29.8% 29.0% 26.6% 29.0% 30.1% 30.7% 28.5% 31.4% 29.7% 30.7% 31.5% 32.5% 34.4% 32.5% 31.8% 33.4% 3.9% 4.1% 4.1% 2.4% 6.3% -0.7% 5.6% 5.7% 4.7% 16.1% 54,814 56,211 55,261 60,051 64,927 67,508 70,605 110,574 129,825 115,466 5,616 5,465 5,727 5,949 5,914 6,318 5,873 7,009 8,148 8,424 325 509 445 433 387 600 647 549 709 311 579 814 951 1,462 1,294 1,465 1,390 1,411 1,283 2,927 61,334 62,999 62,384 67,895 72,522 75,891 78,515 119,543 139,965 127,128 n/a n/a 19 19 19 21 27 28 30 32 $ 1.71 $ 2.75 $ 2.68 $ 2.91 $ 3.02 $ 3.05 $ 2.66 $ 2.21 $ 3.48 $ 2.15 N/A = Not Available MG= Millions of Gallons Notes: Indicators are not available for the general government function. State implementation of MNLARS changed how transactions are counted in 2018. In late 2020, the DMV's system changed again to MNDrive, which also counts transactions differently. Sources: Various city departments 112 Capital Assets Statistics by Function Last Ten Fiscal Years Function Public safety Fire Fire stations in service Number of volunteers Public works Streets (miles) Recreation and culture Parks acreage Parks Park buildings Community center (sq. ft.) Water Fire hydrants CITY OF MONTICELLO 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 1 1 1 1 1 1 1 1 1 1 30 30 30 30 30 30 30 30 30 30 68.0 68.0 68.0 68.0 68.0 68.0 69.0 70.0 70.0 70.0 635 635 696 860 326 367 367 404 404 404 28 28 28 30 30 30 30 30 30 30 15 15 15 15 15 15 15 18 18 18 81,000 81,000 82,000 82,000 82,000 82,000 82,000 82,000 82,000 82,000 700 700 700 700 700 700 700 700 700 700 Note: No capital asset indicators are available for the general government and economic development functions. Note: The city contributed jointly -owned land at the Bertram Chain of Lakes to Wright County in 2015. Source: Various city departments 113 Schedule of Cash Flows Adjusted for Additional City Funding of Fiber Optics Fund Last Six Fiscal Years Cash flows from operating activities Cash received from customers and users Cash paid to suppliers for goods and services Cash paid to employees Cash paid to other funds for services provided Net cash used by operating activities Cash flows from noncapital financing activities Transfers from other funds Intergovernmental revenues Net cash provided by noncapital financing activities Cash flows from capital and related financing activities Sale of assets Acquisition of capital assets Net cash provided (used) by capital and related financing activities Cash flows from investing activities Interest on investments Net increase (decrease) in cash and cash equivalents Additional city funding Transfer from liquor fund 2014A debt service paid by property tax levy Adjusted net decrease in cash and cash equivalents $600,000 $400,000 $200,000 $(200,000) $(400,000) $(600,000) $(800,000) $(1,000,000) CITY OF MONTICELLO 2015 2016 2017 2018 2019 2020 $1,733,236 $1,613,032 $1,886,377 $1,679,899 $1,789,793 $1,819,710 (1,332,231) (1,657,929) (1,955,033) (1,877,048) (1,465,167) (1,545,323) (565,657) (322,670) (18,367) (205) (244) (4,086) (24,291) (26,929) (1,530) (1,194) (1,050) (188,943) (394,496) (87,023) (198,884) 323,188 269,251 450,000 350,000 180,000 130,000 - - - - - - 82,063 450,000 350,000 180,000 130,000 82,063 29,850 (171,210) 29,850 (171,210) 8,255 5,783 4,490 3,216 16,259 14,001 299,162 (38,713) 97,467 (65,668) 339,447 194,105 (450,000) (350,000) (180,000) (130,000) (163,712) (515,519) (512,086) (512,665) (512,357) (511,638) $ (314,550) $ (904,232) $ (594,619) $ (708,333) $ (172,910) $ (317,533) Fiber Optics Fund Cash Flows 2015 2016 2017 2018 2019 2020 � Net increase(decrease)in cash and cash equivalents � Transfer from liquor fund 2014A debt service paid by property tax levy -Adjusted net decrease in cash and cash equivalents 114 BACK COVER CITY OF MONTICELLO WRIGHT COUNTY, MINNESOTA Special Purpose Audit Reports Year Ended December 31, 2020 THIS PAGE INTENTIONALLY LEFT BLANK CITY OF MONTICELLO WRIGHT COUNTY, MINNESOTA Special Purpose Audit Reports Year Ended December 31, 2020 Table of Contents Page Schedule of Expenditures of Federal Awards Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards 2-3 Independent Auditor's Report on Compliance for Each Major Federal Program; Report on Internal Control Over Compliance; and Report on the Schedule of Expenditures of Federal Awards Required by the Uniform Guidance 4-6 Independent Auditor's Report on Minnesota Legal Compliance 7 Schedule of Findings and Questioned Costs 8-9 THIS PAGE INTENTIONALLY LEFT BLANK CITY OF MONTICELLO Schedule of Expenditures of Federal Awards Year Ended December 31, 2020 Through Grantor/Program Title U.S. Depeartment of Treasury Passed through the Minnesota Department of Management and Budget COVID-19 — Coronavirus Relief Fund Pass -Through Entity Federal Identification Federal CFDA No. Number Expenditures 21.019 STL0016 $ 1,038,338 Note 1: The Schedule of Expenditures of Federal Awards is prepared on the accrual basis of accounting. The information in this schedule is presented in accordance with the OMB's Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from the amounts presented in, or used in the preparation of, the City's basic financial statements. Note 2: Unless noted in the table above, the pass-through entities use the same CFDA numbers as the federal grantors to identify these grants, and have not assigned any additional identifying numbers. Note 3: The City did not elect to use the 10 percent de minimis indirect cost rate. Note 4: Unaudited Disclosure — The City received donated personal protective equipment (PPE) with an estimated value of less than $1,000. The City was unable to determine whether federal dollars were used to purchase the donated PPE. -1- THIS PAGE INTENTIONALLY LEFT BLANK INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the City Council and Management City of Monticello, 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 Monticello, Minnesota (the City) as of and for the year ended December 31, 2020, and the related notes to the financial statements, which collectively comprise the City's basic financial statements, and have issued our report thereon dated May 14, 2021. INTERNAL CONTROL OVER FINANCIAL REPORTING In planning and performing our audit of the financial statements, we considered the City's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the City's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. (continued) -2- COMPLIANCE AND OTHER MATTERS As part of obtaining reasonable assurance about whether the City's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. PURPOSE OF THIS REPORT The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control and compliance. Accordingly, this report is not suitable for any other purpose. Minneapolis, Minnesota May 14, 2021 -3- INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM; REPORT ON INTERNAL CONTROL OVER COMPLIANCE; AND REPORT ON THE SCHEDULE OF EXPENDITURES I l 0 a 110 11:.11W.-\hV:N:X03.300001RNo0331AIIIW8101ITO:Nuroll] 10J."ere 0, To the City Council and Management City of Monticello, Minnesota REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM We have audited the City of Monticello, Minnesota's (the City) compliance with the types of compliance requirements described in the U.S. Office of Management and Budget Compliance Supplement that could have a direct and material effect on each of the City's major federal programs for the year ended December 31, 2020. The City's major federal programs are identified in the Summary of Audit Results section of the accompanying Schedule of Findings and Questioned Costs. MANAGEMENT'S RESPONSIBILITY Management is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs. AUDITOR'S RESPONSIBILITY Our responsibility is to express an opinion on compliance for each of the City's major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the City's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the City's compliance. (continued) -4- OPINION ON EACH MAJOR FEDERAL PROGRAM In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to on the previous page that could have a direct and material effect on each of its major federal programs for the year ended December 31, 2020. REPORT ON INTERNAL CONTROL OVER COMPLIANCE Management of the City is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to on the previous page. In planning and performing our audit of compliance, we considered the City's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program, and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City's internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. PURPOSE OF THIS REPORT 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. (continued) Irbil REPORT ON SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS REQUIRED BY THE UNIFORM GUIDANCE We have audited the financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City as of and for the year ended December 31, 2020, and the related notes to the financial statements, which collectively comprise the City's basic financial statements. We issued our report thereon dated May 14, 2021, which contained unmodified opinions on those financial statements. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by the Uniform Guidance and is 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 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 Schedule of Expenditures of Federal Awards is fairly stated, in all material respects, in relation to the basic financial statements as a whole. Minneapolis, Minnesota May 14, 2021 -6- THIS PAGE INTENTIONALLY LEFT BLANK INDEPENDENT AUDITOR'S REPORT ON MINNESOTA LEGAL COMPLIANCE To the City Council and Management City of Monticello, 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 Monticello, Minnesota (the City) as of and for the year ended December 31, 2020, and the related notes to the financial statements, which collectively comprise the City's basic financial statements, and have issued our report thereon dated May 14, 2021. MINNESOTA LEGAL COMPLIANCE In connection with our audit, nothing came to our attention that caused us to believe that the City failed to comply with the provisions of the contracting 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. PURPOSE OF THIS REPORT The purpose of this report is solely to describe the scope of our testing of compliance and the results of that testing, and not to provide an opinion on compliance. Accordingly, this report is not suitable for any other purpose. Minneapolis, Minnesota May 14, 2021 -7- THIS PAGE INTENTIONALLY LEFT BLANK CITY OF MONTICELLO Schedule of Findings and Questioned Costs December 31, 2020 A. SUMMARY OF AUDIT RESULTS This summary is formatted to provide federal granting agencies and pass-through agencies answers to specific questions regarding the audit of federal awards. Financial Statements What type of auditor's report is issued? X Unmodified Qualified Adverse Disclaimer Internal control over financial reporting: Material weakness(es) identified? Significant deficiency(ies) identified? Noncompliance material to the financial statements noted? Federal Awards Internal controls over major federal award programs: Material weakness(es) identified? Significant deficiency(ies) identified? Type of auditor's report issued on compliance for major programs? U.S. Department of Treasury — COVID-19 — Coronavirus Relief Fund Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? Programs tested as major programs: Program or Cluster U.S. Department of Treasury — COVID-19 — Coronavirus Relief Fund Threshold for distinguishing between type A and B programs: Does the auditee qualify as a low-risk auditee? 531 Yes X No Yes X None reported Yes X No Yes X No Yes X None reported Unmodified Yes X No CFDA No. 21.019 $ 750,000 Yes X No CITY OF MONTICELLO Schedule of Findings and Questioned Costs (continued) December 31, 2020 B. FINANCIAL STATEMENT FINDINGS None. C. FEDERAL AWARD FINDINGS AND QUESTIONED COSTS None. D. MINNESOTA LEGAL COMPLIANCE FINDINGS None. 10 Management Report for City of Monticello, Minnesota December 31, 2020 THIS PAGE INTENTIONALLY LEFT BLANK M 6KR CERTIFIED PUBLIC ACCOUNTANTS To the City Council and Management City of Monticello, Minnesota PRINCIPALS Thomas A. Karnowski, CPA Paul A. Radosevich, CPA William J. Lauer, CPA James H. Eichten, CPA Aaron J. Nielsen, CPA Victoria L. Holinka, CPA/CMA Jaclyn M. Huegel, CPA Kalen T. Karnowski, CPA We have prepared this management report in conjunction with our audit of the City of Monticello, Minnesota's (the City) financial statements for the year ended December 31, 2020. We have organized this report into the following sections: • Audit Summary • Governmental Funds Overview • Enterprise Funds Overview • Government -Wide Financial Statements • Legislative Updates • Accounting and Auditing Updates We would be pleased to further discuss any of the information contained in this report or any other concerns that you would like us to address. We would also like to express our thanks for the courtesy and assistance extended to us during the course of our audit. The purpose of this report is solely to provide those charged with governance of the City, management, and those who have responsibility for oversight of the financial reporting process comments resulting from our audit process and information relevant to city finances in Minnesota. Accordingly, this report is not suitable for any other purpose. Minneapolis, Minnesota May 14, 2021 Malloy, Montague, Karnowski, Radosevich & Co., P.A. 5353 Wayzata Boulevard • Suite 410 • Minneapolis, MN 55416 • Phone: 952-545-0424 • Fax: 952-545-0569 • www.mmkr.com THIS PAGE INTENTIONALLY LEFT BLANK AUDIT SUMMARY The following is a summary of our audit work, key conclusions, and other information that we consider important or that is required to be communicated to the City Council, administration, or those charged with governance of the City. OUR RESPONSIBILITY UNDER AUDITING STANDARDS GENERALLY ACCEPTED IN THE UNITED STATES OF AMERICA, GOVERNMENT AUDITING STANDARDS AND TITLE 2 U.S. CODE OF FEDERAL REGULATIONS PART 200, UNIFORM ADMINISTRA TIVE REQUIREMENTS, COST PRINCIPLES, AND AUDIT REQUIREMENTS FOR FEDERAL AWARDS (UNIFORM GUIDANCE) We have audited the financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City as of and for the year ended December 31, 2020. Professional standards require that we provide you with information about our responsibilities under auditing standards generally accepted in the United States of America, Government Auditing Standards, and the Uniform Guidance, as well as certain information related to the planned scope and timing of our audit. We have communicated such information to you verbally and in our audit engagement letter. Professional standards also require that we communicate the following information related to our audit. PLANNED SCOPE AND TIMING OF THE AUDIT We performed the audit according to the planned scope and timing previously discussed and coordinated in order to obtain sufficient audit evidence and complete an effective audit. AUDIT OPINION AND FINDINGS Based on our audit of the City's financial statements for the year ended December 31, 2020: • We have issued an unmodified opinion on the City's basic financial statements. • We reported no deficiencies in the City's internal control over financial reporting that we considered to be material weaknesses. • The results of our testing disclosed no instances of noncompliance required to be reported under Government Auditing Standards. • We reported that the Schedule of Expenditures of Federal Awards is fairly stated, in all material respects, in relation to the basic financial statements. • The results of our tests indicate that the City has complied, in all material respects, with the types of compliance requirements that could have a direct and material effect on each of its major federal programs. • We reported no deficiencies in the City's internal controls over compliance that we considered to be material weaknesses with the types of compliance requirements that could have a direct and material effect on each of its major federal programs. • We reported no findings based on our testing of the City's compliance with Minnesota laws and regulations. -1- OTHER OBSERVATIONS AND RECOMMENDATIONS Electronic Funds Transfers Fraud As the use of electronic funds transfers and payment methods has become more prevalent, we have seen increases in both the incidences of fraud related to these transactions and the dollar amounts involved. Operational changes related to the COVID-19 pandemic, including greater reliance on technology and more employees working remotely, have tended to increase risk in this area. We urge cities to carefully review controls over these transactions, and consider best practices to address these risks, such as: • Ensuring segregation of duties over these transactions by involving more than one employee in the process. • Requiring multi -factor authentication of requests for electronic payments from new vendors or for changes in wiring instructions for existing vendors. It is recommended that changes for existing vendors be verified through trusted contact information used previously for that vendor, not as provided in the change request, to verify the accuracy of the change. • Educate employees on the controls in place to protect the organization's financial assets and ensure management is supportive and accepting of the processes in place. Attempted fraudulent transactions are often initiated using the profile of a supervisor. Employees must be comfortable questioning unusual transactions or requests, and instructed not to circumvent internal control procedures regardless of whom they believe initiated the transaction. • Recommended cyber security measures, such as limiting network access and requiring robust passwords that are changed regularly, should be implemented and followed by all city employees, not just those directly involved with financial transactions. • Review insurance policies to understand the coverage provided for financial losses due to cybersecurity risks and evaluate whether they provide adequate coverage based on management's assessment of these risks. Uniform Guidance Written Controls and Micro -Purchase Threshold Federal Uniform Guidance requires that nonfederal entities must have and use documented procurement procedures consistent with 2CFR § 200.317-320 for the acquisition of property or services required under a federal award or subaward. Effective August 31, 2020, the federal micro -purchase threshold, which is the threshold that allows for procurements without soliciting competitive price or rate quotations given certain conditions, was increased from $3,500 to $10,000 in the Federal Acquisition Regulations (FAR). Effective November 12, 2020, the Uniform Guidance was also revised to allow nonfederal entities to establish a micro -purchase threshold higher than the $10,000 threshold established in the FAR under certain circumstances. The nonfederal entity may self -certify a micro -purchase threshold up to $50,000 if the requirements in 2CFR § 200.320(a)(1)(iv) are followed. Requirements include an annual self -certification and clear documentation of the justification to support the increase in the threshold. Acceptable reasons for justification must meet one of the following criteria: • A qualification as a low-risk auditee, in accordance with the criteria in §200.520 for the most recent audit, • An annual internal institutional risk assessment to identify, mitigate, and manage financial risks, or, • A higher threshold consistent with state law. This flexibility would allow Minnesota local governments to increase and align their federal procurement procedures, specifically the micro -purchase threshold, with state law, which allows for procurements below $25,000 to be made without competitive price or rate quotations. -2- We recommend that the City review its current federal procurement policy. If the micro -purchase threshold in your currently adopted policy is below the allowable FAR limit of $10,000, you would need to make a one-time amendment to the policy to adopt the $10,000 FAR limit before using it. If you prefer to increase your federal micro -purchase threshold to $25,000 to align it with state law, in addition to amending your federal procurement policy, you would need to annually certify the higher threshold and the justification for using the higher threshold. SIGNIFICANT ACCOUNTING POLICIES Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 of the notes to basic financial statements. No new accounting policies were adopted and the application of existing policies was not changed during the year ended December 31, 2020. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. ACCOUNTING ESTIMATES AND MANAGEMENT JUDGMENTS Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the financial statements were: • Depreciation — Management's estimates of depreciation expense are based on the estimated useful lives of the assets. Other Post -Employment Benefit (OPEB) and Pension Liabilities — The City has recorded liabilities and activity for pension benefits and OPEB. These obligations are calculated using actuarial methodologies described in Governmental Accounting Standards Board Statement Nos. 68 and 75. These actuarial calculations include significant assumptions, including projected changes, healthcare insurance costs, investment returns, retirement ages, proportionate share, and employee turnover. Land Held for Resale — These assets are stated at the lower of cost or acquisition value based on management's estimates. Compensated Absences — Management's estimate is based on current rates of pay, and vacation, sick, paid time off, and compensation time balances. We evaluated the key factors and assumptions used by management to develop these estimates in determining that they are reasonable in relation to the basic financial statements taken as a whole. Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The disclosures included in the notes to the basic financial statements related to OPEB and pension benefits are particularly sensitive, due to the materiality of the liabilities, and the large and complex estimates involved in determining the disclosures. The financial statement disclosures are neutral, consistent, and clear. DIFFICULTIES ENCOUNTERED IN PERFORMING THE AUDIT We encountered no significant difficulties in dealing with management in performing and completing our audit. S11 CORRECTED AND UNCORRECTED MISSTATEMENTS Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. There were no misstatements detected as a result of audit procedures that were material, either individually or in the aggregate, to each opinion unit's financial statements taken as a whole. DISAGREEMENTS WITH MANAGEMENT For purposes of this report, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit. MANAGEMENT REPRESENTATIONS We have requested certain representations from management that are included in the management representation letter dated May 14, 2021. MANAGEMENT CONSULTATIONS WITH OTHER INDEPENDENT ACCOUNTANTS In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to the City's financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. OTHER AUDIT FINDINGS OR ISSUES We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. OTHER MATTERS We applied certain limited procedures to the management's discussion and analysis (MD&A), the budgetary comparison schedules, and the pension and OPEB-related required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI. We were engaged to report on the combining and individual fund statements and schedules, reported as supplemental information accompanying the financial statements, and the separately issued Schedule of Expenditures of Federal Awards, which are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. We were not engaged to report on the introductory and statistical sections, which accompany the financial statements, but are not RSI. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on it. -4- GOVERNMENTAL FUNDS OVERVIEW This section of the report provides you with an overview of the financial trends and activities of the City's governmental funds, which include the General, special revenue, debt service, and capital project funds. These funds are used to account for the basic services the City provides to all of its citizens, which are financed primarily with property taxes. The governmental fund information in the City's financial statements focuses on budgetary compliance, and the sufficiency of each governmental fund's current assets to finance its current liabilities. PROPERTY TAXES Minnesota cities rely heavily on local property tax levies to support their governmental fund activities. For the 2019 fiscal year, local ad valorem property tax levies provided 40.8 percent of the total governmental fund revenues for cities over 2,500 in population, and 37.6 percent for cities under 2,500 in population. Total property taxes levied by all Minnesota cities for taxes payable in 2020 increased 6.1 percent from the prior year. The total tax capacity value of property in Minnesota cities increased about 6.5 percent for the 2020 levy year. The tax capacity values used for levying property taxes are based on the assessed market values for the previous fiscal year (e.g., tax capacity values for taxes levied in 2020 were based on assessed market values as of January 1, 2019), so the trend of change in these tax capacity values lags somewhat behind the housing market and economy in general. The City's taxable market value increased 4.1 percent for taxes payable in 2019 and 3.9 percent for taxes payable in 2020. The following graph shows the City's changes in taxable market value over the past 10 years: $2,200,000,000 $2,000,000,000 $1,800,000,000 $1,600,000,000 $1,400,000,000 $1,200,000,000 $1,000,000,000 $800,000,000 $600,000,000 $400,000,000 $200,000,000 Total Market Value 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 -5- Tax capacity is considered the actual base available for taxation. It is calculated by applying the state's property classification system to each property's market value. Each property classification, such as commercial or residential, has a different calculation and uses different rates. Consequently, a city's total tax capacity will change at a different rate than its total market value, as tax capacity is affected by the proportion of its tax base that is in each property classification from year-to-year, as well as legislative changes to tax rates. The City's tax capacity increased 2.8 percent and 3.9 percent for taxes payable in 2019 and 2020, respectively. The following graph shows the City's change in tax capacities over the past 10 years: Net Tax Capacity $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 The following table presents the average tax rates applied to city residents for each of the last three levy years: Rates Expressed as a Percentage of Net Tax Capacity City of Monticello 2018 2019 2020 Average tax rate City 32.3 34.3 35.0 County 40.0 44.2 44.4 School 15.6 17.0 15.8 Special taxing 1.1 1.2 1.2 Total 89.0 96.7 96.4 IRS GOVERNMENTAL FUND BALANCES The following table summarizes the changes in the fund balances of the City's governmental funds during the year ended December 31, 2020, presented both by fund balance classification and by major fund: Governmental Fund Changes in Fund Balance Fund balances of governmental funds Total by classification Nonspendable Restricted Assigned Unassigned Total governmental funds Fund Balance as of December 31, 2019 2020 Change $ 207,167 $ 173,203 $ (33,964) 7,567,522 5,008,177 (2,559,345) 21,227,605 24,358,352 3,130,747 6,542,111 6,494,632 (47,479) $ 35,544,405 $ 36,034,364 $ 489,959 Total by fund Major funds General $ 6,677,250 $ 6,640,235 $ (37,015) Community Center 239,482 52,357 (187,125) Economic Development Authority 7,313,264 6,518,705 (794,559) Debt Service 1,821,561 1,304,532 (517,029) Capital Projects 15,200,401 17,157,596 1,957,195 Nonmajor funds 4,292,447 4,360,939 68,492 Total governmental funds $ 35,544,405 $ 36,034,364 $ 489,959 In total, the fund balances of the City's governmental funds increased by $489,959 during the year ended December 31, 2020. The majority of the increase was related to proceeds from the 2020A $2,155,000 general obligation bond issuance used to finance capital project costs. The increase in the assigned balance was mostly due to an increase in the Capital Projects Fund related to transfers from the Water and Sewage Enterprise Funds for future capital projects. ere GOVERNMENTAL FUNDS REVENUE AND EXPENDITURES The following table presents the per capita revenue of the City's governmental funds for the past three years, along with state-wide averages. We have included the most recent comparative state-wide averages available from the Office of the State Auditor to provide a benchmark for interpreting the City's data. The amounts received from the typical major sources of governmental fund revenue will naturally vary between cities based on factors such as a city's stage of development, location, size and density of its population, property values, services it provides, and other attributes. It will also differ from year-to-year, due to the effect of inflation and changes in its operation. Also, certain data in these tables may be classified differently than how they appear in the City's financial statements in order to be more comparable to the state-wide information, particularly in separating capital expenditures from current expenditures. We have designed this section of our management report using per capita data in order to better identify unique or unusual trends and activities of the City. We intend for this type of comparative and trend information to complement, rather than duplicate, information in the MD&A. An inherent difficulty in presenting per capita information is the accuracy of the population count, which for most years is based on estimates. The City's per capita governmental funds revenue for 2020 was $1,259, a decrease of about 0.4 percent from the prior year. Property taxes increased $29 per capita, due to an increase in the certified levy. Intergovernmental revenues increased $54 per capita from revenue related to the City's portion of coronavirus relief funds (CRF). Charges for services decreased $61 per capita, mainly from decreased charges at the community center, due to the COVID-19 pandemic and the related temporary closure of this facility. Other revenues decreased by $16 per capita, mainly due to a reduction in investment earnings. Governmental Funds Revenue per Capita With State -Wide Averages by Population Class State -Wide City of Monticello Year December 31, 2019 2018 2019 2020 Population 2,500-10,000 10,000-20,000 20,000-100,000 13,553 13,782 13,886 Property taxes $ 514 $ 489 $ 512 $ 735 $ 753 $ 782 Tax increments 30 28 44 47 49 51 Franchise fees and other taxes 45 50 50 29 31 30 Special assessments 54 38 53 52 52 46 Licenses and permits 40 35 51 37 44 38 Intergovernmentalrevenues 342 297 201 67 65 119 Charges for services 135 108 115 155 167 106 Other 89 78 79 52 103 87 Total revenue $ 1,249 $ 1,123 $ 1,105 $ 1,174 $ 1,264 $ 1,259 The City's per capita governmental funds revenue for 2020 was $1,259, a decrease of about 0.4 percent from the prior year. Property taxes increased $29 per capita, due to an increase in the certified levy. Intergovernmental revenues increased $54 per capita from revenue related to the City's portion of coronavirus relief funds (CRF). Charges for services decreased $61 per capita, mainly from decreased charges at the community center, due to the COVID-19 pandemic and the related temporary closure of this facility. Other revenues decreased by $16 per capita, mainly due to a reduction in investment earnings. The expenditures of governmental funds will also vary from state-wide averages and from year-to-year, based on the City's circumstances. Expenditures are classified into three types as follows: • Current — These are typically the general operating type expenditures occurring on an annual basis, and are primarily funded by general sources, such as taxes and intergovernmental revenues. • Capital Outlay and Construction — These expenditures do not occur on a consistent basis, more typically fluctuating significantly from year-to-year. Many of these expenditures are project -oriented, and are often funded by specific sources that have benefited from the expenditure, such as special assessment improvement projects. • Debt Service — Although the expenditures for debt service may be relatively consistent over the term of the respective debt, the funding source is the important factor. Some debt may be repaid through specific sources, such as special assessments or redevelopment funding, while other debt may be repaid with general property taxes. The City's expenditures per capita of its governmental funds for the past three years, together with comparative state-wide averages, are presented in the following table: Total expenditures in the City's governmental funds for 2020 were $21,134,218, a decrease of $1,675,627 (7.3 percent), or $134 per capita, from the prior year. There was a decrease in street maintenance and lighting of $37 per capita, due to less projects being completed in the current year, due to the impact of the COVID-19 pandemic. All other expenditures had an increase of $30 per capita, due to an increase in land purchases by the Economic Development Authority. The City's per capita expenditures for capital outlay and construction decreased significantly from the prior year and will vary on a yearly basis, depending on current and ongoing capital projects. 10 Governmental Funds Expenditures per Capita With State -Wide Averages by Population Class State -Wide City of Monticello Year December 31, 2019 2018 2019 2020 Population 2,500-10,000 10,000-20,000 20,000-100,000 13,553 13,782 13,886 Current General government $ 152 $ 128 $ 107 $ 122 $ 129 $ 156 Public safety 300 282 306 174 177 197 Street maintenance and lighting 146 149 119 153 174 137 Recreation and culture 103 124 106 224 228 237 All other 74 75 97 136 108 138 775 758 735 809 816 865 Capital outlay and construction 438 376 355 716 576 354 Debt service Principal 168 182 88 169 207 244 Interest and fiscal charges 43 41 28 45 56 58 211 223 116 214 263 302 Total expenditures $ 1,424 $ 1,357 $ 1,206 $ 1,739 $ 1,655 $ 1,521 Total expenditures in the City's governmental funds for 2020 were $21,134,218, a decrease of $1,675,627 (7.3 percent), or $134 per capita, from the prior year. There was a decrease in street maintenance and lighting of $37 per capita, due to less projects being completed in the current year, due to the impact of the COVID-19 pandemic. All other expenditures had an increase of $30 per capita, due to an increase in land purchases by the Economic Development Authority. The City's per capita expenditures for capital outlay and construction decreased significantly from the prior year and will vary on a yearly basis, depending on current and ongoing capital projects. 10 GENERAL FUND The City's General Fund accounts for the financial activity of the basic services provided to the community. The primary services included within this fund are the administration of the municipal operation, police and fire protection, building inspection, streets and highway maintenance, and parks and recreation. The graph below illustrates the change in the General Fund financial position over the last five years. We have also included a line representing annual expenditures to reflect the change in the size of the General Fund operation over the same period. General Fund Financial Position Year Ended December 31, $10,000,000 $9,000,000 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $— 2016 2017 2018 2019 2020 Fund Balance $6,276,720 $7,029,093 $7,109,478 $6,677,250 $6,640,235 O Cash Balance $7,091,381 $8,130,998 $7,513,518 $7,189,488 $7,233,133 Expenditures $6,992,812 $7,442,697 $7,924,408 $8,269,524 $8,827,074 The total fund balance of the City's General Fund decreased $37,015 in 2020, as compared to no change in fund balance projected in the final budget. The decrease in the General Fund balance is mainly due to transfers out during the year totaling $1,000,000 for capital projects and equipment -related funding. As the graph illustrates, the City has generally been able to maintain healthy cash and fund balance levels as the volume of financial activity has grown. This is an important factor because a government, like any organization, requires a certain amount of equity to operate. A healthy financial position allows the City to avoid volatility in tax rates; helps minimize the impact of state funding changes; allows for the adequate and consistent funding of services, repairs, and unexpected costs; and is a factor in determining the City's bond rating and resulting interest costs. Maintaining an adequate fund balance has become increasingly important given the fluctuations in state funding for cities in recent years. A trend that is typical to Minnesota local governments, especially the General Fund of cities, is the unusual cash flow experienced throughout the year. The City's General Fund cash disbursements are made fairly evenly during the year, other than the impact of seasonal services, such as snowplowing, street maintenance, and park activities. Cash receipts of the General Fund are quite a different story. Property taxes comprise about 69 percent of the fund's total annual revenue. Approximately half of these revenues are received by the City in June and the rest in December. Consequently, the City needs to have adequate cash reserves to finance its everyday operations between these payments. The City's unassigned General Fund balance at the end of the 2020 fiscal year represents approximately 73.6 percent of the City's annual General Fund expenditures, based on 2020 expenditure levels. The City's adopted fund balance policy requires that the City set aside fund balance to represent 60-75 percent of the subsequent years budgeted expenditures for working capital and contingencies. I[12 The following graph reflects the City's General Fund revenue sources for 2020 compared to budget: Property Taxes Licenses and Permits Intergovernmental Charges for Services General Fund Revenue Budget and Actual & & & ," & & & S I I .� .� �' �' Q Q S S 6 6 Op 00 SO 00 SO 00 r0 00 r0 00 r0 00 r0 00 O 00 00 00 00 00 00 00 00 00 00 00 00 00 ■ Budget ■ Actual Total General Fund revenues for 2020 were $9,790,059, which was $887,059 (10.0 percent) over the final budget. As reflected in the graph above, intergovernmental exceeded the budgeted amount by $340,450, related to the CRF revenues received in the current year that were not included in the budget. Other revenue exceeded budgeted amounts by $368,869, mainly from revenues from the new solar production program that were not included in the budget. The following graph presents the City's General Fund revenues by source for the last five years. The graph reflects the City's reliance on property taxes and other local sources of revenue. $7,00 $6,50 $6,00 $5,50 $5,00 $4,50 $4,00 $3,50 $3,00 $2,50 $2,00 $1,50 $1,00 $5 General Fund Revenue by Source Year Ended December 31, 00 Other O,OOG 0,000 0,000 0,000 0,000 0,000 0,000 0,000 0,000 0,000 0,000 0,000 0,000 ,000 An* Property Taxes Intergovernmental Other ■2016 $6,204,429 $389,005 $1,678,122 ■2017 $6,384,444 $429,697 $1,679,204 02018 $6,634,769 $428,443 $1,626,581 02019 $6,689,647 $431,004 $2,112,345 IN20201 $6,797,640 $737,650 $2,254,769 The graph reflects the City's reliance on taxes to finance its General Fund operations. Overall, General Fund revenues increased $557,063 (6.0 percent) from the previous year. The increase was mostly in intergovernmental revenues, due to the receipt of the CRF as mentioned above. -11- The graph reflects the City's reliance on taxes to finance its General Fund operations. Overall, General Fund revenues increased $557,063 (6.0 percent) from the previous year. The increase was mostly in intergovernmental revenues, due to the receipt of the CRF as mentioned above. -11- The following graph illustrates the components of General Fund spending for 2020 compared to budget: General Government Public Safety Public Works Recreation and Culture Other General Fund Expenditures Budget and Actual T� 5r T6. T& Tj TI Tj I 8I T� 8? T2 8? T� 000 000 000, 000 000 -,? V 00 . -600 -&00 -orb -2°0 'AU ,6� -CP 00 00 00 00 00 ,000 -000 ,000 -000 -000 -000 -000 -0%%% DSO '000 ,000 ■ Budget ■ Actual Total General Fund expenditures for 2020 were $8,827,074, which was $75,926 (0.9 percent) under budget. The public works area was under budget by $408,188, mainly due to streets and alley projects being delayed, due to the COVID-19 pandemic. General government expenditures were over budget by $280,342, mainly from costs related to the new solar production program not included in the budget. Public safety expenditures were over budget by $107,946, mainly related to CRF -related spending, which was not included in the budget. The following graph presents the City's General Fund expenditures by function for the last five years: $3,000,000 $2,75 $2,50 $2,25 $2,00 $1,75 $1,50 $1,25 $1,00 $75 $500 $25 General Fund Expenditures by Function Year Ended December 31, 0,000 0,000 0,000 0,000 0,000 0,000 0,000 0,000 0,000 ,000 0,000 $— General Governmental Public Safety Public Works Recreation and Culture Other 02016 $1,489,892 $2,036,777 $1,802,884 $1,021,709 $641,550 ■2017 $1,617,680 $2,178,728 $1,904,391 $1,124,379 $617,519 02018 $1,656,557 $2,354,453 $2,079,091 $1,200,388 $633,919 02019 $1,777,352 $2,449,765 $2,222,034 $1,209,429 $610,944 02020 $2,170,661 $2,743,954 $1,899,315 $1,331,196 $681,948 Overall, General Fund expenditures increased $557,550 (6.7 percent) from the prior year. The increase in General Fund expenditures in 2020 was mostly changed in general governmental, due to an increase in the solar production program and public safety related to the CRF -related spending. -12- ENTERPRISE FUNDS OVERVIEW The City maintains several enterprise funds to account for services the City provides that are financed primarily through fees charged to those utilizing the service. This section of the report provides you with an overview of the financial trends and activities of the City's enterprise funds, which include the Water Utility, Sewage Utility, Stormwater, Liquor Operations, Fiber Optics, and Deputy Registrar Funds. ENTERPRISE FUNDS FINANCIAL POSITION The following table summarizes the changes in the financial position of the City's enterprise funds during the year ended December 31, 2020, presented both by classification and by fund: Enterprise Funds Change in Financial Position Net position of enterprise funds Total by classification Net investment in capital assets Unrestricted Total enterprise funds Total by fund Water Sewage Stormwater Liquor Fiber Optics Deputy Registrar Total enterprise funds Net Position as of December 31, 2019 2020 Change $ 42,808,003 $ 41,000,179 $ (1,807,824) 14,737,604 17,560,382 2,822,778 $ 57,545,607 $ 58,560,561 $ 1,014,954 $ 13,940,622 $ 13,781,749 $ (158,873) 22,459,035 23,070,466 611,431 6,518,374 6,435,141 (83,233) 522,808 947,741 424,933 12,464,870 12,349,665 (115,205) 1,639,898 1,975,799 335,901 $ 57,545,607 $ 58,560,561 $ 1,014,954 In total, the net position of the City's enterprise funds increased by $1,014,954 during the year ended December 31, 2020. The decrease in the net investment in capital assets relates to depreciation expense being more than the payments on the related debt. The increase in unrestricted net position is a result of positive operations in these funds. -13- WATER ENTERPRISE FUND The following graph presents five years of comparative operating results for the City's Water Enterprise Fund: Water Enterprise Fund Year Ended December 31, $1,600,000 $1,500,000 $1,400,000 $1,300,000 $1,200,000 $1,100,000 $1,000,000 $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 2016 ■ 2017 2018 2019 2020 � Oper Rev $1,172,258 $1,415,441 $1,432,194 $1,300,191 $1,541,694 O OperExp $1,172,236 $1,160,339 $1,238,586 $1,220,145 $1,207,678 OperInc Before Dep $502,469 $778,909 $712,808 $603,219 $847,500 The Water Enterprise Fund ended 2020 with a total net position of $13,781,749, a decrease of $158,873 from the prior year. Of this, $8,561,657 represents the net investment in capital assets, leaving unrestricted net position of $5,220,092. Operating revenue in the Water Enterprise Fund is $1,541,694, an increase of $241,503, or 18.6 percent, from the prior year, due mostly to higher consumption. Operating expenses for 2020 were $1,207,678, a decrease of $12,467, or 1.0 percent. It is important that this fund continue to have positive operating results so as not to place an additional burden on other city funds. It is also important that the City continue to monitor water rates so that they are designed to also provide for future repairs and replacement of the infrastructure assets. -14- SEWAGE ENTERPRISE FUND The following graph presents five years of comparative operating results for the City's Sewage Enterprise Fund: The Sewage Enterprise Fund ended 2020 with a total net position of $23,070,466, an increase of $611,431 from the prior year. Net position consisted of $15,646,791 in net investment in capital assets and $7,423,675 of unrestricted net position. Operating revenue in the Sewage Enterprise Fund increased $115,498 (4.7 percent), due to an increase in rates and an increase in usage. Operating expenses for 2020 increased $64,134 (2.3 percent) from 2019, spread across multiple categories. It is important that this fund continue to have positive operating results so as not to place an additional burden on other city funds. It is also important that the City continue to monitor sewage rates so they are designed to also provide for future repairs and replacement of infrastructure assets. -15- Sewage Enterprise Fund Year Ended December 31, $3,000,000 $2,750,000 $2,500,000 $2,250,000 $2,000,000 $1,750,000 $1,500,000 $1,250,000 $1,000,000 $750,000 $500,000 $250,000 $— 2016 2017 2018 2019 2020 � Oper Rev $2,223,252 $2,472,774 $2,581,833 $2,443,856 $2,559,354 o OperExp $2,554,310 $2,644,096 $2,857,968 $2,819,825 $2,883,959 OperInc Before Dep $811,421 $920,157 $907,405 $847,142 $896,120 The Sewage Enterprise Fund ended 2020 with a total net position of $23,070,466, an increase of $611,431 from the prior year. Net position consisted of $15,646,791 in net investment in capital assets and $7,423,675 of unrestricted net position. Operating revenue in the Sewage Enterprise Fund increased $115,498 (4.7 percent), due to an increase in rates and an increase in usage. Operating expenses for 2020 increased $64,134 (2.3 percent) from 2019, spread across multiple categories. It is important that this fund continue to have positive operating results so as not to place an additional burden on other city funds. It is also important that the City continue to monitor sewage rates so they are designed to also provide for future repairs and replacement of infrastructure assets. -15- STORMWATER ENTERPRISE FUND Stormwater Enterprise Fund Year Ended December 31, .p I VV,VVV $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 2019 2020 Oper Rev $61,757 $241,873 O OperExp $— $658,771 OperInc Before Dep $61,757 $103,597 At December 31, 2020, the Stormwater Fund has a net position of $6,435,141. Net position consisted of $4,955,496 in net investment in capital assets and $1,479,645 of unrestricted net position. Stormwater Enterprise Fund operating revenues for 2020 were $241,873, while operating expenses for 2020 were $658,771. Wei LIQUOR ENTERPRISE FUND The following graph presents five years of comparative operating results for the Liquor Enterprise Fund: Liquor Enterprise Fund Year Ended December 31, 0 /,-'-V $7,200,000 $6,600,000 $6,000,000 $5,400,000 $4,800,000 $4,200,000 $3,600,000 $3,000,000 $2,400,000 $1,800,000 $1,200,000 $600,000 2016 2017 2018 2019 2020 Sales $5,448,584 $5,751,197 $6,086,293 $6,374,153 $7,404,955 o Cost of Sales $4,041,224 $4,230,016 $4,546,747 $4,717,441 $5,502,228 Oper Exp $836,048 $880,415 $854,218 $866,171 $885,605 �OperInc $573,358 $644,735 $690,016 $793,845 $1,018,127 The Liquor Enterprise Fund ended 2020 with a net position balance of $947,741, an increase of $424,933 from the prior year. Of the net position balance, $113,658 represents the investment in liquor capital assets, leaving $834,083 of unrestricted net position. Liquor sales for 2020 were $7,404,955, an increase of $1,030,802 from last year. The Liquor Enterprise Fund generated a gross profit of $1,902,727 in 2020, or about 25.7 percent of gross sales, a slight decrease from 26.0 percent in 2019. Operating expenses for 2020 were $885,605, an increase of $19,434 from last year. The Liquor Enterprise Fund made a transfer of $660,000 to governmental funds in 2020. The transfer out was made to finance the Briarwood turn lane at the Bertram Chain of Lakes Regional Park in the Parks and Pathways Fund, and the roof replacement project and operating shortfalls in the Community Center Fund. -17- FIBER OPTICS ENTERPRISE FUND The following graph presents five years of comparative operating results for the Fiber Optics Enterprise Fund: Fiber Optics Enterprise Fund Year Ended December 31, a1,V W,V V V $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $— $(500,000) 2016 2017 2018 2019 2020 � Oper Rev $1,739,566 $1,757,134 $1,736,243 $1,795,435 $1,851,845 o Oper Exp $2,490,920 $2,252,287 $2,276,565 $1,990,525 $2,063,114 — Oper Inc (Loss) Before Dep $(331,799) $(82,234) $(141,524) $190,086 $163,355 The Fiber Optics Enterprise Fund ended 2020 with a total net position balance of $12,349,665, a decrease of $115,205 from the prior year. Of this, $11,655,249 represents the net investment in capital assets, leaving unrestricted net position of $694,416. Operating revenue in this fund was $1,851,845, an increase of $56,410, or 3.1 percent, in 2020. Operating expenses for 2020 were $2,063,114, an increase of $72,589, or 3.6 percent, from last year. The increase is due to an increase in installation service fees. IMM DEPUTY REGISTRAR ENTERPRISE FUND The following graph presents five years of comparative operating results for the City's Deputy Registrar Enterprise Fund: Deputy Registrar Enteprise Fund Year Ended December 31, The Deputy Registrar Enterprise Fund ended 2020 with a total net position balance of $1,975,799, an increase of $335,901. Of this, $67,328 represents net investment in capital assets, leaving unrestricted net position of $1,908,471. Deputy Registrar Enterprise Fund operating revenues for 2020 were $801,502, which is $152,353 less than the previous year, due to a decrease in charges for services and other revenue. The City received additional funding from the state in the prior year, related to costs for the state of Minnesota for the software -related transition. 110 $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 2016 2017 2018 2019 2020 � Oper Rev $562,891 $594,777 $694,263 $953,855 $801,502 O Oper Exp $352,117 $398,054 $429,683 $466,499 $528,732 Oper Inc (Loss) Before Dep $213,959 $201,132 $268,985 $495,245 $280,948 The Deputy Registrar Enterprise Fund ended 2020 with a total net position balance of $1,975,799, an increase of $335,901. Of this, $67,328 represents net investment in capital assets, leaving unrestricted net position of $1,908,471. Deputy Registrar Enterprise Fund operating revenues for 2020 were $801,502, which is $152,353 less than the previous year, due to a decrease in charges for services and other revenue. The City received additional funding from the state in the prior year, related to costs for the state of Minnesota for the software -related transition. 110 THIS PAGE INTENTIONALLY LEFT BLANK GOVERNMENT -WIDE FINANCIAL STATEMENTS In addition to fund -based information, the current reporting model for governmental entities also requires the inclusion of two government -wide financial statements designed to present a clear picture of the City as a single, unified entity. These government -wide financial statements provide information on the total cost of delivering services, including capital assets and long-term liabilities. STATEMENT OF NET POSITION The Statement of Net Position essentially tells you what the City owns and owes at a given point in time, the last day of the fiscal year. Theoretically, net position represents the resources the City has leftover to use for providing services after its debts are settled. However, those resources are not always in spendable form, or there may be restrictions on how some of those resources can be used. Therefore, net position is divided into three components: net investment in capital assets, restricted, and unrestricted. The following table presents the components of the City's net position as of December 31, 2020 and 2019, for governmental activities and business -type activities: Business -type activities Net investment in capital assets December 31, 42,808,003 (1,807,824) Unrestricted 2020 2019 Change Total business -type activities 58,649,467 Net position 985,824 Total net position $ 137,599,467 Governmental activities $ 4,103,543 Net investment in capital assets $ 40,836,892 $ 40,008,410 $ 828,482 Restricted 5,397,034 8,690,172 (3,293,138) Unrestricted 32,716,074 27,133,699 5,582,375 Total governmental activities 78,950,000 75,832,281 3,117,719 Business -type activities Net investment in capital assets 41,000,179 42,808,003 (1,807,824) Unrestricted 17,649,288 14,855,640 2,793,648 Total business -type activities 58,649,467 57,663,643 985,824 Total net position $ 137,599,467 $ 133,495,924 $ 4,103,543 The City's total net position at December 31, 2020 was $4,103,543 more than the prior year. Of the increase, $3,117,719 came from governmental activities and $985,824 came from business -type activities. The overall decrease in net investment in capital assets was due to capital asset disposals and depreciation exceeding capital asset acquisitions, less the amount of debt borrowed to acquire assets. At the end of the current fiscal year, the City is able to present 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. The same situation held true for the prior year. II! STATEMENT OF ACTIVITIES The Statement of Activities tracks the City's yearly revenues and expenses, as well as any other transactions that increase or reduce total net position. These amounts represent the full cost of providing services. The Statement of Activities provides a more comprehensive measure than just the amount of cash that changed hands, as reflected in the fund -based financial statements. This statement includes the cost of supplies used, depreciation of long-lived capital assets, and other accrual -based expenses. The following table presents the change in the net position of the City for the years ended December 31, 2020 and 2019: Net (expense) revenue Governmental activities General government Public safety Public works Sanitation Recreation and culture Economic development Interest and fiscal charges Business -type activities Water Sewage Stormwater Liquor Fiber Optics Deputy Registrar Total net (expense) revenue 2020 2019 Program Expenses Revenues Net Change Net Change 2,335,614 $ 543,204 $ (1,792,410) $ (1,655,175) 2,658,246 1,019,473 (1,638,773) (1,271,953) 4,777,282 1,649,507 (3,127,775) (4,208,965) 681,948 543,032 (138,916) (209,871) 3,289,716 652,729 (2,636,987) (2,034,485) 1,914,825 10,915 (1,903,910) (858,835) 756,546 — (756,546) (752,595) 1,212,656 1,851,849 639,193 510,581 2,960,153 3,435,014 474,861 773,705 658,771 544,397 (114,374) 61,757 6,395,558 7,405,960 1,010,402 799,976 2,063,712 1,851,845 (211,867) (194,617) 538,625 801,502 262,877 495,160 $ 30,243,652 $ 20,309,427 (9,934,225) (8,545,317) General revenues Property taxes and tax increments 11,582,137 11,055,639 Franchise taxes 418,030 432,934 Unrestricted grants and contributions 1,038,338 — Investment earnings 999,263 1,451,336 Total general revenues 14,037,768 12,939,909 Change in net position $ 4,103,543 $ 4,394,592 One of the goals of this statement is to provide a side-by-side comparison to illustrate the difference in the way the City's governmental and business -type operations are financed. The table clearly illustrates the dependence of the City's governmental operations on general revenues, such as property taxes and unrestricted grants. It also shows that the City's business -type activities are, for the most part, generating sufficient program revenues (service charges and program -specific grants) to cover expenses. This is critical given the current downward pressures on the general revenue sources. -21- LEGISLATIVE UPDATES The 2020 legislative session, coming in the second half of the state's fiscal biennium, was expected to be a typical short session focused primarily on making relatively minor modifications to the biennial budget. Given a projected budget surplus of $1.5 billion going into the session, consideration of a substantial capital investment and bonding bill was also a potential focus. The start of the legislative session in February was followed by a series of significant events that changed the course of the session, including a world-wide health pandemic, the death of George Floyd while in police custody and the ensuing protests and unrest, and a hotly contested national election. On March 13, 2020, the Governor issued an executive order declaring a peacetime emergency, giving his administration the ability to quickly impose restrictions and measures aimed at mitigating the COVID-19 outbreak. By early May, the state's budget outlook had changed from a robust surplus to a projected deficit of $2.4 billion. The legislative session ultimately encompassed an unprecedented seven special sessions, more than double the previous state record of three, with the final special session in mid-December. In the end, a $1.87 billion omnibus bonding bill was passed that included $1.36 billion in general obligation state bonding for capital improvements, $31.0 million in supplemental General Fund budget spending, and provisions for tax relief and economic assistance. The session also yielded a new Police Accountability Act, and a $217.0 million economic relief package to help businesses negatively impacted by the pandemic. The following is a brief summary of legislative changes from the 2020 session or previous legislative sessions potentially impacting Minnesota cities. Coronavirus Aid, Relief, and Economic Security (CARES) Act — The CARES Act provided federal economic relief to protect the American people from the public health and economic impacts of COVID-19. Minnesota received approximately $2.2 billion in funding under the CARES Act. When the first legislative special session ended without an agreement on the distribution of approximately $841.5 million of federal Coronavirus Relief Fund (CRF) funding earmarked for Minnesota local governments, the Governor distributed the funds by executive order based on the framework of the legislative agreement debated during the first special session. This resulted in $350.4 million being distributed directly to Minnesota cities with populations equal to or greater than 200. The funds were authorized for use for unbudgeted costs related to the COVID-19 pandemic, but not to replace lost revenues. In accordance with CARES Act provisions, the CRF funding was available to cover costs that; 1) were necessary expenditures incurred due to the public health emergency related to COVID-19; 2) were not accounted for in the entity's budget most recently approved as of March 27, 2020; and 3) were incurred during the period from March 1, 2020 through December 31, 2020 (the availability period end date was revised by the state to November 15, 2020 for Minnesota cities). Emergency Small Business Assistance Program — The Legislature created a program to appropriate $60.0 million of federal CRF funding to make grants available through the Minnesota Department of Employment and Economic Development for eligible small businesses impacted by COVID-19. Small businesses employing up to 50 full-time employees are eligible to receive grants of up to $10,000. The allocation is split between the metro area and greater Minnesota, with specific allocations for businesses owned by minorities, veterans, and women. $18.0 million of the allocation is earmarked for businesses with 6 or less employees. Workers' Compensation Claims — COVID-19 Presumption — The Legislature adopted several new provisions to state unemployment statutes related to COVID-19, including a presumption that an employee who contracts COVID-19 has an "occupational disease" arising out of, and in the course of, employment if the employee works in one of the specified occupations and has a confirmed case of COVID-19. Covered occupations include nurses, healthcare workers, and workers required to provide childcare for first responders and healthcare workers under Executive Orders 20-02 and 20-19. The COVID-19 presumption provision sunsets on May 1, 2021. -22- Bonding Bill — The 2020 bonding bill provided financing for approximately $1.36 billion of projects. Some of the more significant appropriations for local infrastructure included: $105 million in undesignated grants for local road improvement and bridge replacement; $100 million for water infrastructure and point source implementation grants; $25 million for state match of federal grants for public facilities improvements, $20 million for natural resource asset preservation, $17 million for flood control mitigation, $15 million for the Local Government Roads Wetlands Replacement Program; $5 million for Metropolitan Council inflow and infiltration grants; and $5 million for metropolitan regional parks and trails. The bill also included funding for a number of state initiatives, including: $300 million in trunk highway bonds for the improvement of the state trunk highway system; $145 million in appropriation bonds to fund the infrastructure and capital needs of the Minnesota Housing Finance Agency, Minnesota Pollution Control Agency, and Minnesota Public Television; $30 million for state agency projects aimed at promoting racial equity, $29.5 million for the state Emergency Operations Center; and $16 million for the Minnesota Housing Finance Agency. The bill provides authority for eligible local governments to own and operate childcare facilities, and permits local governments to enter into management agreements with licensed childcare providers to operate in publicly -owned facilities. It also makes cities, counties, school districts, and joint powers boards located outside of the seven -county metro area eligible to apply for grants through the Greater Minnesota Childcare Facility Capital Grant Program. The bill also included a provision extending the equal pay certificate of compliance requirement to contracts by any public entity, including political subdivisions, using state general obligation bond proceeds for all or part of a capital project. Local governments will be responsible for requiring that bids include proper certification on applicable projects, which applies to projects for goods or services valued at more than $1 million utilizing appropriated bond proceeds on or after January 1, 2022. Elections — A number of measures were passed to help ensure the safe and secure conduct of the 2020 state primary and general elections, including; allowing for the processing of absentee ballots to begin 14 days prior to the date of the election, extending the period during which absentee ballots could be processed for 2 days following the election, accepting electronic filings for affidavits of candidacy or nominating petitions, and specifying that municipalities were to use schools as polling places only when no other public or private location was reasonably available. Funds from the federal Help America Vote Act were made available for modernizing, securing, and improving election facilities, a portion of which was made available for grants to local governments to fund activities prescribed by this program. Minors Operating Lawn Care Equipment — Effective May 28, 2020, Minnesota Statutes lowered the employment age for operating lawn care equipment to age 16. Minors aged 16 and 17 must be trained in the safe operation of the equipment and wear appropriate personal protective equipment when operating the lawn care equipment. The exception under this statute applies only to minors directly employed by golf courses, resorts, rental property owners, or municipalities to perform lawn care on golf courses, resort grounds, rental property, or municipal grounds. Open Meeting Law Exception — The interactive television provision of the Minnesota Open Meeting Law was amended to allow for participation in meetings by interactive electronic means, such as Skype or Zoom, without requiring that an elected official be advised to do so by a healthcare professional for personal or family medical reasons. This allowance is available only when a national security or peacetime emergency has been declared and may be used up to 60 days after the emergency declaration has been lifted. Whenever public meetings are held via interactive electronic means of this type, votes must be conducted by roll call and be recorded in the minutes. Expanded Authority for Electronic Signatures During COVID-19 — Effective May 17, 2020, cities are allowed to accept certain documents, signatures, or filings electronically, by mail, or facsimile during the COVID-19 pandemic, including; planning and zoning applications and permits; land use documents; documents requiring the signature of licensed architects, engineers, land surveyors, geoscientists, or interior designers; applications for birth or death certificates; or recording notary commissions. This accommodation expires January 16, 2021, or 60 days following the termination of the peacetime public health emergency. -23- Solid Waste Recycling Exemption — The requirement that not more than 15 percent of mixed municipal solid waste received by recycling or composting facilities be disposed of, rather than recycled or composted, is suspended as long as the need for the exception is triggered by operational changes implemented to address the COVID-19 pandemic. Pension Changes — Effective January 1, 2021, the maximum lump -sum pension amount for volunteer firefighters is increased from $10,000 to $15,000 per year of service. Municipalities are permitted to split state fire aid received between its career firefighters and its affiliated volunteer firefighters, but only if the amount allocated to the career firefighters is approved by the membership of the volunteer firefighter relief association. Any aid allocated to career firefighters must be used to pay the Public Employees Retirement Association (PERA) employer contributions on their behalf within 18 months of the transfer or be returned to the relief association. Police Accountability Act — The Legislature passed the Police Accountability Act, which enacted a number of changes to laws governing police conduct, training, and oversight. Among the more significant changes adopted were: • Defined and authorized "public safety peer counseling" and "critical incident stress management," and classifies information shared in these settings as private data. • Established an Independent Use of Force Investigations Unit within the Bureau of Criminal Apprehension to investigate all officer -involved deaths in the state, as well as criminal sexual assault allegations against peace officers, effective August 1, 2020. • Authorized statutory or home rule charter cities to offer incentives to encourage a person hired as a peace officer to be a resident of the city. • Limited the use of certain restraint methods by peace officer unless the use of deadly force is authorized in a given situation. • Established and modified provisions related to law enforcement use of deadly force. • Defined and prohibited "warrior -style" training for peace officers. • Established a 15 -member "Ensuring Police Excellence and Improving Community Relations Advisory Council" under the Police Officer Standards and Training (POST) Board, to assist the POST Board in maintaining policies and regulating peace officers in a manner that ensures the protection of civil and human rights. • Established a duty for peace officers to intercede when another officer is using excessive force and report incidents of excessive force to supervisors. -24- THIS PAGE INTENTIONALLY LEFT BLANK ACCOUNTING AND AUDITING UPDATES The following is a summary of Governmental Accounting Standards Board (GASB) standards expected to be implemented in the next few years. Due to the COVID-19 pandemic, the GASB has delayed the original implementation dates of these and other standards as described below. GASB Statement No. 87, Leases A lease is a contract that transfers control of the right to use another entity's nonfinancial asset as specified in the contract for a period of time in an exchange or exchange -like transaction. Examples of nonfinancial assets include buildings, land, vehicles, and equipment. Any contract that meets this definition should be accounted for under the leases guidance, unless specifically excluded in this statement. Governments enter into leases for many types of assets. Under the previous guidance, leases were classified as either capital or operating depending on whether the lease met any of the four tests. In many cases, the previous guidance resulted in reporting lease transactions differently than similar nonlease financing transactions. The goal of this statement is to better meet the information needs of users by improving accounting and financial reporting for leases by governments. It establishes a single model for lease accounting based on the principle that leases are financings of the right to use an underlying asset. This statement increases the usefulness of financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. Under this statement, a lessee is required to recognize a lease liability and an intangible right to use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of information about governments' leasing activities. To reduce the cost of implementation, this statement includes an exception for short-term leases, defined as a lease that, at the commencement of the lease term, has a maximum possible term under the lease contract of 12 months (or less), including any options to extend, regardless of their probability of being exercised. Lessees and lessors should recognize short-term lease payments as outflows of resources or inflows of resources, respectively, based on the payment provisions of the lease contract. The requirements of this statement are effective for reporting periods beginning after June 15, 2021. -25- GASB Statement No. 91, Conduit Debt Obligations The primary objectives of this statement are to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. This statement achieves those objectives by clarifying the existing definition of a conduit debt obligation; establishing that a conduit debt obligation is not a liability of the issuer; establishing standards for accounting and financial reporting of additional commitments and voluntary commitments extended by issuers and arrangements associated with conduit debt obligations; and improving required note disclosures. A conduit debt obligation is defined as a debt instrument having all of the following characteristics: • There are at least three parties involved: (1) an issuer, (2) a third party obligor, and (3) a debt holder or a debt trustee. • The issuer and the third party obligor are not within the same financial reporting entity. • The debt obligation is not a parity bond of the issuer, nor is it cross -collateralized with other debt of the issuer. • The third party obligor or its agent, not the issuer, ultimately receives the proceeds from the debt issuance. • The third party obligor, not the issuer, is primarily obligated for the payment of all amounts associated with the debt obligation (debt service payments). This statement also addresses arrangements, often characterized as leases, that are associated with conduit debt obligations. In those arrangements, capital assets are constructed or acquired with the proceeds of a conduit debt obligation and used by third party obligors in the course of their activities. This statement requires issuers to disclose general information about their conduit debt obligations, organized by type of commitment, including the aggregate outstanding principal amount of the issuers' conduit debt obligations and a description of each type of commitment. Issuers that recognize liabilities related to supporting the debt service of conduit debt obligations also should disclose information about the amount recognized and how the liabilities changed during the reporting period. The requirements of this statement are effective for reporting periods beginning after December 15, 2021. Earlier application is encouraged. ei GASB Statement No. 92, Omnibus 2020 The objectives of this statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing practice issues that have been identified during implementation and application of certain GASB Statements. This statement addresses a variety of topics and includes specific provisions about the following: • The effective date of Statement No. 87, Leases, and Implementation Guide No. 2019-3, Leases, for interim financial reports • Reporting of intra -entity transfers of assets between a primary government employer and a component unit defined benefit pension plan or defined benefit other post -employment benefit (OPEB) plan • The applicability of Statements No. 73, Accounting and Financial Reporting for Pensions and Related Assets That Are Not within the Scope of GASB Statement 68, and Amendments to Certain Provisions of GASB Statements 67 and 68, as amended, and No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans, as amended, to reporting assets accumulated for post -employment benefits • The applicability of certain requirements of Statement No. 84, Fiduciary Activities, to post -employment benefit arrangements • Measurement of liabilities (and assets, if any) related to asset retirement obligations in a government acquisition • Reporting by public entity risk pools for amounts that are recoverable from reinsurers or excess insurers • Reference to nonrecurring fair value measurements of assets or liabilities in authoritative literature • Terminology used to refer to derivative instruments The requirements of this statement are effective for fiscal years beginning after June 15, 2021. Earlier application is encouraged. 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. An SBITA is defined as a contract that conveys control of the right to use another party's (an SBITA vendor's) information technology (IT) software, alone or in combination with tangible capital assets (the underlying IT assets), as specified in the contract for a period of time in an exchange or exchange -like transaction. Under this statement, a government generally should recognize a right -to -use subscription asset—an intangible asset—and a corresponding subscription liability. This statement provides an exception for short-term SBITAs with a maximum possible term under the SBITA contract of 12 months, including any options to extend, regardless of their probability of being exercised. Subscription payments for short-term SBITAs should be recognized as outflows of resources. This statement requires a government to disclose descriptive information about its SBITAs other than short-term SBITAs, such as the amount of the subscription asset, accumulated amortization, other payments not included in the measurement of a subscription liability, principal and interest requirements for the subscription liability, and other essential information. The requirements of this statement are effective for fiscal years beginning after June 15, 2022, and all reporting periods thereafter. -27- GASB Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans—an Amendment of GASB Statement No. 14 and No. 84, and a Supersession of GASB Statement No. 32 The primary objectives of this statement are to (1) increase consistency and comparability related to the reporting of fiduciary component units in circumstances in which a potential component unit does not have a governing board and the primary government performs the duties that a governing board typically would perform; (2) mitigate costs associated with the reporting of certain defined contribution pension plans, defined contribution OPEB plans, and employee benefit plans other than pension plans or OPEB plans (other employee benefit plans) as fiduciary component units in fiduciary fund financial statements; and (3) enhance the relevance, consistency, and comparability of the accounting and financial reporting for Internal Revenue Code Section 457 deferred compensation plans (Section 457 plans) that meet the definition of a pension plan and for benefits provided through those plans. The requirements of this statement that (1) exempt primary governments that perform the duties that a government board typically performs from treating the absence of a governing board the same as the appointment of a voting majority of a governing board in determining whether they are financially accountable for defined contribution pension plans, defined contribution OPEB plans, or other employee benefit plans, and (2) limit the applicability of the financial burden criterion in paragraph 7 of Statement 84 to defined benefit pension plans and defined benefit OPEB plans that are administered through trusts that meet the criteria in paragraph 3 of Statement 67 or paragraph 3 of Statement 74, respectively, are effective immediately. The requirements of this statement that are related to the accounting and financial reporting for Section 457 plans are effective for fiscal years beginning after June 15, 2021. For purposes of determining whether a primary government is financially accountable for a potential component unit, the requirements of this statement that provide that for all other arrangements, the absence of a governing board be treated the same as the appointment of a voting majority of a governing board if the primary government performs the duties that a governing board typically would perform, are effective for reporting periods beginning after June 15, 2021. Earlier application of those requirements is encouraged and permitted by requirement as specified within this statement. ►.:M CITY OF � Monticello Council Connection May 24, 2021 S� CITY OF Monticello COMMUNITY CENTER Operations All areas of the facility are currently open. Poolside birthday parties were added in May and we have had several bookings for the month. As of April 30: Visits totaled 5,885 Current active members: 2,959 Current freeze members: 433 Membership numbers will change for May because the free freeze option was eliminated. Members on a freeze status either had to reactivate and pay for their membership again or pay 25% of their membership to keep it in a freeze status. Beginning May 28, state COVID restrictions end, reservations will no longer be required to control capacity. The surplus sale on May 13 was a success with over $2,000 in sales. Programs The Farmers' Market will open May 27 and operate on Thursdays in the library parking lot, 3:30-7:00 p.m. Music on the Mississippi begins June 23 and will be on Wednesday evenings in West Bridge Park, 6:00-8:00 p.m. Sponsors include Liberty Bank, Monticello Lions, Galindo Real Estate Group and All Elements. Movies in the Park at Pioneer Park are sponsored by TDS. Friday, June 18 — Onward Friday, July 16 —Sonic the Hedgehog Friday, August 13 — Karate Kid Council Connection - 05/24/2021 Pool Update Summer swimming lesson registration is now open. Swimming lessons at MCC feature small class sizes, longer classes (45 minutes) and less classes per session (4). This change makes more efficient use of our staff. We also feel the shorter sessions and smaller class sizes will be appealing to busy families. Swimming lessons will also be offered at Bertram Lake in July. Rentals We are seeing businesses calling back to get their meetings on the books, park rentals are very busy, Annandale lock in May 281h and birthday calls are coming in. People are excited to celebrate events missed last year. Seeing a lot of request for Memorial Services in the Mississippi Room or parks for loved ones that were lost last year and could not celebrate their life with friends/family. Maintenance Work has begun in the Prairie Center building for moving the FiberNet office upstairs. CITY OF Montfcdo DMV Summary through April 2021 In April 2021, the DMV generated $99,047 in revenue which is $67,907 more than April 2020. The DMV was operating solely through the dropbox in April of 2020, which creates longer processing time per transaction and fewer transactions processed. The DMV has had limited staff recently, which was a contributing factor when the lobby had to close from April 5 to 9. The DMV processed 8,386 transactions in April 2021 compared to 5,546 in April 2020. However, due to the State's transition to the MNDrive system in November 2020, transactions are counted differently and a comparison to the same month last year is not an entirely accurate reflection of the DMV's workload. The DMV continues to have high demand with lines forming out the door. We are looking forward to the elimination of distancing requirements on May 28th to allow more customers to wait in the lobby again. The relocation project continues to move forward with an architect currently drawing up detailed plans of the building and creating a listing of project tasks. Please see the following graphs for more detail on the DMV's operations. $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 DMV Revenue Comparison Apr 2011 Apr 2012 Apr 2013 Apr 2014 Apr 2015 Apr 2016 Apr 2017 Apr 2018 Apr 2019 Apr2020 Apr2021 DMV Transaction Comparison Apr 2011 Apr 2012 Apr 2013 Apr 2014 Apr 2015 Apr 2016 Apr 2017 Apr 2018 Apr 2019 Apr2020 Apr2021 DMV YTD Revenue Comparison $400,000 380 147 $350,000 $300,000 277,041 $250,058 $254,399 $250,000 227,512 $200,000 $198,753 $192,880 $174,992 $161,019 175,200 $150,000 $114,667 $100,000 $50,000 Apr 2011 Apr 2012 Apr 2013 Apr 2014 Apr 2015 Apr 2016 Apr 2017 Apr 2018 Apr 2019 Apr2020 Apr2021 S� CITY OF Monticello ECONOMIC DEVELOPMENT - COMMUNITY DEVELOPMENT DEPARTMENT April 23, 2021 to May 20, 2021 April 23, 2021— Mtg. with IEDC Restaurant Recruitment Subcommittee at Riverwood Bank April 26, 2021 - Attended Rotary Club Mtg. April 26, 2021— Attended EDAM Government Relations Committee Mtg via Zoom April 28, 2021— Mtg. with Development Prospect Representative May 3, 2021— Attended Rotary Club Mtg. May 4, 2021— Attended Chelsea Commons Workshop May 5, 2021 — Attended Monthly Managers Mtg. May 5, 2021— Attended Pre -Design Mtg. May 10, 2021 — Attended Rotary Club Mtg. May 10, 2021— Attended Duffy Development Multi -Family Concept Proposal Workshop May 11, 2021 — Attended Pre -Design Mtg. May 11, 2021— Phone Conference with Multi -Family Housing Developer re Concept Proposal May 13, 2021 — Attended Willows Landing Ribbon Cutting and Open House Event May 17, 2021— Northland Monthly - Project and Financing Review Mtg. May 17, 2021 — Attended Rotary Club Mtg. May 18, 2021— Mtg. with Multi -Family Housing Developer re Concept Proposal May 18, 2021 — Attended Monticello Chamber of Commerce Luncheon Mtg. — River City Extreme May 20, 2021— Participated in Monticello Chamber of Commerce Annual Fundraising Golf Tournament S� CITY OF Monticello HI -WAY LIQUORS Summary through April 2021 In April 2021, the liquor store had sales of $593,776, which is 6.0% lower than April of 2020. However, April sales were $104,703 or 21.4% higher than April of 2019, resulting in an average year over year growth of roughly 10.2%. Within the 6% decrease from April of 2020, beer and liquor sales decreased by 12.1% and 5.7%, respectively, while wine sales grew by 0.9% due to a very successful spring wine sale. Please see the following graphs for more detail. Hi -Way Liquors Sales Report 1/31/2021 Total Sales Month 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 CYM-LYM Y -T -D Jan $ 302,114.52 $ 328,004.13 $ 355,029.76 $ 380,425.45 $ 364,675.32 $ 355,750.18 $ 403,500.92 $ 413,169.20 $ 453,883.47 $ 513,509.06 13.1% 13.1% Feb 307,385.41 337,463.99 333,487.18 347,777.77 362,746.98 364,836.39 390,050.52 408,769.22 445,332.30 486,790.45 9.3% 9.3% Mar 386,115.21 404,531.17 377,031.62 388,003.16 401,206.91 416,605.50 473,811.33 477,467.15 663,855.30 526,375.13 -20.7% -20.7% Apr 345,371.09 388,395.50 386,050.82 417,855.89 427,879.44 446,041.63 467,192.12 489,072.87 631,721.78 593,776.15 -6.0% -6.0% May 433,829.01 436,195.21 498,095.67 523,401.05 482,917.95 503,867.81 549,206.70 560,332.38 785,494.64 - -100.0% -100.0% Jun 461,423.68 440,255.04 426,392.73 474,203.81 470,585.33 521,559.76 561,287.34 588,209.75 656,099.21 -100.0% -100.0% Jul 447,452.18 485,459.76 479,174.06 542,973.27 527,519.46 563,935.31 571,270.49 620,426.16 660,202.41 -100.0% -100.0% Aug 445,158.94 503,181.84 484,955.71 470,505.22 462,669.36 497,201.21 544,029.21 602,951.70 597,700.58 -100.0% -100.0% Sep 390,399.33 379,381.19 397,495.82 439,444.29 448,218.93 501,126.67 481,663.70 496,193.64 553,001.20 -100.0% -100.0% Oct 372,676.23 396,328.87 409,967.74 460,096.82 454,442.30 461,549.38 467,600.32 501,342.95 605,830.73 -100.0% -100.0% Nov 421,960.12 424,038.37 465,299.53 474,241.74 444,533.08 495,519.24 527,900.06 562,628.37 589,588.61 -100.0% -100.0% Dec 527,865.36 518,379.58 549,200.76 569,707.38 605,509.16 629,143.57 652,695.25 656,366.61 765,163.32 -100.0% -100.0% Total $ 4,841,751.08 $ 5,041,614.65 $ 5,162,181.40 $ 5,488,635.85 $ 5,452,904.22 $ 5,757,136.65 $ 6,090,207.96 $ 6,376,930.00 $ 7,407,873.55 $ 2,120,450.79 Change $ 192,849.55 $ 199,863.57 $ 120,566.75 $ 326,454.45 $ (35,731.63) $ 304,232.43 $ 333,071.31 $ 286,722.04 $ 1,030,943.55 $ (5,287,422.76) Change % 4.1% 4.1% 2.4% 6.3% -0.7% 5.6% 5.8% 4.7% 16.2% -71.4% $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 Monthly Hi -Way Sales Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec ■ 2012 ■ 2013 ■ 2014 ■ 2015 ■ 2016 ■ 2017 ■ 2018 ■ 2019 ■ 2020 ■ 2021 Hi -Way Liquors Sales Report 1/31/2021 Beer Month 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 CYM-LYM Y -T -D Jan $ 149,406.45 $ 160,903.32 $ 173,814.13 $ 191,370.26 $ 176,483.68 $ 174,846.99 $ 198,202.11 $ 197,270.15 $ 221,209.18 $ 256,155.31 15.8% 15.8% Feb 150,589.28 162,865.75 161,168.63 164,508.11 175,055.27 179,346.12 187,042.58 196,211.84 222,640.46 236,816.07 7.6% 6.4% Mar 203,957.25 192,607.52 185,325.68 192,955.79 199,141.66 208,926.70 233,971.24 232,963.84 332,798.19 270,180.15 -26.8% -18.8% Apr 179,486.77 186,134.31 198,195.77 219,756.39 228,133.10 234,069.51 224,348.27 244,892.28 323,605.96 295,780.91 -12.4% -8.6% May 227,664.73 234,738.30 256,188.77 259,306.91 250,403.11 262,275.25 306,245.55 304,724.08 436,582.76 -142.6% -100.0% Jun 259,671.21 243,389.79 238,322.11 263,421.95 263,264.15 296,531.85 309,163.93 335,878.00 378,351.43 -122.4% -100.0% Jul 253,648.64 273,319.54 265,555.32 301,867.65 296,513.68 315,848.83 314,343.95 352,522.92 380,390.43 -121.0% -100.0% Aug 242,179.20 281,577.25 267,802.95 253,141.21 250,255.41 268,173.42 292,626.23 335,258.06 331,928.29 -113.4% -100.0% Sep 208,974.88 202,213.80 211,854.94 233,215.56 238,333.55 270,898.13 257,557.44 262,477.64 298,017.83 -115.7% -100.0% Oct 187,386.57 191,764.20 210,454.13 234,882.09 224,253.93 228,484.62 230,112.85 246,829.33 304,015.53 -132.1% -100.0% Nov 195,276.37 192,162.71 202,081.91 207,055.40 213,333.23 222,993.99 238,870.03 259,282.44 273,386.17 -114.4% -100.0% Dec 224,952.83 217,491.21 234,178.12 241,996.27 253,223.11 271,457.72 281,924.05 283,831.51 335,985.52 -119.2% -100.0% Total $ 2,483,194.18 $ 2,539,167.70 $ 2,604,942.46 $ 2,763,477.59 $ 2,768,393.88 $ 2,933,853.13 $ 3,074,408.23 $ 3,252,142.09 $ 3,838,911.75 $ 1,058,932.44 Change $ 154,459.22 $ 55,973.52 $ 65,774.76 $ 158,535.13 $ 4,916.29 $ 165,459.25 $ 140,555.10 $ 177,733.86 $ 586,769.66 $ (2,779,979.31) Change % 6.6% 2.3% 2.6% 6.1% 0.2% 6.0% 4.8% 5.8% 18.0% -72.4% Monthly Beer Sales 02012 $500,000 ■ 2013 $450,000 ■ 2014 $400,000 ■ 2015 $350,000 ■ 2016 $300,000 ■ 2017 $250,000 ■ 2018 $200,000 ■ 2019 $150,000 ■ 2020 $100,000 ■ 2021 $50,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Hi -Way Liquors Sales Report 1/31/2021 Liquor Month 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 CYM-LYM Y -T -D Jan $ 93,085.69 $ 103,977.89 $ 113,943.25 $ 118,577.85 $ 118,211.20 $ 114,509.99 $ 133,589.33 $ 142,171.51 $ 156,618.77 $ 171,764.88 9.7% 9.7% Feb 92,489.93 106,387.16 107,609.55 112,198.85 113,060.59 117,361.15 128,952.50 142,327.58 148,178.03 165,259.67 11.5% 11.5% Mar 112,244.43 124,487.55 116,316.49 118,269.49 118,839.79 131,238.09 151,716.52 159,432.14 222,258.49 171,629.15 -22.8% -22.8% Apr 98,080.67 113,594.37 115,579.47 123,841.34 126,073.89 130,114.53 136,883.13 147,197.73 193,843.09 182,841.90 -5.7% -5.7% May 114,299.35 127,622.31 135,370.38 140,116.66 129,009.36 142,237.28 160,936.65 170,109.40 238,076.67 -100.0% -100.0% Jun 128,604.32 124,019.90 120,291.71 136,716.81 135,763.26 147,813.59 168,769.36 166,679.78 190,517.50 -100.0% -100.0% Jul 123,672.73 139,270.04 139,967.77 155,436.54 150,173.35 160,220.37 170,108.99 178,157.56 192,891.98 -100.0% -100.0% Aug 126,065.14 141,197.73 138,660.76 136,440.40 135,841.14 144,263.78 164,013.08 180,017.57 178,691.20 -100.0% -100.0% Sep 109,153.56 107,605.71 115,119.19 129,195.42 130,101.01 143,252.37 147,649.35 153,415.28 168,453.24 -100.0% -100.0% Oct 106,326.73 116,677.74 124,271.15 140,198.97 128,290.50 145,864.34 150,852.02 161,850.02 196,727.06 -100.0% -100.0% Nov 120,127.29 126,412.24 134,241.85 132,261.11 134,208.12 149,468.96 167,360.12 181,489.37 190,007.13 -100.0% -100.0% Dec 172,370.96 175,523.36 184,746.26 190,944.24 205,335.83 213,217.73 229,121.92 236,248.55 274,808.82 -100.0% -100.0% Total $ 1,396,520.80 $ 1,506,776.00 $ 1,546,117.83 $ 1,634,197.68 $ 1,624,908.04 $ 1,739,562.18 $ 1,909,952.97 $ 2,019,096.49 $ 2,351,071.98 $ 691,495.60 Change $ 53,411.82 $ 110,255.21 $ 39,341.83 $ 88,079.85 $ (9,289.64) $ 114,654.14 $ 170,390.79 $ 109,143.52 $ 331,975.49 $ (1,659,576.38) Change % 4.0% 7.9% 2.6% 5.7% -0.6% 7.1% 9.8% 5.7% 16.4% -70.6% $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 Monthly Liauor Sales Jan Feb Mar Apr L ■ I May Jun Jul Aug Sep Oct Nov Dec ■ 2012 ■ 2013 ■ 2014 ■ 2015 ■ 2016 ■ 2017 ■ 2018 ■ 2019 ■ 2020 ■ 2021 Hi -Way Liquors Sales Report 1/31/2021 Wine Month 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 CYM-LYM Y -T -D Jan $ 50,238.83 $ 54,949.83 $ 59,391.16 $ 61,128.65 $ 60,454.56 $ 57,275.16 $ 60,047.20 $ 61,183.52 $ 62,895.50 $ 70,478.45 12.1% 12.1% Feb 54,642.27 60,573.12 57,228.51 62,600.47 64,797.38 58,664.45 62,027.36 58,391.94 61,207.21 68,862.51 12.5% 12.5% Mar 57,735.22 77,810.58 66,425.24 67,121.51 71,840.82 64,286.75 74,221.20 70,209.75 91,704.66 67,769.17 -26.1% -26.1% Apr 57,973.74 79,736.19 63,101.05 63,285.56 61,268.24 69,415.79 93,299.96 83,324.61 96,264.97 97,120.74 0.9% 0.9% May 78,740.40 62,491.07 92,083.62 109,512.94 87,333.35 82,724.29 61,684.97 67,148.30 84,611.53 -100.0% -100.0% Jun 56,607.74 59,523.15 54,270.56 59,036.14 54,889.39 58,623.08 61,777.09 62,727.56 62,892.81 -100.0% -100.0% Jul 54,467.20 57,115.44 57,743.98 66,029.11 60,750.62 64,034.24 64,494.29 64,596.65 62,399.50 -100.0% -100.0% Aug 61,825.30 64,057.61 62,446.04 63,546.01 60,015.78 66,304.12 67,701.51 64,188.91 64,865.71 -100.0% -100.0% Sep 60,317.17 59,121.12 59,409.30 62,210.27 65,294.31 68,220.79 59,923.84 62,984.34 67,867.49 -100.0% -100.0% Oct 66,423.82 75,606.28 63,659.41 70,038.32 89,005.29 70,516.61 70,894.54 77,535.39 86,852.18 -100.0% -100.0% Nov 97,249.52 96,824.40 117,402.23 122,947.90 83,896.45 109,969.88 107,567.02 105,744.41 110,227.26 -100.0% -100.0% Dec 116,610.70 113,008.24 115,617.50 120,274.96 129,536.28 124,115.79 120,746.12 115,969.12 130,324.38 -100.0% -100.0% Total $ 812,831.91 $ 860,817.03 $ 868,778.60 $ 927,731.84 $ 889,082.47 $ 894,150.95 $ 904,385.10 $ 894,004.50 $ 982,113.20 $ 304,230.87 Change $ 63,924.14 $ 47,985.12 $ 7,961.57 $ 58,953.24 $ (38,649.37) $ 5,068.48 $ 10,234.15 $ (10,380.60) $ 88,108.70 $ (677,882.33) Change % 8.5% 5.9% 0.9% 6.8% -4.2% 0.6% 1.1% -1.1% 9.9% -69.0% $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 Jan Monthly Wine Sales May Jun Jul Aug Sep Oct Nov Dec ■ 2012 ■ 2013 ■ 2014 ■ 2015 ■ 2016 ■ 2017 J ■ 2018 IT� ■ 2019 ■ 2020 ■ 2021