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09-10-2024 City Council AgendaREGULAR CITY COUNCIL MEETING RICHFIELD MUNICIPAL CENTER, COUNCIL CHAMBERS SEPTEMBER 10, 2024 7:00 PM INTRODUCTORY PROCEEDINGS Call to order Pledge of Allegiance Open forum Call into the open forum by dialing 1-415-655-0001 Use webinar access code: 2634 781 8135 and password: 1234. Please refer to the Council Agenda & Minutes web page for additional ways to submit comments. Approval of the Minutes of the (1) City Council Work Session of August 14, 2024; (2) City Council Meeting of August 14, 2024; (3) Special City Council Meeting of August 15, 2024; and (4) Special City Council Work Session of August 20, 2024. AGENDA APPROVAL 1.Approval of the Agenda PRESENTATIONS 2.Proclamation celebrating Hispanic Heritage Month 3.Audit review 4.Consent Calendar contains several separate items, which are acted upon by the City Council in one motion. Once the Consent Calendar has been approved, the individual items and recommended actions have also been approved. No further Council action on these items is necessary. However, any Council Member may request that an item be removed from the Consent Calendar and placed on the regular agenda for Council discussion and action. All items listed on the Consent Calendar are recommended for approval. A.Consider the approval of the first reading of an ordinance amending Richfield City Code Appendix D (Fee Schedule) related to building, planning, and zoning fees, and schedule a public hearing and second reading for September 24, 2024. Staff Report No. 112 B.Consider a resolution approving the 2024 Revised and 2025 Budget for the Affordable Housing Trust Fund. Staff Report No. 113 C.Consider the approval of a resolution authorizing a grant agreement with American Forests in the amount of $498,075.00 as part of the United States Department of Agriculture (USDA) Forest Service's Urban and Community Forestry grant program. Staff Report No. 114 D.Consider approval of a Temporary On Sale Intoxicating Liquor license for their RHS fast-pitch fundraising event scheduled to take place October 5, 2024, at Fred Babcock VFW #5555, located at 6715 Lakeshore Dr. Staff Report No. 115 E.Consider approval of Amendment #1 to License No. L-344 between the City of Richfield and the Minnesota Department of Health for air monitoring equipment at the Richfield Water Treatment Plant. Staff Report No. 116 F.Consider adoption of a resolution of support for Richfield's application for federal funding for a Corridor Planning Study of 76th and 77th Streets via the USDOT Reconnecting Communities Pilot (RCP) Grant Program. Staff Report No. 117 G.Consider adoption of a resolution accepting a Hennepin County Youth Activities Grant in the amount of $200,000 for Donaldson Park playground improvements and the Pillsbury Plaza playground. Staff Report No. 118 H.Consider extending American Rescue Plan Act Professional Services Agreement with the Conflict Resolution Center to November 15, 2024. Staff Report No. 119 I.Consider the approval of a resolution pertaining to filing of the Pay Equity Report with the Minnesota Management and Budget Department. Staff Report No. 120 5.Consideration of items, if any, removed from Consent Calendar OTHER BUSINESS 6.Receipt of the City of Richfield Annual Financial Report for the fiscal year ended December 31, 2023. Staff Report No. 124 7.Discussion regarding City Council attendance at the 2024 National League of Cities (NLC) City Summit Conference. Staff Report No. 125 RESOLUTIONS 8.Consider a request by Brixmor for a Conditional Use Permit, an Amended Planned Unit Development and Final Development Plan, for a retail use over 50,000 square feet of gross floor area at 140 - 66th Street West in order to re-tenant the building with a new grocer. Staff Report No. 121 9.Consider 2024 Revised/2025 Proposed Budget resolutions adopting the 2025 preliminary property tax levy, setting truth in taxation hearing date, authorizing budget revisions, authorizing revision of 2024 department budgets and setting City fees for 2025. Staff Report No. 122 10.Consider the adoption of a resolution approving the contract with Teamsters #320 (Lieutenants) bargaining unit for the period January 1, 2024 through December 31, 2025 and authorize the City Manager to execute the agreement. Staff Report No. 123 CITY MANAGER’S REPORT 11.City Manager's Report CLAIMS AND PAYROLLS 12.Claims and Payroll COUNCIL DISCUSSION 13.Hats Off to Hometown Hits 14.Adjournment Auxiliary aids for individuals with disabilities are available upon request. Requests must be made at least 96 hours in advance to the City Clerk at 612-861-9739. From:Courtney Miller To:Michelle Friedrich Subject:FW: Richfield Public Safety Budget Date:Monday, September 16, 2024 8:23:43 AM From: Katie Rodriguez <krodriguez@richfieldmn.gov> Sent: Tuesday, September 10, 2024 3:47 PM To: Courtney Miller <CMiller@richfieldmn.gov> Subject: FW: Richfield Public Safety Budget From: James Jaffe <jaffejames7@gmail.com> Sent: Monday, September 9, 2024 9:21 PM To: Mary Supple <MSupple@richfieldmn.gov>; Sharon Christensen <SChristensen@richfieldmn.gov>; Simon Trautmann <STrautmann@richfieldmn.gov>; Sean Hayford Oleary <SHayfordoleary@richfieldmn.gov>; Ben Whalen <BWhalen@richfieldmn.gov> Cc: Katie Rodriguez <krodriguez@richfieldmn.gov> Subject: Richfield Public Safety Budget Hello, My name is James Jaffe and I live at 6900 Blaisdell Ave S, Minneapolis, MN 55423. I am very interested in the conversation around the upcoming city public safety budget and I would appreciate it if my comments could be read at the open forum on Tuesday. I have been a Richfield resident since 2019, first as a renter and now as a homeowner. I appreciate the professionalism of the Richfield Police Department and the hard work that officers put into maintaining a positive relationship with the community. I support the $700,000 in the proposed public safety budget as endorsed by the police union. The city must show our officers that we need them and will compensate and equip them appropriately. However, I would like Richfield to consider alternative uses for the additional $300,000 in the public safety budget. The police are faced with an ever growing number of calls for mental health crises and medical emergencies. More and more of the officers' time is taken up with calls that may not require an armed officer. I would like to see an expansion of the department's paramedic, social worker, and mental health professional staff. I think that these resources would help relieve the current heavy call load and continue moving Richfield Public Safety towards a more holistic approach to policing. I love living in Richfield and I look forward to what we can accomplish together for our shared future. Thank you for your time! Cheers, James Jaffe Good evening Mayor Supple and esteemed members of the City Council. Thank you for the opportunity to express my opinion on an issue that is being discussed. I come before you not only as a concerned resident of our community but as someone who deeply believes in the power of collaboration and constructive dialogue. The decisions made in this chamber have a profound impact on the lives of all of us and I would like to respectfully share my thoughts on the following- A group is proposing to take the money allotted to hire 2 more officers and instead to hire a paramedic and social worker. I’m opposed to this. While I respect and value the roles of paramedics and social workers in addressing critical social and health issues in our community. I firmly believe that our first priority should be enhancing public safety. Our police officers are already stretched thin, and in a time when crime and emergency response demands are growing, we cannot afford to weaken our capacity to ensure the safety of our neighborhoods. Law enforcement officers are uniquely trained to handle dangerous and unpredictable situations that can’t always be addressed by social services or health care professionals alone. I would like to point out that we have a full time, on duty fire department who have excellent response times for emergencies. Balancing public safety with social services is important, but we need to ensure our city remains well protected. I urge the council to reconsider this proposal and retain the resources for law enforcement as initially intended. Thank you for your consideration. Kindest Regards, D. Erickson 6718 Clinton Avenue 612-743-2550 From: To: Cc: Subject: Date: Kelly Wynn Katie Rodriguez Michelle Friedrich FW: public comment for 9/10/24 meeting Tuesday, September 10, 2024 7:36:25 AM Open forum comment for tonight. Kelly Wynn (she/her/hers) Administrative Assistant/EMT | City of Richfield Tel: (612) 861-9711 From: Gina VanArnam <mollisol.mn@gmail.com> Sent: Monday, September 9, 2024 7:48 PM To: Kelly Wynn <KWynn@richfieldmn.gov> Subject: public comment for 9/10/24 meeting We have reviewed The Axtell Group’s Richfield Department of Public Safety Organizationaland Staffing Assessment Report. It notes that “…while the population, the number of calls forservice, and crime in Richfield have remained relatively steady, the demands on the city’spolice officers have increased significantly…. [O]fficers are responding to a growing numberof mental health calls, often received under a different call type and difficult to predict orrecognize until officers arrive, which often require more time on scene. Additionally, moretraining is required of officers; social media, cell phones, and other technology have madeinvestigation more complex…” – pg 3, Axtell Report The report goes on to explain that “while the RPD has adjusted its services and training tomeet changing needs, TAG found that staffing and scheduling have remained largelyunchanged for decades” (pg 3). This has led to many of our officers frequently eschewingtheir own vacation time to respond to this increase in volume, as they worry that if they do so,their colleagues will be unfairly burdened with the additional work. With this comes stress,mental health fatigue, and adverse effects on retention, and the concern that this pace isultimately unsustainable. To address the concerns related to the current staffing levels and retention, the preliminary2025 Richfield includes funding for wage increases for the current officers and lieutenants.The Public Safety budget increase also adds officer positions, and while it is understandablethat this is one suggested solution, there are other ways that this approximately $300,000 couldbe used. Research and experience show the high value of having additional embedded socialworkers in the police force. Is any of the funding slated for this? For example, since Richfieldis basing the Alternative Response Team pilot on Brooklyn Center’s successful approach, weknow that it is very likely going to call for funding at least one additional embedded socialworker and EMT in order to be able to staff multiple shifts. Research is also showing, nationwide, stopping people for low-level traffic violations is notcontributing to a reduction in crime. Is there an effort to discontinue this practice in Richfield,thus freeing up time for our overworked police officers? If this practice needs to continuebecause of state / county regulations, does the strategic plan include lobbying efforts by thecity and the police department to ask our legislators to pass the required legislation? Added Agenda Item: Open Forum Public Comment Received Tuesday, September 10, 2024 We believe that this remaining funding could be used to increase the number of imbedded social service workers, continue to provide training to dispatch and officers on how to handlethe growing number of mental health calls (to reduce the time on the scene), and to support lobbying efforts to stop using valuable police time on infractions that do not contribute toreduced crime. Thank you, Richfield for Equitable Public Safety (REPS) From:Courtney Miller To:Michelle Friedrich Subject:FW: Public Safety Budget comments for Richfield City Council Meeting 9/10 Date:Monday, September 16, 2024 8:26:29 AM From: Katie Rodriguez <krodriguez@richfieldmn.gov> Sent: Tuesday, September 10, 2024 5:37 PM To: Courtney Miller <CMiller@richfieldmn.gov> Subject: FW: Public Safety Budget comments for Richfield City Council Meeting 9/10 From: Katie Rodriguez Sent: Tuesday, September 10, 2024 4:05 PM To: Rori Woods <roriwoods@gmail.com>; Mary Supple <MSupple@richfieldmn.gov> Cc: Jay Henthorne <JHenthorne@richfieldmn.gov> Subject: RE: Public Safety Budget comments for Richfield City Council Meeting 9/10 Hi Rori, Thanks for your message and I will read it tonight. Since I recommend the budget to the council I wanted to provide some more context. Please note I have blind copied the other council members due to open meeting restrictions. We agree with your suggestion to explore alternative programs to improve public safety and have funded multiple programs both in this year’s recommendation and in past budgets. Currently, the Police budget funds the Joint Community Police Partnership program that focuses on increased community engagement, an embedded social worker that works on referrals from any department, and the alternative response program (ART) where a paramedic and social worker respond to mental health related calls which just started in June of this year. In addition, the department is developing a new alternative program with Bloomington Public Health which will connect those struggling with addiction to mental health resources. This program will be funded with opioid settlement funds. We have also been invited to participate in another program through Hennepin County that focuses on victims impacted by crime but will not be able to participate without additional staff. Since I joined the city in 2019, we have added 4 positions (some through Hennepin County programs) that support non-traditional approaches to public safety. Hennepin County has also invested in alternative response programs and the most recent improvement is to provide access to social workers 24/7 through Community Outreach for Psychiatric Emergencies or COPE. While these programs are improving public safety services, they are not able to address the full range of service demands. Since ART started in June, the team has responded to an average of one call per shift. We expect that to increase to about 300-400 calls per year, but ART will not be able to address the bulk of public safety calls which total 37,000 per year. I feel it would be financially irresponsible to expand a program at this time. We are tracking the results of all our alternative response programs, learning about other opportunities, and will continue to innovate. Some of the other improvements require more time for our sworn staff, including additional training, more community engagement, additional time on traffic stops to collect better data, de-escalation takes longer, and investigations now often involve video and search warrants. We had an independent organizational study that provides more detail that you can access on our website. Due to the extra time demands and the fact that like many departments we have been short staffed, our officers are reporting fatigue and feeling overworked. It is critically important that our sworn staff are well rested and have time to do their jobs well, both for their safety and the public’s. I know that Richfield’s tax base is modest and carefully vet department requests to add staff. Our sworn staff levels in RPD are very lean compared to recommended levels and we have not added sworn staff for decades. I believe two additional sworn officers, one in the 2024 Revised and one addition in the 2025 Proposed, are needed. We are optimistic that we can fill staff vacancies through a new grant program, our Community Service Officer (CSO) program, traditional recruiting and our current officers’ informal recruiting. We are also proposing to add an additional CSO position in 2025 and expand all 3 CSO position duties to relieve some of our officers’ responsibilities. This was a suggestion from a council member and is another example of innovation. The additional CSO can help address a growing problem with hoarding in the community, including connecting people to our embedded social worker. Additionally, our CSO program has been very successful in recruiting Richfield residents that reflect the City’s diversity who then go on to become officers. Of course, successful informal recruiting requires that we address the current situation of officers feeling overworked. Finally, we know from residents, through messages like yours and surveys, that public safety is a top priority. Residents rated recent Community Survey as their top concern, however they rated feeling less safe than in early 2020. While our dedicated staff have been able to keep crime rates steady, there are some troubling trends. We have had to answer calls in Minneapolis like other first-ring suburbs. Calls are taking increasing time, there are more weapons and less compliance. Officer injuries are more common. Over the Labor Day weekend, we had a domestic disturbance call and only one officer was able to respond because there were so many other calls. Once on scene the officer, the paramedic and two firefighters were all assaulted. The following Tuesday, we had a mental health call, a man with a machete had hidden in an attic which resulted in a 3-hour de- escalation including a mental health professional. We have also had more frequent incidents of “stacking” 911 calls where they must be triaged. Thankfully, no one was seriously injured in any of these incidents. I don’t share these incidents to fearmonger: it is my role as City Manager, along with our leadership team, to make sure our services keep residents and staff as safe as possible day to day. These are the kind of operational details that have led to my recommendation. Please forgive my very long response, I do want residents to understand that the additional staffing request was made after thorough consideration. I also hope to convey that we share your goals. However, we believe that at this moment investing in both traditional and non-traditional programs will improve our public safety efforts. Again, we have added 4 positions in the last 5 years to progressive police programs, and this is my first request to add 2 positions to more traditional policing. We are working on the totals budgeted to the various programs, but I am likely not to have that tonight. It also won’t capture the changes to the officers’ processes that are progressive improvements and require more time as opposed to funding. I am available to discuss further as is Chief Henthorne. In fact, I would welcome an opportunity to meet with any of the candidates to discuss other issues too. Best, Katie From: Rori Woods <roriwoods@gmail.com> Sent: Tuesday, September 10, 2024 3:33 PM To: Katie Rodriguez <krodriguez@richfieldmn.gov>; Mary Supple <MSupple@richfieldmn.gov>; Ben Whalen <BWhalen@richfieldmn.gov>; Simon Trautmann <STrautmann@richfieldmn.gov>; Sean Hayford Oleary <SHayfordoleary@richfieldmn.gov> Subject: Public Safety Budget comments for Richfield City Council Meeting 9/10 Hi Councilmembers, I am writing to provide my comments as a potential Council Member regarding the city's budget reallocation for Public Safety. While I holistically support the need for our Public Safety officers, our traditional model of public safety needs to progress with the state of our community. We are in great need for alternative responses to the Safety of our community members, from my understanding that Alternative Response Team has only available 1 shift out of 4 shifts and shared with Edina. I believe we need to invest in more shifts in order to meet the greater needs of the community. I would agree with other council members that are leaning towards the allocation of $300,000 to the behavioral crisis response and alternative response teams. I also agree with the need to keep the good officers that we do have and to retain that good talent. Unfortunately, I am unable to attend tonight's council meeting, and would please request that these comments be read at this evening's meeting. Thank you, Rori Coleman-Woods From:Courtney Miller To:Michelle Friedrich Subject:FW: Public Safety Date:Monday, September 16, 2024 8:23:57 AM From: Katie Rodriguez <krodriguez@richfieldmn.gov> Sent: Tuesday, September 10, 2024 2:57 PM To: Courtney Miller <CMiller@richfieldmn.gov> Subject: FW: Public Safety From: Megan Paul <paul.meganliz@gmail.com> Sent: Monday, September 9, 2024 8:17 AM To: Mary Supple <MSupple@richfieldmn.gov>; Sharon Christensen <SChristensen@richfieldmn.gov>; Simon Trautmann <STrautmann@richfieldmn.gov>; Sean Hayford Oleary <SHayfordoleary@richfieldmn.gov>; Ben Whalen <BWhalen@richfieldmn.gov> Cc: Katie Rodriguez <krodriguez@richfieldmn.gov> Subject: Public Safety Dear Mayor and City Council Members, My name is Megan Paul, and I am one of your constituents in Richfield. As someone with an interest in public safety, I am hoping that the Richfield City budget, while still supporting our police, can also invest in alternative models of public safety. Alternative models may include investing in the mental health of our community with trained behavioral health responders, taking a preventative approach to violence and crime by investing in the needs of our community, and providing rehabilitation efforts for those with prior offenses, among other resources. Please consider a joint investment in alternative models for public safety alongside investing in our police. Alternative models also serve as a form of support for the work our police officers already do, and they deserve various alternative models of support. Thank you for your time in reading this email. I would like to request that this be read during the open forum on Tuesday. Sincerely, Megan Paul From:Courtney Miller To:Michelle Friedrich Subject:FW: Suggestions for public safety budget Date:Monday, September 16, 2024 8:23:31 AM Good morning! Here comes the public comment emails. From: Katie Rodriguez <krodriguez@richfieldmn.gov> Sent: Tuesday, September 10, 2024 3:50 PM To: Courtney Miller <CMiller@richfieldmn.gov> Subject: FW: Suggestions for public safety budget From: Carey Seeley Dzierzak <careyseeley28@gmail.com> Sent: Monday, September 9, 2024 9:33 PM To: Mary Supple <MSupple@richfieldmn.gov>; Sharon Christensen <SChristensen@richfieldmn.gov> Cc: Katie Rodriguez <krodriguez@richfieldmn.gov> Subject: Suggestions for public safety budget Good evening Richfield leaders, I'm reaching out with some concerns about the balance of our public safety budget. I know we have excellent police and safety officers in Richfield, but I would like to see more funds being allocated for social workers, mental health responders, and crime prevention. Based on what I understand, it appears that only $25,000 is being spent on mental health and prevention out of 1 million dollars, I would like to see a better balance in this funding. Could this be increased to $300,000? This would be a more balanced allocation of prevention and reactive measures. As a former teacher and school administrator, I know how important these services are for children and parents who are struggling in our communities. Please read this suggestion at your next open forum on Tuesday, Sept. 10th. Thank you for your consideration! Carey Seeley Dzierzak Dr. Carey Seeley Dzierzak Richfield Citizen since 2003 https://www.thepeacepad.org/book Educator, Consultant & Writer careyseeley28@gmail.com "Peace is not just the absence of conflict; peace is the creation of an environment where all can flourish." ~Nelson Mandela CITY COUNCIL MEETING MINUTES Richfield, Minnesota City Council Work Session August 14, 2024 CALL TO ORDER Mayor Supple called the work session to order at 5:02 p.m. in the Bartholomew Room. Council Members Present: Mary Supple, Mayor; Simon Trautmann, Sharon Christensen; Sean Hayford Oleary, Ben Whalen Staff Present: Katie Rodriguez, City Manager; Kumud Verma, Finance Manager; Jay Henthorne, Police Chief; Karl Huemiller, Recreation Services Director; Mike Dobesh, Fire Chief; Joe Powers, City Engineer; Kristin Asher, Public Works Director; and Kelly Wynn, Administrative Assistant ITEM #1 PREVIEW THE PRELIMINARY 2025 BUDGET AND PROVIDE LONG-TERM FINANCIAL PLANNING UPDATE AS SUMMARIZED IN THE KEY FINANCIAL STRATEGIES (KFS) SPREADSHEET. PREVIEW PROPOSED UTILITY RATES, PROPOSED CITY FEES AND THE PROPOSED 2025 CAPITAL IMPROVEMENT BUDGET (CIB) AND 2026-2029 CAPITAL IMPROVEMENT PLAN (CIP). City Manager Rodriguez provided a summary on the agenda and turned the first item over to Director Verma. Director Verma gave a summary of the budget update. She displayed a timetable for approving the 2025 budget and levy and discussed the proposed 2025 preliminary levy. Director Verma compared the gross tax levy history to the 2025 levy and noted the proposed tax levy will increase by $9.92 per month. She provided an overview of the general fund revenues. Council Member Christesen asked for details on what transfers listed on the slide entail. Director Verma noted the transfer items include any transfer made into the general fund for taxes, detailing services, etc. She listed the general fund expenditures by department. City Manager Rodriguez explained in detail why they have the fund balance reserve. Council Member Hayford Oleary asked why the revised 2024 public safety budget is lower than the 2025 proposed budget and if this was due to staffing. City Manager Rodriguez noted the budget decrease is due to staffing shortages in public safety. City Council Work Session Minutes -2- August 14, 2024 Mayor Supple asked for an explanation of the Finance Department's budget drop. Director Verma explained the City of Richfield contracted assessment services through Hennepin County, and effective in 2025, the County will no longer charge the City of Richfield an annual fee to conduct the assessment function and that is the reason for the 26% budget drop. She reported the general fund expenditure history. City Manager Rodriguez explained the staffing update and changes. She gave an overview of the positions they are proposing to add. Council Member Whalen shared he is surprised that they are hiring for so many new positions. He noted that he feels it is premature to hire two full-time police positions. He asked for the Council's opinions on waiting to add the police positions. He discussed his worries on the topic. Mayor Supple asked if there is flexibility for positions inside each department to switch, or if they are locked into the specific position. City Manager Rodriguez explained that they have recently added three new fire positions due to call increases but have yet to add police positions. Chief Henthorne noted that they are also planning to make some organizational changes to allow for more officers on the street. He also explained that they are looking for grant money to fund the alternative response team. Council Member Trautman asked how large of a benefit it realistically is to add the two police positions. Chief Henthorne explained that it will not only help with the streets, but also with investigations. Council Member Hayford Oleary agreed that this may be premature. He is also concerned about the budget if two police officers are added. City Manager Rodriguez shared details of the staff study done in the Public Safety Department. She discussed that the residents’ top concerns are public safety related. Fire Chief Dobesh discussed the staffing problems they have been having. He added that they must be flexible and aim to help the problems of the residents. Mayor Supple noted that it may be reasonable to add the two police positions. She discussed that the Council may need to look to broaden the conversation on the essential services that are needed in the community. Council Member Hayford Oleary added that if they are looking to broaden the conversation on needed essential services, it may not make sense to add the two new positions at the moment. City Manager Rodriguez explained that the staff additions have been reviewed by the departments and it fits into the proposed budget. Council Member Whalen shared that adding more police officers may not be the only solution to solving issues in public safety. They may want to look into more solutions to the problems that are being brought up by residents. City Council Work Session Minutes -3- August 14, 2024 Council Member Christensen added that they should look into being proactive in planning for the future. She also noted that this would help officers to work in a healthier manner and enable them to do a better job. Chief Henthorne discussed that the Police Department is falling behind and needs to make some department changes before it is too late. Council Member Whalen asked if the hiring capacity is higher if they have six open positions rather than four. City Manager Rodriguez explained that it may not help immediately in the short term, but it will hopefully balance out the staffing shortages in the long run. This also signals to the department that they understand the struggles they are facing. Council Member Christensen asked who the positions are for. Chief Henthorne explained that the positions would be for street officers but give the department flexibility to move more experienced officers to investigation positions. Director Verma displayed the City’s capital reserves. Mayor Supple asked for an explanation on what the transfers have done for the ice arena and pool. Director Verma explained the forecast of the planned money to be spent from the City reserves. She reported what is planned to be spent on the ice arena and pool. She also displayed the long-term financial planning document. Council Member Hayford Oleary asked if there is a goal for the capital reserve. City Manager Rodriguez stated that her goal is to remain at $5 million but she has not looked into an official goal. Manager Rodriguez explained the fee increases in the proposed budget. Council Member Trautman asked what the 3% fee includes. City Manager Rodriguez stated that it includes the support services fees. Mayor Supple asked why all language regarding electrical services has been removed. City Manager Rodriguez noted that the State is now handling the electrical inspections. Council Member Christensen asked what the fee increase will be for the adult cannabis and LPHE registration. Director Huemiller shared that they do not yet have the exact number, but it should not be much. Director Asher presented the proposed utility fund rates. She gave an overview of the water fund outlook and compared Richfield’s water rates to surrounding cities’ rates. Director Verma overviewed the process of developing and presenting the capital budget. She presented a graph displaying the division of the capital budget. City Council Work Session Minutes -4- August 14, 2024 Engineer Powers provided details on each Public Works capital project as well as the cost and timeline of each project. Director Huemiller provided details on each recreation services capital project. He summarized the cost of each project and the timelines for construction, noting they are looking into grants to fund parts of these projects. Council Member Trautman asked if the plan at Veterans Park is still to focus on accessibility around the park. Director Huemiller explained they plan on having at least one paved path around the whole park for wheelchair access. ADJOURNMENT Mayor Supple adjourned the work session at 6:48 pm. Date Approved: September 10, 2024 Mary B. Supple Mayor Michelle Friedrich Katie Rodriguez City Clerk City Manager The meeting was called to order by Mayor Supple at 7:00 p.m. in the Council Chambers. Council Members Present: Mary Supple, Mayor; Sharon Christensen; Simon Trautmann; Sean Hayford Oleary; and Ben Whalen Staff Present: Katie Rodriguez, City Manager; Karl Huemiller, Recreation Services Director; Mary Tietjen, City Attorney; and Kelly Wynn, Administrative Assistant PLEDGE OF ALLEGIANCE Mayor Supple led the Pledge of Allegiance. OPEN FORUM Mayor Supple reviewed the options to participate: ● Participate live by calling 1-415-655-0001 during the open forum portion ● Call prior to meeting 612-861-9711 ● Email prior to meeting kwynn@richfieldmn.gov Larry Ernster, 6727 Elliot Avenue South, Richfield, explained the problems he has with changing Richfield ordinances pertaining to microunits. Mary Best, 6727 Elliot Avenue South, Richfield, asked questions related to taxpayer support that would be needed to sustain new affordable living spaces. She also noted concerns about replacing single-family homes with new buildings. Kathleen Balaban noted that the financial impact of decisions the Council is making, are not available for residents to see. She asked questions about where this money is coming from and how it is impacting residents. APPROVAL OF MINUTES M/Hayford Oleary, S/Whalen to approve the minutes of the: (1) City Council Work Session of July 23, 2024; and (2) City Council Meeting of July 23, 2024. CITY COUNCIL MEETING MINUTES Richfield, Minnesota Regular Council Meeting August 14, 2024 CALL TO ORDER City Council Meeting Minutes -2- August 14, 2024 Motion carried: 5-0 ITEM #1 APPROVAL OF THE AGENDA M/Whalen, S/Christensen to approve the Agenda. Motion carried: 5-0 ITEM #2 CONSENT CALENDAR City Manager Rodriguez presented the consent calendar. A. Consider a resolution designating the City Manager as the signing authority for the Federal Department of Housing and Urban Development (HUD) environmental review required as part of the HUD Economic Development Initiative Grant in the amount of $3,000,000 for the Wood Lake Nature Center Building Project. (Staff Report No. 101) RESOLUTION NO.12226 RESOLUTION DESIGNATING CITY MANAGER KATIE RODRIGUEZ AS THE SIGNING AUTHORITY FOR THE HUD ENVIRONMENTAL REVIEW, REQUIRED AS PART OF THE ACCEPTANCE OF THE HUD ECONOMIC DEVELOPMENT INITIATIVE GRANT IN THE AMOUNT OF $3,000,000 FOR THE WOOD LAKE NATURE CENTER BUILDING PROJECT. B. Consider a request for a Conditional Use Permit and two buffer yard variances for an auto repair shop at 7524 Lyndale Avenue South. (Staff Report No. 102) RESOLUTION NO. 12227 RESOLUTION APPROVING A CONDITIONAL USE PERMIT AND TWO BUFFER YARD VARIANCES AT 7524 LYNDALE AVENUE SOUTH C. Consider entering into a Joint Powers Agreement ("JPA") for assessment services with Hennepin County (Staff Report No. 104) D. Consider the approval of two engineering consultant pool agreements between the City and the selected engineering firms for routine professional engineering services for calendar years 2024 through 2025. (Staff Report No. 105) E. Consider the adoption of a resolution identifying the need for a Livable Communities Demonstration Account Development grant and authorizing an application for grant funds on behalf of the Aster Commons Development located at 6613-25 Portland Avenue. (Staff Report No. 106) RESOLUTION NO. 12228 RESOLUTION IDENTIFYING THE NEED FOR LIVABLE COMMUNITIES’ DEMONSTRATION ACCOUNT DEVELOPMENT FUNDING AND AUTHORIZING APPLICATION FOR GRANT FUNDS F. Consider approval of an agreement between the City of Richfield and the Science Museum of Minnesota for professional services in the planning and design of interpretive exhibits for the new Wood Lake Nature Center Building. (Staff Report No. 107) City Council Meeting Minutes -3- August 14, 2024 G. Consider the approval of a resolution for reimbursement of certain expenditures from the proceeds of utility bonds to be issued by the City for the Water System Interconnect Project. (Staff Report No. 108) RESOLUTION NO. 12229 DECLARING THE OFFICIAL INTENT OF THE CITY OF RICHFIELD TO REIMBURSE CERTAIN EXPENDITURES FROM THE PROCEEDS OF BONDS TO BE ISSUED BY THE CITY WITH RESPECT TO THE WATER SYSTEM INTERCONNECT PROJECT M/Trautman, S/Christensen to approve the consent calendar. Motion carried: 5-0 ITEM #3 CONSIDERATION OF ITEMS, IF ANY, REMOVED FROM CONSENT CALENDAR None. ITEM #4 CONSIDER A RESOLUTION APPROVING THE CONTRACT WITH THE INTERNATIONAL UNION OF OPERATING ENGINEERS, LOCAL 49 FOR THE CONTRACT PERIOD JANUARY 1, 2024 THROUGH DECEMBER 31, 2025. (STAFF REPORT NO. 109) Council Member Trautman presented Staff Report 109. Council Member Trautman thanked the staff for their help on this. Mayor Supple also thanked staff and asked for an update on the financial impact of the wages in the proposed budgets. Manager Rodriguez noted that it is around a $49,000 increase. M/Trautman, S/Hayford Oleary to adopt a resolution approving the contract with the International Union of Operating Engineers, Local 49, for the contract period January 1, 2024, through December 31, 2025. RESOLUTION NO. 12230 RESOLUTION APPROVING LABOR AGREEMENT BETWEEN THE CITY OF RICHFIELD AND INTERNATIONAL UNION OF OPERATING ENGINEERS, LOCAL 49 BARGAINING UNIT FOR YEAR 2024 and 2025 Motion carried: 5-0 ITEM #5 CONSIDER APPROVAL OF AN AGREEMENT BETWEEN THE CITY OF RICHFIELD AND M.A. MORTENSON COMPANY FOR CONSTRUCTION MANAGER AT RISK SERVICES FOR THE CONSTRUCTION OF A NEW WOOD LAKE NATURE CENTER BUILDING. (STAFF REPORT NO. 103) Council Member Hayford Oleary presented Staff Report 103. City Council Meeting Minutes -4- August 14, 2024 Council Member Whalen asked staff to define the meaning of staff manager at risk. Director Huemiller explained that this is outlined in the State statute to have the construction manager set a maximum price for the project that won’t be exceeded. This reduces the risk for the City to go over budget for a project. M/Hayford Oleary, S/Christensen to approve an agreement between the City of Richfield and M.A. Mortenson Company for construction manager at risk services for the construction of a new Wood Lake Nature Building. Motion carried: 5-0 ITEM #6 CONSIDER A RESOLUTION ADOPTING TITLE AND BALLOT LANGUAGE PERTAINING TO A LOCAL OPTION SALES TAX AUTHORIZED BY THE MINNESOTA LEGISLATURE, TO BE SUBMITTED FOR CONSIDERATION TO THE VOTERS OF THE CITY OF RICHFIELD AT THE GENERAL ELECTION ON NOVEMBER 5, 2024. (STAFF REPORT NO. 110) Council Member Whalen presented Staff Report 110. Council Member Whalen asked if people will be able to see the full ballot language online. City Manager Rodriguez noted she will discuss with the City Attorney to assure they are allowed to display the sample ballots online. City Attorney Tietjen noted that it will likely be fine to display the sample ballot, but she will make sure. Council Member Whalen explained that if residents are curious about ballot language, they can look at the packet from the Council work session for more details. M/Whalen, S/Hayford Oleary to adopt a resolution adopting title and ballot language pertaining to a local option sales tax authorized by the Minnesota legislature, to be submitted for consideration to the voters of the City of Richfield at the general election on November 5, 2024. RESOLUTION NO. 12231 RESOLUTION ADOPTING TITLE AND BALLOT LANGUAGE PERTAINING TO A LOCAL OPTION SALES TAX AUTHORIZED BY THE MINNESOTA LEGISLATURE, TO BE SUBMITTED FOR CONSIDERATION TO THE QUALIFIED VOTERS OF THE CITY OF RICHFIELD AT THE GENERAL ELECTION ON NOVEMBER 5, 2024. Motion carried: 5-0 ITEM #7 CITY MANAGER’S REPORT City Manager Rodriguez shared information regarding reduced parking minimums that were passed in the previous meeting. ITEM #8 CLAIMS AND PAYROLL City Council Meeting Minutes -5- August 14, 2024 M/Whalen, S/Trautman that the following claims and payrolls be approved: U.S. BANK 08/08/2024 A/P Checks: 330043 - 330710 $3,467,407.46 Payroll: 189995 – 190389 43972 – 43977 $1,151,265.30 TOTAL $4,618,672.76 Motion carried: 5-0 ITEM #9 HATS OFF TO HOMETOWN HITS Council Member Trautman shared that there are fall rec sports that will be available. Council Member Hayford Oleary commented on his enjoyment of National Night Out events last week. He thanked all residents who helped organize events and all who attend Council Member Christensen thanked all election workers for the primaries. Council Member Whalen thanked election workers and the City Clerk. He also congratulated all who won their primaries. Mayor Supple thanked all who voted and participated in the primaries. She also thanked the Council members that were able to attend the ribbon cutting of the skate park opening. She gave best wishes to those going back to school and encouraged people to attend the upcoming Unity in the Community event. ITEM #10 ADJOURNMENT M/Trautman, S/Whalen to adjourn the meeting at 7:37 p.m. Motion carried: 5-0 Date Approved: September 10, 2024 Mary B. Supple Mayor Michelle Friedrich Katie Rodriguez City Clerk City Manager CALL TO ORDER The meeting was called to order by Mayor Mary Supple at 9:04 a.m. Council Members Mary Supple, Mayor; Mary Supple; Simon Trautmann; Sharon Christensen; Present: and Sean Hayford Oleary Council Members Ben Whalen Absent: Staff Present: Katie Rodriguez, City Manager; Michelle Friedrich, City Clerk; and Kelly Wynn, Administrative Assistant Item #1 CONSIDER THE ADOPTION OF A RESOLUTION DETERMINING THE RESULTS OF THE CITY PRIMARY ELECTION ON TUESDAY, AUGUST 13, 2024 (STAFF REPORT NO. 111) Mayor Supple presented staff report 111 and stated the updated resolution would be posted with the most recent numbers from Hennepin County after the meeting. M/Hayford Oleary, S/Christensen to approve the resolution determining the results of the City Primary Election on Tuesday, August 13, 2024. RESOLUTION NO. 12232 RESOLUTION DETERMINING RESULTS OF THE PRIMARY ELECTION OF THE CITY OF RICHFIELD HELD ON TUESDAY, AUGUST 13, 2024 Council Member Trautmann requested the current list of election judges be verified. City Clerk Friedrich agreed to confirm all the names on the list. Motion carried 4-0 Item #11 ADJOURNMENT CITY COUNCIL MEETING MINUTES Richfield, Minnesota Special Council Meeting August 15, 2024 Council Meeting Minutes -2- August 15, 2024 The meeting was adjourned by unanimous consent at 9:10 a.m. Date Approved: September 10, 2024 Mary B. Supple Mayor Michelle Friedrich Katie Rodriguez City Clerk City Manager City Council Work Session Minutes -1- August 20, 2024 ` CITY COUNCIL MEETING MINUTES Richfield, Minnesota City Council Work Session August 20, 2024 CALL TO ORDER Mayor Supple called the work session to order at 4:00 p.m. in the Bartholomew Room. Council Members Present: Mary Supple, Mayor; Simon Trautmann, Sharon Christensen; Sean Hayford Oleary, Ben Whalen Staff Present: Guests: Katie Rodriguez, City Manager; Jay Henthorne, Director of Public Safety/Chief of Police; Karl Huemiller, Recreation Services Director; Kate Aitchison, Communications and Engagement Manager; Kristin Asher, Public Works Director; Jennifer Anderson, Support Services Manager; Jamie Haefner, Human Resources Manager; Michelle Friedrich, City Clerk; Mike Dobesh, Fire Chief; Jane Skov, IT Manager; Kim Griffith, Motor Vehicle Supervisor; Chris Fierst, Liquor Store Manager; Melissa Poehlam, Community Development Director; and Courtney Miller, Senior Analyst. Robin Roland, Ehlers Finance Manager ITEM #1 PRESENTATION OF THE 2024 REVISED/2025 PROPOSED BUDGET AND TAX LEVY Mayor Supple welcomed all staff and thanked them for their work on the budget proposal. City Manager Rodriguez provided a summary on the agenda item and reviewed the budget summary slides. She presented the timeline of the budget and levy process. She noted the proposed 2025 general budget of $32,730,849, which is a 5.93% increase from the adopted 2024 budget. She thanked everyone who put the budget together. Manager Roland presented the budget overview for the finance department and shared information on the finance staff. She stated the budget has gone down by a large amount, due to staffing and assessments. The County will now be responsible for all assessments. She noted the department’s goal and initiatives for 2025. Council Member Hayford Oleary asked how many consultants they have with the reduced budget. City Manager Rodriguez explained that when staffing was down, they had three part-time consultants. These consultants were on contract to prepare for the end-of-year audit. City Council Work Session Minutes -2- August 20, 2024 Mayor Supple noted that she saw they had many training opportunities listed and asked if that is the case, so they don't end up in the same situation again. Manager Roland explained that she is here a few days a week to help staff handle money and their accounts. She noted that these have been big problems in the past and that is why she is helping. Chief Dobesh presented the budget overview and plans for the fire department. He provided a summary of the staffing and presented the highlights from the department in 2024. He noted the fire department hit a record number of calls for service. He also noted their goals and initiatives for 2025. Council Member Hayford Oleary asked what is included in the risk reduction activities and if they know how this will impact the future budget. Chief Dobesh noted they are hoping that they will be able to hire a new position to help handle these events and avoid overtime costs. He explained the budget impact should be negligible and they may not know how this will impact the budget fully. Manager Haefner presented the budget overview of the administrative services department. She explained the divisions that fall under the administrative services department and gave an overview of staffing. She presented the budget numbers of the 2024 revised and 2025 proposed and reported on the funds within the budget. City Manager Rodriguez shared more details on the election fund. She noted that the 20.99% increase is due to staffing increases and will be split between departments. Manager Haefner discussed the budget notes. She reported on the highlights from the human resources department. She also presented the many initiatives and goals the department has for 2025. Mayor Supple asked when they were planning to make the switch to Oracle. City Manager Rodriguez explained that this has been put on hold and needs to be brought to the board to make the decision. Clerk Friedrich discussed the highlights of the City Clerk department and provided a summary of the initiatives and goals for 2025. Supervisor Griffith reported the highlights from the Deputy Registrar and discussed the goals and initiatives for 2025. Manager Skov presented the highlights for the building services department. She also presented the IT department’s highlights as well as their initiatives and goals for 2025. She noted that their staff is doing very well and worked great together. Manager Aitchison reported the communications department's highlights and the goals and initiatives for 2025. Council Member Whalen asked to confirm the engagement rate listed in the presentation. Manager Aitchison confirmed that this rate is correct and is a combination of many different types of engagement. City Council Work Session Minutes -3- August 20, 2024 Council Member Hayford Oleary asked to confirm that the 2025 budget has money for the website. Manager Fierst summarized the liquor operations and the department overview. He presented the 2024 revised budget as well as the 2025 proposed budget and each location's budget and revenues. He discussed the budget notes for the department and presented the store managers for each location. Manager Fierst reported the 2024 highlights, 2025 goals and initiatives, and presented the 2024 round-up campaign numbers. He discussed how the opening of the Minnesota dispensaries will impact the department and noted that aging equipment will need to be fixed in the near future. Director Poehlman presented an overview of the community development department and their staffing. She reported the 2024 revised and 2025 proposed budget numbers as well as revenue changes. She discussed her notes on the budget and summarized the 2024 highlights and the 2025 goals and initiatives. She noted they recently promoted their Assistant Planner to the Planner I position. She described the many things that are needed in the near future. Mayor Supple asked what permit cleanup is. Director Poehlman explained that this is the process of going through their data and tracking it all in one place to see who still has outstanding permits and catch up on the numbers. Director Asher presented an overview of the public works department and their staffing. She reported all the divisions under public works, the 2024 revised, and the 2025 proposed budget numbers as well as the revenues. Council Member Whalen asked where they are with the maintenance of the new boulevards and boulevard plantings. Director Asher noted they are doing their best to maintain the new boulevards but have not added new funding to focus on that work so they are looking to contract out that work in the coming year. Council Member Hayford Oleary noted that he would like to see an increase of funds for the median maintenance. He asked his fellow Council Members how they feel about adding more funds to that maintenance work. Council Member Christensen shared her support for adding extra funds. She noted that she has heard many complaints on the issue. Council Member Whalen agreed that it would be worth it to invest in the maintenance. Director Asher presented the budgets by division and their funds. She discussed the notes on the public works budget and summarized an overview of the 2024 public works highlights and the 2025 initiatives and goals. She reported the future considerations and needs in the public works department. Council Member Christen asked if meter replacement has affected the budget and revenue. Director Asher explained that for the budget and revenue, it hasn't made much of an impact, but the meters do now give an accurate reading. Director Huemiller presented information on the recreation services department and their staffing. He presented the 2024 revised and the 2025 proposed budget numbers. He also discussed the revenue numbers. He noted the highlights for the department in 2024 and shared the goals and City Council Work Session Minutes -4- August 20, 2024 initiatives for 2025. He discussed the budget notes for each division in the department. He reported the budget for the special revenue funds and the projects being funded. Mayor Supple asked if they are making more money on the ice arena or are still trying to pay it off. Director Huemiller explained that they will be making a few thousand dollars in revenue, but the $700,000 in profit will be going into the fund balance. Director Huemiller reported the 2024 highlights from the special revenue projects as well as the 2025 initiatives and goals. He also discussed the budget notes from the special revenue funds. He presented the information on the different sustainability funds. There are three divisions in the sustainability fund. He reported the 2024 revised and the 2025 proposed budget numbers. He also shared his notes on the budget and gave the highlights from 2024 as well as the goals for 2025. Manager Anderson reported the support services department information and staffing, noting it is short staffed at the moment and looking to hire a few positions. She presented the budget notes for the department and discussed the support services highlights from 2024 and 2025 goals. She discussed they may need to add a new part-time position to the department and described future needs in the department Council Member Whalen asked how flexible the public health funds are and if the Council is able to make decisions on where the money goes. Manager Anderson explained that not much of the funds are flexible and most of it already has a place to go and a thing to fund. Chief Henthorne reported the public safety department overview and staffing information. He reported the 2024 revised and the 2025 proposed budget numbers as well as the revenue numbers by unit. He discussed the 2024 public safety highlights, 2025 goals and initiatives, and explained the future need and consideration for the public safety department. Council Member Hayford Oleary noted that he would like to see support for traffic safety cameras in the next legislative platform. Chief Henthorne discussed his notes for the department budget, noting that one new police officer has been added to staff. Council Member Trautman asked about the success of the Flock system in the six robberies. He also asked if these robberies were done in Richfield or by Richfield residents in other places. Chief Henthorne explained that some of these robberies were done by Richfield residents in St. Paul and they were able to arrest them in St. Paul and solve the crime due to the Flock system. Council Member Christensen asked if there are any updates on an SRO in the high school. Chief Henthorne explained they have been in contact with the high school and having discussions about trying to get an SRO back in the school. Mayor Supple asked if the public safety and fire departments are part of job fairs in schools. Chief Henthorne stated they attend most of the main job fairs in Minnesota in hopes of recruiting as many people as possible. City Council Work Session Minutes -5- August 20, 2024 City Manager Rodriguez pointed out that they still have two new additions of police officer positions in the budget. Chief Henthorne stated he is concerned with the big jump in overtime hours and if they don’t hire these new positions, noting the numbers will continue to rise and they may go over budget. Council Member Trautman noted his concern that they won't be able to fill the positions even if they add them. Chief Henthorne stated he believes that they will fill these shifts and adding these positions will allow the department to open the mid-shift back up and decrease the need for overtime and sick days. Council Member Hayford Oleary asked how many current open positions are in the department and how many people are on leave Chief Henthorne noted they have five open positions and three will be filled. There are two on paternity leave, one injured, one on deployment, and one of the new hires will also be going on deployment shortly after she starts. City Manager Rodriguez stated she sees value in adding these new positions even if they are not filled right away, noting this would send a message to staff that help is on the way and some of that stress may be relieved. Council Member Whalen discussed the thought process of adding these new positions to send a message to staff makes him want to vote no. He would like to hear more information on this before the vote including more data on how quickly they would be able to fill the positions. Council Member Trautman discussed the possibilities of adding different types of positions to relieve some responsibilities while they wait to fill the officer spots. He would like to know what help they need to solve some of their problems and more information and data before a decision is made. Mayor Supple noted that she is in favor of adding these new positions and hopes they can get filled soon. Council Member Christensen shared that she would like to be able to help the officers in some way even if they can’t fill the open positions. Council Member Hayford Oleary would like more information on when they would start taking the money to add these new positions. He is still unsure if he is in favor of adding two positions and may be in favor of adding one instead of two. Council Member Hayford Oleary asked if the Council approves FTEs or just dollar amounts. City Manager Rodriguez stated the Council approves the dollar amounts and she feels there is enough consensus to move forward in the budget on this decision. City Manager Rodriguez presented an overview of the legislative and executive department. She reported the department's 2024 revised and 2025 proposed budget. She also shared her budget notes and discussed the 2024 highlights, 2025 goals, and initiatives. She described the future needs and considerations for the department. ADJOURNMENT City Council Work Session Minutes -6- August 20, 2024 Mayor Supple adjourned the work session at 7:18 pm. Date Approved: September 10, 2024 Mary B. Supple Mayor Michelle Friedrich Katie Rodriguez City Clerk City Manager Proclamation of the City of Richfield WHEREAS, National Hispanic Heritage Month is an annual celebration of the history and culture of the U.S. Latino and Hispanic communities. WHEREAS, September 15 marks the anniversary of independence for five Latin American countries: Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua. They all declared their independence in 1821. In addition, Mexico, Chile and Belize celebrate their independence days on September 16, September 18, and September 21. WHEREAS, President Lyndon B. Johnson on this day in 1968 signed the National Hispanic Heritage Week bill into law. From 1968 until 1988, Presidents Nixon, Ford, Carter and Reagan all issued yearly proclamations setting aside a week to honor Hispanic Americans. WHEREAS, In 1987, U.S. Representative Esteban E. Torres of California proposed expanding the observance to cover its current 31-day period and in 1988, Senator Paul Simon (D- Illinois), submitted a similar bill that successfully passed Congress and was signed into law by President Ronald Reagan on August 17, 1988. WHEREAS, National Hispanic Heritage Week was expanded from one week to one month. On September 14, 1989, President George H.W. Bush became the first president to declare the 31 days from September 15 to October 15 as National Hispanic Heritage Month. WHEREAS, in the decades since National Hispanic Heritage Month, proclamations have been made by every sitting president of the United States. WHEREAS, National Hispanic Heritage Month 2024 will last from Sunday, September 15, 2024, through Tuesday, October 15, 2024. The event commemorates how those communities have influenced and contributed to American society and our nation with the quiet strength of closely-knit families and proud communities that help to build and defend our nation. Now, THEREFORE, I, Mary Supple, mayor of Richfield, on behalf of the Richfield City Council, do hereby proclaim September 15, 2024 through October 15, 2024 as National Hispanic Heritage Month in Richfield, and call on the people of Richfield to observe this period with appropriate programs, activities and ceremonies, and continue to honor the contributions of our Hispanic American community. PROCLAIMED this 10th day of September, 2024. Mary B. Supple, Mayor AGENDA SECTION:CONSENT CALENDAR AGENDA ITEM #4.A. STAFF REPORT NO. 112 CITY COUNCIL MEETING 9/10/2024 REPORT PREPARED BY:Courtney Miller, Senior Analyst DEPARTMENT DIRECTOR REVIEW: OTHER DEPARTMENT REVIEW: CITY MANAGER REVIEW: Katie Rodriguez, City Manager 9/4/2024 ITEM FOR COUNCIL CONSIDERATION: Consider the approval of the first reading of an ordinance amending Richfield City Code Appendix D (Fee Schedule) related to building, planning, and zoning fees, and schedule a public hearing and second reading for September 24, 2024. EXECUTIVE SUMMARY: City staff annually review departments fees to determine if charges for permits and services are appropriate. Staff want to ensure the costs of issuance for fees and permits reflect the staff time and costs related to performing the services associated with those fees. Staff also work to ensure that costs for City services are in line with our peer communities, are not excessive, and are compliance with state statute. Fees related to building permits, zoning, and other land use permits are established by Appendix D of the City's Code. Unlike other fees included in the budget agenda item, charges for building, planning, and zoning are required to be set by ordinance, not by resolution. RECOMMENDED ACTION: By motion: Approve a first reading of an ordinance amendment to Richfield City Code Appendix D (Fee Schedule) related to building, planning, and zoning fees, and schedule a public hearing and second reading for September 24, 2024. BASIS OF RECOMMENDATION: A.HISTORICAL CONTEXT B.EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS Having fees that reflect an appropriate cost when looking at staff time and resources helps to ensure that staff are able to continue to provide services at a high level for all residents. Comparing fee structures with other cities helps to mitigate unintended consequences for Richfield residents. C.POLICIES (resolutions, ordinances, regulations, statutes, exc): State Statutes require municipal fees and permits to be determined in accordance with actual staff time and costs that are incurred in providing related services. City staff has determined that the fees in question should be modified in order to better reflect actual time and costs incurred. D.CRITICAL TIMING ISSUES: If approved, a second reading and public hearing related to this ordinance amendment would occur on September 24, 2024. To ensure the ordinance is law before Jan. 1, 2025, it's important that this is approved at the September 24, 2024 meeting. E.FINANCIAL IMPACT: City staff has determined that current fees for some applications are insufficient to cover the costs related to processing those applications. Staff also reviews similar fees in our "peer communities" to ensure that Richfield's fees are not onerous or excessive. With the proposed changes, Richfield's fees remain in line with these peer communities. F.LEGAL CONSIDERATION: Notice of the public hearing shall be published in the Sun Current, as required. ALTERNATIVE RECOMMENDATION(S): PRINCIPAL PARTIES EXPECTED AT MEETING: ATTACHMENTS: Description Type Appendix D Transitory Ordinance Cover Memo Resolution and Summary Publication Appendix D Cover Memo City of Richfield September 24, 2024 County of Hennepin State of Minnesota BILL NO. 2024-X TRANSITORY ORDINANCE NO. 19-XX Motion By: Seconded By: AN ORDINANCE AMENDING APPENDIX D TO THE RICHFIELD CITY CODE; ESTABLISHING A FEE SCHEDULE FOR CERTAIN PERMITS AND APPLICATIONS THE CITY OF RICHFIELD DOES ORDAIN: Section 1. Background 1.01 Appendix D to the Richfield City Code consists of the schedule of fees adopted by the City Council, including those adopted by resolution and those adopted by Ordinance. 1.02 Minnesota Statutes, Section 462.353 requires that certain fees be adopted by Ordinance. The City Council has previously established certain fees by Transitory Ordinance No. 19.31. The City Council has established other fees by resolution, which resolution is also part of Appendix D. 1.03 The City Council has determined the need to update the schedule of fees under Transitory Ordinance No. 19.31. Section 2. Fee Schedule Adopted 2.01 The fees set forth in the attached Exhibit A are hereby adopted by Ordinance. 2.02 The fees adopted at Section 2.01 of this Ordinance shall be amended only by Ordinance. Any fees established by resolution, other than those adopted at Section 2.01 of this Ordinance, may be amended from time to time by resolution of the City Council. Section 3. Effective date; codification. 3.01 This Ordinance is effective in accordance with Section 3.09 of the City Charter. 3.02 This Ordinance shall take effect January 1, 2025. 3.03 A copy of this Ordinance shall be included in Appendix D to the Richfield City Code, immediately prior to the resolution establishing fees. 3.04 This Ordinance supersedes Transitory Ordinance No. 19.31. City of Richfield September 24, 2024 County of Hennepin State of Minnesota Adopted by the City Council of the City of Richfield, Minnesota this 24 day of September 2024. VOTING AYE VOTING NAY Supple, Mary Supple, Mary Christensen, Sharon Christensen, Sharon Hayford O’Leary, Sean Hayford O’Leary, Sean Trautmann, Simon Trautmann, Simon Whalen, Ben Whalen, Ben Mary B. Supple, Mayor ATTEST: Michelle Friedrich, City Clerk City of Richfield September 24, 2024 County of Hennepin State of Minnesota EXHIBIT A. CONSTRUCTION AND RELATED PERMIT FEES AND CHARGES A. Investigation Fees: Work without a Permit: Investigation. Whenever any work for which a permit is required by this code has been commenced without first obtaining said permit, a special investigation shall be made before a permit may be issued for such work. Fee. An investigation fee, in addition to the permit fee, shall be collected whether or not a permit is then or subsequently issued. The investigation fee shall be equal to the amount of the permit fee required by this code. The minimum investigation fee shall be the same as the minimum fee set forth in Section 2. The payment of such investigation fee shall not exempt any person from compliance with all other provisions of this code nor from any penalty prescribed by law. B. Permit fee refunds: The building official may authorize refunding of not more than 80 percent of the permit fee paid when no work has been done under a permit issued in accordance with this code. The building official may authorize refunding of not more than 80 percent of the plan review fee paid when an application for a permit for which a plan review fee has been paid is withdrawn or canceled before any plan reviewing is done. The building official shall not authorize refunding of any fee paid except on written application filed by the original permitted not later than 180 days after the date of fee payment. Type of Permit or License Section Requirin g Description Fee (1) Building Permits 400.03 — 400.09 Fee Schedule to follow MN Statute 326B.153 + State Surcharge 326B.148 https://www.revisor.mn.gov/statutes/cite/326 B.153 Except values of $1-$2,000, the fee is $65.00 https://www.revisor.mn.gov/statutes/cite/326 B.148 (2) Driveway, Parking Area Permits 515.05 (no permit fee for sidewalks) $4065.00 (3) Swimming 420.00 Permanent or portable pools are based on $5565.00 City of Richfield September 24, 2024 County of Hennepin State of Minnesota building permit fees with a minimum of (4) Plan Review Fee 400.03 — 400.09 25% for decks/porches, gazebos, bathroom remodels, etc. 35% of building permit fee for one and two family dwelling basement remodels Plan review fee for similar buildings 65% of building permit fee for all other building permits, except no fee for the following: (a) Existing single family dwelling minor nonstructural alterations. (b) Single and two family dwelling repair and maintenance work. (c) Commercial and industrial repair and maintenance work not exceeding $1,000.00 or where plans are not required. Plan Review fee for similar buildings Maximum 25% of permit fee based on Minnesota State Building Code 1300.0160 (5) Contractor License Verification Fee contractor applies for permit(s) $5.00 (6) Moving- Buildings 845 Moving Permit Fee $65.00 (7) Structure Demolition 400.00 — 400.09 (a) Commercial Demolition cost as per Building Permit Schedule with a minimum of $65.00 (b) Residential Demolition Dwelling One or two story Residential—Garage and lesser structure $65.00 $40.00 City of Richfield September 24, 2024 County of Hennepin State of Minnesota (8) Plumbing Permit 400.03 — 400.09 400.03 — 400.09 Residential Minimum Fee 2% of Total Job cost with a minimum of (includes one inspection) $5565.00 Each additional inspection $5565.00 (9) Plumbing Permit 400.03 — 400.09 400.03 — 400.09 Commercial/Industrial/M ulti-family Based on Total Job cost 2% of Estimated Job cost with a minimum of(includes one inspection) $65.00 Each additional inspection $65.00 (10) Electrical Permit 400.03 — 400.09 400.03 — 400.09 Residential (a) Minimum Fee which includes one inspection $55.00 (b) Each additional Inspection $55.00 (c) Complete Wiring Fee: Single-family Dwelling and each dwelling unit of a two family dwelling and includes not more than three inspections. $175.00 (d) New Service—up to 200 amps $100.00 (e) Temporary Service— (for construction) $55.00 (f) Sub Panel $55.00 (g) Installation, addition alteration, or repair of each circuit or feeder $10.00 (h) Swimming pool or exterior hot tub $55.00 (11) Electrical Permit Commercia l (12) 400.03 — 400.09 400.03 — 400.09 Commercial, Industrial and multiple dwellings(more than two units) and Technology systems: $55.00 City of Richfield September 24, 2024 County of Hennepin State of Minnesota Electrical Permit Signs Minimum Fee which includes one inspection Each additional inspection $55.00 (a) Based on total job cost - 2% of estimated job cost with a minimum of - Over $50,000 ? Fee/$1,000.00 plus 1% of cost over $50,000.00 $55.00 (b) Traffic Signals: Per Intersection $185.00 (c) Fire Alarm: Based on ¾% of cost of electrical job to customer with a minimum of $55.00 (d) Carnivals, festivals and similar events plus $35.00 for each service on generator $110.00 (13) Solar Photovoltai c System Rating* Based on 2% of cost of electrical job to customer with a minimum of (separate electrical permit required for signs) 400.03 — 400.09 0—5,000 watts $65.00 5,001—10,000 watts $150.00 10,001—20,000 watts $200.00 20,001—30,000 watts $250.00 30,001—40,000 watts $300.00 (14) Residential Heating, Ventilating, Air Conditionin g and Refrigeratio n Commercia l Heating, Ventilating, Air 400.03 — 400.09 Central Systems and Additions, Alterations and Repairs 1½% estimated cost with a minimum of (Includes one inspection) $5565.00 City of Richfield September 24, 2024 County of Hennepin State of Minnesota Conditionin g and Refrigeratio n Each additional inspection Central Systems and Additions, Alterations and Repairs 1½% estimated cost with a minimum of $5565.00 $65.00 (15) Sign Installation 415.01 — 415.11 (a) Temporary sign permit (b) Permanent sign (any size) Building permit is required for sign support structures fees based on building permit fee schedule $5565.00 $125.00 (16) Temporary Certificate of Occupancy 400 A temporary Certificate of Occupancy may be issued before completion of the entire work covered by the permit, provided the Chief Building Official deems that the building is safe to occupy $200.00 Plus a letter of credit or cash escrow equal to 125% of the remaining City Code requirements ZONING, LAND USE AND RELATED CHARGES Type of Permit or License Section Requiring Description Fee (1) Planned Unit Development 542 (a) $1,000 plus $5/$1,000 of project value (construction cost) up to a maximum fee of $5,000.00 (b) Major PUD Plan Amendment— $1,000 plus $5/$1,000 of project value (construction cost) up to a maximum fee of $5,000.00 (c) Minor PUD Plan Amendment $400.00 (2) Site Plan Review 547 (a) $500 plus $5/$1,000 of project value (construction cost) to a maximum fee of $3,500.00 City of Richfield September 24, 2024 County of Hennepin State of Minnesota (b) Major amendment—$500 plus $5/$1,000 of project value (construction cost) to a maximum fee of $3,500.00 (c) Minor amendment $350.00 (3) Variance 547 Residential $350.00 Non Residential $500.00 Variance Appeal Residential and Non Residential $350.00 (4) Conditional Use Permit 547 (a) $500 + $5/$1,000 of project value (construction cost) up to a maximum fee of $3,500.00 (b) Major amendment—$500 + $5/$1,000 of project value (construction cost) up to a maximum fee of $3,500.00 (c) Minor amendment $350.00 (5) Interim Use Permit 547 $500 1,000 plus $100/year monitoring fee up to a maximum fee of $1,0001,500.00 (6) *Zoning District or Code Text Change 547 $1,0002,000.00 (7) *Subdivision Approval 500.01— 500.05 $500.00 Subdivision Waiver 500.05- Subd. 2 $350.00 (8) Street/Easement Vacation 820/State Statute $5001,000.00 (9) Appeal to Board of Adj. & Appeals 547 $350.00 (10) Special Request to City Council $350.00 (11) Zoning Compliance Letter $65.75.00 (12) Comprehensive Plan Amend. $1,000.00 (13) Plats* 500 Preliminary/Final Plat $775.00 (14) Sketch Plan Review $350.00 (15) Extension Extension of a Land Use Approval (rezoning, site plan approval, conditional use permit, variance, etc.) beyond its original approval period $250.00 (16) Escrow Administration Fee $50100.00 City of Richfield September 24, 2024 County of Hennepin State of Minnesota (17) Special Exception Review for Fences or Walls 509.15 Subd.13 A special fence exception may be issued per the restrictions of Section 509.15 for corner lots or through lots. $250.00 (18) Public Tree Planting Fund 544.03 Subd.8 For the planting of trees in public parks or public boulevards. $160.00 per caliper inch. *Any additional expenses incurred by the City in the course of processing a request will be charged to the applicant. FIRE SERVICES FEES Type of Permit or License Section Requiring Description Fee (6) Fire Extinguishing System Permit Based on Building Permit fee schedule with a minimum of: Plan review fee: 65% of building permit fee, except no fee for the following: (a) no charge for valuation of $1,000 or less $50.00 (7) Fire Alarm Systems Based on Building Permit fee schedule with a minimum of: Plan review fee: 65% of building permit fee, except no fee for the following: (a) No charge for valuation of $1,000 or less $50.00 (8) Flammable or Combustible Liquid or Gas Storage Tanks and Piping Tanks (installation or modification) $150.00 Installation or alteration of piping Each unit or dispenser $50.00 Underground Tank Removal $100.00/Tank MISCELLANEOUS FEES Type of Permit or License Section Requiring Description Fee (3) Antenna Commercial Wireless Telecommunication Service (CWTS) 425 & 544 (a) CWTS antenna permit application fee $100.00 (b) Antenna permit fee for additional antennas added to an existing antenna location or replacement of existing antennas at a location $35.00 City of Richfield September 24,2024 County of Hennepin State of Minnesota RESOLUTION NO. 2024-XXXXX Motion: Second: AN ORDINANCE AMENDING APPENDIX D TO THE RICHFIELD CITY CODE; ESTABLISHING A FEE SCHEDULE FOR CERTAIN PERMITS AND APPLICATIONS WHEREAS, the City of Richfield has adopted the above referenced ordinance; and WHEREAS, the verbatim text of the ordinance is cumbersome, and the expense of publication of the complete text is not justified. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Richfield that the following summary is hereby approved for official publication: SUMMARY PUBLICATION TRANSITORY ORDINANCE NO. 19-XX AN ORDINANCE AMENDING APPENDIX D TO THE RICHFIELD CITY CODE; ESTABLISHING A FEE SCHEDULE FOR CERTAIN PERMITS AND APPLICATIONS This summary of the ordinance is published pursuant to Section 3.12 of the Richfield City Charter. The purpose of the ordinance is to amend to Richfield City Code Appendix D (Fee Schedule) related to building, planning, and zoning fees to ensure the costs of issuance for fees and permits reflect the staff time and costs related to performing the services associated with those fees. Copies of the ordinance are available for public inspection in the City Clerk’s office during normal business hours or upon request by calling the City Clerk’s office at (612) 861- 9739. Adopted by the City Council of the City of Richfield, Minnesota on this 24th day of September 2024. VOTING AYE VOTING NAY Supple, Mary Supple, Mary Christensen, Sharon Christensen, Sharon Hayford O’Leary, Sean Hayford O’Leary, Sean Trautmann, Simon Trautmann, Simon Whalen, Ben Whalen, Ben Mary B. Supple, Mayor ATTEST:. Michelle Friedrich, City Clerk AGENDA SECTION:CONSENT CALENDAR AGENDA ITEM #4.B. STAFF REPORT NO. 113 CITY COUNCIL MEETING 9/10/2024 REPORT PREPARED BY:Julie Urban, Assistant Community Development Director DEPARTMENT DIRECTOR REVIEW:Melissa Poehlman, Community Development Director 8/29/2024 OTHER DEPARTMENT REVIEW: CITY MANAGER REVIEW: Katie Rodriguez, City Manager 9/4/2024 ITEM FOR COUNCIL CONSIDERATION: Consider a resolution approving the 2024 Revised and 2025 Budget for the Affordable Housing Trust Fund. EXECUTIVE SUMMARY: On May 26, 2020, the City established an Affordable Housing Trust Fund (Trust Fund) to support the preservation and creation of affordable housing in the City. Through its Trust Fund, the City can support the rehabilitation and preservation of existing affordable housing, promote the development of additional affordable housing, and assist individuals with rental and down payment assistance. The City's Housing and Redevelopment Authority (HRA) administers the Trust Fund on behalf of the City. The 2024 Revised Budget provides funding for the following affordable housing programs: $180,000 for down payment assistance through the HRA's First-Time Homebuyer Program, which serves households earning up to 80% of the Area Median Income (AMI), and $240,000 for the New Home Program, which provides affordable homeownership opportunities for households earning up to 80% of the AMI. The 2025 Proposed Budget for the Trust Fund provides funding for the following affordable housing efforts: $240,000 for the New Home Program, and $985,000 for development grants to affordable housing projects. Funding for the Trust Fund in the 2024 Revised and 2025 Budget is provided by proceeds from the sale of HRA property and pooled tax increment. The Revised 2024 and 2025 Budgets were approved by the HRA on August 19, 2024. RECOMMENDED ACTION: By motion: Adopt a resolution approving the 2024 Revised Budget and 2025 Budget for the Affordable Housing Trust Fund. BASIS OF RECOMMENDATION: A.HISTORICAL CONTEXT In 2017, the State Legislature approved legislation to allow cities to establish housing trust funds in order to facilitate affordable housing efforts in the State. On May 26, 2020, the City Council adopted an ordinance establishing an Affordable Housing Trust Fund. B.EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS The Trust Fund's mission helps to achieve the desired outcome of the City's Strategic Plan to maintain Richfield as an affordable place to live. The HRA's First-time Homebuyer Program aims to provide homeownership and wealth-building opportunities to underserved communities that have been historically left out of the homeownership market. Assistance to affordable housing developments expands housing opportunities for a wide-range of residents, including those with lower incomes, disabilities, and those who are Black, Indigenous, and People of Color (BIPOC). C.POLICIES (resolutions, ordinances, regulations, statutes, exc): Minnesota Statutes 462C.16 establishes the authority for cities to create local housing trust funds. The City's Comprehensive Plan supports the preservation, maintenance and diversification of the City's housing stock and the provision of housing that meets the diverse needs of all its residents. The HRA works to implement the Comprehensive Plan by administering a variety of housing programs for people who own their homes and who rent their homes as well as for residents across the income spectrum. D.CRITICAL TIMING ISSUES: The Trust Fund budget should be approved before January 1, 2025. The timing of the expenditures of the development grants is dependent upon the projects, Penn Station and Aster Commons, receiving financing from the State of Minnesota. E.FINANCIAL IMPACT: Revenues to the Trust Fund are HRA property sales proceeds and pooled tax increment. To fully fund the development grants, the HRA anticipates transferring funds to the Trust Fund from the Temporary Spending Plan, which the HRA adopted in 2022. Because the sales proceeds are nearly spent and pooled tax increment cannot be used for down payment assistance, funding for the First-time Homebuyer Program is gradually being shifted to Community Development Block Grant (CDBG) funds and Local Affordable Housing Aid (LAHA). Both revenue sources are reflected in separate funds within the HRA's budget. A small amount of funding is budgeted for administrative costs ($1,000). The HRA covers the remainder of the administrative costs. F.LEGAL CONSIDERATION: City ordinance establishing the Trust Fund requires that the budget be approved by the City Council. The Trust Fund is administered by the HRA. The Trust Fund can support affordable housing to persons of very low, low, and moderate income. All of the proposed programs meet this definition. Homeownership programs for moderate income households (up to 120% AMI) must be approved a super majority of the City Council. None of the proposed uses require this level of approval. ALTERNATIVE RECOMMENDATION(S): Decide not to approve the Trust Fund budget. PRINCIPAL PARTIES EXPECTED AT MEETING: N/A ATTACHMENTS: Description Type Resolution Resolution Letter Budget Backup Material AHTF 2023 Annual Report Backup Material RESOLUTION NO. _____ RESOLUTION ADOPTING AN AFFORDABLE HOUSING TRUST FUND BUDGET FOR THE YEAR 2024 REVISED AND 2025 WHEREAS, authorized by Minnesota State Statutes 462C.16, the City approved by ordinance the creation of an Affordable Housing Trust Fund on May 26, 2020, and WHEREAS, the ordinance requires the City Council to approve an annual budget for the Affordable Housing Trust Fund. NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield as follows: 1. The 2024 Revised Budget for the Affordable Housing Trust Fund is hereby approved and adopted with appropriations as follows:  $180,000 to the Housing and Redevelopment Authority’s (HRA) First-Time Homebuyer Program, and  $240,000 for the HRA’s New Home Program. 2. The 2025 Budget for the Affordable Housing Trust Fund is hereby approved and adopted with appropriations as follows:  $240,000 for the HRA’s New Home Program, and  $985,000 for development grants to affordable housing projects. Adopted by the City Council of the City of Richfield, Minnesota this 10th day of September, 2024. Mary B Supple, Mayor ATTEST: Michelle Friedrich, City Clerk AFFORDABLE HOUSING TRUST FUND MISSION STATEMENT To fund the rehabilitation and preservation of existing affordable housing, promote the development of additional affordable housing, and assist individuals with rental and down payment assistance. FUND FOCUS The City created an Affordable Housing Trust Fund in 2020 to facilitate the creation and preservation of affordable housing in the community. The Trust Fund can provide loans and grants to housing developers to create new affordable rental and owner-occupied housing; for the rehabilitation and preservation of existing multi-family residential rental housing; and can offer rental and homeownership assistance to persons of very low, low, and moderate income. 2024 HIGHLIGHTS x First-time homebuyers continue to utilize the HRA’s First-Time Homebuyer Program. Typically the HRA issues 10-11 loans annually; in 2024, 11 loans were issued by the end of June. Additional funding in the 2024 Revised Budget provides for 4-5 more loans. x Funding is provided for three to four down payment assistance loans for low-income buyers of new manufactured homes in the Woodlawn Terrace manufactured home community. x Funding is provided for the West Hennepin Affordable Housing Land Trust (WHAHLT) to purchase and remodel 2-3 homes and sell them to homebuyers earning less than 80 percent of the Area Median Income. The land trust model provides 99 years of affordability. 2025 FUND GOALS x Provide funding for the purchase and rehabilitation of two to three homes by the West Hennepin Affordable Housing Land Trust (WHAHLT). The homes will be sold to income-qualified homebuyers using the land trust model. (City Council Priority/Outcome 2c) x Provide up to $500,000 in financial assistance to Aster Commons, a 38-unit supportive housing development proposed for 6613-25 Portland Avenue, in the form of a development grant. (City Council Priority/Outcome 2b and c, and 3c) 47  Provide up to $485,000 in financial assistance to Penn Station, a 40-unit affordable housing development proposed for 6501-25 Penn Avenue, in the form of a development grant. FUND EXPENDITURE COMMENT  The budget for the Affordable Housing Trust Fund must also be approved by the City Council.  At the end of 2022, $750,000 in pooled tax increment was transferred to the Trust Fund. Because the State Auditor does not allow co-mingling of tax increment with other funds, separate codes are established for these funds; however all funds are shown in these worksheets for simplicity. Allowable use of the special legislation funds are also more restrictive (e.g., no down payment or rental assistance), as defined by special legislation approved by the State Legislature in 2021.  In order to fund development grants, $985,000 will be transferred from the Temporary Spending Plan funds to the Special Legislation Funds. 48 AFFORDABLE HOUSING TRUSTFUND: DETAIL REVENUES BY FUND CLASSIFICATIONS BUDGET 2025 REVISED 2024 BUDGET 2024 ACTUAL 2023 Intergovernmental Revenues 4214 100,000 --- CDBG Grants $$$$ --- 100,000Intergovernmental Revenues Total $$$$ Miscellaneous Revenues 4607 40,466 --- Investment Earnings $$$$ 4609 2,050 -- - Change in Fair Value 4622 10 50 - - Contributions & Donations 50 -- 42,526Miscellaneous Revenues Total $$$$ Other Financing Sources 8051 --- 985,000Operating Transfers In $$$$ -- 985,000-Other Financing Sources Total $$$$ AFFORDABLE HOUSING TRUST TOTAL 50 - 985,000142,526$$$$ 4949 DETAIL EXPENDITURES BY BUSINESS UNIT CLASSIFICATIONS BUDGET 2025 REVISED 2024 BUDGET 2024 ACTUAL 2023 AFFORDABLE HOUSING TRUSTFUND: Community DevelopmentDEPARTMENT: Affordable Housing Trust - 91530BUSINESS UNIT: Other Services & Charges 6103 567 1,000 1,000 1,000Professional Services -General $$$$ 6511 215,000 180,000 180,000 985,000Rehab Loan Program 181,000 181,000 986,000215,567Other Services & ChargesTotal $$ $$ Capital Outlay 7110 100,000 - 240,000 240,000Land Purchases $$$$ - 240,000 240,000100,000Capital Outlay Total $$ $$ 181,000 421,000 1,226,000315,567Affordable Housing TrustTOTAL $$ $$ 505050 BUDGET SUMMARY - AFFORDABLE HOUSING TRUST FUND 2023 2024 2025 AVAILABLE FOR APPROPRIATION Actual Budget Revised Budget FUND BALANCE - JANUARY 1 1,158,196$ 185,928$ 985,155$ 564,155$ Revenues: Intergovernmental Revenues - CDBG Grant 100,000 - - - Miscellaneous Revenues - Interest & other 42,526 50 - - Total Revenues 142,526 50 - - Expenditures: Other Services and Charges 215,567 181,000 181,000 986,000 Capital Outlay 100,000 - 240,000 240,000 Total Expenditures 315,567 181,000 421,000 1,226,000 Excess (Deficiency) of Revenues Over Expenditures (173,041) (180,950) (421,000) (1,226,000) Transfers From (To) Other Funds: General Fund - - - - Capital Reservel Fund - - - - Special Revenue Fund - - 985,000 Net Transfers - - - 985,000 FUND BALANCE - DECEMBER 31 985,155$ 4,978$ 564,155$ 323,155$ 46 HOUSEHOLDS TO BE SERVED: 38 $500,000 from the Trust Fund was committed to Aster Commons, a 38-unit affordable housing project to be developed at 6613 Portland Avenue. The project will serve neuro-diverse young adults in need of affordable housing and supportive services. The project is being developed by Beacon Interfaith Housing Collaborative. AGENDA SECTION:CONSENT CALENDAR AGENDA ITEM #4.C. STAFF REPORT NO. 114 CITY COUNCIL MEETING 9/10/2024 REPORT PREPARED BY:Rachel Lindholm, Sustainability Coordinator DEPARTMENT DIRECTOR REVIEW:Kristin Asher, Public Works 9/3/2024 OTHER DEPARTMENT REVIEW:Chris Link, Deputy Public Works Director CITY MANAGER REVIEW: Katie Rodriguez, City Manager 9/4/2024 ITEM FOR COUNCIL CONSIDERATION: Consider the approval of a resolution authorizing a grant agreement with American Forests in the amount of $498,075.00 as part of the United States Department of Agriculture (USDA) Forest Service's Urban and Community Forestry grant program. EXECUTIVE SUMMARY: In 2023, the USDA's Forest Service selected 385 grant proposals from 842 applications and awarded more than $1 billion in IRA funds to entities "working to increase equitable access to trees and green spaces, and the many benefits they provide". City staff were notified on 10/12/23 of Richfield's proposal acceptance and letter of intent to award funding. The proposal outlined a project which seeks to address the loss of urban canopy due to the prevalence of Emerald Ash Borer and subsequent tree removals. This work will help strengthen and replant canopy in the right of way in identified census tracts, focusing on where trees have not been planted or aren’t on existing planting schedules. Staff estimate that 185 diseased ash trees will be removed (with stump grinding) and 545 trees will be planted, including replacements of removals and in other identified areas. This work will be contracted out and not completed by city staff. The goal is to have removals completed by Spring 2025 and planting completed by the end of 2025. Project schedule could be impacted by seasonal events or by requirements that need to be met per the grant agreement (i.e. extra reporting). RECOMMENDED ACTION: By motion: Approve the resolution authorizing a grant agreement with American Forests in the amount of $498,075.00 as part of the United States Department of Agriculture (USDA) Forest Service's Urban and Community Forestry grant program. BASIS OF RECOMMENDATION: A.HISTORICAL CONTEXT The City of Richfield values its urban canopy and dense tree cover throughout the City. Since EAB was first discovered in Richfield in 2016, it has continued to spread through the entire City. We have seen the number of infected Ash trees increase exponentially, overwhelming our staff and resources. While Richfield has spent the last decade diversifying our boulevard and park tree populations, many mature Ash remain in the City and have been impacted by EAB. In an effort to increase the resiliency of our urban forest, this grant program will allow Richfield to ramp-up our Ash tree removal and replacement efforts well beyond what we are able to handle with our current staff and resources. Our project under this grant agreement includes removal and replacement of susceptible ash trees. These procedures are part of the City of Richfield’s Emerald Ash Borer plan which was started in 2012. Richfield’s EAB Management Plan included: - Removal of non-desirable ash trees - Chemical treatment of other ash trees - Replacement of trees that have been removed The goal of the management plan is to protect as much of the ash tree canopy as possible with knowing that all ash trees will need to be removed at some point. Another goal of the program was to manage costs to remain within current budget amounts for as long as possible. The plan was established with community support and based on information from MN Department of Agriculture and MN Department of Natural Resources. The plan was also adopted by Richfield’s City Council. B.EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS Equity: This project works to increase equitable access to urban tree canopy by focusing all planting efforts on the southeast corner of the city in the census tracts identified by CEJST as disadvantaged communities, contributing to the goals of Justice40. This also means associated human health, environmental and economic benefits will also benefit said communities directly. Residents will not have to pay for costs associated with planting trees on their own or waiting longer on the current wait list to receive a free tree. This project will also improve resilience to climate change, pests, storm/extreme heat events through best management and maintenance practices. This project is focused on census tracts 27053024802 and 27053024903, identified as disadvantaged communities by the Climate and Economic Justice Screening Tool (CEJST), in part because of their percentile rankings denoting low income and low median income, low life expectancy, and high traffic proximity and volume. All trees identified for removal are ash trees susceptible to Emerald Ash Borer and all locations identified for planting are in these tracts. Strategic Plan: This grant award connects with the pillars of operational excellence, sustainable infrastructure, high-quality workforce, and equity and inclusion. This award provides the financial resources for the City to hire out important forestry work, alleviating demands on city staff and ensuring that these efforts can continue and expand. C.POLICIES (resolutions, ordinances, regulations, statutes, exc): The grant agreement outlines required federal policies that the City will need to comply with. Minnesota Statutes, section 465.03 requires every acceptance of a grant or devise of real personal property on terms prescribed by the donor be made by resolution by a two-thirds majority of the City Council. D.CRITICAL TIMING ISSUES: Staff cannot start executing this grant until it is approved and signed. Forestry work is seasonally dependent so we need to start as soon as possible. E.FINANCIAL IMPACT: There is no match required for this grant so it will not impact the budget other than receiving funds and then paying them out to contractors. Funding for this project provided by the Inflation Reduction Act and the USDA Forest Service, Urban and Community Forestry Program in partnership with American Forests. F.LEGAL CONSIDERATION: The City Attorney's Office has reviewed the grant agreements between the City and American Forests and between American Forests and the USDA. ALTERNATIVE RECOMMENDATION(S): None PRINCIPAL PARTIES EXPECTED AT MEETING: None ATTACHMENTS: Description Type Grant Acceptance Resolution Resolution Letter Subaward Grant Agreement Contract/Agreement Project Narrative Backup Material Census Tracts Map Backup Material RESOLUTION NO. RESOLUTION AUTHORIZING THE CITY OF RICHFIELD TO ENTER INTO A GRANT AGREEMENT AND ACCEPT GRANT FUNDS FROM AMERICAN FORESTS WHEREAS, the City Council of the City of Richfield is the official governing body of the City of Richfield, Minnesota; and WHEREAS, in 2023, the United States Department of Agriculture (USDA) Forest Service's Urban and Community Forestry grant program solicited applications from eligible entities nationwide to fund projects that increase equitable access to trees and nature, and the benefits they provide for cooling city streets, improving air quality, and promoting food security, public health and safety; and WHEREAS, the grant program made over $1 billion available to applicants to fund eligible projects; and WHEREAS, Public Works staff submitted a project proposal requesting $498,075.00 in grant funds to remove and replace Ash trees in the public right-of-way; and WHEREAS, on October 12, 2023, staff were made aware that their project proposal was successful and would be funded in the requested amount of $498,075.00; and WHEREAS, the Forest Service informed Richfield that their grant manager/passthrough partner would be American Forests; and WHEREAS, with the grant funds, 185 Ash trees on City boulevards will be removed and 545 trees will be planted, which will lead to a more resilient urban forest in Richfield; and WHEREAS, Minnesota statute 465.03 requires every acceptance of a grant or devise of real personal property on terms prescribed by the donor be made by resolution by a two-thirds majority of the City Council. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield, Minnesota that the Mayor and City Manager are hereby authorized to enter into the grant agreement with American Forests and to accept the grant funds for and on behalf of the City or Richfield. Adopted by the City Council of the City of Richfield, Minnesota this 10th day of September, 2024. Mary Supple, Mayor ATTEST: Michelle Friedrich, City Clerk 1 SUBAWARD GRANT AGREEMENT BETWEEN AMERICAN FORESTS AND CITY OF RICHFIELD, MINNESOTA FOR INFLATION REDUCTION ACT URBAN & COMMUNITY FORESTRY INITIATIVE This Subaward Agreement (“Subaward” or “Agreement”) No. 24-CA-11132544-010-011 is entered into the [ ], by and between American Forests (“American Forests” or “AF”) and City of Richfield, MN (“Subrecipient). American Forests and Subrecipient may be referred individually as “Party” or collectively as the “Parties.” Name: City of Richfield, Minnesota (Subrecipient”) Type of entity [e.g., government, corporation, LLC, sole proprietor]: government State of incorporation, partnership, or formation: Minnesota All Notices: 1220 L Street, NW Suite 750, Washington, DC 20005 Attn: Meliha Aljabar All Notices: Street: 6700 Portland Ave City & State: Richfield, MN Zip: 55423-2560 Attn: Katie Rodriguez Subrecipient Unique Entity Identifier: YGMFCE7YAHJ7 Federal awarding agency: U.S. Department of Agriculture, Forest Service Federal Award Identification Number (FAIN): 24-CA-11132544-010 Federal Assistance Listing 10.727, Inflation Reduction Act Urban & Community Forestry Federal Award date: 01/10/2024 Project Title: Increasing Urban Tree Canopy in Southeast Richfield, MN 2 Project description: The City of Richfield is proposing to increase urban tree canopy through a right-of-way planting project and by removing and replanting trees in the right-of-way affected by Emerald Ash Borer. This project will be located in the southeast corner of the city, specifically census tracts 27053024802 and 27053024903, both identified as disadvantaged areas through CEJST. Key partners include a contractor that will remove infected trees, grind stumps, and plant new trees. 185 removals are expected and 545 new trees are expected to be planted. Subaward Period of Performance Start and End Date: [ ] – 12/31/2026 Subaward Budget Period Start and End Date [ ] - 12/31/2026 Total amount of federal funds $498,075.00 RECITALS American Forests has been selected for the award of a federal financial assistance award from the United States Department of Agriculture, Forest Service (“Forest Service” or “the Agency”), in support of a project entitled Fostering Community-Led Action to Advance Tree Equity (“the Project”) for which American Forests will serve as a pass-through entity for subawards. The Agency has identified a project narrative and budget submitted by Subrecipient to the Agency to be of interest with regard to the Project and recommended that American Forests engage Subrecipient to perform such effort. American Forests desires Subrecipient to perform certain work within the scope of the Project described above and as further described in Exhibit 1 hereto under the terms and conditions set forth below, and Subrecipient has expressed a willingness to perform such work. NOW THEREFORE, American Forests hereby awards a cost reimbursable subaward to Subrecipient on the following agreed terms and conditions. ARTICLE I – DEFINITIONS A. As used in this document, the words and phrases set forth below shall have the following meanings: 1. “Forest Service” or “the Agency” means the U.S. Department of Agriculture (“USDA”), Forest Service. 2. “Grant” and “Grant Agreement” means Cooperative Agreement No. 24-CA-11132544-010, between the Agency and American Forests, including all attachments, documents incorporated by reference, and amendments thereto. 3. “Recipient” means American Forests. 4. “Subrecipient” means an entity receiving a subaward from a pass-through entity (“recipient”) to carry out a part of the ”Grant”. 5. “Project” is defined as the project described in the Grant Agreement and Subrecipient’s project narrative. 6. “Project Activities” means all activities conducted by Subrecipient in furtherance of the Grant Purposes as part of the Project. 7. “Purposes” means the specific goals and purposes of this Project set forth in the Grant Agreement. 8. “Subgrant” means the funds granted to Subrecipient by American Forests and the restrictions on its use required by the Grant and Subgrant Agreements. 9. “Subaward Grant Agreement,” “Subaward Agreement,” and “this Agreement” means this agreement between American Forests and Subrecipient. 10. “Budget” means the Subrecipient’s budget for the Project as approved by the Agency. The term “days” refers to calendar days unless otherwise specified. B. All other capitalized terms shall have the definitions assigned to them in this Agreement or in 2 CFR Chapter 1, Part 200, section 200.1 et seq. unless it is clear from the usage that the Parties intended to assign a commonly used definition to such terms. C. This award is subject to the 2 CFR Part 20, Subparts A through F, as adopted and supplemented by the USDA in 2 CFR Part 400. ARTICLE II – INCORPORATION OF GRANT AGREEMENT American Forests makes this subgrant to Subrecipient subject to the Grant Agreement, which is incorporated by reference. Subrecipient acknowledges that it is a “subrecipient” under the Grant and agrees to comply with all provisions identified in the Grant as being applicable to, or required to be flowed down to, a “subrecipient” or “Non-Federal Entity”, as applicable under the Grant and applicable regulations. ARTICLE III – AMOUNT AND TERM A. AWARD AMOUNT: This award is in the amount of $498,075 subject to the requirement that Subrecipient incur and invoice for allowable costs as specified herein. B. TERM: This subaward shall be effective upon full execution. Subgrant funds may not be used to support activities conducted prior to the Effective Date. This Subgrant Agreement is effective through 12/31/2026, or until terminated, whichever occurs first. C. ALLOWABLE COSTS: Subrecipient shall not submit any costs that are unallowable under federal regulations (per 2 CFR Part 200, Subpart E) or this Agreement for reimbursement. Costs that exceed the amount specified in subsection A above, are outside the Term specified in subsection B (except as expressly agreed otherwise by American Forests), or that lie outside the scope of the activities in Exhibits 1 and 2 are unallowable. ARTICLE IV – PAYMENT A. PAYMENT DISBURSEMENTS: American Forests shall reimburse Subrecipient for the costs of Project Activities in accordance with the Budget. Such payments shall not exceed the amounts identified in the Budget for each line item by more than 10% without the prior written consent of American Forests. Indirect cost rates shall remain fixed throughout the term of this award based on the Budget. American Forests reserves the right to request and receive supporting documentation to substantiate payment requests and the amounts claimed, which shall be exercised in its sole discretion. Payment of invoices is contingent upon a determination by American Forests that the amounts being invoiced are allowable, allocable, and reasonable under applicable regulations. Notwithstanding the foregoing, Subrecipient must promptly refund any excess payments received from American Forests, including any costs determined unallowable by the Agency and/or through subsequent audit or investigation. B. USE OF GRANT FUNDS: Subrecipient will use the Subgrant funds solely for the Purposes of this Agreement. Any interest earned by Subrecipient on the Subgrant funds shall be used by Subrecipient to cover Project Activities. Subrecipient will repay to American Forests any portion of the amount disbursed to Subrecipient that is not used for these Purposes. C. MATCH WAIVER: The Urban & Community authority requires a 1:1 match, however match has been waived under the provision of Public Law 117-169 (Inflation Reduction Act) and based on assurance that 100% of the work and funding will benefit disadvantaged communities, as defined by the tools and guidance provided by the Forest Service as of the date of signing this award. In the event the Forest Service updates or revises its tools or guidance, the Parties shall confer as to whether all of the work and funding still will benefit qualifying disadvantaged communities. Subrecipient further shall certify in its bi-annual reports that the communities served qualify as “disadvantaged” in accordance with Forest Service tools and guidance. In the event the communities served no longer qualify as “disadvantaged” per such tools and guidance, this award may be terminated by American Forests. ARTICLE V – REPORTING A. SUBGRANT REPORTS: Subrecipient agrees to provide American Forests with all documentation, reports, and other information necessary for American Forests to complete in a timely manner all reports required by the Grant as well as such other information reasonably requested in writing by American Forests, as further described in Exhibit 3. B. NARRATIVE REPORTS: The narrative report shall describe accomplishments as of the date of the report, outlining activities undertaken, strategic choices that were made as a result of the Subgrant, and achievement of Subgrant purposes. C. FINANCIAL REPORTS: The financial report shall reflect the expenditures of the Subgrant funds, and any income earned thereon, in accordance with the Budget, as of the end of the reporting period and cumulative across the Subgrant term. The reports also should address actual spending at the level of detail in the Budget, and an explanation of any variances. D. SUBGRANT REPORT FOLLOW-UP: American Forests or the Agency may request conferences or meetings with Subrecipient to discuss details of the Subgrant Report(s), and American Forests or the Agency may require additional supporting documentation or clarifications to the Subgrant Report prior to the release of the next scheduled payment. Upon completion of the Subgrant, Subrecipient will submit a Final Subgrant Report. E. COMMUNICATIONS WITH AGENCY: Subrecipient acknowledges that communications with the Agency should flow through American Forests. If Subrecipient and the Agency communicate directly with one another, Subrecipient will promptly notify American Forests of any substantive matters discussed which might impact American Forests’ administration of this Agreement or the Project. F. REPORTING OF FIRST TIER SUBAWARDS: In accordance with Exhibit 6, Subrecipient agrees to provide American Forests with all information necessary for American Forests to complete in a timely manner all required reports, including the names and total compensation of each of Subrecipient’s five most highly compensated executives for the preceding completed fiscal year, or documentation that Subrecipient is exempt from such reporting. ARTICLE VI – MONITORING A. American Forests may conduct monitoring to ensure Subrecipient capacity to effectively manage the project and administer the award funds, as well as to ensure compliance with federal regulations and all provisions of this Agreement and to verify that Subrecipient has in place effective internal controls to achieve these goals. B. Monitoring will include an assessment of Subrecipient’s performance against the goals and performance standards of the Grant and as required herein. C. As a part of its ongoing monitoring process, American Forests will evaluate Subrecipient’s progress and project goal attainment based on the required reports prepared by Subrecipient, as well as through regular meetings and/or ongoing discussions with Subrecipient project staff. American Forests reserves the right to request and conduct an onsite visit as part of its monitoring plan, and will provide reasonable advance notice of such a visit. D. American Forests may require additional monitoring and evaluation measures to ensure that Subrecipient fulfills the identified project goals and objectives and/or addresses any findings revealed during monitoring. Subrecipient shall adhere to any monitoring and evaluation plans developed and specifically required by American Forests as a result of monitoring activities. ARTICLE VII – AUDITS AND MAINTENANCE OF RECORDS A. BOOKS AND RECORDS: Recordkeeping is subject to 2 CFR 200.334 – 200.338. Subrecipient shall maintain all books, documents, papers, accounting records and other evidence pertaining to this Agreement in sufficient detail to substantiate all expenditures related to this award. Subrecipient shall maintain these books and records for a period of at least three (3) years from final payment from American Forests. B. AUDIT: Subrecipient is responsible for complying with the audit requirements in 2 CFR 200, Subpart Fand the Subrecipient shall furnish a copy of any such audit report to American Forests within 180 days of Subrecipient’s year-end. Subrecipient shall give American Forests, the United States Comptroller General and the Agency, through any authorized representative, access to and the right to examine all records, books, papers, or documents related to this Agreement (including the applicable records maintained by its contractors and sub-subrecipients) at any time. American Forests shall provide reasonable advance notice to Subrecipient in the event of its audit and shall undertake reasonable efforts to do so in the event of an audit by the Agency or its representative. Copies of requested documents shall be furnished at no cost to American Forests or the United States government representatives if requested. C. SINGLE AUDIT: In accordance with 2 CFR 200.501(a), non-federal entities that expend $750,000 or more in federal awards from all funding sources during their fiscal year, must have a Single Audit conducted in accordance with 2 CFR 200.514. If Subrecipient has received a Single Audit for the preceding year, a copy shall be provided. Subrecipient agrees to have such an audit conducted if applicable. As a condition of this award, Subrecipient shall annually certify if its organization has been subject to the Single Audit requirement according to the above citations. Subrecipient shall provide a copy of any required Single Audit reports to American Forests within 180 days of Subrecipient’s year-end. ARTICLE VIII – COMPLIANCE WITH LAWS A. APPLICABLE LAWS: Subrecipient shall comply with all applicable federal, state and local laws, rules, regulations, ordinances and applicable Agency guidance, and all provisions required thereby to be included herein are hereby incorporated by reference. B. PERMITS: Subrecipient warrants that it and its subrecipients and subcontractors, if any, shall obtain and maintain all required permits, licenses, registrations, and approvals, and shall comply with all health, safety, and environmental statutes, rules, or regulations in the performance of work activities for American Forests. C. INTERNAL CONTROLS: Subrecipient shall establish and maintain effective internal controls over this award per 2 CFR 200.303 that provides reasonable assurance that Subrecipient is managing the effort in compliance with Federal statutes, regulations, and the terms and conditions of the Grant. Subrecipient shall monitor its performance and take prompt action when it identifies any instances of noncompliance. ARTICLE IX SUBCONTRACTING AND SUBAWARDING A. APPROVAL REQUIRED. Subrecipient shall not issue any subcontracts or subawards under this Agreement without prior written approval from American Forests. Acceptance of a Budget that identifies specific subawards or subcontracts shall constitute such approval. B. PROCUREMENT: Subrecipient shall comply with all procurement requirements, standards, and procedures in 2 CFR 200.310 through 2 CFR 200.327. Subrecipient shall follow the Procurement Guidelines to be provided by American Forests, which are based on the referenced regulations. C. FURTHER FLOWDOWN: Subrecipient shall include in each lower-tier subaward or subcontract the appropriate flow-down clauses as required by this Subaward, the terms and conditions of the Grant, and 2 CFR Part 200, Appendix II. ARTICLE X – NONDISCRIMINATION A. NONDISCRIMINATION. Subrecipient shall not discriminate against any employee or applicant for employment relating to this Agreement with respect to the hire, tenure, terms, conditions or privileges of employment or any matter directly or indirectly related to employment, because of the employee or applicant's characteristic(s) protected by federal, state, or local law. B. EQUAL OPPORTUNITY. Subrecipient shall comply with Executive Order 11246, as amended and supplemented by regulations at 41 CFR Part 60 and Revised Order No. 4, the Vietnam-Era Veterans Readjustment Assistance Act of 1974, the Vocational Rehabilitation Act of 1973, and any other applicable federal and state anti-discrimination laws. C. PUBLICATION. Subrecipient shall include the following statement in any printed, audiovisual material, or electronic media for public distribution developed or printed with any Federal funding: “This institution is an equal opportunity provider.” ARTICLE XI - SUBRECIPIENT’S COVENANTS A. DISCLOSURES: Subrecipient agrees to disclose in writing to American Forests, in a timely manner: (1) any potential conflict of interest to the Agency or American Forests in accordance with Agency’s conflict of interest policy per 2 CFR 400.2; and (2) all violations of Federal criminal law involving fraud, bribery or gratuity violations potentially affecting the Grant. B. CERTIFICATION OF ELIGIBILITY: Subrecipient certifies that, to the best of its knowledge and belief, Subrecipient and its principals (referred to collectively in this Section as “Subrecipient Parties”): 1. are not presently debarred, suspended, proposed for debarment, or declared ineligible for the award of contracts by any government agency; 2. are not included on the Specially Designated Nationals and Blocked Persons lists maintained by the U.S. Treasury’s Office of Foreign Assets Control, the United Nations Security Council Consolidated List, or similar lists of proscribed entities identified as associated with terrorism, and (ii) will not engage in transactions with, or provide resource or support to, any such individuals or organizations or anyone else associated with terrorism; 3. are not a person or entity with whom transacting is prohibited by any trade embargo, economic sanction, or other prohibition of law or regulation; and 4. have not conducted, and will not conduct, their operations in violation of applicable Money Laundering Laws, including but not limited to, the U.S. Bank Secrecy Act and the money laundering statutes of any and all jurisdictions to which the Subrecipient Parties, or any one of them, is subject, and no action or inquiry concerning money laundering by or before any authority involving any Subrecipient Party is pending. 5. Will ensure that none of the funds, including supplies and services, received under this Agreement will be provided directly or indirectly (including through subawards or contracts) to a person or entity who is actively opposing the United States or coalition forces involved in a contingency operation in which members of the Armed Forces are actively engaged in hostilities. If Subrecipient becomes aware that it or any Subrecipient Party is subject to any of the above conditions during the Term of this award, Subrecipient must notify American Forests immediately. If American Forests determines that Subrecipient or any Subrecipient Party is subject to any of the above conditions, American Forests, may terminate this Agreement effective immediately, with no further obligation hereunder, including payment. C. INDEMNIFICATION: To the extent permitted by law, Subrecipient shall indemnify American Forests for all claims, actions, damages or other losses (including reasonable attorneys’ fees) (“Losses”) arising out of Subrecipient’s performance of this Agreement, except to the extent such Losses are caused by American Forests. D. INSURANCE: Subrecipient shall maintain the following insurance coverage during the term of this Agreement: 1. General Liability and Property Damage: Subrecipient shall carry general liability insurance having all major divisions of coverage including, but not limited to: Premises - Operations Products and Completed Operations Personal Injury Liability Contractual Liability The policy shall be on an occurrence form and limits shall not be less than: $1,000,000 Each Occurrence $2,000,000 General Aggregate $1,000,000 Products/Completed Operations Aggregate $1,000,000 Personal & Advertising Injury 2. Automotive Liability: Subrecipient shall carry automotive liability insurance covering all motor vehicles used by Subrecipient in connection with this Agreement. Coverage limits shall not be less than $500,000 combined single limit. 3. Workers Compensation: Subrecipient shall carry workers’ compensation insurance in accordance with the laws of the State in which the work is performed under this award. 4. Certificate: Subrecipient shall provide a certificate of insurance to American Forests within 30 days of the effective date of this Agreement and annually as requested. If Subrecipient is self- insured, Subrecipient shall provide written documentation verifying self-insured status. E. PROPERTY: If work is to be performed on private (nonpublic) property, Subrecipient shall (i) ensure that permission for any such work is obtained from the owner(s) of such property; and (ii) secure an agreement from such owner(s) to hold harmless American Forests and the USDA Forest Service from all claims, suits, or actions of every name, kind, and description, brought for, or on account of injuries to or death of any person, including any contractor or other party performing such work, or damage to any property of any kind whatsoever and to whomsoever belonging, or any sanctions, penalties, or claims of damages resulting from work being funded through this subaward. Subrecipient shall provide a copy of such agreement to American Forests upon request. ARTICLE XII – TITLE AND USE OF INTELLECTUAL PROPERTY A. NAMES, LOGOS, AND INSIGNIA: The names and logos of the Parties and the Forest Service may not be used for any purpose without the prior express written permission of their owners. Subrecipient shall seek Agency consent (through American Forests) prior to use of Forest Service insignia on any published media, such as a Web page, printed publication, or audiovisual production. Subrecipient shall acknowledge Forest Service support in any publications, audiovisuals, and electronic media developed as a result of this award in accordance with 2 CFR 415.2. B. RIGHTS: In performing the Grant Agreement and this Agreement, the Parties may produce documents, reports, data, studies, photographs, videos, maps, and the like, as well as product- specific documents (individually a “Work” and collectively “Works”). 1. Unless otherwise required by the Agency or agreed to by the Parties in writing, the copyright and other intellectual property rights in any such Work will belong to the Party that produces the Work. 2. American Forests shall enjoy a perpetual, irrevocable, worldwide, unlimited use, non- exclusive, royalty-free right and license to reproduce, publish, incorporate, and otherwise use, and to authorize others to use, the Works of Subrecipient for any purpose, including to publish the results of the efforts under this Subgrant Agreement. 3. The Federal government reserves a royalty-free, nonexclusive, and irrevocable right to reproduce, publish, incorporate, or otherwise use, and to authorize others to use the Works for federal government purposes. C. DISTRIBUTION: Except as set forth above, neither Party will publish or otherwise distribute the Work of the other Party without both the previous written consent of the other Party and crediting the other Party in such Work. D. USE OF PROPRIETARY INFORMATION: The Parties anticipate that to perform under this Agreement, it might be necessary for either Party to transfer to the other information of a proprietary nature. Proprietary information shall be clearly identified in writing at the time of disclosure. Any such information shall not be used, published or divulged to any governmental entity, individual, organization or corporation, in any manner or for whatever purpose, except through the Party’s previous written permission, which may be withheld by the respective Party at its sole discretion, or as required by law. Each Party will use reasonable efforts to protect the proprietary information of the other Party. ARTICLE XIII – CLOSE-OUT PROCEDURES Subrecipient shall submit a final financial report, a Disposition Request for any equipment purchased, and any other documentation required or requested by the Forest Service within forty- five (45) days of the conclusion of its work under this Agreement, prior to final payment hereunder. The final expense report must include documentation of match if applicable. Final payment may be withheld until these requirements have been fulfilled and approved by American Forests. ARTICLE XIV– AMENDMENT AND TERMINATION OF AGREEMENT A. SUBGRANT MODIFICATIONS: This Agreement, including all Exhibits, embodies the entire and complete agreement and understanding between the Parties. This Agreement may not be amended or modified, except as agreed to by the Parties in writing. B. TERMINATION: Either Party may terminate this Subgrant Agreement at any time by giving sixty (60) days written notice to the other Party. If this Agreement is terminated pursuant to this article, Subrecipient will stop work as specified in the notice and will be entitled to payment in accordance with the payment provisions of this Agreement only for those services furnished prior to the effective date of termination. Subrecipient shall not place any orders or subgrants for materials, services, or facilities, except as may be necessary for the completion of such portion of the work as is not terminated. Nothing hereunder shall be construed to limit American Forests’ right to terminate for default or non-compliance. C. American Forests may terminate this Agreement with immediate effect through notice to Subrecipient in the event of: (i) termination or cancellation of the Cooperative Agreement by the Forest Service; (ii) a lapse or interruption of appropriations; or (iii) a determination by American Forests that the communities served do not qualify as “disadvantaged” per tools and guidance provided by the Forest Service. In such event, Subrecipient will stop work as specified in the notice and will be entitled to payment in accordance with the payment provisions of this Agreement only for those services furnished prior to the effective date of termination. ARTICLE XV – DEFAULT AND REMEDIES A. DEFAULT WITH OPPORTUNITY TO CURE: If any of the following events of default occur without being cured within ten (10) days from the date that written notice of such default is received by Subrecipient from American Forests, American Forests, in its sole discretion, may terminate this Agreement: 1. The Agency’s determination that Subrecipient has failed to achieve the Grant Purposes; 2. The Agency’s determination that Subrecipient has failed to comply with all applicable provisions of the Grant Agreement; or 3. American Forests’ determination that Subrecipient has failed to perform any one of Subrecipient’s multiple obligations under this Agreement. B. DEFAULT RESULTING IN IMMEDIATE TERMINATION: In the event of either of these occurrences, American Forests may, in its sole discretion, declare Subrecipient in default and terminate this Agreement immediately and Subrecipient shall have no right to cure such default: 1. Adoption of any strategy or policy by Subrecipient which willfully undercuts the effectiveness of American Forests’ ability to achieve the Project outcome for which it is responsible under the Grant Agreement. 2. Misuse of funds by Subrecipient. C. DELAY OR FAILURE TO COMPLETE DELIVERABLES: Subrecipient will provide written notice to American Forests of its failure to provide agreed-upon deliverables as soon as it becomes aware of its inability to complete deliverables on time. Failure to report data in a timely manner to the UCF IRA Accomplishment Reporting System shall be a failure to complete deliverables. If American Forests determines that Subrecipient’s failure to complete deliverable(s) will result in significant barriers to achieve the Project outcomes, American Forests will give notice of such determination to Subrecipient and Subrecipient will provide an alternate strategy or deliverable to ensure success in achieving the Project outcomes, which may be accepted by American Forests in its sole discretion. The alternate strategy or deliverable will be submitted to American Forests for approval by American Forests and the Agency. American Forests may, in its sole discretion, terminate this Agreement if Subrecipient fails to comply with this subsection or if American Forests determines that an alternate strategy or deliverable is not acceptable under the circumstances. D. REMEDIES: If Subrecipient fails to cure any breach or default prior to the expiration of the ten (10) day notice period, American Forests may demand repayment of all or a portion of the amounts paid, or invoke any other remedy allowed by the Grant Agreement, this Agreement, or by law. All remedies provided in this agreement are distinct and cumulative to any other right or remedy under this agreement, or otherwise at law, and may be exercised concurrently, independently or successively. ARTICLE XVI – DISPUTE RESOLUTION In the event of any dispute relating to this Agreement, the Parties shall explore a resolution of the dispute through informal discussions. If a dispute cannot be resolved informally within sixty (60) consecutive days, the Parties agree to terminate this Agreement. Following termination of this Agreement, Subrecipient shall complete all programmatic and financial reporting and return any unspent funds to American Forests. ARTICLE XVII – EQUIPMENT A. If the Budget provides for the acquisition of equipment by Subrecipient, Subrecipient will comply with the procurement standards in 2 CFR 200.317-200.327. B. To ensure that the federal interest in acquired equipment is properly recorded, Subrecipient shall file a UCC1 form with the applicable State government agency and provide evidence of the filing to the Forest Service Program Manager at the time payment is requested for the equipment purchase, or within 30 days of an advance of funds for the purchase. Subrecipient is expected to maintain the UCC filing until the equipment has a fair market value of less than $5,000 or is disposed of following instructions from the Forest Service. The equipment may not be used as collateral, sold, or otherwise transferred to another party without the written permission of the Forest Service. C. Subrecipient shall inventory equipment acquired in part or in whole with Forest Service funds annually and submit a copy to American Forests. A final inventory shall be submitted for closeout. Subrecipient may use Tangible Personal Property Report Standard Forms (SF) 428. D. Subrecipient shall use the Tangible Personal Property Report Standard Forms (SF) 428 and SF- 428-C, Disposition Request, should it determine any item of equipment is no longer needed or has been lost, destroyed, or stolen. The Forest Service shall issue disposition instructions. ARTICLE XVIII – MISCELLANEOUS PROVISIONS A. PARAGRAPH TITLES: The titles to the paragraphs of this Agreement are used solely for purposes of identification, and are not to be construed as affecting the meaning of the language of the paragraphs. B. NOTICE: Whenever notice is required to be given under the terms of this Agreement, such notice shall be in writing and may be delivered in person or via e-mail, regular mail, courier, or overnight delivery service. Such notice will be deemed effective upon its receipt. C. RESPONSIBILITY: Each Party shall be solely responsible for the actions and/or omissions of its employees, contractors, and agents in implementing the objective of this Agreement. D. NO JOINT VENTURE OR AGENCY: The Parties agree that they are not entering into a legal partnership, joint venture or other such business arrangement. Neither Party will refer to or treat the arrangements under this Agreement as a legal partnership or take any action inconsistent with such intention. Neither Party may represent that it is acting as agent or representative of the other. E. FORCE MAJEURE: Neither Party shall be liable in damages or have the right to terminate this Agreement for any delay or default in performing hereunder if and to the extent such delay or default is caused by conditions beyond its control including, but not limited to Acts of God, Government restrictions (including the denial or cancellation of any export or other necessary license), lapse of appropriated funds for the Agency, wars, insurrections and/or any other cause beyond the reasonable control of the Party whose performance is affected. F. ASSIGNMENT: Subrecipient may not assign or transfer its rights and obligations under this Subgrant Agreement without the prior written consent of American Forests. G. SEVERABILITY: If any provision of this Agreement is held invalid, the other provisions herein shall not be affected thereby. H. GOVERNING LAW: This Agreement shall be construed in accordance with and governed by the laws of the District of Columbia. IN WITNESS WHEREOF this Agreement is executed on the date noted for each Party. By signature below, each party certifies that the individuals listed in this document as representatives of the individual parties are authorized to act in their respective areas for matters related to this award. BY AMERICAN FORESTS: James A. Daley, President and CEO ______________________________________________ ______________ Signature Date BY SUBRECIPIENT: Katie Rodriguez, City Manager ______________________________________________ ______________ Signature and title Date Mary Supple, Mayor ______________________________________________ ______________ Signature and title Date EXHIBITS This Agreement contains the following Exhibits: Exhibit 1: Scope of Work Exhibit 2: Budget Exhibit 3: Schedule of Reporting Requirements Exhibit 4: Financial Reporting Format Exhibit 5: Federal Subaward Terms Exhibit 6: FFATA (Attachment B to CA) Exhibit 7: Whistleblower (Attachment C to CA) EXHIBIT 1 SCOPE OF WORK 1. Project Scope Alignment: This project seeks to address the loss of urban canopy due to the prevalence of Emerald Ash Borer and subsequent tree removals. This project will help strengthen and replant canopy in the right of way in identified census tracts, focusing on where trees have not been planted or aren’t on existing planting schedules. This project works to increase equitable access to urban tree canopy by focusing all planting efforts on the southeast corner of the city in the census tracts identified by CEJST as disadvantaged communities, contributing to the goals of Justice40. This also means associated human health, environmental and economic benefits will also benefit said communities directly. Residents will not have to pay for costs associated with planting trees on their own or waiting longer on the current wait list to receive a free tree. This project will also improve resilience to climate change, pests, storm/extreme heat events through best management and maintenance practices. One of Minnesota’s Forest Action Plan’s goals is to “Enhance public benefits from trees and forests”. This initiative will support this effort by improving air quality, conserving energy, decreasing the urban heat island effect, connecting people to trees and engaging them in environmental stewardship and tree care activities. Similarly, this project aligns with several priorities in the Ten-Year Urban and Community Forestry Action Plan (2016-2026), including: 2. Promote the Role of Urban and Community Forestry in Human Health and Wellness 4. Strengthen Urban and Community Forest Health and Biodiversity for Long-Term Resilience 7. Increase Public Awareness and Environmental Education to Promote Stewardship City staff will develop education highlighting the relationships between tree planting, health & wellness, and environmental benefits, including the role of increased tree canopy in climate change mitigation. 2. Implementation Strategy/Methodology/Timeline: Proposed Approach Our proposed project includes removal and replacement of susceptible ash trees. These procedures are part of the City of Richfield’s Emerald Ash Borer plan which was started in 2012. Richfield’s EAB Management Plan included: - Removal of non-desirable ash trees - Chemical treatment of other ash trees - Replacement of trees that have been removed The goal of the management plan is to protect as much of the ash tree canopy as possible with knowing that all ash trees will need to be removed at some point. Another goal of the program was to manage costs to remain within current budget amounts for as long as possible. The plan was established with community support and based on information from MN Department of Agriculture and MN Department of Natural Resources. The plan was also adopted by Richfield’s City Council. Project Timeline Our proposed project’s timeline includes: April/May 2024 - Create and distribute bidding documents for tree removals April/May 2024 - City Council project communication - Public Outreach Summer 2024 - Removal of trees and stumps start November 2024 - Removals of trees and stumps complete (185 trees total) January 2025 - Create and distribute bidding documents for trees and tree planting May 2025 - Tree planting starts October 2025 - Tree planting is complete (545 trees total) Expected Outcomes 185 diseased ash trees removed (with stump grinding) and 545 trees planted, including replacements of removals and in other identified areas. Project assessment and evaluation will be conducted through site visits and inventorying number of trees removed and/or planted based on specific locations identified. 3. Capability and Capacity: The City of Richfield’s Public Works Department mission is “to sustain and improve the quality of life for our community by offering the highest standards in essential municipal services and providing them in a timely, responsible and professional manner.” Richfield’s Forestry department works to “preserve, manage, and maintain the health of Richfield's Urban Forest”. These goals and mission statements exemplify Richfield’s qualifications to manage this project. City of Richfield staff working on this project include Chris Link, Deputy Public Works Director, who has 25 years of urban forestry management and program/project management experience. Joe Clarke, Richfield City Forester, has 25 years of experience in forestry and 6 years as the City Forester. Rachel Lindholm, Sustainability Specialist, has 5 years of sustainability program management experience and will work with Chris Link on assessing and reporting project outcomes. Scott Kulzer, Administrative Aide/Analyst, has significant experience in forestry grant implementation, including a current grant-funded cost-share program that assists residents in removing EAB-infected private trees. He will assist in monitoring and assessing the project. All city staff members will help administer the grant and work with contracted partners (to be determined) to execute the project work. 4. Communications Plan: As part of the City’s existing public notification and engagement process, staff would communicate about the project via a project page on the City website as well as through multiple open house meeting dates. Notification of these events will be sent by letter, postcard, newspaper, and online channels. Information will be shared in English and Spanish. The City uses a variety of communication methods to share information related to grant projects being implemented in the City. These include, but are not limited to, press releases, articles published in the local newspaper, and social media posts. 5. Evidence of Disadvantaged Community Status for projects requesting Match Waiver (if applicable): This project is focused on census tracts 27053024802 and 27053024903, identified as disadvantaged communities by the Climate and Economic Justice Screening Tool (CEJST), in part because of their percentile rankings denoting low income and low median income, low life expectancy, and high traffic proximity and volume. All trees identified for removal are ash trees susceptible to Emerald Ash Borer and all locations identified for planting are in these tracts. Disadvantaged Communities Include: Census Tract (or Census Block Group) EPA EJScreen Disadvantaged Community Indicator 27053024802 CEJST Justice40 Disadvantaged Community 27053024903 CEJST Justice40 Disadvantaged Community EXHIBIT 2 BUDGET Budget Year(s) Budget Amount Personnel Fringe Benefits Travel Supplies Contractual 498,075 Other TOTAL DIRECT EXPENSES 498,075 Indirect TOTAL EXPENSES 498,075 EXHIBIT 3 SCHEDULE OF REPORTING REQUIREMENTS PROGRAM PERFORMANCE REPORTS: Subrecipient shall provide program performance reports using the templates to be provided by American Forests. This report should describe what was accomplished by this Subgrant as of the date of the Subgrant Report, outlining the activities that were undertaken by Subrecipient, the strategic choices that were made as a result of the Subgrant, and achievement of Subgrant Purposes. The report shall identify the Subrecipient’s name, UEI, and reporting period covered by the report. The report narrative must include: (1) a comparison of actual accomplishments to the objectives of the Federal award established for the period; (2) an explanation of any problems, delays or unexpected or adverse conditions that prevented establishment of the objectives or that are likely to impair the ability of the Subrecipient to complete the Project Activities; and (3) an explanation of any changes or events that will enable the Subrecipient to complete the Project Activities at less cost, with less time, or with greater than expected results than planned. In addition to the foregoing, the final Subgrant Report shall address the completion status of all Project Activities. This report should also include any written products (reports, fact sheets, etc.) resulting from Grant activities. Under the Grant Agreement, American Forests must submit semi-annual performance reports. These reports are due 30 days after the reporting period ending June 30 and December 31. To enable American Forests to meet this schedule, Subrecipient shall submit its program performance report by July 10 and January 10, respectively. Subrecipient’s final Subgrant Report shall be submitted no later than 60 days after the expiration date of this award. Subrecipient further agrees to provide other data and reports as reasonably requested by American Forests in writing. FINANCIAL REPORTS: Subrecipient shall submit Consolidated Financial Reports in the format detailed in Exhibit 4 (subject to modification by American Forests), on a quarterly basis each year, per the following schedule as relevant to the performance period: January 31 For expenditures from October 1 through December 31 April 30 For expenditures from January 1, through March 31 July 31 For expenditures from April 1 through June 30 October 31 For expenditures from July 1 through September 30 Subrecipient’s final Consolidated Financial Report shall be submitted no later than 60 days after the expiration of this award. American Forests reserves the right to request additional financial information to enable completion of its reporting obligations under the Grant. USDA FOREST SERVICE UCF IRA ACCOMPLISHMENT REPORTING SYSTEM: Subrecipient shall input data in accordance with the metrics detailed in the UCF IRA Accomplishment Reporting System, which will support ad-hoc real-time report submissions through a mobile-friendly web-based, geospatially-enabled data collection application, or in such other form or method as specified by the Forest Service. The accomplishment data reported should include applicable project and program outcomes and deliverables described in Subrecipient’s project narrative. This accomplishment reporting requirement is separate and complementary to the semi-annual performance and financial reports identified above. EXHIBIT 4 FINANCIAL REPORTING FORMAT Subrecipient shall provide data to American Forests sufficient to enable American Forests to complete Standard Form SF-425 and Federal Financial Report Attachment, SF-425A. Financial reports shall include the following information at a minimum: SUBAWARD EXPENSES Category (A) Approved Budget (B) Previously Reported Expenses (C) Current Quarter Expenses (D) Cumulative Project Expenses (E) Budget Remaining (Col A – Col D) Notes Personnel Fringe Benefits Travel Supplies Contractual Other Total Direct Charges Indirect Charges Total EXHIBIT 5 FEDERAL SUBAWARD TERMS A. Debarment and Suspension. Subrecipient is required to comply with 2 C.F.R. Part 180, Subpart C. To the extent Subrecipient is permitted to subaward or subcontract any portion of the work under this Agreement, Subrecipient must verify that each subawardee or subcontractor that is retained by Subrecipient is not excluded or disqualified under the federal System for Award Management, and shall obtain appropriate certifications from each such entity to demonstrate compliance with these requirements and provide such certifications to American Forests upon request. Subrecipient shall require similar certifications from any lower-tiers and provide these to American Forests upon request. B. Telecommunication Equipment and Services. In accordance with 2 CFR 200.216, Subrecipient is prohibited from obligating or expending grant funds for covered telecommunications or video surveillance equipment or services (as identified therein) to (1) procure or obtain, extend or renew a contract to procure or obtain; (2) enter into a contract (or extend or renew a contract) to procure; or (3) obtain the equipment, services or systems. C. Domestic Preference for Procurements: To the greatest extent practicable, Subrecipient shall purchase, acquire or use goods, products, or materials produced in the United States (including but not limited to iron, aluminum, steel, cement, and other manufactured products) under the Agreement. In accordance with 2 CFR 200.322, the requirements of this section must be included in all contracts and purchase orders for work or products under this Agreement. D. Contracting. Subrecipient shall take all necessary affirmative steps to assure that small and minority businesses, women’s business enterprises, and labor surplus area firms are used when possible as set forth in 2 CFR Section 200.321. E. Prohibition Against Certain Internal Confidentiality Agreements. Subrecipient may not require its employees or subcontractors, where applicable, seeking to report fraud, waste, or abuse to sign or comply with internal confidentiality agreements or statements prohibiting or otherwise restricting them from lawfully reporting that waste, fraud, or abuse to a designated investigative or law enforcement representative of a federal department or agency authorized to receive such information. Any prohibitions and restrictions of any internal confidentiality agreements inconsistent with this paragraph are no longer in effect. F. Eligible Workers. Subrecipient shall ensure that all employees complete the I-9 form to certify that they are eligible for lawful employment under the Immigration and Nationality Act (8 USC § 1324(a)). Subrecipient shall comply with regulations regarding certification and retention of completed forms. G. Safety While Driving. In accordance with E.O. 13513, “Federal Leadership on Reducing Text Messaging While Driving,” and E.O. 13043, “Increased Seat Belt Use in the United States”, Subrecipient is encouraged to adopt and enforce policies that ban text messaging and using seatbelts while driving vehicles when performing any work on or behalf of the Government. H. Never Contract With The Enemy. The award terms at 2 CFR 183 are incorporated by reference. Subrecipient is responsible for ensuring that none of the funds provided under this Agreement are provided directly or indirectly to a person or entity who is actively opposing the United States or coalition forces involved in a contingency operation in which members of the Armed Forces are actively engaged in hostilities. I. Trafficking in Persons. Federal policy prohibits any private entity or private entity employee from engaging in severe form of trafficking in persons, procure a commercial sex act, or use of forced labor in the performance of an award as addressed in 2 CFR 175.15. Subgrantee must inform the Agency immediately of any information you receive from any source alleging a violation of this policy and include the prohibition in any subaward or contract to a private entity for performance of this award. If Subgrantee is a private entity, the this award may be unilaterally terminated, without penalty, if Subgrantee: (1) Is determined to have violated the trafficking prohibition referenced above; or (2) Has an employee who is determined by the Agency to have violated the prohibition through conduct that is either: (i) Associated with performance under this award; or (ii) Imputed to Subgrantee using the standards and due process for imputing the conduct of an individual to an organization that are provided in 2 CFR part 180, “OMB Guidelines to Agencies on Government wide Debarment and Suspension (Nonprocurement).” EXHIBIT 6 Reporting Subawards and Executive Compensation a. Reporting of first-tier subawards. 1. Applicability. Unless you are exempt as provided in paragraph d. of this award term, you must report each action that equals or exceeds $30,000 in Federal funds for a subaward to a non-Federal entity or Federal agency (see definitions in paragraph e. of this award term). 2. Where and when to report. i. The non-Federal entity or Federal agency must report each obligating action described in paragraph a.1. of this award term to http://www.fsrs.gov. ii. For subaward information, report no later than the end of the month following the month in which the obligation was made. (For example, if the obligation was made on November 7, 2010, the obligation must be reported by no later than December 31, 2010.) 3. What to report. You must report the information about each obligating action that the submission instructions posted at http://www.fsrs.gov specify. b. Reporting total compensation of recipient executives for non-Federal entities. 1. Applicability and what to report. You must report total compensation for each of your five most highly compensated executives for the preceding completed fiscal year, if i. The total Federal funding authorized to date under this Federal award equals or exceeds $30,000 as defined in 2 CFR 170.320; ii. in the preceding fiscal year, you received 1. 80 percent or more of your annual gross revenues from Federal procurement contracts (and subcontracts) and Federal financial assistance subject to the Transparency Act, as defined at 2 CFR 170.320 (and subawards), and 2. $25,000,000 or more in annual gross revenues from Federal procurement contracts (and subcontracts) and Federal financial assistance subject to the Transparency Act, as defined at 2 CFR 170.320 (and subawards); and, iii. The public does not have access to information about the compensation of the executives through periodic reports filed under section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a), 78o(d)) or section 6104 of the Internal Revenue Code of 1986. (To determine if the public has access to the compensation information, see the U.S. Security and Exchange Commission total compensation filings at http://www.sec.gov/answers/execomp.htm.) 2. Where and when to report. You must report executive total compensation described in paragraph b.1. of this award term: i. As part of your registration profile at https://www.sam.gov. ii. By the end of the month following the month in which this award is made, and annually thereafter. c. Reporting of Total Compensation of Subrecipient Executives. 1. Applicability and what to report. Unless you are exempt as provided in paragraph d. of this award term, for each first-tier non- Federal entity subrecipient under this award, you shall report the names and total compensation of each of the subrecipients five most highly compensated executives for the subrecipient’s preceding completed fiscal year, if i. in the subrecipient’s preceding fiscal year, the subrecipient received 1. 80 percent or more of its annual gross revenues from Federal procurement contracts (and subcontracts) and Federal financial assistance subject to the Transparency Act, as defined at 2 CFR 170.320 (and subawards) and, 2. $25,000,000 or more in annual gross revenues from Federal procurement contracts (and subcontracts), and Federal financial assistance subject to the Transparency Act (and subawards); and ii. The public does not have access to information about the compensation of the executives through periodic reports filed under section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a), 78o(d)) or section 6104 of the Internal Revenue Code of 1986. (To determine if the public has access to the compensation information, see the U.S. Security and Exchange Commission total compensation filings at http://www.sec.gov/answers/execomp.htm.) 2. Where and when to report. You must report subrecipient executive total compensation described in paragraph c.1. of this award term: i. To the recipient. ii. By the end of the month following the month during which you make the subaward. For example, if a subaward is obligated on any date during the month of October of a given year (i.e., between October 1 and 31), you must report any required compensation information of the subrecipient by November 30 of that year. d. Exemptions. If, in the previous tax year, you had gross income, from all sources, under $300,000, you are exempt from the requirements to report: i. Subawards, and ii. The total compensation of the five most highly compensated executives of any subrecipient. e. Definitions. For purposes of this award term: 1. Federal Agency means a Federal agency as defined at 5 U.S.C. 551(1) and further clarified by 5 U.S.C. 552(f). 2. Non-Federal entity means all of the following, as defined in 2 CFR part 25: i. A Governmental organization, which is a State, local government, or Indian tribe; ii. A foreign public entity; iii. A domestic or foreign nonprofit organization; and, iv. A domestic or foreign for-profit organization 3. Executive means officers, managing partners, or any other employees in management positions. 4. Subaward: i. This term means a legal instrument to provide support for the performance of any portion of the substantive project or program for which you received this award and that you as the recipient award to an eligible subrecipient. ii. The term does not include your procurement of property and services needed to carry out the project or program (for further explanation, see 2 CFR 200.331). iii. A subaward may be provided through any legal agreement, including an agreement that you or a subrecipient considers a contract. 5. Subrecipient means a non-Federal entity or Federal agency that: i. Receives a subaward from you (the recipient) under this award; and ii. Is accountable to you for the use of the Federal funds provided by the subaward. 6. Total compensation means the cash and noncash dollar value earned by the executive during the recipient's or subrecipient's preceding fiscal year and includes the following (for more information see 17 CFR 229.402(c)(2)). EXHIBIT 7 Whistleblower Notice Whistleblowers perform an important service to USDA and the public when they come forward with what they reasonably believe to be evidence of wrongdoing. They should never be subject to reprisal for doing so. Federal law protects federal employees as well as personal services contractors and employees of Federal contractors, subcontractors, grantees, and subgrantees against reprisal for whistleblowing. USDA bears the responsibility to ensure that nothing in a non-disclosure agreement which a contractor, subcontractor, grantee, or subgrantee requires their employees to sign should be interpreted as limiting their ability to provide information to the Office of Inspector General (OIG). 41 U.S.C. § 4712 requires the head of each executive agency to ensure that its contractors inform their workers in writing of the rights and remedies under the statute. Accordingly, it is illegal for a personal services contractor or an employee of a Federal contractor, subcontractor, grantee, or subgrantee to be discharged, demoted, or otherwise discriminated against for making a protected whistleblower disclosure. In this context, these categories of individuals are whistleblowers who disclose information that the individual reasonably believes is evidence of one of the following: • Gross mismanagement of a Federal contract or grant; • A gross waste of Federal funds; • An abuse of authority relating to a Federal contract or grant; • A substantial and specific danger to public health or safety; or • A violation of law, rule, or regulation related to a Federal contract (including the competition for or negotiation of a contract) or grant. To be protected under 41 U.S.C. § 4712, the disclosure must be made to one of the following: • A Member of Congress, or a representative of a committee of Congress; • The OIG; • The Government Accountability Office (GAO); • A Federal employee responsible for contract or grant oversight or management at USDA; • An otherwise authorized official at USDA or other law enforcement agency; • A court or grand jury; or A management official or other employee of the contractor, subcontractor, or grantee who has the responsibility to investigate, discover, or address misconduct. Under 41 U.S.C. § 4712, personal services contractors as well as employees of contractors, subcontractors, grantees, or subgrantees may file a complaint with OIG, who will investigate the matter unless they determine that the complaint is frivolous, fails to allege a violation of the prohibition against whistleblower reprisal, or has been addressed in another proceeding. OIG’s investigation is then presented to the head of the executive agency who evaluates the facts of the investigation and can order the contractor, subcontractor, grantee, or subgrantee to take remedial action, such as reinstatement or back pay. Federal Acquisition Regulation (FAR) Subpart 3.903, Whistleblower Protections for Contractor Employees, Policy, prohibits government contractors from retaliating against a contract worker for making a protected disclosure related to the contract. FAR Subpart 3.909-1 prohibits the Government from using funds for a contract with an entity that requires its employees or subcontractors to sign internal confidentiality statements prohibiting or restricting disclosures of fraud, waste, or abuse to designated persons. This prohibition does not contravene agreements pertaining to classified information. The regulation also requires contracting officers to insert FAR clause 52.203-17, Contractor Employee Whistleblower Rights and Requirement to Inform Employees of Whistleblower Rights, in all solicitations and contracts that exceed the Simplified Acquisition Threshold as defined in FAR Subpart 3.908. This clause requires notification to contractor employees that they are subject to the whistleblower rights and remedies referenced in 41 U.S.C. § 4712. In order to make a complaint alleging any of the violations mentioned above, one should complete the OIG Hotline form located at: https://www.usda.gov/oig/hotline. For additional information, they may also visit the WPC’s webpage at: https://www.usda.gov/oig/wpc or they may directly contact the WPC at OIGWPC@oig.usda.gov. PROJECT NARRATIVE TEMPLATE IRA - UCF Project Narrative 2023 - Page 1 NOTE: Do NOT rename or rearrange the sections in this template. INSTRUCTIONS: Edit this document and complete each of the numbered sections below. Once your project narrative is completed, save this file as an Adobe Acrobat PDF file and upload it to the Grant Portal under the appropriate Project Narrative document workflow step. The text in this narrative must be single spaced typed in standard typeface (e.g., Times New Roman, Arial, Calibri) with no smaller than 12-point font. Do NOT modify the page layout, margins, header, or footer in the document as each page must be numbered and have one-inch margins. NOTE: This completed project narrative document is NOT to exceed 7 single spaced pages. 1. Project Scope Alignment: Describe the issues this project is seeking to address and how the project will contribute to the goals in this funding opportunity, including congressional, Justice40, State Forest Action Plans, and Ten-Year Urban and Community Forestry Action Plan (2016-2026) priorities. This project seeks to address the loss of urban canopy due to the prevalence of Emerald Ash Borer and subsequent tree removals. This project will help strengthen and replant canopy in the right of way in identified census tracts, focusing on where trees have not been planted or aren’t on existing planting schedules. This project works to increase equitable access to urban tree canopy by focusing all planting efforts on the southeast corner of the city in the census tracts identified by CEJST as disadvantaged communities, contributing to the goals of Justice40. This also means associated human health, environmental and economic benefits will also benefit said communities directly. Residents will not have to pay for costs associated with planting trees on their own or waiting longer on the current wait list to receive a free tree. This project will also improve resilience to climate change, pests, storm/extreme heat events through best management and maintenance practices. One of Minnesota’s Forest Action Plan’s goals is to “Enhance public benefits from trees and forests”. This initiative will support this effort by improving air quality, conserving energy, decreasing the urban heat island effect, connecting people to trees and engaging them in environmental stewardship and tree care activities. Similarly, this project aligns with several priorities in the Ten-Year Urban and Community Forestry Action Plan (2016-2026), including: 2. Promote the Role of Urban and Community Forestry in Human Health and Wellness 4. Strengthen Urban and Community Forest Health and Biodiversity for Long-Term Resilience 7. Increase Public Awareness and Environmental Education to Promote Stewardship IRA - UCF Project Narrative 2023 - Page 2 City staff will develop education highlighting the relationships between tree planting, health & wellness, and environmental benefits, including the role of increased tree canopy in climate change mitigation. 2. Implementation Strategy/Methodology/Timeline: Provide a detailed explanation of the proposed approach, methodology, operations strategies, project schedule/timeline with goals/milestones, expected accomplishments or measurable outcomes, and project assessment/evaluation methods. Proposed Approach Our proposed project includes removal and replacement of susceptible ash trees. These procedures are part of the City of Richfield’s Emerald Ash Borer plan which was started in 2012. Richfield’s EAB Management Plan included: - Removal of non-desirable ash trees - Chemical treatment of other ash trees - Replacement of trees that have been removed The goal of the management plan is to protect as much of the ash tree canopy as possible with knowing that all ash trees will need to be removed at some point. Another goal of the program was to manage costs to remain within current budget amounts for as long as possible. The plan was established with community support and based on information from MN Department of Agriculture and MN Department of Natural Resources. The plan was also adopted by Richfield’s City Council. Project Timeline Our proposed project’s timeline includes: January 2024 - Create and distribute bidding documents for tree removals February 2024 - City Council Work session - Public Outreach April 2024 - Removal of trees and stumps start November 2024 - Removals of trees and stumps complete (185 trees total) January 2025 - Create and distribute bidding documents for trees and tree planting May 2025 - Tree planting starts October 2025 - Tree planting is complete (545 trees total) Expected Outcomes IRA - UCF Project Narrative 2023 - Page 3 185 diseased ash trees removed (with stump grinding) and 545 trees planted, including replacements of removals and in other identified areas. Project assessment and evaluation will be conducted through site visits and inventorying number of trees removed and/or planted based on specific locations identified. 3. Capability and Capacity: Describe how each contributing organization is suited for (mission) and qualified to deliver the project. Provide the names, titles, and organization affiliation and specific roles of key personnel for the project. Include qualifications and experience of key personnel to implement, monitor, and assess/report project outcome. The City of Richfield’s Public Works Department mission is “to sustain and improve the quality of life for our community by offering the highest standards in essential municipal services and providing them in a timely, responsible and professional manner.” Richfield’s Forestry department works to “preserve, manage, and maintain the health of Richfield's Urban Forest”. These goals and mission statements exemplify Richfield’s qualifications to manage this project. City of Richfield staff working on this project include Chris Link, Deputy Public Works Director, who has 25 years of urban forestry management and program/project management experience. Joe Clarke, Richfield City Forester, has 25 years of experience in forestry and 6 years as the City Forester. Rachel Lindholm, Sustainability Specialist, has 5 years of sustainability program management experience and will work with Chris Link on assessing and reporting project outcomes. Scott Kulzer, Administrative Aide/Analyst, has significant experience in forestry grant implementation, including a current grant-funded cost-share program that assists residents in removing EAB-infected private trees. He will assist in monitoring and assessing the project. All city staff members will help administer the grant and work with contracted partners (to be determined) to execute the project work. 4. Communications Plan: Share your plans for communication on the project, including plans for 1) signage acknowledging the source of funding at project locations 2) inclusion of funding information in press and promotional materials. As part of the City’s existing public notification and engagement process, staff would communicate about the project via a project page on the City website as well as through multiple open house meeting dates. Notification of these events will be sent by letter, postcard, newspaper, and online channels. Information will be shared in English and Spanish. The City uses a variety of communication methods to share information related to grant projects being implemented in the City. These include, but are not limited to, press releases, articles published in the local newspaper, and social media posts. 5. Evidence of Disadvantaged Community Status for projects requesting Match Waiver (if applicable): IRA - UCF Project Narrative 2023 - Page 4 Clearly describe the scope of work to be performed in disadvantaged communities, and identify online vulnerability and environmental justice equity data and/or tools referenced to support a disadvantaged community designation, (e.g., White House Council on Environmental Quality Climate and Economic Justice Screening Tool (CEJST), EPA Environmental Justice and Screening Mapping Tool (EJScreen), EPA EnviroAtlas Interactive Map, Opportunity Zones, or other vulnerability data/tools applicable to the scope of work). Multiple tools may be used. All work must be tracked at the level that designates disadvantaged communities. Primary applicants receiving cost-match waiver approval that pass-through funding (sub-award) for work in disadvantaged communities must pass through the cost match waiver to sub- awardees performing the work. This project is focused on census tracts 27053024802 and 27053024903, identified as disadvantaged communities by the Climate and Economic Justice Screening Tool (CEJST), in part because of their percentile rankings denoting low income and low median income, low life expectancy, and high traffic proximity and volume. All trees identified for removal are ash trees susceptible to Emerald Ash Borer and all locations identified for planting are in these tracts. Thursday, June 1, 2023 11:37:08 AM - Explore the map - Climate & Economic Justice Screening Tool Thursday, June 1, 2023 11:37:37 AM - Explore the map - Climate & Economic Justice Screening Tool AGENDA SECTION:CONSENT CALENDAR AGENDA ITEM #4.D. STAFF REPORT NO. 115 CITY COUNCIL MEETING 9/10/2024 REPORT PREPARED BY:Jennifer Anderson, Support Services Manager DEPARTMENT DIRECTOR REVIEW:Jay Henthorne, Director of Public Safety/Chief of Police 8/29/2024 OTHER DEPARTMENT REVIEW: CITY MANAGER REVIEW: Katie Rodriguez, City Manager 9/4/2024 ITEM FOR COUNCIL CONSIDERATION: Consider approval of a Temporary On Sale Intoxicating Liquor license for their RHS fast-pitch fundraising event scheduled to take place October 5, 2024, at Fred Babcock VFW #5555, located at 6715 Lakeshore Dr. EXECUTIVE SUMMARY: On August 8, 2024, the City received application materials for a Temporary On-Sale Intoxicating Liquor license for their RHS fast-pitch fundraising event scheduled to take place October 5, 2024, at Fred Babcock VFW #5555, located at 6715 Lakeshore Dr. The VFW plans to set up in the parking lot. Food and refreshments, including alcohol, will be sold at the event. Their request is to serve alcohol from 2:00 p.m. to 9:00 p.m. The Director of Public Safety has reviewed and approved the license application and sees no reason it should be denied. All required information has been provided and all licensing fees have been received. RECOMMENDED ACTION: By motion: Approve the issuance of a Temporary On Sale Intoxicating Liquor license for their RHS fast-pitch fundraising event scheduled to take place October 5, 2024, at Fred Babcock VFW #5555, located at 6715 Lakeshore Dr. BASIS OF RECOMMENDATION: A.HISTORICAL CONTEXT The applicant has satisfied the following requirements for the issuance of this license: The required licensing fee has been paid. Proof of liquor liability insurance has been submitted showing Integrity Mutual Insurance Company affording coverage (parking lot included). The applicant has contacted sanitarians from the City of Bloomington to ensure proper food handling practices are followed. Employees of the VFW will be providing security and will patrol the area for this event. B.EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS C.POLICIES (resolutions, ordinances, regulations, statutes, exc): Richfield City Code Section 1202.05 requires all applicants to comply with all of the provisions of this code, as well as the provisions of Minnesota Statue Chapter 340A. D.CRITICAL TIMING ISSUES: The sale of intoxicating liquor in the parking lot must cease no later than 9:00 p.m. on October 5, 2024. E.FINANCIAL IMPACT: The required licensing fees have been received. F.LEGAL CONSIDERATION: There are no legal considerations. ALTERNATIVE RECOMMENDATION(S): The Council could deny the requested license; however, that would mean the applicant would not be able to serve alcohol outside to the public during the October 5th event. PRINCIPAL PARTIES EXPECTED AT MEETING: Representative of VFW. ATTACHMENTS: Description Type VFW 5555 parking lot drawing Cover Memo AGENDA SECTION:CONSENT CALENDAR AGENDA ITEM #4.E. STAFF REPORT NO. 116 CITY COUNCIL MEETING 9/10/2024 REPORT PREPARED BY:Scott Kulzer, Senior Analyst DEPARTMENT DIRECTOR REVIEW:Kristin Asher, Public Works Director 8/26/2024 OTHER DEPARTMENT REVIEW: CITY MANAGER REVIEW: Katie Rodriguez, City Manager 9/4/2024 ITEM FOR COUNCIL CONSIDERATION: Consider approval of Amendment #1 to License No. L-344 between the City of Richfield and the Minnesota Department of Health for air monitoring equipment at the Richfield Water Treatment Plant. EXECUTIVE SUMMARY: Air monitoring equipment has been installed on the grounds of the Richfield Water Treatment Plant since May 2011. In 2014, Minnesota Department of Health (MDH) assumed oversight of the air monitoring program from the Minnesota Pollution Control Agency (MPCA) and entered into License No. L-344 with the City of Richfield. The original License No. L-344 had a term of five (5) years with the option for renewal under the same terms and conditions for an additional five (5) year term that expired on August 31, 2024. Amendment #1 to License No. L-344 renews the term of the original license for another five (5) year term through August 31, 2029, restates that there is no fee for the use of Richfield's premises by MDH and amends the "NOTICES" section of the original license. RECOMMENDED ACTION: By Motion: Approve Amendment #1 to License No. L-344 between the City of Richfield and the Minnesota Department of Health for air monitoring equipment at the Richfield Water Treatment Plant. BASIS OF RECOMMENDATION: A.HISTORICAL CONTEXT See executive summary. B.EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS This item is standard City business to continue an existing arrangement between the City and MDH for air quality monitoring. C.POLICIES (resolutions, ordinances, regulations, statutes, exc): Having a formal license that sets out the terms and conditions for MDH's use of the air quality monitoring site at the Richfield Water Treatment Plant is in the best interest of both parties. City Council approval is required for licenses, agreements and contracts of this nature. D.CRITICAL TIMING ISSUES: The current license expired on August 31, 2024 and this amendment should be approved as soon as possible so the license can remain in effect. E.FINANCIAL IMPACT: There are no fees charged to MDH for use of the premises and no costs incurred by the City for this arrangement. F.LEGAL CONSIDERATION: The City Attorney reviewed the license amendment and will be available to answer questions. ALTERNATIVE RECOMMENDATION(S): None PRINCIPAL PARTIES EXPECTED AT MEETING: None ATTACHMENTS: Description Type Amendment #1 to Lease Agreement Contract/Agreement Original Lease Agreement Contract/Agreement STATE OF MINNESOTA AMENDMENT OF LICENSE Amendment No. 1 License No. L-344 THIS AMENDMENT No. 1 to License No. L-344 is by and between City of Richfield, hereinafter referred to as LICENSOR, and the State of Minnesota, Department of Administration, hereinafter referred to as LICENSEE, acting for the benefit of the Department of Health. WHEREAS, LICENSOR and LICENSEE entered into License No. L-344, dated September 16, 2014, involving the use of the Water Treatment Facility as an air monitoring site; equipment is located in the SE corner of facility, located at 6221 Portland Avenue S, Richfield, Minnesota 55423; WHEREAS, the parties deem certain amendments and additional terms and conditions mutually beneficial for the effective continuation of said License; NOW THEREFORE, LICENSOR and LICENSEE agree to substitution and/or addition of the following terms and conditions, which shall become a part of License No. L-344 effective as of the date set forth herein. 1. RENEWAL TERM This License shall be renewed for a period of five (5) years, commencing September 1, 2024 and continuing through August 31, 2029 (“Renewal Term”), upon existing terms and conditions of this License except as otherwise provided herein. 2. LICENSE FEE LICENSEE and LICENSOR hereby agree there is no fee for LICENSEE’S use of the Premises. 3. NOTICES 3.1 Deletion Section 13 of the License is hereby deleted and of no further force or effect and is replaced with the following Section 3.2 and 3.3. 3.2 All notices or communications between LICENSOR and LICENSEE shall be in writing and deemed to have been given upon the occurrence of one of the following methods of delivery to the address notice in Section 3.3 below. a. when personally delivered to the addressee, or b. on the second business day after sender has deposited the registered or certified mailing with the US Postal Service, or L-344 Amend 1.docx Page 2 of 3 c. When delivered via electronic mail from LICENSEE to LICENSOR at RLupkes@richfieldmn.gov (provided such delivery or attempted delivery is confirmed), or d. one (1) business day after deposited with an overnight courier service 3.3 Mailing Addresses: LICENSOR: City of Richfield 1901 E 66th St Richfield MN 55423 Attn: Russ Lupkes LICENSEE: Real Estate and Construction Services Department of Administration 50 Sherburne Ave # 309 St Paul MN 55155 RLupkes@richfieldmn.gov Attn: Lease Supervisor 4. EXECUTION IN COUNTERPARTS This Amendment may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which counterparts of this Amendment taken together shall constitute but one and the same Amendment. Delivery of an executed counterpart of this Amendment by facsimile or email or a PDF file shall be equally as effective as delivery of an original executed counterpart of this Amendment. 5. Except as modified by the provisions of this Amendment, said License is ratified and confirmed as originally written. All capitalized terms used but not defined herein shall have the meanings assigned to them as set forth in the License, unless otherwise stated. NO ATTACHMENTS L-344 Amend 1.docx Page 3 of 3 IN WITNESS WHEREOF, the parties have set their hands on the date(s) indicated below intending to be bound thereby. LICENSOR: CITY OF RICHFIELD LICENSOR certifies that the appropriate person(s) have executed the Amendment to the License on behalf of LICENSOR as required by applicable articles, bylaws, resolutions or ordinances. By Title Date By Title Date LICENSEE: STATE OF MINNESOTA DEPARTMENT OF ADMINISTRATION COMMISSIONER By Real Estate and Construction Services Date APPROVED: STATE OF MINNESOTA DEPARTMENT OF HEALTH By Title Date STATE ENCUMBRANCE VERIFICATION Individual signing certifies that funds have been encumbered as required by Minn. Stat. §16A.15 and §16C.05. By Date SWIFT P.O. Contract No. Account Code Fund No. N/A EPR Lab Supervisor / BW Lab Coordinator 6/11/2024 AGENDA SECTION:CONSENT CALENDAR AGENDA ITEM #4.F. STAFF REPORT NO. 117 CITY COUNCIL MEETING 9/10/2024 REPORT PREPARED BY:Matt Hardegger, Transportation Engineer DEPARTMENT DIRECTOR REVIEW:Kristin Asher, Public Works Director 8/28/2024 OTHER DEPARTMENT REVIEW: CITY MANAGER REVIEW: Katie Rodriguez, City Manager 9/4/2024 ITEM FOR COUNCIL CONSIDERATION: Consider adoption of a resolution of support for Richfield's application for federal funding for a Corridor Planning Study of 76th and 77th Streets via the USDOT Reconnecting Communities Pilot (RCP) Grant Program. EXECUTIVE SUMMARY: Public Works is preparing a grant application to seek federal funds through the USDOT RCP Grant Program to conduct a corridor planning study of the 76th/77th Street corridor from York Ave in Edina to Trunk Highway 77. If grant funding is awarded, the study would conduct extensive public engagement on whether the current roadway meets the needs of the community it serves, and develop concepts and a corridor plan for a future vision of 76th and 77th Streets in anticipation of necessary construction over the next 2 to 3 decades. The maximum award for planning activities is $2 million. Staff are proposing a scope of approximately $600,000, of which $480,000 would come from a successful federal grant. RECOMMENDED ACTION: By Motion: Adopt the resolution of support for Richfield's application for federal funding for a Corridor Planning Study of 76th and 77th Streets via the USDOT RCP Grant Program. BASIS OF RECOMMENDATION: A.HISTORICAL CONTEXT Richfield constructed 77th Street from I-35W to Trunk Highway 77 as part of the ring-route vision for relieving traffic on the I-494 corridor. This included a four-lane concrete high speed roadway design with a noise wall on the north side of the road and limited pedestrian infrastructure. The roadway and noise wall construction required the purchase of nearly 40 properties on the north side of 77th Street and cut off access to numerous residential roads from 77th Street, which created a physical barrier within Richfield. Approximately 12% of the city's population lives between 76th/77th Streets and I-494, an area bounded by high speed roads with limited access to parks, schools, and other city amenities. 38% of the city's population lives in a census tract that is divided by this roadway. Within a half-mile radius of the corridor, 48% of the residents are BIPOC, 30% have low income, and 19% are aged 64 or older. There is a food desert, housing burdened residents, and transportation access challenges in the area as well. The RCP Grant Program began in Fiscal Year 2022 as a program to "reconnect communities by removing, retrofitting, or mitigating highways or other transportation facilities that create barriers to community connectivity, including to mobility, access, or economic development." To date, approximately $3.5 billion has been awarded through this program, with $607 million remaining to be allocated over Fiscal Years 2024-2026 through this year's solicitation. $150 million of the remaining money is allocated to planning activities. Richfield submitted an unsuccessful application to the program in Fiscal Year 2023. Staff have debriefed with the Federal Highway Administration and have identified areas to bolster the application for an improved submission in 2024. Due to a significantly smaller pot of money available in this solicitation, the scope of the application has been reduced from approximately $1.1 million to approximately $600,000 by removing preliminary design activities for an initial construction project. B.EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS Strategic Outcome Consideration: By adopting a resolution supporting this grant application, the city can leverage an external revenue source to provide "sustainable infrastructure financing". By conducting the study if grant funding is awarded, the city can "reduce racial inequities and barriers for traditionally excluded groups" and ensure that "city infrastructure supports service needs". Equity Outcome Consideration: By adopting a resolution of support for this grant application, the City Council would be taking a first step toward studying what effects the city's transportation infrastructure has had on the city, especially in lower income and disadvantaged Census tracts. This study would be an opportunity to identify those outcomes and create a plan to address them over the next decades. C.POLICIES (resolutions, ordinances, regulations, statutes, exc): Council Resolution No. 12118 was adopted in September 2023 supporting a similar application to this grant program. D.CRITICAL TIMING ISSUES: Grant applications are due on September 30th, 2024, which makes the adoption of the resolution at this meeting timely. E.FINANCIAL IMPACT: The maximum award is up to $2M. The application will request roughly $480,000 from the federal government, which would require approximately $120,000 in local matching funds. Since this program is funded through the Bipartisan Infrastructure Law (BIL), the State of Minnesota does have matching funds available from a legislative appropriation designed to encourage local agencies to take advantage of the BIL grants. This pool is finite and has approximately $68 million remaining as of August 2024. F.LEGAL CONSIDERATION: None at this time. ALTERNATIVE RECOMMENDATION(S): None PRINCIPAL PARTIES EXPECTED AT MEETING: None ATTACHMENTS: Description Type RCP Grant Application Resolution of Support Resolution Letter RESOLUTION NO. RESOLUTION OF SUPPORT FOR THE ‘RECONNECTING RICHFIELD: 76th ST/77th ST PLANNING STUDY’ THROUGH THE USDOT RECONNECTING COMMUNITIES PILOT GRANT PROGRAM APPLICATION WHEREAS, the United States Department of Transportation’s Reconnecting Communities Pilot (RCP) Grant Program was created and funded through the Bipartisan Infrastructure Law (BIL); and WHEREAS, the RCP Grant Program will competitively award planning capital construction grants and technical assistance for community-centered transportation projects, with emphasis on aiding disadvantaged communities in accessing vital services and removing barriers like highways that impede connectivity, mobility, and economic development; and WHEREAS, the City of Richfield will pursue planning grant funds and provide the mandatory match of 20 percent of project costs, which combined, will be used to identify improvements to transportation barriers that impact pedestrians living near and using the 76th St/77th St corridor in Richfield; and WHEREAS, the 76th St/77th St corridor is a 3.5-mile long, west-east corridor that stretches across the southern part of Richfield and runs parallel to I-494—a freeway that carried 120,000–140,000 vehicles per day in 2022 and is currently being expanded; and WHEREAS, the 76th St/77th St corridor functions as a reliever route for I-494 by carrying high traffic volumes at high speeds; and WHEREAS, the 76th St/77th St corridor features a noise wall located on the north side of the street for the majority of the corridor creating an obstacle to access nearby destinations like parks and jobs; and WHEREAS, the corridor provides limited bicycle/pedestrian accommodations along the route and poor pedestrian crossing infrastructure; and WHEREAS, the corridor contributes to a portion of the City of Richfield’s residents that live south of 77th St—including a large area identified as a disadvantaged community by the USDOT—being pinched between two major transportation corridors that act as mobility barriers; and WHEREAS, there are a total of eight public and private schools within just over 0.5- mile of the project corridor; and WHEREAS, the corridor’s lack of accessibility was identified in the 2014 Safe Routes to School Comprehensive Plan in collaboration with Richfield Public Schools and noted there are very high traffic volumes acting as a significant barrier to pedestrians and bicyclists, and that “there are not any designated school zones or school crossings near the school”; and WHEREAS, according to the EPA's EJScreen data, within a 0.5-mile radius of the corridor, 48 percent of residents are people of color, 30 percent have low income, and 19 percent are aged 64 or older; and WHEREAS, EJScreen data also indicated that within a 0.5-mile radius of the corridor, there exists a food desert, housing burdened residents, and challenges related to transportation access; and WHEREAS, improving accessibility and removing barriers on the 76th St/77th St corridor will increase the safety and improve the experience of students traveling to and from schools and community members accessing jobs, goods, and services; and WHEREAS, on September 4, 2024, the Richfield Transportation Commission reviewed and discussed the merits the USDOT RCP Grant Program application and voted to encourage the City Council to adopt this resolution in support of the application; and WHEREAS, the City of Richfield invests in infrastructure to best serve today’s and tomorrow’s residents, businesses, and visitors; and WHEREAS, the City of Richfield ensures that City services are accessible to people of all races, ethnicities, incomes, and abilities. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Richfield, Minnesota, supports Public Works’ 2024 USDOT RCP Grant Program application for the ‘Reconnecting Richfield: 76th St/77th St Planning Study’. Adopted by the City Council of the City of Richfield, Minnesota this 10th day of September, 2024. Mary Supple, Mayor ATTEST: Michelle Friedrich, City Clerk AGENDA SECTION:CONSENT CALENDAR AGENDA ITEM #4.G. STAFF REPORT NO. 118 CITY COUNCIL MEETING 9/10/2024 REPORT PREPARED BY:Scott Kulzer, Senior Analyst DEPARTMENT DIRECTOR REVIEW:Kristin Asher, Public Works Director 8/29/2024 OTHER DEPARTMENT REVIEW: CITY MANAGER REVIEW: Katie Rodriguez, City Manager 9/4/2024 ITEM FOR COUNCIL CONSIDERATION: Consider adoption of a resolution accepting a Hennepin County Youth Activities Grant in the amount of $200,000 for Donaldson Park playground improvements and the Pillsbury Plaza playground. EXECUTIVE SUMMARY: In late March, 2024, the Public Works Department and Recreation Services Department separately applied for Hennepin County Youth Activities Play Spaces grants for partial funding for Donaldson Park playground improvements and a Pillsbury Plaza playground. The maximum grant award for any one project or application was $100,000 and in summer 2024 the City was made aware that both applications were successful. The City will be awarded $200,000 via the grant program with $100,000 earmarked for each unique project. RECOMMENDED ACTION: By Motion: Adopt the resolution accepting a Hennepin County Youth Activities Grant in the amount of $200,000 for Donaldson Park playground improvements and the Pillsbury Plaza playground. BASIS OF RECOMMENDATION: A.HISTORICAL CONTEXT Pillsbury Plaza The 65th Street Reconstruction project included the removal of the cul-de-sac at Pillsbury Avenue leaving behind an area of public right-of-way. Prior to the road reconstruction there were no plans for the use of this space that would directly serve and benefit the immediate community. The development of the Pillsbury Plaza concept is credited to Richfield’s former Transportation Engineer, Jack Broz. The proposed project, identified for spring of 2025, will serve Richfield and the local community in this area by constructing a community plaza with the following amenities: A community playground/play feature made possible with this grant award; ADA accessible concrete walks, ramps and aprons; ADA accessible swinging bench; Drinking fountain; Benches; and Shade trees and landscaping. Donaldson Park Playground The Recreation Services Department has long desired to replace and expand the playground equipment at Donaldson Park. In conjunction with parks funding generated from liquor store revenue, this grant will help fund the cost to replace and expand the current play equipment at Donaldson Park. B.EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS Equity: Playground equipment is an amenity that is free to use at anytime during park hours, making play spaces among the most-used and widely-accessible recreation amenities in the City. The City has an ongoing commitment to provide programs and facilities that are accessible and inviting to all people, regardless of ethnicity, gender identification, or economic status. The play spaces are available to and regularly used by all members of our community. With the construction of the new play space at Pillsbury Plaza, the City will be bringing a needed recreation area to a densely populated area of Richfield that is currently without. Strategic: By adopting this resolution and accepting the grant awards, the City is striving to leverage external funding sources to maintain sustainable infrastructure financing and ensuring that city infrastructure supports service needs. C.POLICIES (resolutions, ordinances, regulations, statutes, exc): Minnesota Statutes, Section 465.03 requires every acceptance of a grant or devise of real personal property on terms prescribed by the donor be made by resolution by a two-thirds majority of the City Council. D.CRITICAL TIMING ISSUES: Approval of the grant agreement at this meeting will allow City staff to incur costs related to Pillsbury Plaza and the Donaldson Park improvements. E.FINANCIAL IMPACT: Pillsbury Plaza: The $100,000 grant award will go towards play features in the future Pillsbury Plaza. The City match will consist of the build of the plaza including sidewalks, retaining walls, trees and landscaping, grading, an ADA swinging bench, and water fountain, estimated at $216,000 plus engineering. Donaldson Park: The grant award will provide $100,000 to match the City's $75,000 from the capital improvement budget, sourced from liquor store revenue, to replace and expand the Donaldson Park play equipment. F.LEGAL CONSIDERATION: The City Attorney has reviewed the grant agreement and will be available to answer questions. ALTERNATIVE RECOMMENDATION(S): None PRINCIPAL PARTIES EXPECTED AT MEETING: None ATTACHMENTS: Description Type HC Youth Activities Resolution Resolution Letter HC Youth Activities Grant Agreement Contract/Agreement RESOLUTION NO. RESOLUTION AUTHORIZING THE CITY OF RICHFIELD TO ACCEPT A YOUTH ACTIVITIES GRANT FROM HENNEPIN COUNTY WHEREAS, the City Council of the City of Richfield is the official governing body of the City of Richfield, Minnesota; and WHEREAS, the Hennepin County Board of Commissioners, via Hennepin County Youth Activities Grants, provides for capital funds to assist local government units of Hennepin County with the development of sports or recreational facilities with the aim of increasing youth access; and WHEREAS, the City submitted applications via the grant program for $100,000 for playground equipment at the forthcoming Pillsbury Plaza and $100,000 for replacement and expansion of playground equipment at Donaldson Park; and WHEREAS, Hennepin County has awarded $100,000 in grant funding for each of these projects, with the cumulative grant award totaling $200,000; and WHEREAS, the City Council has determined that it is in the City’s best interests to accept these grant awards to partially fund the installation of playground equipment at the forthcoming Pillsbury Plaza and the replacement and expansion of playground equipment at Donaldson Park; and WHEREAS, the City of Richfield invests in infrastructure to best serve today’s and tomorrow’s residents, businesses, and visitors; and WHEREAS, the City of Richfield ensures that City services are accessible to people of all races, ethnicities, incomes, and abilities; and WHEREAS, Minnesota Statutes, Section 465.03 requires every acceptance of a grant or devise of real personal property on terms prescribed by the donor be made by resolution by a two-thirds majority of the City Council. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield, Minnesota that the Mayor and City Manager are hereby authorized and directed to take any and all actions required to accept the Hennepin County Youth Activities grant program funds for and on behalf of the City. Adopted by the City Council of the City of Richfield, Minnesota this 10th day of September, 2024. Mary Supple, Mayor ATTEST: Michelle Friedrich, City Clerk Contract No: PR00006274 1 YOUTH ACTIVITIES GRANTS AGREEMENT This Agreement is between the COUNTY OF HENNEPIN, STATE OF MINNESOTA, A-2300 Government Center, Minneapolis, Minnesota 55487 (“COUNTY”), and City of Richfield, 636 East 66th Street, Richfield, Minnesota 55423, a local governmental unit (“GRANTEE”). Recitals A. Minnesota Statutes Section 473.757, subd. 2 authorizes COUNTY to make grants for youth activities and youth and amateur sports within Hennepin County with certain funds collected as part of the sales tax authorized in Section 473.757, subd. 10. B. Pursuant to Hennepin County Board Resolution 09-0320R3, COUNTY created the Hennepin County Youth Activities Grants program. With County Board approval, the program annually awards grants for youth sports and activities within Hennepin County. C. GRANTEE applied for a grant award from the Hennepin County Youth Activities Grants program, and COUNTY authorized an award to Grantee for completion of two Projects. This award is to be distributed pursuant to the terms herein. The parties agree as follows: 1. YOUTH ACTIVITY PROJECTS Grantee agrees to complete the following Projects: Project Description Award Period Award Amount Donaldson Park Playground 6/1/2024 – 5/31/2026 $100,000 Pillsbury Plaza Playground 6/1/2024 – 5/31/2026 $100,000 Total Award $200,000 Grantee Contacts Donaldson Park Playground Karl Huemiller, khuemiller@richfieldmn.gov, 612-861-9387 Pillsbury Plaza Playground Kristin Asher, Kasher@richfieldmn.gov, 612-861-9795 2. TERM AND AMOUNT OF GRANT GRANTEE shall complete the Projects and all requirements of this Agreement within the Award Period and submit all required documentation within 30 days of the conclusion of the Award Period unless this Agreement is terminated earlier in accordance with the provisions herein. Contract No: PR00006274 2 3. PROJECT AND RELATED REQUIREMENTS A. GRANTEE shall complete the Projects and related requirements as described in Attachment A, and in GRANTEE’s grant applications on file with COUNTY. B. For each Project, GRANTEE shall submit a Certificate of Completion, as attached in Attachment B, with the final invoice. The Certificate of Project Completion form is completed for projects receiving funding from Hennepin County Youth Activities Grants where a Certificate of Occupancy, per Minnesota Rules 1300.0220, is not required. C. COUNTY may conduct periodic site visits, with or without notice during GRANTEE’s normal hours of operation, to monitor compliance with this Agreement and to confirm completion of the Projects. GRANTEE is responsible for scheduling a final site visit with Grant Administrator or designee after signage is installed and prior to each Project’s completion. D. GRANTEE shall promptly report information about the Projects and other data related to the Projects as may be reasonably requested by COUNTY. E. GRANTEE shall purchase and install signage acknowledging Hennepin County Youth Activities Grants Program as a project funder. Signage must be reviewed and approved by COUNTY prior to purchase. Signage placement must be reviewed and approved by COUNTY prior to installation. F. GRANTEE shall notify COUNTY of grant opening, ribbon cutting, or other public events related to the opening of the play structures. Event details will be communicated to COUNTY in writing no later than 10 business days prior to the event. 4. GRANT DISBURSEMENT GRANTEE shall be reimbursed for allowable expenses directly incurred as a result of GRANTEE’s completion of the Projects. All reimbursable expenses under this Agreement will not exceed the Total Award. Upon completion of the Projects, GRANTEE shall invoice COUNTY for costs and payments actually incurred by GRANTEE in completing the Projects. GRANTEE shall submit invoices on forms furnished by COUNTY. GRANTEE shall submit the invoice no later than 30 days after each Projects completion. GRANTEE shall also submit receipts, other supporting documentation related to the Grant Requirements, and a Certificate of Project Completion, as attached in Attachment B. Payments shall be made pursuant to the provisions herein and COUNTY’s then applicable payment policies, procedures, rules, and directions. COUNTY is not responsible for remedying fraudulent or unauthorized payments requested in GRANTEE’s name. Contract No: PR00006274 3 Unless the parties otherwise agree, COUNTY shall have no obligation to reimburse or pay GRANTEE any amount: (i) for any expenditures, costs, or expenses incurred prior to the commencement date stated in Section 1 of this Agreement; or (ii) for any expenditures, costs, or expenses that the COUNTY determines are not directly related to the Projects. If GRANTEE’s expenditures, costs, and expenses associated with the Projects exceed the Grant Funds, GRANTEE shall be solely responsible for payment of those amounts without reimbursement by COUNTY. Reimbursable expenses are limited to the actual cost of the Projects and may be less than the amount of the Total Award. COUNTY may withhold from any payment due to GRANTEE any amount which is due and owing COUNTY under this or any other agreement between the parties due to overpayment or as a result of an audit. 5. NO EMPLOYMENT RELATIONSHIP GRANTEE’s personnel and/or subcontractors engaged to perform any work required by this Agreement will have no contractual relationship with COUNTY and will not be considered employees of COUNTY. COUNTY shall not be responsible for any claims related to or on behalf of any of GRANTEE’s personnel, including without limitation, claims that arise out of employment or alleged employment under the Minnesota Unemployment Insurance Law (Minnesota Statutes Chapter 268) or the Minnesota Workers’ Compensation Act (Minnesota Statutes Chapter 176) or claims of discrimination arising out of applicable law, against GRANTEE, its officers, agents, contractors, or employees. Such personnel or other persons shall neither accrue nor be entitled to any compensation, rights, or benefits of any kind from COUNTY, including, without limitation, tenure rights, medical and hospital care, sick and vacation leave, workers’ compensation, unemployment compensation, disability, severance pay, and retirement benefits. 5. NON-DISCRIMINATION A. In accordance with COUNTY’s policies against discrimination, GRANTEE shall not exclude any person from full employment rights nor prohibit participation in or the benefits of any program, service or activity on the grounds of any protected status or class, including but not limited to race, color, creed, religion, national origin, sex, gender expression, gender identity, age, disability, marital status, sexual orientation, or public assistance status. No person who is protected by applicable law against discrimination shall be subjected to discrimination. B. COUNTY encourages GRANTEE to develop and implement a policy promoting diversity, equity, and inclusion in GRANTEE’s workplace. Contract No: PR00006274 4 6. INDEMNIFICATION GRANTEE shall defend, indemnify, and hold harmless COUNTY, its present and former officials, officers, agents, volunteers and employees from any liability, claims, causes of action, judgments, damages, losses, costs, or expenses, including attorney’s fees, resulting directly or indirectly from any act or omission of GRANTEE, a subcontractor, anyone directly or indirectly employed by them, and/or anyone for whose acts and/or omissions they may be liable in the performance of this Agreement, and against all loss by reason of the failure of GRANTEE to perform any obligation under this Agreement. For clarification and not limitation, this obligation to defend, indemnify and hold harmless includes but is not limited to any liability, claims or actions resulting directly or indirectly from alleged infringement of any copyright or any property right of another, the employment or alleged employment of GRANTEE personnel, the unlawful disclosure and/or use of protected data, or other noncompliance with the requirements of these provisions. 7. INSURANCE Each party warrants that it has a purchased insurance or a self-insurance program sufficient to meet its liability obligations and, at a minimum, to meet the maximum liability limits of Minnesota Statutes Chapter 466. This provision shall not be construed as a waiver of any immunity from liability under Chapter 466 or any other applicable law. 8. DUTY TO NOTIFY GRANTEE shall promptly notify COUNTY of any demand, claim, action, cause of action or litigation brought against GRANTEE, its employees, officers, agents or subcontractors, which arises out of this Agreement. GRANTEE shall also notify COUNTY whenever GRANTEE has a reasonable basis for believing that GRANTEE and/or its employees, officers, agents or subcontractors, and/or COUNTY, might become the subject of a demand, claim, action, cause of action, administrative action, criminal arrest, criminal charge or litigation arising out of this Agreement. 9. RECORDS – AVAILABILITY/ACCESS Subject to the requirements of Minnesota Statutes section 16C.05, subd. 5, COUNTY, the State Auditor, or any of their authorized representatives, at any time during normal business hours, and as often as they may reasonably deem necessary, shall have access to and the right to examine, audit, excerpt, and transcribe any books, documents, papers, records, etc., which are pertinent to the accounting practices and procedures of GRANTEE and involve transactions relating to this Agreement. GRANTEE shall maintain these materials and allow access during the period of this Agreement and for six (6) years after its expiration, cancellation or termination. Contract No: PR00006274 5 10. SUCCESSORS, SUBCONTRACTING AND ASSIGNMENTS A. GRANTEE binds itself, its partners, successors, assigns and legal representatives to COUNTY for all covenants, agreements, and obligations herein. B. GRANTEE shall not assign, transfer, or pledge this Agreement and/or the Projects, whether in whole or in part, nor assign any monies due or to become due to it without the prior written consent of COUNTY. A consent to assign shall be subject to such conditions and provisions as COUNTY may deem necessary, accomplished by execution of a form prepared by COUNTY and signed by GRANTEE, the assignee and COUNTY. Permission to assign, however, shall under no circumstances relieve GRANTEE of its liabilities and obligations under the Agreement. C. As required by Minnesota Statutes section 471.425, subd. 4a, GRANTEE shall pay any subcontractor within ten (10) days of GRANTEE’s receipt of payment from COUNTY for undisputed services provided by the subcontractor, and GRANTEE shall comply with all other provisions of that statute. 11. MERGER, MODIFICATION AND SEVERABILITY A. The entire Agreement between the parties is contained herein and supersedes all oral agreements and negotiations between the parties relating to the subject matter. All items that are referenced or that are attached are incorporated and made a part of this Agreement. If there is any conflict between the terms of this Agreement and referenced or attached items, the terms of this Agreement shall prevail. B. Any alterations, variations or modifications of the provisions of this Agreement shall only be valid when they have been reduced to writing as an amendment to this Agreement signed by the parties. Except as expressly provided, the substantive legal terms contained in this Agreement, including but not limited to Indemnification, Insurance, Merger, Modification and Severability, Default and Cancellation/Termination or Minnesota Law Governs may not be altered, varied, modified or waived by any change order, implementation plan, scope of work, development specification or other development process or document. C. If any provision of this Agreement is held invalid, illegal or unenforceable, the remaining provisions will not be affected. Contract No: PR00006274 6 12. CANCELLATION/TERMINATION A. This Agreement may be cancelled/terminated with or without cause by COUNTY upon thirty (30) days’ written notice. COUNTY will not reimburse any Project expenses incurred by GRANTEE following notice of cancellation/termination. B. Upon written notice, COUNTY may immediately suspend or cancel/terminate this Agreement in the event any of the following occur: (i) COUNTY does not obtain anticipated funding from an outside source for this project; (ii) funding for this project from an outside source is withdrawn, frozen, shut down, is otherwise made unavailable or COUNTY loses the outside funding for any other reason; or (iii) COUNTY determines, in its sole discretion, that funding is, or has become, insufficient. COUNTY is not obligated to pay for any Project expenses incurred after the notice and effective date of the suspension or cancellation/termination. In the event COUNTY suspends, cancels or terminates this Agreement pursuant to this paragraph, COUNTY shall pay any amount due and payable prior to the notice of suspension or cancellation/termination except that COUNTY shall not be obligated to pay any amount as or for penalties, early termination fees, charges, time and materials for the Project not yet incurred by Grantee. C. GRANTEE has an affirmative obligation, upon written notice by COUNTY that this Agreement may be suspended or cancelled/terminated, to follow reasonable directions by COUNTY, or absent directions by COUNTY, to exercise a fiduciary obligation to COUNTY, before incurring or making further costs, expenses, obligations or encumbrances arising out of or related to this Agreement. 13. SURVIVAL OF PROVISIONS Provisions that by their nature are intended to survive the term or cancellation of this Agreement do survive such term or cancellation. Such provisions include but are not limited to: INDEPENDENT CONTRACTOR; INDEMNIFICATION; RECORDS-AVAILABILITY/ACCESS; CANCELLATION; and MINNESOTA LAW GOVERNS. 14. GRANT ADMINISTRATION Anna Carpenter, Youth Activities Grants Coordinator, or successor (“Grant Administrator”) shall manage this Agreement on behalf of COUNTY and serve as liaison between COUNTY and GRANTEE. 15. NOTICES Unless the parties otherwise agree in writing, any notice or demand which must be given or made by a party under this Agreement, or any statute or ordinance shall be in writing and shall be sent registered or certified mail. Notices to COUNTY shall be sent to the County Administrator with a copy to the originating COUNTY department at the address given in the opening paragraph of this Agreement. Notice to GRANTEE shall be sent to Contract No: PR00006274 7 the address stated in the opening paragraph of this Agreement or to the address stated in GRANTEE’s Form W-9 provided to COUNTY. 16. CONFLICT OF INTEREST GRANTEE affirms that to the best of GRANTEE’s knowledge, GRANTEE’s involvement in this Agreement does not result in a conflict or potential conflict of interest with any party or entity which may be affected by the terms of this Agreement. Should any conflict or potential conflict of interest become known to GRANTEE, GRANTEE shall immediately notify COUNTY of the conflict or potential conflict. A conflict or potential conflict may, in COUNTY’s discretion, be cause for cancellation or termination of this Agreement. 17. MEDIA OUTREACH GRANTEE shall notify COUNTY, prior to publication, release, or occurrence of any Outreach (as defined below). The parties shall coordinate to produce collaborative and mutually acceptable Outreach. For clarification and not limitation, all Outreach shall be approved by COUNTY, by and through its Public Relations Officer or their designee(s), prior to publication or release. As used herein, the term “Outreach” shall mean all media, social media, news releases, external facing communications, advertising, marketing, promotions, client lists, civic/community events or opportunities, and/or other forms of outreach created by, or on behalf of, GRANTEE (i) that reference or otherwise use the term “Hennepin County” or any derivative thereof; or (ii) that directly or indirectly relate to, reference, or concern the County of Hennepin, this Agreement, the Grant Requirements performed hereunder, or COUNTY personnel, including but not limited to COUNTY employees and elected officials. 18. MINNESOTA LAWS GOVERN The laws of the state of Minnesota shall govern all questions and interpretations concerning the validity and construction of this Agreement and the legal relations between the parties and their performance. The appropriate venue and jurisdiction for any litigation will be those courts located within the County of Hennepin, state of Minnesota. Litigation, however, in the federal courts involving the parties will be in the appropriate federal court within the state of Minnesota. THIS PORTION OF PAGE INTENTIONALLY LEFT BLANK Contract No: PR00006274 8 COUNTY ADMINISTRATOR APPROVAL Reviewed for COUNTY by the County Attorney's Office: {{Sig_es_:signer3:signature}} {{userstamp3_es_:signer3:stamp}} Reviewed for COUNTY by: {{Sig_es_:signer4:signature}} {{userstamp4_es_:signer4:stamp}} Document Assembled by: {{Sig_es_:signer1:signature}} {{userstamp1_es_:signer1:stamp}} {{Exh_es_:signer1:attachment:label("Attachments")}} COUNTY OF HENNEPIN STATE OF MINNESOTA By: {{Sig_es_:signer5:signature}} {{userstamp5_es_:signer5:stamp}} Contract No: PR00006274 9 GRANTEE GRANTEE warrants that the person who executed this Agreement is authorized to do so on behalf of GRANTEE as required by applicable articles, bylaws, resolutions or ordinances.* By: {{Sig_es_:signer2:signature}} {{userstamp2_es_:signer2:stamp}} {{ ttl_es_:signer2:title}} *GRANTEE represents and warrants that it has submitted to COUNTY all applicable documentation (articles, bylaws, resolutions or ordinances) that confirms the signatory's delegation of authority. Documentation is not required for a sole proprietorship. Contract No: PR00006274 10 ATTACHMENT A: Project Deliverables Item Description Due Date Project GRANTEE shall complete the Projects, Donaldson Park Playground and Pillsbury Plaza Playground, as described in GRANTEE’s grant application on file with COUNTY. By May 31, 2026 Signage GRANTEE shall purchase and install signage acknowledging Hennepin County Youth Activities Grants as a Project funder. Signage must be reviewed and approved by COUNTY prior to purchase. Signage placement must be reviewed and approved by COUNTY prior to installation. Prior to final site visit Final site visit GRANTEE is responsible for scheduling a final site visit for each Project with Grant Administrator or designee. After installation of signage and prior to Project completion Final invoice Upon completion of each Project and related requirements, GRANTEE shall invoice COUNTY for costs and payments actually incurred by GRANTEE in completing the Projects. Allowable expenses include capital costs related to the Projects. GRANTEE shall submit invoices on forms furnished by COUNTY. GRANTEE shall submit the invoice no later than 30 days after each Project’s completion. GRANTEE shall also submit receipts and other supporting documentation related to the Grant Requirements. After completion of site visit Certificate of Completion With the final invoice, GRANTEE shall submit a Certificate of Project Completion for each Project, as attached in Attachment B. The Certificate of Project Completion form is completed for projects receiving funding from Hennepin County Youth Activities Grants where a Certificate of Occupancy, per Minnesota Rules 1300.0220, is not required. Submitted with final invoice Contract No: PR00006274 11 ATTACHMENT B: Certificate of Project Completion Certificate of Project Completion I hereby certify that: 1. The facility/structure listed below is not subject to the conditions of Minnesota Rules 1300.0220. 2. This document shall serve in lieu of a Certificate of Occupancy. 3. The construction of the facility is completed as outlined in contract PR00006274 with Hennepin County. 4. The facility is safe to be occupied by the public. 5. The required signage acknowledging grant funding from the Hennepin County Youth Activities Grants program, and placement of the signage, has been approved by COUNTY and has been installed per county guidelines. Facility Address: ___________________________________________________ PIN (if applicable): _________________________________________________ Legal Description: __________________________________________________ Zoning District: ____________________________________________________ Owner Name: City of Richfield Address: 636 East 66th Street, Richfield, Minnesota 55423 Phone: (612) 861-9700 Comments: _______________________________________________________ Name of Grant Recipient: City of Richfield ____________________________________ _____________________________ Name of Authorized Official (print) Title ____________________________________ _____________________________ Signature Date AGENDA SECTION:CONSENT CALENDAR AGENDA ITEM #4.H. STAFF REPORT NO. 119 CITY COUNCIL MEETING 9/10/2024 REPORT PREPARED BY:Julie Urban, Asst. Community Development Director DEPARTMENT DIRECTOR REVIEW:Melissa Poehlman, Community Development Director 8/29/2024 OTHER DEPARTMENT REVIEW: CITY MANAGER REVIEW: Katie Rodriguez, City Manager 9/4/2024 ITEM FOR COUNCIL CONSIDERATION: Consider extending American Rescue Plan Act Professional Services Agreement with the Conflict Resolution Center to November 15, 2024. EXECUTIVE SUMMARY: On March 22, 2023, the City Council approved a Professional Services Agreement (Agreement) with the Conflict Resolution Center (CRC) using $30,000 in American Rescue Plan Act (ARPA) funds. The Council later extended the Agreement until September 30, and CRC is seeking an additional extension through mid- November. The CRC provides conflict resolution training, restorative circles, resource navigation, and mediation services for apartment residents. CRC has spent $15,408.56 of ARPA funds to-date, with $14,591.44 remaining. Building relationships with apartment managers has taken more time and proven more challenging than anticipated. As a result, CRC shifted their efforts to offering eviction prevention seminars, focusing on conflict coaching, connecting with renters through local events like Unity in the Community, and working with participants of the Kids@Home Program. They are requesting an extension until November 15, 2024, to continue this work. With the contract extension, the organization will still be within the required spending deadlines. ARPA rules require all funds to be committed by December 31, 2024 and spent by December 31, 2026. RECOMMENDED ACTION: By motion: Approve a resolution authorizing the Mayor and City Manager to execute an amendment to the Professional Services Agreement with the Conflict Resolution Center, extending the contract end- date to November 15, 2024. BASIS OF RECOMMENDATION: A.HISTORICAL CONTEXT The City was allocated $3.972 million in Coronovirus Local Fiscal Recovery Funds under ARPA in 2021 to assist the City in the recovery from the COVID-19 pandemic. The Council allocated $420,000 of these funds to social services agencies for direct service to community members disproportionately impacted by the pandemic. On December 15, 2022, the City issued a Request for Proposals (RFP) for $150,000 of ARPA social services funds, seeking proposals from non-profit organizations that provide services and activities that help mitigate the negative impacts caused by the pandemic on economically disadvantaged Richfield community members. Several priorities were identified for the funds, including: promoting housing security and stability, promoting healthy childhood environments, promoting healthy and safe living environments, promoting economic stability, improving healthy food access, building strong communities, and reducing racial disparities. On March 14, 2024, the Council approved Professional Service Agreements with seven non-profit organizations, including CRC, awarding $160,000 in ARPA funds. On February 28, 2024, the Council extended the Agreement with CRC until September 30, 2024. B.EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS ARPA funds were specifically dedicated to address equity by focusing on the needs of residents disproportionately impacted by the COVID-19 pandemic. People disproportionately impacted included Black, Indigenous, and People of Color (BIPOC) and people with low incomes. To-date, CRC has served 26 households and 85% were households identifying as BIPOC. The Agreement is for services consistent with the City's strategic plan initiatives: Community Development (maintaining affordability) and Equity and Inclusion. C.POLICIES (resolutions, ordinances, regulations, statutes, exc): The final ARPA rules provide flexibility to the City in determining how to spend the funds, and the Council determined that it was important to provide some direct support to the community and to those community members disproportionately impacted by the pandemic. D.CRITICAL TIMING ISSUES: ARPA funds must be obligated by December 31, 2024 and spent by December 31, 2026. The proposed end-date allows sufficient time to reprogram any unspent funds, if necessary. CRC attended events over the summer and would like to continue the work begun into the Fall. E.FINANCIAL IMPACT: $420,000 in ARPA funds were designated for social services. Through the first two quarters of 2024, $326,969 has been committed and $212,049 spent. F.LEGAL CONSIDERATION: The proposed extension meets required commitment and expenditure deadlines. ALTERNATIVE RECOMMENDATION(S): Decide not to extend the contract. PRINCIPAL PARTIES EXPECTED AT MEETING: NA ATTACHMENTS: Description Type Resolution Resolution Letter Agreement Amendment Contract/Agreement RESOLUTION NO. ______ RESOLUTION APPROVING AN AMENDMENT TO AMERICAN RESCUE PLAN ACT PROFESSIONAL SERVICES AGREEMENT WITH CONFLICT RESOLUTION CENTER WHEREAS, Congress adopted the American Rescue Plan Act in March 2021 (“ARPA”), which included $65 billion in recovery funds for cities across the country; and WHEREAS, on June 28, 2022, the City of Richfield received its final allocation of ARPA funds in the amount of $1,986,423.23, bringing the total amount of ARPA funds received by the City to $3,972,846.46; and WHEREAS, on March 22, 2022, the City Council awarded $120,000 in ARPA funds to VEAP and Cornerstone Advocacy Services for immediate pandemic relief social service needs; and WHEREAS, on September 13, 2022, the City Council approved various project proposals for ARPA funds and designated and additional $300,000 to social services; and WHEREAS, on December 15, 2022, the City issued a Request for Proposals (RFP) seeking proposals from non-profit organizations to provide social services and activities to community members negatively impacted by the COVID-19 pandemic; and WHEREAS, on March 14, 2023, the City approved Professional Service Agreements in the amount of $201,854.56 to seven organizations, including the Conflict Resolution Center, to provide services and activities consistent with the priorities of the City’s RFP; and WHEREAS, on February 27, 2024, The City Council approved an Agreement amendment for Conflict Resolution Center, extending the Agreement period until September 30, 2024; and WHEREAS, Conflict Resolution Center has requested an additional Agreement extension until November 15, 2024, to enable them to complete the services proposed in their contract; and NOW, THEREFORE, BE IT RESOLVED, as follows: 1. The City Council agrees to extend Conflict Resolution Center’s contract to November 15, 2024. 2. The Mayor and the City Manager are hereby authorized to execute an amended Agreement granting this extension. 3. This resolution shall be in full force and effect as of the date hereof. 2 Adopted by the City Council of the City of Richfield, Minnesota this 10th day September, 2024. Mary B. Supple, Mayor ATTEST: Michelle Friedrich, City Clerk SECOND AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT This Second Amendment (the “Amendment”) is made as of the 10th day of September, 2024, by and between the City of Richfield, a public body corporate and politic under the laws of the State of Minnesota (the “City”), a public body corporate and politic under the laws of the State of Minnesota, and Conflict Resolution Center, Inc. (the “Contractor”), a Minnesota nonprofit corporation. This Amendment amends the Professional Services Agreement, dated March 14, 2023 (the “Original Agreement”). The Original Agreement, as amended by this Amendment is referred to herein as the “Agreement,” WITNESSETH: WHEREAS, pursuant to the Original Agreement, the Contractor agreed to provide services to the HRA; and WHEREAS, the parties wish to amend the Agreement as hereinafter set forth. NOW, THEREFORE, in consideration of the premises and mutual obligations of the parties under the Agreement and this Amendment, the parties hereby agree that the Agreement is amended as follows: 1. Amendment to Item 1: Effective Date, Term, and Period of Performance. The end of the Effective Date is extended to November 15, 2024. 2. Confirmation of Agreement. Except as specifically amended herein, the Agreement is hereby ratified and confirmed, and remains in full force and effect. The Contractor having signed this Amendment, and the City having duly approved this Amendment on September 10, 2024, and pursuant to such approval and the proper City officials having signed this contract, the parties hereto agree to be bound by the provisions herein set forth. CITY OF RICHFIELD By: Mayor By: City Manager CONFLICT RESOLUTION CENTER By: ______________________________ Executive Director AGENDA SECTION:CONSENT CALENDAR AGENDA ITEM #4.I. STAFF REPORT NO. 120 CITY COUNCIL MEETING 9/10/2024 REPORT PREPARED BY:Jamie Haefner, Human Resources Manager DEPARTMENT DIRECTOR REVIEW:Sack Thongvanh, Assistant City Manager OTHER DEPARTMENT REVIEW: CITY MANAGER REVIEW: Katie Rodriguez, City Manager 9/4/2024 ITEM FOR COUNCIL CONSIDERATION: Consider the approval of a resolution pertaining to filing of the Pay Equity Report with the Minnesota Management and Budget Department. EXECUTIVE SUMMARY: In 1983 the State of Minnesota passed and enacted legislation known as the Comparable Worth Act. The act applies to jobs in the state service and was intended to assess, identify and eliminate discriminatory pay practices that paid males a greater wage than similarly situated females were paid for work of the same comparative value. In 1984, the statute was amended to include certain political subdivisions of the state, including cities such as Richfield. Since that 1984 amendment, Richfield along with other cities in the state, continue to be required to periodically assess and report pay for male and female positions in the City service according to comparative job value and commensurate pay. These reports have typically been required by the state to be filed every 3 years and must be submitted to each respective cities governing body and signed by its mayor prior to submission. The latter requirement was to assure that city councils were aware that the report was being submitted for compliance review by the State of Minnesota. Official results are typically reported back to each respective city in a few months. With respect to the Compliance Report submitted to the City Council and filed with the State of Minnesota in August, 2024, the following explanation may give you greater clarity into how the compliance is determined and how the City fared. I) General Job Classification Information This simply identifies how many job classes there are within the City service that are male dominated, female dominated or balanced between males and females. For example, the Job Classification of Public Works Worker is dominated by males, while the Job Classification of Administrative Assistant is dominated by females. Other Job Classifications like Naturalist are equally populated by males and females. Some Job Classifications have only one individual holding that job at the time of filing the report and the Job Classification is listed by that person’s gender. II) Statistical Analysis Test The Statistical Analysis Test is perhaps the most critical assessment of whether a jurisdiction is paying females and males relatively equally for jobs of comparable worth. The pay range data for every job in the City is entered into a software program created by the State that predicts the appropriate pay range of each job based on the point value of the job and the salary ranges of all the jobs in the City using a statistical regression analysis. The program looks to identify if a disproportional number of female dominated jobs fall below the predicted pay range as compared to the male dominated jobs. The results of that test are displayed in the Underpayment Ratio. If the result of that test is 80% or less, the City would fail the test and essentially would have to modify/raise its pay structure for a number of female dominated job classifications so that the salary structure would meet the 80% standard. In Richfield's case, the Underpayment Ratio is 120.9957%. That clearly means that Richfield is not underpaying female employees as compared to male employees. The T Test Results are not applicable to Richfield, as they only pertain to jurisdictions that fall below the 80% threshold in the Underpayment Ratio. III) Salary Range Test The Salary Range Test is a measure of how long (years) it takes an individual to get from starting pay to top pay for each job classification. In Richfield, as is the norm for most governmental pay plans, employees progress through pay steps to get from the start to the top of their respective pay grades. The aim of this test is to measure if it is unacceptably longer to make that progression in a female dominated job classification as compared male dominated job classifications. In Richfield's case, the average time is fairly similar, 3.17 for males and 3.72 for females. So Richfield's Salary Range Test is 85.15%, where any score over 80% is passing. IV) Exceptional Service Pay Test This test measures other service pay such as Longevity, which is additional pay given for achieving a certain number of years of service. Richfield eliminated Longevity Pay for most employees in the early 1990's. As a result, there are very few employees who can earn Longevity Pay. In fact, the number of employees is so low that according to the State guidelines, the test result for Richfield is deemed to be 0%, which of course is a passing grade. Again, thus far we only have preliminary results and the final report from the State is not due for several weeks. If the City were to be found not to be in compliance, adjustments would immediately be made to our pay plans. However, at this juncture, it appears that we are compliant. RECOMMENDED ACTION: Consent to fully submit the 2024 Pay Equity Report. BASIS OF RECOMMENDATION: A.HISTORICAL CONTEXT B.EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS Pay Equity ensures equal pay for equal work and identifies areas of disparity in regards to gender. Richfield is currently in compliance. C.POLICIES (resolutions, ordinances, regulations, statutes, exc): D.CRITICAL TIMING ISSUES: E.FINANCIAL IMPACT: F.LEGAL CONSIDERATION: ALTERNATIVE RECOMMENDATION(S): PRINCIPAL PARTIES EXPECTED AT MEETING: ATTACHMENTS: Description Type Pay Equity Compliance Report Backup Material Pay Equity Resolution Resolution Letter Compliance Report Jurisdiction:Richfield Report Year:2024 6700 Portland Avenue South Case:1 - 2024 DATA (Private (Jur Only)) Richfield, MN 55423 Contact:Jamie Haefner Phone:(612) 861-9704 E-Mail:jhaefner@richfieldmn.g ov The statistical analysis, salary range and exceptional service pay test results are shown below. Part I is general information from your pay equity report data. Parts II, III and IV give you the test results. For more detail on each test, refer to the Guide to Pay Equity Compliance and Computer Reports. I. GENERAL JOB CLASS INFORMATION Male Classes Female Classes Balanced Classes All Job Classes # Job Classes 42 43 15 100 # Employees 118 72 110 300 Avg. Max Monthly Pay per employee 7542.81 6332.68 6672.54 II. STATISTICAL ANALYSIS TEST A. Underpayment Ratio = 120.9957 * Male Classes Female Classes a. # At or above Predicted Pay 16 21 b. # Below Predicted Pay 26 22 c. TOTAL 42 43 d. % Below Predicted Pay (b divided by c = d)61.90 51.16 *(Result is % of male classes below predicted pay divided by % of female classes below predicted pay.) B. T-test Results Degrees of Freedom (DF) = 188 Value of T = -0.624 a. Avg. diff. in pay from predicted pay for male jobs = 3 b. Avg. diff. in pay from predicted pay for female jobs = 60 III. SALARY RANGE TEST = 85.15 (Result is A divided by B) A. Avg. # of years to max salary for male jobs = 3.17 B. Avg. # of years to max salary for female jobs = 3.72 IV. EXCEPTIONAL SERVICE PAY TEST = 0.00 (Result is B divided by A) A. % of male classes receiving ESP = 0.00 * B. % of female classes receiving ESP = 0.00 *(If 20% or less, test result will be 0.00) Page 1 of 1 8/7/2024 3:13:03 PM RESOLUTION NO. _____ RESOLUTION PERTAINING TO FILING OF THE PAY EQUITY REPORT WITH THE MINNESOTA MANAGEMENT AND BUDGET DEPARTMENT WHEREAS, State statutes require that every municipality file a report with the Minnesota Management and Budget Department once every three years to indicate equitable pay relationships between male and female employees; and WHEREAS, this jurisdiction is submitting a pay equity implementation report to the Minnesota Management and Budget Department as required by the Local Government Pay Equity Act, Minnesota Statutes 471.991 to 471.999; and WHEREAS, this report has been completed and seems to indicate that Richfield male and female pay relationships are in compliance with the Pay Equity Act; and WHEREAS, Richfield must file a report with the State of Minnesota based on data as of December 31, 2023. NOW, THEREFORE, BE IT RESOLVED that the City shall accept the findings of the Pay Equity Report and complete submission to the Minnesota Management and Budget Department. Adopted by the City Council of the City of Richfield, Minnesota this 10th day of September 2024. _____________________________ Mary Supple, Mayor ATTEST: ___________________________ Michelle Friedrich, City Clerk AGENDA SECTION:OTHER BUSINESS AGENDA ITEM #6. STAFF REPORT NO. 124 CITY COUNCIL MEETING 9/10/2024 REPORT PREPARED BY:Kumud Verma, Finance Director DEPARTMENT DIRECTOR REVIEW: OTHER DEPARTMENT REVIEW: CITY MANAGER REVIEW: Katie Rodriguez, City Manager 9/4/2024 ITEM FOR COUNCIL CONSIDERATION: Receipt of the City of Richfield Annual Financial Report for the fiscal year ended December 31, 2023. EXECUTIVE SUMMARY: As required by state law all general purpose local governments must be audited in accordance with U.S. generally accepted auditing standards by a firm of licensed certified public accountants. In addition, state law also requires that local governments publish within six months of the close of each fiscal year a complete set of financial statements presented in conformance with U.S. generally accepted accounting standards unless a formal extension is applied for and accepted. The City requested and was granted an extension this year to August 16, 2024. Accordingly, the City's auditing firm, BerganKDV, Ltd. has completed the annual audit of the City's financial records and has issued an unmodified opinion on those records for the fiscal year ended December 31, 2023. The financial statements will be published locally and have already been submitted to the Government Finance Officers Association for the Certificate of Achievement for Excellence in Financial Reporting program. In addition, the annual report has been filed with the Office of the State Auditor pursuant to State law. Therefore, staff presents to the City Council, the Annual Financial Report for fiscal year ended December 31, 2023. RECOMMENDED ACTION: By Motion: Accept the Annual Financial Report of the City for the year ended December 31, 2023. BASIS OF RECOMMENDATION: A.HISTORICAL CONTEXT The City's auditing firm, BerganKDV, Ltd. has completed the annual audit of the City's financial records for the fiscal year ended December 31, 2023. As part of the audit, BerganKDV, Ltd. has issued an unmodified opinion on the City's financial statements for the year ending December 31, 2023. A representative of BerganKDV, Ltd. will be present at the tonight's Council meeting to make a brief presentation on the 2023 financial information and answer questions. In addition, the Annual Report was submitted to the State of Minnesota pursuant to State law and to the Government Finance Officers Association for the Certificate of Achievement for Excellence in Financial Reporting program. B.EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS C.POLICIES (resolutions, ordinances, regulations, statutes, exc): The action that should be taken at the September 10, 2024 City Council meeting is the official receipt of the December 31, 2023 City of Richfield Annual Financial Report by the City Council. The City's auditor has performed an audit of the City's financial records for the year ended December 31, 2023 and prepared reports to the City Council concerning legal compliance and internal controls. D.CRITICAL TIMING ISSUES: Action on this item is requested at the September 10, 2024 City Council meeting as there is a reporting deadline with the State of Minnesota. E.FINANCIAL IMPACT: F.LEGAL CONSIDERATION: The Annual Report has been submitted to the State of Minnesota, pursuant to State law. The Annual Report will be published in the Sun Current. ALTERNATIVE RECOMMENDATION(S): None PRINCIPAL PARTIES EXPECTED AT MEETING: Representative from BerganKDV, Ltd. ATTACHMENTS: Description Type Annual Comprehensive Financial Report for Fiscal Year 2023 Backup Material 2023 Richfield Communications Letter Backup Material 2023 Schedule of Expenditure of Federal Awards and Independent Auditors Report Backup Material CITY OF RICHFIELD RICHFIELD, MINNESOTA ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE FISCAL YEAR ENDED DECEMBER 31, 2023 PREPARED BY: FINANCE DEPARTMENT Member GFOA of U.S. and Canada City of Richfield Table of Contents Page Introductory Section Letter of Transmittal 1 City Officials 9 Organizational Chart 11 Financial Section Independent Auditor's Report 15 Management's Discussion and Analysis 19 Basic Financial Statements Government-wide Financial Statements Statement of Net Position 32 Statement of Activities 34 Fund Financial Statements Governmental Funds Balance Sheet 38 Reconciliation of the Balance Sheet to the Statement of Net Position 41 Statement of Revenues, Expenditures and Changes in Fund Balances 42 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 44 Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - General Fund 45 Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Ice Arena Special Revenue Fund 46 Elections Special Revenue Fund 47 Proprietary Funds Statement of Net Position 48 Statement of Revenues, Expenses and Changes in Net Position 50 Statement of Cash Flows 51 Fiduciary Funds Statement of Fiduciary Net Position 53 Statement of Changes in Fiduciary Net Position 54 Notes to the Financial Statements 55 Required Supplementary Information Schedule of Changes in Total OPEB Liability 102 Schedule of City's Proportionate Share of Net Pension Liability - General Employees Retirement Fund 104 Schedule of City's Proportionate Share of Net Pension Liability - Public Employees Police and Fire Retirement Fund 104 Schedule of City Contributions - General Employees Retirement Fund 105 Schedule of City Contributions - Public Employees Police and Fire Retirement Fund 105 Notes to Required Supplementary Information 106 Combining and Individual Fund Financial Statements and Schedules Nonmajor Governmental Funds Combining Balance Sheet 114 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 115 City of Richfield Table of Contents Page Financial Section Combining and Individual Fund Financial Statements and Schedules (Continued) Nonmajor Special Revenue Funds Subcombining Balance Sheet 116 Subcombining Statement of Revenues, Expenditures and Changes in Fund Balances 120 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Liquor Contributions Special Revenue Fund 124 Tourism Admin Special Revenue Fund 125 Communications Special Revenue Fund 126 Drug/Forfeiture Special Revenue Fund 127 Public Safety Compliance Special Revenue Fund 128 Recreation Contribution Special Revenue Fund 129 Nature Center Contribution Special Revenue Fund 130 Public Health Grants Special Revenue Fund 131 Wood Lake Half Marathon Special Revenue Fund 132 Utility Franchise Fees Special Revenue Fund 133 Opioid Settlement Special Revenue Fund 134 Recreation Special Program Special Revenue Fund 135 Swimming Pool Special Revenue Fund 136 Special Facility Special Revenue Fund 137 General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 139 Internal Service Funds Combining Statement of Net Position 144 Combining Statement of Revenues, Expenses and Changes in Net Position 146 Combining Statement of Cash Flows 148 Supplementary Financial Information Housing and Redevelopment Authority Combined Balance Sheet 152 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 153 Housing Choice Vouchers Financial Data Schedules – Balance Sheet 154 Housing Choice Vouchers Financial Data Schedules – Income Statement 155 Economic Development Authority Balance Sheet 156 Statement of Revenues, Expenditures and Changes in Fund Balances 157 Statistical Section (Unaudited) Table Page Financial Trends Net Position by Component 1 160 Changes in Net Position 2 162 Fund Balances of Governmental Funds 3 166 Changes in Fund Balances of Governmental Funds 4 168 Revenue Capacity Assessed Value and Estimated Actual Value of Taxable Property 5 170 Property Tax Rates - Direct and Overlapping Governments 6 172 Principal Property Taxpayers 7 173 City of Richfield Table of Contents Table Page Statistical Section (Unaudited) (Continued) Revenue Capacity (Continued) Property Tax Levies and Collections 8 174 Ratios of Outstanding Debt by Type 9 175 Ratios of General Bonded Debt Outstanding 10 176 Debt Capacity Computation of Direct and Overlapping Debt 11 177 Legal Debt Margin Information 12 178 Revenue Bond Coverage 13 180 Demographic and Economic Information Demographic and Economic Statistics 14 181 Principal Employers 15 182 Operating Information Full-time Equivalent City Government Employees by Function 16 183 Operating Indicators by Function 17 184 Capital Asset Statistics by Function 18 185 INTRODUCTORY SECTION CITY OF RICHFIELD RICHFIELD, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2023 6700 PORTLAND AVENUE, RICHFIELD, MINNESOTA 55423 612.861.9700 FAX: 6122.861.9749 www.richfieldmn.gov AN EQUAL OPPORTUNITY EMPLOYER 1 MAYOR MARY SUPPLE CITY COUNCIL SHARON CHRISTENSEN SEAN HAYFORD OLEARY SIMON TRAUTMANN BEN WHALEN CITY MANAGER KATIE RODRIGUEZ The Honorable Mayor, Members of the City Council, and Citizens of the City of Richfleld, Minnesota State law requires that all general-purpose local governments publish within six months of the close of each flscal year a complete set of flnancial statements presented in conformance with U.S. generally accepted accounting principles (GAAP) and audited in accordance with U.S. generally accepted auditing standards by a flrm of licensed certifled public accountants. Pursuant to that requirement, we hereby issue the annual comprehensive flnancial report of the City of Richfleld for the flscal year ended December 31, 2023. This report consists of management’s representations concerning the flnances of the City of Richfleld. Consequently, management assumes full responsibility for the completeness and reliability of all the information presented in this report. To provide a reasonable basis for making these representations, management of the City of Richfleld has established a comprehensive internal control framework that is designed both to protect the government’s assets from loss, theft, misuse and to compile sufficient reliable information for the preparation of the City of Richfleld’s flnancial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their beneflts, the City of Richfleld’s comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the flnancial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this flnancial report is complete and reliable in all material respects. The City of Richfleld’s flnancial statements have been audited by BerganKDV, a flrm of licensed certifled public accountants. The goal of the independent audit was to provide reasonable assurance that the flnancial statements of the City of Richfleld for the flscal year ended December 31, 2023, are free of material misstatement. The independent audit involved examining on a test basis, evidence supporting the amounts and disclosures in the flnancial statements: assessing the accounting principles used and signiflcant estimates made by management; and evaluating the overall flnancial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unmodifled opinion that the City of Richfleld’s flnancial statements for the flscal year ended December 31, 2023, are fairly presented in conformity with GAAP. The independent auditor’s report is presented as the flrst component of the flnancial section of this report. August 7, 2024 2 The independent audit of the flnancial statements of the City of Richfleld was part of a broader, federally mandated “Single Audit” designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the flnancial statements, but also, on the audited government’s internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards. Those reports are available in the City of Richfleld’s separately issued Special Purpose Audit Reports. GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic flnancial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement MD&A and should be read in conjunction with it. The City of Richfleld’s MD&A can be found immediately following the report of the independent auditors. Profile of the Government The City was incorporated on February 26, 1908. Since 1964, the City has operated under a council/manager form of government, as authorized by its charter, and exists under the laws of the State of Minnesota. The City has a population of 36,994 (2020 Census) and covers an area of approximately seven square miles. Located in Hennepin County, Richfleld is the flrst suburb south of Minneapolis. Richfleld is bordered on the north by the Crosstown Highway 62; bordered on the east by the Minneapolis-St. Paul International Airport; bordered on the south by Interstate 494; and bordered on the west by Xerxes Avenue and the City of Edina. In addition, Interstate 35W, the major north/south thoroughfare in the Twin City area, runs north/south through the middle of Richfleld. The City of Richfleld provides a full range of services, including police and flre protection, the construction and maintenance of streets and other infrastructure, and recreational activities. The City of Richfleld also operates four municipal liquor stores, water and sewer utility, storm water utility, a two-sheet ice arena, a municipal swimming pool and a mini golf course. The annual budget serves as the foundation for the City of Richfleld’s flnancial planning and control. All departments of the City are required to submit requests for appropriation to the City Manager. The City Manager uses these requests as the starting point for developing a proposed budget. The City Manager then presents this proposed budget to the City Council for review prior to September 15. The Council is required to hold public hearings on the proposed budget and to adopt a flnal budget by no later than the last date established by law for the County Auditor to levy taxes. Budget-to-actual comparisons are provided in this report for each individual governmental fund for which an appropriated annual budget has been adopted. For the general fund and the ice arena fund this comparison is presented in the Required Supplementary Information section. For nonmajor governmental funds with appropriated annual budgets, this comparison is presented in the combining and individual fund statements and schedules. August 7, 2024 3 Factors Affecting Financial Condition Richfleld was initially developed as a residential community. Many residents work at the adjacent airport, in the downtown Minneapolis-St. Paul area or on the I-494 strip. Richfleld's commercial/industrial base is comparatively small when looking at other Twin City metropolitan area communities. When viewing the total estimated market value of the community, approximately 69% of the market value is comprised of residential properties, 17% apartments, and only 14% commercial/industrial property. Despite the limited commercial/industrial tax base, approximately 15,500 workers commute into the city compared to 19,100 who work outside the city according to 2019 U.S. Census Bureau data. The City continues to build a more diversifled tax base, including more commercial development. However, over 99% of the land area in Richfleld is already developed. Commercial development in Richfleld is a more complex process that requires extensive redevelopment and often the use of tax increment flnancing assistance. Since 1975, the City has created twenty-one tax increment districts. These tax increment districts were formed to help transform areas which are becoming market obsolete into a more vital commercial tax base. The City has transformed itself as a result of this redevelopment which includes not only commercial, but residential developments. Consequently, as the tax increment districts decertify, the City will realize the full market value beneflt of these districts. The City has had one district decertifled in 1993, one in 1996, one in 2002, a fourth district decertifled in 2010, with a flfth district decertifled in 2012, and two more decertifled in 2019. In the current TIF districts, the market value has increased by 460%. In addition to the City’s efforts in commercial redevelopment, several housing programs have been established to encourage reinvestment in the City’s housing stock. The City enjoys an AA+ bond rating and an Aa2 bond rating from Standard and Poor’s and Moody’s respectively. Long-term Financial Planning The Metropolitan Council requires all cities in the seven-county metropolitan area to have a Comprehensive Plan and State law requires cities to update their plans every 10 years. The Comprehensive Plan guides development and redevelopment and addresses changes likely to occur due to various social and market forces. The City’s 2040 Comprehensive Plan was adopted in 2020. In addition, the City engages in long-term flnancial and capital planning on an annual basis. The objective of this process is to provide a framework for decision making required to identify and implement strategies that will assure long-term community viability. Accordingly, outcomes of the process include promotion of long-term community affordability and livability, reinvesting in the City’s housing stock to position the City to compete with other communities, addressing transportation impacts within the City, establish a flnancial framework to maintain and replace the City’s physical and technical infrastructure, and review options and opportunities to improve delivery of City services. August 7, 2024 4 Relevant Financial Policies The City has adopted a set of flnancial management policies that focus on such areas as capital budgeting, revenue policies, debt management, general fund balances, cash and investments, risk management and operating budgets. The City has established a fund balance policy for the general fund with a goal of maintaining an unassigned fund balance of 40% of general fund expenditures. At the end of 2023, the unassigned fund balance of the general fund is at 39.8% of general fund expenditures. Major Initiatives Major initiatives in 2023 included the following: Right Of Way Improvements: • 77th Street Underpass - This project extends 77th Street under Trunk Highway 77, connecting to the 24th Avenue Interchange at I-494. This project provides regional access to the Minneapolis- St. Paul International Airport and to the Mall of America. The project also completes the last link in the local ring route that, together with the additional access is needed for access changes along I-494. The total estimated cost is $24,210,000. Construction began in 2021 and was substantially completed in 2023, with the exclusion of a few minor punch list items. • 65th Street Reconstruction – This project consists of a reconstruction of 65th Street from 66th Street to Nicollet Avenue, including renewal/replacement of underground utilities and additional storm water capacity to improve system response to substantial rain events. The streetscape improvements include the addition of a sidewalk on the south side of the road and a trail on the north side, as well as a boulevard to allow for winter snow clearing of those features. The total estimated project cost is $12,900,000, excluding an unanticipated $800,000 change order for a soil retention system. Construction began in 2022 and was substantially completed in 2023. • I-494 Project – In coordination with the City, MnDOT is constructing improvements to the I-494 corridor between Hwy 77 and Hwy 169, and will be minimizing congestion issues along the corridor by removing local access to I-494 at Nicollet Ave and 12th Ave and improving access at Portland Ave. The project includes the addition of E-Z Pass Lanes for east and westbound traffic on I-494, a fiyover ramp at I-494 and I-35W, a new pedestrian bridge that will cross I-494 at Chicago Ave, and reconstruction of various frontage roads throughout Richfleld. The estimated cost of the project is $377 million dollars, with Richfleld’s share totaling approximately $2.6 million. Construction began in 2023 and is expected to be completed in 2026. August 7, 2024 5 Major Initiatives (Continued) Right Of Way Improvements: (Continued) • Nicollet Avenue Reconstruction – In coordination with the City, Hennepin County will be reconstructing Nicollet Avenue from 77th St to 66th St. In addition to the reconstruction of the road itself, this project includes renewal/replacement of underground utilities, and new traffic calming infrastructure. The streetscape improvements include new and improved pedestrian and bicycle accommodation along the corridor. The total estimated project cost is anticipated to be $21,000,000, with the city contributing $10,000,000 to that amount. Project design started in 2023 and construction is expected to begin in 2026. • Sanitary Sewer Lining – This project is an ongoing reinvestment to line the sanitary sewer system throughout the City, as most of the sewer system consists of clay sewer pipe. The project lined approximately 19,300 linear feet of clay sanitary sewer pipe. The cost of the project was $670,830.80. The annual project was started and completed in 2023. • Pavement Management – The City has improved their pavement management program since the completion of the 6-Year Mill and Overlay Project using RoadAI software, and consistent road rehabilitation methods. In 2023, the City completed a concrete program which focused on the replacement of concrete curb and gutter, sidewalks, and pedestrian ramps. The work was completed in 2023 with a cost of $20,370. The City also completed a pavement rejuvenation project, which added pavement rejuvenator to a total of 103,000 square yards of roadway. The cost of this project was $112,270. The City anticipates a crack sealing project in 2024 to address the longitudinal and transverse cracking on roads throughout the City, with an estimated cost of $120,000. • Active Transportation Plan – The City completed their revised Active Transportation Plan in January 2024. The plan allocates a total of $280,000 annually toward pedestrian, bicyclist, and ADA improvements. The City also secured an infrastructure grant that was approximately $236,000 to construct RRFB’s at 66th St and Richfleld Parkway, and to reconstruct and improve the pedestrian ramps at that location. The City is currently evaluating the best methods to implement these funds, with the hope of starting work in the next year. • Safe Routes to School Planning – The City continues to work on their Safe Routes to School Planning and has secured several grants and funding for numerous projects throughout the City. These projects include improving pedestrian crossings, installing a separated bike lane, and constructing new sidewalk in several locations in Richfleld. The total amount of funding secured for SRTS was approximately $1,261,000, which has minimal local match and includes some funding for design assistance on projects. Using those funds, several projects are anticipated to be constructed in 2024 and 2025. August 7, 2024 6 Major Initiatives (Continued) Right Of Way Improvements: (Continued) • Funding Applications – The City applied for several grants in 2024 to secure funding for future projects in the City, which includes improving pedestrian sidewalks and trails, a roadway reconstruction and an intersection reconstruction that would also include a trail connection. While funding has not yet been formally secured, the City is anticipating funding of $4,600,000 for 3 of the 5 projects that were submitted. The City originally applied for 5 projects with a total amount of funding of $14,000,000. Project selection and grant awarding is anticipated to occur in July of 2024, with construction of these projects likely happening in 2025 and beyond. The City continues to look for additional funding for future projects. Commercial Redevelopment and Housing Initiatives High interest rates added to the challenges of high labor and material costs to slow redevelopment in 2023. Projects/programs that progressed in 2023 include: • Construction of the RF64 townhome project (along 17th Avenue between 63rd and 65th Street) flnished up the full redevelopment of this site is now complete and includes 64 townhomes and 237 market-rate apartments. • North Bay Companies continued to work toward construction of the approved mixed-use project at 101 66th Street East (Emi). The project, which includes 80 apartments and 2,600 square feet of ground fioor retail, is now expected to begin construction in 2024. • Construction of the Lynvue at 65th Street & Lyndale Avenue wrapped up in 2023. The building includes 157 new apartments and 8,000 square feet of ground fioor retail space. • Richfleld Flats, a proposal for 55 low-income housing tax credit units was approved in 2022 but failed to secure tax credits in 2023. • Plans for a 40-unit affordable housing project (Aster Commons) by Beacon Interfaith Collaborative were approved for a site at 66th Street and Portland Avenue. Construction is anticipated in 2025. • The City continues to operate several very successful programs that encourage reinvestment in the City’s housing stock. These programs include, but are not limited to, incentive loan programs for remodeling homes to higher values, funding assistance for the replacement of small substandard homes with larger new construction, partnerships with non-proflt builders and developers like Habitat for Humanity, and a flrst-time homebuyer program speciflcally targeted at current renters. August 7, 2024 7 Major Initiatives (Continued) Right Of Way Improvements: (Continued) • The Richfleld Economic Development Authority added an Economic Development Manager position in 2023. This position will focus on business development and the vitality of Richfleld’s commercial and downtown areas. • A new Small Business SAC Assistance Program was created to help eligible new or expanding businesses with the fees associated with Sewer Availability Charges (SAC). • In 2023, the EDA continued to partner with the Center for Energy and Efficiency and provide rebates to 11 local businesses to make energy-related improvements. Rebates totaled $15,510. Awards and Acknowledgments To be awarded a Certiflcate of Achievement, a government unit must publish an easily readable and efficiently organized annual report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certiflcate of Achievement is valid for a period of one year only. We believe that our current annual report continues to meet the Certiflcate of Achievement Program requirements, and we are submitting it to GFOA to determine its eligibility for the certiflcate. The preparation of this report would not have been accomplished without the efficient and dedicated services of the entire staff of the flnance department. We express our appreciation to all members of the department who assisted and contributed to its preparation. We also thank the Mayor and members of the City Council for their interest and support in planning and conducting the flnancial operations for the City of Richfleld in a responsible and progressive manner. Respectfully submitted, Katie Rodriguez City Manager 8 9 City of Richfield Elected Officials and Administration December 31, 2023 Name Title Term Ends Mary Supple Mayor January 12, 2027 Sharon Christensen Council Member January 12, 2027 Simon Trautmann, Ward 1 Council Member January 14, 2025 Sean Hayford Oleary, Ward 2 Council Member January 14, 2025 Ben Whalen, Ward 3 Council Member January 14, 2025 Name Title Katie Rodriguez City Manager Kumud Verma Finance Director Dustin Leslie City Clerk City Officials Administrative Staff 10 11 City of Richfield Organizational Chart Citizens City Council Executive City Manager City Attorney Assistant City Manager Finance Public Safety Fire Public Works Recreation Services Community Development Administration Assessing Support Services Administration Recreation Administration Planning & Zoning Human Resources Police Operations Engineering Park and Recreation Inspections City Clerk Emergency Services Street Maintenance/Fores try Wood Lake Nature Center Special Facilities Government Buildings Information Technologies Park Maintenance Ice Arena Self Insurance/ Risk Management Water Utility Swimming Pool Deputy Registrar Liquor Operations Stormwater Utility & Equipment Central Garage & Equipment Communications Waste Water Utility 12 13 FINANCIAL SECTION CITY OF RICHFIELD RICHFIELD, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2023 14 15 Independent Auditor's Report Honorable Mayor and Members of the City Council City of Richfield Richfield, Minnesota Report on the Audit of the Financial Statements Opinions We have audited the financial statements of the governmental activities, the business-type activities, the discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Richfield, Minnesota, as of and for the year ended December 31, 2023, and the related notes to the financial statements, which collectively comprise the City of Richfield's basic financial statements as listed in the Table of Contents. In our opinion, the accompanying financial statements present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Richfield, Minnesota, as of December 31, 2023, and the respective changes in financial position and, where applicable, cash flows thereof, and the budgetary comparison for the General Fund, Ice Arena Special Revenue Fund, and Elections Special Revenue Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management for the Financial Statements The City of Richfield's management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. 16 Responsibilities of Management for the Financial Statements (Continued) In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we: Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, no such opinion is expressed. Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit. 17 Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis, which follows this report letter, and Required Supplementary Information as listed in the Table of Contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Account Standards Board (GASB), who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the Required Supplementary Information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Richfield's basic financial statements. The combining and individual fund financial statements and schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information included in the Annual Comprehensive Financial Report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor's report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. 18 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated August 7, 2024, on our consideration of the City of Richfield's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City of Richfield's internal control over financial reporting and compliance. St. Cloud, Minnesota August 7, 2024 19 City of Richfield Management’s Discussion and Analysis As management of the City of Richfield, we offer readers of the City of Richfield’s financial statements this narrative overview and analysis of the financial activities of the City of Richfield for the fiscal year ended December 31.2023. 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 thru 6 of this report. Financial Highlights The assets and deferred outflows of resources of the City of Richfield exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $109,873,101 (net position). Of this amount, $13,791,042 may be used to meet the governments ongoing obligations to citizens and creditors. The government’s total net position increased by $11,598,600. As of the close of the current fiscal year, the City of Richfield’s governmental funds reported combined ending fund balances of $25,786,255. Of this total amount, $61,730 is classified as nonspendable, $8,986,815 as restricted, $8,212,034 as committed by City Council action and $8,525,676 as unassigned. At the end of the current fiscal year, the general fund balance of $11,486,988 included $61,640 as nonspendable and $11,425,348 as unassigned. The City of Richfield’s total bonded debt decreased by $5,057,418 (8.6%) during the current fiscal year from $68,341,298 to $63,283,880. Overview of the Financial Statements This discussion and analysis are intended to serve as an introduction to the City of Richfield’s basic financial statements. The City of Richfield’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. Government-Wide Financial Statements. The government-wide financial statements are designed to provide readers with a broad overview of the City of Richfield’s finances, in a manner like a private-sector business. The statement of net position presents information on all the City of Richfield’s assets and deferred outflows of resources and liabilities and deferred inflows of resources, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City of Richfield is improving or deteriorating. The statement of activities presents information showing how the government’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 (e.g., uncollected taxes and earned but unused vacation leave). 20 City of Richfield Management’s Discussion and Analysis Overview of the Financial Statements (Continued) Government-Wide Financial Statements. (Continued) Both government-wide financial statements distinguish functions of the City of Richfield that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City of Richfield include general government, public safety, fire, community development, public works, and parks and recreation. The business-type activities of the City of Richfield include a municipal liquor operation, water and sewer utility, and a storm sewer utility. The government-wide financial statements include not only the City of Richfield itself (known as the primary government), but also the Richfield Housing and Redevelopment Authority and the Richfield Economic Development Authority, both discretely presented component units. Financial information for these component units is reported separately from the financial information presented for the primary government itself. 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 of Richfield, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All the funds of the City of Richfield can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental Funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near- term inflows and outflows of spendable resources, as well as on 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 fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City of Richfield maintains twenty-five individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the general fund, ice arena fund, elections fund, improvement bonds fund, and capital improvements fund, all of which are considered major funds. Data from the other seventeen 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 of Richfield adopts an annual appropriated budget for its general and special revenue funds. A budgetary comparison statement has been provided for these funds to demonstrate compliance with this budget. 21 City of Richfield Management’s Discussion and Analysis Overview of the Financial Statements (Continued) Proprietary Funds. The City of Richfield 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 of Richfield uses enterprise funds to account for its liquor operation, water and sewer utility and for its storm sewer utility, all of which are considered to be major funds of the City. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City of Richfield’s various functions. The City of Richfield uses internal service funds to account for its central garage & equipment, for its information technology systems, its self-insurance program, its building services function, and its compensated absences liability. Because all of these services predominantly benefit governmental rather than business-type functions, they have been included within governmental activities in the government- wide financial statements. 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. Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City of Richfield’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. Notes to the Financial Statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. Other Information. Required supplementary information can be found following the Notes to the Financial Statements. The combining statements referred to earlier in connection with nonmajor governmental funds, internal service funds and fiduciary funds are presented immediately following the required supplementary information. Government-Wide Financial Analysis As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the City of Richfield, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $109,873,101 at the close of the most recent fiscal year. 22 City of Richfield Management’s Discussion and Analysis Government-Wide Financial Analysis (Continued) By far the largest portion of the City of Richfield’s net position (86%) reflects its investment in capital assets (e.g., land, buildings, machinery, and equipment); less any related debt used to acquire those assets that is still outstanding. The City of Richfield uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City of Richfield’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. 2023 2022 increase (decrease)2023 2022 increase (decrease) Assets Current and other assets 55,544,284$ 62,798,500$ (7,254,216)$ 16,334,682$ 17,291,509$ (956,827)$ Capital assets, net of depreciation 108,963,626 94,992,988 13,970,638 34,589,375 33,081,958 1,507,417 Total Assets 164,507,910 157,791,488 6,716,422 50,924,057 50,373,467 550,590 Deferred Outflows of Resources Deferred other postemployment benefits resources 670,569 804,805 (134,236) 36,677 43,149 (6,472) Deferred pension resources 17,943,045 21,953,287 (4,010,242) 492,573 884,709 (392,136) Total Deferred Outflows of Resources 18,613,614 22,758,092 (4,144,478) 529,250 927,858 (398,608) Liabilities Long-term liabilities outstanding 64,439,527 94,602,990 (30,163,463) 16,401,225 19,823,849 (3,422,624) Other liabilities 12,937,392 8,269,309 4,668,083 3,053,103 1,635,277 1,417,826 Total Liabilities 77,376,919 102,872,299 (25,495,380) 19,454,328 21,459,126 (2,004,798) Deferred Inflows of Resources Deferred pension resources 18,296,757 647,365 17,649,392 673,089 57,193 615,896 Deferred other postemployment benefits resources 1,127,038 1,075,740 51,298 61,644 57,675 3,969 Deferred lease resources 4,792,825 6,127,033 (1,334,208) - - - Advanced appropriations - State shared tax 2,919,130 1,233,587 1,685,543 - - - Total Deferred Inflows of Resources 27,135,750 9,083,725 18,052,025 734,733 114,868 619,865 Net Position Net investment in capital assets 75,377,835 64,217,643 11,160,192 19,177,441 21,550,313 (2,372,872) Restricted 8,636,333 3,964,804 4,671,529 - - - Unrestricted (5,405,313) 411,109 (5,816,422) 12,086,805 8,177,018 3,909,787 Total Net Position 78,608,855$ 68,593,556$ 10,015,299$ 31,264,246$ 29,727,331$ 1,536,915$ Governmental Activities Business-Type Activities An additional portion of the City of Richfield’s net position represents resources that are subject to external restrictions on how they may be used. On December 31, 2023, the City had restricted net position of $8,636,333. The remaining balance of unrestricted net position ($13,791,042) may be used to meet the government’s ongoing obligations to citizens and creditors. The government’s net position reflects an increase of $11,598,600. The increase can be attributed to increases in Capital and Operating grant revenues of $3,358,238, interest earnings of $2,087,186 and increased property tax collections of $1,492,152 in 2023. 23 City of Richfield Management’s Discussion and Analysis Government-Wide Financial Analysis (Continued) Governmental Activities. Governmental activities increased the City of Richfield’s net position by $10,015,299 in 2023. The key elements of this increase are as follows: 2023 2022 increase (decrease)2023 2022 increase (decrease) Revenues Program Revenues Charges for services 5,458,292$ 5,770,345$ (312,053)$ 26,779,708$ 26,257,435$ 522,273$ Operating grants and contributions 3,627,875 1,614,601 2,013,274 - - - Capital grants and contributions 8,372,899 7,027,935 1,344,964 - - - General Revenues Taxes Property taxes 26,039,309 24,547,157 1,492,152 - - - Other taxes 2,258,302 2,249,423 8,879 - - - Grants and contributions not restricted to specific programs 2,038,711 2,334,669 (295,958) 20,000 18,992 1,008 Unrestricted investment earnings 2,165,757 580,838 1,584,919 606,770 104,503 502,267 Gain on sale of capital assets 108,500 26,625 81,875 - 7,176 (7,176) Miscellaneous 78,000 85,525 (7,525) - - - Total Revenues 50,147,645 44,237,118 5,910,527 27,406,478 26,388,106 1,018,372 Expenses General government 4,416,925 4,535,832 (118,907) - - - Public safety 19,165,643 17,406,811 1,758,832 - - - Public works 8,969,774 9,179,955 (210,181) - - - Culture and recreation 5,653,215 5,308,282 344,933 - - - Community development 1,788,215 1,758,662 29,553 - - - Interest on long-term debt 1,290,114 1,380,404 (90,290) - - - Municipal Liquor - - - 12,700,999 13,299,880 (598,881) Water and Sewer Utility - - - 9,330,452 9,343,582 (13,130) Storm Sewer - - - 2,640,186 2,129,905 510,281 Total Expenses 41,283,886 39,569,946 1,713,940 24,671,637 24,773,367 (101,730) Excess befpre Transfers 8,863,759 4,667,172 4,196,587 2,734,841 1,614,739 1,120,102 Transfers 1,197,926 (448,183) 1,646,109 (1,197,926) 448,183 (1,646,109) Change in Net Position 10,061,685 4,218,989 5,842,696 1,536,915 2,062,922 (526,007) Net Position, January 1, restated 69,547,170 64,374,567 (5,497,763) 29,727,331 27,664,409 2,062,922 Net Position, December 31 79,608,855$ 68,593,556$ 11,015,299$ 31,264,246$ 29,727,331$ 1,536,915$ Governmental Activities Business-Type Activities Increase in property tax revenues of $1,492,152. Total expenses increased by $1,713,940 primarily due to an increase in GASB 68 PERA pension expense of $811,588. 24 City of Richfield Management’s Discussion and Analysis Government-Wide Financial Analysis (Continued) $- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 General government Public safety Public works Culture and recreation Community development Interest on long-term debt Revenue & Expense by Program Revenue Expense Charges for services 11% Operating grants and contributions 7% Capital grants and contributions 17% Taxes 57% Grants & contributions unrestricted 4% Unrestricted investment earnings 4% Gain on sale of capital assets 0% Miscellaneous 0% 25 City of Richfield Management’s Discussion and Analysis Government-Wide Financial Analysis (Continued) Business-Type Activities. Business-type activities increased the City’s net position by $1,536,915 in 2023. The increase can be attributed to improved operating performance of all business-type activities in 2023. $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 Municipal Liquor Water and Sewer Utility Storm Sewer Revenues & Expenses by Program Program Revenue Expense Charges for services 98% Grants & contributions unrestricted 0% Unrestricted investment earnings 2% 26 City of Richfield Management’s Discussion and Analysis Financial Analysis of the Government’s Funds As noted earlier, the City of Richfield uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds. The focus of the City of Richfield’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 of Richfield’s financing requirements. Fund balances are identified based on a hierarchy of the constraints placed on the use of financial resources within governmental funds. Accordingly, fund balances are classified as: nonspendable, restricted, committed, assigned, and unassigned. As of the end of the current fiscal year, the City of Richfield’s governmental funds reported combined ending fund balances of $25,786,255 a decrease of $4,428,142 from 2022. This decrease can be attributed to the construction of the 77th Street capital improvement project. Consequently, the year-end balance consists of the following: 0.24% ($61,730) are amounts that are not in spendable form such as prepaid items. 34.85% ($8,986,815) constitutes restricted fund balances which limits the spending of these balances to externally imposed constraints, i.e. debt service covenants. 31.84% ($8,212,034) represents committed fund balances which are determined by resolution of the City Council. Finally, 33.06% or ($8,525,676) consists of balances classified as unassigned, which includes the fund balance of the General Fund and deficit fund balances of other governmental funds. The general fund is the chief operating fund of the City of Richfield. At the end of the current year, the unassigned fund balance of the general fund was $11,425,348 while total fund balance was $11,486,988. As a measure of the general fund liquidity, it may be useful to compare unassigned fund balance to total general fund revenues. Unassigned fund balance represents approximately 40.32% of total general fund revenues and 39.8% of total general fund expenditures. Moreover, the State Auditor has set a standard that unrestricted, unassigned fund balance should be between 35 and 50% of yearly general fund revenues. The City has adopted a policy that strives to maintain a minimum fund balance equal to 40% of total general fund expenditures. At December 31, 2023 the City of Richfield the City is right under the fund balance goal. The City’s fund balance for its general fund increased by $496,598 in 2023. The increase is due to increased investment revenue received in 2023 and general fund expenditures 0.37% over budget projections. The Ice Arena fund reflects an increase in fund balance of $509,541 in 2023. The increase is due to transfers from the General Fund and Capital Improvements Fund. The Elections fund reflects an increase in fund balance of $239,835 in 2023. The increase is due to the GASB 87 requirement for recording lease revenue. The G.O. Improvement Bonds fund has a fund balance of $6,263,293. The fund balance increased in 2023 by $488,246 due to increased property taxes collected. The Capital Improvement fund accounts for public improvements and road right-of-way projects undertaken by the City. This funds fund balance decreased by $7,929,413. The decrease can be attributed to construction costs for the 77th Street project. 27 City of Richfield Management’s Discussion and Analysis Financial Analysis of the Government’s Funds (Continued) The nonmajor governmental funds consist of the City’s Special Revenue funds, the Parks Capital Projects fund and the Redevelopment Bond fund. The combined total of these funds increased by $1,767,051 in 2023. The increase can be attributed to one-time large donations to the Woodlake Nature Center, stronger revenue and positive Swimming Pool operations, and transfers from the Contributions-Liquor fund for park improvements. Proprietary Funds. The City of Richfield’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. Unrestricted net position of the liquor operation at the end of the year amounted to $2,077,943, for the water and sewer utility $6,041,441, and for the storm sewer utility $6,597,942. The total increase in net position for liquor operation, the water and sewer utility, and the storm sewer utility was $502,977, $1,176,772, and $109,013 respectively. Budgetary Highlights General Fund At the end of 2023 the City’s General Fund realized a surplus of $496,598 to its fund balance. This was accomplished through increased investment revenues, and general fund expenditures of 100.37% of projected budget. Capital Asset and Debt Administration Capital Assets. The City of Richfield’s investment in capital assets for its governmental and business type activities as of December 31, 2023 amounts to $143,553,001 (net of accumulated depreciation/amortization). This investment in capital assets includes land, buildings and structures, other improvements, machinery and equipment, infrastructure, and construction in progress. Major capital asset events during 2023 included the following: Construction substantially completed on 65th Street reconstruction. Construction substantially completed on 77th Street underpass project. Progress on the fourth phase of the Water Meter Replacement project with anticipated completion in the first quarter of 2025. 28 City of Richfield Management’s Discussion and Analysis Capital Asset and Debt Administration (Continued) CITY OF RICHFIELD’S CAPITAL ASSETS (Net of Depreciation) 2023 2022 increase (decrease)2023 2022 increase (decrease) Land 9,353,605$ 9,353,605$ -$ 638,673$ 638,673$ -$ Leased equipment (Intangible Right to use amount)73,385 98,545 (25,160) - - - Buildings and structures 29,541,526 30,727,613 (1,186,087) 2,599,293 2,825,545 (226,252) Machinery and equipment 7,681,714 8,203,931 (522,217) 5,240,703 4,806,595 434,108 Other improvements 4,894,243 3,136,659 1,757,584 26,077,060 24,484,278 1,592,782 Streets (infrastructure) 54,250,320 19,286,880 34,963,440 - - - Construction in progress 3,168,833 24,185,755 (21,016,922) 33,646 326,867 (293,221) Total 108,963,626$ 94,992,988$ 13,970,638$ 34,589,375$ 33,081,958$ 1,507,417$ Governmental Activities Business-Type Activities Additional information on the City’s capital assets can be found in Note 1P and Note 4 Capital Assets in the accompanying notes to the basic financial statements. Long-term Debt At the end of the current fiscal year, the City of Richfield had total bonded debt outstanding of $63,283,880. The debt service for the general obligation redevelopment bonds is provided through the collection of tax increments from Hennepin County. On an annual basis tax increment proceeds are transferred to meet annual debt service requirements. The general obligation improvement bonds are serviced by special assessment collections and tax levies. CITY OF RICHFIELD’S OUTSTANDING DEBT General Obligation and Revenue Bonds 2023 2022 increase (decrease)2023 2022 increase (decrease) G.O. Redevelopment Bonds 1,110,000$ 1,925,000$ (815,000)$ -$ -$ -$ G.O. Improvement Bonds 45,635,000 48,690,000 (3,055,000) - - - Revenue Bonds - - - 14,855,000 15,855,000 (1,000,000) Bond Premium 1,165,923 1,293,779 (127,856) 517,957 577,519 (59,562) Total 47,910,923$ 51,908,779$ (3,997,856)$ 15,372,957$ 16,432,519$ (1,059,562)$ Governmental Activities Business-Type Activities 29 City of Richfield Management’s Discussion and Analysis Long-term Debt (Continued) The City of Richfield maintains an AA+ rating from Standard & Poor’s and an “Aa2” rating from Moody’s Investor Service, for general obligation debt. State Statutes limit the amount of general obligation debt a governmental entity may issue to 3% of its total assessed valuation. The current debt limitation for the City of Richfield is $151,855,116, which is more than the City of Richfield’s outstanding general obligation debt. Additional details of the City’s long-term debt activity can be found in Note 6, Long-Term Liabilities, in the accompanying notes to the basic financial statements. Economic Factors and Next Year’s Budgets and Rates The following is an integral part of the City’s planning for and dealing with near-term financial issues: Prior to 2022, the City saw market values increase substantially and interest in redevelopment projects spike. In 2023, as interest rates continued to rise and material and labor costs continued to do the same, redevelopment activity has slowed. A number of projects were completed in 2023 and various affordable housing projects continue to work through the process, however, going forward into 2024 we expect a decrease in permit revenues and redevelopment activities. Requests for Information This financial report is designed to provide a general overview of the City of Richfield’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Office of the Finance Director, City of Richfield, 6700 Portland Avenue South, Richfield, MN 55423. 30 31 GOVERNMENT-WIDE FINANIAL STATEMENTS CITY OF RICHFIELD RICHFIELD, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2023 See notes to basic financial statements. 32 Primary Government Governmental Activities Business-Type Activities Total Housing and Redevelopment Authority Economic Development Authority Assets Cash and investments 41,874,875$ 13,128,781$ 55,003,656$ 18,882,527$ 1,195,047$ Restricted cash - - - - - Property tax receivable 316,752 - 316,752 14,649 5,410 Accounts receivable 1,367,138 3,247,815 4,614,953 8,511 - Interest receivable 183,036 39,507 222,543 51,507 2,874 Notes receivable - - - - - Leases receivable 4,958,060 - 4,958,060 - - Special assessments receivable 502,137 541,673 1,043,810 - - Due from other governments 3,010,755 54,495 3,065,250 160,546 - Internal balances 2,630,521 (2,630,521) - - - Due from component unit 639,110 - 639,110 - - Inventory - 1,717,767 1,717,767 - - Land held for resale - - - 4,579,786 - Prepaid items 61,900 235,165 297,065 7,486 - Long-term second mortgage receivab - - - 2,438,177 - Deferred loan receivable - - - - 1,014,847 Allowance for uncollectivle accounts - - - (2,438,177) (1,014,847) Land and construction in progress 12,522,438 672,319 13,194,757 - Depreciable assets (net of accumulated depreciation/amortization)96,441,188 33,917,056 130,358,244 - - Total assets 164,507,910 50,924,057 215,431,967 23,705,012 1,203,331 Deferred Outflows of Resources Deferred outflows of resources related to pensions 17,943,045 492,573 18,435,618 - - Deferred outflows of resources related to OPEB 670,569 36,677 707,246 - - Total deferred outflows of resources 18,613,614 529,250 19,142,864 - - Total assets and deferred outflows of resources 183,121,524$ 51,453,307$ 234,574,831$ 23,705,012$ 1,203,331$ Component Units City of Richfield Statement of Net Position December 31, 2023 33 Primary Government Governmental Activities Business-Type Activities Total Housing and Redevelopment Authority Economic Development Authority Liabilities Accounts payable 2,400,149$ 725,922$ 3,126,071$ 742,192$ 14,282$ Salaries and benefits payable 805,902 130,127 936,029 - - Deposits payable 708,498 - 708,498 32,938 - Contracts payable - - - - Due to other governments 251,107 713,590 964,697 25,598 - Due to primary government - - - 639,110 - Interest payable 573,943 182,217 756,160 - - Unearned revenue 2,014,003 - 2,014,003 - - Claims and judgements payable 1,183,616 - 1,183,616 Net G.O. bonds payable Payable within one year 4,190,000 1,185,000 5,375,000 - - Payable after one year 43,720,923 14,187,957 57,908,880 - - Lease liability Payable within one year 25,152 - 25,152 - - Payable after one year 48,696 - 48,696 - - Compensated absences payable Payable within one year 669,581 109,932 779,513 - - Payable after one year 1,863,924 248,567 2,112,491 - - Net pension liability Payable after one year 17,017,369 1,866,872 18,884,241 - - Total OPEB liability Payable within one year 115,441 6,314 121,755 - - Payable after one year 1,788,615 97,830 1,886,445 - - Total liabilities 77,376,919 19,454,328 96,831,247 1,439,838 14,282 Deferred Inflows of Resources Deferred inflows of resources related to pensions 18,296,757 673,089 18,969,846 - - Deferred inflows of resources related to OPEB 1,127,038 61,644 1,188,682 - - Advance appropriations - State shared taxes 2,919,130 - 2,919,130 - - Deferred inflows of resources related to leases receivable 4,792,825 - 4,792,825 - - Total deferred inflows of resources 27,135,750 734,733 27,870,483 - - Net Position Net investment in capital assets 75,377,835 19,177,441 87,445,726 - - Restricted for Debt service 5,912,811 - 5,912,811 - - Law enforcement drug forfeitures 288,610 - 288,610 - - Recreation services donations 81,557 - 81,557 - - Wood Lake Nature Center donations 222,532 - 222,532 - - Public Safety Aid 1,604,296 - 1,604,296 - - Public Health assessment 130,903 - 130,903 - - Public Health - opioid settlement 132,082 - 132,082 - - Wood lake Endowment 263,542 - 263,542 - - Capital Projects - - - 9,983,197 - Grants and donations - - - 112,696 - Unrestricted (5,405,313) 12,086,805 13,791,042 12,169,281 1,189,049 Total net position 78,608,855 31,264,246 109,873,101 22,265,174 1,189,049 Total liabilities, deferred inflows of resources, and net position 183,121,524$ 51,453,307$ 234,574,831$ 23,705,012$ 1,203,331$ Component Units City of Richfield Statement of Net Position December 31, 2023 See notes to basic financial statements. 34 Program Revenues Expenses Charges for Services Operating Grants and Contributions Capital Grants and Contributions Primary Government Governmental activities General government 4,416,925$ 1,003,475$ 180,830$ 4,308$ Public safety 19,165,643 508,704 3,018,936 - Public works 8,969,774 343,747 18,744 8,361,165 Culture and recreation 5,653,215 2,420,618 409,365 7,426 Community development 1,788,215 1,181,748 - - Interest on long-term debt 1,290,114 - - - Total governmental activities 41,283,886 5,458,292 3,627,875 8,372,899 Business-type activities Municipal Liqour 12,700,999 13,967,904 - - Water and Sewer Utility 9,330,452 10,429,228 - - Storm Sewer 2,640,186 2,382,576 - - Total business-type activities 24,671,637 26,779,708 - - Total primary government 65,955,523$ 32,238,000$ 3,627,875$ 8,372,899$ Component Units Housing and Redevelopment #VALUE! Authority 8,329,755$ 550$ 2,338,899$ -$ Economic Development Authority 428,715 - - - Total component units 8,758,470$ 550$ 2,338,899$ -$ General revenues Property taxes, levied for general purposes Property taxes, levied for debt service Franchise fees Tax increments Lodging taxes Grants and contributions not restricted to specific programs Unrestricted investment income Miscellaneous Gain (loss) on sale of assets Transfers Total general revenues and transfers Change in net position Net position - beginning Prior period adjustment (See Note 18) Net position - beginning restated Net position - ending Functions/Programs City of Richfield Statement of Activities Year Ended December 31, 2023 35 Governmental Activities Business-Type Activities Total Housing and Redevelopment Authority Economic Development Authority (3,228,312)$ -$ (3,228,312)$ -$ -$ (15,638,003) - (15,638,003) - - (246,118) - (246,118) - - (2,815,806) - (2,815,806) - - (606,467) - (606,467) - - (1,290,114) - (1,290,114) - - (23,824,820) - (23,824,820) - - - 1,266,905 1,266,905 - - - 1,098,776 1,098,776 - - - (257,610) (257,610) - - - 2,108,071 2,108,071 - - (23,824,820) 2,108,071 (21,716,749) - - (5,990,306) - - (428,715) (5,990,306) (428,715) 21,992,920 - 21,992,920 675,485 579,096 4,046,389 - 4,046,389 - - 2,250,588 - 2,250,588 - - - - - 6,686,246 - 7,714 - 7,714 - - 2,038,711 20,000 2,058,711 - - 2,165,757 606,770 2,772,527 720,403 36,230 78,000 - 78,000 165,609 2,400 108,500 - 108,500 - - 1,197,926 (1,197,926) - - - 33,886,505 (571,156) 33,315,349 8,247,743 617,726 10,061,685 1,536,915 11,598,600 2,257,437 189,011 68,593,556 29,727,331 98,320,887 20,007,737 1,000,038 (46,386) - (46,386) - - 68,547,170 29,727,331 98,274,501 20,007,737 1,000,038 78,608,855$ 31,264,246$ 109,873,101$ 22,265,174$ 1,189,049$ Primary Government Component Units Net (Expense) Revenues and Changes in Net Position 36 37 FUND FINANCIAL STATEMENTS CITY OF RICHFIELD RICHFIELD, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2023 See notes to basic financial statements. 38 Debt Service General Ice Arena Elections Improvement Bonds Assets Cash and temporary investments 10,366,762$ -$ 1,855,638$ 6,243,400$ Interest receivable 15,338 1,653 68,709 9,548 Property taxes receivable 223,666 - - 89,840 Accounts receivable 188,264 184,802 267,346 - Leases receivable - 101,057 4,586,904 - Due from other funds 1,921,808 - - - Due from other governments 282,562 - 23,097 10,345 Special assessment receivable Delinquent 10,933 - - - Deferred 5,784 - - 133,621 Advances to other funds - - - - Prepaid items 61,640 27 - - Total assets 13,076,757$ 287,539$ 6,801,694$ 6,486,754$ Liabilities Accounts and contracts payable 493,340 59,277 1,545 - Accrued salaries payable 726,881 23,209 - - Deposits payable - - 21,772 - Due to other funds - 1,921,808 - - Due to other governments 126,046 11,848 - - Advances from other funds - 699,465 - - Unearned revenue 3,119 - - - Total liabilities 1,349,386 2,715,607 23,317 - Deferred Inflows of Resources Unavailable revenue - property taxes 223,666 - - 89,840 Unavailable revenue - special assessments 16,717 - - 133,621 Deferred inflows of resources related to leases receivable - 100,874 4,422,842 - Advance appropriations - State shared taxes - - - - Unavailable revenue - State shared taxes - - - - Total deferred inflows of resources 240,383 100,874 4,422,842 223,461 Fund Balances Nonspendable 61,640 27 - - Restricted - - - 6,263,293 Committed - - 2,355,535 - Unassigned 11,425,348 (2,528,969) - - Total fund balances 11,486,988 (2,528,942) 2,355,535 6,263,293 Total liabilities, deferred inflows of resources, and fund balances 13,076,757$ 287,539$ 6,801,694$ 6,486,754$ Special Revenue City of Richfield Balance Sheet - Governmental Funds December 31, 2023 39 Capital Project Capital Improvements Nonmajor Governmental Funds Total Governmental Funds 4,134,886$ 7,713,576$ 30,314,262$ 36,639 21,513 153,400 3,246 - 316,752 6,781 612,028 1,259,221 - 270,099 4,958,060 - - 1,921,808 2,631,401 63,350 3,010,755 2,950 4,961 18,844 215,173 128,715 483,293 - 432,122 432,122 - 63 61,730 7,031,076$ 9,246,427$ 42,930,247$ 1,328,159 57,098 1,939,419 - 8,576 758,666 680,691 6,035 708,498 - - 1,921,808 73,879 10,976 222,749 - 175,540 875,005 2,005,551 5,333 2,014,003 4,088,280 263,558 8,440,148 3,246 - 316,752 218,123 133,676 502,137 - 269,109 4,792,825 2,919,130 - 2,919,130 173,000 - 173,000 3,313,499 402,785 8,703,844 - 63 61,730 - 2,723,522 8,986,815 - 5,856,499 8,212,034 (370,703) - 8,525,676 (370,703) 8,580,084 25,786,255 7,031,076$ 9,246,427$ 42,930,247$ 40 See notes to basic financial statements. 41 City of Richfield Reconciliation of the Balance Sheet to the Statement of Net Position - Governmental Funds December 31, 2023 Total fund balances - governmental funds 25,786,255$ Capital assets used in governmental activities are not current financial resources and, therefore, are not reported as assets in governmental funds. Cost of capital assets 201,741,345 Less accumulated depreciation/amortization (96,883,343) Long-term liabilities, including bonds payable, are not due and payable in the current period and, therefore, are not reported as liabilities in the funds. Long-term liabilities at year-end consist of: G.O. bonds payable (46,745,000) Unamortized bond premiums (1,165,923) Lease liability (73,848) Total OPEB liability (1,870,628) Net pension liability (16,276,736) Delinquent receivables will be collected in subsequent years, but are not available soon enough to pay for the current period's expenditures and, therefore, are deferred in the funds. Property taxes 316,752 Special assessments 18,844 Deferred outflows of resources and deferred inflows of resources are created as a result of various differences related to pensions and OPEB that are not recognized in the governmental funds. Deferred inflows of resources related to pensions (18,029,726) Deferred inflows of resources related to OPEB (1,107,252) Deferred outflows of resources related to pensions 17,747,629 Deferred outflows of resources related to OPEB 658,797 Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. Deferred special assessments 483,293 State shared taxes 173,000 Governmental funds do not report a liability for accrued interest on long-term debt until due and payable. (573,943) The assets and deferred outflows of resources and liabilities and deferred inflows of resources of certain Internal Service Funds are included in governmental activities in the statement of net position. Net position of internal service funds 11,139,708 Allocation to reflection consolidation of internal service fund activities related to enterprise funds 2,630,521 Allocation to reflection consolidation of internal service fund activities related to component unit 639,110 78,608,855$ Total net position - governmental activities Amounts reported for governmental activities in the Statement of Net Position are different because: See notes to basic financial statements. 42 Debt Service General Ice Arena Elections Improvement Bonds Revenues Taxes 21,040,066$ -$ -$ 4,046,389$ Licenses and permits 981,777 - - - Intergovernmental 3,650,861 - - - Charges for services 1,919,962 1,181,050 - - Fines and forfeitures 180,391 - - - Special assessments 4,308 - - 41,055 Interest earnings 659,981 16,676 147,067 120,686 Miscellaneous 49,918 172,014 351,021 - Total revenues 28,487,264 1,369,740 498,088 4,208,130 Expenditures Current Legislative/executive 1,034,837 - 258,253 - Administrative services 959,262 - - - Finance 1,046,114 - - - Public safety 11,133,159 - - - Fire 5,618,697 - - - Community development 1,652,012 - - - Public works 5,064,179 - - - Recreation services 2,209,931 1,250,594 - - Capital outlay Public works - - - - Recreation services - - - - Debt service Principal - - - 3,055,000 Interest and other charges - 9,605 - 1,410,878 Total expenditures 28,718,191 1,260,199 258,253 4,465,878 Excess of revenues over (under) expenditures (230,927) 109,541 239,835 (257,748) Other Financing Sources (Uses) Transfers in 987,525 400,000 - 745,994 Transfers out (260,000) - - - Total other financing sources (uses)727,525 400,000 - 745,994 Net change in fund balances 496,598 509,541 239,835 488,246 Fund Balances Beginning of year 10,990,390 (2,992,097) 2,115,700 5,775,047 Prior period adjustment (See Note 18)- (46,386) - - Beginning of year, restated 10,990,390 (3,038,483) 2,115,700 5,775,047 End of year 11,486,988$ (2,528,942)$ 2,355,535$ 6,263,293$ Special Revenue City of Richfield Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds Year Ended December 31, 2023 43 Capital Project Capital Improvements Nonmajor Governmental Funds Total Governmental Funds 868,400$ 2,258,302$ 28,213,157$ - - 981,777 8,891,772 2,893,859 15,436,492 - 575,990 3,677,002 - 28,494 208,885 126,014 73,604 244,981 577,827 261,140 1,783,377 71,781 378,984 1,023,718 10,535,794 6,470,373 51,569,389 - 778,964 2,072,054 - - 959,262 - - 1,046,114 - 170,216 11,303,375 - - 5,618,697 - - 1,652,012 190,357 - 5,254,536 - 1,031,211 4,491,736 17,926,684 - 17,926,684 - 439,994 439,994 - 815,000 3,870,000 - 57,010 1,477,493 18,117,041 3,292,395 56,111,957 (7,581,247) 3,177,978 (4,542,568) 1,974,932 1,625,000 5,733,451 (2,323,098) (3,035,927) (5,619,025) (348,166) (1,410,927) 114,426 (7,929,413) 1,767,051 (4,428,142) 7,558,710 6,813,033 30,260,783 - - (46,386) 7,558,710 6,813,033 30,214,397 (370,703)$ 8,580,084$ 25,786,255$ See notes to basic financial statements. 44 (4,428,142)$ Capital outlays are reported in governmental funds as expenditures. However, in the Statement of Activities, the cost of those assets is allocated over the estimated useful lives as depreciation expense. Capital outlays 18,252,510 Depreciation/amortization expense (4,199,465) Some expenses are recognized as paid in the governmental funds but recognized as the expense is incurred in the Statement of Activities. Total OPEB liability (77,350) Principal payments on long-term debt are recognized as expenditures in the governmental funds but as an increase in the net position in the Statement of Activities. Bond principal payments 3,870,000 Lease payments 24,979 Governmental funds report the effects of bond premiums and discounts when debt is first issued, whereas these amounts are deferred and amortized in the Statement of Activities. 127,856 Interest on long-term debt in the statement of activities differs from the amount reported in the governmental funds because interest is recognized as an expenditure in the funds when it is due and thus requires use of current financial resources. In the Statement of Activities, however, interest expense is recognized as the interest accrues, regardless of when it is due. 59,523 Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. State shared taxes (2,102,843) Governmental funds recognize pension contributions as expenditures at the time of payment whereas the Statement of Activities factors in items related to pensions on a full accrual perspective. Pension expense (2,071,086) Internal service funds are used by management to charge the costs of certain activities to individual funds. The net revenue (loss) of internal service funds are reported with governmental activities. Investment earnings 382,380 Transfers - net 1,083,500 Gain on sale of capital assets 108,500 Consolidation of internal service fund activities with governmental activities (1,128,895) Delinquent property tax and special assessment receivables will be collected in subsequent years, but are not available soon enough to pay for the current period's expenditures and, therefore, are deferred in the funds. Property taxes 84,454 Special assessments 75,764 10,061,685$ Change in net position - governmental activities Total net change in fund balances - governmental funds Expenditures, and Changes in Fund Balances to the City of Richfield Reconciliation of the Statement of Revenues, Statement of Activities - Governmental Funds Year Ended December 31, 2023 Amounts reported for governmental activities in the Statement of Activities are different because: See notes to basic financial statements. 45 Original Final Actual Amounts Revenues Taxes 21,026,215$ 21,026,215$ 21,040,066$ 13,851$ Special assessments - - 4,308 4,308 Licenses and permits 1,319,495 1,094,810 981,777 (113,033) Intergovernmental 3,544,943 3,553,902 3,650,861 96,959 Charges for services 1,902,618 1,855,551 1,919,962 64,411 Fines and forfeitures 220,000 200,000 180,391 (19,609) Interest earnings 25,000 25,000 659,981 634,981 Miscellaneous 45,580 104,700 49,918 (54,782) Total revenues 28,083,851 27,860,178 28,487,264 627,086 Expenditures Current Legislative/executive 1,148,816 1,114,258 1,034,837 (79,421) Administrative services 1,000,852 991,424 959,262 (32,162) Finance 886,071 1,006,135 1,046,114 39,979 Public safety 11,332,622 11,095,903 11,133,159 37,256 Fire 5,335,950 5,397,355 5,618,697 221,342 Community development 1,781,890 1,753,100 1,652,012 (101,088) Public works 4,946,140 5,006,740 5,064,179 57,439 Recreation services 2,251,430 2,246,971 2,209,931 (37,040) Total expenditures 28,683,771 28,611,886 28,718,191 106,305 Excess of revenues over (under) expenditures (599,920) (751,708) (230,927) 520,781 Other Financing Sources (Uses) Transfers in 859,920 1,011,708 987,525 (24,183) Transfers out (260,000) (260,000) (260,000) - Total other financing sources (uses)599,920 751,708 727,525 (24,183) Net change in fund balances -$ -$ 496,598 496,598$ Fund Balances Beginning of year 10,990,390 End of year 11,486,988$ Variance with Final Budget - Over (Under) Budgeted Amounts City of Richfield Statement of Revenues, Expenditures, and Changes in Fund Balances - Year Ended December 31, 2023 Budget and Actual - General Fund See notes to basic financial statements. 46 City of Richfield Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Ice Arena Special Revenue Fund Year Ended December 31, 2023 Original Final Actual Amounts Revenues Charges for services 1,138,210$ 1,084,550$ 1,181,050$ 96,500$ Interest earnings - - 16,676 16,676 Miscellaneous 61,930 61,930 172,014 110,084 Total revenues 1,200,140 1,146,480 1,369,740 223,260 Expenditures Current Recreation services 1,225,370 1,222,330 1,250,594 28,264 Debt service Interest and other charges 10,970 9,605 9,605 - Capital outlay Culture and recreation - 60,160 - (60,160) Total expenditures 1,236,340 1,292,095 1,260,199 (31,896) Excess of revenues over (under) expenditures (36,200) (145,615) 109,541 255,156 Other Financing Sources Transfers in 350,000 440,000 400,000 (40,000) Net change in fund balances 313,800$ 294,385$ 509,541 215,156$ Fund Balances Beginning of year (2,992,097) Prior period adjustment (46,386) Beginning of year, restated (See Note 18) (3,038,483) End of year (2,528,942)$ Budgeted Amounts Variance with Final Budget - Over (Under) See notes to basic financial statements. 47 City of Richfield Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Elections Special Revenue Fund Year Ended December 31, 2023 Original Final Actual Amounts Revenues Interest earnings 4,000$ 4,000$ 147,067$ 143,067$ Miscellaneous 267,341 377,341 351,021 (26,320) Total revenues 271,341 381,341 498,088 116,747 Expenditures Current General government 139,501 249,061 258,253 9,192 Total expenditures 139,501 249,061 258,253 9,192 Net change in fund balances 131,840$ 132,280$ 239,835 107,555$ Fund Balances Beginning of year 2,115,700 End of year 2,355,535$ Budgeted Amounts Variance with Final Budget - Over (Under) See notes to basic financial statements. 48 Governmental Activities - Municipal Liquor Water and Sewer Utility Storm Sewer Total Internal Service Funds Assets Current assets Cash and temporary investments 1,907,836$ 5,040,870$ 6,180,075$ 13,128,781$ 11,560,613$ Interest receivable 5,339 15,261 18,907 39,507 29,636 Accounts receivable 100 2,602,142 645,573 3,247,815 107,917 Special assessments receivable - 541,673 - 541,673 - Due from other governments 4,027 50,117 351 54,495 - Advances to other funds - - - - 70,176 Inventories 1,717,767 - - 1,717,767 - Prepaid items 21,733 213,406 26 235,165 170 Total current assets 3,656,802 8,463,469 6,844,932 18,965,203 11,768,512 Noncurrent assets Advances to other funds - - - - 372,707 Capital assets not being depreciated Land 499,188 53,550 85,935 638,673 - Construction in progress - - 33,646 33,646 415,457 Capital assets being depreciated Buildings and structures 5,090,656 5,405,689 - 10,496,345 12,333,269 Machinery and equipment 1,067,974 14,328,056 831,285 16,227,315 - Other improvements 253,149 29,986,023 24,278,398 54,517,570 - Less accumulated depreciation (3,552,621) (29,208,753) (14,562,800) (47,324,174) (8,643,102) Net capital assets 3,358,346 20,564,565 10,666,464 34,589,375 4,105,624 Total noncurrent assets 3,358,346 20,564,565 10,666,464 34,589,375 4,478,331 Total assets 7,015,148 29,028,034 17,511,396 53,554,578 16,246,843 Deferred Outflows of Resources Deferred outflows of resources related to pensions 196,400 270,382 25,791 492,573 195,416 Deferred outflows of resources related to OPEB 15,019 21,580 78 36,677 11,772 Total deferred outflows of resources 211,419 291,962 25,869 529,250 207,188 Total assets and deferred outflows of resources 7,226,567$ 29,319,996$ 17,537,265$ 54,083,828$ 16,454,031$ City of Richfield Statement of Net Position - Proprietary Funds December 31, 2023 Business-Type Activities - Enterprise Funds See notes to basic financial statements. 49 Governmental Activities - Municipal Liquor Water and Sewer Utility Storm Sewer Total Internal Service Funds Liabilities Current liabilities Accounts and contracts payable 389,646$ 312,903$ 23,373$ 725,922$ 460,730$ Accrued salaries payable 54,960 69,096 6,071 130,127 47,236 Due to other governments 153,351 560,239 - 713,590 28,358 Accrued interest payable - 84,394 97,823 182,217 - Compensated absences payable 34,250 71,927 3,755 109,932 669,581 Bonds payable due within one year - 628,000 557,000 1,185,000 - Total current liabilities 632,207 1,726,559 688,022 3,046,788 1,205,905 Noncurrent liabilities Compensated absences payable 77,442 162,634 8,491 248,567 1,863,924 Claims and judgements - - - - 1,183,616 Bonds payable - 6,429,075 7,758,882 14,187,957 - Net pension liability 744,364 1,024,758 97,750 1,866,872 740,633 Total OPEB liability 42,646 61,276 222 104,144 33,428 Total noncurrent liabilities 864,452 7,677,743 7,865,345 16,407,540 3,821,601 Total liabilities 1,496,659 9,404,302 8,553,367 19,454,328 5,027,506 Deferred Inflows of Resources Deferred inflows of resources related to pensions 268,376 369,470 35,243 673,089 267,031 Deferred inflows of resources related to OPEB 25,243 36,270 131 61,644 19,786 Total deferred inflows of resources 293,619 405,740 35,374 734,733 286,817 Net Position Net investment in capital assets 3,358,346 13,468,513 2,350,582 19,177,441 4,105,624 Unrestricted 2,077,943 6,041,441 6,597,942 14,717,326 7,034,084 Total net position 5,436,289 19,509,954 8,948,524 33,894,767 11,139,708 Total liabilities, deferred inflows of resources, and net position 7,226,567$ 29,319,996$ 17,537,265$ 54,083,828$ 16,454,031$ Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds (2,630,521)$ Net position of business-type activities 31,264,246$ Business-Type Activities - Enterprise Funds City of Richfield December 31, 2023 Statement of Net Position - Proprietary Funds See notes to basic financial statements. 50 Governmental Activities - Municipal Liquor Water and Sewer Utility Storm Sewer Totals Internal Service Funds Operating Revenues Charges for services 13,935,832$ 10,241,076$ 2,219,957$ 26,396,865$ 4,623,321$ Less: cost of sales (10,170,469) - - (10,170,469) - Total operating revenues 3,765,363 10,241,076 2,219,957 16,226,396 4,623,321 Operating Expenses Personnel services 1,555,580 2,608,184 605,236 4,769,000 1,954,894 Other services and charges 692,895 5,030,552 1,065,331 6,788,778 3,238,612 Depreciation 215,630 1,378,468 713,849 2,307,947 990,004 Total operating expenses 2,464,105 9,017,204 2,384,416 13,865,725 6,183,510 Operating income (loss)1,301,258 1,223,872 (164,459) 2,360,671 (1,560,189) Nonoperating Revenues (Expenses) Intergovernmental - 10,000 10,000 20,000 - Interest earnings 67,573 226,422 312,775 606,770 382,380 Miscellaneous revenues 32,072 188,152 162,619 382,843 146,122 Gain (loss) on sale of asset - - - - 108,500 Interest and amortization expense - (171,674) (211,922) (383,596) - Total nonoperating revenues (expenses)99,645 252,900 273,472 626,017 637,002 Income before capital contributions and transfers 1,400,903 1,476,772 109,013 2,986,688 (923,187) Other Financing Sources (Uses) Transfers in - - - - 1,140,000 Transfers out (897,926) (300,000) - (1,197,926) (56,500) Total other financing sources (uses)(897,926) (300,000) - (1,197,926) 1,083,500 Change in net position 502,977 1,176,772 109,013 1,788,762 160,313 Net Position Beginning of year 4,933,312 18,333,182 8,839,511 32,106,005 10,979,395 End of year 5,436,289$ 19,509,954$ 8,948,524$ 33,894,767$ 11,139,708$ Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds (251,847) Change in net position of business-type activities 1,536,915$ Business-Type Activities - Enterprise Funds City of Richfield Statement of Revenues, Expenses, and Changes in Net Position - Proprietary Funds Year Ended December 31, 2023 See notes to basic financial statements. 51 Governmental Activities - Municipal Liquor Water and Sewer Utility Storm Sewer Total Internal Service Funds Cash Flows - Operating Activities Receipts from customers and users 13,932,784$ 9,705,453$ 2,110,814$ 25,749,051$ 4,584,595$ Payments to suppliers (11,010,289) (4,732,831) (1,076,701) (16,819,821) (3,087,409) Payments to employees (1,648,105) (2,592,468) (566,877) (4,807,450) (1,787,280) Other operating receipts 32,072 188,152 162,619 382,843 146,122 Net cash flows - operating activities 1,306,462 2,568,306 629,855 4,504,623 (143,972) Cash Flows - Noncapital Financing Activities Intergovernmental revenue - 10,000 10,000 20,000 - Receipt of advances to other funds - - - - 68,788 Transfer from other funds - - - - 1,140,000 Transfer to other funds (897,926) (300,000) - (1,197,926) (56,500) Net cash flows - noncapital financing activities (897,926) (290,000) 10,000 (1,177,926) 1,152,288 Cash Flows - Capital and Related Financing Activities Principal paid on debt - (555,000) (445,000) (1,000,000) - Interest paid on debt - (215,316) (249,444) (464,760) - Proceeds from sale of capital assets - - - - 450,238 Acquisition of capital assets - (4,111,251) (92,626) (4,203,877) (1,249,334) Net cash flows - capital and related financing activities - (4,881,567) (787,070) (5,668,637) (799,096) Cash Flows - Investing Activities Interest and dividends received 64,458 220,967 306,236 591,661 367,418 Net change in cash and cash equivalents 472,994 (2,382,294) 159,021 (1,750,279) 576,638 Cash and Cash Equivalents January 1 1,434,842 7,423,164 6,021,054 14,879,060 10,983,975 December 31 1,907,836$ 5,040,870$ 6,180,075$ 13,128,781$ 11,560,613$ City of Richfield Statement of Cash Flows - Proprietary Funds Year Ended December 31, 2023 Business-Type Activities - Enterprise Funds See notes to basic financial statements. 52 Governmental Activities - Municipal Liquor Water and Sewer Utility Storm Sewer Total Internal Service Funds Reconciliation of Operating Income (Loss) to Net Cash Flows - Operating Activities Operating income (loss)1,301,258$ 1,223,872$ (164,459)$ 2,360,671$ (1,560,189)$ Adjustments to reconcile operating income (loss) to net cash flows - operating activities Other revenues 32,072 188,152 162,619 382,843 146,122 Depreciation expense 215,630 1,378,468 713,849 2,307,947 990,004 Net pension liability expense (90,965) (35,025) 30,063 (95,927) 21,705 OPEB liability expense 3,687 2,924 275 6,886 3,464 Accounts receivable (50) (322,459) (117,784) (440,293) (38,726) Special assessments receivable - (163,047) - (163,047) - Due from other governments (2,998) (50,117) 8,641 (44,474) - Prepaid items 738 (205,316) 779 (203,799) 305,060 Inventory (178,578) - - (178,578) - Accounts payable 21,766 (12,054) (12,149) (2,437) 302,002 Due to other governmental units 9,149 515,091 - 524,240 (25,135) Salaries payable 4,802 563 (473) 4,892 (3,004) Compensated absences payable - - - - 145,449 Estimated payable for outstanding claims (10,049) 47,254 8,494 45,699 (430,724) Total adjustments 5,204 1,344,434 794,314 2,143,952 1,416,217 Net cash flows - operating activities 1,306,462$ 2,568,306$ 629,855$ 4,504,623$ (143,972)$ Business-Type Activities - Enterprise Funds City of Richfield Statement of Cash Flows - Proprietary Funds Year Ended December 31, 2023 See notes to basic financial statements. 53 Assets Cash and temporary investments 429,893$ Receivables Accrued interest 37,539 Total assets 467,432$ Liabilities Due to other governments $ 374,291 Total liabilities 374,291 Net Position 93,141$ City of Richfield Statement of Fiduciary Net Position December 31, 2023 Custodial Funds See notes to basic financial statements. 54 Additions Interest earnings 118$ License fee collections for State of Minnesota 21,097,305 Total additions 42,194,728 Deductions Payments to State of Minnesota 21,097,305 Total deductions 42,194,610 Change in net position 118 Net Position Beginning of year 93,023 End of year $ 93,141 City of Richfield Statement of Changes in Fiduciary Net Position Year Ended December 31, 2023 Custodial Funds City of Richfield Notes to Basic Financial Statements 55 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Summary of Significant Accounting Policies The City of Richfield (the City) was incorporated February 26, 1908. Since 1964, the City has operated under a Council-Manager form of government, as authorized by its City Charter. The accounting policies of the City conform to generally accepted accounting principles, as applied to governmental units by the U.S. Governmental Accounting Standards Board (GASB). The following is a summary of the more significant policies: B. Reporting Entity The financial statements present the City and its component units. The City includes all funds, organizations, institutions, agencies, departments, and offices that are not legally separate from such. Component units are legally separate organizations for which the elected officials of the City are financially accountable and are included within the general purpose financial statements of the City because of the significance of their operational or financial relationships with the City. The City is considered financially accountable for a component unit if it appoints a voting majority of the organization's governing body and it is able to impose its will on the organization by significantly influencing the programs, projects, activities, or level of services performed or provided by the organization, or there is a potential for the organization to provide specific financial benefits to, or impose specific financial burdens, on the City. As a result of applying the component unit definition criteria above, certain organizations have been defined and are presented in this report as follows: Blended Component Units - Reported as if they were part of the City. Discretely Presented Component Units - Entails reporting the component unit financial data in a column separate from the financial data of the City. Related Organizations - The relationship of the City with the entity is disclosed. For each of the categories above, the specific entities are identified as follows: Blended Components Units: The City has no blended component units. Discretely Presented Component Units: - Housing and Redevelopment Authority (HRA) in and for the City of Richfield and Economic Development Authority (EDA) in and for the City of Richfield The HRA was established on November 12, 1974, per Minnesota Statute § 462.426 (Minnesota Housing and Redevelopment Act of 1947) and is governed by a five-member commission appointed by the Mayor. The HRA was formed by the City to provide housing and redevelopment assistance to Richfield citizens and businesses. The HRA provides this assistance through the general taxes, the use of Community Development Block Grants, and the establishment of tax increment and tax abatement financing districts. The HRA also operates the Section 8 rental subsidy program as a direct recipient from the Department of Housing and Urban Development. As the City appoints the HRA commission and has the ability to hire or dismiss those persons responsible for its day-to-day operations, the HRA is considered a component unit of the City. City of Richfield Notes to Basic Financial Statements 56 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Reporting Entity (Continued) The EDA was established May 9, 2017 per Minnesota Statutes §§ 469.090 through 469.108 and some but not all of the powers of a housing and redevelopment authority under Minnesota Statutes §§ 469.001 through 469.047. The EDA is governed by a five-member commission. Two commissioners shall be members of the City Council and three commissioners shall be members at large. The three at large commissioners shall be the three at large commissioners of the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota. The EDA was formed to provide resources for economic development in Richfield, including the Kids @ Home program, Transformation Loan program, apartment remodeling programs and business development programing. Financial statements of the HRA can be obtained from the administrative offices at City Hall: Richfield Housing and Redevelopment Authority 6700 Portland Avenue South Richfield, Minnesota 55423 Financial Statements of the EDA can be obtained from the administrative offices at City Hall: Richfield Economic Development Authority 6700 Portland Avenue South Richfield, Minnesota 55423 Related Organizations - The City has no related organizations. C. Government-Wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the primary government and its component units. For the most part, the effect of interfund activity has been removed from these statements. 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 business-type activity is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or business-type activity. 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 business-type activity; and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or business type activity. Taxes and other items not included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. City of Richfield Notes to Basic Financial Statements 57 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. 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 and Fiduciary Fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. The custodial funds report using the economic resources measurement focus and the accrual basis of accounting. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers all revenues, except reimbursement grants, to be available if they are collected within 60 days of the end of the current fiscal period. Reimbursement grants are considered available if they are collected within one year 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 compensated absences, OPEB obligations, and claims and judgments, are recorded only when payment is due. Property taxes, special assessments, intergovernmental revenues, charges for services and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the government. The government reports the following major governmental funds: General Fund – This fund is the government's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. Ice Arena Fund - This fund accounts for the revenues earned and other resources generated by the operation of the City's two sheet ice arena facility. Elections Fund – This fund was established to isolate the large fluctuation over time in election costs from year to year. The fund provides voter registration services, voter information services and election administration. Funding for the costs of elections services is derived from rental revenues from cellular telephone carriers who rent space for their antennas on City infrastructure. Improvement Bond Debt Service Fund – This fund is used for the accumulation of resources for payment of principal and interest for outstanding general obligation issues. Capital Improvement Capital Projects Fund – This fund is used to account for projects related to public improvement within the City. City of Richfield Notes to Basic Financial Statements 58 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) The government reports the following major proprietary funds: Municipal Liquor Fund – This fund accounts for the operations of the four municipal liquor stores operated by the City. Water and Sewer Utility Fund – This fund accounts for the water and sewer service charges which are used to finance the water system and sanitary sewer system operating expenses. Storm Sewer Fund – This fund accounts for storm sewer user fees, which are used to finance storm sewer system operating expenses. Additionally, the government reports the following fund types: Internal Service Funds – These fund account for fleet management, data processing, risk management, building maintenance services, and compensated absences, provided to other funds or departments on a cost reimbursement basis. Custodial Funds – These funds are used to account for the City's collection of fees to be remitted to the State of Minnesota such as building permit-surcharges, snowmobile-boat license fees, and motor vehicle license fees. As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are transactions that would be treated as revenues, expenditures or expenses if they involved external organizations, such as buying goods and services or payments in lieu of taxes, are similarly treated when they involve other funds of the City of Richfield. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the City's enterprise funds, the liquor, water and sewer, and storm sewer funds, and the City's internal service funds are from the sale of product and charges to customers for services. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. When both restricted and unrestricted resources are available for an allowable use, it is the government's policy to use restricted resources first, then unrestricted resources as they are needed. Budgets for the General Fund and Special Revenue Funds, excluding the Public Safety Aid and Wood Lake Endowment Fund, are adopted on a basis consistent with generally accepted accounting principles. Budgetary control for Capital Projects Funds is accomplished through the use of project controls and for the Debt Service Funds by bond indentures. City of Richfield Notes to Basic Financial Statements 59 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) E. Budgets Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditures of monies are recorded in order to reserve that portion of the applicable appropriation, is employed as an extension of formal budgetary integration in the General, Special Revenue, and Capital Projects Funds. Encumbrances outstanding at year-end are reported within restrictions, commitments, or assignments of fund balance, as appropriate, since they do not constitute expenditures or liabilities. At December 31, 2023 there are no significant encumbrances outstanding in any major or nonmajor fund. F. Legal Compliance - Budgets The City follows these procedures in establishing the budgetary data reflected in the financial statement and set forth in Sections 7.05 and 7.06 of the City Charter. 1. The City Manager shall, at a special budget meeting of the Council on or before September 15, submit to the Council a proposed budget and an explanatory budget message in a form and manner as prescribed by the City Charter. 2. At the City Council meeting, where the proposed budget and tax levy is submitted for adoption, the Council shall determine the place and time of the public hearing on the budget. Public hearings are conducted to obtain taxpayer comments. 3. The Council shall adopt the budget no later than the last date established by law for the County Auditor to levy taxes. The budget shall set forth the total for each budgeted fund and each department with such segregation as to objects and purposes of expenditures as the Council deems necessary for purposes of budget control for the General and Special Revenue Funds. 4. Reported budget amounts are as originally adopted or as amended by Council-approved budget transfers. During 2023 the General Fund budget was amended to decrease budgeted revenues by $223,673, decrease budgeted expenditures by $71,885 and increase budgeted transfer in by $151,788. The City Manager is authorized to transfer budgeted amounts between divisions within any department; however, any revisions that alter the total expenditures of any department must be approved by the City Council with formal adoption by resolution. All budgeted appropriations lapse at the end of the year. 5. Expenditures may not legally exceed budgeted appropriations at the total department level. Monitoring of budgets is maintained at the expenditure category (i.e., salaries, wages, and benefits; material, supplies, and services; and capital outlay) within each activity. Budgetary monitoring, by departments or divisions and by category, is required by the City Charter. City of Richfield Notes to Basic Financial Statements 60 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) G. Excess of Expenditures Over Appropriations Expenditures exceeded appropriations (budget) in the following individual funds for the year ended December 31, 2023: Excess of Expenditures Over Budget Actual Appropriations Major General 28,611,886$ 28,718,191$ 106,305$ Elections 249,061 258,253 9,192 Nonmajor Communications 546,582 665,437 118,855 Public Safety Compliance 15,500 40,873 25,373 Recreation Contribution 59,000 115,800 56,800 Nature Center Contribution 11,756 62,302 50,546 Wood lake Half Marathon 62,000 65,663 3,663 Utility Franchis Fees 45,000 108,087 63,087 Opioid Settlement - 9,824 9,824 Recreation Special Program 79,943 141,210 61,267 Swimming Pool 525,150 571,161 46,011 Fund H. Deficit Fund Equity The following funds had fund equity deficits as December 31, 2023: Amount Major Ice Arena 2,528,942$ Capital Improvements 370,703 Fund I. Cash, Cash Equivalents, and Investments Cash and investment balances from all funds are pooled and invested to the extent available in authorized investments, with the exception of non-pooled investments related to the 2020A bond issuance. Earnings from such pooled investments are allocated to the respective funds on the basis of applicable cash balance participation by each fund. Certain investments for the City are reported at fair value as disclosed in Note 2. The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. Investment income is accrued at the balance sheet date. For purposes of the statement of cash flows, the Proprietary Funds consider investments held in the City's cash management pool to be cash equivalents because this pool is used essentially as a demand deposit account. City of Richfield Notes to Basic Financial Statements 61 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) I. Cash, Cash Equivalents, and Investments (Continued) 1. Short-Term Interfund and Primary Government/Component Unit Receivable/Payables During the course of operations, numerous transactions occur between individual funds for goods provided or services rendered. These receivables and payables are classified as "advances to other funds" or "advances from other funds" on the balance sheet. Payables/receivables between the primary government and its component unit are classified as "due to/from component unit" on the primary government's balance sheet and "due to/from primary government" on the component unit's balance sheet. Property taxes and special assessments have been reported net of estimated uncollectible accounts. (See Note 1H and I). Because utility bills are considered liens on property, no estimated uncollectible amounts are established. Uncollectible amounts are not material for other receivables and have not been reported. J. Property Tax Revenue Recognition The City Council annually adopts a tax levy and certifies it to the County in December (levy/assessment date) of each year for collection in the following year. The County is responsible for billing and collecting all property taxes for itself, the City, the local School District and other taxing authorities. Such taxes become a lien on January 1 and are recorded as receivables by the City at that date. Real property taxes are payable (by property owners) on May 15 and October 15 of each calendar year. Personal property taxes are payable by taxpayers on February 28 and June 30 of each year. These taxes are collected by the County and remitted to the City on or before July 5 and December 5 of the same year. Delinquent collections for November and December are received the following January. The City has no ability to enforce payment of property taxes by property owners. The County possesses this authority. 1. Government-Wide Financial Statements The City recognizes property tax revenue in the period for which the taxes were levied. Uncollectible property taxes are not material and have not been reported. 2. Governmental Fund Financial Statements The City recognizes property tax revenue when it becomes both measurable and available to finance expenditures of the current period. In practice, current and delinquent taxes and State credits received by the City in July, December and January are recognized as revenue for the current year. Taxes collected by the County by December 31 (remitted to the City the following January) and taxes and credits not received at the year-end are classified as delinquent and due from County taxes receivable. The portion of delinquent taxes not collected by the City in January is fully offset by deferred inflows of resources because they are not available to finance current expenditures. K. Special Assessment Revenue Recognition Special assessments are levied against benefited properties for the cost or a portion of the cost of special assessment improvement projects in accordance with State Statutes. These assessments are collectible by the City over a term of years usually consistent with the term of the related bond issue. Collection of annual installments (including interest) is handled by the County Auditor in the same manner as property taxes. Property owners are allowed to (and often do) prepay future installments without interest or prepayment penalties. City of Richfield Notes to Basic Financial Statements 62 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) K. Special Assessment Revenue Recognition (Continued) Once a special assessment roll is adopted, the amount attributed to each parcel is a lien upon that property until full payment is made or the amount is determined to be excessive by the City Council or court action. If special assessments are allowed to go delinquent, the property is subject to tax forfeit sale. Proceeds of sales from tax forfeit properties are allocated first to the County's costs of administering all tax forfeit properties. Pursuant to State Statutes, a property shall be subject to a tax forfeit sale after three years unless it is homesteaded, agricultural or seasonal recreational land in which event the property is subject to such sale after five years. 1. Government-Wide Financial Statements The City recognizes special assessment revenue in the period that the assessment roll was adopted by the City Council. Uncollectible special assessments are not material and have not been reported. 2. Governmental Fund Financial Statements Revenue from special assessments is recognized by the City when it becomes measurable and available to finance expenditures of the current fiscal period. In practice, current and delinquent special assessments received by the City are recognized as revenue for the current year. Special assessments that are collected by the County by December 31 (remitted to the City the following January) and are also recognized as revenue for the current year. All remaining delinquent, deferred and special deferred assessments receivable in governmental funding are completely offset by deferred inflows of resources of revenues. L. Inventories Inventories are valued at cost, on a first-in, first-out basis. The cost of inventory in the Proprietary Funds is recognized as cost of sales or expense of operation at the time the inventory is sold or used. M. Prepaid Items Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. Accordingly, prepaid items are accounted for using the consumption method, where expense is recognized in the periods that the service or benefit is provided. N. Lease Receivable The City's lease receivable is measured at the present value of lease payments expected to be received during the lease term. A deferred inflow of resources is recorded for the lease. The deferred inflow of resources is recorded at the initiation of the lease in an amount equal to the initial recording of the lease receivable. The deferred inflow of resources is amortized on a straight-line basis over the term of the lease. O. Land Held for Resale Land held for resale represents property purchased by the City with the intent to resell in the future for redevelopment. These assets are stated at the lower of cost of net realizable value. City of Richfield Notes to Basic Financial Statements 63 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) P. Capital Assets Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Infrastructure assets that are reported within the government-wide financial statements include assets that were acquired on or after 1960. Capital assets are defined by the government as assets with an initial, individual cost of more than $5,000 (amount not rounded) and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement are reported at acquisition value. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Property, plant and equipment of the primary government, as well as the component units, is depreciated using the straight-line method, while infrastructure assets are depreciated using the composite method. Capital assets are depreciated over the following estimated useful lives: Assets Buildings and structures 20 - 50 Machinery and equipment 3 - 15 Furniture and fixtures 10 Other improvements 10 - 50 Storm sewers 25 - 30 Streets 25 Street lights 25 Distribution and collection systems 30 - 50 Years Q. Compensated Absences It is the City's policy to permit employees to accumulate earned but unused vacation and personal leave pay benefits. In addition, the fire employees are paid one-third of their unused sick pay upon termination. All vacation pay is accrued when incurred in the government-wide and proprietary fund financial statements. A liability for governmental fund employees is accrued in the Compensated Absences Fund as they are incurred. In accordance with the provisions of Statement of Government Accounting Standards No. 16, Accounting for Compensated Absences, no liability is recorded for nonvesting accumulating rights to receive sick pay benefits. However, a liability is recognized for that portion of accumulating sick leave benefits that is vested as severance pay. Compensated absences for governmental funds are accounted for in the Compensated Absences Internal Service Fund. City of Richfield Notes to Basic Financial Statements 64 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) R. Long-Term Obligations In the government-wide financial statements and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. S. Pensions For purposes of measuring the net pension liability, deferred outflows/inflows of resources, and pension expense, information about the fiduciary net position of the Public Employees Retirement Association (PERA) and additions to/deductions from PERA's fiduciary net position have been determined on the same basis as they are reported by PERA except that PERA's fiscal year end is June 30. For this purpose, plan contributions are recognized as of employer payroll paid dates and benefit payments and refunds are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. T. Fund Equity In the fund financial statements, governmental funds report fund balance classifications that disclose constraints for which amounts in those funds can be spent. These classifications are as follows: Nonspendable Fund Balances - Consists of amounts that are not in spendable form, such as prepaid items, inventory, and other long-term assets. Restricted Fund Balances - Consists of amounts related to externally imposed constraints established by creditors, grantors, or contributors; or constraints imposed by state statutory provisions. Committed Fund Balances - Consists of internally imposed constraints that are established by resolution of the City Council. Those committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified use by taking the same type of action it employed to previously commit those amounts. Assigned Fund Balances - 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 City's Finance Manager is authorized to establish assignments of fund balance. Unassigned Fund Balances - The residual classification for the General Fund which also reflects negative residual amounts in other funds. City of Richfield Notes to Basic Financial Statements 65 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) T. Fund Equity (Continued) When both restricted and unrestricted resources are available for use, it is the City's policy to first use restricted resources, and then use unrestricted resources as 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. U. Deferred Outflows/Inflows of Resources In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until that time. The City has two items that qualifies for reporting in this category. The City presents deferred outflows of resources on the Statement of Net Position for deferred outflows or resources related to pensions and OPEB for various estimate differences that will be amortized and recognized over future years. In addition to liabilities, the statement of financial position and fund financial statements will sometimes report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has seven items that qualify for reporting in this category. Five of the items reported arise under the modified accrual basis of accounting and are reported in the Governmental Fund Balance Sheet as unavailable revenue, deferred inflows of resources related to lease receivables, and advanced appropriations - state shared taxes. The governmental funds report unavailable revenues from three sources: delinquent property taxes, special assessments, and state shared taxes. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. The City presents deferred inflows or resources on the Statement of Net Position for deferred inflows of resources related to state shared taxes, lease receivable, pensions and OPEB for various estimate differences that will be amortized and recognized over future years. V. 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. A reclassification of $7,109,550 was made between the net investment in capital assets net position class and unrestricted net position in the total column of the Statement of Net Position to recognize the portion of debt attributable to capital assets donated from governmental activities to business-type activities. Net position is displayed in three components: 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 positions that do not meet the definition of "restricted" or "invested in capital assets." City of Richfield Notes to Basic Financial Statements 66 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) W. Targeted Fund Balance The City has established a targeted fund balance policy for its General Fund where it will strive to maintain an unassigned fund balance of an amount not less than 40% of the current year end actual General Fund expenditures. The dollar amount of the target may fluctuate with each year's actual results. X. Interfund Transactions Interfund services provided and used are accounted for as revenues, expenditures or expenses. Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed. Interfund loans are reported as an interfund loan receivable or payable which offsets the movement of cash between funds. All other interfund transactions are reported as transfers. Y. Use of Estimates The preparation of financial statements, in accordance with accounting principles generally accepted in the United States of America, requires management to make estimates that affect amounts reported in the financial statements during the reporting period. Actual results could differ from such estimates. NOTE 2 - DEPOSITS AND INVESTMENTS A. Deposits Minnesota Statutes require that all deposits with financial institutions must be collateralized in an amount equal to 110% of deposits in excess of FDIC insurance. B. Investments The City, HRA and EDA are authorized by Minnesota Statutes Chapter 118A to invest in the following: 1) Direct obligations or obligations guaranteed by the United States or its agencies. 2) Shares of investment companies registered under the Federal Investment Company Act of 1940 and whose only investments are in securities described in a) above. 3) General obligations of the State of Minnesota or any of its municipalities. 4) Bankers' acceptances of United States banks eligible for purchase by the Federal Reserve System. 5) Commercial paper, issued by United States corporations of their Canadian subsidiaries, of the highest quality, and maturing in 270 days or less. 6) Repurchase or reverse repurchase agreements with banks that are members of the Federal Reserve System with capitalization exceeding $10,000,000, a primary reporting dealer in U.S. government securities in the Federal Reserve Bank of New York, or certain Minnesota securities broker-dealers. 7) Guaranteed investment contracts (GIC) issued or guaranteed by a United States commercial bank or domestic branch of a foreign bank or a United States insurance company or its Canadian or United States subsidiary. 8) Mortgage-backed securities that are direct obligations or guaranteed or insured issues of the United States, its agencies, and its instrumentality's, or organizations created by an act of Congress. City of Richfield Notes to Basic Financial Statements 67 NOTE 2 - DEPOSITS AND INVESTMENTS (CONTINUED) B. Investments (Continued) The City's investments are categorized by level of risk as provided in GASB Statement No. 40, Deposit and Investment Risk Disclosures, in the following manner: Custodial Credit Risk: 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 policies do not formally address this risk, but the City typically limits its exposure by purchasing insured or registered investments, or by the control of who holds the securities. To protect against potential fraud and embezzlement, the investments of the City, HRA and EDA are secured through a third party custody and safekeeping arrangement. Interest Rate Risk: This is the risk to control the risk of market price changes, the City's formal investment policy recommends investment maturities shall match the City's projected cash flows. Investments in securities with maturities in excess of two years shall be placed with the intention to hold the security until maturity. Credit Risk: To control risk, investments purchased shall include those authorized by Minnesota Statutes, such as U.S. Government Securities and the highest quality commercial paper. The ratings assigned to these securities are noted in the table below. The City's investment policy does not further address credit risk. The City participates in the Minnesota Municipal Money Market Fund (the 4M Fund) which is regulated by Minnesota Statutes and the Board of Directors of the League of Minnesota Cities and is a customized cash management and investment program for Minnesota public funds. Sponsored and governed by the League of Minnesota Cities since 1987, the 4M Fund is a unique investment alternative designed to address the daily and long term investment needs of Minnesota cities and other municipal entities. Allowable under Minnesota Statutes, the 4M Fund is comprised of top quality, rated investments. The Minnesota Municipal Money Market Fund operates in accordance with appropriate State laws and regulations. The 4M Fund is an external investment pool not registered with the Securities and Exchange Commission (SEC): however, it follows the same regulatory rules of the SEC under rule 2a7. The reported value of the pool is the same as the fair value of the pool share. In accordance with GASB Statement No. 79, the Minnesota Municipal Investment Pool securities are valued at amortized cost, which approximates fair value. There are no restrictions or limitations on withdrawals from the 4M Liquid Asset Fund. Investments in the 4M Plus must be deposited for a minimum of 14 calendar days. Withdrawal prior to the 14-day restriction period will be subject to a penalty equal to seven days interest on the amount withdrawn. Seven days' notice of redemption is required for withdrawals of investments in the 4M Term Series withdrawn prior to the maturity date of that series. A penalty could be assessed as necessary to recoup the Series for any charges, losses, and other costs attributable to the early redemption. City of Richfield Notes to Basic Financial Statements 68 NOTE 2 - DEPOSITS AND INVESTMENTS (CONTINUED) B. Investments (Continued) Money market mutual funds invested as part of the City's trust arrangement at Principal consist entirely of money market funds and are unrated. Concentration of Credit Risk: The City's investment policy places no limit on the amount the City may invest in any one issuer. Investments in Federal Home Loan Bank government securities exceed 5% of pooled investments. The following is a summary of the City's, HRA's and EDA's investments, stated at fair value. The majority of the HRA and EDA investments are in the investment pool of the City. Therefore, the HRA and EDA investments are not segregated for disclosure. Nonpooled investments relate to the 2020A bond issuance. As of December 31, 2023, the City, HRA and EDA had the following investments and maturities (in years): Moody's Percent of Fair Less Years Ratings Total Value Than 1 Year 1 - 5 Pooled Investments U.S. Agencies Federal Home Loan Bank AA+11.23%8,446,935$ 6,949,480$ 1,497,455$ U.S. Treasury Securities A1+0.29%214,594 214,594 - U.S. Treasury Bonds AA+7.90%5,942,430 4,977,390 965,040 Municipal Bonds AA 0.13%100,000 100,000 - Negotiable Certificates of Deposits NR 1.14%858,784 858,784 - Money Markets Money Market Mutual Fund Investments NR 32.95%24,789,650 24,789,650 - External Investment Pool NR 46.37%34,886,561 34,886,561 - Total Pooled Investments 100.00%75,238,954 72,776,459 2,462,495 Non-pooled Investment External Investment Pool NR 100.00%272,169 272,169 - Total Investments 75,511,123$ 73,048,628$ 2,462,495$ Types of Investments The City has the following recurring fair value measurements as of December 31, 2023: $24,789,650 of investments are valued using a quoted market prices (Level 1 inputs) $15,562,742 of investments are valued using a matrix pricing model (Level 2 inputs) City of Richfield Notes to Basic Financial Statements 69 NOTE 3 - LEASE RECEIVABLE As of December 31, 2023 the City had the following lease receivable: Current Year Issue Inflow of Balance at Date Resources Year End Woodlawn Terrace Cooperative - Property Lease 1/1/2022 1.55 %101,733$ 105,304$ Wheel Fun Rentals, LLC - Management Services Agreement 1/1/2022 1.27 145,364 146,500 E-Clan Inc (B&J Trees) - Property Lease 11/1/2022 3.24 22,013 18,295 Sprint - Site Lease Agreement (City Hall)1/1/2022 0.69 363,603 371,040 Sprint - Site Lease Agreement (Penn)1/1/2022 0.50 82,898 86,165 T-Mobile - Site Lease Agreement (Penn)1/1/2022 0.55 225,049 233,847 T-Mobile - Site Lease Agreement (Logan)1/1/2022 1.52 727,974 755,776 AT&T - Site Lease Agreement (Penn)1/1/2022 1.41 656,955 682,158 Verizon - Site Lease Agreement (City Hall)1/1/2022 1.41 710,625 728,864 Verizon - Site Lease Agreement (Penn)1/1/2022 1.59 1,231,091 1,288,024 American - Site Lease Agreement (66th)1/1/2022 1.31 424,646 441,030 Fortis Academy - Training Room Lease 11/1/2023 3.53 100,874 101,057 Total lease receivables 4,792,825$ 4,958,060$ Discount Description Rate For the Woodlawn Terrace Cooperative lease, the vendor paid the City $5,445 in 2023 and this will increase by 3% each year to lease ten feet of the City's property. This lease can be renewed for up to two successive five-year terms. For the Wheel Fund Rentals, LLC lease, the vendor pays the City $4,000 quarterly for renting the City owed Mini-Golf facility. The City will also be paid 10% of gross revenues from the operation, concessions and bike rentals, after $200,000 of gross revenues is received. For the E-Clan Inc. (B&J Trees) lease, the vendor paid the City $8,925 in 2023 and will increase by 5% each year to use property owned by the City for storing, displaying and selling of Christmas trees. The City may terminate this agreement without cause by giving notice of termination. For the Sprint lease, the vendor paid the City $121,645 in 2023 and will increase by 4% each year to use property owned by the City for operating cell towers. Each term of five years and can be extend for three additional five-year periods. For the T-Mobile lease, the vendor paid the City $78,298 in 2023 and will increase by 4% each year to use property owned by the City for operating cell towers. Each term of five years and can be extend for three additional five-year periods. For the AT&T lease, the vendor paid the City $40,150 in 2023 and will increase by 4% each year to use property owned by the City for operating cell towers. Each term of five years and can be extend for three additional five-year periods. City of Richfield Notes to Basic Financial Statements 70 NOTE 3 - LEASE RECEIVABLE (CONTINUED) For the Verizon lease, the vendor paid the City $94,271 in 2023 and will increase by 3% each year to use property owned by the City for operating cell towers. Each term of five years and can be extend for three additional five-year periods. For the American lease, the vendor paid the City $34,159 in 2023 and will increase by 4% each year to use property owned by the City for operating cell towers. Each term of five years and can be extend for two additional five-year periods. For the Fortis Academy lease, the vendor paid the City $1,500 monthly to lease office space from the City. The monthly fee will increase $50 annually during the three-year agreement. This lease can be renewed for an additional three-year term. City of Richfield Notes to Basic Financial Statements 71 NOTE 4 - CAPITAL ASSETS Capital asset activity for the year ended December 31, 2023: Beginning Ending Balance Increases Decreases Balance Governmental activities Capital assets not being depreciated/amortized Land 9,353,605$ -$ -$ 9,353,605$ Construction in progress 24,185,755 17,748,980 (38,765,902) 3,168,833 Total capital assets not being depreciated/amortized 33,539,360 17,748,980 (38,765,902) 12,522,438 Capital assets being depreciated/amortized Leased equipment (intangible right to use asset)123,705 - - 123,705 Buildings and structures 50,005,128 - - 50,005,128 Machinery and equipment 19,780,349 758,030 (679,344) 19,859,035 Other improvments 8,283,937 2,131,091 - 10,415,028 Streets (infrastructures)84,276,830 37,287,907 - 121,564,737 Total capital assets being depreciated/amortized 162,469,949 40,177,028 (679,344) 201,967,633 Less accumulated depreciation/amortization for Leased equipment (intangible right to use asset)(25,160) (25,160) - (50,320) Buildings and structures (19,277,515) (1,186,087) - (20,463,602) Machinery and equipment (11,576,418) (1,280,247) 679,344 (12,177,321) Other improvments (5,147,278) (373,507) - (5,520,785) Streets (Infrastructures)(64,989,950) (2,324,467) - (67,314,417) Total accumulated depreciation/amortization (101,016,321) (5,189,468) 679,344 (105,526,445) Total capital assets being depreciated/amortized, net 61,453,628 34,987,560 - 96,441,188 Governmental activities capital assets, net 94,992,988$ 52,736,540$ (38,765,902)$ 108,963,626$ City of Richfield Notes to Basic Financial Statements 72 NOTE 4 - CAPITAL ASSETS (CONTINUED) Beginning Ending Balance Increases Decreases Balance Business-type activities Capital assets not being depreciated Land 638,673$ -$ -$ 638,673$ Construction in progress 326,867 1,527,770 (1,820,991) 33,646 Total capital assets not being depreciated 965,540 1,527,770 (1,820,991) 672,319 Capital assets being depreciated Buildings and structures 10,496,345 - - 10,496,345 Machinery and equipment 15,195,137 1,040,372 (8,194) 16,227,315 Other improvements 51,449,354 3,068,216 - 54,517,570 Total capital assets being depreciated 77,140,836 4,108,588 (8,194) 81,241,230 Less accumulated depreciation for Buildings and structures (7,670,803) (226,249) - (7,897,052) Machinery and equipment (10,388,542) (606,264) 8,194 (10,986,612) Other improvements (26,965,076) (1,475,434) - (28,440,510) Total accumulated depreciation (45,024,421) (2,307,947) 8,194 (47,324,174) Total capital assets being depreciated, net 32,116,415 1,800,641 - 33,917,056 Business-type activities capital assets, net 33,081,955$ 3,328,411$ (1,820,991)$ 34,589,375$ Capital assets transferred from governmental activities to business-type activities are not reflected in the changes of capital assets because those assets were never capitalized as governmental assets prior to the transfer. Depreciation/amortization expense was charged to functions/programs of the primary government as follows: Governmental activities General Government 471,821$ Public Safety 114,859 Public Works 2,708,125 Culture and Recreation 904,659 Internal service funds 990,004 Total depreciation/amortization expense - governmental activities 5,189,468$ City of Richfield Notes to Basic Financial Statements 73 NOTE 4 - CAPITAL ASSETS (CONTINUED) Business-type activities Municipal Liquor 215,630$ Water and Sewer Utility 1,378,468 Storm Sewer 713,849 Total depreciation expense - business-type activities 2,307,947$ At December 31, 2023, the City had construction project contracts in progress. The commitments related to the remaining contract balances are summarized as follows: Contract Remaining Amount Commitment 77th Street Phase III 23,122,275$ 628,255$ Sanitary Sewer Lining 796,666 17,124 77th Street Signal 989,739 2,306 65th Street Reconstruction 11,301,390 97,532 Total 36,210,070$ 745,217$ Project NOTE 5 - RISK MANAGEMENT The City is exposed to various risks such as loss related to: torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. It is the City's policy to be self-insured for workers' compensation, dental insurance and short-term disability insurance. Additionally, the City maintains a risk retention program for property, general liability, and auto liability insurance coverage by maintaining high deductibles. Accordingly, a Self-Insurance Fund (an Internal Service Fund) was established to account for and finance the City's uninsured risk of loss. Under this program, the Self Insurance Fund provides coverage for up to a maximum of $500,000 for each Workers' Compensation claim, and $50,000 ($300,000 aggregate) for each general liability and property damage claim. The City purchases insurance from the League of Minnesota Cities Insurance Trust (LMCIT) for property and municipal liability and the Workers' Compensation Reinsurance Association for claims in excess of coverage provided by the Fund and for all other risks of loss. The City has realized no significant reductions in insurance coverage during 2023. Finally, settled claims have not exceeded this commercial coverage in any of the past three fiscal years. Insurance reimbursements to the Self-Insurance Fund are charged back to the affected Governmental and Proprietary funds in the form of an insurance charge to fund future premiums and estimated prior and current year claims. The claims and judgments liability of $1,183,616 reported in the fund at December 31, 2023 is based on the requirements of Governmental Accounting Standards Board Statement No. 10 which requires a liability for claims reported if it is probable that a liability has been incurred at the date of the financial statements and the amount of loss can be reasonably estimated. City of Richfield Notes to Basic Financial Statements 74 NOTE 5 - RISK MANAGEMENT (CONTINUED) Liabilities of the fund are reported when it is probable that a loss has occurred, and the amount of the loss can be reasonably estimated. Liabilities include an amount for claims that have been incurred but not reported (IBNRs). The result of the process to estimate the claims liability is not an exact amount as it depends on many complex factors, such as inflation, changes in legal doctrines, and damage awards. Accordingly, claims are reevaluated periodically to consider the effects of inflation, recent claim settlement trends (including frequency and amount of pay-outs), and other economic and social factors. The estimate of the claims liability also includes amounts for incremental claim adjustment expenses related to specific claims and other claim adjustment expenses regardless of whether allocated to specific claims. Estimated recoveries, for example from salvage or subrogation, are another component of the claims liability estimate. A summary of the claims and judgments liability amount at December 31, 2023 and 2022 are as follows: Current Year Beginning Claims and Balance at Years Ending of Fiscal Year Changes Claim Fiscal December 31,Liability in Estimates Payments-Net Year End 2022 1,113,644$ 923,980$ (423,284)$ 1,614,340$ 2023 1,614,340 32,866 (463,590)1,183,616 NOTE 6 - LONG-TERM LIABILITIES The City issues general obligation bonds to provide funds for the acquisition and construction of capital projects. The reporting entity and long-term debt is segregated between the amounts repaid from governmental activities and amounts to be repaid from business-type activities. Redevelopment bonds are paid primarily from tax increments derived from increases in the taxable valuation of property within a redevelopment area in the City. The full faith and credit of the City is pledged on the bonds. Improvement bonds are paid primarily from debt service tax levies and proceeds of special assessments levied against property owners benefiting from improvements made. The full faith and credit of the City is pledged on the bonds. The Water and Sewer Revenue Bonds debt requirements are paid from the revenues of the operation of Water and Sewer Utility Fund. The Storm Sewer Revenue Bonds debt requirements are paid from net revenue of the operation of the Storm Sewer Utility Fund. The City entered into a lease agreement with Big Belly Solar, LLC for the purchase of hardware/software for the public works department. See the details below of the agreement. Total Lease Issue Payment Payment Liability Date Terms Amount Connect Services Agreement - hardware/ software for public works department 73,848$ 0.69 %1/1/2022 59 months $2,132 monthly Interest Description Rate City of Richfield Notes to Basic Financial Statements 75 NOTE 6 - LONG-TERM LIABILITIES (CONTINUED) A. Components of Long-Term Liabilities As of December 31, 2023, the governmental long-term bonded debt of the financial reporting entity consisted of the following: Issue Maturity Authorized Balance at Date Date and Issued Year End Redevelopment Bonds G.O. Tax Increment Refunding Bonds, 2010B 3.05 % 12/30/10 02/01/24 6,355,000$ 600,000$ G.O. Tax Increment Refunding Bonds, 2012B 2.25 09/06/12 02/01/25 2,970,000 510,000 Total Redevelopment Bonds 1,110,000 Improvement Bonds G.O. Improvement Bonds, Series 2013A 2.18 03/21/13 02/01/34 3,120,000 1,415,000 G.O. Street Reconstruction Bonds, Series 2015A 2.71 06/04/15 02/01/36 9,100,000 6,205,000 G.O. Refunding Bonds, Series 2016B 1.58 11/17/16 02/01/28 5,085,000 2,525,000 G.O. Refunding Bonds, Series 2016C 2.04 12/15/16 02/01/29 6,130,000 3,875,000 G.O. Street Reconstruction Bonds, Series 2017A 2.49 04/20/17 02/01/38 9,130,000 7,295,000 G.O. Capital Improvement Refunding Bonds, Series 2017B 2.17 12/14/17 02/01/29 3,045,000 1,865,000 G.O. Street Reconstruction Bonds, Series 2018A 3.10 05/31/18 02/01/39 9,770,000 8,250,000 G.O. Bonds, Series 2019A 2.63 06/06/19 02/01/40 5,290,000 4,715,000 G.O. Bonds, Series 2020A 1.91 05/14/20 02/01/41 2,995,000 2,760,000 G.O. Refunding Bonds, Series 2020B 1.09 11/19/20 02/01/33 1,370,000 1,165,000 G.O. Bonds, Series 2022A 4.00 07/07/22 02/01/43 5,565,000 5,565,000 Unamortized Bond Premiums 1,165,923 Total Improvement Bonds 46,800,923 Lease Payable Connect Services Agreement - hardware/ software for public works department 0.68 01/01/22 11/19/26 123,705 73,848 Total Governmental Indebtedness 47,984,771$ Enterprise Bonds G.O. Refunding Bonds, Series 2015B 1.74 11/10/15 02/01/27 5,360,000 2,180,000$ G.O. Storm Water Bonds, Series 2016A 2.18 05/19/16 02/01/37 2,970,000 2,230,000 G.O. Bonds, Series 2019A 2.63 06/06/19 02/01/40 3,035,000 2,705,000 G.O. Bonds, Series 2020A 1.91 05/14/20 02/01/41 2,125,000 1,820,000 G.O. Refunding Bonds, Series 2020B 1.09 11/19/20 02/01/33 1,740,000 1,485,000 G.O. Bonds, Series 2022A 4.00 07/07/22 02/01/43 4,435,000 4,435,000 Unamortized Bond Premiums 517,957 Total Enterprise Bonds 15,372,957 Total City Indebtedness 63,357,728$ Net Interest Rate City of Richfield Notes to Basic Financial Statements 76 NOTE 6 - LONG-TERM LIABILITIES (CONTINUED) B. Minimum Debt Payments Annual debt service requirements to maturity for general obligation bonds are as follows: Year Ending December 31, Principal Interest Total 2024 850,000$ 24,256$ 874,256$ 2025 260,000 3,738 263,738 Total 1,110,000$ 27,994$ 1,137,994$ Redevelopment Bonds Year Ending December 31, Principal Interest Total 2024 3,340,000$ 1,287,289$ 4,627,289$ 2025 3,450,000 1,188,044 4,638,044 2026 3,540,000 1,090,054 4,630,054 2027 3,645,000 992,729 4,637,729 2028 3,750,000 891,961 4,641,961 2029 - 2033 13,120,000 3,232,627 16,352,627 2034 - 2038 11,095,000 1,448,983 12,543,983 2039 - 2043 3,695,000 238,925 3,933,925 Total 45,635,000$ 10,370,612$ 56,005,612$ Improvement Bonds Year Ending December 31, Principal Interest Total 2024 25,152$ 416$ 25,568$ 2025 25,326 241 25,567 2026 23,370 67 23,437 Total 73,848$ 724$ 74,572$ Lease Payable City of Richfield Notes to Basic Financial Statements 77 NOTE 6 - LONG-TERM LIABILITIES (CONTINUED) B. Minimum Debt Payments Year Ending December 31, Principal Interest Total 2024 628,000$ 192,458$ 820,458$ 2025 649,600 173,806 823,406 2026 661,200 156,540 817,740 2027 682,800 138,835 821,635 2028 296,000 124,584 420,584 2029 - 2033 1,528,600 477,895 2,006,495 2034 - 2038 1,372,400 267,752 1,640,152 2039 - 2043 971,112 63,945 1,035,057 Total 6,789,712$ 1,595,815$ 8,385,527$ Water and Sewer Year Ending December 31, Principal Interest Total 2024 557,000$ 226,437$ 783,437$ 2025 575,400 210,289 785,689 2026 588,800 195,155 783,955 2027 607,200 180,285 787,485 2028 454,000 166,661 620,661 2029 - 2033 2,441,400 654,597 3,095,997 2034 - 2038 1,752,600 351,923 2,104,523 2039 - 2043 1,088,888 104,932 1,193,820 Total 8,065,288$ 2,090,279$ 10,155,567$ Storm Sewer City of Richfield Notes to Basic Financial Statements 78 NOTE 6 - LONG-TERM LIABILITIES (CONTINUED) C. Change in Long-Term Liabilities Long-term liability activity for the year ended December 31, 2023, was as follows: Beginning Ending Due Within Balance Increases Decreases Balance One Year Governmental activities Bonds payable Redevelopment bonds 1,925,000$ -$ (815,000)$ 1,110,000$ 850,000$ Improvement bonds 48,690,000 - (3,055,000) 45,635,000 3,340,000 Bond premium 1,293,779 - (127,856) 1,165,923 - Total bonds payable 51,908,779 - (3,997,856) 47,910,923 4,190,000 Lease payable 98,827 - (24,979) 73,848 25,152 Claims and judgements 1,614,340 32,866 (463,590) 1,183,616 - Compensated absences payable 2,388,056 2,934,372 (2,788,923) 2,533,505 669,581 Governmental activity long-term liabilities 56,010,002$ 2,967,238$ (7,275,348)$ 51,701,892$ 4,884,733$ Business-type activities Bonds payable Storm sewer revenue bonds 2,360,000$ -$ (130,000)$ 2,230,000$ 135,000$ G.O. Bonds 9,190,000 - (230,000) 8,960,000 390,000 G.O. Refunding Bonds 4,305,000 - (640,000) 3,665,000 660,000 Bond premium 577,519 - (59,562) 517,957 - Total bonds payable 16,432,519 - (1,059,562) 15,372,957 1,185,000 Compensated absences payable 312,800 327,141 (281,442) 358,499 109,932 Business-type activity long-term liabilities 16,745,319$ 327,141$ (1,341,004)$ 15,731,456$ 1,294,932$ For the governmental activities, compensated absences are generally liquidated by the compensated absences fund. Net OPEB obligations and pensions are generally liquidated by the General Fund and Enterprise Funds. Claims and judgments are generally liquidated by the Self Insurance Fund. All long- term bonded indebtedness outstanding at December 31, 2023 is backed by the full faith and credit of the City, including special assessment and revenue bond issues. Special assessment receivable at December 31, 2023 totaled $502,137. City of Richfield Notes to Basic Financial Statements 79 NOTE 6 - LONG-TERM LIABILITIES (CONTINUED) D. Revenue Pledged Future revenue pledged for the payment of long-term debt is as follows: Remaining Principal Pledged Use of Term of Principal and Interest Revenue Proceeds Type Pledge and Interest Paid Received G.O. Refunding Bonds, Utility Utility Series 2015B Infrastructure Charges 100 %2016-2027 2,271,125$ 561,425$ 7,383,492$ G.O. Storm Water Bonds, Utility Utility Series 2016A Infrastructure Charges 100 2017-2037 2,617,968 184,215 2,219,957 G.O. Bonds Utility Utility Series 2019A Infrastructure Charges 100 2020-2040 3,472,400 204,900 12,448,664 G.O. Bonds,Utility Utility Series 2020A Infrastructure Charges 100 2021-2041 2,139,368 162,900 5,163,535 G.O. Refunding Bonds, Utility Utility Series 2020B Infrastructure Charges 100 2021-2033 1,368,665 161,380 2,219,957 G.O. Refunding Bonds, Utility Utility Series 2022A Infrastructure Charges 100 2023-2043 6,438,900 189,227 12,448,664 Revenue Pledged Current Year Bond Issue Percent of Total Debt Service NOTE 7 - INTERFUND BALANCES AND TRANSACTIONS Interfund transfers as of December 31,2023 are as follows: Ice Improvement Captial Nonmajor Internal General Arena Bond Improvements Governmental Service Funds Total Transfer Out General -$ 140,000$ -$ -$ 120,000$ -$ 260,000$ Capital Improvements 639,598 200,000 - 200,000 200,000 1,083,500 2,323,098 Nonmajor Governmental - 60,000 745,994 1,474,932 755,001 - 3,035,927 Municipal Liquor 347,927 - - - 549,999 - 897,926 Storm Sewer - - - 300,000 - - 300,000 Internal Service - - - - - 56,500 56,500 Total 987,525$ 400,000$ 745,994$ 1,974,932$ 1,625,000$ 1,140,000$ 6,873,451$ Transfer In Fund Interfund transfers allow the City to allocate financial resources to funds to provide funding for services to be provided or to provide financing for specific capital projects. The City's Self Insurance Fund made an advance to the Ice Arena Fund to finance energy improvements for the City's Ice Arena. The term of the advance will be twenty (20) years with a beginning interest rate of 2%. The City Manager is authorized to adjust the interest rate as market conditions may dictate. At December 31, 2023 the balance of the respective advances (due in more than a year) was $372,707. The portion of the advances that is due in one year is $70,176. In 2013, the City's Recreation Improvement Fund made an advance to the Park Capital Project Fund to finance the Honoring All Veterans Memorial monument located in Veterans Park. The advance will be repaid over the next five years using proceeds received from monument engravings at 0% interest. At December 31, 2023 the portion of the advance that is due in one year is $7,000, and the portion due in more than one year is $168,540. City of Richfield Notes to Basic Financial Statements 80 NOTE 7 - INTERFUND BALANCES AND TRANSACTIONS (CONTINUED) In 2014, the City's Communications Fund made an advance to the Ice Arena Fund to finance the construction of a new locker room at Rink 1. The advance will be repaid over fifteen (15) years with rent received from the tenant of the locker room. At December 31, 2023, the portion of the advances that is due within one year is $42,764. The portion of the loan due in more than one year is $213,818. At the end of 2023, the Ice Arena has overdrawn it’s cash position. As a result, the General Fund has advanced to the Ice Arena fund to cover the overdrawn cash position as of December 31, 2023. These advances are reflected in the financial statements as due to and due from other funds. Individual fund advances to and advances from at year-end were as follows: Amount Nonmajor governmental Ice Arena 256,582$ Nonmajor governmental Nonmajor governmental 175,540 Internal Service Self Insurance Ice Arena 442,883 Total 875,005$ Advances to Other Funds Advances from Other Funds Individual fund interfund receivables and payables balances at year-end were as follows: Amount General Ice Arena 1,921,808$ Receivable Fund Payable Fund City of Richfield Notes to Basic Financial Statements 81 NOTE 8 - FUND BALANCES The following is a breakdown of equity components of governmental funds which are defined earlier in the report. Any such restrictions which have an accumulated deficit rather than positive balance at December 31 are included in unassigned fund balance in the City's financial statements in accordance with generally accepted accounting principles. At December 31, 2023, a summary of the City's governmental fund balance classifications are as follows: Ice Improvement Capital Other General Arena Elections Bonds Improvements Governmental Total Nonspendable Prepaid items $ 61,640 $ 27 $ - $ - $ - $ 63 $ 61,730 Restricted for Future debt service - - - 6,263,293 - - 6,263,293 Law enforcement drug forfeitures - - - - - 288,610 288,610 Recreation services donations - - - - - 81,557 81,557 Wood Lake Nature Center donations - - - - - 222,532 222,532 Public health assessment - - - - - 130,903 130,903 Public safety aid - - - - - 1,604,296 1,604,296 Public health - opioid settlement - - - - - 132,082 132,082 Wood Lake endowment - - - - - 263,542 263,542 Total Restricted - - - 6,263,293 - 2,723,522 8,986,815 Committed to Park improvement projects - - - - - 147,502 147,502 Tourism administration - - - - - 52,471 52,471 Public cable TV and information activities - - - - - 1,897,988 1,897,988 National, state and local elections - - 2,355,535 - - - 2,355,535 Alcohol and tobacco compliance - - - - - 257,527 257,527 Wood Lake half marathon - - - - - 80,295 80,295 Street maintenance and forestry programs - - - - - 1,280,422 1,280,422 Special facilities - - - - - 61,545 61,545 Recreation special program - - - - - 234,419 234,419 Swimming pool - - - - - 228,685 228,685 Park and recreation capital projects - - - - - 1,615,645 1,615,645 Total Committed - - 2,355,535 - - 5,856,499 8,212,034 Unassigned 11,425,348 (2,528,969) - - (370,703) - 8,525,676 Total 11,486,988$ (2,528,942)$ 2,355,535$ 6,263,293$ (370,703)$ 8,580,084$ 25,786,255$ City of Richfield Notes to Basic Financial Statements 82 NOTE 9 - CONTINGENCIES AND LITIGATION The City is currently involved in various pending litigation cases. After evaluation by the City's attorney it is believed that the resolution of these cases will not have a material impact on the financial statements. The City has entered into an agreement with the Metropolitan Airports Commission (MAC), where the City will purchase certain right-of-way-properties as part of the 66th Street/17th Avenue intersection constructed in 2007. As part of the agreement, MAC will provide to the City the funds necessary to finance the right-of-way acquisitions. In addition, the City agrees to repay to MAC payments made by MAC to the City for the right-of-way acquisitions. However, within the agreements there are specific provisions that must be met in order for repayment to MAC to occur. NOTE 10 - DEFINED BENEFIT PENSION PLANS The City participates in various pension plans. For the year ended December 31, 2023 total pension expense was $4,399,211 and the total net pension liability was $18,884,241. The components of pension expense and net pension liability are noted in the following plan summaries. Public Employees Retirement Association A. Plan Description The City of Richfield participates in the following cost-sharing multiple-employer defined benefit pension plans 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. 1. General Employees Retirement Fund All full-time and certain part-time employees of the City of Richfield are covered by the General Employees Plan. General Employees Plan members belong to the Coordinated Plan. Coordinated Plan members are covered by Social Security. 2. Public Employees Police and Fire Fund The Police and Fire Plan originally established for police officers and firefighters not covered by a local relief association, now covers all police officers and firefighters hired since 1980. Effective July 1, 1999, the Police and Fire Plan also covers police officers and firefighters belonging to local relief associations that elected to merge with and transfer assets and administration to PERA. City of Richfield Notes to Basic Financial Statements 83 NOTE 10 - DEFINED BENEFIT PENSION PLANS (CONTINUED) Public Employees Retirement Association (Continued) 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. 1. General Employees Plan Benefits General Employees Plan benefits are based on a member's highest average salary for any five successive years of allowable service, age, and years of credit at termination of service. Two methods are used to compute benefits for PERA's Coordinated Plan members. 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% for 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. The postretirement increase is equal to 50% of the cost-of-living adjustment (COLA) announced by the SSA, with a minimum increase of at least 1% and a maximum of 1.5%. Recipients that have been receiving the annuity or benefit for at least a full year as of the June 30 before the effective date of the increase will receive the full increase. Recipients receiving the annuity or benefit for at least one month but less than a full year as of the June 30 before the effective date of the increase will receive a reduced prorated increase. In 2023, legislation repealed the statute delaying increases for members retiring before full retirement age. 2. Police and Fire Plan Benefits Benefits for Police and Fire Plan members first hired after June 30, 2010, but before July 1, 2014, vest on a prorated basis from 50% after five years up to 100% after ten years of credited service. Benefits for Police and Fire Plan members first hired after June 30, 2014, vest on a prorated basis from 50% after ten years up to 100% after twenty years of credited service. The annuity accrual rate is 3% of average salary for each year of service. For Police and Fire Plan members who were first hired prior to July 1, 1989, a full annuity is available when age plus years of service equal at least 90. Benefit increases are provided to benefit recipients each January. The postretirement increase is fixed at 1%. Recipients that have been receiving the annuity or benefit for at least 36 months as of the June 30 before the effective date of the increase will receive the full increase. For recipients receiving the annuity or benefit for at least 25 months but less than 36 months as of the June 30 before the effective date of the increase will receive a reduced prorated increase. City of Richfield Notes to Basic Financial Statements 84 NOTE 10 - DEFINED BENEFIT PENSION PLANS (CONTINUED) Public Employees Retirement Association (Continued) C. Contributions Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. Contribution rates can only be modified by the state legislature. 1. General Employees Fund Contributions Coordinated Plan members were required to contribute 6.50% of their annual covered salary in fiscal year 2023 and the City of Richfield was required to contribute 7.50% for Coordinated Plan members. The City of Richfield's contributions to the General Employees Fund for the year ended December 31, 2023, were $935,762. The City of Richfield's contributions were equal to the required contributions as set by state statute. 2. Police and Fire Fund Contributions Police and Fire members were required to contribute 11.80% of their annual covered salary in fiscal year 2023 and the City was required to contribute 17.70% for Police and Fire Plan members. The City of Richfield's contributions to the Police and Fire Fund for the year ended December 31, 2023, were $1,432,678. The City of Richfield's contributions were equal to the required contributions as set by state statute. D. Pension Costs 1. General Employees Fund Pension Costs At December 31, 2023, the City of Richfield reported a liability of $8,371,056 for its proportionate share of the General Employees Fund's net pension liability. The City of Richfield'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 of Richfield totaled $230,721. The net pension liability was measured as of June 30, 2023, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City of Richfield's proportionate share of the net pension liability was based on the City of Richfield contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2022, through June 30, 2023, relative to the total employer contributions received from all of PERA's participating employers. The City of Richfield's proportionate share was 0.1497% at the end of the measurement period and 0.1546% for the beginning of the period. City's proportionate share of the net pension liability 8,371,056$ State of Minnesota's proportionate share of the net pension liability associated with the City 230,721 Total 8,601,777$ City of Richfield Notes to Basic Financial Statements 85 NOTE 10 - DEFINED BENEFIT PENSION PLANS (CONTINUED) Public Employees Retirement Association (Continued) E. Pension Costs 1. General Employees Fund Pension Costs (Continued) For the year ended December 31, 2023, the City of Richfield recognized pension expense of $1,283,553 for its proportionate share of the General Employees Plan's pension expense. Included in the amount, the City of Richfield recognized an additional $1,037 as pension expense (and grant revenue) for its proportionate share of the State of Minnesota's contribution of $16 million to the General Employees Fund. At December 31, 2023, the City of Richfield reported its proportionate share of the General Employees Plan's deferred outflows of resources and deferred inflows of resources, related to pensions from the following sources: Differences between expected and actual economic experience 277,067$ 60,208$ Changes in actuarial assumptions 1,414,289 2,294,435 Net collective difference between projected and actual investment earnings - 336,137 Changes in proportion 49,463 327,358 Contributions paid to PERA subsequent to the measurement date 467,881 - Total 2,208,700$ 3,018,138$ Deferred Outflows of Resources Deferred Inflows of Resources City of Richfield Notes to Basic Financial Statements 86 NOTE 10 - DEFINED BENEFIT PENSION PLANS (CONTINUED) Public Employees Retirement Association (Continued) E. Pension Costs (Continued) 1. General Employees Fund Pension Costs (Continued) The $467,881 reported as deferred outflows of resources related to pensions resulting from City of Richfield contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2024. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Pension Year Ending Expense December 31,Amount 170,059$ (1,399,305) 133,524 (181,597) Total (1,277,319)$ 2024 2025 2026 2027 2. Police and Fire Fund Pension Costs At December 31, 2023, the City of Richfield reported a liability of $10,513,185 for its proportionate share of the Police and Fire Fund's net pension liability. The net pension liability was measured as of June 30, 2023, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City of Richfield's proportionate share of the net pension liability was based on the City of Richfield contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2022, through June 30, 2023, relative to the total employer contributions received from all of PERA's participating employers. At June 30, 2023, the City of Richfield's proportionate share was 0.6088% at the end of the measurement period and 0.6276% for the beginning of the period. City of Richfield Notes to Basic Financial Statements 87 NOTE 10 - DEFINED BENEFIT PENSION PLANS (CONTINUED) Public Employees Retirement Association (Continued) E. Pension Costs (Continued) 2. Police and Fire Fund Pension Costs (Continued) The State of Minnesota contributed $18 million to the Police and Fire Fund in the plan fiscal year ended June 30, 2023. The contribution consisted of $9 million in direct state aid that meets the definition of a special funding situation and $9 million in supplemental state aid that does not meet the definition of a special funding situation. The $9 million direct state was paid on October 1, 2022. Thereafter, by October 1 of each year, the state will pay $9 million to the Police and Fire Fund until full funding is reached or July 1, 2048, whichever is earlier. The $9 million in supplemental state aid will continue until the fund is 90% funded, or until the State Patrol Plan (administered by the Minnesota State Retirement System) is 90% funded, whichever occurs later. The State of Minnesota's proportionate share of the net pension liability associated with the City totaled $423,463. City's proportionate share of the net pension liability 10,513,185$ State of Minnesota's proportionate share of the net pension liability associated with the City 423,463 Total 10,936,648$ The State of Minnesota is included as a non-employer contributing entity in the Police and Fire Retirement Plan Schedule of Employer Allocations and Schedule of Pension Amounts by Employer, Current Reporting Period Only (pension allocation schedules) for the $9 million in direct state aid. Police and Fire Plan employers need to recognize their proportionate share of the State of Minnesota's pension expense (and grant revenue) under GASB 68 special funding situation accounting and financial reporting requirements. For the year ended December 31, 2023, the City of Richfield recognized pension expense of $3,112,074 for its proportionate share of the Police and Fire Plan's pension expense. Included in this amount, the City recognized an additional $(25,505) as pension expense (grant revenue) for its proportionate share of the State of Minnesota's contribution of $9 million to the Police and Fire Fund. The State of Minnesota is not included as a non-employer contributing entity in the Police and Fire Pension Plan pension allocation schedules for the $9 million in supplemental state aid. The City of Richfield also recognized $54,792 for the year ended December 31, 2023 as revenue and an offsetting reduction of net pension liability for its proportionate share of the State of Minnesota's on-behalf contributions to the Police and Fire Fund. City of Richfield Notes to Basic Financial Statements 88 NOTE 10 - DEFINED BENEFIT PENSION PLANS (CONTINUED) Public Employees Retirement Association (Continued) E. Pension Costs (Continued) 2. Police and Fire Fund Pension Costs (Continued) At December 31, 2023, the City of Richfield reported its proportionate share of the Police and Fire Plan's deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Differences between expected and actual economic experience 2,919,423$ -$ Changes in actuarial assumptions 12,388,550 14,784,319 Net collected difference between projected actual investment - earnings - 261,005 Changes in proportion 202,606 906,384 Contributions paid to PERA subsequent to the measurement date 716,339 - Total 16,226,918$ 15,951,708$ Deferred Outflows of Resources Deferred Inflows of Resources The $716,339 reported as deferred outflows of resources related to pensions resulting from City of Richfield contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2024. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Pension Year Ending Expense December 31,Amount 2024 481,070$ 2025 67,440 2026 2,490,227 2027 (735,118) 2028 (2,744,748) Total (441,129)$ City of Richfield Notes to Basic Financial Statements 89 NOTE 10 - DEFINED BENEFIT PENSION PLANS (CONTINUED) Public Employees Retirement Association (Continued) F. Long-term Expected Return on Investment The State Board of Investment, which manages the investments of PERA, prepares an analysis of the reasonableness on a regular basis of the long-term expected rate of return using a building-block method in which best-estimate ranges of expected future rates of return are developed for each major asset class. These ranges are combined to produce an expected long-term rate of return by weighting the expected future rates of return by the target asset allocation percentages. The target allocation and best estimates of geometric real rates of return for each major asset class are summarized in the following table: Domestic equity 33.5 %5.10 % International equity 16.5 5.30 Fixed income 25.0 0.75 Private markets 25.0 5.90 Total 100.0 % Long-Term Expected Real Rate of ReturnTarget AllocationAsset Class G. Actuarial Assumptions The total pension liability in the June 30, 2023 actuarial valuation was determined using an individual entry-age normal actuarial cost method. The long-term rate of return on pension plan investments used in the determination of the total liability is 7.0% . This assumption is based on a review of inflation and investments return assumptions from a number of national investment consulting firms. The review provided a range of return investment return rates deemed to be reasonable by the actuary. An investment return of 7.0% was deemed to be within that range of reasonableness for financial reporting purposes. Inflation is assumed to be 2.25% for the General Employees Plan and 2.25% for the Police and Fire Plan. Benefit increases after retirement are assumed to be 1.25% for the General Employees Plan and 1% for the Police and Fire Plan. Salary growth assumptions in the General Employees Plan range in annual increments from 10.25% after one year of service to 3.0% after 27 years of service. In the Police and Fire Plan, salary growth assumptions range from 11.75% after one year of service to 3.0% after 24 years of service. Mortality rates for the General Employees Plan are based on the Pub-2010 General Employee Mortality Table. Mortality rates for the Police and Fire Plan is based on the Pub-2010 Public Safety Employee Mortality tables. The tables are adjusted slightly to fit PERA's experience. City of Richfield Notes to Basic Financial Statements 90 NOTE 10 - DEFINED BENEFIT PENSION PLANS (CONTINUED) Public Employees Retirement Association (Continued) G. Actuarial Assumptions (Continued) Actuarial assumptions used in the June 30, 2023 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 2022. The assumption changes were adopted by the Board and become effective with the July 1, 2023 actuarial valuation. The most recent four-year experience study for the Police and Fire Plan was completed in 2020 were adopted by the Board and became effective with the July 1, 2021 actuarial valuation. The following changes in actuarial assumptions and plan provisions occurred in 2023: General Employees Fund Changes in Actuarial Assumptions The investment return assumption and single discount rate were changed from 6.5% to 7.0%. Changes in Plan Provisions An additional one-time direct state aid contribution of $170.1 million will be contributed to the Plan on October 1, 2023. The vesting period of those hired after June 30, 2010, was changed from five years of allowable service to three years of allowable service. The benefit increase delay for early retirements on or after January 1, 2024, was eliminated. A one-time, non-compounding benefit increase of 2.5% minus the actual 2024 adjustment will be payable in a lump sum for calendar year 2024 by March 31, 2024. Police and Fire Fund Changes in Actuarial Assumptions The investment return assumption and single discount rate were changed from 6.5% to 7.0%. The single discount rate changed from 5.4% to 7.0%. Changes in Plan Provisions Additional one-time direct state aid contribution of 19.4 million will be contributed to the Plan on October 1, 2023. Vesting requirement for new hires after June 30, 2014, was changed from a graded 20-year vesting schedule to a graded 10-year vesting schedule, with 50% vesting after five years, increasing incrementally to 100% after 10 years. A one-time, non-compounding benefit increase of 3.0% will be payable in a lump sum for calendar year 2024 by March 31, 2024. Psychological treatment is required effective July 1, 2023, prior to approval for a duty disability benefit for a psychological condition relating to the member's occupation. The total and permanent duty disability benefit was increased, effective July 1, 2023. City of Richfield Notes to Basic Financial Statements 91 NOTE 10 - DEFINED BENEFIT PENSION PLANS (CONTINUED) Public Employees Retirement Association (Continued) H. Discount Rate The discount rate used to measure the total pension liability in 2023 was 7.0%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members and employers will be made at rates set in Minnesota Statutes. Based on these assumptions, the fiduciary net positions of the General Employees Fund and Fire Plans were projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. I. Pension Liability Sensitivity The following presents the City of Richfield's proportionate share of the net pension liability for all plans it participates in, calculated using the discount rate disclosed in the preceding paragraph, as well as what the City of Richfield's proportionate share of the net pension liability would be if it were calculated using a discount rate 1 percentage point lower or 1 percentage point higher than the current discount rate: 1% Decrease in Current 1% Increase in City's proportionate share of the General Employees Fund net pension liability 14,809,071$ 8,371,056$ 3,075,545$ 1% Decrease in Current 1% Increase in City's proportionate share of the Police and Fire Fund net pension liability 20,859,412$ 10,513,185$ 2,007,201$ Discount Rate (6%) Discount Rate (7%) Discount Rate (8%) Discount Rate (6%) Discount Rate (7%) Discount Rate (8%) J. Pension Plan Fiduciary Net Position Detailed information about each pension plan's fiduciary net position is available in a separately issued PERA financial report that includes financial statements and required supplementary information. That report may be obtained on the Internet at www.mnpera.org. Public Employees Defined Contribution Plan (Defined Contribution Plan) Three council members of the City of Richfield are covered by the Public Employees Defined Contribution Plan (PEDCP), a multiple-employer deferred compensation plan administered by PERA. 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. City of Richfield Notes to Basic Financial Statements 92 NOTE 10 - DEFINED BENEFIT PENSION PLANS (CONTINUED) Public Employees Defined Contribution Plan (Defined Contribution Plan) (Continued) J. Pension Plan Fiduciary Net Position (Continued) The defined contribution plan consists of individual accounts paying a lump-sum benefit. Plan benefits depend solely on amounts contributed to the plan plus investment earnings, less administrative expenses; therefore, there is no future liability to the City. 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. For ambulance service personnel, employer contributions are determined by the employer, and for salaried employees contributions must be a fixed percentage of salary. Employer contributions for volunteer personnel may be a unit value for each call or period of alert duty. Employees who are paid for their services may elect to make member contributions in an amount not to exceed the employer share. Employer and employee contributions are combined and used to purchase shares in one or more of the seven accounts of the Minnesota Supplemental Investment Fund. For administering the plan, PERA receives 2% of employer contributions and twenty-five hundredths of one percent (0.25%) of the assets in each member's account annually. Pension expense for the year is equal to the contributions made. Total contributions made by the City of Richfield during fiscal year 2023 were: 5% Contribution Amount Percentage of Covered Payroll Employee Employer Employee Employer Required Rate 3,585$ 3,585$ 5%5% NOTE 11 - OTHER POST EMPLOYMENTS BENEFITS A. Plan Description The City provides a single-employer defined benefit health care plan to eligible retirees and their spouses. The plan offers medical coverage that is administered by Health Partners. It is the City's policy to periodically review its medical coverage and to obtain requests for proposals in order to provide the most favorable benefits and premiums for City employees and retirees. No assets are accumulated in a trust. B. Benefits Provided At retirement, employees of the City receiving a retirement or disability benefit, or eligible to receive a benefit, from a Minnesota public pension plan may continue to participate in the City's group health insurance plan. C. Members As of December 31, 2022, the following were covered by the benefit terms: Inactive Plan Members or Beneficiaries Currently Receiving Benefit Payments 16 Active Plan Members 218 Total 234 City of Richfield Notes to Basic Financial Statements 93 NOTE 11 - OTHER POST EMPLOYMENTS BENEFITS (CONTINUED) D. Contributions Retirees and their spouses contribute to the health care plan at the same rate as City employees. This results in retirees receiving an implicit rate subsidy. Contribution requirements are established by the City, based on the contract terms with BlueCross BlueShield. The required contributions are based on projected pay-as-you-go financing requirements. For 2023, the City contributed $144,967 to the plan. E. Actuarial Assumptions The total OPEB liability was determined by an actuarial valuation as of December 31, 2021, using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified: Discount Rate 4.05% Expected Long-Term investment Return N/A 20-Year Municipal Bond Yield 4.05% Inflation Rate 2.50% Salary Increases N/A Medical Trend Rate 6.2% in 2022 grading to 5.2% in 2025 Key Methods and Assumptions Used in Valuation of Total OPEB Liability Mortality Rate - The mortality rates used are in the PERA plan of which the employee, retiree or beneficiary is a participant. 1. Coordinated Healthy Pre-Retirement RP-2014 Employee Mortality Table, adjusted for white collar and mortality improvements using projection scale MP-2018, from a base year of 2014. Rates are set forward one year for males and set back one year for females. Healthy Post-Retirement RP-2014 Healthy Annuitant Mortality Table, adjusted for white collar and mortality improvements using projection scale MP-2018, from a base year of 2014. Rates are set forward two years for males. Female rates are multiplied by a factor of 0.90. Disabled RP-2014 Disabled Mortality Table, adjusted for mortality improvements using projection scale MP-2018, from a base year of 2014. Rates are set forward one year for males and set forward six years for females. 2. Police and Fire Healthy Pre-Retirement RP-2014 employee generational mortality table projected with mortality improvement scale MP-2018, from a base year of 2006. City of Richfield Notes to Basic Financial Statements 94 NOTE 11 - OTHER POST EMPLOYMENTS BENEFITS (CONTINUED) E. Actuarial Assumptions (Continued) 2. Police and Fire (Continued) Healthy Post-Retirement RP-2014 annuitant generational mortality table projected with mortality improvement scale MP-2018 from a base year of 2006. Male rates are adjusted by a factor of 0.96. Disabled RP-2014 annuitant generational mortality table projected with mortality improvement scale MP-2018 from a base year of 2006. Male rates are adjusted by a factor of 0.96 The discount rate used to measure the total OPEB liability was 4.05%. F. Total OPEB Liability The City's total OPEB liability of $2,008,200 was measured as of December 31, 2023 and was determined by an actuarial analysis as of that date. Total OPEB Liability Balances at December 31, 2022 2,116,475$ Changes for the year Service cost 254,038 Interest 47,246 Changes of assumptions (255,608) Benefit payments (153,951) Net changes (108,275) Balances at December 31, 2023 2,008,200$ Changes of assumptions and other inputs reflect a change in the discount rate from 2.06% as of December 31, 2022 to 4.05% as of December 31, 2023. City of Richfield Notes to Basic Financial Statements 95 NOTE 11 - OTHER POST EMPLOYMENTS BENEFITS (CONTINUED) G. OPEB Liability Sensitivity The following presents the City's total OPEB liability calculated using the discount rate of 4.05% as well as the liability measured using 1% lower and 1% higher than the current discount rate. 1% Decrease in Current 1% Increase in Discount Rate Discount Rate Discount Rate (3.05%)(4.05%)(5.05%) 2,135,381$ 2,008,200$ 1,885,862$ Total OPEB Liability The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated using health care trend rates that are 1% lower and 1% higher than the current health care trend rates. 1% Decrease in Current 1% Increase in Trend Rate Trend Rate Trend Rate 1,783,503$ 2,008,200$ 2,276,508$ Total OPEB Liability (5.2% Decreasing to 4%) (6.2% Decreasing to 5%) (7.2% Decreasing to 6%) H. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the year ended December 31, 2023 the City recognized OPEB expense of $185,104. At December 31, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Deferred Outflows of Inflows of Resources Resources Differences between expected and actual experience 474,316$ 543,868$ Changes of assumptions 135,526 644,814 Contributions subsequent to the measurement date 97,404 - Total 707,246$ 1,188,682$ City of Richfield Notes to Basic Financial Statements 96 NOTE 11 - OTHER POST EMPLOYMENTS BENEFITS (CONTINUED) H. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB (Continued) The $97,404 reported as deferred outflows of resources related to OPEB resulting from the City's contributions to OPEB subsequent to the measurement date will be recognized as a reduction of the OPEB liability in the year ended December 31, 2024. The $707,246 reported as deferred outflows of resources and $1,188,682 reported as deferred inflows of resources related to OPEB resulting from changes in assumptions in the year ended December 31, 2023. Amounts reported as deferred outflows and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: Total (107,196)$ (107,196) (109,359) (108,862) (91,123) (55,104) Total (578,840)$ Thereafter 2024 2025 2026 2027 2028 Year Ending December 31, NOTE 12 - RIGHT-OF-WAY In 2002 the City acquired three properties for a total cost of $7,000,000 for Interstate 494 widening right-of-way under the Metropolitan Council Right-of-Way Acquisition Loan Fund (RALF). Under the RALF program, the City is obligated to return to the Metropolitan Council the proceeds of all RALF properties sold to the State of Minnesota. These RALF obligations and related properties have not been recorded since they do not represent true resources or liabilities of the City. NOTE 13 - CONDUIT DEBT From time to time, the City has issued various industrial development revenue bonds to provide financial assistance to private-sector entities for the acquisition and construction of industrial and commercial facilities deemed to be in the public interest. The bonds are secured by the property financed and are payable solely from payments received on the underlying mortgage loans. Upon repayment of the bonds, ownership of the acquired facilities transfers to the private-sector entity served by the bond issuance. Neither the City, the State, nor any political subdivision thereof is obligated in any manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. Finally, the City does not track the remaining outstanding principal balances on conduit debt, as the City does not have any obligation toward the debt. City of Richfield Notes to Basic Financial Statements 97 NOTE 13 - CONDUIT DEBT (CONTINUED) As of December 31, 2023 there was one bond issue outstanding with an estimated aggregate principal amount outstanding of approximately $10,000,000. NOTE 14 - TAX INCREMENT FINANCING The Richfield Housing and Redevelopment Authority (HRA) have entered into 10 Tax Increment Financing agreements which meet the criteria for disclosure under Governmental Accounting Standards Board Statement No. 77 Tax Abatement Disclosures. The HRA's authority to enter into these agreements comes from Minnesota Statute § 469. The HRA entered into these agreements for the purpose of economic development. Under each agreement, the City and developer agree on an amount of development costs to be reimbursed to the developer by the HRA through tax revenues from additional taxable value of the property generated by the development (tax increment). A "pay-as-you-go" note is established for this amount, on which the HRA makes payments for a fixed period of time with available tax increment after deducting for certain administrative costs. The HRA has determined through its agreements with developers and state law to grant abatements of up to 90% of annual property taxes through a direct reduction of the entity's property tax bill. There were no agreements in 2023 that exceeded this 90% threshold. During the year ended December 31, 2023, the HRA generated $6,686,247 in tax increment revenue and made $3,327,938 in payments to developer. The tax abatement agreements that the HRA has outstanding as of December 31, 2023 are the following: Amount of Taxes Abated Purpose During the Year Senior housing and market rate housing 75 %430,858$ Business redevelopment 75 299,018 Rental housing 90 84,218 Mixed-use housing and retail 75 748,478 Mixed-use housing and retail - 425,245 Mixed-use housing and retail 90 353,997 Mixed-use housing and retail 75 506,828 Senior housing 75 142,637 Retail redevelopment - 72,909 Rental housing - 418,365 Rental housing - 135,497 Percentage of Taxes Abated During the Year City of Richfield Notes to Basic Financial Statements 98 NOTE 15 - FEDERAL AND STATE FUNDS The City received financial assistance from federal and state governmental agencies in the form of grants. The disbursement of funds received under these programs generally requires compliance with the terms and conditions specified in the grant agreements and are subject to audit by the grantor agencies. Any disallowed claims resulting from such audits could become a liability of the applicable fund. However, in the opinion of management, any such disallowed claims will not have a material effect on any of the financial statements of the individual fund types included herein or on the overall financial position of the City at December 31, 2023. NOTE 16 - NATURE AND AMOUNT OF SIGNIFICANT TRANSACTIONS BETWEEN CITY - HRA As noted in note 1, the HRA was established for the purpose to provide housing and redevelopment assistance to Richfield residents and businesses. The structure of the HRA is that it has no employees per se; however, it has a contract with the City where the City's Community Development department is to provide services as needed. Accordingly, the City charges the HRA for labor provided, data processing services, and office supplies, etc. In addition, to help fund redevelopment projects, the City will issue long term debt on behalf of the HRA. At the same time the HRA enters into a pledge agreement with the City whereby the HRA pledges future tax increment receipts generated by the redevelopment to service the debt issued. During 2023, the HRA transferred to the City $872,009 of tax increment receipts to fund debt service requirements for debt issued on behalf of the HRA. Finally, during 2013, as part of the North Richfield Parkway project, the City purchased several properties with the future intent to convey the properties to the HRA for future redevelopment of the site. Funding for the property purchases was provided by the $3,120,000 G.O. Improvement Bonds, Series 2013A. The bonds were issued with a debt service structure of 75% to be paid with a debt service tax levy and 25% to be paid by special assessments levied against the HRA, once the properties were conveyed to the HRA. The amount of the special assessment was $780,000. During 2014, the City conveyed the properties to the HRA at a value of $704,639 and levied the planned special assessments against the HRA. As part of the special assessment process the HRA prepaid the $780,000 with funding provided by the City in the form of an inter fund loan from the City's Capital Improvement Fund. The term of the loan will be twenty (20) years with no principal and interest payments due the first two years and then payment beginning in year three with an interest rate of 1%.The repayment of the loan will have three sources in the following priority; land sale proceeds, tax increment revenues and funds of the HRA that are legally available to pay on the loan. In 2016, the City conveyed several properties to the HRA at a book value of $1,264,063. The City Council determined that since the HRA was the development agency of the City, it would be appropriate for ease of future development that the properties be legally owned by the HRA. City of Richfield Notes to Basic Financial Statements 99 NOTE 17 - JOINT VENTURE A. Local Government Information Systems Association (LOGIS) This consortium of approximately 30 government entities provides computerized data processing and support services to its members. LOGIS is legally separate; the City does not appoint a voting majority of its board, and the Consortium is fiscally independent of the City. The total amount recorded within the 2023 financial statements of the City was $803,801 for services provided, which is allocated to the various funds based on applications. Complete financial statements may be obtained at the LOGIS offices located at 5750 Duluth Street, Golden Valley, Minnesota 55422. NOTE 18 – PRIOR PERIOD ADJUSTMENT For the year ended December 31, 2023, a prior period adjustment was required to adjust beginning net position for the Ice Arena Fund to correct a prior year misstatement. Beginning net position was adjusted to correct an overstatement of accounts receivable related to ice arena rental revenue. 100 101 REQUIRED SUPPLEMENTARY INFORMATION CITY OF RICHFIELD RICHFIELD, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2023 See notes to required supplementary information. 102 December 31,December 31,December 31,December 31, 2018 2019 2020 2021 Total OPEB Liability Service cost 184,122$ 202,165$ 146,639$ 183,028$ Interest 83,730 84,039 100,980 49,990 - - (987,796) 18,865 Changes of assumptions 53,295 (110,794) 144,714 59,622 Benefit payments (109,190) (113,317) (74,575) (96,235) 211,957 62,093 (670,038) 215,270 Beginning of year 2,085,544 2,297,501 2,359,594 1,689,556 End of year 2,297,501$ 2,359,594$ 1,689,556$ 1,904,826$ 15,900,000$ 16,500,000$ 16,600,000$ 17,100,000$ 14.4%14.3%10.2%11.1% City of Richfield Schedule of Changes in Total OPEB Liability and Related Ratios Note: Schedule is intended to show ten year trend. Additional years will be reported as they become available. No assets are accumulated in a trust for OPEB. Total OPEB liability as a percentage Covered employee payroll of covered employee payroll Differences between expected and actual experience Net change in total OPEB liability 103 December 31,December 31, 2022 2023 214,592$ 254,038$ 43,201 47,246 585,621 - (468,540) (255,608) (163,225) (153,951) 211,649 (108,275) 1,904,826 2,116,475 2,116,475$ 2,008,200$ 18,800,000$ 19,500,000$ 11.3%10.3% See notes to required supplementary information. 104 City's Covered - Employee Payroll 2015 0.1596%8,271,300$ -$ 8,271,300$ 9,226,400$ 89.6%78.2% 2016 0.1587%12,885,653 168,215 13,053,868 9,846,133 130.9%68.9% 2017 0.1507%9,620,589 121,007 9,741,596 9,711,387 99.1%75.9% 2018 0.1520%8,432,337 276,621 8,708,958 10,214,587 82.6%79.5% 2019 0.1491%8,243,405 256,322 8,499,727 10,555,547 78.1%80.2% 2020 0.1530%9,173,049 282,832 9,455,881 10,910,907 84.1%79.1% 2021 0.1563%6,674,710 203,866 6,878,576 11,253,880 59.3%87.0% 2022 0.1546%12,244,371 359,121 12,603,492 11,581,413 105.7%76.7% 2023 0.1497%8,371,056 230,721 8,601,777 11,903,267 70.3%83.1% Note: Schedule is intended to show ten year trend. Additional years will be reported as they become available. For Fiscal Year Ended June 30, City's Proportion of the Net Pension Liability (Asset) City's Proportionate Share of the Net Pension Liability (Asset) State's Proportionate Share (Amount) of the Net Pension Liability Associated with the City City's Proportionate Share of the Net Pension Liablility and the State's Proportionate Share of the Net Pension Liablility Associated with the City City's Covered - Employee Payroll City's Proportionate Share of the Net Pension Liability (Asset) as a Percentage of its Covered - Employee Payroll Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 2015 0.6030%6,851,491$ -$ 6,851,491$ 5,371,889$ 127.5%86.6% 2016 0.6560%26,326,421 - 26,326,421 6,317,469 416.7%63.9% 2017 0.5910%7,979,203 - 7,979,203 6,070,907 131.4%85.4% 2018 0.6046%6,389,999 - 6,389,999 6,371,512 100.3%88.8% 2019 0.6387%6,713,383 - 6,713,383 6,587,723 101.9%89.3% 2020 0.6287%8,230,357 195,222 8,425,579 7,092,654 116.0%87.2% 2021 0.6000%4,577,363 208,222 4,785,585 7,091,288 64.5%93.7% 2022 0.6276%27,310,672 1,193,051 28,503,723 7,624,186 358.2%70.5% 2023 0.6088%10,513,185 423,463 10,936,648 7,995,051 131.5%86.5% Note: Schedule is intended to show ten year trend. Additional years will be reported as they become available. Schedule of City's Proportionate Share of Net Pension Liability - Public Employees Police and Fire Retirement Fund Last Ten Years* City of Richfield Schedule of City's Proportionate Share of Net Pension Liability - General Employees Retirement Fund Last Ten Years* City's Proportionate Share of the Net Pension Liablility and the State's Proportionate Share of the Net Pension Liablility Associated with the City For Fiscal Year Ended June 30, City's Proportionate Share (Percentage) of the Net Pension Liability (Asset) City's Proportionate Share (Amount) of the Net Pension Liability (Asset) State's Proportionate Share (Amount) of the Net Pension Liability Associated with the City City's Proportionate Share of the Net Pension Liability (Asset) as a Percentage of its Covered - Employee Payroll Plan Fiduciary Net Position as a Percentage of the Total Pension Liability See notes to required supplementary information. 105 2015 706,736$ 706,736$ -$ 9,423,147$ 7.50% 2016 726,143 726,143 - 9,681,907 7.50% 2017 742,606 742,606 - 9,901,413 7.50% 2018 783,227 783,227 - 10,443,027 7.50% 2019 812,029 812,029 - 10,827,053 7.50% 2020 837,463 837,463 - 11,166,173 7.50% 2021 861,454 861,454 - 11,486,053 7.50% 2022 869,515 869,515 - 11,593,533 7.50% 2023 935,761 935,761 - 12,476,813 7.50% Note: Schedule is intended to show ten year trend. Additional years will be reported as they become available. 2015 948,453$ 948,453$ -$ 5,854,648$ 16.20% 2016 1,000,004 1,000,004 - 6,172,864 16.20% 2017 1,004,300 1,004,300 - 6,199,383 16.20% 2018 1,048,095 1,048,095 - 6,469,722 16.20% 2019 1,217,879 1,217,879 - 7,185,127 16.95% 2020 1,262,187 1,262,187 - 7,131,000 17.70% 2021 1,343,767 1,343,767 - 7,591,904 17.70% 2022 1,383,252 1,383,252 - 7,814,983 17.70% 2023 1,432,678 1,432,678 - 8,094,226 17.70% Note: Schedule is intended to show ten year trend. Additional years will be reported as they become available. City of Richfield Schedule of City Contributions - General Employees Retirement Fund Last Ten Years* City's Covered Payroll Contributions as a Percentage of Covered Payroll Last Ten Years* Contributions in Relation to the Statutorily Required Contributions Fiscal Year Ending December 31, Fiscal Year Ending December 31, Statutorily Required Contribution Contributions in Relation to the Statutorily Required Contributions Contribution Deficiency (Excess) Public Employees Police and Fire Retirement Fund Contribution Deficiency (Excess) City's Covered Payroll Contributions as a Percentage of Covered Payroll Statutorily Required Contribution Schedule of City Contributions - 106 City of Richfield Notes to Required Supplementary Information General Employees Fund 2023 Changes Changes in Actuarial Assumptions The investment return assumption and single discount rate were changed from 6.5% to 7.0%. Changes in Plan Provisions An additional one-time direct state aid contribution of $170.1 million was contributed to the Plan on October 1, 2023. The vesting period of those hired after June 30, 2010, was changed from five years of allowable service to three years of allowable service. The benefit increase delay for early retirements on or after January 1, 2024, was eliminated. A one-time, non-compounding benefit increase of 2.5% minus the actual 2024 adjustment will be payable in a lump sum for calendar year 2024 by March 31, 2024. 2022 Changes Changes in Actuarial Assumptions The mortality improvement scale was changed from scale MP-2020 to scale MP-2021. Changes in Plan Provisions There have been no changes since the prior valuation. 2021 Changes Changes in Actuarial Assumptions The investment return and single discount rates were changed from 7.5% to 6.5% for financial reporting purposes. The mortality improvement scale was changed from scale MP-2019 to scale MP-2020. Changes in Plan Provisions There have been no changes since the prior valuation. 2020 Changes Changes in Actuarial Assumptions The price inflation assumption was decreased from 2.5% to 2.25%. The payroll growth assumption was decreased from 3.25% to 3.0%. Assumed salary increase rates were changed as recommended in the June 30, 2019, experience study. The net effect is assumed rates that average 0.25% less than previous rates. Assumed rates of retirement were changed as recommended in the June 30, 2019, experience study. The changes result in more unreduced (normal) retirements and slightly fewer Rule of 90 and early retirements. Assumed rates of termination were changes as recommended in the June 30, 2019, experience study. The new rates are based on service and are generally lower than the previous rates for years 2-5 and slightly higher thereafter. Assumed rates of disability were changed as recommended in the June 30, 2019, experience study. The change results in fewer predicted disability retirements for males and females. The base mortality table for healthy annuitants and employees was changed from the RP-2014 table to the Pub-2010 General Mortality table, with adjustments. The base mortality table for disabled annuitants was changed from the RP-2014 disabled annuitant mortality table to the Pub-2010 General/Teacher disabled annuitant mortality table, with adjustments. The mortality improvement scale was changed from Scale MP-2018 to Scale MP-2019. 107 City of Richfield Notes to Required Supplementary Information General Employees Fund (Continued) 2020 Changes (Continued) Changes in Actuarial Assumptions (Continued) The assumed spouse age difference was changed from two years older for females to one year older. The assumed number of married male new retirees electing the 100% Joint and Survivor option changed from 35% to 45%. The assumed number of married female new retires electing the 100% Joint and Survivor option changed from 15% to 30%. The corresponding number of married new retirees electing the Life annuity option was adjusted accordingly. Changes in Plan Provisions Augmentation for current privatized members was reduced to 2.0% for the period July 1, 2020 through December 31, 2023, and 0.0% thereafter. Augmentation was eliminated for privatizations occurring after June 30, 2020. 2019 Changes Changes in Actuarial Assumptions The mortality projection scale was changed from MP-2017 to MP-2018. Changes in Plan Provisions The employer supplemental contribution was changed prospectively, decreasing from $31.0 million to $21.0 million per year. The State's special funding contribution was changed prospectively, requiring $16.0 million due per year through 2031. 2018 Changes Changes in Actuarial Assumptions The mortality projection scale was changed from MP-2015 to MP-2017. The assumed benefit increase was changed from 1.0% per year through 2044 and 2.5% per year thereafter to 1.25% per year. 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. Annual 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. 108 City of Richfield Notes to Required Supplementary Information General Employees Fund (Continued) 2017 Changes Changes in Actuarial Assumptions The CSA loads were changed from 0.8% for active members and 60% for vested and non-vested deferred members. The revised CSA loads are now 0.0% for active member liability, 15% for vested deferred member liability and 3% for non-vested deferred member liability. The assumed annual increase rate was changed from 1.0% per year for all years to 1.0% per year through 2044 and 2.5% per year thereafter. Changes in Plan Provisions The State's contribution for the Minneapolis Employees Retirement Fund equals $16,000,000 in 2017 and 2018, and $6,000,000 thereafter. The Employer Supplemental Contribution for the Minneapolis Employees Retirement Fund changed from $21,000,000 to $31,000,000 in calendar years 2019 to 2031. The State's contribution changed from $16,000,000 to $6,000,000 in calendar years 2019 to 2031. 2016 Changes Changes in Actuarial Assumptions The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2035 and 2.5% per year thereafter to 1.0% per year for all future years. The assumed investment return was changed from 7.9% to 7.5%. The single discount rate was changed from 7.9% to 7.5%. Other assumptions were changed pursuant to the experience study dated June 30, 2015. The assumed future salary increases, payroll growth, the inflation was decreased by 0.25% to 3.25% for payroll growth and 2.50% for inflation. Changes in Plan Provisions There have been no changes since the prior valuation. 2015 Changes Changes in Actuarial Assumptions The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2030 and 2.5% per year thereafter to 1.0% per year through 2035 and 2.5% per year thereafter. Changes in Plan Provisions On January 1, 2015, the Minneapolis Employees Retirement Fund was merged into the General Employees Fund, which increased the total pension liability by $1.1 billion and increased the fiduciary plan net position by $892 million. Upon consolidation, state and employer contributions were revised; the State's contribution of $6.0 million, which meets the special funding situation definition, was due September 2015. 109 City of Richfield Notes to Required Supplementary Information Police and Fire Fund 2023 Changes Changes in Actuarial Assumptions The investment return assumption was changed from 6.5% to 7.0%. The single discount rate changed from 5.4% to 7.0%. Changes in Plan Provisions Additional one-time direct state aid contribution of 19.4 million will be contributed to the Plan on October 1, 2023. Vesting requirement for new hires after June 30, 2014, was changed from a graded 20-year vesting schedule to a graded 10-year vesting schedule, with 50% vesting after five years, increasing incrementally to 100% after 10 years. A one-time, non-compounding benefit increase of 3.0% will be payable in a lump sum for calendar year 2024 by March 31, 2024. Psychological treatment is required effective July 1, 2023, prior to approval for a duty disability benefit for a psychological condition relating to the member's occupation. The total and permanent duty disability benefit was increased, effective July 1, 2023. 2022 Changes Changes in Actuarial Assumptions The mortality improvement scale was changed from scale MP-2020 to scale MP-2021. The single discount rate was changed from 6.5% to 5.4%. Changes in Plan Provisions There have been no changes since the prior valuation. 2021 Changes Changes in Actuarial Assumptions The investment return and single discount rates were changed from 7.5% to 6.5% for financial reporting purposes. The inflation assumption was changed from 2.5% to 2.25%. The payroll growth assumption was changed from 3.25% to 3.0%. The base mortality table for healthy annuitants and employees was changed from the RP-2014 table to the Pub-2010 Public Safety mortality table. The mortality improvement scale was changed from MP-2019 to MP-2020. The base mortality table for disabled annuitants was changed from the RP-2014 healthy annuitant mortality table (with future mortality improvement according to scale MP-2019) to the Pub-2010 Public Safety disabled annuitant mortality table (with future mortality improvement according to scale MP-2020). Assumed rates of salary increase were modified as recommended in the July 14, 2020, experience study. The overall impact is a decrease in gross salary increase rates. Assumed rates of retirement were changed as recommended in the July 14, 2020, experience study. The changes resulted in slightly more unreduced retirements and fewer assumed early retirements. Assumed rates of withdrawal were changed from select and ultimate rates to service-based rates. The changes resulted in more assumed terminations. Assumed rates of disability were increased for ages 25-44 and decreased for ages over 49. Overall, proposed rates resulted in more projected disabilities. Assumed percent married for active female members was changed from 60% to 70%. Minor changes to form of payment assumptions were applied. 110 City of Richfield Notes to Required Supplementary Information Police and Fire Fund (Continued) 2021 Changes (Continued) Changes in Plan Provisions There have been no changes since the prior valuation. 2020 Changes Changes in Actuarial Assumptions The mortality projection scale was changed from MP-2018 to MP-2019. Changes in Plan Provisions There have been no changes since the prior valuation. 2019 Changes Changes in Actuarial Assumptions The mortality projection scale was changed from MP-2017 to MP-2018. Changes in Plan Provisions There have been no changes since the prior valuation. 2018 Changes Changes in Actuarial Assumptions The mortality projection scale was changed from MP-2016 to MP-2017. Changes in Plan Provisions Annual increases were changed to 1.00% for all years, with no trigger. An end date of July 1, 2048, was added to the existing $9.0 million state contribution. New annual state aid will equal $4.5 million in fiscal years 2019 and 2020, and $9.0 million thereafter until the plan reaches 100% funding, or July 1, 2048, if earlier. Member contributions were changed from 10.80% to 11.30% of pay, effective January 1, 2019, and 11.80% of pay, effective January 1, 2020. Employer contributions were changed from 16.20% to 16.95% of pay, effective January 1, 2019, and 17.70% of pay, effective January 1, 2020. Interest credited on member contributions decreased from 4.00% to 3.00%, beginning July 1, 2018. Deferred augmentation was changed to 0.00%, effective January 1, 2019. Augmentation that has already accrued for deferred members will still apply. Actuarial equivalent factors were updated to reflect revised mortality and interest assumptions. 2017 Changes Changes in Actuarial Assumptions Assumed salary increases were changed as recommended in the June 30, 2016, experience study. The net effect is proposed rates that average 0.34% lower than the previous rates. Assumed rates of retirement were changed, resulting in fewer retirements. The CSA load was 30% for vested and non-vested deferred members. The CSA has been changed to 33% for vested members and 2% for non-vested members. The base mortality table for healthy annuitants was changed from the RP-2000 fully generational table to the RP-2014 fully generational table (with a base year of 2006), with male rates adjusted by a factor of 0.96. The mortality improvement scale was changed from Scale AA to Scale MP-2016. The base mortality table for disabled annuitants was changed from the RP-2000 disabled mortality table to the mortality tables assumed for healthy retirees. 111 City of Richfield Notes to Required Supplementary Information Police and Fire Fund (Continued) 2017 Changes (Continued) Changes in Actuarial Assumptions (Continued) Assumed termination rates were decreased to 3% for the first three years of service. Rates beyond the select period of three years were adjusted, resulting in more expected terminations overall. Assumed percentage of married female members was decreased from 65% to 60%. Assumed age difference was changed from separate assumptions for male members (wives assumed to be three years younger) and female members (husbands assumed to be four years older) to the assumption that males are two years older than females. The assumed percentage of female members electing Joint and Survivor annuities was increased. The assumed annual benefit increase rate was changed from 1% for all years to 1% per year through 2064 and 2.5% thereafter. The single discount rate was changed from 5.6% per annum to 7.5% per annum. Changes in Plan Provisions There have been no changes since the prior valuation. 2016 Changes Changes in Actuarial Assumptions The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2037 and 2.5% thereafter to 1.0% per year for all future years. The assumed investment return was changed from 7.9% to 7.5%. The single discount rate changed from 7.9% to 5.6%. The single discount rate changed from 7.90% to 5.60%. The assumed future salary increases, payroll growth, and inflation was decreased by 0.25% to 3.25% for payroll growth and 2.50% for inflation. Changes in Plan Provisions There have been no changes since the prior valuation. 2015 Changes Changes in Actuarial Assumptions The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2030 and 2.5% per year thereafter to 1.0% per year through 2037 and 2.5% per year thereafter. Changes in Plan Provisions The post-retirement benefit increase to be paid after attainment of the 90% funding threshold was changed, from inflation up to 2.5%, to a fixed rate of 2.5%. 112 113 COMBINING AND INDIVUDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES CITY OF RICHFIELD RICHFIELD, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2023 114 Special Revenue Redevelopment Bonds Park Capital Projects Total Nonmajor Governmental Funds Assets Cash and investments 6,120,463$ -$ 1,593,113$ 7,713,576$ Interest receivable 17,794 - 3,719 21,513 Accounts receivable 585,974 - 26,054 612,028 Lease receivable 270,099 - - 270,099 Due from other governments 63,350 - - 63,350 Special assessment receivable Delinquent 4,961 - - 4,961 Deferred 128,715 - - 128,715 Advances to other Funds 256,582 - 175,540 432,122 Prepaid items 63 - - 63 Total assets 7,448,001$ -$ 1,798,426$ 9,246,427$ Liabilities Accounts and contracts payable 55,892$ -$ 1,206$ 57,098$ Deposits payable - - 6,035 6,035 Accrued salaries payable 8,576 - - 8,576 Due to other governments 10,976 - - 10,976 Unearned revenue 5,333 - - 5,333 Advances from other funds - - 175,540 175,540 Total liabilities 80,777 - 182,781 263,558 Deferred Inflows of Resources Unavailable revenue - special assessments 133,676 - - 133,676 Deferred inflows of resources related to leases receivable 269,109 - - 269,109 Total deferred inflows of resources 402,785 - - 402,785 Fund Balances Nonspendable 63 - - 63 Restricted 2,723,522 - - 2,723,522 Committed 4,240,854 - 1,615,645 5,856,499 Total fund balances 6,964,439 - 1,615,645 8,580,084 Total liabilities, deferred inflows of resources, and fund balances 7,448,001$ -$ 1,798,426$ 9,246,427$ City of Richfield Nonmajor Governmental Funds Combining Balance Sheet December 31, 2023 115 Special Revenue Redevelopment Bonds Park Capital Projects Total Nonmajor Governmental Funds Revenues Taxes 2,258,302$ -$ -$ 2,258,302$ Special assessments 73,604 - - 73,604 Intergovernmental 2,021,849 872,010 - 2,893,859 Charges for services 575,990 - - 575,990 Fines and forfeitures 28,494 - - 28,494 Interest earnings (loss)213,905 - 47,235 261,140 Miscellaneous 353,284 - 25,700 378,984 Total revenues 5,525,428 872,010 72,935 6,470,373 Expenditures Current Administrative services 778,964 - - 778,964 Public safety 170,216 - - 170,216 Recreation services 1,016,454 - 14,757 1,031,211 Capital outlay Recreation services - - 439,994 439,994 Debt service Principal - 815,000 - 815,000 Interest and other charges - 57,010 - 57,010 Total expenditures 1,965,634 872,010 454,751 3,292,395 Excess of revenues over (under) expenditures 3,559,794 - (381,816) 3,177,978 Other Financing Sources (Uses) Transfers in 950,000 - 675,000 1,625,000 Transfers out (2,770,927) - (265,000) (3,035,927) Total other financing sources (uses)(1,820,927) - 410,000 (1,410,927) Net change in fund balances 1,738,867 - 28,184 1,767,051 Fund Balances Beginning of year 5,225,572 - 1,587,461 6,813,033 End of year 6,964,439$ -$ 1,615,645$ 8,580,084$ City of Richfield Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Year Ended December 31, 2023 116 Liquor Contributions Fund Tourism Admin Communications Public Safety Aid Assets Cash and temporary investments 147,061$ 60,479$ 1,563,055$ 1,604,296$ Interest receivable 441 165 4,459 - Accounts receivable - 7,959 84,767 - Lease receivable - - - - Due from other governments - - - - Special assessment receivable Delinquent - - - - Deferred - - - - Advances to other funds - - 256,582 - Prepaid items - - 21 - Total assets 147,502$ 68,603$ 1,908,884$ 1,604,296$ Liabilities Accounts and contracts payable -$ 16,132$ 3,220$ -$ Accrued salaries payable - - 7,655 - Due to other governments - - - - Unearned revenue - - - - Total liabilities - 16,132 10,875 - Deferred Inflows of Resources Unavailable revenue - special assessments - - - - Deferred inflows of resources related to leases receivable - - - - Total deferred inflows of resources - - - - Fund Balances Nonspendable - - 21 - Restricted - - - 1,604,296 Committed 147,502 52,471 1,897,988 - Total fund balances 147,502 52,471 1,898,009 1,604,296 Total liabilities, deferred inflows of resources, and fund balances 147,502$ 68,603$ 1,908,884$ 1,604,296$ Special Revenue City of Richfield Nonmajor Special Revenue Funds Combining Balance Sheet December 31, 2023 117 Drug/ Forfeiture Public Safety Compliance Recreation Contribution Nature Center Contribution Public Health Grants Wood Lake Half Marathon 287,767$ 252,077$ 78,128$ 215,710$ 126,287$ 80,006$ 843 741 883 624 378 289 - 2,422 200 - - - - - 105,304 - - - - 7,568 4,492 8,006 14,412 - - - - - - - - - - - - - - - - - - - - - - - - - 288,610$ 262,808$ 189,007$ 224,340$ 141,077$ 80,295$ -$ 1,198$ 4,467$ 1,807$ -$ -$ - - - - - - - - - 1 10,174 - - 4,083 1,250 - - - - 5,281 5,717 1,808 10,174 - - - - - - - - - 101,733 - - - - - 101,733 - - - - - - - - - 288,610 - 81,557 222,532 130,903 - - 257,527 - - - 80,295 288,610 257,527 81,557 222,532 130,903 80,295 288,610$ 262,808$ 189,007$ 224,340$ 141,077$ 80,295$ Special Revenue 118 Utility Francise Fees Opioid Settlement Recreation Special Program Swimming Pool Assets Cash and temporary investments 788,656$ 131,741$ 232,590$ 228,778$ Interest receivable 6,360 341 542 171 Accounts receivable 485,406 - - 1,220 Lease receivable - - - - Due from other governments - - 1,484 27,388 Special assessment receivable Delinquent - - 4,961 - Deferred - - 128,715 - Advances to other funds - - - - Prepaid items - - 14 14 Total assets 1,280,422$ 132,082$ 368,306$ 257,571$ Liabilities Accounts and contracts payable -$ -$ 197$ 27,491$ Accrued salaries payable - - - 921 Due to other governments - - - 460 Unearned revenue - - - - Total liabilities - - 197 28,872 Deferred Inflows of Resources Unavailable revenue - special assessments - - 133,676 - Deferred inflows of resources related to leases receivable - - - - Total deferred inflows of resources - - 133,676 - Fund Balances Nonspendable - - 14 14 Restricted - 132,082 - - Committed 1,280,422 - 234,419 228,685 Total fund balances 1,280,422 132,082 234,433 228,699 Total liabilities, deferred inflows of resources, and fund balances 1,280,422$ 132,082$ 368,306$ 257,571$ Special Revenue Fund City of Richfield Nonmajor Special Revenue Funds Combining Balance Sheet December 31, 2023 119 Special Facility Wood Lake Endownment Total Nonmajor Special Revenue Funds 61,070$ 262,762$ 6,120,463$ 777 780 17,794 4,000 - 585,974 164,795 - 270,099 - - 63,350 - - 4,961 - - 128,715 - - 256,582 14 - 63 230,656$ 263,542$ 7,448,001$ 1,380$ -$ 55,892$ - - 8,576 341 - 10,976 - - 5,333 1,721 - 80,777 - - 133,676 167,376 - 269,109 167,376 - 402,785 14 - 63 - 263,542 2,723,522 61,545 - 4,240,854 61,559 263,542 6,964,439 230,656$ 263,542$ 7,448,001$ Special Revenue Fund 120 Liquor Contributions Fund Tourism Admin Communications Public Safety Aid Revenues Taxes Franchise -$ -$ 314,280$ -$ Lodging - 7,714 - - Special assessments - - - - Intergovernmental - - 100,000 1,604,296 Charges for services - - - - Fines and forfeitures - - - - Interest earnings (loss)5,541 2,073 55,940 - Miscellaneous - - - - Total revenues 5,541 9,787 470,220 1,604,296 Expenditures Current Administrative services - 5,440 665,437 - Public safety - - - - Recreation services - - - - Total expenditures - 5,440 665,437 - Excess of revenues over (under) expenditures 5,541 4,347 (195,217) 1,604,296 Other Financing Sources (Uses) Transfers in 550,000 - - - Transfers out (550,000) - - - Total other financing sources (Uses) - - - - Net change in fund balances 5,541 4,347 (195,217) 1,604,296 Fund Balances Beginning of year 141,961 48,124 2,093,226 - End of year 147,502$ 52,471$ 1,898,009$ 1,604,296$ Special Revenue City of Richfield Nonmajor Special Revenue Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Year Ended December 31, 2023 121 Drug/ Forfeiture Public Safety Compliance Recreation Contribution Nature Center Contribution Public Health Grants Wood Lake Half Marathon -$ -$ -$ -$ -$ -$ - - - - - - - - - - - - - 25,784 11,918 13,006 108,136 - - - - - - - 28,494 - - - - - 10,658 9,333 4,642 7,865 4,765 3,651 922 23,552 131,004 88,648 - 70,815 40,074 58,669 147,564 109,519 112,901 74,466 - - - - - - 25,253 40,873 - - 104,090 - - - 115,800 62,302 - 65,663 25,253 40,873 115,800 62,302 104,090 65,663 14,821 17,796 31,764 47,217 8,811 8,803 - - - - - - - - - - - - - - - - - - 14,821 17,796 31,764 47,217 8,811 8,803 273,789 239,731 49,793 175,315 122,092 71,492 288,610$ 257,527$ 81,557$ 222,532$ 130,903$ 80,295$ Speical Revenue 122 Utility Francise Fees Opioid Settlement Recreation Special Program Swimming Pool Revenues Taxes Franchise 1,936,308$ -$ -$ -$ Lodging - - - - Special assessments - - 73,604 - Intergovernmental - - 135,409 23,300 Charges for services - - - 520,633 Fines and forfeitures - - - - Interest earnings (loss)80,573 4,437 6,957 2,237 Miscellaneous - 27,310 3,054 1,492 Total revenues 2,016,881 31,747 219,024 547,662 Expenditures Current Administrative services 108,087 - - - Public safety - - - - Recreation services - 9,824 141,210 571,161 Total expenditures 108,087 9,824 141,210 571,161 Excess of revenues over (under) expenditures 1,908,794 21,923 77,814 (23,499) Other Financing Sources (Uses) Transfers in - - - 400,000 Transfers out (2,220,927) - - - Total other financing sources (Uses) (2,220,927) - - 400,000 Net change in fund balances (312,133) 21,923 77,814 376,501 Fund Balances Beginning of year 1,592,555 110,159 156,619 (147,802) End of year 1,280,422$ 132,082$ 234,433$ 228,699$ Special Revenue City of Richfield Nonmajor Special Revenue Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Year Ended December 31, 2023 123 Special Facility Wood Lake Endownment Total Nonmajor Special Revenue Funds -$ -$ 2,250,588$ - - 7,714 - - 73,604 - - 2,021,849 55,357 - 575,990 - - 28,494 5,420 9,813 213,905 737 5,750 353,284 61,514 15,563 5,525,428 - - 778,964 - - 170,216 50,494 - 1,016,454 50,494 - 1,965,634 11,020 15,563 3,559,794 - - 950,000 - - (2,770,927) - - (1,820,927) 11,020 15,563 1,738,867 50,539 247,979 5,225,572 61,559$ 263,542$ 6,964,439$ Special Revenue 124 Changes in Fund Balances - Budget and Actual Liqour Contributions Special Revenue Fund Year Ended December 31, 2023 Original Final Actual Amounts Revenues Interest earnings (loss)300$ 300$ 5,541$ 5,241$ Total revenues 300 300 5,541 5,241 Other Financing Sources (Uses) Transfers in 550,000 550,000 550,000 - Transfers out (550,000) (550,000) (550,000) - Total other financing sources (uses)- - - - Net change in fund balances 300$ 300$ 5,541 5,241$ Fund Balances Beginning of year 141,961 End of year 147,502$ Budgeted Amounts Variance with Final Budget - Over (Under) City of Richfield Schedule of Revenues, Expenditures, and 125 Changes in Fund Balances - Budget and Actual Tourism Admin Special Revenue Fund Year Ended December 31, 2023 Original Final Actual Amounts Revenues Taxes Lodging 5,300$ 5,300$ 7,714$ 2,414$ Interest earnings (loss)140 140 2,073 1,933 Total revenues 5,440 5,440 9,787 4,347 Expenditures Current Administrative services 5,440 5,440 5,440 - Total expenditures 5,440 5,440 5,440 - Net change in fund balances -$ -$ 4,347 4,347$ Fund Balances Beginning of year 48,124 End of year 52,471$ City of Richfield Schedule of Revenues, Expenditures, and Budgeted Amounts Variance with Final Budget - Over (Under) 126 Changes in Fund Balances - Budget and Actual Communications Special Revenue Fund Year Ended December 31, 2023 Original Final Actual Amounts Revenues Taxes Franchise 250,000$ 275,000$ 314,280$ 39,280$ Intergovernmental - - 100,000 100,000 Interest earnings (loss)5,000 5,000 55,940 50,940 Total revenues 255,000 280,000 470,220 190,220 Expenditures Current Administrative services 420,426 396,582 665,437 268,855 Capital outlay General government 150,000 150,000 - (150,000) Total expenditures 570,426 546,582 665,437 118,855 Net change in fund balances (315,426)$ (266,582)$ (195,217) 71,365$ Fund Balances Beginning of year 2,093,226 End of year 1,898,009$ City of Richfield Schedule of Revenues, Expenditures, and Budgeted Amounts Variance with Final Budget - Over (Under) 127 Changes in Fund Balances - Budget and Actual Drug/Forfeiture Special Revenue Fund Year Ended December 31, 2023 Original Final Actual Amounts Revenues Fines and forfeitures 35,000$ 35,000$ 28,494$ (6,506)$ Interest earnings (loss)750 500 10,658 10,158 Miscellaneous - 400 922 522 Total revenues 35,750 35,900 40,074 4,174 Expenditures Current Public safety 13,000 44,300 25,253 (19,047) Total expenditures 13,000 44,300 25,253 (19,047) Net change in fund balances 22,750$ (8,400)$ 14,821 23,221$ Fund Balances Beginning of year 273,789 End of year 288,610$ City of Richfield Schedule of Revenues, Expenditures, and Budgeted Amounts Variance with Final Budget - Over (Under) 128 Changes in Fund Balances - Budget and Actual Public Safety Compliance Special Revenue Fund Year Ended December 31, 2023 Original Final Actual Amounts Revenues Intergovernmental 15,000$ 18,100$ 25,784$ 7,684$ Interest earnings (loss)400 400 9,333 8,933 Miscellaneous 11,000 15,000 23,552 8,552 Total revenues 26,400 33,500 58,669 25,169 Expenditures Current Public safety 15,000 15,500 40,873 25,373 Total expenditures 15,000 15,500 40,873 25,373 Net change in fund balances 11,400$ 18,000$ 17,796 (204)$ Fund Balances Beginning of year 239,731 End of year 257,527$ City of Richfield Schedule of Revenues, Expenditures, and Budgeted Amounts Variance with Final Budget - Over (Under) 129 Changes in Fund Balances - Budget and Actual Recreation Contribution Special Revenue Fund Year Ended December 31, 2023 Original Final Actual Amounts Revenues Intergovernmental -$ -$ 11,918$ 11,918$ Interest earnings (loss)- - 4,642 4,642 Miscellaneous 56,000 65,000 131,004 66,004 Total revenues 56,000 65,000 147,564 82,564 Expenditures Current Recreation services 47,000 59,000 115,800 56,800 Total expenditures 47,000 59,000 115,800 56,800 Net change in fund balances 9,000$ 6,000$ 31,764 25,764$ Fund Balances Beginning of year 49,793 End of year 81,557$ City of Richfield Schedule of Revenues, Expenditures, and Budgeted Amounts Variance with Final Budget - Over (Under) 130 Changes in Fund Balances - Budget and Actual Nature Center Contribution Special Revenue Fund Year Ended December 31, 2023 Original Final Actual Amounts Revenues Intergovernmental -$ -$ 13,006$ 13,006$ Interest earnings (loss)- - 7,865 7,865 Miscellaneous 50,000 55,000 88,648 33,648 Total revenues 50,000 55,000 109,519 54,519 Expenditures Current Recreation services 10,410 11,756 62,302 50,546 Total expenditures 10,410 11,756 62,302 50,546 Net change in fund balances 39,590$ 43,244$ 47,217 3,973$ Fund Balances Beginning of year 175,315 End of year 222,532$ City of Richfield Schedule of Revenues, Expenditures, and Budgeted Amounts Variance with Final Budget - Over (Under) 131 Changes in Fund Balances - Budget and Actual Public Health Grants Special Revenue Fund Year Ended December 31, 2023 Original Final Actual Amounts Revenues Intergovernmental 610,978$ 244,415$ 108,136$ (136,279)$ Interest earnings (loss)- - 4,765 4,765 Total revenues 610,978 244,415 112,901 (131,514) Expenditures Current Public safety 177,835 177,835 104,090 (73,745) Total expenditures 177,835 177,835 104,090 (73,745) Net change in fund balances 433,143$ 66,580$ 8,811 (57,769)$ Fund Balances Beginning of year 122,092 End of year 130,903$ City of Richfield Schedule of Revenues, Expenditures, and Budgeted Amounts Variance with Final Budget - Over (Under) 132 Changes in Fund Balances - Budget and Actual Wood Lake Half Marathon Special Revenue Fund Year Ended December 31, 2023 Original Final Actual Amounts Revenues Interest earnings (loss)-$ -$ 3,651$ 3,651$ Miscellaneous 67,000 67,000 70,815 3,815 Total revenues 67,000 67,000 74,466 7,466 Expenditures Current Recreation services 62,000 62,000 65,663 3,663 Total expenditures 62,000 62,000 65,663 3,663 Net change in fund balances 5,000$ 5,000$ 8,803 3,803$ Fund Balances Beginning of year 71,492 End of year 80,295$ City of Richfield Schedule of Revenues, Expenditures, and Budgeted Amounts Variance with Final Budget - Over (Under) 133 Changes in Fund Balances - Budget and Actual Utility Franchise Fees Special Revenue Fund Year Ended December 31, 2023 Original Final Actual Amounts Revenues Taxes Franchise 1,898,000$ 1,900,000$ 1,936,308$ 36,308$ Interest earnings (loss)6,500 6,500 80,573 74,073 Total revenues 1,904,500 1,906,500 2,016,881 110,381 Expenditures Current Administrative services 45,000 45,000 108,087 63,087 Total expenditures 45,000 45,000 108,087 63,087 Excess of revenues over expenditures 1,859,500 1,861,500 1,908,794 47,294 Other Financing Uses Transfers out (2,496,000) (1,797,000) (2,220,927) (423,927) Net change in fund balances (636,500)$ 64,500$ (312,133) (376,633)$ Fund Balances Beginning of year 1,592,555 End of year 1,280,422$ City of Richfield Schedule of Revenues, Expenditures, and Budgeted Amounts Variance with Final Budget - Over (Under) 134 Changes in Fund Balances - Budget and Actual Opioid Settlement Special Revenue Fund Year Ended December 31, 2023 Original Final Actual Amounts Revenues Interest earnings (loss)-$ -$ 4,437$ 4,437$ Miscellaneous 33,527 19,099 27,310 8,211 Total revenues 33,527 19,099 31,747 12,648 Expenditures Current Recreation services - - 9,824 9,824 Total expenditures - - 9,824 9,824 Net change in fund balances 33,527$ 19,099$ 21,923 2,824$ Fund Balances Beginning of year 110,159 End of year 132,082$ City of Richfield Schedule of Revenues, Expenditures, and Budgeted Amounts Variance with Final Budget - Over (Under) 135 Changes in Fund Balances - Budget and Actual Recreation Special Program Special Revenue Fund Year Ended December 31, 2023 Original Final Actual Amounts Revenues Special assessments -$ -$ 73,604$ 73,604$ Intergovernmental 135,610 138,564 135,409 (3,155) Interest earnings (loss)- - 6,957 6,957 Miscellaneous 1,200 - 3,054 3,054 Total revenues 136,810 138,564 219,024 80,460 Expenditures Current Recreation services 155,750 79,943 141,210 61,267 Total expenditures 155,750 79,943 141,210 61,267 Net change in fund balances (18,940)$ 58,621$ 77,814 19,193$ Fund Balances Beginning of year 156,619 End of year 234,433$ City of Richfield Schedule of Revenues, Expenditures, and Budgeted Amounts Variance with Final Budget - Over (Under) 136 Changes in Fund Balances - Budget and Actual Swimming Pool Special Revenue Fund Year Ended December 31, 2023 Original Final Actual Amounts Revenues Intergovernmental -$ -$ 23,300$ 23,300$ Charges for services 495,660 495,660 520,633 24,973 Interest earnings (loss)- - 2,237 2,237 Miscellaneous - - 1,492 1,492 Total revenues 495,660 495,660 547,662 52,002 Expenditures Current Recreation services 524,990 525,150 571,161 46,011 Total expenditures 524,990 525,150 571,161 46,011 Excess of revenues over (under) expenditures (29,330) (29,490) (23,499) 5,991 Other Financing Sources Transfers in 320,000 320,000 400,000 80,000 Net change in fund balances 290,670$ 290,510$ 376,501 85,991$ Fund Balances Beginning of year (147,802) End of year 228,699$ City of Richfield Schedule of Revenues, Expenditures, and Budgeted Amounts Variance with Final Budget - Over (Under) 137 Changes in Fund Balances - Budget and Actual Specialty Facility Special Revenue Fund Year Ended December 31, 2023 Original Final Actual Amounts Revenues Charges for services 57,150$ 57,150$ 55,357$ (1,793)$ Interest earnings (loss)- - 5,420 5,420 Miscellaneous - - 737 737 Total revenues 57,150 57,150 61,514 4,364 Expenditures Current Recreation services 55,670 55,670 50,494 (5,176) Net change in fund balances 1,480$ 1,480$ 11,020 9,540$ Fund Balances Beginning of year 50,539 End of year 61,559$ City of Richfield Schedule of Revenues, Expenditures, and Budgeted Amounts Variance with Final Budget - Over (Under) 138 139 Original Final Actual Amounts Revenues Taxes Property taxes 21,026,215$ 21,026,215$ 18,035,728$ (2,990,487)$ Fiscal disparities - - 3,004,338 3,004,338 Total taxes 21,026,215 21,026,215 21,040,066 13,851 Special assessments - - 4,308 4,308 Licenses and permits Business 346,000 307,000 261,791 (45,209) Non-business 973,495 787,810 719,986 (67,824) Total licenses and permits 1,319,495 1,094,810 981,777 (113,033) Intergovernmental revenue Federal grants 229,580 160,710 129,400 (31,310) Local government aid 2,038,711 2,038,711 2,038,711 - Fire aid 181,000 208,595 230,802 22,207 Police aid 448,000 463,000 496,856 33,856 MSA 398,000 335,000 335,000 - Communitay health services 177,835 177,835 178,835 1,000 Other state grants and aids 50,277 118,011 220,217 102,206 County grants 21,040 21,040 21,040 - Other local grants and aids 500 31,000 - (31,000) Total intergovernmental revenue 3,544,943 3,553,902 3,650,861 96,959 Charges for services General government 32,000 42,250 32,928 (9,322) Deputy registrat 618,800 626,800 660,701 33,901 Public safety 26,550 26,296 12,745 (13,551) Public works 318,500 318,500 343,747 25,247 Park and recreation 230,680 230,010 286,648 56,638 Nature center 90,790 101,305 112,763 11,458 Community development 585,298 510,390 470,430 (39,960) Total charges for services 1,902,618 1,855,551 1,919,962 64,411 Fines and forfeitures 220,000 200,000 180,391 (19,609) Miscellaneous revenues Investment income 25,000 25,000 659,981 634,981 Refunds and reimbursements - - 30 30 Other 45,580 104,700 49,888 (54,812) Total miscellaneous revenues 70,580 129,700 709,899 580,199 Total revenues 28,083,851 27,860,178 28,487,264 627,086 Year Ended December 31, 2023 2023 City of Richfield General Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Variance with Final Budget - Over (Under) Budgeted Amounts 140 Original Final Actual Amounts Expenditures Current Legislative/executive Mayor and city council Personnel services 57,410$ 57,657$ 57,380$ (277)$ Other services and charges 180,105 179,016 163,876 (15,140) Total mayor and city council 237,515 236,673 221,256 (15,417) Other agencies Personnel services 33,500 33,500 36,110 2,610 Other services and charges 75,500 75,500 85,683 10,183 Total other agencies 109,000 109,000 121,793 12,793 City manager Personnel services 397,991 349,261 354,676 5,415 Other services and charges 52,920 67,884 47,752 (20,132) Total city manager 450,911 417,145 402,428 (14,717) Legal Other services and charges 351,390 351,440 289,360 (62,080) Total legislative/executive 1,148,816 1,114,258 1,034,837 (79,421) Administrative services Administration Personnel services 61,664 62,238 99,408 37,170 Other services and charges 92,105 91,347 88,734 (2,613) Total administration 153,769 153,585 188,142 34,557 Human resources Personnel services 57,231 110,596 62,198 (48,398) Other services and charges 62,480 62,644 54,258 (8,386) Total human resources 119,711 173,240 116,456 (56,784) City clerk Personnel services 616,181 550,458 543,033 (7,425) Other services and charges 111,191 114,141 111,631 (2,510) Total city clerk 727,372 664,599 654,664 (9,935) Total administrative services 1,000,852 991,424 959,262 (32,162) Finance Finance Personnel services 193,728 155,849 132,169 (23,680) Other services and charges 280,423 438,366 499,309 60,943 Total finance 474,151 594,215 631,478 37,263 Assessing Other services and charges 411,920 411,920 414,636 2,716 Total finance 886,071 1,006,135 1,046,114 39,979 2023 Budgeted Amounts Variance with Final Budget - Over (Under) City of Richfield General Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Year Ended December 31, 2023 141 Original Final Actual Amounts Expenditures (Continued) Current (continued) Public safety Administrative support services Personnel services 550,039$ 536,927$ 516,709$ (20,218)$ Other services and charges 585,173 574,572 615,014 40,442 Total administrative support services 1,135,212 1,111,499 1,131,723 20,224 Police operations Personnel services 8,023,760 7,747,294 7,778,447 31,153 Other services and charges 2,133,920 2,197,430 2,200,275 2,845 Total police operations 10,157,680 9,944,724 9,978,722 33,998 Emergency services Personnel services 10,100 10,100 96 (10,004) Other services and charges 29,630 29,580 22,618 (6,962) Total emergency services 39,730 39,680 22,714 (16,966) Total public safety 11,332,622 11,095,903 11,133,159 37,256 Fire Fire protection Personnel services 4,544,180 4,417,977 4,609,108 191,131 Other services and charges 791,770 979,378 1,009,589 30,211 Total fire 5,335,950 5,397,355 5,618,697 221,342 Community development Administration Other services and charges 80,000 80,000 86,187 6,187 Budgeted Amounts Variance with Final Budget - Over (Under) 2023 City of Richfield General Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Year Ended December 31, 2023 142 Original Final Actual Amounts Expenditures (Continued) Current (continued) Community development (continued) Planning and zoning Personnel services 237,360$ 234,170$ 241,425$ 7,255$ Other services and charges 77,910 77,460 34,793 (42,667) Total planning and zoning 315,270 311,630 276,218 (35,412) Inspection Personnel services 1,061,990 1,046,640 1,024,059 (22,581) Other services and charges 324,630 314,830 265,548 (49,282) Total engineering 1,386,620 1,361,470 1,289,607 (71,863) Total community development 1,781,890 1,753,100 1,652,012 (101,088) Public works Administration Personnel services 161,810 160,880 196,523 35,643 Other services and charges 43,450 44,310 35,771 (8,539) Total administration 205,260 205,190 232,294 27,104 Engineering Personnel services 364,510 349,640 436,396 86,756 Other services and charges 183,510 193,900 216,818 22,918 Total engineering 548,020 543,540 653,214 109,674 Streets Personnel services 1,386,540 1,366,770 1,393,195 26,425 Other services and charges 1,221,960 1,306,830 1,308,745 1,915 Total streets 2,608,500 2,673,600 2,701,940 28,340 Park maintenance Personnel services 907,350 866,030 758,475 (107,555) Other services and charges 677,010 718,380 718,256 (124) Total park maintenance 1,584,360 1,584,410 1,476,731 (107,679) Total public works 4,946,140 5,006,740 5,064,179 57,439 2023 Budgeted Amounts Variance with Final Budget - Over (Under) City of Richfield General Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Year Ended December 31, 2023 143 Original Final Actual Amounts Expenditures (Continued) Current (continued) Recreation services Recreation services administration Personnel services 370,770 368,560 367,401 (1,159) Other services and charges 112,580 135,440 183,533 48,093 Total recreation services administration 483,350 504,000 550,934 46,934 Recreation programs Personnel services 778,210 789,440 705,778 (83,662) Other services and charges 341,300 298,196 296,771 (1,425) Total recreation programs 1,119,510 1,087,636 1,002,549 (85,087) Wood Lake Nature Center Personnel services 506,310 525,685 516,637 (9,048) Other services and charges 142,260 129,650 139,811 10,161 Total wood lake nature center 648,570 655,335 656,448 1,113 Total recreation services 2,251,430 2,246,971 2,209,931 (37,040) Total expenditures 28,683,771 28,611,886 28,718,191 106,305 Excess of revenues over (under) expenditures (599,920) (751,708) (230,927) 520,781 Other Financing Sources (Uses) Transfers in 859,920 1,011,708 987,525 (24,183) Transfers out (260,000) (260,000) (260,000) - Total other financing sources (uses)599,920 751,708 727,525 (24,183) Net change in fund balances -$ -$ 496,598 496,598$ Fund Balances Beginning of year 10,990,390 End of year 11,486,988$ Year Ended December 31, 2023 2023 Budgeted Amounts Variance with Final Budget - Over (Under) City of Richfield General Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual 144 Central Garage and Equipment Information Technology Self Insurance Building Services Assets Current Assets Cash and temporary investments 2,149,958$ 535,512$ 5,231,743$ 1,149,703$ Receivables Accrued interest 3,371 1,150 15,789 2,259 Accounts 20,494 - 87,423 - Advances to other funds - - 70,176 - Prepaid expenses 60 62 - 48 Total current assets 2,173,883 536,724 5,405,131 1,152,010 Noncurrent Assets Advances to other funds - - 372,707 - Capital assets Construction in progress 415,457 - - - Buildings and structures 10,911,370 979,771 - 442,128 Less accumulated depreciation (7,461,773) (791,833) - (389,496) Total Capital Assets (Net of Accumulated Depreciation)3,865,054 187,938 - 52,632 Total Noncurrent Assets 3,865,054 187,938 372,707 52,632 Total assets 6,038,937 724,662 5,777,838 1,204,642 Deferred Outflows of Resources Deferred outflows of resources related to pensions 72,259 66,394 - 56,763 Deferred outflows of resources related to OPEB 1,431 6,572 - 3,769 Total Deferred Outflows of Rsources 73,690 72,966 - 60,532 Total assets and deferred outflows of resources 6,112,627$ 797,628$ 5,777,838$ 1,265,174$ Liabilities Current Liabilities Accounts and contracts payable 109,718$ 220,969$ 92,035$ 38,008$ Accrued salaries payable 15,194 17,898 - 14,144 Due to other governments 28,358 - - - Compensated absences payable - current 6,628 14,762 - 17,389 Total Current Liabilities 159,898 253,629 92,035 69,541 Noncurrent Liabilities Compensated absences payable 18,451 41,092 - 48,407 Claims and judgements - - 1,183,616 - Net pension liability 273,864 251,634 - 215,135 Other postemployment benefits payable 4,063 18,662 - 10,703 Total Noncurrent Liabilities 296,378 311,388 1,183,616 274,245 Total Liabilities 456,276 565,017 1,275,651 343,786 Deferred Inflows of Resources Deferred inflows of resources related to pensions 98,740 90,725 - 77,566 Deferred inflows of resources related to OPEB 2,405 11,046 - 6,335 Total Deferred Inflows of Resources 101,145 101,771 - 83,901 Net Position Net investment in capital assets 3,865,054 187,938 - 52,632 Unrestricted 1,690,152 (57,098) 4,502,187 784,855 Total Net Position 5,555,206 130,840 4,502,187 837,487 Total liabilities, deferred inflows of resources and net position 6,112,627$ 797,628$ 5,777,838$ 1,265,174$ December 31, 2023 City of Richfield Internal Service Funds Combining Statement of Net Position 145 Compensated Absences Total 2,493,697$ 11,560,613$ 7,067 29,636 - 107,917 - 70,176 - 170 2,500,764 11,768,512 - 372,707 - 415,457 - 12,333,269 - (8,643,102) - 4,105,624 - 4,478,331 2,500,764 16,246,843 - 195,416 - 11,772 - 207,188 2,500,764$ 16,454,031$ -$ 460,730$ - 47,236 - 28,358 630,802 669,581 630,802 1,205,905 1,755,974 1,863,924 - 1,183,616 - 740,633 - 33,428 1,755,974 3,821,601 2,386,776 5,027,506 - 267,031 - 19,786 - 286,817 - 4,105,624 113,988 7,034,084 113,988 11,139,708 2,500,764$ 16,454,031$ 146 Central Garage and Equipment Information Technology Self Insurance Operating Revenues Charges for services 1,506,828$ 1,217,614$ 880,912$ Operating Expenses Personnel services 481,353$ 543,300$ 497,627$ Other services and charges 1,213,966 1,022,766 398,430 Depreciation 938,260 26,177 - Total operating expenses 2,633,579 1,592,243 896,057 Operating Income (Loss)(1,126,751) (374,629) (15,145) Nonoperating Revenues Interest earnings (loss)42,783 14,455 207,872 Miscellaneous revenues 60,363 - 85,759 Gain on sale of capital assets 108,500 - - Total nonoperating revenues 211,646 14,455 293,631 Income (loss) before transfers and contributions (915,105) (360,174) 278,486 Other Financing Sources (Uses) Transfers In 880,000 203,500 56,500 Transfers out - - (56,500) Total other financing sources (uses)880,000 203,500 - Change in net position (35,105) (156,674) 278,486 Net position, January 1 5,590,311 287,514 4,223,701 Net position, December 31 5,555,206$ 130,840$ 4,502,187$ City of Richfield Internal Service Funds Combining Statement of Revenues, Expenses, and Changes in Net Position Year Ended December 31, 2023 147 Building Services Compensated Absences Total 1,017,967$ -$ 4,623,321$ 432,614$ -$ 1,954,894$ 603,450 - 3,238,612 25,567 - 990,004 1,061,631 - 6,183,510 (43,664) - (1,560,189) 28,360 88,910 382,380 - - 146,122 - - 108,500 28,360 88,910 637,002 (15,304) 88,910 (923,187) - - 1,140,000 - - (56,500) - - 1,083,500 (15,304) 88,910 160,313 852,791 25,078 10,979,395 837,487$ 113,988$ 11,139,708$ 148 Central Garage and Equipment Information Technology Self Insurance Cash Flows - Operating Activities Receipts from customers and users 1,486,434$ 1,217,614$ 862,580$ Other operating receipts 60,363 - 85,759 Payments to suppliers (863,644) (868,504) (768,044) Payments to employees (483,612) (526,359) (500,522) Net cash flows - operating activities 199,541 (177,249) (320,227) Cash Flows - Noncapital Financing Activities Financing activities Receipt of advances to other funds - - 68,788 Transfer from other funds 880,000 203,500 56,500 Transfer to other funds - - (56,500) Net cash flows - noncapital financing activities 880,000 203,500 68,788 Cash Flows - Capital and Related Financing Activities Proceeds from sale of capital assets 352,753 97,485 - Acquisition of capital assets (1,088,901) (160,433) - Net cash flows - capital and related financing activities (736,148) (62,948) - Cash Flows - Investing Activities Interest received 40,695 13,889 200,241 Net change in cash and cash equivalents 384,088 (22,808) (51,198) Cash and Cash Equivalents, January 1 1,765,870 558,320 5,282,941 Cash and Cash Equivalents, December 31 2,149,958$ 535,512$ 5,231,743$ Reconciliation of Operating Loss to Net Cash Flows - Operating Activities Operating loss (1,126,751)$ (374,629)$ (15,145)$ Adjustments to reconcile operating loss to net cash flows - loss to net cash flows - operating activities Depreciation expense 938,260 26,177 - Other income related to operations 60,363 - 85,759 Accounts receivable (20,394) - (18,332) Prepaid items 301,782 1,844 - OPEB liability expense 869 1,289 - Net pension liability expense 11,371 6,528 - Accounts payable 58,866 152,418 75,919 Due to other governmental units (10,326) - (14,809) Salaries payable (1,129) 466 (2,895) Compensated absences payable (13,370) 8,658 - Estimated payable for outstanding claims - - (430,724) Total adjustments 1,326,292 197,380 (305,082) Net cash flows - operating activities 199,541$ (177,249)$ (320,227)$ Year Ended December 31, 2023 City of Richfield Internal Service Funds Combining Statement of Cash Flows 149 Building Services Compensated Absences Total 1,017,967$ -$ 4,584,595$ - - 146,122 (587,217) - (3,087,409) (426,386) 149,599 (1,787,280) 4,364 149,599 (143,972) - - 68,788 - - 1,140,000 - - (56,500) - - 1,152,288 - 450,238 - - (1,249,334) - - (799,096) 27,275 85,318 367,418 31,639 234,917 576,638 1,118,064 2,258,780 10,983,975 1,149,703$ 2,493,697$ 11,560,613$ (43,664)$ -$ (1,560,189)$ 25,567 - 990,004 - - 146,122 - - (38,726) 1,434 - 305,060 1,306 - 3,464 3,806 - 21,705 14,799 - 302,002 - - (25,135) 554 - (3,004) 562 149,599 145,449 - (430,724) 48,028 149,599 1,416,217 4,364$ 149,599$ (143,972)$ 150 151 SUPPLEMENTARY FINANCIAL INFORMATION CITY OF RICHFIELD RICHFIELD, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2023 152 General Special Revenue Capital Projects Total Assets Cash and investments 2,419,757$ 2,647,729$ 13,815,041$ 18,882,527$ Taxes receivable - delinquent 14,649 - - 14,649 Accounts receivable 1,825 2,288 4,398 8,511 Interest receivable 6,973 10,592 33,942 51,507 Due from other funds 335,884 - 2,263,913 2,599,797 Due from other governments 1,665 106,469 52,412 160,546 Long term second mortgage receivable 148,988 2,289,189 - 2,438,177 Allowance for uncollectible accounts (148,988) (2,289,189) - (2,438,177) Land held for resale 112,696 - 4,467,090 4,579,786 Prepaid expenses - 7,486 - 7,486 Total assets 2,893,449$ 2,774,564$ 20,636,796$ 26,304,809$ Liabilities Accounts payable 190,031$ 33,778$ 518,383$ 742,192$ Deposits payable - - 32,938 32,938 Due to other funds - 68,372 2,531,425 2,599,797 Due to other governments 13 - 25,585 25,598 Total liabilities 190,044 102,150 3,108,331 3,400,525 Deferred Inflows of Resources Unavailable revenue - property taxes 14,649 - - 14,649 Fund Balances Nonspendable - 7,486 - 7,486 Restricted 112,696 - 9,983,197 10,095,893 Committed - 921,002 - 921,002 Assigned - 798,367 7,697,312 8,495,679 Unassigned 2,576,060 945,559 (152,044) 3,369,575 Total fund balances 2,688,756 2,672,414 17,528,465 22,889,635 Total liabilities, deferred inflows of resources, and fund balances 2,893,449$ 2,774,564$ 20,636,796$ 26,304,809$ Total fund balances reported above 22,889,635$ Amounts reported for the Housing and Redevelopment Authority in the Statement of Net Position are different because: Allocation to reflect consolidation on internal service fund activities related to component unit (639,110)$ Some receivables are not available soon enough to pay for the current period's expenditures, and therefore are reported as unavailable revenue in the funds Delinquent taxes receivable 14,649 Total net position - Housing and Redevelopment Authority 22,265,174$ Housing and Redevelopment Authority Combined Balance Sheet of Richfield, Minnesota December 31, 2023 Governmental Funds 153 General Special Revenue Capital Projects Total Revenues Tax increments -$ -$ 6,686,246$ 6,686,246$ Property taxes 666,533 - - 666,533 Intergovernmental 100,000 2,167,758 12,000 2,279,758 Investment income 90,253 124,210 505,940 720,403 Miscellaneous 165,897 44,072 15,331 225,300 Total revenues 1,022,683 2,336,040 7,219,517 10,578,240 Expenditures Current Housing and redevelopment Personnel services 291,350 228,320 246,967 766,637 Other services and charges 238,578 2,072,688 714,082 3,025,348 Capital outlay Housing and redevelopment 9,250 100,000 556,163 665,413 Debt Service Principal - - 851,865 851,865 Interest and other - - 2,987,168 2,987,168 Total expenditures 539,178 2,401,008 5,356,245 8,296,431 Excess of revenues over (under) expenditures 483,505 (64,968) 1,863,272 2,281,809 Other Financing Sources (Uses) Transfers in - 9,082 905,627 914,709 Transfers out (8,009) (40,213) (866,487) (914,709) Total other financing sources (uses)(8,009) (31,131) 39,140 - Net change in fund balances 475,496 (96,099) 1,902,412 2,281,809 Fund Balances Beginning of year 2,213,260 2,768,513 15,626,053 20,607,826 End of year 2,688,756$ 2,672,414$ 17,528,465$ 22,889,635$ Amounts reported for the Housing and Redevelopment Authority in the Statement of Activities are different because: Net change in fund balances - Housing and Redevelopment Authority 2,281,809$ Adjustment to reflect the consolidation of internal service fund activities related to component unit (33,324) Certain revenues are recognized as soon as they are earned. Under the modified accrual basis of accounting, certain revenues cannot be recognized until they are available to liquidate liabilities of the current period. Property taxes 8,952 Change in net position - Housing and Redevelopment Authority 2,257,437$ of Richfield, Minnesota Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Year Ended December 31, 2023 Housing and Redevelopment Authority Governmnetal Funds 154 of Richfield Minnesota Financial Data Schedules Balance Sheet December 31, 2023 111 Cash - unrestricted 176,968$ 122 Accounts receivable - HUD 6,860 124 Accounts receivable - other governments 19,609 128 Fraud recovery 15,288 128.1 Allowance for doubtful accounts - fraud (13,000) 129 Accrued interest receivable 646 Prepaid items 7,486 290 Total Assets 213,857$ 312 Accounts payable <= 90 days 179$ 347 Inter Program - Due To 68,372 Total Liabilities 68,551 512.4 Unrestricted 145,306 513 Total Net Position 145,306 600 Total Liabilities and Fund Balances 213,857$ Housing and Redevelopment Authority - Housing Choice Vouchers Assets Liabilities Net Position 155 70600 HUD PHA operating grants 1,985,845$ 71100 Investment income - unrestricted 8,167 71500 Other revenue 718,300 70000 Total revenues 2,712,312 Administrative expenses 91100 Administrative salaries 228,320 91500 Office expenses 25,107 91600 Other 21,804 91000 Total administrative expenses 275,231 General expenses 96200 Other general expenses 49,974 96900 Total expenditures 325,205 Excess (Deficiency) of Revenues Over (Under) Expenditures 2,387,107 97300 Housing assistance payments 1,717,492 97350 HAP Portability-in 635,125 90000 Total Other Expenses 2,352,617 Net Increase (Decrease) in Net Position 34,490 Net Position, January 1 110,816 Net Position, December 31 145,306$ Memo account information 11190 Unit months available 2,772 11210 Number of unit months leased 2,336 Notes: Financial Data Schedules - U.S. Department of Housing and Urban Development The City has presented the financial data schedules for its Housing and Redevelopment Authority. These schedules are presented on a modified accrual basis of accounting. The information in these schedules is presented in accordance with the U.S. Department of Housing and Urban Development, Office of Public Housing (HUD) and Indian Housing, Real Estate Assessment Center and the Financial Assessment Subsystem - Public Housing (FASS-PH). Accordingly, some of the amounts presented in these schedules may differ from the amounts presented in, or used in the preparation of, the City's basic financial statements. Housing and Redevelopment Authority - Housing Choice Vouchers of Richfield, Minnesota Financial Data Schedules Income Statement for the Year Ended December 31, 2023 Revenues Expenditures Other Expenses 156 Assets Cash and investments 1,195,047$ Property taxes receivable 5,410 Interest receivable 2,874 Deferred loan receivable 1,014,847 Allowance for uncollectible accounts (1,014,847) Total assets 1,203,331$ Liabilities Accounts payable 14,282$ Deferred Inflows of Resources Unavailable revenue - property taxes 5,410 Fund Balances Unassigned 1,183,639 Total fund balances 1,183,639 Total liabilities, deferred inflows of resources, and fund balances 1,203,331$ Fund balance reported above 1,183,639$ Some receivables are not available soon enough to pay for the current period's expenditures, and therefore are unavailable in the funds. Delinquent taxes 5,410$ Net Position of component unit activities 1,189,049$ City of Richfield Economic Development Authority Component Unit Balance Sheet December 31, 2023 157 Revenues Taxes 579,486$ Miscellaneous Investment income 36,230 Other 2,400 Total revenues 618,116 Expenditures Current Economic development Personnel services 107,924 Other services and charges 320,791 Total expenditures 428,715 Excess of revenues over (under) expenditures 189,401 Fund Balances Beginning of year 994,238 End of year 1,183,639$ Adjustment to reflect the change in other long-term assets not available to pay current period expenditures (390)$ Change in net position of component unit activities 189,011$ Year Ended December 31, 2023 Statement of Revenues, Expenditures, and Changes in Fund Balances Economic Development Authority Component Unit City of Richfield 158 159 STATISTICAL SECTION (UNAUDITED) CITY OF RICHFIELD RICHFIELD, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2023 160 City of Richfield, Minnesota Statistical Section (Unaudited) Net Position by Component Last Ten Fiscal Years (Accrual Basis of Accounting) 2014 2015 2016 2017 Governmental Activities Net investment in capital assets 53,868,489$ 53,489,119$ 51,478,014$ 46,432,821$ Restricted 3,625,019 6,159,180 3,093,111 3,388,199 Unrestricted 17,269,452 5,339,294 (428,034) (4,174,406) Total governmental activities net position 74,762,960$ 64,987,593$ 54,143,091$ 45,646,614$ Business-Type Activities Net investment in capital assets 14,105,007$ 14,610,034$ 16,757,963$ 19,656,557$ Restricted - - - - Unrestricted 9,019,091 2,723,163 2,429,606 4,155,490 Total business-type activities net position 23,124,098$ 17,333,197$ 19,187,569$ 23,812,047$ Total Primary Government Net investment in capital assets 67,973,496$ 68,099,153$ 68,235,977$ 60,155,878$ Restricted 3,625,019 6,159,180 3,093,111 3,388,199 Unrestricted 26,288,543 8,062,457 2,001,572 5,914,584 Total primary government net position 97,887,058$ 82,320,790$ 73,330,660$ 69,458,661$ Fiscal Year 161 Table 1 2018 2019 2020 2021 2022 2023 44,695,707$ 46,258,802$ 46,316,911$ 51,429,664$ 64,217,643$ 75,377,835$ 6,336,024 5,933,995 7,253,345 16,485,325 3,964,804 8,636,333 (8,092,783) (16,378,793) (8,288,323) (3,540,422) 411,109 (5,405,313) 42,938,948$ 35,814,004$ 45,281,933$ 64,374,567$ 68,593,556$ 78,608,855$ 23,309,355$ 20,657,979$ 20,657,979$ 21,303,212$ 21,550,313$ 19,177,441$ - - - - - - 4,418,358 5,970,660 5,970,660 6,361,197 8,177,018 12,086,805 27,727,713$ 26,628,639$ 26,628,639$ 27,664,409$ 29,727,331$ 31,264,246$ 59,206,662$ 58,559,804$ 58,758,640$ 64,876,476$ 78,279,906$ 87,445,726$ 6,336,024 5,933,995 7,253,345 16,485,325 3,964,804 8,636,333 5,123,975 (3,108,970) 5,898,587 10,677,175 16,076,177 13,791,042 70,666,661$ 61,384,829$ 71,910,572$ 92,038,976$ 98,320,887$ 109,873,101$ Fiscal Year 162 City of Richfield, Minnesota Statistical Section (Unaudited) Changes in Net Position (Continued on the Following Pages) Last Ten Fiscal Years (Accrual Basis of Accounting) 2014 2015 2016 2017 Expenses Governmental activities General government 3,102,253$ 3,112,271$ 3,503,975$ 3,261,312$ Public safety 11,767,776 12,512,132 16,846,901 13,706,386 Community development 1,360,558 1,390,908 1,489,202 1,364,675 Public works 9,647,341 15,932,128 16,161,254 15,028,590 Culture and recreation 3,882,319 3,973,233 4,244,085 4,142,433 Interest on long-term debt 1,220,893 1,118,400 1,786,750 1,751,627 Total governmental activities expenses 30,981,140 38,039,072 44,032,167 39,255,023 Business-type activities Liquor 10,639,175 10,246,033 10,018,719 10,729,098 Water and sewer utility 7,271,227 7,503,496 8,067,365 7,957,436 Storm sewer utility 1,220,584 1,263,819 1,462,684 1,623,854 Recreation fund - - - - Total business-type activities expenses 19,130,986 19,013,348 19,548,768 20,310,388 Total primary government expenses 50,112,126$ 57,052,420$ 63,580,935$ 59,565,411$ Program Revenues Governmental activities Charges for services General government 672,182$ 795,899$ 830,145$ 762,824$ Public safety 863,073 842,342 658,591 735,790 Community development 1,305,144 1,146,164 1,383,804 1,289,746 Public works 308,784 307,611 309,235 309,361 Culture and recreation 1,608,943 1,721,646 1,751,634 1,694,849 Operating grants and contributions 1,449,484 1,305,392 1,434,327 1,463,533 Capital grants and contributions 3,065,904 6,134,825 4,733,815 3,590,702 Total governmental activities program revenues 9,273,514 12,253,879 11,101,551 9,846,805 Business-type activities Charges for services Liquor 11,500,417 10,859,642 10,457,318 11,351,640 Water and sewer utility 7,222,179 7,314,887 7,647,683 8,023,101 Storm sewer utility 1,204,476 1,181,739 1,352,699 1,495,191 Capital grants and contributions - 200,000 - - Total business-type activities program revenues 19,927,072 19,556,268 19,457,700 20,869,932 Total primary government program revenues 29,200,586$ 31,810,147$ 30,559,251$ 30,716,737$ Fiscal Year 163 Table 2 2018 2019 2020 2021 2022 2023 3,205,714$ 3,365,461$ 3,443,118$ 3,591,071$ 4,535,832$ 4,416,925$ 12,958,838 14,234,972 14,767,550 14,455,290 17,406,811 19,165,643 1,552,826 1,676,267 1,601,218 1,730,362 1,758,662 8,969,774 13,039,259 21,901,131 11,146,122 8,969,332 9,179,955 5,653,215 4,308,628 4,196,419 3,426,087 4,666,522 5,308,282 1,788,215 1,563,101 1,449,654 1,487,038 1,317,337 1,380,404 1,290,114 36,628,366 46,823,904 35,871,133 34,729,914 39,569,946 41,283,886 10,824,828 11,904,943 12,384,877 12,979,538 13,299,880 12,700,999 8,262,064 8,330,939 8,272,505 8,380,422 9,343,582 9,330,452 1,720,653 1,924,222 2,057,741 2,043,408 2,129,905 2,640,186 - - - - - - 20,807,545 22,160,104 22,715,123 23,403,368 24,773,367 24,671,637 57,435,911$ 68,984,008$ 58,586,256$ 58,133,282$ 64,343,313$ 65,955,523$ 793,277$ 893,750$ 590,246$ 951,034$ 1,027,491$ 1,003,475$ 754,699 780,881 535,792 500,678 675,771 508,704 1,696,677 2,204,262 2,137,248 2,137,779 1,619,026 343,747 317,813 305,451 237,698 338,892 324,499 2,420,618 1,868,941 1,831,136 605,969 1,927,900 2,123,558 1,181,748 1,463,533 1,562,337 4,238,000 1,456,035 1,614,601 3,627,875 3,590,702 4,159,314 8,163,705 17,781,877 7,027,935 8,372,899 10,485,642 11,737,131 16,508,658 25,094,195 14,412,881 17,459,066 11,561,557 12,678,003 13,262,924 13,927,926 14,209,724 13,967,904 8,648,729 8,826,120 8,716,310 9,227,632 9,892,777 10,429,228 1,768,394 1,828,180 2,047,290 2,043,821 2,154,934 2,382,576 - - - - - - 21,978,680 23,332,303 24,026,524 25,199,379 26,257,435 26,779,708 32,464,322$ 35,069,434$ 40,535,182$ 50,293,574$ 40,670,316$ 44,238,774$ Fiscal Year 164 City of Richfield, Minnesota Statistical Section (Unaudited) Changes in Net Position (Continued on the Following Pages) Changes in Net Position (Continued) (Accrual Basis of Accounting) 2014 2015 2016 2017 Net Revenues (Expenses) Governmental activities (21,707,626)$ (25,755,193)$ (32,930,616)$ (29,789,259)$ Business-type activities 796,086 542,920 (91,068) 559,544 Total primary government net revenues (expenses)(20,911,540)$ (25,212,273)$ (33,021,684)$ (29,229,715)$ General Revenues and Other Changes in Net Position Governmental activities Taxes Property taxes 18,613,321$ 18,388,710$ 18,398,414$ 19,075,553$ Franchise taxes 1,973,751 2,230,602 2,260,122 2,264,759 Grants and contributions not restricted to specific programs 1,937,907 2,054,379 2,084,057 2,094,443 Other general revenues 809,564 1,069,172 940,123 1,573,837 Transfers 866,460 1,009,749 (1,596,613) (3,715,810) Total governmental activities 24,201,003 24,752,612 22,086,103 21,292,782 Business-type activities Other general revenues 309,319 335,616 348,827 349,124 Transfers (866,460) (1,009,749) 1,596,613 3,715,810 Special item - - - - Total business-type activities (557,141) (674,133) 1,945,440 4,064,934 Total primary government 23,643,862$ 24,078,479$ 24,031,543$ 25,357,716$ Change in Net Position Governmental activities 2,493,377$ (1,002,581)$ (10,844,502)$ (8,496,477)$ Business-type activities 238,945 (131,213) 1,854,372 4,624,478 Total primary government 2,732,322$ (1,133,794)$ (8,990,130)$ (3,871,999)$ Fiscal Year 165 Table 2 (Continued) 2018 2019 2020 2021 2022 2023 (26,142,724)$ (35,086,773)$ (19,272,475)$ (9,635,719)$ (25,157,065)$ (23,824,820)$ 1,171,135 1,172,199 1,311,401 1,796,011 1,484,068 2,108,071 (24,971,589)$ (33,914,574)$ (17,961,074)$ (7,839,708)$ (23,672,997)$ (21,716,749)$ 20,019,144$ 20,887,161$ 22,183,130$ 23,336,637$ 24,553,760$ 21,992,920$ 224,216 2,241,396 2,235,139 2,242,186 2,242,820 4,046,389 2,229,280 2,235,643 2,366,046 2,104,750 2,334,669 2,038,711 1,772,578 2,057,553 1,187,879 217,010 692,988 4,610,559 (2,727,229) 308,930 768,210 827,770 (448,183) 1,197,926 21,517,989 27,730,683 28,740,404 28,728,353 29,376,054 33,886,505 434,240 502,377 514,623 67,529 130,671 626,770 2,727,229 (308,930) (768,210) (827,770) 448,183 (1,197,926) (93,263) (335,943) - - - - 3,068,206 (142,496) (253,587) (760,241) 578,854 (571,156) 24,586,195$ 27,588,187$ 28,486,817$ 27,968,112$ 29,954,908$ 33,315,349$ (2,606,735)$ (7,356,090)$ 9,467,929$ 19,092,634$ 4,218,989$ 10,061,685$ 4,239,341 1,029,703 1,057,814 1,035,770 2,062,922 1,536,915 1,632,606$ (6,326,387)$ 10,525,743$ 20,128,404$ 6,281,911$ 11,598,600$ Fiscal Year 166 City of Richfield, Minnesota Statistical Section (Unaudited) Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified Accrual Basis of Accounting) 2014 2015 2016 2017 General Fund Nonspendable 57,292$ 3,667$ 15,799$ 141,195$ Restricted 22,000 - - - Unassigned 9,111,824 9,922,952 9,600,129 10,038,550 Total general fund 9,191,116$ 9,926,619$ 9,615,928$ 10,179,745$ All Other Governmental Funds Nonspendable 21,450$ 7,203$ 2,887$ 17,761$ Restricted 4,137,256 10,128,899 18,332,804 20,275,918 Committed 1,023,281 955,348 720,397 738,817 Assigned 13,249,048 14,066,297 13,408,861 17,069,166 Unassigned (2,727,214) (1,949,474) (1,847,409) (3,741,559) Total all other governmental funds 15,703,821$ 23,208,273$ 30,617,540$ 34,360,103$ Fiscal Year 167 Table 3 2018 2019 2020 2021 2022 2023 12,679$ 177,753$ 28,365$ 47,489$ 66,984$ 61,640$ - - 16,118 - - - 10,520,461 11,313,120 12,870,165 10,517,440 10,923,406 11,425,348 10,533,140$ 11,490,873$ 12,914,648$ 10,564,929$ 10,990,390$ 11,486,988$ 105,287$ 15,236$ 1,485$ 1,111$ 2,754$ 90$ 16,286,001 10,642,272 8,785,571 3,090,932 2,121,557 8,986,815 1,790,562 2,836,946 4,078,939 13,661,056 14,448,057 8,212,034 22,069,612 21,371,523 24,710,670 5,518,491 5,839,195 - (6,573,705) (4,101,728) (1,749,993) (3,798,986) (3,141,170) (2,899,672) 33,677,757$ 30,764,249$ 35,826,672$ 18,472,604$ 19,270,393$ 14,299,267$ Fiscal Year 168 Statistical Section (Unaudited) Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified Accrual Basis of Accounting) 2014 2015 2016 2017 Revenues Taxes 18,370,724$ 18,407,060$ 18,357,209$ 19,112,961$ Franchise taxes 1,973,751 2,230,602 2,260,122 2,264,759 Special assessments 975,724 222,667 194,607 206,140 Fines and forfeitures 493,947 442,278 279,437 345,143 License and permits 1,030,746 985,367 1,124,025 1,061,107 Intergovernmental 5,486,032 9,272,706 7,971,353 6,526,885 Charges for services 3,233,433 3,386,017 3,529,947 3,386,320 Interest earnings (loss)62,931 56,206 157,444 247,818 Miscellaneous 726,303 980,395 719,430 1,254,319 Total revenues 32,353,591 35,983,298 34,593,574 34,405,452 Expenditures Current General government 2,478,487 2,523,323 2,602,322 2,633,435 Public safety 11,322,841 11,781,433 12,367,364 12,471,350 Community development 1,297,986 1,337,103 1,330,766 1,349,571 Public works 7,424,484 13,814,201 13,457,283 12,643,244 Recreation services 3,207,929 3,282,355 3,382,122 3,379,327 Capital outlay 2,344,400 2,363,164 2,951,196 4,636,951 Debt service Principal 2,760,000 2,565,000 2,125,000 8,140,000 Interest and other charges 1,257,263 1,271,643 1,563,351 1,699,998 Bond issuance costs - - - - Total expenditures 32,093,390 38,938,222 39,779,404 46,953,876 Excess (Deficiency) of Revenues Over (Under) Expenditures 260,201 (2,954,924) (5,185,830) (12,548,424) Other Financing Sources (Uses) Bond proceeds - 9,100,000 11,215,000 12,175,000 Premium on bonds issued - 278,526 516,582 319,366 Sale of capital assets - - - - Payment to refunded bond escrow agent - - - (2,950,000) Transfers in 3,333,711 11,965,883 4,368,205 5,333,223 Transfers out (3,227,251) (11,848,134) (4,860,995) (6,172,033) Total other financing sources (uses)106,460 9,496,275 11,238,792 8,705,556 Net Change in Fund Balances 366,661$ 6,541,351$ 6,052,962$ (3,842,868)$ Debt Service as a Percentage of Noncapital Expenditures 13.5%10.5%10.0%23.3% Fiscal Year City of Richfield, Minnesota 169 Table 4 2018 2019 2020 2021 2022 2023 20,041,028$ 20,876,291$ 22,201,245$ 23,308,086$ 24,548,928$ 25,962,569$ 2,242,216 2,241,396 2,235,139 2,242,186 2,242,820 2,250,588 202,308 232,098 229,692 159,089 146,248 244,981 363,806 401,118 202,012 230,966 266,793 208,885 1,385,288 1,734,871 1,743,695 1,695,431 1,379,973 981,777 6,995,230 7,532,797 14,493,527 10,896,993 17,291,129 15,436,492 3,682,313 3,879,491 2,251,246 3,383,966 3,572,411 3,677,002 685,353 689,997 265,483 27,564 474,176 1,783,377 951,055 1,197,637 833,164 969,270 1,388,855 1,023,718 36,548,597 38,785,696 44,455,203 42,913,551 51,311,333 51,569,389 2,652,810 2,757,627 2,900,167 2,995,213 3,736,372 4,077,430 12,993,392 14,018,093 14,599,965 15,587,368 15,946,189 16,922,072 1,471,067 1,586,564 1,640,111 1,796,086 1,616,827 1,652,012 10,834,054 19,635,955 8,907,229 12,153,261 4,999,152 5,254,536 3,615,978 3,567,386 2,724,828 3,773,805 4,151,016 4,491,736 4,441,313 9,773,296 4,642,849 1,336,393 18,655,668 18,366,678 2,365,000 8,870,000 3,290,000 3,560,000 3,760,000 3,870,000 1,597,997 1,658,046 1,615,536 1,497,299 1,360,676 1,477,493 - - - - 110,227 - 39,971,611 61,866,967 40,320,685 42,699,425 54,336,127 56,111,957 (3,423,014) (23,081,271) 4,134,518 214,126 (3,024,794) (4,542,568) 9,770,000 5,290,000 4,365,000 - 5,565,000 - 151,774 314,825 170,520 - 195,727 - - - - - 500 - - - - (1,385,000) - - 11,296,324 12,196,655 11,766,403 5,532,754 6,059,926 5,733,451 (11,851,404) (12,887,725) (12,013,193) (5,769,984) (7,573,109) (5,619,025) 9,366,694 4,913,755 4,288,730 (1,622,230) 4,248,044 114,426 5,943,680$ (18,167,516)$ 8,423,248$ (1,408,104)$ 1,223,250$ (4,428,142)$ 11.1%20.2%13.7%14.3%14.2%14.1% Fiscal Year 170 Real Property Total Fiscal Commercial Personal Taxable Year Residential Apartments Industrial Property Market Value 2014 1,699,718,115$ 267,558,417$ 556,419,000$ 13,949,900$ 2,537,645,432$ 2015 1,765,025,018 292,412,930 590,097,800 19,771,100 2,667,306,848 2016 1,920,643,255 334,634,375 619,857,100 17,757,000 2,892,891,730 2017 2,078,843,492 379,947,517 596,335,200 20,497,500 3,075,623,709 2018 2,373,695,072 391,924,323 631,189,700 21,223,000 3,418,032,095 2019 2,533,077,293 489,451,590 641,809,900 21,104,000 3,685,442,783 2020 2,594,212,488 563,006,090 676,704,300 25,160,800 3,859,083,678 2021 2,828,914,390 609,514,200 672,025,000 12,868,200 4,123,321,790 2022 3,336,255,143 704,770,100 700,744,000 15,541,300 4,757,310,543 2023 3,409,420,309 796,733,100 738,664,000 13,617,600 4,958,435,009 Source: Hennepin County report Market Value and Tax Capacity Growth By City. City of Richfield Taxable and Estimated Market Values of Taxable Property Last Ten Fiscal Years (unaudited) 171 Table 5 Total Direct Estimated Tax Actual Rate Market Value 66.17 2,736,099,400$ 92.75 61.66 2,854,981,900 93.43 62.66 3,072,682,200 94.15 58.41 3,263,103,600 94.25 59.34 3,587,736,600 95.27 54.74 3,846,256,100 95.82 54.73 4,018,060,200 96.04 55.50 4,264,414,600 96.69 55.07 4,868,218,300 97.72 52.12 5,061,837,200 97.96 as a Percent of Estimated Actual Market Value Market Value Total Taxable 172 City of Richfield, MinnesotaStatistical Section (Unaudited)Property Tax Rates - Direct and Overlapping GovernmentsLast Ten Fiscal Years Table 6 FiscalYear 2014 56.790 7.670 1.710 66.170 34.140 49.950 10.580 160.840 % 2015 53.170 6.970 1.530 61.670 26.660 46.400 9.790 144.520 2016 53.190 7.800 1.670 62.660 28.770 45.360 9.530 146.320 2017 53.180 6.670 1.560 61.410 27.050 44.090 9.320 141.870 2018 49.580 8.150 1.610 59.340 37.050 42.810 8.970 148.170 2019 45.470 7.810 1.460 54.740 33.330 41.860 8.550 138.480 2020 45.120 8.170 1.440 54.730 32.660 41.080 8.220 136.690 2021 46.150 7.930 1.420 55.500 30.520 38.210 7.810 132.040 2022 45.843 7.838 1.385 55.066 28.708 38.535 7.849 130.158 2023 43.057 7.784 1.279 52.120 26.890 34.542 8.164 121.716 Source: Hennepin County Assessing Office RatesOverlappingDirect andSchoolDistrictCountyAgenciesHennepinDirect City Rates MetropolitanOverlapping Rates (1)Total General CityDebtHRATotal 173 City of Richfield, Minnesota Statistical Section (Unaudited) Principal Property Taxpayers Current and Nine Years Ago Table 7 Net Net Tax Tax Taxpayer Capacity Rank Taxpayer Capacity Rank Best Buy Company, Inc.2,369,250$ 1 4.03 %Best Buy Company, Inc.2,731,160$ 1 9.27 % Meridian Crossings LLC 1,256,430 2 2.14 Meridian Crossings LLC 1,126,550 2 3.82 JRK Investors, Inc.1,213,088 3 2.06 - JIW Inc.722,410 4 1.23 - Ryan Companies 488,530 5 0.83 - Morries Richfield JLR RE LL 412,270 6 0.70 - Menard, Inc.381,170 7 0.65 - CSM Corporation 371,270 8 0.63 CSM Corporation 327,390 3 1.11 ROP Investment Co., LLC 360,338 9 0.61 - Gina Fisher 358,810 10 0.61 The Gramercy Club City Bella 653935 4 2.22 - Brixmor SPE 5 LLC 432,610 5 1.47 - Crossroads at Penn LLC 364,113 6 1.24 - CSM Shops INC 343,370 7 1.16 - Woodlake-VEF IV LLC 334,250 8 1.13 - Silver Crest Properties LLC 299,458 9 1.02 - Target Corporation 299,310 10 1.02 Total 7,933,566$ 13.50 %6,912,146$ 23.45 % Source: Hennepin County Assessing Office Tax Capacity Tax Capacity 2023 2014 Percent of Percent of Total Net Total Net 174 City of Richfield, Minnesota Statistical Section (Unaudited) Property Tax Levies and Collections Last Ten Fiscal Years Table 8 Delinquent Total Tax Collections in Fiscal Levy for Subsequent Year Fiscal Year Amount Years Amount 2014 18,012,303$ 17,933,454$ 99.56 %-$ 17,933,454$ 99.56 % 2015 18,745,569 18,685,167 99.68 - 18,685,167 99.68 2016 19,125,557 19,001,616 99.35 - 19,001,616 99.35 2017 19,664,285 19,568,641 99.51 - 19,568,641 99.51 2018 21,083,735 20,972,448 99.47 (17,181) 20,955,267 99.39 2019 22,089,350 21,973,828 99.48 -69,989 22,043,817 99.79 2020 23,267,441 23,178,920 99.62 -(13,875) 23,165,045 99.56 2021 23,735,662 23,567,746 99.29 (82,567) 23,485,179 98.94 2022 25,777,379 25,636,397 99.45 38,674 25,675,072 99.60 2023 27,460,533 27,209,919 99.09 - 27,209,919 99.09 Source: Hennepin County Assessing Office Collected within the Total Collections to Date of Levy of Levy Percentage Percentage Fiscal Year of the Levy 175 Table 9 General 53000 Water and 51000 52000 Total Debt Fiscal Redevelopment Obligation (G.O.)Lease Storm Sewer Ice Arena Sewer Water Sewer Primary Per Year Bonds Bonds Payable Bonds Bonds Bonds Bonds Bonds Government Capita 2014 7,685,000$ 24,460,000$ -$ 4,557,831$ -$ 4,475,000$ 1,368,326$ -$ 42,546,157$ - %1,180$ 2015 7,020,000 31,989,510 - 5,983,079 - 4,210,000 5,273,618 - 54,476,207$ - 1,507 2016 6,340,000 42,212,887 - 7,150,861 - - 5,194,818 - 60,898,566$ - 1,666 2017 5,645,000 44,228,837 - 6,896,061 - - 4,846,018 - 61,615,916$ - 1,696 2018 4,940,000 52,399,608 - 6,516,261 - - 4,457,218 - 68,313,087$ - 1,869 2019 4,220,000 49,747,831 - 6,950,730 - - 5,304,682 1,141,176 67,364,419$ - 1,821 2020 3,475,000 51,621,351 - 8,357,825 - - 6,132,188 1,137,976 70,724,340$ - 1,912 2021 2,715,000 47,319,352 123,705 6,116,394 - - 5,651,987 1,094,776 63,021,214$ - 1,700 2022 1,925,000 49,983,779 98,827 8,786,936 - - 6,085,480 1,560,103 68,440,125$ - 1,873 2023 1,110,000 45,635,000 73,848 8,065,288 - - 5,337,541 1,452,171 61,673,848$ - 1,688 Details regarding the City's outstanding debt can be found in the notes to the financial statements. Information on personal income is not available. Percentage of Personal Income Business-Type ActivitiesGovernmental Activities City of Richfield, Minnesota Statistical Section (Unaudited) Ratios of Outstanding Debt by Type Last Ten Fiscal Years 176 City of Richfield, Minnesota Statistical Section (Unaudited) Ratios of General Bonded Debt Outstanding Last Ten Fiscal Years Table 10 Less: Amounts General Available in Fiscal Obligation Redevelopment Lease Debt Service Net Taxable Year Bonds Bonds Payable Total Fund Total Per Capita (2) 2014 24,460,000$ 7,685,000$ -$ 32,145,000$ 2,388,013$ 29,756,987$ 1.27%889$ 2015 31,989,510 7,020,000 - 39,009,510 1,653,862 37,355,648 1.46%1,067 2016 42,212,887 6,340,000 - 48,552,887 2,192,838 46,360,049 1.68%1,336 2017 44,228,837 5,645,000 - 49,873,837 1,904,043 47,969,794 1.62%1,372 2018 52,399,608 4,940,000 - 57,339,608 2,356,747 54,982,861 1.68%1,569 2019 49,747,831 4,220,000 - 53,967,831 3,039,324 50,928,507 1.46%1,481 2020 51,621,351 3,475,000 - 55,096,351 3,440,778 51,655,573 1.43%1,489 2021 47,319,352 2,715,000 123,705 50,158,057 5,067,755 45,090,302 1.22%1,356 2022 49,983,779 1,925,000 98,827 52,007,606 5,775,047 46,232,559 1.09%1,423 2023 45,635,000 1,110,000 73,848 46,818,848 6,263,293 40,555,555 0.94%1,110 Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. (1) See the Schedule of Assessed Value and Estimated Actual Value of Taxable Property for property value data. (2) Population data can be found in the Schedule of Demographic and Economic Statistics. Estimated Market Value of Property (1) Percentage of 177 City of Richfield, Minnesota Statistical Section (Unaudited) Computation of Direct and Overlapping Debt December 31, 2023 Table 11 Estimated Estimated Share of Debt Percentage Overlapping Governmental Unit Outstanding (1)Applicable (2)Debt Hennepin County 1,423,815,000$ 1.78 %25,343,907$ Independent School District #280, Richfield, MN 130,840,000 68.24 89,285,216 Hennepin Suburb Park District 59,870,000 2.45 1,466,815 Hennepin Regional RR Authority 81,665,000 1.78 1,453,637 Metropolitan Council 1,694,829,000 0.88 14,914,495 Total overlapping debt 3,391,019,000 132,464,070 City of Richfield 61,600,000 100.00 61,600,000 Total direct and overlapping debt 3,452,619,000$ 194,064,070$ Note: (1) Excludes Revenue bonds and special assessment bonds. (2) The percentage applicable to the City of Richfield was determined by dividing the portion of the tax capacity within the City by the total tax capacity of the taxing jurisdiction. Source: Hennepin County Assessing Office 178 City of Richfield, Minnesota Statistical Section (Unaudited) Legal Debt Margin Information Last Ten Fiscal Years 2014 2015 2016 2017 Debt limit 82,083$ 85,649$ 92,180$ 97,893$ Total net debt applicable to limit 22,875 30,910 29,522 42,506 Legal debt margin 59,208$ 54,739$ 62,658$ 55,387$ Total net debt applicable to the limit as a percent of debt limit 27.87%36.09%32.03%43.42% Fiscal Year 179 Table 12 2018 2019 2020 2021 2022 2023 107,632$ 115,388$ 120,542$ 127,932$ 146,047$ 151,855$ 50,769 47,972 47,440 44,306 47,135 46,745 56,863$ 67,416$ 73,102$ 83,626$ 98,911$ 105,110$ 47.17%41.57%39.36%34.63%32.27%30.78% Estimated market value 5,061,837,200$ Debt limit (3% of market value)151,855,116 Debt applicable to limit General Obligation Bonds 40,555,555 Legal debt margin 111,299,561$ Fiscal Year Legal Debt Margin Calculation for Fiscal Year 2023 180 City of Richfield, Minnesota Statistical Section (Unaudited) Revenue Bond Coverage Last Ten Fiscal Years Table 13 Direct Net Fiscal Gross Operating Available Year Revenue Expense (1)Revenue Principal Interest Total 2014 8,426,655$ (5)6,532,437$ 1,047,689$ 515,000$ 399,985$ 914,985$ 1.15 % 2015 8,496,626 (5)6,805,269 1,449,979 555,000 386,154 941,154 1.54 2016 4,929,871 (6)3,520,861 1,305,812 570,000 364,299 934,299 1.40 2017 5,195,297 (6)3,532,721 1,349,245 570,000 357,053 927,053 1.46 2018 5,771,247 (6)3,943,875 1,126,957 735,000 324,269 1,059,269 1.06 2019 10,654,300 (7)7,964,269 1,223,490 750,000 312,455 1,062,455 1.15 2020 10,763,600 (7)7,807,898 1,318,264 1,760,000 416,995 2,176,995 0.61 2021 11,090,412 (7)7,794,392 3,296,020 2,685,000 357,048 3,042,048 1.08 2022 11,663,916 (7)8,619,335 3,044,581 960,000 394,171 1,354,171 2.25 2023 12,448,664 9,309,303 3,139,361 865,000 842,500 1,707,500 1.84 Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. (1) Total operating expenses excluding depreciation. (2) Include principal and interest of revenue bonds only. (3) Storm sewer, Ice Arena, Water and Sewer revenue bonds. (4) Storm sewer, Ice Arena, Water and Sewer revenue bonds, and Water revenue bonds. (5) Storm sewer, Water and Sewer revenue bonds, and Water revenue bonds. (6) Storm sewer and Water revnue bonds. (7) Water, Sewer and storm sewer revenue bonds. Debt Service Requirements (2) Coverage 181 City of Richfield, Minnesota Statistical Section (Unaudited) Demographic and Economic Statistics Last Ten Fiscal Years Table 14 Per Capita Education Fiscal Personal Personal Median Level in Years School Year Population Income Income Age of Schooling Enrollment 2014 36,154 -$ -$ - - 4,396 3.0 % 2015 36,557 - - - - 4,302 2.6 2016 36,338 - - - - 4,235 3.2 2017 36,338 - - - - 4,231 2.7 2018 36,554 - - - - 4,127 2.7 2019 36,436 - - - - 4,084 2.3 2020 36,993 - - - - 4,010 4.9 2021 36,994 - - - - 4,139 2.6 2022 36,543 - - - - 4,151 2.6 2023 36,543 - - - - 4,139 2.8 Note: Information on personal income, median age, and education levels is not available. Data Sources Metropolitan Council (www.metrocouncil.org) Minnesota Dept of Employment and Economic Development (www.deed.state.mn.us) U.S. Census Bureau (www.factfinder2.census.gov) Richfield School District #280 Rate Unemployment 182 City of Richfield, Minnesota Statistical Section (Unaudited) Principal Employers Current Year and Nine Years Ago Table 15 Employees Rank Employees Rank Best Buy Corporate office 5,300 1 27.22 %Best Buy Corporate office 4,300 1 22.54 % U.S. Bancorp 1,350 2 6.93 U.S. Bancorp 1,560 2 8.18 Independent School District #280 1,057 3 5.43 Fraser 745 3 3.91 Super Target 350 4 1.80 Crystal Care Home Health 700 4 3.67 City of Richfield 327 5 1.68 Independent School District #280 587 5 3.08 Fraser 299 6 1.54 City of Richfield 339 6 1.78 Headway Emotional Health Services 250 7 1.28 Super Target 250 7 1.31 Menard, Inc.200 8 1.03 Dicks Sporting Goods 200 8 1.05 Weis Builders 100 9 0.51 Rainbow Foods 200 8 1.05 Pizza Luce 60 10 0.31 Metro Sales, Inc 190 10 1.00 Total 9,293 47.73 %9,071 47.57 % Note: Employee totals include only employees with full time status. * No updated information received for 2023. Source: Ehlers, Minnesota State Business Directory, Richfield Chamber of Commerce, and the Minnesota Manufactures Register. Employer Employer 2023 2014 Employment (1)Employment (1) Percent Percent of City of City 183 City of Richfield, MinnesotaStatistical Section (Unaudited)Full-Time Equivalent City Government Employees by FunctionLast Ten Fiscal YearsTable 162014 2015 2016 2017 2018 2019 2020 2021 2022 2023General GovernmentManagement services 3 3 3 3 3 3 3 3 3 4 Finance 6 5 6 6 5 6 5 2 4 7 City Clerk 9 9 10 9 9 10 10 10 10 8 Assessing 1 1 1 1 1 - - - - -Others 11 12 11 12 12 11 11 11 13 14 Public SafetyPolice 46 48 48 48 48 48 48 48 46 46 Dispatchers 8 - - - - - - - - -Others 14 14 14 14 14 14 14 15 15 14 FireFirefighters and officers 26 27 27 26 26 26 26 26 30 30 Community DevelopmentPlanning/zoning 2 2 2 2 2 2 2 2 2 3 Inspections 8 8 8 9 9 9 9 8 9 10 Others 8 6 7 8 8 8 10 9 8 6 Public WorksEngineering 3 3 3 4 4 5 5 5 5 5 Street and park maintenance 20 19 20 18 23 23 24 23 23 23 Forestry 4 4 4 4 - - - - Others 5 6 6 6 6 6 6 6 6 6 Parks and recreation 33 33 32 32 34 35 30 34 38 38 Liquor 26 25 23 24 24 25 28 33 29 34 Water and wastewater 18 17 16 18 19 19 19 17 19 19 Storm water 1 1 1 1 1 1 1 1 1 1 Recreation funds - - - - - - - - - - Total 252 243 242 245 248 251 251 253 261 268 Source: City budgets and personnel records.Function 184 City of Richfield, Minnesota Statistical Section (Unaudited) Operating Indicators by Function Last Ten Fiscal years Table 17 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Police Physical arrests 404 435 471 489 591 491 701 701 829 676 Total offenses cited 7,274 5,764 4,486 4,818 5,315 4,728 3,429 2,078 2,961 2,400 Fire Emergency responses 4,135 4,195 4,073 4,287 4,252 4,411 4,451 4,710 4,876 4,989 Fires extinguished 75 90 83 72 92 88 104 87 87 100 Other public works Streets resurfacing (miles)- 14.30 15.00 16.00 14.40 15 14.25 3 1.5 0.5 Potholes repaired (tons of asphalt used)306.46 100.79 81.40 18.64 84.93 98.2 138.52 97.32 69.9 33.5 Parks and recreation Athletic field permits issued 52 55 56 53 57 58 30 49 39 36 Water New connections 4 2 6 9 10 11 54 31 18 10 Connections eliminated (redevelopment)17 4 18 3 - 6 - 2 3 3 Water main breaks 9 19 16 15 14 11 12 9 20 11 Average daily consumption (millions of gallons)2.90 2.84 2.70 2.70 2.71 2.55 2.76 2.72 2.69 2.76 Peak daily consumption (millions of gallons)6.01 4.97 4.80 5.23 5.26 3.88 3.03 4.94 4.40 6.87 Waste water Average daily sewage treatment (million of gallons)3.16 3.16 3.14 3.02 2.42 1.70 2.60 2.65 2.28 2.10 Note: Indicators are not available for the general government function Sources: Various city departments Function 185 City of Richfield, Minnesota Statistical Section (Unaudited) Capital Asset Statistics by Function Last Ten Fiscal Years Table 18 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Police Stations 1 1 1 1 1 1 1 1 1 1 Fire stations 2 2 2 2 2 2 2 2 2 2 Other public works Streets (miles)123.43 123.43 123.43 123.43 123.43 123.43 123.43 123.43 123.67 123.67 Highway (miles)7.17 7.17 7.17 7.17 7.17 7.17 7.17 7.17 7.17 7.17 Street lights 3,349 3,349 3,349 3,349 3,349 3,349 3,349 3,458 3,458 3,458 Traffic signals 49 49 49 49 47 43 43 43 43 43 Parks and recreation Acreage 461 461 461 461 461 461 461 461 461 461 Playgrounds 21 21 21 21 21 21 21 21 21 21 Baseball/softball diamonds 21 21 21 21 21 21 21 21 21 21 Soccer/football fields 4 4 4 4 4 4 4 4 4 4 Hockey rinks - indoor 2 2 2 2 2 2 2 2 2 2 Community Center 1 1 1 1 1 1 1 1 1 1 Nature Center 1 1 1 1 1 1 1 1 1 1 Water Water mains (miles)121 121 121 120 120 120 120 120 118 118 Fire hydrants 1,048 1,052 1,050 1,053 1,053 1,073 1,073 1,074 1,074 1,074 Storage capacity (millions of gallons)5 5 5 5 5 5 5 5 5 5 Wastewater Sanitary sewer (miles)119.4 119.4 119.4 119.4 118.0 118.0 118.0 118.0 97.2 97.2 Storm sewer (miles)59.9 59.9 59.9 59.9 59.9 59.9 59.9 59.9 86.0 86.0 Note: No capital asset indicators are available for the general governments Sources: Various city departments Function City of Richfield Communications Letter December 31, 2023 City of Richfield Table of Contents Report on Matters Identified as a Result of the Audit of the Basic Financial Statements 1 Material Weaknesses 3 Other Deficiency 4 Required Communication 5 Financial Analysis 10 Emerging Issues 22 1 Report on Matters Identified as a Result of the Audit of the Basic Financial Statements Honorable Mayor and Members of the City Council and Management City of Richfield Richfield, Minnesota In planning and performing our audit of the basic financial statements of the governmental activities, business-type activities, the discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Richfield, Minnesota, as of and for the year ended December 31, 2023, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, we considered the City's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control over financial reporting. Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and, therefore, material weaknesses or significant deficiencies may exist that have not been identified. In addition, because of inherent limitations in internal control, including the possibility of management override of controls, misstatements due to error, or fraud may occur and not be detected by such controls. However, as discussed below, we identified certain deficiencies in internal control that we consider to be material weaknesses. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the City's basic financial statements will not be prevented, or detected and corrected, on a timely basis. A reasonable possibility exists when the likelihood of an event occurring is either reasonably possible or probable as defined as follows: Reasonably possible. The chance of the future event or events occurring is more than remote but less than likely. Probable. The future event or events are likely to occur. The material weaknesses identified are stated within this letter. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. 2 During our audit, we also became aware of a deficiency in internal control other than significant deficiencies or material weaknesses, and other matters that are opportunities for strengthening internal controls and operating efficiency. It is described in the accompanying letter under Other Deficiency. The City's written responses to the material weaknesses identified in our audit have not been subjected to audit procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them. The accompanying memorandum also includes financial analysis provided as a basis for discussion. The matters discussed herein were considered by us during our audit and they do not modify the opinion expressed in our Independent Auditor's Report dated August 7, 2024, on such statements. The purpose of this communication, which is an integral part of our audit, is to describe for the Members of the City Council and management and others within the City and state oversight agencies the scope of our testing of internal control and the results of that testing. Accordingly, this communication is not intended to be and should not be used for any other purpose. St. Cloud, Minnesota August 7, 2024 3 City of Richfield Material Weaknesses Lack of Segregation of Accounting Duties The City had a lack of segregation of accounting duties due to a limited number of office employees due to experiencing significant turnover during the year. The lack of adequate segregation of accounting duties could adversely affect the City's ability to initiate, record, process, and report financial data consistent with the assertions of management in the financial statements. In order to have appropriate segregation of accounting duties, the performance of the following duties would need to be completed by a different employee: initiation and authorization of transactions, recording and processing of transactions, reconciliation and reporting of transactions, and financial information, and custody of assets. During the course of our engagement, we proposed a prior period adjustment and material audit adjustment that would not have been identified as a result of the City's existing internal controls system and, therefore, could have resulted in a material misstatement of the City's financial statements. The material audit adjustments detected as a result of audit procedures were corrected by management. Management and the City Council must remain aware of this situation and should continually monitor the accounting system, including changes that occur. Improve Ice Arena Revenue Reconciliation Process The information within the ActiveNet system used at the ice arena for receipting did not initially reconcile to the City’s finance system revenue. The City should ensure a reconciliation of the two systems is completed to ensure accurate reporting of the revenue within the City’s financial statements. 4 City of Richfield Other Deficiency Improve Controls related to Payroll Documentation and Processing The City should ensure payroll system inputs for employee information is accurate and that adequate support is available and maintained for employee selections and inputs. Instances were noted where supporting documentation was not provided for inputs within the payroll system, or the system information differed from the supporting documentation. Review and corrections should be completed to ensure accurate calculation of payroll information. 5 City of Richfield Required Communication We have audited the basic financial statements of the governmental activities, business-type activities, the discretely presented component units, each major fund, and the aggregate remaining fund information of the City as of and for the year ended December 31, 2023. Professional standards require that we advise you of the following matters related to our audit. Our Responsibility in Relation to the Financial Statement Audit As communicated in our engagement letter, our responsibility, as described by professional standards, is to form and express opinions about whether the basic financial statements prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America. Our audit of the basic financial statements does not relieve you or management of its respective responsibilities. Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the basic financial statements are free of material misstatement. An audit of the basic financial statements includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control over financial reporting. Accordingly, as part of our audit, we considered the internal control of the City solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control. We are also responsible for communicating significant matters related to the audit that are, in our professional judgement, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures for the purpose of identifying other matters to communicate to you. Generally accepted accounting principles provide for certain Required Supplementary Information (RSI) to supplement the basic financial statements. Our responsibility with respect to the RSI, which supplements the basic financial statements, is to apply certain limited procedures in accordance with generally accepted auditing standards. However, the RSI was not audited and, because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance, we do not express an opinion or provide any assurance on the RSI. Our responsibility for the supplementary information accompanying the basic financial statements, as described by professional standards, is to evaluate the presentation of the supplementary information in relation to the basic financial statements as a whole and to report on whether the supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. Our responsibility with respect to the other information in documents containing the audited basic financial statements and auditor's report does not extend beyond the basic financial information identified in the report. We have no responsibility for determining whether this other information is properly stated. This other information was not audited, and we do not express an opinion or provide any assurance on it. 6 City of Richfield Required Communication Our Responsibility in Relation to Government Auditing Standards As communicated in our engagement letter, part of obtaining reasonable assurance about whether the basic financial statements are free of material misstatement, we performed tests of the City's compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of basic financial statement amounts. However, the objective of our tests was not to provide an opinion on compliance with such provisions. Our Responsibility in Relation to Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) As communicated in our engagement letter, in accordance with the Uniform Guidance, we examined on a test basis, evidence about the City's compliance with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Compliance Supplement applicable to each of its major federal programs for the purpose of expressing an opinion on the City's compliance with those requirements. While our audit provided a reasonable basis for our opinion, it did not provide a legal determination on the City's compliance with those requirements. In planning and performing our audit of compliance, we considered the City's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Planned Scope and Timing of the Audit We conducted our audit consistent with the planned scope and timing we previously communicated to you. Compliance with All Ethics Requirements Regarding Independence The engagement team, others in our firm, as appropriate, our firm, and our network firms have complied with all relevant ethical requirements regarding independence. Significant Risks Identified We have identified the following significant risks of material misstatements: Improper Revenue Recognition ◊ Revenue recognition is considered a fraud risk on substantially all engagements as it generally has a significant impact on the results of the government operations. In addition, complexities exist surrounding the calculation and recording of various revenue sources. Management Override of Controls through Journal Entries ◊ Management override of internal control is considered a risk in substantially all engagements as management may be incentivized to produce better results. Significant Accounting Estimates ◊ Net Pension, Deferred Outflows of Resources Related to Pensions, and Deferred Inflows of Resources Related to Pensions are generally material to the financial statements and involve significant estimates. 7 City of Richfield Required Communication Significant Risks Identified (Continued) Significant Accounting Estimates (Continued) ◊ Total OPEB Liability, Deferred Outflows of Resources Related to OPEB, and Deferred Inflows of Resources Related to OPEB are generally material to the financial statements and involve significant estimates. ◊ Land held for resale is generally material to the financial statements and involves significant estimates. ◊ Lease Receivable and Deferred Inflows of Resources Related to leases are generally material to the financial statements and involve significant estimates. Improper Payroll Activity ◊ Due to a significant amount of turnover, there is a risk of incorrectly recording payroll activity within the City. Qualitative Aspects of the City's Significant Accounting Practices Significant Accounting Policies Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the City is included in the notes to the basic financial statements. There have been no initial selection of accounting policies and no changes to significant accounting policies or their application during 2023. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus. Significant Accounting Estimates Accounting estimates are an integral part of the basic financial statements prepared by management and are based on management's current judgements. Those judgements are normally based on knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the basic financial statements and because of the possibility that future events affecting them may differ markedly from management's current judgements. The most sensitive estimates affecting the basic financial statements relate to: Net/Total Other Post Employment Benefits (OPEB) Liability, Deferred Outflows of Resources Related to OPEB and Deferred Inflows of Resources Related to OPEB – These balances are based on an actuarial study using the estimates of future obligations of the City for post-employment benefits. Net Pension Liability, Deferred Outflows of Resources Relating to Pensions and Deferred Inflows of Resources Relating to Pensions – These balances are based on an allocation by the pension plans using estimates based on contributions. Land Held for Resale – Land held for resale is recorded using either the lower of historical cost or estimated resale value. Lease Receivable and Related Deferred Inflows of Resources Related to Leases - These balances are based on estimates and judgments determined by the City related to the discount rate, lease term, and lease payments. 8 City of Richfield Required Communication Qualitative Aspects of the City's Significant Accounting Practices (Continued) Significant Accounting Estimates (Continued) We evaluated the key factors and assumptions used to develop the accounting estimates and determined that they are reasonable in relation to the basic financial statements taken as a whole and in relation to the applicable opinion units. Financial Statement Disclosures Certain basic financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The basic financial statement disclosures are neutral, consistent, and clear. Significant Difficulties Encountered during the Audit We encountered no significant difficulties in dealing with management relating to the performance of the audit. Uncorrected and Corrected Misstatements For the purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effects of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the basic financial statements taken as a whole and each applicable opinion unit. We identified the following uncorrected misstatements of the financial statements. Management has determined its effect is immaterial, both individually and in the aggregate, to the basic financial statements taken as a whole and each opinion unit. Uncorrected misstatements or matters underlying those uncorrected misstatements could potentially cause future-period financial statements to be materially misstated, even though the uncorrected misstatements are immaterial to the financial statements currently under audit. Inventory balance overstated based on error projection In addition, professional standards require us to communicate to you all material, corrected misstatements that were brought to the attention of management as a result of our audit procedures. The following material misstatements that we identified as a result of our audit procedures were brought to the attention of and corrected by management. Unearned revenue and expenditure Prior period adjustment related to ice arena beginning fund balance and revenue Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to the City's basic financial statements or the auditor's report. No such disagreements arose during the course of our audit. Representations Requested from Management We have requested certain written representations from management, which are included in the management representation letter. 9 City of Richfield Required Communication Management's Consultations with Other Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management has informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters. Other Significant Matters, Findings, or Issues In the normal course of our professional association with the City, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, significant events or transactions that occurred during the year, operating and regulatory conditions affecting the City, and operational plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as the City's auditor. Other Information Included in Annual Reports Pursuant to professional standards, our responsibility as auditors for other information, whether financial or nonfinancial, included in the City's annual reports, does not extend beyond the information identified in the audit report, and we are not required to perform any procedures to corroborate such other information. We applied certain limited procedures to the RSI that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI. With respect to the supplementary information accompanying the financial statements, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the basic financial statements or to the basic financial statements themselves. We were not engaged to report on the other information accompanying the basic 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. Our responsibility also includes communicating to you any information which we believe is a material misstatement of fact. Nothing came to our attention that caused us to believe that such information, or its manner of presentation, is materially inconsistent with the information, or manner of its presentation, appearing in the basic financial statements. 10 City of Richfield Financial Analysis The following pages provide graphic representation of select data pertaining to the financial position and operations of the City for the past five years. Our analysis of each graph is presented to provide a basis for discussion of past performance and how implementing certain changes may enhance future performance. We suggest you view each graph and document if our analysis is consistent with yours. General Fund As illustrated in the graph below, total expenditures exceeded total revenues in the General Fund in 2023. This deficit, combined with net transfers in of $727,525 resulted in an increase in fund balance of $496,598 in 2023. The City's total fund balance of $11,486,988 at December 31, 2023, represents 40.0% of General Fund expenditures based on 2023 spending levels. The City relies on year-end fund balance to finance much of the subsequent year's expenditures, since major property tax settlements are not received until June. The City's target General Fund balance is to maintain a minimum unassigned fund balance of 40% of the current year end actual General Fund expenditures. At December 31, 2023, the City's unassigned fund balance amounted to $11,425,348, which excludes nonspendable fund balance for prepaid items of $61,640. This amount equals 39.8% of the City's 2023 actual General Fund expenditures. 2019 2020 2021 2022 2023 Total Revenues $23,738,065 $26,176,379 $26,207,186 $27,178,618 $28,487,264 Total Expenditures 23,683,617 24,310,173 26,300,517 27,193,780 28,718,191 Fund Balance 9,261,364 10,025,490 10,564,929 10,990,390 11,486,988 $- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 General Fund Revenues, Expenditures, and Fund Balance 11 City of Richfield Financial Analysis General Fund Revenues Trends for each of the City's major revenue classifications over the past five years are portrayed in the bar graph below. General Fund revenues increased $1,308,646 from 2022. Property taxes increased $987,916 because of an increase in the levy. Licenses and permits decreased $398,196 as a result of less building activity during the year. Miscellaneous revenues increased $532,220 as a result of an increase in interest income due to improved market conditions. All other categories remained consistent with the prior year. Property Taxes Fees and Fines License and Permits Intergovernmental Charges for Services Miscellaneous 2019 $16,581,275 $267,531 $1,734,871 $2,547,735 $2,451,324 $155,329 2020 17,559,198 189,767 1,743,695 4,828,595 1,760,254 94,870 2021 18,938,165 176,642 1,695,431 3,492,120 1,842,554 62,274 2022 20,052,150 175,056 1,379,973 3,419,575 1,969,877 181,987 2023 21,040,066 180,391 981,777 3,650,861 1,919,962 714,207 $- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 General Fund Revenues 12 City of Richfield Financial Analysis General Fund Revenues (Continued) The City's revenues by source for 2023 and 2022 are shown below. As seen on the following graphs, the categories stay fairly consistent between the two years. Property Taxes74% Fees and Fines 1% License and Permits 3% Intergovernmental13%Charges for Services7% Miscellaneous 2% 2023 General Fund Revenues Property Taxes 74% Fees and Fines 1% License and Permits 5% Intergovernmental 12% Charges for Services 7%Miscellaneous 1% 2022 General Fund Revenues 13 City of Richfield Financial Analysis General Fund Expenditures Total General Fund expenditures increased 5.6%, or $1,524,411, from 2022 to 2023. The most significant increase by program was in public safety. Public safety expenditures increased in total by $695,866 due to wage increases. Public works expenditures increased by $179,961 due to increased wages and increased cost of tree renewal. Fire expenditures increased by $304,342 due to increased wages and purchase of extraction equipment. Recreation services expenditures increased due to increased wages and equipment purchases. Other programs' spending was consistent from 2022 to 2023. Legislative/Executive AdministrativeServices Finance Public Safety Fire CommunityDevelopment Public Works RecreationServices Capital Outlay 2019 $734,688 $840,868 $661,779 $9,436,746 $4,360,909 $1,586,564 $4,158,659 $1,903,404 $- 2020 836,275 954,870 513,559 9,924,577 4,537,374 1,640,111 4,216,177 1,594,809 92,421 2021 941,743 693,573 765,641 10,309,436 5,136,190 1,796,086 4,657,771 2,000,077 - 2022 990,581 959,929 1,005,251 10,437,293 5,314,355 1,616,827 4,884,218 1,985,326 - 2023 1,034,837 959,262 1,046,114 11,133,159 5,618,697 1,652,012 5,064,179 2,209,931 - $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 $10,000,000 $11,000,000 $12,000,000 General Fund Expenditures 14 City of Richfield Financial Analysis General Fund Expenditures (Continued) The City's expenditures by program for 2023 and 2022 are shown below. As seen on the following graphs, expenditure by program remained consistent from 2022 to 2023. Legislative/ Executive 3%Administrative Services 3% Finance 4% Public Safety 39%Fire 19% Community Development 6% Public Works 18% Recreation Services 8% 2023 General Fund Expenditures Legislative/ Executive 4%Administrative Services 3% Finance 4% Public Safety 38%Fire 20% Community Development 6% Public Works 18% Recreation Services 7% 2022 General Fund Expenditures 15 City of Richfield Financial Analysis General Fund Revenues and Expenditures Variance Actual Final Budget - Final Budget Amounts Over (Under) Revenues Property taxes 21,026,215$ 21,040,066$ 13,851$ Fines and fees 200,000 180,391 (19,609) Licenses and permits 1,094,810 981,777 (113,033) Intergovernmental revenues 3,553,902 3,650,861 96,959 Charges for services 1,855,551 1,919,962 64,411 Special assessments - 4,308 4,308 Investment income 25,000 659,981 634,981 Miscellaneous revenues 104,700 49,918 (54,782) Total revenues 27,860,178 28,487,264 627,086 Expenditures Legislative/executive 1,114,258 1,034,837 (79,421) Administrative services 991,424 959,262 (32,162) Finance 1,006,135 1,046,114 39,979 Public safety 11,095,903 11,133,159 37,256 Fire 5,397,355 5,618,697 221,342 Community development 1,753,100 1,652,012 (101,088) Public works 5,006,740 5,064,179 57,439 Recreation services 2,246,971 2,209,931 (37,040) Total expenditures 28,611,886 28,718,191 106,305 Other financing sources (uses) Net transfers 751,708 727,525 (24,183) Net change in fund balances -$ 496,598$ 496,598$ For the year ended December 31, 2023, the City budgeted for revenues and transfers into the General Fund to equal expenditures and transfers out. Actual revenues and transfers in exceeded expenditures and transfers out by $496,598. Revenues were overall over budget by $627,086, or 2.3%. Licenses and permits revenue was under budget $113,033 due to lower building permits than anticipated. Investment income was over budget $634,981 due to conservative budgeting. Expenditures were $106,305, or 0.4% over budget. The most significant variance was in fire due to increased wages and extraction equipment purchased. 16 City of Richfield Financial Analysis Tax Levy, Capacity, and Rates The graph below presents information relating to the City's tax levy, tax capacity and rates. The levy for 2023 includes the General Fund levy of $21,236,477 plus a levy for the Debt Service and Capital Project Funds totaling $4,969,000. As illustrated below, the taxable tax capacity of the City has experienced a steady increase over the last five years. While the City has increased the levy during this period, the tax capacity rate has declined because of increases in market values and tax capacity. $33,767,365 $36,111,232 $37,567,917 $39,253,300 $45,429,412 $21,059,411 $22,133,486 $23,394,027 $24,570,597 $26,205,477 53.28%53.29%54.08%53.68% 50.84% 0% 10% 20% 30% 40% 50% 60% 70% $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000 $45,000,000 $50,000,000 2019 2020 2021 2022 2023 Tax Capacity, Levy, and Rates Taxable Tax Capacity Certified City Levy Tax Capacity Rate 17 City of Richfield Financial Analysis Liquor Fund The City's liquor store reported a decrease in sales from 2022 to 2023 of 1.9%. Cost of sales correspondingly decreased by 4.6%. Operating expenses in the Liquor Fund decreased 4.0%. The City's gross profit percentage decreased from 2022 to 2023. The City's gross profit percentage is slightly below both comparable metro stores and the metro municipal average. $9,439,556 $9,886,359 $10,355,772 $10,659,157 $10,170,469 $2,445,292 $2,469,884 $2,558,138 $2,565,546 $2,464,105 $12,678,003 $13,262,924 $13,916,528 $14,200,736 $13,935,832 $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 $10,000,000 $11,000,000 $12,000,000 $13,000,000 $14,000,000 $15,000,000 2019 2020 2021 2022 2023 Liquor Fund Cost of Sales Operating Expenses Sales 2023 Metro City of City of City of City of City of Municipal Richfield Richfield Edina*Eden Prairie*Savage*Average* Sales 13,935,832$ 14,200,736$ 14,427,474$ 12,067,226$ 6,948,251$ 7,484,767$ Costs of sales 10,170,469 10,659,157 10,010,262 8,450,887 5,012,280 5,434,391 Gross profit 3,765,363 3,541,579 4,417,212 3,616,339 1,935,971 2,050,376 Operating expenses 2,464,105 2,565,546 3,723,521 2,591,577 1,467,439 1,622,478 Operating income 1,301,258 976,033 693,691 1,024,762 468,532 427,898 Gross profit percentage 27.0%24.9%30.6%30.0%27.9%27.4% 2022 * Individual metro municipal and averages obtained from the Office of State Auditor, Analysis of Municipal Liquor Store Operations Report. 18 City of Richfield Financial Analysis Water and Sewer Utilities Fund Charges for services in the fund increased $581,927 or 6.0% from 2022 to 2023. This increase was the result of increased rates. Operating expenses increased $12,787 or 0.1%. The Fund had operating income of $1,223,872 in 2023 with depreciation. The Fund has fully funded depreciation expense since 2018. $8,826,120 $8,716,310 $9,220,649 $9,659,149 $10,241,076 $8,157,933 $8,060,618 $8,106,095 $9,004,417 $9,017,204 $1,924,455 $2,074,472 $2,599,956 $2,143,214 $2,602,340 $668,187 $655,692 $1,114,554 $654,732 $1,223,872 $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 $10,000,000 $11,000,000 2019 2020 2021 2022 2023 Water and Sewer Utilities Fund Charges for Services Operating Expenses Operating Income without Depreciation Operating Income with Depreciation 19 City of Richfield Financial Analysis Storm Sewer Fund Charges for services in the Fund increased $215,190 from 2022 to 2023, or 10.7%. Operating expenses increased $518,133 or 27.8%. The Fund reported an operating loss of $164,459 in 2023 with depreciation. The Fund has fully funded depreciation expense for all years presented besides 2021 and 2023. $1,828,180 $2,047,290 $1,869,763 $2,004,767 $2,219,957 $1,765,862 $1,894,444 $1,910,721 $1,866,283 $2,384,416 $765,576 $881,230 $696,064 $901,367 $549,390 $62,318 $152,846 $(40,958) $138,484 $(164,459) $(400,000) $(200,000) $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 $1,800,000 $2,000,000 $2,200,000 $2,400,000 $2,600,000 2019 2020 2021 2022 2023 Storm Sewer Fund Charges for Services Operating Expenses Operating Income without Depreciation Operating Income with Depreciation 20 City of Richfield Financial Analysis Governmental Funds The tables below and on the following page illustrate the City's various sources of revenue and expenditures per capita over a three year period in comparison to 2022 data for Minnesota cities ranked by various sizes. Year 2021 2022*2023** Population 2,500-10,000 10,000-20,000 20,000-100,000 36,994 36,543 36,543 Property taxes 586$ 549$ 584$ 630$ 672$ 710$ Tax increments 37 38 46 - - - Franchise fees and other taxes 56 72 58 61 61 62 Special assessments 51 34 50 4 4 7 Licenses and permits 43 47 55 46 38 27 Intergovernmental revenues 400 381 223 295 473 422 Charges for services 154 116 137 91 98 99 Other 32 7 (21) 33 58 83 Total revenue 1,359$ 1,244$ 1,132$ 1,160$ 1,404$ 1,410$ City of Richfield December 31, 2022 State-Wide* * State-wide data obtained from the Office of the State Auditor's 2022 Minnesota City Finances Report. ** Population is estimated as of January 1, 2022, from the Met Council population data study; 2023 information is not yet available. The City has few special assessments and, thus, has consistently shown higher tax revenues per capita and lower special assessments revenues per capita compared to the state averages. Total governmental revenues increased $6 per capita from 2022. The most significant change was in intergovernmental revenue. Intergovernmental revenue decreased due to ARPA funds used in 2022. Property taxes increased due to an increase in the levy. Other revenue increased as a result of an increase in investment income. 21 City of Richfield Financial Analysis Governmental Funds (Continued) Year 2021 2022*2023** Population 2,500-10,000 10,000-20,000 20,000-100,000 36,994 36,543 36,543 Current Administration 172$ 145$ 126$ 81$ 102$ 112$ Community development 64 64 72 49 44 45 Police 248 221 240 283 291 309 Fire and other public safety 95 91 107 139 145 154 Public works 163 167 120 329 137 144 Parks and recreation 121 137 117 102 114 123 Other 22 24 20 - -- Total current 885$ 849$ 802$ 983$ 833$ 887$ Capital outlay and construction 509$ 446$ 346$ 36$ 511$ 503$ Debt service Principal 163$ 133$ 117$ 96$ 103$ 106$ Interest and fiscal 43 40 32 40 40 40 Total debt service 206$ 173$ 149$ 136$ 143$ 146$ December 31, 2022 State-Wide*City of Richfield * State-wide data obtained from the Office of the State Auditor's 2022 Minnesota City Finances Report. ** Population is estimated as of January 1, 2022, from the Met Council population data study; 2023 information is not yet available. The City's current expenditures and capital outlay and construction expenditures for 2023 were more than the state-wide average for a city of a comparable population, while debt service expenditures are less. Overall, the City's governmental expenditures increased 3.3% from 2022 to 2023, or $49 per capita. Current expenditures per capita increased $54 from 2022. 22 City of Richfield Emerging Issues Executive Summary The following is an executive summary of financial related updates to assist you in staying current on emerging issues in accounting and finance. This summary will give you a preview of the new standards that have been recently issued and what is on the horizon for the near future. The most recent and significant updates include: Implementation Guide No. 2021-1 – Amending Capitalization Requirements GASB has issued Implementation Guide No. 2021-1, amending previously issued guidance regarding capitalization requirements for capital assets that are significant in the aggregate but below the government's capitalization threshold individually. Accounting Standard Update – GASB Statement No. 100 – Accounting Changes and Error Corrections GASB has issued GASB Statement No. 100 relating to accounting and financial reporting for accounting changes and error corrections. The requirements of this Statement will improve the clarity of the accounting and financial reporting requirements for accounting changes and error corrections, which will result in greater consistency in application in practice. In turn, more understandable, reliable, relevant, consistent, and comparable information will be provided to financial statement users for making decisions or assessing accountability. Accounting Standard Update – GASB Statement No. 101 – Compensated Absences GASB has issued GASB Statement No. 101 relating to accounting and financial reporting for compensated absences. The unified recognition and measurement model in this Statement will result in a liability for compensated absences that more appropriately reflects when a government incurs an obligation. In addition, the model can be applied consistently to any type of compensated absence and will eliminate potential comparability issues between governments that offer different types of leave. The following are extensive summaries of the current updates. As your continued business partner, we are committed to keeping you informed of new and emerging issues. We are happy to discuss these issues with you further and their applicability to your City. Implementation Guide No. 2021-1 – Amending Capitalization Requirements Implementation Guide No. 2021-1, amended previously issued guidance contained in Implementation Guide No. 2015-1 regarding capitalization requirements for capital assets that are significant in the aggregate. Original guidance stated that it may be appropriate for a government to establish a capitalization policy that would require capitalization for certain types of assts with individual acquisition costs that are less than the threshold for an individual asset. Amended guidance states that a government should capitalize assets whose individual acquisition costs are less than the threshold for an individual asset if those assets in the aggregate are significant. Computers and classroom furniture are common examples of asset types that could be significant collectively. The amended guidance clarifies that if 100 computers costing $1,500 each totaling a $150,000 aggregate amount is significant, the government should capitalize the computers. Information provided above was obtained from www.gasb.org. 23 City of Richfield Emerging Issues Accounting Standard Update – GASB Statement No. 100 – Accounting Changes and Error Corrections – an Amendment of GASB Statement No. 62 The primary objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. This Statement defines accounting changes as changes in accounting principles, changes in accounting estimates, and changes to or within the financial reporting entity and describes the transactions or other events that constitute those changes. As part of those descriptions, for (1) certain changes in accounting principles and (2) certain changes in accounting estimates that result from a change in measurement methodology, a new principle or methodology should be justified on the basis that it is preferable to the principle or methodology used before the change. That preferability should be based on the qualitative characteristics of financial reporting – understandability, reliability, relevance, timeliness, consistency, and comparability. This Statement also addresses corrections of errors in previously issued financial statements. This Statement prescribes the accounting and financial reporting for (1) each type of accounting change and (2) error corrections. This Statement requires that (a) changes in accounting principles and error corrections be reported retroactively by restating prior periods, (b) changes to or within the financial reporting entity be reported by adjusting beginning balances of the current period, and (c) changes in accounting estimates be reported prospectively by recognizing the change in the current period. The requirements of this Statement for changes in accounting principles apply to the implementation of a new pronouncement in absence of specific transition provisions in the new pronouncement. This Statement also requires that the aggregate amount of adjustments to and restatements of beginning net position, fund balance, or fund net position, as applicable, be displayed by reporting unit in the financial statements. This Statement requires disclosure in notes to financial statements of descriptive information about accounting changes and error corrections, such as their nature. In addition, information about the quantitative effects on beginning balances of each accounting change and error correction should be disclosed by reporting unit in a tabular format to reconcile beginning balances as previously reported to beginning balances as restated. Furthermore, this Statement addresses how information that is affected by a change in accounting principle or error correction should be presented in Required Supplementary Information (RSI) and Supplementary Information (SI). For periods that are earlier than those included in the basic financial statements, information presented in RSI or SI should be restated for error corrections, if practicable, but not for changes in accounting principles. GASB Statement No. 100 is effective for reporting periods beginning after June 15, 2023. Earlier application is encouraged. Information provided above was obtained from www.gasb.org. 24 City of Richfield Emerging Issues Accounting Standard Update – GASB Statement No. 101 – Compensated Absences The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. This Statement requires that liabilities for compensated absences be recognized for (1) leave that has not been used and (2) leave that has been used but not yet paid in cash or settled through noncash means. A liability should be recognized for leave that has not been used if (a) the leave is attributable to services already rendered, (b) the leave accumulates, and (c) the leave is more likely than not to be used for time off or otherwise paid in cash or settled through noncash means. Leave is attributable to services already rendered when an employee has performed the services required to earn the leave. Leave that accumulates is carried forward from the reporting period in which it is earned to a future reporting period during which it may be used for time off or otherwise paid or settled. In estimating the leave that is more likely than not to be used or otherwise paid or settled, a government should consider relevant factors such as employment policies related to compensated absences and historical information about the use or payment of compensated absences. However, leave that is more likely than not to be settled through conversion to defined benefit postemployment benefits should not be included in a liability for compensated absences. This Statement requires that a liability for certain types of compensated absences – including parental leave, military leave, and jury duty leave – not be recognized until the leave commences. This Statement also requires that a liability for specific types of compensated absences not be recognized until the leave is used. This Statement also establishes guidance for measuring a liability for leave that has not been used, generally using an employee's pay rate as of the date of the financial statements. A liability for leave that has been used but not yet paid or settled should be measured at the amount of the cash payment or noncash settlement to be made. Certain salary-related payments that are directly and incrementally associated with payments for leave also should be included in the measurement of the liabilities. With respect to financial statements prepared using the current financial resources measurement focus, this Statement requires that expenditures be recognized for the amount that normally would be liquidated with expendable available financial resources. This Statement amends the existing requirement to disclose the gross increases and decreases in a liability for compensated absences to allow governments to disclose only the net change in the liability (as long as they identify it as a net change). In addition, governments are no longer required to disclose which governmental funds typically have been used to liquidate the liability for compensated absences. GASB Statement No. 101 is effective for reporting periods beginning after December 15, 2023. Earlier application is encouraged. Information provided above was obtained from www.gasb.org. 77 City of Richfield Hennepin County, Minnesota Schedule of Expenditures of Federal Awards and Independent Auditor's Reports December 31, 2023 City of Richfield Table of Contents Schedule of Expenditures of Federal Awards 1 Notes to Schedule of Expenditures of Federal Awards 2 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 3 Report on Compliance for Each Major Program and Report on Internal Control over Compliance and on the Schedule of Expenditures of Federal Awards in Accordance with the Uniform Guidance 5 Schedule of Findings and Questioned Costs 8 Minnesota Legal Compliance 12 See notes to Schedule of Expenditures of Federal Awards. 1 Federal Expenditures U.S. Department of Housing and Urban Development Received Directly Section 8 Housing Choice Voucher Program 14.871 2,702,884$ Passed through Hennepin County Community Development Block Grant - Entitlement Grant 14.218 80,000 Total U.S. Department of Housing and Urban Development 2,782,884 U.S. Department of Homeland Security Received directly Disaster Grants 97.036 1,600 Total U.S. Department of Homeland Security 1,600 U.S. Department of Health and Human Services Passed through the State of Minnesota Immunization Cooperative Agreements 93.268 16,063 Epidemiology and Laboratory Capcity for Infectious Diseases 93.323 36,382 Public Health Emergency Preparedness 93.069 55,691 Total U.S. Department of Health and Human Services 108,136 U.S. Department of Justice Received directly Bulletproof Vest Partnership Program 16.607 5,264 Total U.S. Department of Justice 5,264 U.S. Department of Transportation Passed through Metropolitan Airport Commission Towards Zero Deaths 20.608 13,601 DWI Enforcement 20.616 4,453 Distracted Vehicle Grant 20.600 10,941 Passed through the State of Minnesota Highway Planning and Construction 20.205 2,506,462 DWI Enforcement 20.616 66,969 Distracted Vehicle Grant 20.600 29,888 Total U.S. Department of Transportation 2,632,314 U.S. Department of Agriculture Received directly Agricultural Worker Pandemic Relief and Protection Program 10.181 7,426 Total U.S. Department of Agriculture 7,426 U.S. Department of Treasury Passed through the State of Minnesota Coronavirus State and Local Fiscal Recovery Funds 21.027 908,105 Total U.S. Department of Tresury 908,105 Total Federal Expenditures 6,445,729$ Federal Agency/Pass Through Agency/Program Title City of Richfield Schedule of Expenditures of Federal Awards Year Ended December 31, 2023 Assistance Listing Number Federal 2 2 City of Richfield Notes to Schedule of Expenditures of Federal Awards NOTE 1 – BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") includes the federal award activity of the City under programs of the federal government for the year-ended December 31, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position, changes in net position, or cash flows of the City. NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. NOTE 3 – PASS-THROUGH GRANT NUMBERS All pass-through entities listed previously use the same Assistance Listing numbers as the federal grantors to identify these grants and have not assigned any additional identifying numbers. NOTE 4 – INDIRECT COST RATE The City did not elect to use the 10 percent de minimis indirect cost rate, as allowed under the Uniform Guidance. 3 Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards Independent Auditor's Report Honorable Mayor and Members of the City Council City of Richfield Richfield, Minnesota We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, the discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Richfield, Minnesota, as of and for the year ended December 31, 2023, and the related notes to financial statements, which collectively comprise the City's basic financial statements, and have issued our report thereon dated August 7, 2024. Report on Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the City’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses, or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. We did identify certain deficiencies in internal control, described in the accompanying Schedule of Findings and Questioned Costs that we consider to be material weaknesses. Audit Findings 2023-001 and 2023-002. 4 4 Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the City's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. City’s Responses to the Findings Government Auditing Standards requires the auditor to perform limited procedures on the City’s responses to the findings identified in our audit are described in the accompanying Schedule of Findings and Questioned Costs. The City’s responses were not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the responses. 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 communication is not suitable for any other purpose. St. Cloud, Minnesota August 7, 2024 5 5 Report on Compliance for Each Major Federal Program and Report on Internal Control over Compliance and on the Schedule of Expenditures of Federal Awards in Accordance with the Uniform Guidance Independent Auditor's Report Honorable Mayor and Members of the City Council City of Richfield Richfield, Minnesota Report on Compliance for Each Major Federal Program Opinion on Each Major Federal Program We have audited compliance of the City of Richfield, Minnesota, with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of the City's major federal programs for the year ended December 31, 2023. The City's major federal programs are identified in the summary of auditor's results section of the accompanying Schedule of Findings and Questioned Costs. In our opinion, the City complied in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended December 31, 2023. Basis for Opinion on Each Major Federal Program We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards); and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor's Responsibilities for the Audit of Compliance section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of the City's compliance with the compliance requirements referred to above. Responsibilities of Management for Compliance Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the City's federal programs. 6 Auditor's Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City's compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material, if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City's compliance with the requirements of each major federal program as a whole. In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance, we: Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the City's compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. Obtain an understanding of the City's internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of City's internal control over compliance. Accordingly, no such opinion is expressed. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. Report on Internal Control over Compliance A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in Auditor’s Responsibilities for the Audit of Compliance section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified. 7 7 Report on Internal Control over Compliance (Continued) Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. 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, the discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Richfield, Minnesota, as of and for the year ended December 31, 2023, and have issued our report thereon dated August 7, 2024, which contained unmodified opinions on the financial statements. Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. 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 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 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 financial statements or to the 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 Expenditure of Federal Awards is fairly stated, in all material respects, in relation to the basic financial statements as a whole. St. Cloud, Minnesota August 7, 2024 8 City of Richfield Schedule of Findings and Questioned Costs SECTION I – SUMMARY OF AUDITOR'S RESULTS Financial Statements Type of auditor's report issued: We issued an unmodified opinion on the fair presentation of the financial statements of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information in accordance with accounting principles generally accepted in the United States of America (GAAP). Internal control over financial reporting: Material weakness(es) identified? Yes, Audit Findings 2023-001 and 2023-002 Significant deficiency(ies) identified? None reported Noncompliance material to financial statement noted? No Federal Awards Type of auditor's report issued on compliance for major programs: Unmodified Internal control over major programs: Material weakness(es) identified? No Significant deficiency(ies) identified? None reported Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? No Identification of Major Programs Assistance Listing No: 20.205 Name of Federal Program or Cluster Highway Planning and Construction Assistance Listing No: 21.027 Name of Federal Program or Cluster Coronavirus State and Local Fiscal Recovery Funds Dollar threshold used to distinguish between type A and type B programs: $750,000 Auditee qualified as low risk auditee? No 9 City of Richfield Schedule of Findings and Questioned Costs SECTION II – FINANCIAL STATEMENT FINDINGS Audit Finding 2023-001 Criteria: Internal control that supports the City's ability to initiate, record, process and report financial data consistent with the assertions of management in the financial statements requires adequate segregation of accounting duties. A prior period adjustment and material audit adjustment were proposed and subsequently recorded by management for beginning fund balance in the ice arena fund, ice arena revenue, unearned revenue and expenditures. Condition: The City does not have adequate segregation of accounting duties. Context: This finding impacts the internal control for all significant accounting functions. Effect or Potential Effect: The lack of adequate segregation of accounting duties could adversely affect the City's ability to record, process, summarize, and report financial data consistent with the assertions of management in the financial statements. Cause: There was significant turnover of office employees. Recommendation: Continue to review the accounting system, including changes that may occur. Implement segregation whenever practical during times of turnover. Views of Responsible Officials and Planned Corrective Action: CORRECTIVE ACTION PLAN (CAP): 1. Explanation of Disagreement with Audit Finding There is no disagreement with the audit finding. 2. Actions Planned in Response to Finding Administration will review current segregation of accounting duties to determine if further segregation is possible. 3. Official Responsible for Ensuring CAP Kumud Verma, Finance Director, is the official responsible for ensuring corrective action of the deficiency. 4. Planned Completion Date for CAP The planned completion date for the CAP is December 31, 2024. 5. Plan to Monitor Completion of CAP The Finance Director will be monitoring this CAP. 10 10 City of Richfield Schedule of Findings and Questioned Costs SECTION II – FINANCIAL STATEMENT FINDINGS (CONTINUED) Audit Finding 2023-002 Criteria: Documentation and reconciliation of revenue collections are detailed enough to ensure full collection of amounts due to the City. Condition: Revenue was not initially reconciled between ActiveNet and JD Edwards financial system. Context: This finding impacts the City’s ability to record and reconcile receipts within the City’s financial system. Effect or Potential Effect: The financial statements may contain material misstatements. Cause: Year end reconciliation of ice arena revenue was not completed. Recommendation: Reconcile ActiveNet with finance system to ensure ice arena revenue is reported correctly. Views of Responsible Officials and Planned Corrective Action: CORRECTIVE ACTION PLAN (CAP): 1. Explanation of Disagreement with Audit Finding There is no disagreement with the audit finding 2. Actions Planned in Response to Finding The City has implemented a new Recreation system and will ensure appropriate back-ups are occurring to prevent loss of detailed information. 3. Official Responsible for Ensuring CAP Kumud Verma, Finance Director, is the official responsible for ensuring corrective action of the deficiency. 4. Planned Completion Date for CAP The planned completion date for the CAP is December 31, 2024. 5. Plan to Monitor Completion of CAP The Finance Director will annually review ice arena receipts to ensure proper accounting treatment. 11 11 City of Richfield Schedule of Findings and Questioned Costs SECTION III – FEDERAL AWARD FINDINGS AND QUESTIONED COSTS None SECTION IV – PRIOR YEAR FINDINGS AND QUESTIONED COSTS None 12 Minnesota Legal Compliance Independent Auditor's Report Honorable Mayor and Members of the City Council City of Richfield Richfield, Minnesota We have audited, in accordance with auditing standards generally accepted in the United States of America, and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, the discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Richfield, Minnesota as of and for the year ended December 31, 2023, and the related notes to financial statements, which collectively comprise the City's basic financial statements, and have issued our report thereon dated August 7, 2024. In connection with our audit, nothing came to our attention that caused us to believe that the City failed to comply with the provisions of the contracting – bid laws, depositories of public funds and public investments, conflicts of interest, public indebtedness, claims and disbursements, miscellaneous provisions, and tax increment financing sections of the Minnesota Legal Compliance Audit Guide for Cities, promulgated by the State Auditor pursuant to Minnesota Statute § 6.65, insofar as they relate to accounting matters. However, our audit was not directed primarily toward obtaining knowledge of such noncompliance. Accordingly, had we performed additional procedures, other matters may have come to our attention regarding the City's noncompliance with the above referenced provisions, insofar as they relate to accounting matters. The purpose of this report is solely to describe the scope of our testing of compliance and the results of that testing, and not to provide an opinion on compliance. Accordingly, this communication is not suitable for any other purpose. St. Cloud, Minnesota August 7, 2024 AGENDA SECTION:OTHER BUSINESS AGENDA ITEM #7. STAFF REPORT NO. 125 CITY COUNCIL MEETING 9/10/2024 REPORT PREPARED BY:Kelly Wynn, Administrative Assistant DEPARTMENT DIRECTOR REVIEW: OTHER DEPARTMENT REVIEW: CITY MANAGER REVIEW: Katie Rodriguez, City Manager 9/4/2024 ITEM FOR COUNCIL CONSIDERATION: Discussion regarding City Council attendance at the 2024 National League of Cities (NLC) City Summit Conference. EXECUTIVE SUMMARY: According to State Statute 471.66, the governing body of cities and school districts must adopt a policy that controls out-of-state travel for elected officials. That policy was adopted by the City Council in November 2005 and stipulates that the City Council must approve, in advance by a motion, attendance at out-of-state conferences. RECOMMENDED ACTION: By motion: Designate and approve Council Member Christensen to attend the November 13- 16, 2024, NLC City Summit in Tampa, FL. BASIS OF RECOMMENDATION: A.HISTORICAL CONTEXT The City Council has determined that attendance at the NLC conference is beneficial to the City’s operations and long-range planning efforts. Information regarding the 2024 conferences is available on their website: www.nlc.org. The designated Council Member will then supply the Council with a report of the conference at the November 26, 2024 meeting. The Council has not had an attendee at the NLC conference for many years. B.EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS C.POLICIES (resolutions, ordinances, regulations, statutes, exc): This information is contained in the Executive Summary and the Elected official out-of-state travel policy is attached. D.CRITICAL TIMING ISSUES: It is critical that the City Council remains informed regarding congressional activities as it relates to federal funds and homeland security issues. It is important for the City Council to avail itself of professional development and networking opportunities at the national level as it relates to their role of providing good governance and learning best practices. E.FINANCIAL IMPACT: Funds for the City Council to attend conferences are included in the City’s 2024 budget. The estimated cost is $2,500 and includes a first-time attendee fee of $600 for registration, flights to and from the conference, four nights of hotel stay and some meals. F.LEGAL CONSIDERATION: ALTERNATIVE RECOMMENDATION(S): The City Council may address this designation prior to each conference or the Council may decline to send a representative. PRINCIPAL PARTIES EXPECTED AT MEETING: ATTACHMENTS: Description Type Travel policy Backup Material ELECTED OFFICIAL OUT-OF-STATE TRAVEL POLICY CITY OF RICHFIELD CITY POLICY DATE: November 2005 SUBJECT: Elected Official Out-of-State Travel Guidelines Introduction According to State Statute 471.66, by January 1, 2006, the governing body of cities and school districts must adopt a policy that controls out-of-state travel for elected officials. This policy must be voted upon, reviewed annually, and specify: 1) when travel outside the state is appropriate; 2) applicable expense limits; and 3) procedures for approval of the travel. Purpose The City of Richfield recognizes that its elected officials may at times receive value from traveling out of the state for workshops, conferences, events and other assignments. This policy sets forth the conditions under which out-of-state travel will be reimbursed by the City. General Guidelines 1. An event, workshop, conference or assignment must be approved in advance by a motion of the City Council at an open meeting and must include an estimate of the cost of the travel. In evaluating the out-of-state travel request, the Council will consider the following: • Whether the elected official will be receiving training on issues relevant to the City or to his or her role as the Mayor or Council Member; • Whether the elected official will be meeting and networking with other elected officials from around the country to exchange ideas on topics of relevance to the City or on the official roles of local elected officials; • Whether the elected official will be viewing a city facility or function that is similar in nature to one that is currently operating at, or under consideration by the City where the purpose for the trip is to study the facility or function to bring back ideas for the consideration of the full Council; • Whether the elected official has been specifically assigned by the Council to visit another city for the purpose of establishing a goodwill relationship such as a “sister-city” relationship; • Whether the elected official has been specifically assigned by the Council to testify on behalf of the City at the United States Congress or to otherwise meet with federal officials on behalf of the City; • Whether the City has sufficient funding available in the budget to pay the cost of the trip. 2. Council Members who attend an out-of-state, City-funded event, workshop or conference shall give an oral report on the results of his/her trip at the next regularly scheduled Council meeting. 3. No reimbursements will be made for attendance at events sponsored by or affiliated with political parties. 4. The City may make payments in advance for airfare, lodging and registration if specifically approved by the Council. Otherwise, all payments will be made as reimbursements to the elected official. 5. The City will reimburse for transportation, lodging, meals, registration, and incidental costs using the same procedures, limitations and guidelines outlined in the City’s out-of-state travel policy for City employees. 6. The City Council may make exceptions to this policy if approved by the majority of the City Council. Approved: /s/ Steven L. Devich ______________________________ City Manager AGENDA SECTION:RESOLUTIONS AGENDA ITEM #8. STAFF REPORT NO. 121 CITY COUNCIL MEETING 9/10/2024 REPORT PREPARED BY:Sam Crosby, Planner II DEPARTMENT DIRECTOR REVIEW:Melissa Poehlman, Community Development Director 8/29/2024 OTHER DEPARTMENT REVIEW: CITY MANAGER REVIEW: Katie Rodriguez, City Manager 9/4/2024 ITEM FOR COUNCIL CONSIDERATION: Consider a request by Brixmor for a Conditional Use Permit, an Amended Planned Unit Development and Final Development Plan, for a retail use over 50,000 square feet of gross floor area at 140 - 66th Street West in order to re-tenant the building with a new grocer. EXECUTIVE SUMMARY: The former Rainbow Foods building has been closed for six years. A new grocery store, Loma Bonita, would now like to occupy the 52,400 square foot building. Because the building has been vacant for more than a year, the Conditional Use Permit (CUP) has expired, and non-conformities must be brought up to current Code to the extent possible. Consequently, the property owner, Brixmor, is requesting a new CUP and an amended Planned Unit Development (PUD) and Final Development Plan (FDP) at this time. The proposed changes repair and enhance the look of the grocery store building, improve problematic on-site circulation patterns, decrease the parking, and increase the landscaping. The attached ARC Report, dated August 12, 2024, itemizes the Code requirements, Brixmor’s response, and staff’s recommendation. Staff finds that, subject to the stipulations recommended in the ARC Report, the proposal meets the intent of both the Comprehensive Plan and the C-2 zoning district. The Planning Commission held a public hearing on August 26th. Brixmor asked for concessions in regards to the staff recommendation for architectural relief along the long blank wall area of the north building elevation. They plan to create some faux columns, but an awning that runs the entire length of the building is "cost prohibitive." The Commission voted 5-0 to recommend approval of the request as recommended by staff. Brixmor hopes to address the Council regarding this same issue. Staff is open to a comparable tradeoff. The Council could recommend approval the attached resolution with an amendment authorizing staff to a approve a tradeoff proposed by the applicant. RECOMMENDED ACTION: By motion: Approve the proposed Conditional Use Permit, Planned Unit Development and Final Development Plan Amendment. BASIS OF RECOMMENDATION: A.HISTORICAL CONTEXT The site was originally developed in 1966. It contains two principal uses in two separate buildings, hence the PUD zoning. The former Rainbow Foods building was constructed in 1992. It operated for 14 years and has been vacant since 2018. In 2014, the City approved a PUD Amendment to convert the former Bally’s Fitness building into a charter school. Historically, perimeter landscaping and parking lot screening has been a critical component of improving the appearance of non-conforming sites, however, the City did not require it at that time due to the future reconstruction of 65th Street. The playground in the parking lot to the north of the grocery store is an amenity of the adjacent Charter School, Sci Tech Academy, and was supposed to be reviewed and approved by City staff prior to construction. Since the improvements (fencing, basketball hoop, etc.) did not require any permits, they were installed without approval. Therefore, the review and approval of the playground area is now being included with this project. While Brixmor owns both the HUB Center and HUB West, it does not own the Popeye’s parcel. Brixmor presented a concept plan for redevelopment to a joint City Council, Housing and Redevelopment Authority and Planning Commission work session in April of 2022. B.EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS The greenest building is an existing building. While the City was hoping for a full redevelopment of the subject site, the reuse of the grocery store building as a grocery store is an efficient and reasonable use of resources. Activating a large building and property that has been vacant for six years enhances the vibrancy of the downtown area. A grocery store is often a community hub and this grocer will have a restaurant-like component (the deli/kitchen with seating and ice cream shop). The grocer will likely be open for longer hours (6:00 am to 10:00 pm) than an office or even typical service use. The community has expressed a desire for a grocery store at this location. The addition of a regional grocery store to the community increases the availability of good-quality, fresh food – see attached updated grocery walkshed map. C.POLICIES (resolutions, ordinances, regulations, statutes, exc): Expiration Per Section 547.09, Subd.9, of the Zoning Code, CUP's expire if normal operation of the use has been discontinued for 12 or more months. Because the subject building has been vacant for six years, a new CUP must be granted, regardless of the type of use proposed. Nonconformities Nonconforming site improvements are governed by Section 509 of the Zoning Code. Both a new CUP and the amendment to a PUD require Brixmor to make improvements to bring the property into compliance with current standards, except where it is determined that the changes would be extremely impractical or extensive, such as relocating a building to meet setbacks, or lowering a building to comply with height limitations. Planned Unit Development The property is a PUD, which allows for flexibility from dimensional requirements of the Code in exchange for creativity and innovation in site and building design. Some current Code requirements while not extremely impractical, may be less practical, and Brixmor may wish to substitute these less practical requirements with other, more practical, improvements. The attached ARC Report, dated August 12, 2024, provides the Code requirement, the applicant’s response, and staff’s recommendation. Parking The parking calculation provided does not take into consideration the recently adopted parking ordinance changes. The total parking requirement for all three parcels (HUB Center, HUB West and Popeyes) is actually 824 spaces (with the transit reduction). While the overall count must be finalized, it is estimated that there is an excess of 219 stalls, therefore a loss of 42 or more spaces can be easily absorbed. Comprehensive Plan The Comprehensive Plan includes guiding principles that prioritized mixed use development, pedestrian friendly design, placemaking and public art in combination with outdoor spaces for gathering, dining and play; street- oriented architecture, a reduction in parking, and a scale that is compatible with adjacent neighborhoods. Staff finds that, when subject to the conditions recommended in the ARC Report, the proposal reduces parking, greatly improves the non-vehicular accommodations and enhances the look of the building. The findings necessary for approval of a CUP, Amended PUD and FDP are described in the City Code (Subsections 547.09. Subd.6, and 542.09, Subd.3) and further articulated in the attached “Required Findings” document. D.CRITICAL TIMING ISSUES: Brixmor, unaware that previous land use approvals had expired, had already entered into an agreement with the new tenant prior to applying for land use approvals. Therefore, they are eager to get through the approval process. The 60-day clock has not yet started; a few outstanding items have been included as conditions of approval, including written consent from Popeye’s for the portion of improvements impacting their property. E.FINANCIAL IMPACT: None; the required land use application fees have been paid. F.LEGAL CONSIDERATION: The Declaration of Covenants, Restrictions and Easements for the property is written such that the Housing and Redevelopment Authority (HRA) must approve any changes to the parking configuration on the property. Such approval has been included as a condition of approval and the item is scheduled for the October 21 HRA meeting. Notice of the public hearing was as mailed to properties within 350 feet of the site, and published in the Sun Current newspaper on August 15, 2024. The Planning Commission unanimously recommended approval (5-0). ALTERNATIVE RECOMMENDATION(S): Recommend approval of the proposal with additional and/or modified stipulations. Recommend denial of the proposal with a finding that it does not meet City requirements. PRINCIPAL PARTIES EXPECTED AT MEETING: Lauren Robinson, Project Director Redevelopment, Brixmor; and Richard Dippolito, VP Redevelopment, Brixmor ATTACHMENTS: Description Type Resolution of Approval Resolution Letter ARC Report 8-12-24 Backup Material Applicant's Request Narrative Backup Material CUP PUD Drawings 080524 Backup Material Required Findings Backup Material Zoning/Location Map Exhibit Updated Grocery Store Walkshed Map Exhibit RESOLUTION NO. RESOLUTION APPROVING A CONDITIONAL USE PERMIT AND A AMENDED PLANNED UNIT DEVELOPMENT FINAL DEVELOPMENT PLAN AT 140 – 66TH STREET WEST WHEREAS, an application has been filed with the City of Richfield which requests approval of a final development plan and conditional use permit for an amended planned unit development for a retail use with over 50,000 square feet of gross floor area, on land that is legally described in Exhibit A, attached; and WHEREAS, the Planning Commission of the City of Richfield held a public hearing and recommended approval of the requested Amended Planned Unit Development Final Development Plan and Conditional Use Permit at its August 26, 2024 meeting; and WHEREAS, notice of the public hearing was mailed to properties within 350 feet of the subject property on August 15, 2024, and published in the Sun-Current on August 15, 2024; and WHEREAS, the request meets those requirements necessary for approving an Amended Planned Unit Development as specified in Richfield’s Zoning Code, Section 542.09, Subd. 3 and as detailed in City Council Staff Report No.___; and WHEREAS, the request meets those requirements necessary for approving a Conditional Use Permit as specified in Richfield’s Zoning Code, Section 547.09, Subd. 6 and as detailed in City Council Staff Report No.___; and WHEREAS, the City has fully considered the request for approval of an amended planned unit development, final development plan and conditional use permit; and NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Richfield, Minnesota, as follows: 1. The City Council adopts as its Findings of Fact the WHEREAS clauses set forth above, and the findings listed in the Required Findings Statement. 2. An amended planned unit development, final development plan and conditional use permit are approved for a retail use with over 50,000 square feet of gross floor area as described in City Council Report No. ___, on the Subject Property legally described as attached. 3. The approved amended planned unit development, final development plan and conditional use permit are subject to the following conditions: a) That the applicant obtains written consent from Popeye’s for the portion of the improvements that are located on Popeye’s property. b) Prior to issuance of any construction permits, the plans shall be revised to comply with all items detailed in the City’s Administrative Review Committee Report dated August 12, 2024. c) The applicant shall record this Resolution with the County, pursuant to Minnesota Statutes Section 462.36, Subd. 1 and the City’s Zoning Ordinance Section 547.09, Subd. 8. d) The parking lot landscaping elements that are located on the HUB Center parcel (to the east) will be attributed toward the internal parking lot landscaping requirement for the subject site. To memorialize this understanding, a copy of this resolution of approval must also be recorded against the HUB Center parcel. e) Proof of having recorded this resolution of approval against both parcels must be submitted to the City prior to the issuance of an occupancy permit. f) Required changes to the Declaration of Covenants, Restrictions and Easements must be approved by the HRA prior to issuance of construction permits. g) This does not constitute approval of any signage; sign permits are required and must be applied for separately. h) Any signs on the building’s north facade shall only be lit during hours of operation. i) Final site plan, landscaping plan, building elevations, photometric plans and details must be approved by the Community Development Department prior to installation. A final sediment and erosion control plan must be submitted to and approved by the Public Works Director. j) The applicant shall provide an updated and accurate existing parking count. k) The mural shall not contain any text or logos, subject to staff review and approval. l) All windows shall maintain two-way visibility year round. m) Sidewalk displays are not permitted any time of year. n) Both the property owner and tenants are responsible for ensuring that all appropriate measures are taken so that shopping carts will stay on the property, and are collected from the parking lot as needed to maintain ease of bike, ped and vehicular circulation. o) The applicant is responsible for obtaining all required permits, and compliance with all other City, County and State regulations, including the MN Department of Agriculture. p) Prior to the issuance of an occupancy permit the Developer must submit a surety equal to 125% of the value of any required improvements or conditions of approval that are not yet complete. q) The property owner is responsible for the ongoing maintenance and tending of all exterior improvements in accordance with approved plans. 4. The approved planned unit development, final development plan and conditional use permit shall expire one year from issuance unless the use for which the permit was granted has commenced, substantial work has been completed or upon written request by the Developer, the Council extends the expiration date for an additional period of up to one year, as required by the Zoning Ordinance, Section 547.09, Subd. 9. 5. The approved planned unit development, final development plan and conditional use permit shall remain in effect for so long as conditions regulating it are observed, and the conditional use permit shall expire if normal operation of the use has been discontinued for 12 or more months, as required by the Zoning Ordinance, Section 547.09, Subd. 10. Adopted by the City Council of the City of Richfield, Minnesota this 10th day of September, 2024 Mary B. Supple, Mayor ATTEST: Michelle Friedrich, City Clerk Exhibit A Legal Description Community Development Department Planning & Zoning 6700 PORTLAND AVENUE, RICHFIELD, MINNESOTA 55423 612.861.9760 FAX: 612.861.8974 w w w . r i c h fi e l d m n . g o v A N E Q U A L O P P O R T U N I T Y E M P LO Y E R MAYOR MARY SUPPLE CITY COUNCIL SHARON CHRISTENSEN SEAN HAYFORD OLEARY SIMON TRAUTMANN BEN WHALEN CITY MANAGER KATIE RODRIGUEZ August 12, 2024 Lauren Robinson Brixmor Property Group 8700 W. Bryn Mawr Ave, Suite 1000S Chicago, IL 60631 Via Email: lauren.robinson@brixmor.com SUBJECT: ARC REPORT for Conditional Use Permit and PUD Amendment for Loma Bonita Grocery Store at 140 66th Street West CASE NOS: Z24-08 Below are the comments from the Administrative Review Committee (ARC) which will be included as an attachment to the staff report. If you have questions about any particular item, please contact the staff person(s) indicated. All City/Zoning code sections referenced are available on the City’s website. Planning and Zoning Sam Crosby, Planner, 612-861-9776 Parking & Circulation 1. Electric Vehicle parking is required at the rate of one space with L2 or L3 charging and 10% of spaces capable of L2 or L3 charging (Section 544.13, Subd.7.d). With approximately 127 stalls, that’s one charger and 13 “EV ready” spaces. You have indicated that, while Brixmor supports EV charging, it does not provide the charging infrastructure, but rather contracts with a provider who installs and manages the stations. While you’re happy to reach out to them, you cannot guarantee the provider will be interested in the location at all, much less the number of units. Without an offer for an alternative, yet equitable, substitution in an effort to meet the intent of the code, please revise the plans to comply with code. 2. Bicycle parking is required at the rate of four spaces, or one per 2,000 square feet of GFA, whichever is greater (Section 544.17). With 52,400 sq. ft, that’s 26 spaces. The plans show 11 racks (22 spaces). Please provide 2 more racks. Please locate at least 4 of the racks near the main entrance, so that the different locations accommodate riders entering the property from various directions. Racks must be located and installed to meet manufacturer’s specifications. 3. A pedestrian path from the bus stop on 66th to the grocery store main entrance is required by Section 544.15. An 8 foot wide path with crosswalks in the appropriate locations has been provided. Likewise, a ped path from the sidewalk on 65th Street Page 2 will also be provided. Please insure the connection of that crosswalk from the SciTech sidewalk to the public sidewalk is ADA accessible with curb cuts. 4. The site plan shows only one cart corral for the entire parking lot. This could result in carts being strewn throughout the parking lot - looking unkempt and being dangerous for drivers and pedestrians. In contrast, there were 12 cart corrals in the parking lots on the northeast and southeast sides of the building when Rainbow was operational. You have indicated that Brixmor will include standards about cart maintenance in your lease agreement with Loma Bonita. However, staff has concerns about the practicality of enforcement. Therefore, please revise the plans to ensure that at least one cart corral is available per drive aisle. (Meaning along one row of parking or the other, not both.) Landscaping 5. Landscaping is required at a minimum of one tree per 2,500 sq. ft. and one shrub per 1,000 sq. ft. of developable landscaping area (Section 544.03, Subd.6.b). For a 148,062 sq. ft. site (3.39 ac) this is 59 trees and 148 shrubs. The plan provides 30 trees and 178 shrubs. This is a 29 tree deficit. Please revise the plans to include another 29 trees, or pay the equivalent into the public tree planting fund. 6. Parking lots must be setback 8 feet from the right-of-way (Section 544.13, Subd.5.a) You have indicated that an 8 foot setback would cause a ripple effect across the entire property by requiring parking aisles and drive lanes to be shifted, requiring further consents from multiple tenants in the shopping center. Consequently, Brixmor is asking to forego this requirement. Staff finds this a reasonable request, however, as an alternative improvement, staff asks that all the ADA parking stalls be restriped to comply with current ADA requirements. 7. Perimeter parking lot landscaping is required at the rate of one overstory (or coniferous) tree for every 40 feet of street frontage on average (may be grouped), and 25% of the ground should be covered by shrubs and/or perennials. The view to the parking lot from grade level should be screened to a height of 3 to 4 feet with a combination of shrubs and/or earthen berms. For the same reasons cited in #6, Brixmor is asking for concession in regards to this requirement. In an effort to meet the intent of the requirement, the plans include landscape “peninsulas” on either side of the access onto to 65th Street, and landscaped “bump outs” on either side of 66th Street, to accent and define these entrances. In addition, while not required, an underground irrigation system will be installed to serve the landscape islands created in connection with the entrance and parking lot modifications. Provided:  All landscaped areas are irrigated and equipped with an automatic rain shut- off sensor,  The popeyes island and the bumpout on the west side of the 66th street access are landscaped,  All landscaped areas include both trees and shurbs, and Page 3  Item #5 is met, staff finds this reasonable. Screening 8. The existing dumpster enclosure (which serves Popeyes) is in significant disrepair and is not large enough (Section 544.05). Brixmor has indicated that the enclosure will be reconstructed. Details to be provided with building permit; size and design to subject to staff review and approval. 9. All rooftop mechanical equipment must be screened from view (Section 544.03, Subd.6.a). Brixmor has indicated that a screening element will be integrated into the proposed façade improvement to obstruct views of the rooftop mechanical equipment. Details to be provided with building permit; subject to staff review and approval. Elevations 10. Windows or simulated windows shall at a minimum be used on the ground level of any wall parallel to or nearly parallel to a street. (544.07, Subd.5) This would be the south side of the building. Brixmor has stated that windows or simulated windows on the south side would not be conducive to the grocer’s operations since perimeter walls will be used for merchandising and shelving of products. In compensation, Brixmor proposes creating an EFIS building element that wraps the southeast corner of the building, and commissioning a local artist to paint a mural on that corner element, as shown on the elevation drawings. The mural’s theme could possibly celebrate Hispanic culture and/or fresh foods in synergy with the grocery store use. While this and the other proposed façade changes will greatly enhance the look of the building, staff has concerns about the blank wall area on the front of the building, between the new metal awning and the accent mural. The existing awning currently runs the length of the building, providing cover from the elements for the sidewalk that also runs the length of the building. For both aesthetic and practical reasons, please continue the new awning to the south corner of the building. 11. Commercial development shall use plant materials … and public art to enhance the appearance of buildings and parking areas; to provide visual relief from long blank walls; to improve the environment for pedestrians (544.03, Subd.6). The northeast façade, beyond the entry feature, is also a long blank wall that calls for visual relief. Please provide vertical architectural details, such as faux columns, or other means to break up the horizontal expanse of this north elevation. For aesthetic reasons, and to provide cover from the elements over the sidewalk along the north side of the building, please also provide an awning along the entire north side of the building. Page 4 Other 12. The sidewalk in front of the building appears to be only 5 feet wide, therefore any exterior display of merchandising (pumpkins in the fall, etc.) would block required pedestrian travel. You have indicated that Loma Bonita does not require sidewalk display area and that Brixmor will include the prohibition of exterior display in your lease agreement with Loma Bonita. 13. The photometric plan does not include the decorative downcast fixtures illuminating the mural. Please revise accordingly. Also, please provide sufficient information in order to determine code compliance (see Section 544.09) as well as provide spec sheets for any new fixtures. Engineering, Public Works, Utilities Joe Powers 612-861-9791/ Traffic Engineer: Matt Hardegger 612-861-9792 / Utilities: 14. A 4-way stop has been provided at the “intersection” created at the southwest tip of the Michaels building by the new islands. Please ensure that there are stop signs at this intersection, not just pavement markings. 15. We have concerns regarding kids crossing traffic to reach the playground and recommend a curbed and raised crosswalk so that the row of parking against the building becomes a dead-end. Brixmor expressed concerns that such an improvement would impede access for emergency vehicles and stated that current practices (using temporary cones and signs during the recess period) are without incident and would continue to provide safety under the proposed conditions. Our police and fire staff do not agree that the modification would impede emergency access. Overall, staff disagrees that conditions after store opening will be comparable to existing conditions. Further, our police have in the past received a request for public enforcement of the private cones and signage (which they are not able to provide). Consequently, staff does not approve of the current playground configuration without a physical barrier. Please revise plans accordingly, design subject to staff review and approval. Stormwater Engineering Mattias Oddsson, 612-861-9797 16. Land disturbance over 5,000 square ft. requires an erosion control plan per City code section 428. You have acknowledged that an erosion control plan will be provided with the construction drawing permit set. If you have questions regarding these requirements, or the process in general, I can be reached at either 612-861-9776 or scrosby@richfieldmn.gov. Sincerely, Sam Crosby Planner II Richfield Hub: PUD Application  Project Narrative    Brixmor plans to revitalize The Hub Shopping Center by re‐tenanting the vacant space at 140 W. 66th Street  with Supermercado Loma Bonita.  The space is 52,195 square feet and was formerly leased to Rainbow  Foods who vacated the space in 2018.    Supermercardo Loma Bonita is an established, family owned Hispanic grocery chain with 4 existing  locations (Savage, St. Paul, Crystal and Hilltop) in the Twin Cities.  For over 15 years, they’ve been the  premier Hispanic grocer in the region.  The existing stores are smaller format locations, approximately  10,000 square feet) and do a combined $40M annually.  Their location at Richfield Hub will be a full‐size  grocery store unlike anything else in the market.  This “flagship” store will feature a full grocery offering  which will include a meat department, bakery and a restaurant element.    In conjunction with bringing this new tenant to the Center, Brixmor plans to renovate the façade of the  grocery store.  The new façade will include painting of the existing metal canopy, a new canopy hung with  metal cables from a new EIFS façade, new tower elements to signify the store entries.  Updates to the  balance of the building will include brick coursing at the base of the building with new EIFS panels above.    Brixmor also plans to improve vehicular access off of 66th Street by installing landscaped islands that will  better direct traffic into Loma Bonita’s parking field and to the balance of the Center.  All of the proposed  parking improvements require consent from existing tenants at the Center.  These tenants have  restrictions on alterations to the Common Area and some of the proposed improvements occur on  Popeye’s parcel.  Brixmor cannot proceed with executing this portion of the plan until these consents are  obtained.  This proposal will not have any effect on the adjacent properties.  Brixmor will ensure that the space is  designed and constructed so as to be harmonious with the existing center.  The project will not create any  additional requirements of public cost for public facilities or public services.    Proposed Project Schedule:  Supermercado Loma Bonita Lease Signing – Complete  Commence Loma Bonita’s Shell ConstrucƟon – 3Q24  Complete Loma Bonita facades – 4Q24  Commence Loma Bonita’s interior construcƟon – 3Q24  Supermercado Loma Bonita Opening – 4Q24    6 6 T H S T R E E T W E S T 6 6 T H S T R E E T W E S T 5 25 14 8 6 17 17 21 37 1 10 EXISTING LIGHT POLE TO REMAIN, PROTECT IN PLACE 2 4 . 0 '24.0'24.0' 2 4 . 0 ' EXISTING SIGN & BOLLARD TO BE REMOVED EXISTING YIELD SIGN TO BE REMOVEDEXISTING STORM INLET TO REMAIN, PROTECT IN PLACE EXISTING HYDRANT TO REMAIN, PROTECT IN PLACE EXISTING CONCRETE MEDIAN TO BE REMOVED EXISTING CONCRETE MEDIAN TO REMAIN, PROTECT IN PLACE PROPOSED LA ISLAND. AREA: 368 SF PROPOSED LA ISLAND. AREA: 361 SF PROPOSED LA ISLAND. AREA: 356 SF PROPOSED LA ISLAND. AREA: 239 SF PROPOSED LA ISLAND. AREA: 332 SF PROPOSED LA ISLAND. AREA: 519 SF PROPOSED LA ISLAND. AREA: 272 SF 14.8'1 0 . 7 ' 1 0 . 0 ' PROPOSED CART CORRAL 24.0'28.5'24.0'PROPOSED LA ISLAND. AREA: 400 SF 1 3 . 7 ' 2 4 . 0 ' PROPOSED MURAL, SEE ARCHITECTURAL PLANS PROPOSED FOUR-WAY STOP 24.0'24.0'PROPOSED BIKE RACKS (11)- BELSON MODEL HR-FT-GV 6 5 T H S T R E E T W E S T 6 6 T H S T R E E T W E S T 6 5 T H S T R E E T W E S T 6 6 T H S T R E E T W E S T N I C O L L E T A V E N U E S O U T HS O O L I N E R A I L R O A D 6 6 T H S T R E E T W E S T 6 5 T H S T R E E T W E S T HUB CENTER | Concept Site Plan - 01 Richfield, MN Project # 16107600.3 JULY 19TH, 2024 2024 KIMLEY-HORN AND ASSOCIATES, INC.© NORTH VICINITY MAP NOT TO SCALE THIS DRAWING IS CONCEPTUAL ONLY. ALL SHOWN DIMENSIONS, UTILITY EASEMENTS, LOT PROPERTY LINES, GRADING, AND SITE REQUIREMENTS PERTAINING TO THE PROPERTY SHOULD BE VERIFIED BY SURVEYOR AND/OR CIVIL ENGINEER BEFORE ACTUAL CONSTRUCTION. NORTH PROPERTY SUMMARY PROPERTY AREA 3.41 AC / ±148,462 SF RECONSTRUCTED IMPERVIOUS AREA ±8,500 SF DISTURBED AREA ±8,600 SF SITE DATA EXISTING ZONING PC-2 PLANNED GENERAL COMMERCIAL & C-2 GENERAL COMMERCIAL PARKING SUMMARY PROPOSED PARKING LOST 52 SPACES PROPOSED PARKING GAINED 10 SPACES TOTAL PROPOSED PARKING LOST 42 SPACES GREENSPACE CART CORRAL LANDSCAPING REQUIREMENTS ·PERIMETER PLANTINGS. AT A MINIMUM, A MIXTURE OF OVERSTORY AND CONIFEROUS TREES AND SHRUBS SHALL BE PLANTED ALONG THE STREET EDGE OF ALL PARKING LOTS AT THE RATE OF ONE (1) OVERSTORY TREE (OR ONE (1) CONIFEROUS TREE) FOR EVERY 40 FEET OF STREET FRONTAGE (ON AVERAGE, MAY BE GROUPED); IN ADDITION, 25 PERCENT OF THE GROUND SHOULD BE COVERED BY SHRUBS AND/OR PERENNIALS. THE VIEW TO THE PARKING LOT FROM GRADE LEVEL SHOULD BE SCREENED TO A HEIGHT OF THREE (3) TO FOUR (4) FEET WITH A COMBINATION OF SHRUBS AND/OR EARTHEN BERMS. THESE PLANTINGS SHOULD NORMALLY BE LOCATED ON PRIVATE PROPERTY THREE (3) FEET BEHIND THE PROPERTY LINE BUT MAY BE LOCATED IN THE PUBLIC RIGHT-OF-WAY WITH THE APPROVAL OF THE PUBLIC WORKS DIRECTOR. IN SOME AREAS, ADDITIONAL ELEMENTS SUCH AS A HEDGE AND/OR A FENCE MAY ALSO BE REQUIRED AT THE DISCRETION OF THE DIRECTOR ·INTERIOR PLANTINGS. PARKING LOTS FOR MORE THAN 25 VEHICLES MUST HAVE AT LEAST FIVE (5) PERCENT OF THEIR AREA DEVOTED TO LANDSCAPED ISLANDS PLANTED WITH OVERSTORY DECIDUOUS TREES. THE CITY PREFERS FEWER BUT LARGER INTERIOR PLANTING AREAS IN PARKING LOTS FOR THE SAKE OF LOWER MAINTENANCE, BETTER TREE HEALTH AND GREATER VISUAL EFFECT. THE MINIMUM SIZE OF A LANDSCAPED ISLAND IS 180 SQUARE FEET WITH A MINIMUM CURB-FACE-TO-CURB-FACE DIMENSION OF TEN (10) FEET. EACH PLANTING ISLAND SHOULD HAVE TWO (2) OVERSTORY TREES OR TWO (2) ORNAMENTAL TREES IF BRANCHES DO NOT INTERFERE WITH SIGHT LINES OR PEDESTRIAN MOVEMENT. COMPACTED SOIL IN PLANTING ISLANDS SHOULD BE REMOVED TO A DEPTH OF 3.5 FEET TO PROVIDE ADEQUATE DRAINAGE. PROPERTY LINE LEGEND RIVER BIRCH MULTI-TRUNK TREE B612 CURB & GUTTER- REFER TO DETAIL LANDSCAPING SUMMARY PARCEL 2 PARKING AREA 51,443 SF REQUIRED LANDSCAPE ISLAND AREA (5% OF PARCEL 2 PARKING AREA)2,572 SF PROPOSED LANDSCAPE ISLAND AREA 2,847 SF PROPOSED ROW CONNECTION PROPOSED RAMP PROPOSED RAMP PROPOSED RAMP PROPOSED RAMP 6 5 T H S T R E E T W E S T 6 6 T H S T R E E T W E S T 6 5 T H S T R E E T W E S T 6 6 T H S T R E E T W E S T N I C O L L E T A V E N U E S O U T HS O O L I N E R A I L R O A D6 6 T H S T R E E T W E S T 6 5 T H S T R E E T W E S T 5 25 EXISTING SHOPPING CENTER ±135,400 SF PROPOSED RETAIL ±52,400 SF EXISTING K-8 SCHOOL ±27,000 SF EXISTING QSR ±4,000 SFEXISTING OFFICE±5,200 SFEXISTING GNC±1,200 SFEXISTING QSR ±2,600 SF 14 8 6 17 17 21 37 PARCEL 2 PARCEL 1 POPEYE'S LOT 7 1 10 3 10 5' TALL CHAINLINK FENCE APPROX. GATE LOCATION APPROX. SAFETY ZONE PLAYGROUND EQUIPMENT SAFETY SURFACE ENGINEERED WOOD FIBER ASPHALT BASKETBALL COURT 8 EXISTING PLAYGROUND AREA LOSS OF 28 PARKING SPACES. HUB CENTER | Concept Site Plan - Overall Richfield, MN Project # 16107600.3 July 19th, 2024 2024 KIMLEY-HORN AND ASSOCIATES, INC.© PARKING SUMMARY EXISTING VS PROPOSED PARKING PROPOSED PARKING LOST 52 SPACES PROPOSED PARKING GAINED 10 SPACES TOTAL PROPOSED PARKING LOST 42 SPACES POPEYE'S LOT REQUIRED PARKING 17 SPACES/ 1,000 SF= 44 SPACES (2,600 SF FAST FOOD) POPEYE'S LOT EXISTING PARKING 33 SPACES POPEYE'S LOT PROPOSED PARKING 26 SPACES PARCEL 2 REQUIRED PARKING 5 SPACES/ 1,000 SF= 262 SPACES (52,400 SF RETAIL) + 1 SPACE/ TEACHER PLUS 8 VISITOR SPACES= 41 SPACES (K-8 SCHOOL) 303 SPACES TOTAL PARCEL 2 EXISTING PARKING 129 SPACES TOTAL PARCEL 2 PROPOSED PARKING 122 SPACES TOTAL PARCEL 1 REQUIRED PARKING 4 SPACES/ 1,000 SF= 542 SPACES (135,400 SF SHOPPING CENTER) PLUS 17 SPACES/ 1,000 SF= 68 SPACES (4,000 SF FAST FOOD) PLUS 1 SPACE/ 275 SF= 19 SPACES (5,200 SF OFFICE) PLUS 5 SPACES/ 1,000 SF= 6 SPACES (1,200 SF RETAIL) 635 SPACES TOTAL PARCEL 1 EXISTING PARKING 923 SPACES PARCEL 1 PROPOSED PARKING 895 SPACES TOTAL REQUIRED PARKING 1,011 SPACES TOTAL REQUIRED PARKING WITH 10% TRANSIT CORRIDOR REDUCTION 910 SPACES (REDUCTION OF 101 SPACES) TOTAL EXISTING PARKING 1,085 SPACES TOTAL PROPOSED PARKING 1,043 SPACES THIS DRAWING IS CONCEPTUAL ONLY. ALL SHOWN DIMENSIONS, UTILITY EASEMENTS, LOT PROPERTY LINES, GRADING, AND SITE REQUIREMENTS PERTAINING TO THE PROPERTY SHOULD BE VERIFIED BY SURVEYOR AND/OR CIVIL ENGINEER BEFORE ACTUAL CONSTRUCTION. NORTH 6 6 T H S T R E E T W E S T 6 6 T H S T R E E T W E S T 5 25 14 8 6 17 17 21 37 1 10 PROPOSED LA ISLAND. AREA: 368 SF PROPOSED LA ISLAND. AREA: 361 SF PROPOSED LA ISLAND. AREA: 356 SF PROPOSED LA ISLAND. AREA: 239 SF PROPOSED LA ISLAND. AREA: 332 SF PROPOSED LA ISLAND. AREA: 519 SF PROPOSED LA ISLAND. AREA: 272 SF PROPOSED CART CORRAL PROPOSED LA ISLAND. AREA: 400 SF PROPOSED MURAL, SEE ARCHITECTURAL PLANS 6 5 T H S T R E E T W E S T 6 6 T H S T R E E T W E S T 6 5 T H S T R E E T W E S T 6 6 T H S T R E E T W E S T N I C O L L E T A V E N U E S O U T HS O O L I N E R A I L R O A D 6 6 T H S T R E E T W E S T 6 5 T H S T R E E T W E S T HUB CENTER | Concept Landscape Plan - 01 Richfield, MN Project # 16107600.3 JULY 19TH, 2024 2024 KIMLEY-HORN AND ASSOCIATES, INC.© NORTH VICINITY MAP NOT TO SCALE THIS DRAWING IS CONCEPTUAL ONLY. ALL SHOWN DIMENSIONS, UTILITY EASEMENTS, LOT PROPERTY LINES, GRADING, AND SITE REQUIREMENTS PERTAINING TO THE PROPERTY SHOULD BE VERIFIED BY SURVEYOR AND/OR CIVIL ENGINEER BEFORE ACTUAL CONSTRUCTION. NORTH LANDSCAPING REQUIREMENTS ·PERIMETER PLANTINGS. AT A MINIMUM, A MIXTURE OF OVERSTORY AND CONIFEROUS TREES AND SHRUBS SHALL BE PLANTED ALONG THE STREET EDGE OF ALL PARKING LOTS AT THE RATE OF ONE (1) OVERSTORY TREE (OR ONE (1) CONIFEROUS TREE) FOR EVERY 40 FEET OF STREET FRONTAGE (ON AVERAGE, MAY BE GROUPED); IN ADDITION, 25 PERCENT OF THE GROUND SHOULD BE COVERED BY SHRUBS AND/OR PERENNIALS. THE VIEW TO THE PARKING LOT FROM GRADE LEVEL SHOULD BE SCREENED TO A HEIGHT OF THREE (3) TO FOUR (4) FEET WITH A COMBINATION OF SHRUBS AND/OR EARTHEN BERMS. THESE PLANTINGS SHOULD NORMALLY BE LOCATED ON PRIVATE PROPERTY THREE (3) FEET BEHIND THE PROPERTY LINE BUT MAY BE LOCATED IN THE PUBLIC RIGHT-OF-WAY WITH THE APPROVAL OF THE PUBLIC WORKS DIRECTOR. IN SOME AREAS, ADDITIONAL ELEMENTS SUCH AS A HEDGE AND/OR A FENCE MAY ALSO BE REQUIRED AT THE DISCRETION OF THE DIRECTOR ·INTERIOR PLANTINGS. PARKING LOTS FOR MORE THAN 25 VEHICLES MUST HAVE AT LEAST FIVE (5) PERCENT OF THEIR AREA DEVOTED TO LANDSCAPED ISLANDS PLANTED WITH OVERSTORY DECIDUOUS TREES. THE CITY PREFERS FEWER BUT LARGER INTERIOR PLANTING AREAS IN PARKING LOTS FOR THE SAKE OF LOWER MAINTENANCE, BETTER TREE HEALTH AND GREATER VISUAL EFFECT. THE MINIMUM SIZE OF A LANDSCAPED ISLAND IS 180 SQUARE FEET WITH A MINIMUM CURB-FACE-TO-CURB-FACE DIMENSION OF TEN (10) FEET. EACH PLANTING ISLAND SHOULD HAVE TWO (2) OVERSTORY TREES OR TWO (2) ORNAMENTAL TREES IF BRANCHES DO NOT INTERFERE WITH SIGHT LINES OR PEDESTRIAN MOVEMENT. COMPACTED SOIL IN PLANTING ISLANDS SHOULD BE REMOVED TO A DEPTH OF 3.5 FEET TO PROVIDE ADEQUATE DRAINAGE. LANDSCAPE LEGEND RIVER BIRCH MULTI-TRUNK TREE LANDSCAPING SUMMARY PARCEL 2 PARKING AREA 51,443 SF REQUIRED LANDSCAPE ISLAND AREA (5% OF PARCEL 2 PARKING AREA)2,572 SF PROPOSED LANDSCAPE ISLAND AREA 2,847 SF PROPOSED ROW CONNECTION DECIDUOUS SHRUB 6 5 T H S T R E E T W E S T 6 6 T H S T R E E T W E S T 6 5 T H S T R E E T W E S T 6 6 T H S T R E E T W E S T N I C O L L E T A V E N U E S O U T HS O O L I N E R A I L R O A D6 6 T H S T R E E T W E S T 6 5 T H S T R E E T W E S T 5 25 EXISTING SHOPPING CENTER ±135,400 SF PROPOSED RETAIL ±52,400 SF EXISTING K-8 SCHOOL ±27,000 SF EXISTING QSR ±4,000 SFEXISTING OFFICE±5,200 SFEXISTING GNC±1,200 SFEXISTING QSR ±2,600 SF 14 8 6 17 17 21 37 PARCEL 2 PARCEL 1 POPEYE'S LOT 7 1 10 3 10 5' TALL CHAINLINK FENCE APPROX. GATE LOCATION APPROX. SAFETY ZONE PLAYGROUND EQUIPMENT SAFETY SURFACE ENGINEERED WOOD FIBER ASPHALT BASKETBALL COURT 8 EXISTING PLAYGROUND AREA LOSS OF 28 PARKING SPACES. HUB CENTER | Concept Landscape Plan - Overall Richfield, MN Project # 16107600.3 July 19th, 2024 2024 KIMLEY-HORN AND ASSOCIATES, INC.© THIS DRAWING IS CONCEPTUAL ONLY. ALL SHOWN DIMENSIONS, UTILITY EASEMENTS, LOT PROPERTY LINES, GRADING, AND SITE REQUIREMENTS PERTAINING TO THE PROPERTY SHOULD BE VERIFIED BY SURVEYOR AND/OR CIVIL ENGINEER BEFORE ACTUAL CONSTRUCTION. NORTH LANDSCAPE LEGEND RIVER BIRCH MULTI-TRUNK TREE DECIDUOUS SHRUB -SHEET NO.PROJECT NO.01.01.01AS SHOWNSCALEDATEREVISION DATESHEET TITLEPROJECTOWNERAll ideas, designs, arrangements, plans andspecifications indicated or represented by thisdrawing are owned by, and the property of,Aarchitects LLC, were created, evolved anddeveloped for use on and in connection with,the specified project. None of these ideas, designs,arrangements, plans and specifications shall beused by or disclosed to any person, firmor corporation for any purpose whatsoever withoutthe written permission of Aarchitects LLC. Contactwith these plans or specifications shall constituteconclusive evidence of acceptance of theserestrictions. © 2000 Aarchitects LLCwas prepared by me or under my direct supervisionand that I am a duly Licensed Architect under theI hereby certify that this plan, specification, or reportName: Jeffrey P. Agnes AIAlaw of the state of Minnesota.Signature:Reg. No.: 19452jagnes@aarchitectsllc.comA a r c h i t e c t s125 SE Main Street612 296-2933 C612 371-6440 TMinneapolis, MN 55414Suite 100LLCBRIXMOR PROPERTY GROUP98 WEST 66TH STREETSUITE 204RICHFIELD, MN 55423(612) 798-7960www.brixmor.comOF 1107/08/24RICHFIELD HUBEXTERIOR REMODEL100 66TH STREET WESTRICHFIELD, MN 55423BAY A07/08/24PERMIT SETDate:SCALE:1D-1 DEMO FLOOR PLAN3/32" = 1'-0"2D-21 D-23D-23'-4"3'-4"15'-2 1/2"(V.I.F.)NORTHPLANNORTH1. CONTRACTOR SHALL EXAMINE THE SITE AND BECOME FAMILIAR WITH ALLEXISTING AND VISIBLE CONDITIONS PRIOR TO SUBMISSION OF BID.2. MATERIALS SHOWN TO BE REMOVED AND NOT REINSTALLED SHALL BE THEPROPERTY OF THE OWNER. VERIFY POTENTIAL SALVAGED MATERIALS WITHOWNER PRIOR TO REMOVAL FROM THE SITE.PROMPTLY DISPOSE OF DEMOLISHED MATERIALS IN AN AUTHORIZED DISPOSALSITE, ACCORDING TO LOCAL, STATE AND EPA REGULATIONS.3. DO NOT DISTURB OR DAMAGE AREAS NOT INDICATED TO BE DEMOLISHEDUNLESS REQ'D. BY THE WORK.4. DEBRIS SHALL BE REMOVED FROM THE SITE DAILY.5. AT THE EXTERIOR OF THE BUILDING THE CONTRACTOR SHALL PROVIDEBARRIERS AND PROTECTION FOR THE SAFETY OF THE PUBLIC AS REQ'D., ANDCONFORMING WITH LOCAL ORDINANCES.6. SHOULD ASBESTOS BE ENCOUNTERED, CONTRACTOR SHALL CEASE WORKIMMEDIATELY AND NOTIFY OWNER. (ASBESTOS ABATEMENT TO BECOORDINATED BY OWNER UNDER A SEPARATE CONTRACT.)7. DEMOLITION PROCESS INVOLVING EXCESSIVE NOISE SHALL BECOORDINATED WITH OWNER SO AS NOT TO INTERFERE WITH PATRONS.8. SHOULD FIRE PROOFING BE DAMAGED OR REMOVED DURING THE COURSEOF WORK, CONTRACTOR SHALL REPAIR AS REQ'D. TO MATCH EXISTING ORGOVERNING CODES, WHICHEVER IS GREATER.9. ALL DEMOLITION SHALL BE DONE IN ACCORDANCE WITH ACCEPTEDSTANDARDS AND PRACTICE. SPACE SHALL BE IN CLEAN CONDITION ATCOMPLETION OF DEMOLITION OR PRIOR TO BEGINNING CONSTRUCTION,WHICHEVER IS FIRST.10. SHOULD ANY UNUSUAL OR UNEXPECTED CONDITIONS BE ENCOUNTEREDDURING THE COURSE OF DEMOLITION, CONTRACTOR SHALL NOTIFY OWNERAND ARCHITECT BY PHONE AT ONCE, AND IN WRITING WITHIN 10 DAYS.11. REMOVE ALL UNUSED EXISTING WALL-MOUNTED ITEMS AND STOCKPILEOWNER-VERIFIED ITEMS FOR REUSE.DEMOLITION NOTESDEMOLITION KEY NOTESNO.REMOVE EXIST. MTL. CANOPY IN ITS ENTIRETY BACK TO WALLSURFACE WHERE SHOWN DASHED. PATCH AND INFILL AS REQ'D.TO MATCH AND BLEND W/EXIST. ADJ. SURFACES.NOTEREMOVE ALL EXIST. WALL-MOUNTED ITEMS INCLUDING ADA SIGNAGE, AS REQ'D.TO PROVIDE NEW WALL FINISH AND REINSTALL AT SAME LOCATION ON NEWLYFINISHED WALL.12. PROMPTLY PATCH AND REPAIR ALL AREAS AFFECTED BY DEMOLITION.RESTORE EXPOSED FINISHES OR PATCHED AREAS AND EXTEND RESTORATIONIN ADJOINING CONSTRUCTION IN A MANNER THAT ELIMINATES EVIDENCE OFPATCHING AND REFINISHING.DO NOT CUT AND PATCH OPERATING ELEMENTS IN A MANNER THAT WOULDREDUCE THEIR CAPACITY TO PERFORM AS INTENDED.RETAIN ORIGINAL INSTALLER TO CUT AND PATCH EXISTING ELEMENTS WHICHMAY VOID THE EXISTING WARRANTY.DO NOT CUT AND PATCH EXPOSED SURFACES WHICH WOULD REDUCE THEBUILDINGS AESTHETIC QUALITIES. REMOVE AND REPLACE CONSTRUCTIONTHAT WAS CUT AND PATCHED IN A VISUALLY UNSATISFACTORY MANNER.THE DRAWINGS DO NOT PURPORT TO SHOW ALL CUTTING AND PATCHING. THECONTRACTOR SHALL ESTABLISH ALL OF THE CUTTING AND PATCHINGNECESSARY AND INCLUDE ALL COSTS IN BID.13. ALL SERVICE AND UTILITIES TO REMAIN MUST BE MAINTAINED WITHOUTINTERRUPTION DURING DEMOLITION. IF SERVICE NEEDS TO BE DISTURBED,SCHEDULE OR WORK MUST BE REVIEWED AND APPROVED BY OWNER.14. MAINTAIN ALL EXISTING FIRE AND LIFE SAFETY SYSTEMS DURINGDEMOLITION.15. DEMOLISH AND REMOVE EXISTING CONSTRUCTION ONLY TO THE EXTENTREQ'D. BY NEW CONSTRUCTION. DO NOT REMOVE, CUT OR ALTER STRUCTURALMEMBERS WITHOUT THE PRIOR APPROVAL OF THE STRUCTURAL ENGINEER.16. PROCEED WITH DEMOLITION SYSTEMATICALLY, NEATLY CUT OPENINGS ANDHOLES PLUMB, USING CUTTING METHODS LEAST LIKELY TO DAMAGECONSTRUCTION TO REMAIN. CUT AND OR DRILL FROM FINISHED SIDE OFCONSTRUCTION TO REMAIN. DO NOT USE CUTTING TORCHES UNTIL WORKAREA IS CLEARED OF FLAMMABLE MATERIAL. MAINTAIN FIRE WATCH WITHPORTABLE FIRE FIGHTING DEVICES DURING CUTTING OPERATIONS.REMOVE EXIST. COPING AS REQ'D. TO INSTALL NEW WALL/WALLFINISH.REMOVE EXIST. CANOPY DOWNSPOUT. CUT AND PATCHSIDEWALK AS REQ'D. TO BLEND AND ALIGN W/EXIST. ADJACENTSURFACE.REMOVE EXIST. MTL. BOLLARD. CUT AND PATCH SIDEWALK ASREQ'D. TO BLEND AND ALIGN W/EXIST. ADJACENT SURFACE.REMOVE EXIST. GLAZING AND TOP/BOTTOM MULLIONS AS REQ'D.TO INSTALL NEW 3'-4" WIDE COLUMN/WALL.EXIST. MTL. CANOPY SUPPORT STRUCTURE TO REMAIN; REMOVEEXIST. S.S.M. ROOF AND EXIST. MTL. UNDERCANOPY SOFFIT BACKTO UNDERLAYMENT.REMOVE/RELOCATE EXIST. RAILING TO ACCOMMODATE NEWTOWER. PROVIDE <4" CLR. BET. TOWER AND NEW RAIL VERTICAL.PATCH WEATHERTIGHT.NO.NOTE1.-D-1DEMOLITION FLOOR PLAN -SHEET NO.PROJECT NO.01.01.01AS SHOWNSCALEDATEREVISION DATESHEET TITLEPROJECTOWNERAll ideas, designs, arrangements, plans andspecifications indicated or represented by thisdrawing are owned by, and the property of,Aarchitects LLC, were created, evolved anddeveloped for use on and in connection with,the specified project. None of these ideas, designs,arrangements, plans and specifications shall beused by or disclosed to any person, firmor corporation for any purpose whatsoever withoutthe written permission of Aarchitects LLC. Contactwith these plans or specifications shall constituteconclusive evidence of acceptance of theserestrictions. © 2000 Aarchitects LLCwas prepared by me or under my direct supervisionand that I am a duly Licensed Architect under theI hereby certify that this plan, specification, or reportName: Jeffrey P. Agnes AIAlaw of the state of Minnesota.Signature:Reg. No.: 19452jagnes@aarchitectsllc.comA a r c h i t e c t s125 SE Main Street612 296-2933 C612 371-6440 TMinneapolis, MN 55414Suite 100LLCBRIXMOR PROPERTY GROUP98 WEST 66TH STREETSUITE 204RICHFIELD, MN 55423(612) 798-7960www.brixmor.comOF 1107/08/24RICHFIELD HUBEXTERIOR REMODEL100 66TH STREET WESTRICHFIELD, MN 55423BAY A07/08/24PERMIT SETDate:3'-4"3'-4"SCALE:1D-2 DEMO EXTERIOR ELEVATION - EAST3/32" = 1'-0"SCALE:2D-2 DEMO EXTERIOR ELEVATION - SOUTH3/32" = 1'-0"SCALE:3D-2 DEMO EXTERIOR ELEVATION - SOUTHWEST3/32" = 1'-0"15'-2 1/2"(V.I.F.)C.JT.C.JT.C.JT.C.JT.C.JT.C.JT.C.JT.C.JT.C.JT.3'-4"10'-0"1. CONTRACTOR SHALL EXAMINE THE SITE AND BECOME FAMILIAR WITH ALLEXISTING AND VISIBLE CONDITIONS PRIOR TO SUBMISSION OF BID.2. MATERIALS SHOWN TO BE REMOVED AND NOT REINSTALLED SHALL BE THEPROPERTY OF THE OWNER. VERIFY POTENTIAL SALVAGED MATERIALS WITHOWNER PRIOR TO REMOVAL FROM THE SITE.PROMPTLY DISPOSE OF DEMOLISHED MATERIALS IN AN AUTHORIZED DISPOSALSITE, ACCORDING TO LOCAL, STATE AND EPA REGULATIONS.3. DO NOT DISTURB OR DAMAGE AREAS NOT INDICATED TO BE DEMOLISHEDUNLESS REQ'D. BY THE WORK.4. DEBRIS SHALL BE REMOVED FROM THE SITE DAILY.5. AT THE EXTERIOR OF THE BUILDING THE CONTRACTOR SHALL PROVIDEBARRIERS AND PROTECTION FOR THE SAFETY OF THE PUBLIC AS REQ'D., ANDCONFORMING WITH LOCAL ORDINANCES.6. SHOULD ASBESTOS BE ENCOUNTERED, CONTRACTOR SHALL CEASE WORKIMMEDIATELY AND NOTIFY OWNER. (ASBESTOS ABATEMENT TO BECOORDINATED BY OWNER UNDER A SEPARATE CONTRACT.)7. DEMOLITION PROCESS INVOLVING EXCESSIVE NOISE SHALL BECOORDINATED WITH OWNER SO AS NOT TO INTERFERE WITH PATRONS.8. SHOULD FIRE PROOFING BE DAMAGED OR REMOVED DURING THE COURSEOF WORK, CONTRACTOR SHALL REPAIR AS REQ'D. TO MATCH EXISTING ORGOVERNING CODES, WHICHEVER IS GREATER.9. ALL DEMOLITION SHALL BE DONE IN ACCORDANCE WITH ACCEPTEDSTANDARDS AND PRACTICE. SPACE SHALL BE IN CLEAN CONDITION ATCOMPLETION OF DEMOLITION OR PRIOR TO BEGINNING CONSTRUCTION,WHICHEVER IS FIRST.10. SHOULD ANY UNUSUAL OR UNEXPECTED CONDITIONS BE ENCOUNTEREDDURING THE COURSE OF DEMOLITION, CONTRACTOR SHALL NOTIFY OWNERAND ARCHITECT BY PHONE AT ONCE, AND IN WRITING WITHIN 10 DAYS.11. REMOVE ALL UNUSED EXISTING WALL-MOUNTED ITEMS AND STOCKPILEOWNER-VERIFIED ITEMS FOR REUSE.DEMOLITION NOTESDEMOLITION KEY NOTESNO.REMOVE EXIST. MTL. CANOPY IN ITS ENTIRETY BACK TO WALLSURFACE WHERE SHOWN DASHED. PATCH AND INFILL AS REQ'D.TO MATCH AND BLEND W/EXIST. ADJ. SURFACES.NOTEREMOVE ALL EXIST. WALL-MOUNTED ITEMS INCLUDING ADA SIGNAGE, AS REQ'D.TO PROVIDE NEW WALL FINISH AND REINSTALL AT SAME LOCATION ON NEWLYFINISHED WALL.12. PROMPTLY PATCH AND REPAIR ALL AREAS AFFECTED BY DEMOLITION.RESTORE EXPOSED FINISHES OR PATCHED AREAS AND EXTEND RESTORATIONIN ADJOINING CONSTRUCTION IN A MANNER THAT ELIMINATES EVIDENCE OFPATCHING AND REFINISHING.DO NOT CUT AND PATCH OPERATING ELEMENTS IN A MANNER THAT WOULDREDUCE THEIR CAPACITY TO PERFORM AS INTENDED.RETAIN ORIGINAL INSTALLER TO CUT AND PATCH EXISTING ELEMENTS WHICHMAY VOID THE EXISTING WARRANTY.DO NOT CUT AND PATCH EXPOSED SURFACES WHICH WOULD REDUCE THEBUILDINGS AESTHETIC QUALITIES. REMOVE AND REPLACE CONSTRUCTIONTHAT WAS CUT AND PATCHED IN A VISUALLY UNSATISFACTORY MANNER.THE DRAWINGS DO NOT PURPORT TO SHOW ALL CUTTING AND PATCHING. THECONTRACTOR SHALL ESTABLISH ALL OF THE CUTTING AND PATCHINGNECESSARY AND INCLUDE ALL COSTS IN BID.13. ALL SERVICE AND UTILITIES TO REMAIN MUST BE MAINTAINED WITHOUTINTERRUPTION DURING DEMOLITION. IF SERVICE NEEDS TO BE DISTURBED,SCHEDULE OR WORK MUST BE REVIEWED AND APPROVED BY OWNER.14. MAINTAIN ALL EXISTING FIRE AND LIFE SAFETY SYSTEMS DURINGDEMOLITION.15. DEMOLISH AND REMOVE EXISTING CONSTRUCTION ONLY TO THE EXTENTREQ'D. BY NEW CONSTRUCTION. DO NOT REMOVE, CUT OR ALTER STRUCTURALMEMBERS WITHOUT THE PRIOR APPROVAL OF THE STRUCTURAL ENGINEER.16. PROCEED WITH DEMOLITION SYSTEMATICALLY, NEATLY CUT OPENINGS ANDHOLES PLUMB, USING CUTTING METHODS LEAST LIKELY TO DAMAGECONSTRUCTION TO REMAIN. CUT AND OR DRILL FROM FINISHED SIDE OFCONSTRUCTION TO REMAIN. DO NOT USE CUTTING TORCHES UNTIL WORKAREA IS CLEARED OF FLAMMABLE MATERIAL. MAINTAIN FIRE WATCH WITHPORTABLE FIRE FIGHTING DEVICES DURING CUTTING OPERATIONS.REMOVE EXIST. COPING AS REQ'D. TO INSTALL NEW WALL/WALLFINISH.REMOVE EXIST. CANOPY DOWNSPOUT. CUT AND PATCHSIDEWALK AS REQ'D. TO BLEND AND ALIGN W/EXIST. ADJACENTSURFACE.REMOVE EXIST. MTL. BOLLARD. CUT AND PATCH SIDEWALK ASREQ'D. TO BLEND AND ALIGN W/EXIST. ADJACENT SURFACE.REMOVE EXIST. GLAZING AND TOP/BOTTOM MULLIONS AS REQ'D.TO INSTALL NEW 3'-4" WIDE COLUMN/WALL.EXIST. MTL. CANOPY SUPPORT STRUCTURE TO REMAIN; REMOVEEXIST. S.S.M. ROOF AND EXIST. MTL. UNDERCANOPY SOFFIT BACKTO UNDERLAYMENT.REMOVE/RELOCATE EXIST. RAILING TO ACCOMMODATE NEWTOWER. PROVIDE <4" CLR. BET. TOWER AND NEW RAIL VERTICAL.PATCH WEATHERTIGHT.NO.NOTE1.-D-2DEMOLITION EXTERIORELEVATIONS -SHEET NO.PROJECT NO.01.01.01AS SHOWNSCALEDATEREVISION DATESHEET TITLEPROJECTOWNERAll ideas, designs, arrangements, plans andspecifications indicated or represented by thisdrawing are owned by, and the property of,Aarchitects LLC, were created, evolved anddeveloped for use on and in connection with,the specified project. None of these ideas, designs,arrangements, plans and specifications shall beused by or disclosed to any person, firmor corporation for any purpose whatsoever withoutthe written permission of Aarchitects LLC. Contactwith these plans or specifications shall constituteconclusive evidence of acceptance of theserestrictions. © 2000 Aarchitects LLCwas prepared by me or under my direct supervisionand that I am a duly Licensed Architect under theI hereby certify that this plan, specification, or reportName: Jeffrey P. Agnes AIAlaw of the state of Minnesota.Signature:Reg. No.: 19452jagnes@aarchitectsllc.comA a r c h i t e c t s125 SE Main Street612 296-2933 C612 371-6440 TMinneapolis, MN 55414Suite 100LLCBRIXMOR PROPERTY GROUP98 WEST 66TH STREETSUITE 204RICHFIELD, MN 55423(612) 798-7960www.brixmor.comOF 1107/08/24RICHFIELD HUBEXTERIOR REMODEL100 66TH STREET WESTRICHFIELD, MN 55423BAY A07/08/24PERMIT SETDate:3'-4"3'-4"SCALE:1A-2 EXTERIOR ELEVATION - EAST3/32" = 1'-0"SCALE:2A-2 EXTERIOR ELEVATION - SOUTH3/32" = 1'-0"SCALE:3A-2 EXTERIOR ELEVATION - SOUTHWEST3/32" = 1'-0"15'-2 1/2"(V.I.F.)3'-4"3'-4"16'-0"(V.I.F.)JT.JT.JT.J.T.J.T.JT.JT.JT.JT.JT.JT.JT.JT.JT.(EQ.) D(EQ.) D(EQ.) D(EQ.) B(EQ.) C(EQ.) C(EQ.) B(EQ.) B(EQ.) E(EQ.) E(EQ.) E(EQ.) E(EQ.) E(EQ.) E(EQ.) F(EQ.) F(EQ.) FALIGNALIGN ALIGN ALIGN ALIGN (EQ.) A(EQ.) A(EQ.) A3'-4"3'-4"6'-8"(V.I.F.)(EQ.) A(EQ.) A(EQ.) A19'-10"(V.I.F.)ALIGN ALIGNSCALE:9A-2 EXTERIOR SECTION/ELEVATION - EAST3/32" = 1'-0"SCALE:4A-2 EXTERIOR SECTION/ELEVATION @ MURAL3/32" = 1'-0"SCALE:5A-2 EXTERIOR SECTION/ELEVATION @ MURAL3/32" = 1'-0"XC.JT.XC.JT.XC.JT.XC.JT.JT.XC.JT.JT.JT.JT.JT.XC.JT.40'-0"XC.JT.XC.JT.XC.JT.SCALE:6A-2 EXTERIOR SECTION/ELEVATION - NORTH3/32" = 1'-0"MTL-1EFS-2EFS-3EFS-1EFS-2EFS-4EFS-2CMUMTL-2PT-2MTL-4EFS-3MTL-1FCSMTL-1MTL-31'-0"55'-0"(V.I.F.)1'-0"85'-9"(V.I.F.)EFS-1PT-2PT-2PT-3EFS-1PT-2PT-3PT-2EFS-3FCSFCSMTL-1MTL-3EFS-1PT-2PT-3MTL-1EFS-2EFS-3EFS-1EFS-2EFS-2CMUMTL-2PT-2MTL-4MTL-1EFS-2EFS-3EFS-1EFS-2EFS-2CMUMTL-2PT-2MTL-4EFS-4PT-2MTL-1EFS-2PT-2EFS-4CMUPT-2FCSMTL-1MTL-1EFS-2PT-2EFS-4CMUPT-2PT-2EFS-1PT-3MTL-1EFS-2EFS-3EFS-1EFS-2EFS-2CMUMTL-2PT-2MTL-4EFS-3EFS-2CMUPT-2MTL-1EFS-2CMUPT-2SCALE:7A-2 EXTERIOR SECTION/ELEVATION - NORTH3/32" = 1'-0"MTL-3FCSEFS-3FCSMTL-1MTL-1MTL-1EFS-2EFS-3EFS-1EFS-2MTL-1EFS-2CMUPT-2MTL-4FCS5'-0"MTL-1EFS-2EFS-3EFS-1EFS-2MTL-4MTL-1EFS-2EFS-3EFS-1EFS-2EFS-4EFS-2CMUMTL-2PT-2MTL-4PT-2PT-2PT-2PT-2PT-2PT-2PT-2PT-2PT-2PT-2PT-3MTL-1PT-3EFS-3EFS-1MTL-1EFS-3PT-3SCALE:10A-2 EXTERIOR SECT./ELEV. @ TOWER - WEST3/32" = 1'-0"SCALE:8A-2 EXTERIOR SECT./ELEV. @ TOWER - NORTH3/32" = 1'-0"4"PT-4ALIGN ALIGNPT-4CONSTRUCTION NOTESNO.NOTEITEMTAGSPECIFICATIONSILVER IMPERIAL MARQUEE AWNING W/24" WIDE W-SHAPEDPANELS AND 12" FACIA; 48" PROJECTION; BLACK DOWNSPOUT ANDBRACES W/BLACK SQUARE WALL PLATES. PROVIDE F.T. BLOCKINGAS REQ'D. SUPPORT AND INSTALL PER ALL MANUF. REC'S.FINISH LEGENDITEMTAGSPECIFICATIONPT-1PAINTMANUF: SHERWIN WILLIAMSCOLOR: LIGHT (T.B.D.)(NOTE: 'X' REFERS TO 'EXISTING')PT-2PT-3PAINTPAINTMANUF: SHERWIN WILLIAMSCOLOR: RUST (T.B.D.)MANUF: SHERWIN WILLIAMSCOLOR: BLACK (T.B.D.)EFS-1E.I.F.S.MANUF: DRYVIT OR EQ.COLOR: MATCH PT-1EFS-2E.I.F.S.MANUF: DRYVIT OR EQ.COLOR: MATCH PT-2EFS-3E.I.F.S.MANUF: DRYVIT OR EQ.COLOR: MATCH PT-3PT-4PAINTMANUF: SHERWIN WILLIAMSCOLOR: YELLOW (T.B.D.)EFS-4E.I.F.S.MANUF: DRYVIT OR EQ.COLOR: MATCH PT-4CMUCONCRETEMASONRY UNIT8X8X16 SPLIT-FACE BLOCK TO MATCH EXIST.COLOR: PT-2MTL-1MTL. COPINGMANUF: PREFIN. BREAK MTL. COPINGCOLOR: VARIESMTL-2MTL-3METAL AWNINGSYSTEMMANUF: IMPERIAL MARQUEE OR EQ.COLOR: SILVER CANOPY W/BLACK BRACES ANDDOWNSPOUTMTL-4MTL. ACCENTMANUF: PREFIN. BREAK MTL.COLOR: METALLIC (T.B.D.)STANDING SEAMMTL. ROOFINGSYSTEMMANUF: BERRIDGE OR EQ.COLOR: METALLIC (T.B.D.)FCSFIBER CEMENTSIDINGMANUF.: NICHIHA OR EQ.COLOR: VINTAGEWOOD CEDARNO.NOTE1.-PEEL BACK EXIST. EPDM AND EXTEND NEW EPDM OVER EXISTINGAND PROVIDE TERMINATION BAR W/CAP BEAD AND LAP SEALANT.SEAL WEATHERTIGHT.NEW PTD. (PT-3) DOWNSPOUT CENTERED ON COLUMN/MULLION.PROVIDE MTL. GRATE SIDEWALK TRENCH TO FRONT OF CURB.EXTEND EXIST. RAIN LEADER DRAIN TO 1" MIN. PAST OUTSIDEEDGE OF NEW CMU BASE.REPAIR DAMAGED CMU WALL AS REQ'D. TO MATCH AND BLENDW/EXIST. ADJACENT.HOLD MTL. STUDS 1" OFF OF TOP OF CMU AND PROV. SLIP JT.1" MIN. EIFS W/DRAINAGE SYSTEM (DRYVIT OR EQ.) OVER 5/8" F.T.EXT. PLYWD. SHEATHING OVER MTL. STUD FRAMING. (SEESTRUCT'L.) PROVIDE TYP. DRYVIT SYSTEM DETAILS PER ALLMANUF. REC'S. INCLUDING DRIPS, TERMINATIONS, JOINTS,FLASHING, ETC.. PROVIDE PANZER 20 REINF. MESH BELOW 8 FT.AFF - TYP.PREFIN. BREAK MTL. COPING OVER 3/4" F.T. PLYWD. 1/4" PER FT.MIN. SLOPE. CAULK AND SEAL WEATHERTIGHT.NEW EPDM MEMBRANE OVER 5/8' F.T. EXT. PLYWD. CONTINUE UPAND UNDER NEW COPYING.TREATED WD. BLOCKING AS REQ'D.REMOVE EXIST. EIFS/FINISH BACK TO CMU AS REQ'D. TO INSTALLNEW CONTINUOUS MTL. STUDS. (GC OPTION)FCS OVER AIR BARRIER OVER 5/8" F.T. EXT. PLYWD. SHEATHINGOVER MTL. STUD FRAMING. (SEE STRUCT'L) PROVIDE DETAILS PERALL MANUF. REC'S.CONT. FLASHING AS REQ'D.PEEL BACK EXIST. EPDM AND EXTEND NEW EPDM OVER EXISTINGAND PROVIDE TERMINATION BAR W/CAP BEAD AND LAP SEALANTTO MATCH AND ALIGN W/EXIST. ADJ. SEAL WEATHERTIGHT.MTL. FLASHING TO MATCH AND ALIGN W/EXIST. ADJ. OVER 5/8" F.T.EXT. PLYWD. SHEATHING OVER MTL. STUD FRAMING. (SEESTRUCT'L) PROVIDE DETAILS PER ALL MANUF. REC'S. SEALWEATHERTIGHT.ILLUMINATED CHANNEL LETTER SIGNAGE BY TENANT. G.C. TOPROVIDE POWER, PHOTO CELLS AND FINAL CONNECTION.PAINTED SIGNAGE/MURAL BY TENANT.FLASHING AS REQ'D. OVER EXIST. EPDM AND BEHIND EIFS. SEALWEATHERTIGHT.PREFIN. BREAK MTL. OVER 3/4" F.T. PLYWD. PROVIDE 1/4" PER FT.MIN. SLOPE TO SCUPPER. CAULK AND SEAL WEATHERTIGHT.PREFIN. BREAK MTL. WRAPPED OVER F.T. WD. BLOCKING. CAULKAND SEAL WEATHERTIGHT.PROVIDE CONTINUOUS RECESS FOR 'L4' FIXT. WITH CONTINUOUSELASTOMERIC COVER. VER. REQ'D. WIDTH W/FIXT. MANUF.NEW S.S.M. ROOFING SYSTEM OVER EXIST. UNDERLAYMENT.EXIST. GUTTER TO REMAIN W/SLOPE REVISED TO DRAIN TO NEWDOWNSPOUT. PROV. DETAILS PER ALL MANUF. REC'S. SEALWEATHERTIGHT.NO.NOTEMTL. STUD BOX BEARING ON EXIST. CANOPY ROOF AND EXIST.PARAPET. PROVIDE BRACING/SUPPORT AS REQ'D. (SEE STRUCT'L.)REMOVE EXIST. MTL. UNDERCANOPY SOFFIT AND FIXTURES BACKTO UNDERLAYMENT. EIFS W/DRAINAGE SYSTEM (SEE CONST.NOTE #6) OVER EXIST. UNDERLAYMENT AS ABLE - PROV. NEWUNDERLAYMENT AS REQ'D.CMU BASE TO MATCH AND ALIGN W/EXIST. ADJ. (SEE STRUCT'L.)REINF. CONC. FOOTING & FOUNDATION. (SEE STRUCT'L.)REMOVE ROOFING AS REQ'D. TO INSTALL STRUCT'L. CURB. (SEESTRUCT'L.) REPLACE REMOVED ROOF INSUL. AS ABLE FOR CONT.INSUL. AT DECK.PEEL BACK EXIST. EPDM AND EXTEND BEHIND EIFS. SEALWEATHERTIGHT.INFILL WALL WHERE GLAZING REMOVED W/5/8" TYPE 'X' GWB OVERVAP. BARRIER OVER MTL. STUDS W/FULL-FIT INSUL. PAINT TOMATCH EXIST. ADJACENT.MTL. SCUPPER. (SEE ROOF PLAN)PROVIDE SKIM COAT ONLY THIS SURFACE. INFILL EXIST. JOINTSAND CUT IN NEW JOINTS WHERE SHOWN.REMOVE PORTION OF EXIST. S.S.M. ROOF AS REQ'D. TO PROVIDEOPENING FOR THROUGH-STUDS. (SEE STRUCT'L.) FLASH ANDSEAL WEATHERTIGHT.MTL. STUD BOX BEAM. (SEE STRUCT'L.)STUDS @ EA. END OF BOX BEAM. (SEE STRUCT'L.)A-2EXTERIOR ELEVATIONS Code Requirements / Required Findings Loma Bonita CUP & APUD – 140 W 66th Street Part 1 – Conditional Use Permit: The findings necessary to issue a Conditional Use Permit (CUP) are as follows (547.09, Subd. 6): 1. The proposed use is consistent with the goals, policies, and objectives of the City’s Comprehensive Plan. The proposed use of the property is consistent with the guiding “Mixed Use” designation. The Comprehensive Plan identifies a number of goals and policies related to economic development and support for business and employment growth. The proposal is consistent with these goals and policies. 2. The proposed use is consistent with the purposes of the Zoning Code and the purposes of the zoning district in which the applicant intends to locate the proposed use. The purpose of the Zoning Code is to protect and promote the public health, safety, aesthetics, economic viability, and general welfare of the City. The property is zoned Planned General Business (PC-2), which uses General Commercial (C-2) as the underlying base district. The purpose of the C-2 district is to allow a wide variety of commercial businesses that have an attractive appearance from all sides, are compatible with nearby residential properties and minimize adverse effects. With the recommended conditions of approval, the proposal is consistent with these purposes. 3. The proposed use is consistent with any officially adopted redevelopment plans or urban design guidelines. The Comprehensive Plan includes guiding principles for the redevelopment of the HUB area. Although the proposed CUP is not a tear- down/rebuild type of redevelopment, it incorporates many of the guiding principles, including: connecting to transit, bicycle and pedestrian accommodations, placemaking thru art, a reduction in parking, enhanced building character, and increased landscaping. 4. The proposed use is or will be in compliance with the performance standards specified in Section 544 of this code. The changes proposed with this conditional use permit will bring the property into much greater compliance with performance standards requirements. 5. The proposed use will not have undue adverse impacts on governmental facilities, utilities, services, or existing or proposed improvements. The City’s Public Works and Engineering Departments have reviewed the proposal and do not anticipate any issues. 6. The use will not have undue adverse impacts on the public health, safety, or welfare. The reuse of a former grocery store building as a grocery store use does not pose any threats to public health, safety and welfare. It is believed that adequate provisions are or will be in place to protect public health, safety and welfare. 7. There is a public need for such use at the proposed location. Staff has regularly heard from residents that a grocery store is a desired use at this location. 8. The proposed use meets or will meet all the specific conditions set by this code for the granting of such conditional use permit. Section 534.07 subd.3 does not list any specific conditions for a retail use with over 50,000 square feet of gross floor area; therefore, this requirement is met. Part 2: The following findings are necessary for approval of a PUD Amendment (542.09, Subd. 3): 1. The proposed development conforms to the goals and objectives of the City’s Comprehensive Plan and any applicable redevelopment plans. This requirement is met, as discussed in #1 and #3, in Part 1, above. 2. The proposed development is designed in such a manner as to form a desirable and unified environment within its own boundaries. While the subject site is part of a larger planned area, which includes both the parcel to the east and the parcel to the south, all required cross parking, access and circulation easements are in place. This requirement is met. 3. The development is in substantial conformance with the purpose and intent of the guiding district, and departures from the guiding district regulations are justified by the design of the development. The purpose of the PUD District is to provide the opportunity for innovative and creative development in exchange for flexibility from dimensional requirements of the code. Compliance with the Performance Standards specified in Zoning Code Section 544 have been met, except for: a. Section 544.13, Subd.5.a, an eight foot parking lot setback from the right- of-way is required and no setback is present. b. Section 544.03, Subd.7.a, perimeter parking lot landscaping is required and none is provided, because there is no setback to plant it in. c. Section 544.07, Subd.5, windows or simulated windows are required and an awning and a mural has been provided instead. 4. The development will not create an excessive burden on parks, schools, streets or other public facilities and utilities that serve or area proposed to serve the development. The City’s Public Works, Engineering, and Recreation Departments have reviewed the proposal and do not anticipate any issues. 5. The development will not have undue adverse impacts on neighboring properties. No undue adverse impacts are anticipated related to the proposed improvements. 6. The terms and conditions proposed to maintain the integrity of the plan are sufficient to protect the public interest. The resolution of approval for the conditional use permit and amended PUD/final development plan establishes the terms and conditions of the development, which staff finds will sufficiently protect the public interest. 65TH ST W LYNDALEAVES66TH ST W 64TH ST W PILLSBURY AVENICOLLET AVEGRAND AVE SBLAISDELL AVEWENTWORTH AVEPLEASANT AVEPLEASANT AVEGRAND AVE S64TH ST W HARRIET AVE64 1/2 ST W PLEASANT AVE± Location and Zoning Map 0 280 560140ft I:\GIS\Community Development\Case Maps\2024\140 66 St W - Loma Bonita Loc-Zoning Map.mxd 140 66th Street West Case #:Z24-08 SUBJECTSITE Legend R Low Density Residential MR-2 Multi-Family C-2 General Commercial PC-2 Planned General Commercial PMU Planned Mixed Use ²· ²· ²· ²· ²· ²· ²· ²· ²· ²· ²·²· ²· ²· ²· ²· ²· ²· ²· ²· ²· ²· ²· ²· ²· 71st 1/2 70th 1/2 LOGAN75th VINCENTUPTONTHOMASWASHBURNXERXESI - 494 78th 77th 76th OLIVERNEWTONMORGANSHERIDANRUSSELLQUEENPENN74th 72nd 73th 71st 69th 70th DUPONTKNOXJAMESIRVINGHUMBOLDTGIRARDFREMONTEMERSONCOLFAXBRYANTALDRICHGARFIELDGRANDHARRIETLYNDALE62nd 67th 68th 66th 65th 64th 63rd SHERIDAN1700240031002300WASHBURNXERXESVINCENTUPTONTHOMASRUSSELLQUEENPENNOLIVERNEWTONMORGANLOGANDUPONTHUMBOLDTKNOXJAMESIRVINGGIRARDEMERSONFREMONTLYNDALECOLFAXBRYANTALDRICHGARFIELDHARRIETGRAND69th 71st 72nd 73th 74th 75th 78th 70th 76th 77th COLUMBUS2nd1stSTEVENSPLEASANTPILLSBURYBLAISDELLWENTWORTHNICOLLET3rdCLINTON4th5thPORTLANDOAKLANDPARK10th11th12th13th14thELLIOTCHICAGO15th16th17th18thCEDARBLOOMINGTON62nd 63rd 64th 65th 67th 68th 66thCOLUMBUSPLEASANTPILLSBURYWENTWORTHBLAISDELLSTEVENSNICOLLET1st2nd5thCLINTON3rd4thOAKLANDPARKPORTLAND15th11thCHICAGOELLIOT10th13th12th14thBLOOMINGTON16th17thCEDAR18th 1900800900100011001200130018006005004003002005010012420030032440050062070072080090010001100130014001500160017001800100152419006001200000700140029002800270026002500220021002000300015001600Grocery Store Half Mile Walkshed Map 0 0.55 1.10.275 Miles ¯ Community Development Department Created July 2024 Legend ²·Existing Grocery Store ²· Proposed Loma Bonita Grocery Store Proposed Regional Store Half Mile Walkshed Regional Store Half Mile Walkshed Local Store Half Mile Walkshed City Limits Parks AGENDA SECTION:RESOLUTIONS AGENDA ITEM #9. STAFF REPORT NO. 122 CITY COUNCIL MEETING 9/10/2024 REPORT PREPARED BY:Kumud Verma, Finance Director DEPARTMENT DIRECTOR REVIEW: OTHER DEPARTMENT REVIEW: CITY MANAGER REVIEW: Katie Rodriguez, City Manager 9/5/2024 ITEM FOR COUNCIL CONSIDERATION: Consider 2024 Revised/2025 Proposed Budget resolutions adopting the 2025 preliminary property tax levy, setting truth in taxation hearing date, authorizing budget revisions, authorizing revision of 2024 department budgets and setting City fees for 2025. EXECUTIVE SUMMARY: On August 20, 2024, a special City Council meeting was held for the purpose of presenting and discussing the 2024 Revised/2025 Proposed Budget and 2025 preliminary property tax levy. At this meeting staff presented to the City Council a preliminary gross tax levy of $29,882,318, including a levy for general fund operations of $23,628,800, a debt service levy of $4,101,375, an equipment and technology levy of $1,528,800, and an Economic Development Agency levy of $623,343. The proposed levy increase presented at the August 20, 2024 work session was 5.36%. Since that time, the Public Works budget has been revised and has increased by $50,000. The increase will fund contractual services for street maintenance. This has been funded by decreasing the reserve contingency. Additionally, the Public Safety budget has been revised and has increased by $25,000. The increase will fund one additional community service officer position (the new position is $75,000 but there were other savings found). This is being funded partially from reserve contingencies and partially from additional levy. With these stated changes, staff is now presenting to the City Council a preliminary tax levy of $29,907,569. This includes a levy for general fund operations of $23,654,051, a debt service levy of $4,101,375, an equipment and technology levy of $1,528,800, and an Economic Development Agency levy of $623,343. The proposed levy is an increase of 5.45% over the 2024 levy. Accordingly, the 2025 preliminary gross levy represents a 5.45% increase from the 2024 gross levy. Once the preliminary levy is approved, it may be further reduced at a later City Council meeting, but it legally cannot be increased over the preliminary approved amount. In addition, the City must certify its proposed property tax levy for payable year 2025 to the County Auditor and set a date for its Truth in Taxation public meeting on or before September 30, 2024. The Truth in Taxation public meeting must be held between November 25 and December 30, 2024 and must occur at 6:00 p.m. or later. The City’s Truth in Taxation public meeting is scheduled for Tuesday, November 26, 2024 at 6:30 p.m. At the August 20, 2024, special City Council meeting staff also presented the proposed city fees for 2025. Staff is asking Council to adopt a resolution setting City fees for 2025. A separate transitory ordinance related to building permits, zoning, and other land use permits fees established by Appendix D of the City's Code are included in a separate report as they are set by ordinance, not resolution. RECOMMENDED ACTION: By Motion: Adopt the attached resolutions establishing the 2025 preliminary property tax levy and proposed date for the Truth in Taxation hearing, authorizing budget revisions, authorizing revision of 2024 department budgets, and City fees for 2025. BASIS OF RECOMMENDATION: A.HISTORICAL CONTEXT B.EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS Considering the effects of a levy increase on residents, especially underrepresented residents, help to reduce the unintended consequences increasing the levy may have. Keeping the levy increase low helps minimize effects on residents at the household level. C.POLICIES (resolutions, ordinances, regulations, statutes, exc): The City Charter establishes that at a special budget meeting of the Council on or before September 15, the City Manager must submit to the Council a proposed budget and a budget message in the form and containing the information specified in Section 7.06. Consequently, as required by the Truth in Taxation legislation (MS 275.065) each “taxing authority” must certify its proposed property tax levy for payable year 2024 to the County Auditor on or before September 30, 2024. “Taxing authority” includes all counties, all school districts, all cities regardless of population, all towns, special taxing districts. No local units of government are exempted from this requirement. In addition, each “taxing authority” with a population of 500 or more, must certify to their County Auditor the date that has been selected for the Truth in Taxation public meeting by September 30, 2024. This Truth in Taxation public meeting must be held between November 25 and December 30, 2024 and must occur at 6:00 p.m. or later. D.CRITICAL TIMING ISSUES: Along with the 2024 Revised/2025 Proposed budget and preliminary property tax levy, City staff is also recommending a date for this year’s Truth in Taxation public meeting. It is recommended that this year’s meeting be set for 6:30 p.m. Tuesday, November 26, 2024. All official action concerning the preliminary tax levy and setting dates for the Truth in Taxation hearings must be concluded before September 30, 2024. E.FINANCIAL IMPACT: The preliminary gross levy for taxes payable 2025 as presented is $29,907,569. The City’s tax capacity rate is anticipated to increase from 52.13% to 55.68%. Included in the 2025 preliminary gross levy is a levy to fund the purchase of rolling stock and technology equipment of $1,528,800 and the levy to fund the Economic Development Authority of $623,343. A final resolution for consideration authorizes the revision of the 2024 budget to conform to the most recent 2024 revenue and expenditure projections. F.LEGAL CONSIDERATION: N/A ALTERNATIVE RECOMMENDATION(S): The City Council could adopt an alternate 2025 preliminary property tax levy or 2024 Revised/2025 Proposed budget or select other allowable Truth in Taxation hearing dates. PRINCIPAL PARTIES EXPECTED AT MEETING: None ATTACHMENTS: Description Type Proposed Budget and Tax Levy Resolution Cover Memo Authorizing Budget Revision Resolution Cover Memo Authorizing Revision of 2024 Budget of Various Departments Resolution Letter Resolution Establishing 2025 License, Permit, and Miscellaneous Fees Cover Memo RESOLUTION NO. RESOLUTION ADOPTING A PROPOSED BUDGET AND TAX LEVY FOR THE YEAR 2025 WHEREAS, the Minnesota Truth in Taxation law provides for a proposed tax levy to be certified to the County Auditor by September 30, 2024 and then recertified before December 30, 2024. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield, Minnesota as follows: 1. The budget for the City of Richfield for the year 2025 is hereby approved and adopted with appropriations for each of the departments to be as follows: 2. The estimated gross revenue of the City of Richfield from all sources, including general ad valorem tax levies as hereinafter set forth for the year 2025 which are more fully detailed in the City Manager’s official copy of the 2025 budget, are hereby found and determined to be as follows: TOTAL GENERAL FUND $32,729,960 3. There is hereby levied upon all taxable property in the City of Richfield a direct ad valorem tax in the year 2024, payable in 2025 for the following purposes and in the following amounts: PURPOSE AMOUNT General Fund1 $23,654,0512 Equipment 1,528,800 Economic Development Authority 623,343 Debt Service 4,101,375 General Fund Legislative/Executive 1,314,929 Administrative Services 1,304,174 Finance 678,020 Public Safety 12,824,640 Fire Services 6,188,977 Community Development 1,865,120 Public Works 5,303,150 Recreation Services 2,474,590 Transfers Out 352,250 Fund Balance Reserve 424,110 TOTAL GENERAL FUND 32,729,960$ 1 Provision has been made in the General Fund for the payment of the City’s contributory share to Public Employees’ Retirement Association. 2 General Fund Levy includes all fiscal disparities distribution amounts. 4. The debt service tax levy as established in the bond documents for the G.O. Street Reconstruction Bonds, Series 2015A will be reduced from $632,369.07 to $279,450.94 due to the utilization of gas and electric franchise fees. 5. The debt service tax levy as established in the bond documents for the G.O. Street Reconstruction Bonds, Series 2018A will be reduced from $697,856.25 to $284,288 due to the utilization of gas and electric franchise fees. 6. The debt service tax levy as established in the bond documents for the G.O. Bonds, Series 2019A shall be $378,420. 7. The debt service tax levy as established in the bond documents for the G.O. Bonds, Series 2022A shall be $427,770. 8. The budget for the Housing and Redevelopment Authority of Richfield for the year 2025 is hereby ratified and approved. There is hereby levied upon all taxable property in the City of Richfield a direct ad valorem tax in the year 2024, payable in 2025 for the following purposes: PURPOSE AMOUNT Housing and Redevelopment Authority $720,610 9. A certified copy of this resolution shall be transmitted to the County Auditor. 10. The Truth in Taxation public meeting shall be set for 6:30 p.m. November 26, 2024. Adopted by the City Council of the City of Richfield, Minnesota this 10th day of September 2024. Mary Supple, Mayor ATTEST: Michelle Friedrich, City Clerk RESOLUTION NO. RESOLUTION AUTHORIZING BUDGET REVISIONS WHEREAS, the City Charter and Minnesota Statutes provide for a process for adopting an annual budget and tax levy; and WHEREAS, the City Charter provides certain authority for the City Manager and/or City Council to revise the annual budget; and WHEREAS, it would be beneficial to restate such authority with the adoption of the budget. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield, Minnesota as follows: 1. The City Manager may increase the budget by City Council action provided that unbudgeted receipts will be available to equal or exceed the increased expenditures. 2. The City Manager may authorize transfers between divisions within a department providing the transfers do not increase or decrease the department or total budget. 3. The City Manager may transfer budgeted amounts between departments only with the approval of the City Council. Adopted by the City Council of the City of Richfield, Minnesota this 10th day of September 2024. Mary Supple, Mayor ATTEST: Michelle Friedrich, City Clerk RESOLUTION NO. RESOLUTION AUTHORIZING REVISION OF 2024 BUDGET OF VARIOUS DEPARTMENTS WHEREAS, Resolution No. 12123 appropriated funds for personal services, other expenses and capital outlays for each department of the City for the year of 2024; and WHEREAS, The City Charter, Chapter 7, Section 7.09, gives the Council authority to transfer unencumbered appropriation balances from one department to another within the same fund at the request of the City Manager; and WHEREAS, The City Manager has requested a revision of the 2024 budget appropriations in accordance with Charter provisions and as detailed in the Proposed 2025 budget document. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield, Minnesota as follows: 1. That the 2024 appropriations for each department of the General Fund be amended to establish the following totals: 2. Estimated 2024 gross revenue of the City of Richfield from all sources, as the same are more fully detailed in the City Manager’s official copy of the proposed 2025 budget, are hereby revised as follows: INCREASE $313,885 3. That the City Manager and the Finance Director bring into effect the provisions of this resolution. Adopted by the City Council of the City of Richfield, Minnesota this 10th day of September 2024. Mary Supple, Mayor ATTEST: ________________________ Michelle Friedrich, City Clerk General Fund Legislative/Executive 1,224,207 Administrative Services 1,298,424 Finance 1,398,838 Public Safety 11,769,553 Fire Services 5,744,315 Community Development 1,810,320 Public Works 5,219,890 Recreation Services 2,325,548 Transfers Out 330,000 Fund Balance Reserve 92,000 TOTAL GENERAL FUND 31,213,095$ INCREASE 313,885$ City of Richfield September 10,2024 County of Hennepin State of Minnesota RESOLUTION NO. 2024-XXXXX Motion: Second: RESOLUTION ESTABLISHING 2024 LICENSE, PERMIT AND MISCELLANEOUS FEES PURSUANT TO THE PROVISIONS OF APPENDIX D OF THE ORDINANCE CODE OF THE CITY OF RICHFIELD RESCINDING RESOLUTION NO. 12127 BE IT RESOLVED by the City Council of the City of Richfield, Minnesota as follows: Section 1. Establishing Fees. A. License, permit and miscellaneous fees required under the ordinances of the City of Richfield shall be as stated in the sections of this resolution. B. A period of no less than 30 days will be allowed for the remittance of City Business license renewal fees contained in Sections 5, 6, 7, 8 and 9 of this resolution. C. A 10% administrative surcharge will be assessed upon all renewals contained in Section 5, 6, 7, 8 and 9 of the resolution if not received by the City on or before December 31st of each year. The 10% surcharge will be based upon the cost of the license. D. Nothing in this section shall be deemed to require the City to issue or renew any license for which the fee has not been paid in a timely manner. Section 2. Construction and Related License Fees. Type of Permit or License Section Requiring Description Fee (1) Heating and Ventilating Installer 400.07 1 Year $80.00 (2) Sign Installer 416.01—416.13 1 Year $80.00 (3) Electrical Installer 400.03—400.09 State License Required (4) Plumber 400.03—400.09 State License Required (5) Well Driller 620 State License Required Section 3. Public Works Fees. Type of Permit or License Section Requiring Description Fee (1) Benches 805.01— 805.27 First Year $80.00 Renewal $30.00 (2) Boulevard feature Permit 811.07 a) Application to place a privately owned feature in the boulevard $30.00 City of Richfield September 10,2024 County of Hennepin State of Minnesota b) If applied for after installation of feature has begun $60.00 (3) Excavation in Public Right of way 800.01— 800.15 a) For each transverse excavation and each 500 feet or portion thereof longitudinal excavation and for each 500 feet of curb and gutter or portion thereof installed or driveway apron installed, except when survey and grade stakes are set by City $200.00 $0.20 per foot > 500' b) If applied for after excavation has begun $400.00 c) For each pothole $20.00 (4) Pole Attachment /Small Cell Facilities Permit 802 a) Application to attach or collocate pole attachment on City facilities in the City Right- of-way $500.00 /≤ 5 units $100.00/unit thereafter b) Application to construct/install new small cell pole w/ attachment in the City Right- of- way $1,000/unit c) Annual rental fee per attachment to collocate on the city structure, per agreement Up to $150/unit d) Annual maintenance fee associated with the collocation, per agreement Up to $25/unit Monthly Electrical Fees a) Radio node less than or equal to 100 maximum watts b) Radio node over 100 maximum watts c) The actual cost of electricity $73.00/node $182.00/node (5) Forestry Permit 810 Applies only to trees on City property and public ROW $50100.00 (6) Seasonal Load Limit Exemption a) Per load $25.00 b) If applied for after delivery $50.00 (7) Obstruction Permit 802.17 (a) Short term, temporary single lane closure of less than four hours No fee (b) Lane closures longer than four hours' duration (or if between 7:00 a.m. and 9:00 a.m. or between 3:30 p.m. and 6:00 p.m.) Arterial Day (per block or portion thereof) $60.00 Full Closure (per block or portion thereof) $300.00 Collector Day (per block or portion thereof) $30.00 Full Closure (per block or portion thereof) $75.00 Local/Residential City of Richfield September 10,2024 County of Hennepin State of Minnesota Day (per block or portion thereof) $15.00 Full Closure (per block or portion thereof) $45.00 Sidewalk/Bike Lane Day $30.00 Parking Lane Day (per block or portion thereof) 7.50 Full Closure (per block or portion thereof) 31.25 If applied for after obstruction closure has begun (c) Short term, temporary single lane closure less than four hours No fee (d) Lane closures longer than four hours' duration (or if between 7:00 a.m. and 9:00 a.m. or between 3:30 p.m. and 6:00 p.m.) Arterial Day (per block or portion thereof) $120.00 Full Closure (per block or portion thereof) $300.00 Collector Day (per block or portion thereof) $60.00 Full Closure (per block or portion thereof) $150.00 Local/Residential Day (per block or portion thereof) $30.00 Full Closure (per block or portion thereof) $90.00 Sidewalk/Bike Lane Day $60.00 Parking Lane Day (per block or portion thereof) $15.00 Full Closure (per block or portion thereof) $62.50 If the closures are not removed by the permitted completion date, then additional Days will be charged at double the rate (8) Noise Ordinance Exemption 930.35 (a) With conditions added as required $50.00 (b) If applied for after violation $100.00 (9) Certification Charge 705.03— 705.21 All delinquent accounts $50.00 (10) NSF Check Charge $4030.00 (11) Utility Services Sanitary Sewer 700.05 All land uses City of Richfield September 10,2024 County of Hennepin State of Minnesota New Service $125.00 Repair $125.00 Disconnect $125.00 Replacement $125.00 Sewer Service Line Televising $100.00 Water Service 715.01 All land uses $125.00 New Service $125.00 Repair $125.00 Disconnect $125.00 Replacement Turn on/off $5075.00 Meter Installation $75.00 Private Hydrant $75.00 Hydrant Meter Fee $5075.00 Storm Sewer 720 All land uses New Service $125.00 Repair $125.00 Disconnect $125.00 Replacement $125.00 (12) Street Light Banners 855.05 First time applicant to hang street light banners within a district of for an event. $50.00 Per street light banner installation (no existing hardware) $20.00 Per street light banner installation if supporting hardware exists on the light pole. $10.00 Per street light banner removal $10.00 Permit Renewal: Annually for both decorative and event banners, unless banner design has changed, then full application fee is charged. If annual renewal is not completed, the permittee risks removal of all banners at the permittee's expense. $10.00 (13) Utilities Special Charges 715.03 Transaction fee for utility accounts paying by credit card (excludes ACH withdrawals, checks, or debit card payments) 2.95% of utility bill or $1.95, whichever is greater Section 4. Fire Services Fees. City of Richfield September 10,2024 County of Hennepin State of Minnesota Type of Permit or License Section Requiring Description Fee (1) Fire Prevention Code 400.21— 400.29 For initial fee required under code Per Year $80100.00 For each additional fee required under code $20.2500 Penalty If not renewed within 2 months of notification Per Year $75.00 (2) Daycare/Adult Foster Care Facility Inspection $80100.00 (3) Reimbursement Fee for Fire/Rescue Unit Per Hour $375400.0 0 (4) Sale of Consumer Fireworks 1131 (a) License per location selling only consumer fireworks Per Year $350.00 (b) License per location of each other retail seller Per Year $100.00 (5) Display of Commercial Fireworks 5608 Licensed per display by qualified vendor $350.00 Section 5. Amusement and Recreation Licenses and Permits. Type of Permit or License Section Requiring Description Fee (1) Arcade 1105 1 Year $667687.00 (2) Amusement Device 1100.01 (a) Mechanical Amusement Device (Pinball) 1 Year $1516.00 (b) Mechanical Music Box 1 Year $1516.00 (c) Video Games 1 Year $1516.00 (3) Lawful Gambling 1100.13 Bingo, Tipboard, Paddle Wheel, Raffle, Pull Tabs State Fee Investigation Fee $250.00 (4) Itinerant Place of Amusement 1100.05— 1100.11 1 Day $359370.00 (5) Public Dance 1110.03 For each day dances are held: 1 month: $45.00 $5254.00 No fee for locations holding tavern licenses. (6) General Amusement 1100.03 (a) Billiard, Pool or Pigeonhole table (each) 1 Year $1516.00 City of Richfield September 10,2024 County of Hennepin State of Minnesota 1. Coin operated 1 Year $1516.00 (b) Bowling Alley (per lane) 1 Year $5254.00 (c) Circus 1 Year $202208.00 (d) Dance Hall 1 Day $202208.00 (e) Golf 1. Miniature 1 Year $4748.00 2. Driving Tee 1 Year $4748.00 (f) Mountback 1 Day $193199.00 (g) Rides, mechanical/animal of any kind (ea) 1 Year $1516.00 (h) Shows, any kind 1 Day $193199.00 (i) Shuffleboard (each lane) 1 Year $1617.00 (j) Other games 1 Day $1516.00 (7) Musical Concert 1110.01 Per event $5860.00 (8) Theatre Cinema 1120 1 Year $288280.00 Plus a notice publication fee $78.00 (9) Roller Rink 1115 1 Year or portion thereof $280288.00 (10) Commercial Adult- Oriented Enterprises 605 1 Year $3,3343,434.0 0 Investigation fee 1 Year $3,3343,434.0 0 (11) Masseur/Masseuse 605 Certificate fee 1 Year $109112.00 Investigation fee 1 Year $272280.00 (12) Public Baths 610 1 Year $3,8613,977.0 0 Investigation fee (actual cost minimum) $3,8613,977.0 0 (13) Fortune Teller and related trade 1130.05— 1130.07 1 Day 1 Week 1 Month 1 Year $223230.00 $665685.00 $1,3291,369.0 0 $2,2242,291.0 0 (14) Adult Establishments 1196 Annual license 1 Year $3,3343,434.0 0 Investigation fee (new license) $3,3343,434.0 0 Section 6. Animal Licenses and Permits. City of Richfield September 10,2024 County of Hennepin State of Minnesota Type of Permit or License Section Requiring Description Fee (1) Animals 905.01— 905.29 (a) Animals (Spayed or Neutered) with option to purchase a multi-year license 1 Year $15.00 (b) Animals (Not Spayed or Neutered) 1 Year $25.00 (c) Duplicate Animal License $7.00 (d) Late Penalty $10.00 905.31— 905.33 (e) Commercial Kennel 1 Year $242249.0 0 (f) Residential Kennel 1 Year $115118.0 0 (g) Veterinary $242249.0 0 905.37— 905.39 (h) Pigeons 1 Year $4344.00 905.41 (i) Non-domestic Animals (Temporary Permit) $3031.00 905.01— 905.29 (j) Impounding (each animal) 1st time $77.00 2nd Time $138.00 3rd time (each impound after) $207.00 (k) Dangerous dog registration fee State Statute 347.51) $500.00 906.13 (I) Beekeeping Registration fee $3031.00 Section 7. Vehicle and Transportation License and Permit Fees. Type of Permit or License Section Requiring Description Fee (1) Aircraft 1340 1 Day $5860.00 (2) Garbage and Refuse Collection 601.01— 601.33 Commercial and Residential First vehicle 1 Year $333343.0 0 Each additional vehicle 1 Year $7173.00 (3) Motor Vehicle Dealer 1155 Per place of business 1 Year $498513.0 0 Each additional place of business 1 Year $188194.0 0 (4) Motor Bicycle Business 1160 Per place of business 1 Year $289298.0 0 Per place of business to sell, rent or lease 1 Year $133137.0 0 City of Richfield September 10,2024 County of Hennepin State of Minnesota (5) Sound Truck 1165 Per vehicle 1 Year $289298.0 0 Per vehicle 1 Day $4344.00 (6) Taxicab 1170 First vehicle or auto livery 1 Year $721743.0 0 Each additional vehicle or auto livery operated at any time within license period 1 Year $8891.00 (7) Taxicab Driver 1175 1 Year $6870.00 (8) Rental or Utility Trailers and Trucks 1185 Each place of business 1 Year $133137.0 0 Section 8. Commercial Business and Trade Licenses and Permits. Type of Permit or License Section Requiring Description Fee (1) Firearms Dealer 920.01— 920.05 1 Year $2,2242,291.0 0 (2) Food Establishments 617 (A) Type I Establishment, a large 1 year high-risk food establishment serving on average 500 or more meals per day; having 175 or more seats; or having 500 or more customers per day (1) Food service establishment $9981,028.00 (2) School, kindergarten through grade 12 $733755.00 (3) Daycare Center or Preschool $733755.00 (B) Type II Establishment, a small high-risk food establishment serving on average fewer than 500 meals per day; having fewer than 175 seats; or having fewer than 500 customers per day (1) Food service establishment $857883.00 (2) School, kindergarten through grade 12 $571588.00 (3) Daycare Center or Preschool $571588.00 (C) Type III Establishment, a medium risk food establishment serving mainly non- time/temperature control for safety (TCS) foods and TCS foods prepared elsewhere and only heated or held cold onsite; or serving or retailing foods such as pizza carryout or delivery, requiring handling followed by heat treatment (1) Food service establishment $733755.00 (2) School, kindergarten through grade 12 $364375.00 (3) Daycare Center or Preschool $364375.00 City of Richfield September 10,2024 County of Hennepin State of Minnesota (D) Type IV Establishment, a food establishment with minimal food handling such as preparing coffee, hot dogs, blended or mixed drinks, packaged foods customers heat on-site, continental breakfasts, unpackaged baked goods made elsewhere (1) Food service establishment $478492.00 (2) School, kindergarten through grade 12 $221228.00 (3) Daycare Center or Preschool $221228.00 (E) Type V Establishment, a food establishment with non-TCS food or food products sold in the original packaging (1) Food service establishment $294303.00 (2) School, kindergarten through grade 12 $183188.00 (3) Daycare Center or Preschool $183188.00 (F) Supplemental Facility (1) High Supplemental Facility (like Type I or II) $183188.00 (2) Medium Supplemental Facility (like Type III) $146150.00 (3) Catering Supplemental Facility (for Food Catering Vehicle(s) and equipment) $221228.00 (4) Low Supplemental Facility (like Type IV or V) $109112.00 (G) Temporary Food Establishment (1) Complex Temporary 1 to 3 days (like Type I or II) $183188.00 (2) Complex Temporary 4 to 21 days (like Type I or II) $331341.00 (3) Simple Temporary 1 to 3 days (like Type III, IV or V) $7678.00 (4) Simple Temporary 4 to 21 days (like Type III, IV or V) $177182.00 (5) Temporary Food Multi-Vendor $927955.00 (H) Farmer's Market Stand (stands not exempted from licensing in Minnesota Statue Chapter 28A) $221228.00 (3) Automobile Washing Establishment 1125 Per calendar Year or fraction thereof $221228.00 (4) Cesspools 925.03 Permit fee for opening cesspool or dumping contents of each cesspool into City sewer $3435.00 (5) Incinerator 601.29— 601.31 1 Year $6668.00 City of Richfield September 10,2024 County of Hennepin State of Minnesota (6) Tobacco 1146.01(M S 461.12) Retail Sale and Distribution - License issued on calendar Year (cigarette vending machines prohibited) (Bill No. 1998-19) $557574.00 (7) Transient Merchant 1181.01— 1181.09 1 Day $142146.00 (8) Wagon Peddler 1181 1 Year $334344.00 (9) State hawker or Peddler license 1181 6 month/per person covered $8284.00 (10) Canvasser or Solicitor 1181 6 month/per person covered $8284.00 (11) Christmas Tree Sale 1130.03 1 Year $181186.00 (12) Lodging Establishments 618 (A) Hotel/Motel $308317.00 (1) Each Guestroom $2526.00 (13) Outdoor Merchandising 1135 Permit $141145.00 (14) Storage Enclosure 1135 Per Enclosure $120124.00 (15) Pawnbroker 1187 (a) Pawnbroker 1 Year $5,7955,969.0 0 (b) Owner investigation fee 1 Year (nonrefundable) $3,3313,431.0 0 (c) Manager investigation fee 1 Year (nonrefundable) $1,2051,241.0 0 (d) Employee investigation fee 1 Year (nonrefundable) $115118.00 (e) Transaction fee - per transaction $2.00 (16) Secondhand Goods Dealer 1186 (a) Secondhand Goods Dealer 1 Year $635654.00 (b) Initial investigation fee (nonrefundable) actual costs in excess of above with total not exceeding $2,4382,511.0 0 Applicant shall deposit $1,200.00 with Licensing Clerk along with application. Amount in excess of actual application costs shall be refunded. (17) Auto Detailing Establishment 1195.01 1 Year $495510.00 (18) Tattoo, Body Piercing, Body Painting or Body Branding 630 (a) Tattoo, body piercing, body painting or body branding 1 Year $1,1091,142.0 0 (b) Initial investigation fee (nonrefundable) $1,0461,077.0 0 1 Year City of Richfield September 10,2024 County of Hennepin State of Minnesota (19) Temporary Tattoo, Body Piercing, Body Branding and Body painting events 630 Per booth $6668.00 (20) Massage Therapy Enterprise License (Business license) 1188 Annual license 1 Year $1,0771,109.0 0 Investigation fee (new license) $1,0771,109.0 0 Massage Therapist (Individual License) Annual license 1 Year $106109.00 Investigation fee (new license) $109112.00 Temporary Massage Therapist License Per temporary location $222229.00 (21) Public Swimming Pools 619 (A) Indoor (1) First pool $294303.00 (2) Each additional pool $146150.00 (B) Outdoor (1) First pool $294303.00 (2) Each additional pool $146150.00 (C) School, K through grade 12, pools (1) First pool $190196.00 (2) Each additional pool $106109.00 (D) Pool opening reinspection fee, operator makes an appointment for an inspection, but the pool is not ready to open $100103.00 (22) Motion pictures and commercial photography permit 1197 Per event Photography Motion picture (based on application) $5052.00 $200206.00 (23) Adult-Use Cannabis TBD Cannabis Retailer Cannabis Renewal (The initial registration fee shall include the fee for initial registration and the first annual renewal. Any renewal fee imposed by the local unit of government shall be charged at the time of the second renewal and each subsequent annual renewal thereafter.) $500.00 $1,000.00 Low-Potency Hemp Edible TBD Lower Potency Hemp Retailer Registration Annual Renewal $125.00 $125.00 City of Richfield September 10,2024 County of Hennepin State of Minnesota City of Richfield September 10,2024 County of Hennepin State of Minnesota PLAN REVIEW FEE FOR FOOD, THERAPEUTIC MASSAGE AND LODGING PERCENTAGE OF FACILITY INVOLVED WILL BE DETERMINED BY STAFF Descriptions: Type I Establishment, a large high-risk food establishment serving on average 500 or more meals per day; having 175 or more seats; or having 500 or more customers per day. Type II Establishment, a small high-risk food establishment serving on average fewer than 500 meals per day; having fewer than 175 seats; or having fewer than 500 customers per day. Type III Establishment, a medium risk food establishment serving mainly non- time/temperature control for safety (TCS) foods and TCS foods prepared elsewhere and only heated or held cold onsite; or serving or retailing foods such as pizza carryout or delivery, requiring handling followed by heat treatment. Type IV Establishment, a food establishment with minimal food handling such as preparing coffee, hot dogs, blended mixed drinks, packaged foods customers heat onsite, continental breakfasts, unpackaged baked goods made elsewhere. Type V Establishment, a food establishment with non-TCS food or food products sold in the original packaging. Environmental plan review—includes the physical remodeling, updating, equipment replacement, equipment additions and the general overall review of all plans/work. This also includes all new development projects. New Construction and/or Major Remodel (over 50% of facility involved) Extensive Remodel (25—50% of facility) Minor Remodel 0—24% of facility) Non-remodel approval consultation ($5,000 or less in costs) Type I $35423,648.00 $18471,902.0 0 $9971,027.00 $170175.00 Type II $24402,513.00 $13371,377.0 0 $743758.00 $170175.00 Type III $13381,378.00 $744766.00 $444457.00 $170175.00 Type IV $655675.00 $255263.00 $129133.00 No fee Type V New project or change of owner - $155175.00 Minor remodel - permit but no plan check fee Therapeutic Massage $170.00 $170175.00 $170175.00 $170175.00 City of Richfield September 10,2024 County of Hennepin State of Minnesota Section 9. Liquor and Related License and Permit Fees. Type of Permit or License Section Requiring Description Fee (1) 3.2 Malt Liquor 1202.05 (a) On-Sale 1 Year $912.00 (b) Tavern (dance) 1 Year $745.00 (c) Wholesale 1 Year $44.00 (d) Growler (Micro Brewery Off-Sale Malt Liquor) 1 Year $175.00 (e) Off-Sale 1 Year $264.00 (f) Club (Bottle Club) 1 Year $603.00 (g) Temporary per event $115191.00 (2) Liquor 1202.05 (a) On-Sale 1 Year $12,029.00 (b) Sunday (Fee set by state law) 1 Year $200.00 (c) Wine 1 Year $1,325.00 (d) Taproom (Micro Brew On-Sale Malt Liquor) 1 Year $700.00 (e) Cocktail Room (Micro Distillery On Sale) 1 Year $800.00 (f) Micro Distillery Off Sale 1 Year $600.00 (g) Veterans' Organization (Ex-Sunday) 1 Year $863.00 (h) Temporary per event $185191.00 (3) Employee License On-Sale Liquor Establishments 1208.01 Effective 10/1/95 all licenses issued shall be valid for a period of two years from the date of initial application $37.00 (4) Investigation Fee 1202.01— 1202.21 (a) On-Sale liquor including Veterans' Organization $824.00 and Each person shown on application $247.00 Each additional investigation for each person not listed on original or renewal application (excluding Veteran's Organizations) $247.00 1202.11 (b) Wine, Taproom, Brewpub, Distillery, and $824.00 Each person shown on application $247.00 Each additional investigation for each person not listed on original or renewal application $247.00 1202.11 Investigation of substitute manager $103.00 Section 10. Housing Inspection and Rental License Fees. City of Richfield September 10,2024 County of Hennepin State of Minnesota Type of Permit or License Section Requiring Description Fee (1) License for Apartment Houses and Rental Homes (includes up to two inspections) 407 (a) Apartment House, 1 Year $150.00 Each unit $15.00 (b) Rental Home - single family dwelling, 1 Year $150.00 (c) Duplexes/double bungalows/townhouses First unit, 1 Year $150.00 Each additional rental unit, 1 Year $85.00 (d) Late Fee—To be cCharged each month the license is late $100 or 25% of the annual license fee, whichever is greater with a minimum monthly fee of $50.00, up to and a maximum monthly fee of $500.00, charged each month the fee is late (e) License Transfer Fee $50.00 (f) Reinstatement of suspended license 100% of license fee (minimum $80.00) (g) Reinstatement of Revoked license 200% of license fee (h) Re-Inspection Fee (for inspections over the first two) 1. multi-family 3rd inspection: $100.00 4th inspection: $200.00 5th inspection: $400.00 6th inspection and more: $800.00 Up to $3,000, maximum 2. single family & duplex 3rd inspection: $50.00 4th inspection: $100.00 5th inspection: $200.00 6th inspection and more: $400.00 Up to $1,500, maximum Re-inspection fees shall be payable at the time of license renewal and no City of Richfield September 10,2024 County of Hennepin State of Minnesota renewal license shall be issued unless all inspection fees are paid (i) Provisional license for apartment house Includes first unit $300.00 Each additional unit $30.00 Provisional license for Rental Home— single family dwelling 1 Year $300.00 Provisional license for duplex First unit $300.00 Each additional unit $170.00 (j) Investigation fee for operating a rental property without a license $500.00 (2) Certificate of Housing maintenance Compliance (includes up to two inspections) 408 Single family home $150.00 2-family home $230.00 Condominium $100.00 Re-inspection Fee 3rd inspection $50.00 4th inspection $100.00 5th inspection $200.00 6th inspection and more $400.00 Up to $1,500, maximum Fee to process cash escrow agreement $100.00 Fee to process Agreement to Comply $50100.00 (3) Richfield Apartment Managers' Association Fee 407 Fee to support RAMA services $1.50/unit (4) Permit Fee for Rooming House 406 1 Year $170.00 Section 11. Miscellaneous Fees. Type of Permit or License Section Requiring Description Fee (1) Permit to reside 1190 In motel for more than six Months $17.00 City of Richfield September 10,2024 County of Hennepin State of Minnesota (2) Permit to Carry a Gun Permit Issued By County (3) False Alarms (billable) (a) in excess of 2 for calendar Year $100.00 (b) in excess of 10 for calendar Year $200.00 (c) in excess of 20 for calendar Year $300.00 (4) Nuisance Conduct Fee 925 Third call to a property for nuisance conduct within a 365-day period $400.00 (5) Copying Services Provided Flat rate (per page) $.25 Special rate (a) Black & White Photocopy rate 8.5 x 11 (per side) $.25 8.5 x 14 (per side) $.25 MN Statute 13.03C 11 x 17 (each) $.50 24 x 36 (each) $2.50 X-large $2.50 Color Photocopy rate 8.5 x 11 (per side) $1.00 8.5 x 14 (per side) $2.00 11 x 17 (each) $4.00 24 x 36 (each) $18.00 X-large $3.00/sq. ft. (b) Labor hourly wage & 33% (c) Postage prevailing rate (d) Fax per page $.50 (e) CD of meeting (per CD) $5.00 (f) DVD of meeting (per DVD) $15.00 (g) Electronic copies (CD or disk) $5.00 (h) As builts (per image) $.50 (6) Notary Fee Fee Set By State (7) Candidate Filing Fee City Charter 4.04 $25.00 (8) Photo Fee Includes 2 photos $16.00 including tax (9) Assessing Fees Special Special Assessment Searches City of Richfield September 10,2024 County of Hennepin State of Minnesota - One free property identification number (PID) search per Day - if more than one search per Day (per search) $3.00 Special Assessment Search Report - per PID $15.00 Creation of New or Special Report - Fees to be based on time and materials to create report - Minimum Fee $25.00 Review of Comparable Property Records Residential Field Card Report $.25 - for up to five comparable properties (per copy) Commercial/Industrial/Apartment Field (10) Domestic Partnership 120 Registration $30.00 (11) Certified copy of various documents To certify documents i.e. resolutions, ordinances, minutes, registration forms, etc. on file (per copy) $5.00 (12) Vacant Building Registration Fee 925 Single Family Home or Duplex – Vacant one to two years $600.00 Single Family Home or Duplex – Vacant three to four years $800.00 Single Family Home or Duplex – Vacant five or more years $1,000.00 Any other type of property of less than 20,000 square feet in building size AND less than 1 acres of lot size - Vacant less than one Year $600618.00 Any other type of property of less than 20,000 square feet in building size AND less than 1 acres of lot size - Vacant one Year or longer $1,1001,133.0 0 Any other type of property larger than 20,000 square feet in building size OR more than 1 acres of lot size - Vacant less than one Year $1,3501,390.0 0 Any other type of property larger than 20,000 square feet in building size OR more than 1 acres of lot size - Vacant one year or longer $2,6002,678.0 0 (13) Violation of Conversion Therapy Ban 635 Providing conversion therapy to a minor or vulnerable adult $1,000.00 per instance Section 12. Room and Park Shelter Rental Fees. City of Richfield September 10,2024 County of Hennepin State of Minnesota Location or Type Description Fee Classification Fee Richfield Municipal Center Bartholomew Room Civic and non-profit groups and governmental agencies $75.00/Hr (2-hour minimum) Resident groups $100.00/Hr (2-hour minimum) Non-Resident and other groups $500.00/4-hour block Heredia Room Civic and non-profit groups and governmental agencies $69.00/Hr (2-hour minimum) Resident groups $82.00/Hr (2-hour minimum) Non-Resident and other groups $400.00/4-hour block Fred Babcock Room Civic and non-profit groups and governmental agencies $69.00/Hr (2-hour minimum) Resident groups $82.00/Hr (2-hour minimum) Richfield Community Center Augsburg, Fireside, Nicollet, or Ruth Johnson Rooms Non-Profit Private $42.00/Hr $60.00/Hr Combined Nicollet/Augsburg or Richfield Rooms Non-Profit Private $69.00/Hr $95.00/Hr Kitchen All Renters $38.00/booking $80.00/4-hour block, $15.00/additional hour Free with combined Nicollet/Augsburg room rental Wood Lake Nature Center Auditorium Non-Profit Private $45.00/Hr $65.00/Hr Park Shelters Wood Lake Nature Center - Emily Day Pavilion $82.00/4-hour block Fairwood, Monroe, Augsburg Park Shelters $44.00/4-hour block Sheridan Park Shelter $62.00/4-hour block Veterans Park Shelter Monday-Friday $115 per section/3-hr block City of Richfield September 10,2024 County of Hennepin State of Minnesota Saturday & Sunday $135 per section/3-hr block Athletic Fields Donaldson Baseball Fields Resident Non-Resident $54.00/hr $270.00/day (first 8 hrs) $66.00/hr $340.00/day (first 8 hrs) Roosevelt Baseball Fields Resident Non-Resident $44.00/hr $260.00/day (first 8 hrs) $56.00/hr $320.00/day (first 8 hrs) Lincoln and Taft Premium Softball Fields Resident Non-Resident $30.00/hr $120.00/day (first 8 hrs) $40.00/hr $175.00/day (first 8 hrs) General Baseball/Softball Fields Resident Non-Resident $25.00/hr $109.00/day (first 8 hrs) $35.00/hr $199.00/day (first 8 hrs) Taft and Washington Premier Soccer/Football Fields Resident Non-Resident $59.00/hr $79.00/hr Christian and Donaldson Soccer/Football Fields Resident Non-Resident $52.00/hr $77.00/hr Monroe Neighborhood Soccer Field Resident Non-Resident $40.00/hr $60.00/hr Broomball/Hocke y Rink Donaldson and Christian Resident Non-Resident $29.00/hr $39.00/hr Tennis Courts All parks Resident Non-Resident $15.00/court/hr $25.00/court/hr City of Richfield September 10,2024 County of Hennepin State of Minnesota Volleyball Courts All parks Resident Non-Resident $18.00/hr $26.00/hr Basketball Courts All parks Resident Non-Resident $18.00/hr $26.00/hr Open Space All parks Resident Non-Resident $18.00/hr $26.00/hr Athletic Facility Light Use Softball, Baseball, Soccer, Football, Hockey, Tennis All renters $30.00/hr Richfield Band Shell Stage and Equipment All renters Stage $150.00/hr Equipment $70/booking Adopted by the City Council of the City of Richfield, Minnesota on this 24th day of September, 2024. VOTING AYE VOTING NAY Supple, Mary Supple, Mary Christensen, Sharon Christensen, Sharon Hayford O’Leary, Sean Hayford O’Leary, Sean Trautmann, Simon Trautmann, Simon Whalen, Ben Whalen, Ben Mary B. Supple, Mayor ATTEST: . Michelle Friedrich, City Clerk AGENDA SECTION:RESOLUTIONS AGENDA ITEM #10. STAFF REPORT NO. 123 CITY COUNCIL MEETING 9/10/2024 REPORT PREPARED BY:Jamie Haefner, Human Resources Manager DEPARTMENT DIRECTOR REVIEW:Sack Thongvanh, Assistant City Manager OTHER DEPARTMENT REVIEW: CITY MANAGER REVIEW: Katie Rodriguez, City Manager 9/5/2024 ITEM FOR COUNCIL CONSIDERATION: Consider the adoption of a resolution approving the contract with Teamsters #320 (Lieutenants) bargaining unit for the period January 1, 2024 through December 31, 2025 and authorize the City Manager to execute the agreement. EXECUTIVE SUMMARY: City staff has completed labor negotiations with Teamsters #320 (Lieutenants). The provisions of the 2024-2025 labor agreement cover all three Lieutenant positions. The two-year contract provides the following changes: Increase in vacation sell back from 48 hours to 64 hours to match our non-union policy. Increase the total annual Holiday Leave from 96 hours to 104 hours because of the additional Juneteenth holiday. Include the same employer-provided Health and Dental insurance contributions as given to the non- represented employee groups. Wage adjustments to include a 3% COLA and an 8.4% market adjustment for the top step in 2024 and a 3% COLA and 1% market adjustment for all steps in 2025. The higher starting pay is consistent with the wages required to compete in the historically tight market for law enforcement personnel. RECOMMENDED ACTION: By motion: Adopt a resolution approving the provisions of the 2024-2025 labor agreement with the Teamsters #320 bargaining unit and authorize the City Manager to execute the agreement. BASIS OF RECOMMENDATION: A.HISTORICAL CONTEXT The tentatively approved two year contract settlement includes the following significant changes: Wages: A 3.00% wage adjustment and an 8.4% market adjustment for 2024 (top step) and a 3.00% wage adjustment and 1% market adjustment (all steps) for 2025. Health and Dental Insurance to match what is provided to non-represented groups Increasing vacation sell back to 64 hours per year Increasing Holiday Leave to 104 hours to accommodate the Juneteenth holiday. B.EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS Implementing these pay strategies helps us better align with the current market to aide in the recruitment and retention of Lieutenants. C.POLICIES (resolutions, ordinances, regulations, statutes, exc): The City has met and negotiated in good faith with the Unions and its representatives and is bound under the Public Employer's Labor Relations Act to meet and bargain over the terms and conditions of employment. The proposed settlement for the health and dental insurance provisions is identical to those provided to both union and non-union City employees. The City has a long history of providing the same level of insurance benefits to all eligible City employees. The wage increases and equity adjustments are similar to the comparable cities used in our recent compensation and classification study and represents best practices in order to maintain competitiveness. D.CRITICAL TIMING ISSUES: In order to allow the City's accounting personnel to modify payroll records in a timely manner for 2024-2025 wages and benefits and in order not to further delay any pay due to employees, it is recommended that the City Council act on September 10, 2024, to adopt a resolution providing for contract changes, effective January 1, 2024. E.FINANCIAL IMPACT: The proposed contract increases total wages for the bargaining unit by $46,095 for the 2024 Revised Budget and $18,017 for the 2025 Proposed Budget which are accounted for in the current budget documents. Both include a 3% COLA adjustment. The market adjustment over the 3% COLA provided to all employee groups is $33,965 in 2024 and $4,504 in 2025. F.LEGAL CONSIDERATION: If the terms of this agreement are not approved, further negotiation and/or mediation will be necessary. ALTERNATIVE RECOMMENDATION(S): Do not approve the terms of this agreement and prepare for further negotiation and/or mediation. Defer discussion to another date. PRINCIPAL PARTIES EXPECTED AT MEETING: ATTACHMENTS: Description Type Lieutenant Resolution Resolution Letter RESOLUTION NO. RESOLUTION APPROVING LABOR AGREEMENT BETWEEN THE CITY OF RICHFIELD AND TEAMSTERS #320 (LIEUTENANTS) BARGAINING UNIT FOR YEARS 2024-2025 WHEREAS, the City Manager and the Law Enforcement Teamsters #320 (Lieutenants) have reached an understanding concerning conditions of employment for 2024 and 2025; and WHEREAS, it would be inappropriate to penalize Teamsters members who have negotiated in good faith; and WHEREAS, the City Ordinance requires that contracts between the City and the exclusive representative of the employees in an appropriate bargaining unit shall be completed by Council resolution. NOW, THEREFORE, BE IT RESOLVED that the City Council does hereby approve the Labor Agreement between the City of Richfield and Teamsters for 2024 and 2025 under the provisions of the Labor Agreement to be implemented effective January 1, 2024 and authorize the City Manager to execute the contracts. Adopted by the City Council of the City of Richfield, Minnesota this 10th day of September 2024. _______________________________ Mary Supple Mayor ATTEST: ______________________________ Michelle Friedrich City Clerk