08-10-2022 City Council AgendaR EG U LAR C IT Y C O U N C IL MEET IN G
R IC H F IE L D MU N IC IPAL C E N TE R, C O U N C IL C H AMB E R S
AU G U S T 10, 2022
7:00 P M
IN TR O D U C TO RY P R O C E E D IN G S
C all to order
P ledge of A llegiance
Open forum
C all into the open forum by dialing 1-415-655-0001 U se webinar access code: 2459 911 4770 and password:
1234.
P lease refer to the C ouncil A genda & M inutes web page for additional ways to submit comments.
E ach speaker is to keep their comment period to three minutes to allow sufficient time for others. C omments
are to be an opportunity to address the C ouncil on items not on the agenda. I ndividuals who wish to address
the C ouncil must have registered prior to the meeting.
A pprove the Minutes of the: (1) Regular C ity C ouncil Meeting of July 26, 2022; and (2) S pecial C ity C ouncil Work
S ession of A ugust 1, 2022.
P R E S E N TATIO N S
1.2022 Gene & Mary J acobsen C itizen of the Year P resentation
2.Receipt of the C ity of Richfield A nnual F inancial Report for the fiscal year ended D ecember 31, 2021.
AG E N D A APPR O VAL
3.A pproval of the A genda
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 .F irst Reading of Ordinance A mending S ection 300 and S ection 1220 of the C ity C ode of Ordinance
relating to the A bolishment of the L iquor D epartment and L iquor Operations D irector P osition W ithin the
C ity Organization.
S taff Report No. 109
B .F irst reading of a proposed ordinance amendment updating the C ity’s Zoning C ode subsection that
regulates fences, walls, and hedges.
S taff Report No. 110
C .C onsider adoption of a resolution authorizing the C ity of Richfield to accept grant funds in the amount of
$10,000 and enter into a S ource Water P rotection Grant A greement (S W IF T C ontract Number 214643)
with Minnesota D epartment of Health (MD H) to upgrade security system infrastructure at the Water
Treatment P lant and Well Houses.
S taff Report No. 111
D .C onsider the approval of a resolution appointing A ssistant C ity Manager S ack Thongvanh as the C ity's
D irector Representative on the L ocal Government Information S ystems (L O GIS ) B oard of D irectors.
S taff Report No. 112
E .C onsider the adoption of a resolution supporting a L ivable C ommunities A ct Transit Oriented D evelopment
grant application to the Metropolitan C ouncil for the proposed "Veterans Village" development by the
A merican L egion P ost 435 at 6501 P ortland Avenue.
S taff Report No. 113
F.C onsider authorizing the Mayor and C ity Manager to execute a cost-share/reimbursement agreement with
P artnership A cademy for installation of a water utility service line in advance of the C ity's 65th S treet
Reconstruction P roject due to expansion of the P artnership A cademy campus.
S taff Report No. 114
G.A pproval of a resolution amending the allocation of the 2021 General F und B udget.
S taff Report No. 115
5.C onsideration of items, if any, removed from C onsent C alendar
C IT Y MAN AG E R’S R E P O R T
6.C ity Manager's Report
C LAIMS AN D PAYR O L LS
7.C laims and P ayroll
C O U N C IL D ISC U SSIO N
8.Hats Off to Hometown Hits
9.A djournment
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 612-861-9738.
CALL TO ORDER
The meeting was called to order by Mayor Regan Gonzalez at 7:01 p.m. in the Council
Chambers.
Council Members
Present:
Maria Regan Gonzalez, Mayor; Mary Supple; Simon Trautmann; Sean
Hayford Oleary; and Ben Whalen
Council Members
Absent:
None
Staff Present:
Katie Rodriguez, City Manager; Mary Tietjen, City Attorney; and Kari Sinning,
City Clerk
Others Present: None
PLEDGE OF ALLEGIANCE
Mayor Regan Gonzalez led the Pledge of Allegiance.
OPEN FORUM
Mayor Regan Gonzalez 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
There were no participants.
APPROVAL OF MINUTES
M/Supple, S/Whalen to approve the minutes of the: (1) Special Closed City Council Session of
July 12, 2022; and (2) Regular City Council Meeting of July 12, 2022.
Motion carried: 5-0
ITEM #1
APPROVAL OF THE AGENDA
CITY COUNCIL MEETING MINUTES
Richfield, Minnesota
Regular Council Meeting
July 26, 2022
City Council Meeting Minutes -2- July 26, 2022
M/Whalen, S/Truatmann to approve the agenda.
Motion carried: 5-0
ITEM #2
CONSENT CALENDAR
City Manager Rodriguez presented the consent calendar.
A. Consider approval of the amended rental agreement between the City of Richfield and the
MN Whitecaps Professional Women's hockey team for use of a locker room, ice time for
practices and games, concessions, and alcohol sales. (Staff Report No. 106)
B. Consider approval of the establishment of a Recreation Special Revenue Fund for the
Sustainability Program that includes organized collection. (Staff Report No. 107)
RESOLUTION NO. 11990
RESOLUTION AUTHORIZING ESTABLISHMENT OF NEW SPECIAL
REVENUE FUNDS FOR THE CITY'S ORGANIZED HAULING
PROGRAM, INCLUDING RECYCLING, ORGANICS, AND
SUSTAINABILITY PROGRAMS
C. Approval of the first reading of an ordinance amending the term of the Existing Franchise
Agreement from August 1, 2022, to January 31, 2023, and schedule a second reading for
September 13, 2022. (Staff Report No. 108)
Mayor Regan Gonzalez invited Bobby Long of NLTD Hockey Ventures LLC, shared that this
would be a home for the Minnesota Whitecaps where they will be treated like professional athletes.
Council Member Supple expressed excitement to watch them play. Long expressed the hope to bring
the Isobel Cup to Richfield. Council Member Trautmann also extended a welcome and asked about
season tickets. Long explained that they are figuring out the ticket sales and shared that securing a
facility to play. Council Member Trautmann stated that they should connect with Visit Richfield and the
Chamber of Commerce to make the home opener could be a great event. Mayor Regan Gonzalez
also welcomed them and shared that Richfield is full of Hockey supporters. She also thanked the
leadership of the Ice Arena Staff in re-envisioning and revitalizing the space for the future of the
community and also shared a personal anecdote regarding playing hockey. Long extended an offer to
Mayor Regan Gonzalez to do the opening ceremony puck drop on opening night.
M/Hayford Oleary, S/Supple to approve the consent calendar.
Motion carried: 5-0
ITEM #3
CONSIDERATION OF ITEMS, IF ANY, REMOVED FROM CONSENT
CALENDAR
None.
ITEM #4
CITY MANAGER’S REPORT
City Council Meeting Minutes -3- July 26, 2022
City Manager Rodriguez had nothing to report; however, stated that council would like to
continue the discussion from the previous work session regarding the use of American Rescue Plan
Act (ARPA) funding.
Mayor Regan Gonzalez opened up the discussion.
Council Member Whalen shared that he is excited for the projects but questioned that if this is
the correct source of funding and if there are projects missing that we would not have other
opportunities to fund. He posed a question to Council to consider sharing funds allocated to the
Emerald Ash Borer (EAB) project towards something that directly focused on energy use, reducing
fossil fuel use, and more sustainable future.
Council Member Supple appreciated the balance and variety of projects that would be funded
and asked staff to comment on what other projects might be suitable that would focus on
sustainability.
Recreation Services Director Markle shared the thoughts from Sustainability Specialist
Lindholm regarding the use of the ARPA funding for other projects and they concluded that utilizing
the money for the EAB project would help to preserve our tree canopy and replant trees.
Council Member Trautmann appreciated the concern from Council Member Whalen and
would, if possible, support a couple different options after comparing and viewing a cost benefit
analysis but does not have a strong opinion currently.
Council Member Hayford Oleary understood the concern from Council Member Whalen and
commented that changes from policies would promote sustainability. He stated that grant
opportunities that may arise to convert to heat pumps or education or energy audits but that may likely
benefit high-income households versus the EAB project would benefit low-income households. He
asked Council Member Whalen why he chose the EAB project versus the splash pad.
Council Member Whalen expressed the need to utilize funds to help create more sustainable
community which is also a federal, state, and local issue and that we can’t keep operating in the
direction we are going.
Mayor Regan Gonzalez asked a question regarding the gap that needs to be fulfilled for the
climate action plan. Council Member Whalen stated that funding is the gap and expressed the need to
make the climate action plan a priority. City Manager Rodriguez thanked Council Member Whalen for
giving more details and stated that projects are voted on independently if they are from a local option
sales tax which would be brought up in a future work session.
Mayor Regan Gonzalez commented the need to focus on the internal infrastructure to promote
equity and sustainability.
Director Markle appreciated Council Member Whalen’s comments on climate change and
noted that there are strategic initiatives for external/internal education and engagement and also
prioritizing items on the climate action plan.
Council Member Trautmann affirmed the reality of climate change and thanked Council
Member Whalen for raising the opportunity for Council and Staff to address climate change.
Council Member Hayford Oleary commented that Director Asher said in the work session that
$300,000 is the functional minimum for the EAB project and asked Council if they would want to ask
staff to research if there is an alternative project directed at climate change that would be around
City Council Meeting Minutes -4- July 26, 2022
$150,000. He offered education for homeowners or retrofitting a city building to reduce climate change
impacts as solutions.
Council Member Whalen expressed the need for Council to be clearer upon implementing the
climate action plan and creating a budget for it to be successful.
City Manager Rodriguez summarized the discussion by asking Council if they would like staff
to review the climate action plan to see if there is a use of $150,000. Mayor Regan Gonzalez stated
that she would support the use of $150,000 depending on the outcome of the proposed project.
Council Member Supple clarified what she heard from Council Member Whalen was that we could
look at the uses of the $150,000 but we also need to make the climate action plan a priority and
create a budget for the future. Council Member Whalen shared hesitance because in his interpretation
staff already stated the use for the funding. Mayor Regan Gonzalez stated that Council should have a
future discussion regarding funding for the climate action plan. Director Markle offered to have staff
meet to see if there is a need for the $150,000 that could be used from the climate action plan and
weigh the pros and cons of the EAB project only being funded for $300,000.
Council Member Trautmann thanked staff and Council for the conversation and expressed
trust in staff to promote the Council’s vision but not to simply act performatively.
Council Member Whalen echoed the comment from Council Member Trautmann and
acknowledged that funding is not always the barrier to build the capacity to set up for future
conversations.
Mayor Regan Gonzalez summarized the discussion and directed staff to delve into the climate
action plan to see if ARPA funds can be used and bring it back to Council. She also stated the need
for more clarity as a Council to continue to work on the climate action plan.
Council Member Whalen encouraged residents to view the full proposals for the ARPA
funding.
Mayor Regan Gonzalez thanked staff for gathering the proposals and thinking of a variety of
things for the long-term success of the community.
Council Member Hayford Oleary expressed excitement and support for the community mural
at Galaxy Foods.
ITEM #5
CLAIMS AND PAYROLL
M/Supple, S/Trautmann that the following claims and payrolls be approved:
U.S. BANK 7/26/2022
A/P Checks: 307718 – 308011 $1,589,596.20
Payroll: 171838 – 172199 $790,863.83
TOTAL $2,380,460.03
Council Member Trautmann thanked staff.
Motion carried: 5-0
City Council Meeting Minutes -5- July 26, 2022
ITEM #6
HATS OFF TO HOMETOWN HITS
Council Member Whalen encouraged residents to vote in the Primary Election that includes
the Council At Large position and the County Attorney. City Clerk Sinning added the times for voters
to come vote in person absentee and invited residents and council to the public accuracy test.
Council Member Supple thanked Public Works staff and mentioned how to address
emergency needs when normal office hours are closed. She also thanked those that supported the
Donaldson Park basketball tournament. She also mentioned Unity in the Community on August 5th.
Council Member Hayford Oleary mentioned the Safe Routes to School workshop at RDLS and
the Urban Wildland Half Marathon as he will lead the 5k race on his bike.
Council Member Trautmann also mentioned the Urban Wildland Half Marathon and
encouraged volunteers for the event. He also lifted up early voting.
Mayor Regan Gonzalez shared art events that would be held at the Richfield Lake
Amphitheatre on Wednesdays in August. She also mentioned National Night Out on August 2nd.
ITEM #7
ADJOURNMENT
The meeting was adjourned by unanimous consent at 7:54 p.m.
Date Approved: August 10, 2022
Maria Regan Gonzalez
Mayor
Kari Sinning Katie Rodriguez
City Clerk City Manager
CITY COUNCIL MEETING MINUTES
Richfield, Minnesota
Special City Council Work Session
August 1, 2022
CALL TO ORDER
The work session was called to order by Mayor Regan Gonzalez at 5:06 p.m. in the
Bartholomew Room.
Council Members
Present:
Maria Regan Gonzalez, Mayor; Mary Supple; Simon Trautmann; Sean
Hayford Oleary; and Ben Whalen
Council Members
Absent:
None
Staff Present: Katie Rodriguez, City Manager; Jay Henthorne, Public Safety Director; Mike
Dobesh, Fire Chief; Kristin Asher, Public Works Director; Julie Urban,
Assistant Community Development Director; Amy Markle, Recreation
Services Director; Chris Swanson, Management Analyst
Others Present: Craig Rapp, Rapp Consulting; Lee Ohnesorge, HRA Commissioner
Mayor Regan Gonzalez explained that there is one topic for discussion for the work session
and turned it over to City Manager Rodriguez.
ITEM #1
PREVIEW A PRESENTATION ON STRATEGIC PLANNING WITH CRAIG RAPP,
RAPP CONSULTING.
City Manager Rodriguez gave an introduction to the strategic planning process and turned it
over to Craig Rapp, Rapp Consulting. Mr. Rapp went over the strategic planning process and
priorities identified by the city during this work.
Craig Rapp presented the Operational Excellence strategic priority to council, there was some
general discussion. He then continued with the Community Development strategic priority.
Council Member Whalen commented he is happy to see the city is focused on ensuring the
reducing the number of cost burdened households is included in the plan, but he also wants
something on how we can maintain or grow the number of affordable units in the city. Assistant
Community Development Director Urban responded that community development could try and find
another target they could track on this matter.
Council Member Supple asked about how the city can maintain or grow the number of
affordable commercial spaces in the city. Craig Rapp outlined that some of that work is already
included in the Sustainable Infrastructure priority, which he then presented.
City Council Work Session Minutes -2- August 1, 2022
Council Member Whalen commented about the climate piece of the plan and wanted to know
how the city plans to communicate these targets to the community and noted all the work seems to be
left to the recreation department and the sustainability commission. He also noted the two top
priorities have not been determined and suggested promoting them when done.
Craig Rapp presented the High-Quality workforce strategic priority to council, there was some
general discussion. He then presented the equity and inclusion priority.
Council Member Trautmann noted that equity worked is placed in a silo in many organizations
and would like the city to look at how the work is discussed as an organization.
Council Member Supple recognized that the equity work covers many traditionally excluded
groups.
Council Member Whalen stated he is excited about all this work. He wondered if the city
should get more specific about outcomes for the equity work as he wants to see some of the work
completed by 2025.
Council Member Trautmann noted it would be nice to have some of the equity items more
flushed out, but understands the limitations by not having an equity coordinator currently on staff. He
also hopes that once that position is filled, that person can quickly start work on projects within the
plan.
Mayor Regan Gonzalez agreed overall and understands the city wants to lead by values with
some additional core items to take into consideration. She felt this document sets strong priorities and
action steps which are aligned with the values.
City Manager Rodriguez asked for comments or questions on the strategic priority initiatives
presented.
Council Member Hayford Oleary asked about general formatting of the initiatives. He also
asked about the Economic Development Coordinator and if this is a new position or is currently in the
budget. Assistant Community Development Director Urban responded that this was a new position
that is in the budget. Council Member Hayford Oleary asked if some of the redevelopment work is
being pushed out as community development waits to hire a development coordinator. Assistant
Community Development Director Urban responded that was correct.
Council Member Supple stated this is much like the equity work.
Council Member Hayford Oleary asked about the status was of some waypoint signs.
Recreation Services Director Markle stated they are still planned for the future and believed they will
be included in the 65th street work.
Council Member Whalen stated he was excited about this plan as he believes these items are
very concrete and specific. He expressed excitement about where the city is headed.
Council Member Supple confirmed that parks are still included in the standard capital planning
process.
Craig Rapp talked about the power of having a dashboard or a similar system to enable staff
to show our community the work we’re doing. Council Member Whalen wanted to expand on that
point. He recognized having data on a dashboard is good but that is only a small part of the story. He
would like to grow communications on this work to include clear messages about initiatives.
City Council Work Session Minutes -3- August 1, 2022
Craig Rapp provided closing statements by reminding everyone that this is an ongoing
journey.
The Council thanked everyone who worked on this project.
Mayor Regan Gonzalez was thankful for the focus on equity but wanted staff to spend time not
on surveys, but in conversation and partnership with existing groups in our community.
Council Member Whalen asked about a timeline for next steps and asked for a
communications plan for review when the plan is submitted for final council approval.
City Manager Rodriguez stated she would discuss this with the communications team and
provide a timeline for both the final approval of strategic plan and the corresponding communications
strategy.
Council Member Hayford Oleary asked about how the process will relate to specific policy or
ordinance changes he may want staff to pursue. City Manager Rodriguez said the work plan will help
lead that discussion and will allow staff to develop that process. She then provided a summary of
changes to the strategic plan.
ADJOURNMENT
The work session was adjourned by unanimous consent at 6:50 p.m.
Date Approved: August 10, 2022
Maria Regan Gonzalez
Mayor
Chris Swanson Katie Rodriguez
Management Analyst City Manager
AGENDA SECTION:PRESENTATIONS
AGENDA ITEM #1.
CIT Y COUNCIL ME E T ING
8/10/2022
RE P O RT P RE PA RE D B Y: Jay Henthorne, D irector of P ublic S afety/C hief of P olice
D E PA RTME NT D IRE C TO R RE V IE W: Jay Henthorne, D irector of P ublic S afety/C hief of P olice
8/1/2022
O THE R D E PA RTM E NT RE V IE W:
C ITY MA NA G E R RE V IE W:
I T E M F O R C O UNC IL C O NS ID E RAT I O N:
2022 Gene & Mary Jacobsen Citizen of the Year Presentation
E X E C UT IV E S UM M ARY:
The Richfield Human Rights Commission has selected a Citizen of the Year award recipient since 1971. The
award is given to a family, group, organization, business or individual who lives or works in Richfield and
whose actions demonstrate an awareness and commitment to the attitudes and practices that foster human
understanding, tolerance and the spirit of human relations.
The Human Rights Commission has awarded the 2022 Gene and Mary J acobsen Outstanding Citizen award
to Rissa Pahl.
Rissa's years of dedication and service to the Richfield children and families as a home daycare provider for
thirty plus years. Rissa is now into her "second career" in a lead position at Havenwood Homes were she
continues in her vocation of caring for aging and vulnerable adults.
Rissa exemplifies what it is to be a good neighbor. She is always informed about local government affairs and
shares her vast knowledge while being one of the administrators of the Richfield Community Facebook page.
Rissa has also been instrumental in keeping Richfield residents informed about community events and how
members of the community can become involved in City meetings. Communication within our City is vital, but
during C OV I D-19 it was critical that our neighbors had a way to communicate with each other. Rissa was a
compass for many people who sought community support during those difficult days.
RE C O M M E ND E D AC T I O N:
B AS IS O F RE C O M M E ND AT I O N:
A.H IS TOR IC AL C ON T E X T
The Richfield Human Rights Commission has selected a Citizen of the Year award recipient since
1971. The award is given to a family, group, organization, business or individual who lives or works in
Richfield and whose actions demonstrate an awareness and commitment to the attitudes and practices
that foster human understanding, tolerance and the spirit of human relations.
B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc):
C.C R IT IC AL T IMIN G IS S U E S:
D.F IN AN C IAL IMPAC T:
E.L E GAL C ON S ID E R AT ION:
ALTE R N AT IV E R E C O MME N D ATIO N(S):
P R IN C IPAL PAR TIE S E X P E C TE D AT ME E TIN G:
Kim J acobsen Rissa Pahl
AGENDA SECTION:PRESENTATIONS
AGENDA ITEM #2.
CIT Y COUNCIL ME E T ING
8/10/2022
RE P O RT P RE PA RE D B Y: K umud Verma, F inance Manager
D E PA RTME NT D IRE C TO R RE V IE W:
O THE R D E PA RTM E NT RE V IE W:
C ITY MA NA G E R RE V IE W: K atie Rodriguez, C ity Manager
8/5/2022
I T E M F O R C O UNC IL C O NS ID E RAT I O N:
Receipt of the City of Richfield Annual Financial Report for the fiscal year ended December 31, 2021.
E X E C UT IV E S UM M ARY:
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.
I n 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 15, 2022.
Accordingly, the City's auditing firm, BerganK D V, 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,
2021.
The financial statements will be published locally and was submitted to the Government Finance Officers
Association on August 1, 2022 for the Certificate of Achievement for Excellence in Financial Reporting
program. I n addition, the annual report will be filed to 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, 2021.
RE C O M M E ND E D AC T I O N:
By Motion: Accept the Annual Financial Report of the City for the year ended December 31, 2021.
B AS IS O F RE C O M M E ND AT I O N:
A.H IS TOR IC AL C ON T E X T
The City's auditing firm, BerganK D V, Ltd. has completed the annual audit of the City's financial records
for the fiscal year ended December 31, 2021.
As part of the audit, BerganK D V, LTD. has issued an unmodified opinion on the City's financial
statements for the year ending December 31, 2021.
A representative of BerganK D V, LTD. will be present at the tonight's Council meeting to make a brief
presentation on the 2021 financial information and answer questions.
I n addition, the Annual Report will be 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.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc):
Action needs to be taken at the August 10, 2022 City Council meeting is the official receipt of the
December 31, 2021 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, 2021 and prepared reports to the City Council concerning legal compliance and internal controls.
C.C R IT IC AL T IMIN G IS S U E S:
Action on this item is requested at the August 10, 2022 City Council meeting as there is a reporting
deadline with the State of Minnesota.
D.F IN AN C IAL IMPAC T:
E.L E GAL C ON S ID E R AT ION:
The Annual Report will be submitted to the State of Minnesota, pursuant to State law.
The Annual Report will be published in the Sun Current in August.
ALTE R N AT IV E R E C O MME N D ATIO N(S):
None
P R IN C IPAL PAR TIE S E X P E C TE D AT ME E TIN G:
Representative form BerganK D V
AT TAC H ME N T S:
D escription Type
A nnual C omprehensive F inancial Report for F iscal Year
2021 B ackup Material
2021 Richfield C ommunications L etter B ackup Material
2021 S chedule of E xpenditures of F ederal Awards and
Independent A uditor's Reports B ackup Material
CITY OF RICHFIELD
RICHFIELD, MINNESOTA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED
DECEMBER 31, 2021
PREPARED BY:
FINANCE DEPARTMENT
Member GFOA of U.S. and Canada
THIS PAGE IS LEFT
BLANK INTENTIONALLY
CITY OF RICHFIELD, MINNESOTA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
TABLE OF CONTENTS
FOR THE YEAR ENDED DECEMBER 31, 2021
Page No.
Introductory Section
Letter of Transmittal 9
GFOA Certificate of Achievement for Excellence in Financial Reporting 14
City Officials 15
Organizational Chart 16
Financial Section
Independent Auditor's Report 19
Management’s Discussion and Analysis 23
Basic Financial Statements
Government-wide Financial Statements
Statement of Net Position 35
Statement of Activities 36
Fund Financial Statements
Governmental Funds
Balance Sheet 40
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 43
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual -
General Fund 44
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual -
Ice Arena Special Revenue Fund 45
Proprietary Funds
Statement of Net Position 46
Statement of Revenues, Expenses and Changes in Net Position 49
Statement of Cash Flows 50
Fiduciary Funds
Statement of Fiduciary Net Position 52
Statement of Changes in Fiduciary Net Position 53
Notes to the Financial Statements 55
Required Supplementary Information
Schedule of Employer’s Share of Public Employees Retirement Association Net Pension Liability -
General Employees Retirement Fund 88
Schedule of Employer’s Public Employees Retirement Association Contributions -
General Employees Retirement Fund 88
Notes to the Required Supplementary Information - General Employees Retirement Fund 89
Schedule of Employer’s Share of Public Employees Retirement Association Net Pension Liability -
Public Employees Police and Fire Fund 91
Schedule of Employer’s Public Employees Retirement Association Contributions -
Public Employees Police and Fire Fund 91
Notes to the Required Supplementary Information - Public Employees Police and Fire Fund 92
Schedule of Changes in the City’s Total OPEB Liability and Related Ratios 94
3
CITY OF RICHFIELD, MINNESOTA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
TABLE OF CONTENTS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 2021
Page No.
Combining and Individual Fund Financial Statements and Schedules
Nonmajor Governmental Funds
Combining Balance Sheet 96
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 97
Nonmajor Special Revenue Funds
Subcombining Balance Sheet 98
Subcombining Statement of Revenues, Expenditures and Changes in Fund Balances 100
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Liquor Contributions Special Revenue Fund 103
Tourism Admin Special Revenue Fund 104
Communications Special Revenue Fund 105
Elections Special Revenue Fund 106
Drug/Forfeiture Special Revenue Fund 107
Public Safety Compliance Special Revenue Fund 108
Recreation Contribution Special Revenue Fund 109
Nature Center Contribution Special Revenue Fund 110
Public Health Grants Special Revenue Fund 111
Wood Lake Half Marathon Special Revenue Fund 112
Utility Franchise Fees Special Revenue Fund 113
Swimming Pool Special Revenue Fund 114
Special Facilities Special Revenue Fund 115
General Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 117
Internal Service Funds
Combining Statement of Net Position 122
Combining Statement of Revenues, Expenses and Changes in Net Position 123
Combining Statement of Cash Flows 124
Summary Financial Report
Revenues and Expenditures for General Operations - Governmental Funds 125
Supplementary Financial Information
Housing and Redevelopment Authority
Combined Balance Sheet 128
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 129
Housing Choice Vouchers Financial Data Schedules – Balance Sheet 130
Housing Choice Vouchers Financial Data Schedules – Income Statement 131
Economic Development Authority
Balance Sheet 132
Statement of Revenues, Expenditures and Changes in Fund Balances 133
4
CITY OF RICHFIELD, MINNESOTA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
TABLE OF CONTENTS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 2021
Table No. Page No.
Statistical Section (Unaudited)
Financial Trends
Net Position by Component 1 136
Changes in Net Position 2 138
Fund Balances of Governmental Funds 3 142
Changes in Fund Balances of Governmental Funds 4 144
Revenue Capacity
Assessed Value and Estimated Actual Value of Taxable Property 5 146
Property Tax Rates - Direct and Overlapping Governments 6 147
Principal Property Taxpayers 7 148
Property Tax Levies and Collections 8 149
Ratios of Outstanding Debt by Type 9 150
Ratios of General Bonded Debt Outstanding 10 151
Debt Capacity
Computation of Direct and Overlapping Debt 11 153
Legal Debt Margin Information 12 154
Revenue Bond Coverage 13 156
Demographic and Economic Information
Demographic and Economic Statistics 14 157
Principal Employers 15 158
Operating Information
Full-time Equivalent City Government Employees by Function 16 159
Operating Indicators by Function 17 160
Capital Asset Statistics by Function 18 161
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6
INTRODUCTORY SECTION
CITY OF RICHFIELD
RICHFIELD, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2021
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8
Finance Department
6 7 0 0 P O R T L A N D A V E N U E , R I C H F I E L D , MI N N E S O T A 5 5 4 2 3 6 1 2 . 8 6 1 . 9 7 0 0 FA X : 6 1 2 . 8 6 1 . 9 7 15
w w w . ri c h f i 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 MP L O Y E R
MAYOR
MARIA REGAN
GONZALEZ
CITY COUNCIL
SEAN HAYFORD OLEARY
MARY SUPPLE
SIMON TRAUTMANN
BEN WHALEN
CITY MANAGER
KATIE RODRIGUEZ
August 1, 2022
The Honorable Mayor and
Members of the City Council,
City of Richfield, Minnesota
State law requires that all general-purpose 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 principles (GAAP) and audited in accordance with
U.S. generally accepted auditing standards by a firm of licensed certified public accountants.
Pursuant to that requirement, we hereby issue the annual comprehensive financial report of
the City of Richfield for the fiscal year ended December 31, 2021.
This report consists of management’s representations concerning the finances of the City of
Richfield. 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 Richfield 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 Richfield’s financial statements in conformity with GAAP. Because
the cost of internal controls should not outweigh their benefits, the City of Richfield’s
comprehensive framework of internal controls has been designed to provide reasonable
rather than absolute assurance that the financial statements will be free from material
misstatement. As management, we assert that, to the best of our knowledge and belief, this
financial report is complete and reliable in all material respects.
The City of Richfield’s financial statements have been audited by BerganKDV, a firm of
licensed certified public accountants. The goal of the independent audit was to provide
reasonable assurance that the financial statements of the City of Richfield for the fiscal year
ended December 31, 2021, are free of material misstatement. The independent audit
involved examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements; assessing the accounting principles used and significant estimates
made by management; and evaluating the overall financial statement presentation. The
independent auditor concluded, based upon the audit, that there was a reasonable basis for
rendering an unmodified opinion that the City of Richfield’s financial statements for the fiscal
year ended December 31, 2021, are fairly presented in conformity with GAAP. The
independent auditor’s report is presented as the first component of the financial section of
this report.
The independent audit of the financial statements of the City of Richfield 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 financial 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 Richfield’s
separately issued Special Purpose Audit Reports.
9
GAAP require that management provide a narrative introduction, overview, and analysis to
accompany the basic financial statements in the form of Management’s Discussion and
Analysis (MD&A). This letter of transmittal is designed to complement MD&A and should be
read in conjunction with it. The City of Richfield’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, Richfield is the first suburb south of
Minneapolis. Richfield 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 Richfield. The City of Richfield provides a full range of services, including police and fire protection;
the construction and maintenance of streets and other infrastructure; and recreational
activities and cultural events. The City of Richfield 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 Richfield’s financial 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 final 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. Factors Affecting Financial Condition Richfield was initially developed as a residential community. Residents of Richfield
generally work at the adjacent airport, in the downtown Minneapolis-St. Paul area or on the
I-494 strip. Richfield's commercial/industrial base is comparatively small when looking at
other Twin City metropolitan area communities. In fact, when viewing the total estimated
market value of the community, approximately 67% of the market value is comprised of
residential properties, 16% apartments, and only 17% commercial/industrial property.
Changes in the state's tax policy have indicated for some time a need for a more diversified
tax base, including more commercial development. Richfield has responded to this by encouraging commercial development within the City.
However, over 99% of the land area in Richfield is already developed. Commercial
development in Richfield is a more complex process that requires extensive redevelopment
and often the use of tax increment financing assistance. Since 1975, the City has created twenty-one tax increment districts. These tax increment
districts were formed in order 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 benefit of these districts. The City has had one district decertified in 2002, a second
district decertified in 2010, with a third district decertified in 2012, and two more decertified
in 2019.
10
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 on an annual basis engages in long-term financial and capital planning.
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 financial framework to maintain and replace the City’s physical and technical
infrastructure, and review options and opportunities to improve delivery of City services. Relevant Financial Policies
The City has adopted a set of financial 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 2021, the unassigned fund balance of the general fund is at 40% of general fund
expenditures. Major Initiatives Major initiatives in 2021 included the following: Right Of Way Improvements:
• 77th Street Underpass - This project will extend 77th Street under Trunk Highway 77,
connecting to the 24th Avenue Interchange at I-494. This project will provide 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 is estimated to be completed
in 2023. • Residential Mill & Overlay - A City-wide six year mill and overlay program completed
85 miles of residential streets. The roads were milled and overlaid as a result of the
program. The City will deliver a pavement management program to protect the
investments made in roadway infrastructure in future years.
11
Commercial Redevelopment and Housing Initiatives
• 2021 saw the planning and development of several large projects:
• Construction of the RF64 townhome project (along 17th Avenue between 63rd
and 65th Street) continued. 48 of the 64 townhomes are now either complete
or under construction.
• The apartment component of the RF64 development, Rya Apartments, is
immediately west of Target and Home Depot on Richfield Parkway.
Construction of the two apartment buildings (237 total units) began in 2021
and will be completed by summer 2022.
• The 192-unit Novo apartment project at 66th Street and Queen Avenue opened
in the spring of 2021.
• Construction of the Landsby at Penn, a new 132-unit apartment building in the
northwest corner of the Lunds parking lot (6228 Penn Avenue), continued
throughout 2021.
• The mixed use project at 101 66th Street East (Emi) was sold to North Bay
Companies. Revised plans for a 5-story project with approximately 80
apartments and 2,600 square feet of ground floor retail was approved in
January 2022 and is expected to be under construction by fall.
• Construction of the Riley apartment project at 64th and Lyndale Avenue began
alongside the rehabilitation of 22 existing apartments in an adjacent existing
apartment building. The Riley will include 82 new apartments.
• Land use approvals were granted for a mixed use project at 65th Street and
Lyndale Avenue. The Lynvue will include 157 new apartments and 8,000
square feet of ground floor retail space.
• Richfield Flats, a proposal for 55 low income housing tax credit units, was not
awarded tax credits in 2021. The developer will resubmit in 2022. • 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-profit builders and developers like Habitat for
Humanity; and a first-time homebuyer program specifically targeted at current
renters. • In 2021, the Richfield Economic Development Authority forgave 58 COVID-19
Business Loans that helped local businesses to weather the pandemic. The EDA
also continued to partner with the Center for Energy and Efficiency and provide grant
funding totaling $20,000 to 15 local businesses to make energy-related
improvements.
12
Awards and Acknowledgments The Government Finance Officers Association of the United States and Canada (GFOA)
awarded a Certificate of Achievement in Financial Reporting to the City of Richfield,
Minnesota for its annual report for the fiscal year ended December 31, 2020. This was the
thirty-fourth consecutive year that the City has achieved this prestigious award. In order to be awarded a Certificate 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 Certificate of Achievement is valid for a period of one year only. We believe that our
current annual report continues to meet the Certificate of Achievement Program
requirements, and we are submitting it to GFOA to determine its eligibility for another
certificate.
The preparation of this report could not be accomplished without the efficient and dedicated
services of the entire staff of the finance 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 financial operations for the City of Richfield in a responsible and progressive
manner.
Respectfully submitted,
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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Richfield
Minnesota
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
December 31, 2020
Executive Director/CEO
14
CITY OF RICHFIELD, MINNESOTA
CITY OFFICIALS
FOR THE YEAR ENDED DECEMBER 31, 2021
Name Title Term Ends
Maria Regan Gonzalez Mayor 1/2/2023
Mary Supple Council Member 1/2/2023
Simon Trautmann, Ward 1 Council Member 1/6/2025
Sean Hayford Oleary, Ward 2 Council Member 1/6/2025
Ben Whalen, Ward 3 Council Member 1/6/2025
Name Title
Katie Rodriguez
Christopher Regis
Kumud Verma
Kari Sinning
City Manager
Finance Director - ended on 8/9/2021
Finance Manager - started on 5/18/2022
City Clerk
City Officials
Administrative Staff
15
CITY OF RICHFIELD
ADMINISTRATIVE ORGANIZATION CHART
Liquor Operations
Assessing Administration
Special Facilities
Penn Store
Assistant City
Manager
Administration Recreation
Administration Planning & Zoning
Citizens
City Council
City Attorney
Cedar StorePark and
Recreation
Public Safety
Lyndale Store
Fire
Support Services
Recreation
ServicesFinance
Stormwater Utility
& Equipment
Central Garage
& Equipment
Swimming Pool
Human Resources
City Clerk
Information
Technologies
Police Operations
Emergency
Services Wood Lake Nature
Center
Park
Maintenance
Water Utility
Inspections
Deputy Registrar
Self Insurance/ Risk
Management
Communications
Government
Buildings
Waste Water
Utility
Wines & Spirits
City Manager
Executive
Community
DevelopmentPublic Works
Engineering
Ice Arena
Street
Maintenance/Fores
try
16
FINANCIAL SECTION
CITY OF RICHFIELD
RICHFIELD, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2021
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18
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, 2021, and the related notes
to the financial statements, which collectively comprise the City’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, 2021, and the respective changes in financial position and,
where applicable, cash flows thereof, and the budgetary comparison for the General Fund and Ice Arena
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.
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 one year beyond the financial statement date, including any currently known
information that may raise substantial doubt shortly thereafter.
19
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.
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 Accounting Standards Board (GASB), who considers it to
be an essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context. We have applied certain limited procedures to the Required
Supplementary Information in accordance with auditing standards generally accepted in the United
States of America, which consisted of inquiries of management about the methods of preparing the
information and comparing the information for consistency with management's responses to our
inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic
financial statements. We do not express an opinion or provide any assurance on the information because
the limited procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
20
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
nonmajor fund financial statements 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.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated August 1,
2022, 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.
Minneapolis, Minnesota
August 1, 2022
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22
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, 2021. 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 9 through 13 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 $92,038,976 (net position). Of this amount, $10,677,175 may
be used to meet the governments ongoing obligations to citizens and creditors.
• The government’s total net position increased by $20,128,404.
• As of the close of the current fiscal year, the City of Richfield’s governmental funds reported combined ending fund
balances of $29,037,533. Of this total amount, $48,600 is classified as nonspendable, $3,090,932 as restricted,
$13,661,056 as committed by City Council action, $5,518,491 as assigned and $6,718,454 as unassigned.
• At the end of the current fiscal year, the general fund balance of $10,564,929 included $47,489 as nonspendable and
$10,517,440 as unassigned.
• The City of Richfield’s total bonded debt decreased by $7,826,831 (11 percent) during the current fiscal year from
$70,724,340 to $62,897,509.
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 similar to a private -sector business.
The statement of net position presents information on all of 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).
Both of the 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 of the funds of
the City of Richfield can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.
23
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 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, improvement bonds fund, and capital improvements fund, all of which
are considered to be major funds. Data from the other sixteen 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.
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 f und 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 ou tside 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.
24
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
$92,038,976 at the close of the most recent fiscal year.
By far the largest portion of the City of Richfield’s net position (71 percent) reflects its investment in capital assets (e.g.,
land, buildings, machinery, and equipment); less any related debt used to acquire those assets that is still outstanding.
The City of Richfield uses these capital assets to provide services to citizens; consequently, these assets are not available
for future spending. Although the City of Richfield’s investment in its capital assets is reported net of relat ed debt, it
should be noted that the resources needed to repay this debt must be provided from other sources, since the capital
assets themselves cannot be used to liquidate these liabilities.
CITY OF RICHFIELD’S NET POSITION
Increase Increase
2021 2020 (Decrease)2021 2020 (Decrease)
Assets
Current and other assets 60,944,546$ 49,665,300$ 11,279,246$ 10,247,875$ 11,784,680$ (1,536,805)$
Capital assets, net of depreciation 81,737,616 78,742,012 2,995,604 34,166,369 34,255,973 (89,604)
Total Assets 142,682,162 128,407,312 14,274,850 44,414,244 46,040,653 (1,626,409)
Deferred Outflows of Resources
Deferred other postemployement benefits resources 281,160 236,348 44,812 25,586 22,210 3,376
Deferred pension resources 12,291,368 5,292,327 6,999,041 1,129,745 194,799 934,946
Total Deferred Outflows of Resources 12,572,528 5,528,675 7,043,853 1,155,331 217,009 938,322
Liabilities
Long-term liabilities outstanding 64,891,931 69,576,063 (4,684,132) 14,924,543 15,351,135 (426,592)
Other liabilities 5,784,574 8,885,770 (3,101,196) 1,456,950 4,093,022 (2,636,072)
Total Liabilities 70,676,505 78,461,833 (7,785,328) 16,381,493 19,444,157 (3,062,664)
Deferred Inflows of Resources
Deferred pension resources 16,864,766 6,592,659 10,272,107 1,453,758 103,792 1,349,966
Deferred other postemployement benefits resources 768,281 880,913 (112,632) 69,915 81,074 (11,159)
Advanced appropriations - State shared tax 2,570,571 2,718,649 (148,078) - - -
Total Deferred Inflows of Resources 20,203,618 10,192,221 10,011,397 1,523,673 184,866 1,338,807
Net Position
Net investment in capital assets 51,429,664 46,316,911 5,112,753 21,303,212 20,657,979 645,233
Restricted 16,485,325 7,253,345 9,231,980 - - -
Unrestricted (3,540,422) (8,288,323) 4,747,901 6,361,197 5,970,660 390,537
Total Net Position 64,374,567$ 45,281,933$ 19,092,634$ 27,664,409$ 26,628,639$ 1,035,770$
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. At December 31, 2021, the City had restricted net position of $16,485,325. The remaining balance
of unrestricted net position ($10,677,175) may be used to meet government’s ongoing obligations to citizens and
creditors.
The government’s net position reflects an increase of $20,128,404. The increase can be attributed to increases in
capital grants and contributions of $9,618,172, charges for services of $2,832,185 and the City realized increased
property tax collections of $1,148,887 in 2021.
25
Governmental Activities. Governmental activities increased the City of Richfield’s net position by $19,092,634 in 2021.
The key elements of this increase are as follows:
City of Richfield’s Changes in Net Position
Increase Increase
2021 2020 (Decrease)2021 2020 (Decrease)
Revenues
Program Revenues
Charges for services 5,856,283$ 4,196,953$ 1,659,330$ 25,199,379$ 24,026,524$ 1,172,855$
Operating grants and contributions 1,456,035 4,238,000 (2,781,965) - - -
Capital grants and contributions 17,781,877 8,163,705 9,618,172 - - -
General Revenues
Taxes
Property taxes 23,332,017 22,183,130 1,148,887 - - -
Other taxes 2,246,806 2,235,139 11,667 - - -
Grants and contributions
not restricted to
specific programs 2,104,750 2,366,046 (261,296) 1,837 - 1,837
Unrestricted investment earnings 48,946 354,715 (305,769) 47,692 86,132 (38,440)
Gain on sale of capital assets 91,592 - 91,592 18,000 - 18,000
Miscellaneous 76,472 833,164 (756,692) - 428,491 (428,491)
Total Revenues 52,994,778 44,570,852 8,423,926 25,266,908 24,541,147 725,761
Expenses
General government 3,591,071 3,443,118 147,953 - - -
Public safety 14,455,290 14,767,550 (312,260) - - -
Public works 8,969,332 11,146,122 (2,176,790) - - -
Culture and recreation 4,666,522 3,426,087 1,240,435 - - -
Community development 1,730,362 1,601,218 129,144 - - -
Interest on long-term debt 1,317,337 1,487,038 (169,701) - - -
Municipal Liquor - - - 12,979,538 12,384,877 594,661
Water and Sewer Utility - - - 8,380,422 8,272,505 107,917
Storm Sewer - - - 2,043,408 2,057,741 (14,333)
Total Expenses 34,729,914 35,871,133 (1,141,219) 23,403,368 22,715,123 688,245
Excess before Transfers 18,264,864 8,699,719 9,565,145 1,863,540 1,826,024 37,516
Transfers 827,770 768,210 59,560 (827,770) (768,210) (59,560)
Change in Net Position 19,092,634 9,467,929 9,624,705 1,035,770 1,057,814 (22,044)
Net Position, January 1 45,281,933 35,814,004 9,467,929 26,628,639 25,570,825 1,057,814
Net Position, December 31 64,374,567$ 45,281,933$ 19,092,634$ 27,664,409$ 26,628,639$ 1,035,770$
Governmental Activities Business-type Activities
• Increase in property tax revenues of $1,148,887.
• Total expenses decreased by $1,141,219 primarily due to a decrease in public works projects as a result of
majority of project costs being incurred in 2020 and an overall general decline in costs during 2021.
26
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
$20,000,000
General
Government
Public Safety Public Works Culture and
Recreation
Community
Development
Interest on
Long-term
Debt
Expenses Program Revenues
Charges for
Services
11.0%
Operating Grants
and
Contributions
2.8%
Capital Grants
and
Contributions
33.6%
Grants and
Contributions
Unrestricted
4.0%
Taxes
48.3%
Other
0.3%
27
Business-type Activities. Business-type activities increased the City’s net position by $1,035,770 in 2021. The increase
can be attributed to improved operating performance of all business-type activities in 2021.
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
Water Sewer Storm Water Management
Expenses Program Revenues
Charges for
Services
99.8%
Unrestricted
Investment
Earnings
0.2%
28
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 $29,037,533 a decrease of $1,408,105 from 2020. This decrease can be attributed to the 77th Street capital
improvement project. Consequently, the year-end balance consists of the following: 0.17 percent ($48,600) are amounts
that are not in spendable form such as prepaid items. 10.64 percent ($3,090,932) constitutes restricted fund balances
which limits the spending of these balances to externally imposed constraints, i.e. debt service covenants. 47.05 percent
($13,661,056) represents committed fund balances which are determined by resolution of the City Council. 19.00 percent
($5,518,491) is classified as assigned. These amounts represent intended uses established by the City Council or by an
official designated by the City Council. Finally, 23.14 percent or ($6,718,454) 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 $10,517,440 while total fund balance was $10,564,929. 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 40.13 percent of total general fund revenues and 39.99 percent of total general fund
expenditures. Moreover, the State Auditor has set a standard that unrestricted, unassigned fund balance should be
between 35 and 50 percent of yearly general fund revenues. The City has adopted a policy that strives to maintain a
minimum fund balance equal to 40 percent of total general fund expenditures. At December 31, 2021 the City of Richfield
the City is right at the fund balance goal.
The City’s fund balance for its general fund increased by $539,439 in 2021. The increase is due to improved tax revenue
received in 2021 and general fund expenditures being below budget projections .
The Ice Arena fund reflects an increase in fund balance of $13,767 in 2021. The increase is due to transfers from the
General Fund and Capital Improvements Fund.
The G.O. Improvement Bonds fund has a fund balance of $5,407,384. The fund balance decreased in 2021 by
$1,712,126 due to the final payment on the Series 2012A bonds in 2021.
The Capital Improvement fund accounts for public improvements and road right-of-way projects undertaken by the City.
This funds fund balance decreased by $950,626. The decrease can be attributed to construction costs for the 77th Street
projects.
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 $701,441 in 2021. The increase can be
attributed to the positive Swimming Pool fund 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 $946,282, for the water and sewer
utility $5,381,690, and for the storm sewer utility $2,138,085. The total increase in net position for liquor operation, the
water and sewer utility, and the storm sewer utility was $187,187, $1,021,405, and $55,708 respectively.
29
Budgetary Highlights
General Fund
As part of the annual budget process, the current general fund revenue and expenditure budgets are revised to reflect a
more accurate picture throughout the current fiscal year. The intent of this annual budget process is for the City to
continue to provide and maintain quality services to its residents while trying to maintain the tax levy at a reasonable level.
For several years, the City has been following a policy under City Council direction to minimize its reliance on Local
Government Aid (LGA). The policy evolved out of the history of volatile budget swings faced by the State of Minnesota in
the past and the impact those budget issues had on cities when the State began to reduce or cut LGA revenues to cities.
However, beginning with the 2021 budget process, it was decided to change the policy and budget for the full 2021
certified amount of LGA.
At the end of 2021 the City’s General Fund realized a surplus of $539,439 to its fund balance. This was accomplished
through increased tax and charges for services revenues, and general fund expenditures being under 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, 2021 amounts to $115,903,985 (net of accumulated depreciation). 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 2021 included the following:
•Construction progress on the 65th Street reconstruction of $613,772.
•Construction progress on the 77th Street project of $5,402,758.
•Completion of the Wood Lake Lift Station project of $968,024.
•Completion of the third phase of the Water Meter Replacement of $657,175.
CITY OF RICHFIELD’S CAPITAL ASSETS
(Net of Depreciation)
Increase Increase
2021 2020 (Decrease)2021 2020 (Decrease)
Land 9,353,605$ 9,353,605$ -$ 638,673$ 638,673$ -$
Buildings and structures 31,918,173 33,110,427 (1,192,254) 3,055,343 3,308,937 (253,594)
Machinery and equipment 8,950,952 9,127,958 (177,006) 5,310,665 5,140,096 170,569
Other improvements 3,304,926 2,809,273 495,653 25,146,275 25,030,317 115,958
Streets (infrastructures)21,546,020 23,805,155 (2,259,135) - - -
Construction in progress 6,663,940 535,594 6,128,346 15,413 137,950 (122,537)
Total 81,737,616$ 78,742,012$ 2,995,604$ 34,166,369$ 34,255,973$ (89,604)$
Governmental Activities Business-type Activities
Additional information on the City’s capital assets can be found in Note 1N and Note 3 Capital Assets in the
accompanying notes to the basic financial statements.
30
Long-term Debt
At the end of the current fiscal year, the City of Richfield had total bonded debt outstanding of $62,897,509. The debt
service for the general obligation redevelopment bonds is provided through the collection of tax increments from Hennepin
County. On an annual basis tax increment proceeds are transferred to meet annual debt service requirements. The
general obligation improvement bonds are serviced by special assessment collections and tax levies.
CITY OF RICHFIELD’S OUTSTANDING DEBT
General Obligation and Revenue Bonds
Increase Increase
2021 2020 (Decrease)2021 2020 (Decrease)
G.O. Redevelopment Bonds 2,715,000$ 3,475,000$ (760,000)$ -$ -$ -$
G.O. Improvement Bonds 46,095,000 50,280,000 (4,185,000) - - -
Revenue Bonds - - - 12,380,000 15,065,000 (2,685,000)
Bond Premium 1,224,352 1,341,351 (116,999) 483,157 562,989 (79,832)
Total 50,034,352$ 55,096,351$ (5,061,999)$ 12,863,157$ 15,627,989$ (2,764,832)$
Governmental Activities Business-type Activities
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 percent of its total
assessed valuation. The current debt limitation for the City of Richfield is $123,231,000, which is in excess of the City of
Richfield’s outstanding general obligation debt.
Additional details of the City’s long-term debt activity can be found in Note 5, Long-Term Liabilities, in the accompanying
notes to the basic financial statements.
Economic Factors and Next Year’s Budgets and Rates
The following items are an integral part of the City’s planning for and dealing with near-term financial issues:
•Over the previous couple of years, the City has seen market values increase with the expectation that they will
continue to increase into 2022. In addition, redevelopment was very strong in 2021, and again expected to be
strong in 2022. These positive trends could slow if there is a severe or extended recession.
•Rates for the Utility operations increased for 2022. For 2022 water rates will increase across the three tier levels by
8 percent. Tier 1 will increase by 0.21 cents per thousand gallons, Tier 2 will increase by 0.25 cents per thousand
gallons, and Tier 3 rates will increase by .30 cents per thousand gallons. In addition, wastewater rates will increase
by 2 percent or 0.12 cents per thousand gallons. Finally, rates for the Storm Sewer Utility will increase by 5 percent
or 1.04 per quarter over 2021 levels.
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.
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32
GOVERNMENT-WIDE FINANIAL STATEMENTS
CITY OF RICHFIELD
RICHFIELD, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2021
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34
CITY OF RICHFIELD, MINNESOTA
STATEMENT OF NET POSITION
DECEMBER 31, 2021
Housing and Economic
Governmental Business-type Redevelopment Development
Activities Activities Total Authority Authority
Assets
Cash and temporary investments 45,024,837$ 7,927,564$ 52,952,401$ 14,959,369$ 808,493$
Receivables
Accrued interest 73,400 10,983 84,383 25,734 1,341
Taxes 227,466 - 227,466 5,970 5,680
Accounts 1,107,029 2,686,387 3,793,416 9,606 -
Special assessments 336,974 380,144 717,118 - -
Due from other governments 11,431,569 2,422 11,433,991 97,882 7,756
Internal balances 2,104,860 (2,104,860) - - -
Due from component unit 567,872 - 567,872 - -
Inventories - 1,305,208 1,305,208 - -
Prepaid items 70,539 40,027 110,566 - -
Assets held for resale - - - 4,071,943 -
Long term second mortgage receivable - - - 2,512,708 669,818
Allowance for uncollectible accounts - - - (2,512,708) (669,818)
Capital assets
Land and construction in progress 16,017,545 654,086 16,671,631 - -
Depreciable assets (net of accumulated depreciation)65,720,071 33,512,283 99,232,354 - -
Total Assets 142,682,162 44,414,244 187,096,406 19,170,504 823,270
Deferred Outflows of Resources
Deferred other postemployment benefits resources 281,160 25,586 306,746 - -
Deferred pension resources 12,291,368 1,129,745 13,421,113 - -
Total Deferred Outflows of Resources 12,572,528 1,155,331 13,727,859 - -
Liabilities
Accounts and contracts payable 1,665,995 1,016,571 2,682,566 103,499 25,132
Accrued salaries payable 771,254 117,523 888,777 - -
Due to other governments 225,888 190,616 416,504 16,922 -
Due to component unit - - - 567,872 -
Accrued interest payable 572,787 132,240 705,027 - -
Deposits payable 599,407 - 599,407 7,050 -
Unearned revenue 1,949,243 - 1,949,243 - -
Long-term liabilities
Due within one year
Long-term liabilities 4,330,848 1,064,348 5,395,196 - -
Due in more than one year
Long-term liabilities 49,133,564 12,130,815 61,264,379 - -
Net pension liability 9,681,578 1,570,495 11,252,073 - -
Other postemployment benefits liability 1,745,941 158,885 1,904,826 - -
Total Liabilities 70,676,505 16,381,493 87,057,998 695,343 25,132
Deferred Inflows of Resources
Deferred pension resources 16,864,766 1,453,758 18,318,524 - -
Deferred other postemployment benefit resources 768,281 69,915 838,196 - -
Advanced appropriations - State shared tax 2,570,571 - 2,570,571 - -
Total Deferred Inflows of Resources 20,203,618 1,523,673 21,727,291 - -
Net Position
Net investment in capital assets 51,429,664 21,303,212 64,876,476 - -
Restricted for
Debt service 5,067,755 - 5,067,755 - -
Capital projects 754,449 - 754,449 3,884,247 -
Grants and donations 10,663,121 - 10,663,121 187,696 -
Unrestricted (3,540,422) 6,361,197 10,677,175 14,403,218 798,138
Total Net Position 64,374,567$ 27,664,409$ 92,038,976$ 18,475,161$ 798,138$
The notes to the financial statements are an integral part of this statement.
35
CITY OF RICHFIELD, MINNESOTA
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED DECEMBER 31, 2021
Operating Capital
Charges for Grants and Grants and
Expenses Services Contributions Contributions
Primary Government
Governmental Activities
General government 3,591,071$ 951,034$ 13,829$ -$
Public safety 14,455,290 500,678 1,204,756 -
Public works 8,969,332 338,892 - 17,781,877
Culture and recreation 4,666,522 1,927,900 237,450 -
Community development 1,730,362 2,137,779 - -
Interest on long-term debt 1,317,337 - - -
Total Governmental Activities 34,729,914 5,856,283 1,456,035 17,781,877
Business-type Activities
Municipal Liquor 12,979,538 13,927,926 - -
Water and Sewer Utility 8,380,422 9,227,632 - -
Storm Sewer 2,043,408 2,043,821 - -
Total Business-type Activities 23,403,368 25,199,379 - -
Total Primary Government 58,133,282$ 31,055,662$ 1,456,035$ 17,781,877$
Component Unit
Housing and Redevelopment Authority 7,512,550$ 7,526$ 4,548,433$ -$
Economic Development Authority 368,506 - - -
Total Component Unit 7,881,056$ 7,526$ 4,548,433$ -$
General Revenues
Taxes
Property taxes, levied for general purposes
Property taxes, levied for debt service
Tax increments
Lodging taxes
Franchise taxes
Grants and contributions not restricted to specific programs
Unrestricted interest (loss) on investments
Gain on sale of capital assets
Miscellaneous
Transfers
Total General Revenues and Transfers
Change in Net Position
Net position, January 1
Net Position, December 31
Functions/Programs
Program Revenues
The notes to the financial statements are an integral part of this statement.
36
Housing and Economic
Governmental Business-type Redevelopment Development
Activities Activities Total Authority Authority
(2,626,208)$ -$ (2,626,208)$
(12,749,856) - (12,749,856)
9,151,437 - 9,151,437
(2,501,172) - (2,501,172)
407,417 - 407,417
(1,317,337) - (1,317,337)
(9,635,719) - (9,635,719)
- 948,388 948,388
- 847,210 847,210
- 413 413
- 1,796,011 1,796,011
(9,635,719) 1,796,011 (7,839,708)
(2,956,591)$ -$
- (368,506)
(2,956,591) (368,506)
19,850,334 - 19,850,334 626,890 537,058
3,481,683 - 3,481,683 - -
- - - 5,818,864 -
4,620 - 4,620 - -
2,242,186 - 2,242,186 - -
2,104,750 1,837 2,106,587 - -
48,946 47,692 96,638 13,056 660
91,592 18,000 109,592 839,103 -
76,472 - 76,472 19,404 2,100
827,770 (827,770) - - -
28,728,353 (760,241) 27,968,112 7,317,317 539,818
19,092,634 1,035,770 20,128,404 4,360,726 171,312
45,281,933 26,628,639 71,910,572 14,114,435 626,826
64,374,567$ 27,664,409$ 92,038,976$ 18,475,161$ 798,138$
Changes in Net Position
Net (Expenses) Revenues and
The notes to the financial statements are an integral part of this statement.
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38
FUND FINANCIAL STATEMENTS
CITY OF RICHFIELD
RICHFIELD, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2021
39
CITY OF RICHFIELD, MINNESOTA
BALANCE SHEET
GOVERNMENTAL FUNDS
DECEMBER 31, 2021
Special Revenue Debt Service Capital Project
Other Total
Ice Improvement Capital Governmental Governmental
General Arena Bonds Improvements Funds Funds
Assets
Cash and temporary investments 8,343,970$ -$ 5,358,019$ 13,694,154$ 7,089,530$ 34,485,673$
Receivables
Accrued interest 12,950 - 7,081 20,734 14,194 54,959
Taxes 189,114 - 35,106 3,246 - 227,466
Accounts 151,497 200,568 - - 717,730 1,069,795
Special assessments 16,008 - 198,052 122,914 - 336,974
Due from other governments 400,504 - 48,284 10,940,944 33,354 11,423,086
Due from other funds 2,997,756 - - - - 2,997,756
Advances to other funds - - - - 537,549 537,549
Prepaid items 47,489 1,666 - - 3,981 53,136
Total Assets 12,159,288$ 202,234$ 5,646,542$ 24,781,992$ 8,396,338$ 51,186,394$
Liabilities
Accounts and contracts payable 591,797 56,661 6,000 873,570 31,981$ 1,560,009$
Accrued salaries payable 698,781 20,146 - - 5,351 724,278
Due to other governments 98,659 7,425 - 79,626 4,643 190,353
Due to other funds - 2,522,106 - - 475,650 2,997,756
Advances from other funds - 921,206 - - 195,440 1,116,646
Deposits payable - - - 569,305 30,102 599,407
Unearned revenue - - - 1,949,243 - 1,949,243
Total Liabilities 1,389,237 3,527,544 6,000 3,471,744 743,167 9,137,692
Deferred Inflows of Resources
Unavailable revenues - delinquent taxes 189,114 - 35,106 3,246 - 227,466
Unavailable revenues - special assessments 16,008 - 198,052 122,914 - 336,974
Advance appropriations - State shared taxes - - - 2,570,571 - 2,570,571
Unavailable revenue - State shared taxes - - - 9,876,158 - 9,876,158
Total Deferred Inflows of Resources 205,122 - 233,158 12,572,889 - 13,011,169
Fund Balances
Nonspendable 47,489 - - - 1,111 48,600
Restricted - - 1,549,520 754,449 786,963 3,090,932
Committed - - 3,396,153 2,926,130 7,338,773 13,661,056
Assigned - - 461,711 5,056,780 - 5,518,491
Unassigned 10,517,440 (3,325,310) - - (473,676) 6,718,454
Total Fund Balances 10,564,929 (3,325,310) 5,407,384 8,737,359 7,653,171 29,037,533
Total Liabilities, Deferred Inflows
of Resources and Fund Balances 12,159,288$ 202,234$ 5,646,542$ 24,781,992$ 8,396,338$ 51,186,394$
The notes to the financial statements are an integral part of this statement.
40
CITY OF RICHFIELD
RECONCILIATION OF THE BALANCE SHEET
TO THE STATEMENT OF NET POSITION
GOVERNMENTAL FUNDS
DECEMBER 31, 2021
Amounts reported for the governmental activities in the statement of net position are different because
Total Fund Balances - Governmental Funds 29,037,533$
Capital assets used in governmental activities are not financial resources and therefore
are not reported as assets in governmental funds.
Cost of capital assets 165,843,072
Less: accumulated depreciation (88,574,751)
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 11,269,188
Allocation of reflect consolidation of internal service fund activities related to enterprise funds 2,104,860
Allocation of reflect consolidation of internal service fund activities related to component unit 567,872
Noncurrent liabilities, including bonds payable, are not due and payable in the current period and
therefore are not reported as liabilities in the funds. Noncurrent liabilities at year-end consist of
Bonds payable (48,810,000)
Plus premium on bonds issued (1,224,352)
Other postemployment benefits payable (1,684,677)
Net pension liability (9,098,798)
Some receivables are not available soon enough to pay for the current period's expenditures,
and therefore are unavailable in the funds.
Delinquent taxes 227,466
Special assessments 336,974
State shared taxes 9,876,158
Governmental funds do not report long-term amounts related to pensions and OPEB.
Deferred outflows other postemployment benefit resources 271,294
Deferred inflows other postemployment benefit resources (741,322)
Deferred outflows of pension resources 11,872,142
Deferred inflows of pension resources (16,325,305)
Governmental funds do not report a liability for accrued interest until due and payable.(572,787)
Total Net Position - Governmental Activities 64,374,567$
The notes to the financial statements are an integral part of this statement.
41
CITY OF RICHFIELD, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2021
Special Revenue Debt Service Capital Project
Other Total
Ice Improvement Capital Governmental Governmental
General Arena Bonds Improvements Funds Funds
Revenues
Taxes 18,938,165$ -$ 3,481,683$ 883,618$ 2,246,806$ 25,550,272$
Licenses and permits 1,695,431 - - - - 1,695,431
Intergovernmental 3,492,120 - - 5,900,286 1,504,586 10,896,992
Charges for services 1,842,554 1,029,353 - - 512,059 3,383,966
Fines and forfeitures 176,642 - - - 54,324 230,966
Special assessments - - 47,796 111,293 - 159,089
Interest (loss) on investments 6,838 - 3,484 10,264 6,978 27,564
Miscellaneous 55,436 67,511 - 137,510 708,813 969,270
Total Revenues 26,207,186 1,096,864 3,532,963 7,042,971 5,033,566 42,913,550
Expenditures
Current
Legislative/executive 941,743 - - - - 941,743
Administrative services 693,573 - - - 594,256 1,287,829
Finance 765,641 - - - - 765,641
Public safety 10,309,436 - - - 141,742 10,451,178
Fire 5,136,190 - - - - 5,136,190
Community development 1,796,086 - - - - 1,796,086
Public works 4,657,771 - - 7,495,490 - 12,153,261
Recreation services 2,000,077 1,061,140 - - 712,588 3,773,805
Capital outlay
Administrative services - - - - 30,001 30,001
Public works - - - 136,317 - 136,317
Recreation services - 324,657 - - 845,418 1,170,075
Debt service
Principal - - 2,800,000 - 760,000 3,560,000
Interest and other charges - 12,300 1,371,619 - 113,380 1,497,299
Total Expenditures 26,300,517 1,398,097 4,171,619 7,631,807 3,197,385 42,699,425
Excess (Deficiency) of Revenues
Over (Under) Expenditures (93,331) (301,233) (638,656) (588,836) 1,836,181 214,125
Other Financing Sources (Uses)
Transfers in 862,770 315,000 1,933,750 1,103,210 1,318,024 5,532,754
Transfers out (230,000) - (1,622,220) (1,465,000) (2,452,764) (5,769,984)
Principal paid on refunded bonds - - (1,385,000) - - (1,385,000)
Total Other Financing Sources (Uses)632,770 315,000 (1,073,470) (361,790) (1,134,740) (1,622,230)
Net Change in Fund Balances 539,439 13,767 (1,712,126) (950,626) 701,441 (1,408,105)
Fund Balances, January 1 10,025,490 (3,339,077) 7,119,510 9,687,985 6,951,730 30,445,638
Fund Balances, December 31 10,564,929$ (3,325,310)$ 5,407,384$ 8,737,359$ 7,653,171$ 29,037,533$
The notes to the financial statements are an integral part of this statement.
42
CITY OF RICHFIELD, MINNESOTA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2021
Amounts reported for governmental activities in the statement of activities are different because
Total Net Change in Fund Balances - Governmental Funds (1,408,105)$
Capital outlays are reported in governmental funds as expenditures. However, in the statement of
activities, the cost of those assets is allocated over the estimated useful lives as depreciation expense.
Capital outlays 7,216,606
Depreciation expense (4,085,630)
The issuance of long-term debt provides current financial resources to governmental funds, while the
repayment of principal of long-term debt consumes the current financial resources of governmental
funds. Neither transaction, however, has any effect on net position. Also, governmental funds report
the effect of premiums, discounts and similar items when debt is first issued, whereas these amounts
are amortized in the statement of activities.
Principal repayments 4,945,000
Current year amortization of bond premium 116,999
Interest on long-term debt in the statement of activities differs from the amount reported in the
governmental fund because interest is recognized as an expenditure in the funds when it is due,
and thus requires the 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.62,964
Internal service funds are used by the City to charge the cost of certain activities, such as insurance and telecommunication
to individual funds. The net revenue (expense) of certain internal service funds is reported with governmental activities
Investment earnings 21,380
Consolidation of internal service fund activities related to governmental activities (1,049,400)
Transfer in 1,065,000
Gain on sale of capital assets 91,592
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.
Special assessments (39,518)
Property taxes 28,551
State shared taxes 9,876,158
Some expenses reported in the statement of activities do not require the use of current financial resources
and therefore are not reported as expenditures in governmental funds.
Other postemployment benefits (47,166)
Long-term pension activity is not reported in governmental funds.
Pension expense 2,195,139
Pension revenue from State contributions 103,064
Change in Net Position - Governmental Activities 19,092,634$
The notes to the financial statements are an integral part of this statement.
43
CITY OF RICHFIELD, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL
GENERAL FUND
FOR THE YEAR ENDED DECEMBER 31, 2021
Actual Variance with
Original Final Amounts Final Budget
Revenues
Taxes 18,621,410$ 18,621,410$ 18,938,165$ 316,755$
Licenses and permits 1,065,000 1,243,000 1,695,431 452,431
Intergovernmental 3,374,170 3,704,350 3,492,120 (212,230)
Charges for services 2,222,900 1,688,790 1,842,554 153,764
Fines and forfeitures 280,000 222,000 176,642 (45,358)
Interest (loss) on investments 30,000 25,000 6,838 (18,162)
Miscellaneous 45,100 45,100 55,436 10,336
Total Revenues 25,638,580 25,549,650 26,207,186 657,536
Expenditures
Current
Legislative/executive 1,044,630 1,008,250 941,743 66,507
Administrative services 908,360 836,330 693,573 142,757
Finance 743,050 755,000 765,641 (10,641)
Public safety 10,447,080 10,484,860 10,309,436 175,424
Fire 4,995,480 4,995,320 5,136,190 (140,870)
Community development 1,697,080 1,800,220 1,796,086 4,134
Public works 4,590,640 4,713,500 4,657,771 55,729
Recreation services 2,078,350 2,069,940 2,000,077 69,863
Total Expenditures 26,504,670 26,663,420 26,300,517 362,903
Excess (Deficiency) of Revenues
Over (Under) Expenditures (866,090) (1,113,770) (93,331) 1,020,439
Other Financing Sources (Uses)
Transfers in 1,096,090 1,343,770 862,770 (481,000)
Transfers out (230,000) (230,000) (230,000) -
Total Financing Sources (Uses)866,090 1,113,770 632,770 (481,000)
Net Change in Fund Balances - - 539,439 539,439
Fund Balances, January 1 10,025,490 10,025,490 10,025,490 -
Fund Balances, December 31 10,025,490$ 10,025,490$ 10,564,929$ 539,439$
Budgeted Amounts
The notes to the financial statements are an integral part of this statement.
44
CITY OF RICHFIELD, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL
ICE ARENA SPECIAL REVENUE FUND
FOR THE YEAR ENDED DECEMBER 31, 2021
Actual Variance with
Original Final Amounts Final Budget
Revenues
Charges for services 1,143,810$ 1,096,410$ 1,029,353$ (67,057)$
Miscellaneous - 5,090 67,511 62,421
Total Revenues 1,143,810 1,101,500 1,096,864 (4,636)
Expenditures
Current
Recreation services
Personnel services 560,330 564,170 547,666 (16,504)
Other services and charges 450,390 417,630 513,474 95,844
Capital outlay
Culture and recreation - 324,660 324,657 (3)
Debt service
Interest and other charges 12,300 12,300 12,300 -
Total Expenditures 1,023,020 1,318,760 1,398,097 79,337
Excess (Deficiency) of Revenues
Over (Under) Expenditures 120,790 (217,260) (301,233) 74,701
Other Financing Sources
Transfers in 115,000 315,000 315,000 -
Net Change in Fund Balances 235,790 97,740 13,767 74,701
Fund Balances, January 1 (3,339,077) (3,339,077) (3,339,077) -
Fund Balances, December 31 (3,103,287)$ (3,241,337)$ (3,325,310)$ 74,701$
Budget Amounts
The notes to the financial statements are an integral part of this statement.
45
Governmental
Activities -
Municipal Water and Storm Internal
Liquor Sewer Utility Sewer Total Service Funds
Assets
Current Assets
Cash and temporary investments 1,152,068$ 4,934,791$ 1,840,705$ 7,927,564$ 10,539,164$
Receivables
Accrued interest 1,910 6,085 2,988 10,983 18,441
Accounts 91 2,236,502 449,794 2,686,387 37,234
Special assessments - 44,539 - 44,539 -
Due from other governments 1,425 997 - 2,422 8,483
Due from other funds - - - - -
Advances to other funds - - - - 67,427
Inventories 1,305,208 - - 1,305,208 -
Prepaid items 28,548 11,016 463 40,027 17,403
Total Current Assets 2,489,250 7,233,930 2,293,950 12,017,130 10,688,152
Long-term Assets
Advances to other funds - - - - 511,670
Special assessments - 335,605 - 335,605 -
Capital assets
Land 499,188 53,550 85,935 638,673 -
Construction in progress 9,335 - 6,078 15,413 119,127
Buildings and systems 6,430,344 18,542,740 1,815,699 26,788,783 11,818,515
Distribution and collection systems - 26,282,805 23,003,898 49,286,703 -
Total Capital Assets 6,938,867 44,879,095 24,911,610 76,729,572 11,937,642
Less accumulated depreciation (3,118,944) (26,341,802) (13,102,457) (42,563,203) (7,468,347)
Net Capital Assets 3,819,923 18,537,293 11,809,153 34,166,369 4,469,295
Total Long-term Assets 3,819,923 18,872,898 11,809,153 34,501,974 4,980,965
Total Assets 6,309,173 26,106,828 14,103,103 46,519,104 15,669,117
Deferred Outflows of Resources
Deferred other postemployment benefits resources 11,117 14,469 - 25,586 9,866
Deferred pension resources 522,702 578,801 28,242 1,129,745 419,226
Total Deferred Outflows of Resources 533,819 593,270 28,242 1,155,331 429,092
Business-type Activities - Enterprise Funds
CITY OF RICHFIELD
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
DECEMBER 31, 2021
The notes to the financial statements are an integral part of this statement.
46
Governmental
Activities -
Municipal Water and Storm Internal
Liquor Sewer Utility Sewer Total Service Funds
Liabilities
Current Liabilities
Accounts and contracts payable 223,642$ 749,573$ 43,356$ 1,016,571$ 105,986$
Accrued salaries payable 55,924 57,233 4,366 117,523 46,976
Due to other governments 141,926 48,690 - 190,616 35,535
Accrued interest payable - 74,806 57,434 132,240 -
Compensated absences payable - current portion 49,232 54,064 1,052 104,348 570,848
Bonds payable - current portion - 535,000 425,000 960,000 -
Total Current Liabilities 470,724 1,519,366 531,208 2,521,298 759,345
Long-term Liabilities
Compensated absences payable 107,411 117,950 2,297 227,658 1,745,568
Claims and judgements - - - - 1,113,644
Bonds payable - 6,211,763 5,691,394 11,903,157 -
Net pension liability 726,625 804,610 39,260 1,570,495 582,780
Other postemployment benefits payable 69,035 89,850 - 158,885 61,264
Total Long-term Liabilities 903,071 7,224,173 5,732,951 13,860,195 3,503,256
Total Liabilities 1,373,795 8,743,539 6,264,159 16,381,493 4,262,601
Deferred Inflows of Resources
Deferred other postemployment benefit resources 30,378 39,537 - 69,915 26,959
Deferred pension resources 672,614 744,802 36,342 1,453,758 539,461
Total Deferred Inflows of Resources 702,992 784,339 36,342 1,523,673 566,420
Net Position
Net investment in capital assets 3,819,923 11,790,530 5,692,759 21,303,212 4,469,295
Unrestricted 946,282 5,381,690 2,138,085 8,466,057 6,799,893
Total Net Position 4,766,205$ 17,172,220$ 7,830,844$ 29,769,269 11,269,188$
Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds (2,104,860)
Net position of business-type activities 27,664,409$
CITY OF RICHFIELD
STATEMENT OF NET POSITION (CONTINUED)
PROPRIETARY FUNDS
DECEMBER 31, 2021
Business-type Activities - Enterprise Funds
The notes to the financial statements are an integral part of this statement.
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48
Governmental
Activities -
Municipal Water and Storm Internal
Liquor Sewer Utility Sewer Total Service Funds
Operating Revenues
Charges for services 13,916,528$ 9,220,649$ 1,869,763$ 25,006,940$ -$
Less: cost of sales (10,355,772) - - (10,355,772) 4,265,328
Total Operating Revenues 3,560,756 9,220,649 1,869,763 14,651,168 4,265,328
Operating Expenses
Personnel services 1,652,326 2,217,111 444,042 4,313,479 1,668,182
Other services and charges 660,389 4,403,582 729,657 5,793,628 2,932,158
Depreciation 245,423 1,485,402 737,022 2,467,847 983,549
Total Operating Expenses 2,558,138 8,106,095 1,910,721 12,574,954 5,583,889
Operating Income (loss)1,002,618 1,114,554 (40,958) 2,076,214 (1,318,561)
Nonoperating Revenues (Expenses)
Intergovernmental - 1,837 - 1,837 -
Interest (loss) on investments 941 45,282 1,469 47,692 21,380
Miscellaneous revenues 11,398 6,983 174,058 192,439 7,215
Gain on sale of capital assets - - 18,000 18,000 91,592
Interest and amortization expense - (147,251) (96,861) (244,112) -
Total Nonoperating
Revenues (Expenses)12,339 (93,149) 96,666 15,856 120,187
Income (Loss) Before Contributions
and Transfers 1,014,957 1,021,405 55,708 2,092,070 (1,198,374)
Transfers In - - - - 1,106,000
Transfers Out (827,770) - - (827,770) (41,000)
Total Transfers and Contributions (827,770) - - (827,770) 1,065,000
Change in Net Position 187,187 1,021,405 55,708 1,264,300 (133,374)
Net Position - January 1 4,579,018 16,150,815 7,775,136 28,504,969 11,402,562
Net Position, December 31 4,766,205$ 17,172,220$ 7,830,844$ 29,769,269 11,269,188$
Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds (228,530)
Change in net position of business-type activities 1,035,770$
CITY OF RICHFIELD, MINNESOTA
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2021
Business-type Activities - Enterprise Funds
The notes to the financial statements are an integral part of this statement.
49
Governmental
Activities -
Municipal Water and Storm Internal
Liquor Sewer Utility Sewer Total Service Funds
Cash Flows from Operating Activities
Receipts from customers and users 13,916,437$ 9,262,110$ 1,854,008$ 25,032,555$ 4,249,452$
Other operating receipts 11,398 6,983 174,058 192,439 7,215
Payments to suppliers (11,025,086) (4,252,978) (728,598) (16,006,662) (2,720,459)
Payments to employees (1,688,555) (2,273,246) (438,675) (4,400,476) (1,783,519)
Net Cash Provided (Used) by
Operating Activities 1,214,194 2,742,869 860,793 4,817,856 (247,311)
Cash Flows from Noncapital
Financing Activities
Receipts on interfund balances - - - - 66,093
Increase (decrease) in due to other funds - 2,075 - 2,075 -
Increase (decrease) in due from component unit (256) - - (256) -
Transfers from other funds - - - - 1,106,000
Transfers to other funds (827,770) - - (827,770) (41,000)
Net Cash Provided (Used) by
Noncapital Financing Activities (828,026) 2,075 - (825,951) 1,131,093
Cash Flows from Capital and
Related Financing Activities
Acquisition of capital assets (9,335) (1,450,173) (918,735) (2,378,243) (853,558)
Proceeds from sale of capital assets - - 18,000 18,000 96,973
Intergovernmental - 1,837 - 1,837 -
Interest paid on debt - (200,421) (156,627) (357,048) -
Principal paid on bonds - (490,000) (2,195,000) (2,685,000) -
Net Cash Provided (Used) by Capital
and Related Financing Activities (9,335) (2,138,757) (3,252,362) (5,400,454) (756,585)
Cash Flows from Investing Activities
Investment receipts (968) 39,200 (1,518) 36,714 2,936
Net Increase (Decrease) in
Cash and Cash Equivalents 375,865 645,387 (2,393,087) (1,371,835) 130,133
Cash and Cash Equivalents, January 1 776,203 4,289,404 4,233,792 9,299,399 10,409,031
Cash and Cash Equivalents, December 31 1,152,068$ 4,934,791$ 1,840,705$ 7,927,564$ 10,539,164$
CITY OF RICHFIELD, MINNESOTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2021
Business-type Activities - Enterprise Funds
The notes to the financial statements are an integral part of this statement.
50
Governmental
Activities -
Municipal Water and Storm Internal
Liquor Sewer Utility Sewer Total Service Funds
Reconciliation of Operating Income (Loss)
to Net Cash Provided (Used) by Operating Activities
Operating income (loss)1,002,618$ 1,114,554$ (40,958)$ 2,076,214$ (1,318,561)$
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities
Depreciation 245,423 1,485,402 737,022 2,467,847 983,549
Other income related to operations 11,398 6,983 174,058 192,439 7,215
(Increase) decrease in assets/deferred
outflows of resources
Receivables
Accounts receivable (91) (41,188) (15,755) (57,034) (18,399)
Due from other governments - 17,341 - 17,341 2,523
Special assessments - 65,308 - 65,308 -
Inventories (53,852) - - (53,852) -
Prepaid items (12,088) (11,016) (463) (23,567) (17,403)
Deferred OPEB resources (2,079) (1,297) - (3,376) (2,154)
Deferred pension resources (433,473) (477,237) (24,236) (934,946) (346,867)
Increase (decrease) in liabilities/deferred
inflows of resources
Accounts and contracts payable 56,860 154,305 1,522 212,687 (138,099)
Accrued salaries payable 7,223 4,704 2,106 14,033 10,028
Due to other governments 155 7,315 - 7,470 35,535
Compensated absences payable 8,648 10,874 (2,676) 16,846 (74,322)
Claims and judgements - - - - 331,666
Net pension liability (237,747) (293,072) (4,035) (534,854) (199,250)
Other postemployment benefits payable 3,222 13,271 - 16,493 2,704
Deferred pension resources 625,071 690,687 34,208 1,349,966 500,907
Deferred OPEB resources (7,094) (4,065) - (11,159) (6,383)
Net Cash Provided (Used) by
Operating Activities 1,214,194$ 2,742,869$ 860,793$ 4,817,856$ (247,311)$
Schedule of Noncash Capital and
Related Financing Activities
Amortization of bond premium -$ 33,400$ 46,431$ 79,831$ -$
Book value of assets disposed - - - - 5,381
Business-type Activities - Enterprise Funds
FOR THE YEAR ENDED DECEMBER 31, 2021
CITY OF RICHFIELD, MINNESOTA
STATEMENT OF CASH FLOWS (CONTINUED)
PROPRIETARY FUNDS
The notes to the financial statements are an integral part of this statement.
51
Custodial
Fund
Assets
Cash and temporary investments 3,453$
Receivables
Accrued interest 212
Total Assets 3,665$
Liabilities
Due to other governments 3,560$
Net Position
Restricted 105
Total Net Position 105$
CITY OF RICHFIELD, MINNESOTA
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
DECEMBER 31, 2021
The notes to the financial statements are an integral part of this statement.
52
Custodial
Fund
Additions
Interest (loss) on investments 105$
License fee collections for State of Minnesota 19,209,122
Total Additions 19,209,227
Deductions
Payments to State of Minnesota 19,209,122
Net Increase (Decrease) in Fiduciary Net Position 105
Net Position - Beginning -
Net Position - Ending 105$
CITY OF RICHFIELD, MINNESOTA
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2021
The notes to the financial statements are an integral part of this statement.
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54
CITY OF RICHFIELD, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2021
1. 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:
A. 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 State 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.
The EDA was established May 9, 2017 per Minnesota State Statutes, Sections 469.090 through 469.108 and some but
not all of the powers of a housing and redevelopment authority under Minnesota Statutes, Sections 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 lar ge 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 prog ram,
Transformation Loan program, apartment remodeling programs and business development programing.
55
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.
B. Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of activities) report
information on all of the nonfiduciary activities of the 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 ch arges 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.
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources measurement focus and the
accrual basis of accounting, as are the Proprietary Fund 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 requir ements imposed by the provider have been met. Agency funds,
however, are unlike all other funds, reporting only assets and liabilities. So agency funds cannot be said to have a
measurement focus. They do, however, use the accrual basis of accounting to rec ognize receivables and payables.
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 ava ilable.
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, spec ial 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.
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The government reports the following major governmental funds:
The General 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.
The Ice Arena Fund accounts for the revenues earned and other resources generated by the operation of the City’s
two sheet ice arena facility.
The Improvement Bond Debt Service Fund is used for the accumulation of resources for payment of principal and
interest for outstanding general obligation issues.
The Capital Improvement Capital Projects Fund is used to account for projects related to public improvement within
the City.
The government reports the following major proprietary funds:
The Municipal Liquor Fund accounts for the operations of the four municipal liquor stores operated by the City.
The Water and Sewer Utility Fund accounts for the water and sewer service charges which are used to finance the
water system and sanitary sewer system operating expenses.
The Storm Sewer 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 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 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 &
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 o f 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.
D. Budgets
Budgets for the General Fund and Special Revenue Funds, excluding the 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.
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, 2021 there a re no significant encumbrances outstanding
in any major or nonmajor fund.
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E. 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 Cou ncil 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 2021 the General Fund budget was amended to decrease budgeted revenues by $88,930, increase
budgeted expenditures by $158,750 and increase budgeted transfer in by $247,680. The City Manager is
authorized to transfer budgeted amounts between divisions within any department; however, any revisions that
alter the total expenditures of any department must be approved by the City Council with formal adoption by
resolution. All budgeted appropriations lapse at the end of the year.
5. Expenditures may not legally exceed budgeted appropriations at the total department level. Monitoring of
budgets is maintained at the expenditure category (i.e., salaries, wages, and benefits; material, supplies, and
services; and capital outlay) within each activity. Budgetary monitoring, by departments or divisions and by
category, is required by the City Charter.
F. Excess of Expenditures Over Appropriations
Expenditures exceeded appropriations (budget) in the following individual funds for the year ended
December 31, 2021:
Excess of
Expenditures
Over
Budget Actual Appropriations
Major
Ice Arena 1,318,760$ 1,398,097$ 79,337$
Fund
G. Deficit Fund Equity
The following funds had fund equity deficits as December 31, 2021:
Amount
Major
Ice Arena 3,325,310$
Nonmajor Governmental
Swimming pool 473,676
Fund
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H. 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.
Short-Term Interfund and Primary Government/Component Unit Receivable/Payables
During the course of operations, numerous transactio ns 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.
I. 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 itsel f,
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 Decem ber are received the following
January. The City has no ability to enforce payment of property taxes by property owners. The County possesses
this authority.
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.
Governmental Fund Financial Statements
The City recognizes property tax revenue when it becomes both measurable and available to finance expendi tures 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.
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J. 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.
Once a special assessment roll is adopted, the amount attributed to each parcel is a lien upon t hat 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.
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.
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. I n 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 reco gnized 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.
K. 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.
L. 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.
M. 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.
N. 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.
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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 years
Machinery and equipment 3 - 15 years
Furniture and fixtures 10 years
Other improvements 10 - 50 years
Storm sewers 25 - 30 years
Streets 25 years
Street lights 25 years
Distribution and collection systems 30 - 50 years
O. 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.
P. 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 dis counts 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.
Q. 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 o n 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 accor dance with the
benefit terms. Investments are reported at fair value.
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R. 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 - Consists of amounts that are not in spendable form, such as prepaid items, inventory, and other
long-term assets.
Restricted - Consists of amounts related to externally imposed constraints established by creditors, grantors, or
contributors; or constraints imposed by state statutory provisions.
Committed - Consists of internally imposed constraints that are established by resolution of the City Council. Those
committed amounts cannot be used for any other purpose unless the City Council removes or chang es the specified
use by taking the same type of action it employed to previously commit those amounts.
Assigned - Consists of internally imposed constraints. These constraints consist of amounts intended to be used
by the City for specific purposes but do not meet the criteria to be classified as restricted or committed. In
governmental funds, assigned amounts represent intended uses established by the governing body itself or by an
official to which the governing body delegates the authority. Pursuant to City Council resolution, the City’s Finance
Manager is authorized to establish assignments of fund balance.
Unassigned - The residual classification for the General Fund which also reflects negative residual amounts in other
funds.
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.
S. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows
of resources. This separate financial statement element represents a consumption of net position that applies to a future
period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until that time. The City 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 r eport a separate
section for deferred inflows of resources. This separate financial statement element represents an acquisition of net
position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that
time. The City has two items that qualify for reporting in this category. The City presents deferred inflows of resources
on the Governmental Fund Balance sheet as unavailable revenue. 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 and pensions and OPEB for various estimate differences that will be amortized and recognized over future years.
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T. 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 $7,856,400
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.”
U. 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.
V. 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.
W. Reclassified
Certain 2020 amounts have been reclassified to conform to the 2021 presentation.
X. 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.
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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:
a) Direct obligations or obligations guaranteed by the United States or its agencies.
b) Shares of investment companies registered under the Federal Investment Company Act of 1940 and whose
only investments are in securities described in a) above.
c) General obligations of the State of Minnesota or any of its municipalities.
d) Bankers’ acceptances of United States banks eligible for purchase by the Federal Reserve System.
e) Commercial paper, issued by United States corporations of their Canadian subsidiaries, of the highest quality,
and maturing in 270 days or less.
f) 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.
g) 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.
h) 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.
The City’s investments are categorized by level of risk as provided in GASB Statement No. 40, D eposit and Investment
Risk Disclosures, in the following manner:
Custodial Credit Risk - For investments, this is the risk that in the event of a failure of the counterparty to an
investment transaction (typically a broker-dealer) the City would not be able to recover the value of its investments
or collateral securities that are in the possession of an outside party. The City’s investment p olicies 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 th e
City, HRA and EDA are secured through a third party custody and safekeeping arrangement.
Interest Rate 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 credit 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 acc ordance 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. The City’s investment in the 4M Fund at December 31, 2021 is $14,938,231.
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In accordance with GASB Statement No. 79, the Minnesota Municipal Investment Pool securities are valued at
amortized cost, which approximates fair value. There are no restrictions or limitations on withdrawals from the 4M Liquid
Asset Fund. Investments in the 4M Plus must be deposited for a minimum of 14 calendar days. Withdrawal prior to the
14-day restriction period will be subject to a penalty equal to seven days interest on the amount withdrawn. Seven days’
notice of redemption is required for withdrawa ls of investments in the 4M Term Series withdrawn prior to the maturity
date of that series. A penalty could be assessed as necessary to recoup the Series for any charges, losses, and other
costs attributable to the early redemption.
Money market mutual funds invested as part of the City’s trust arrangement at Wells Fargo are consist entirely of money
market 2a7 funds and is unrated.
Concentration of Credit Risk – The City’s investment policy places no limit on the amount the City may invest in any
one issuer. Investments in Federal Home Loan Mortgage Corporation and Federal National Mortgage Association
government securities exceed 5% of pooled investments.
The following is a summary of the City’s, HRA’s and EDA’s investments, stated at fair value. The majority of the HRA
and EDA investments are in the investment pool of the City. Therefore, the HRA and EDA investments are not
segregated for disclosure. Nonpooled investments relate to the 2020A bond issuance.
As of December 31, 2021, the City, HRA and EDA had the following investments and maturities:
Investment Maturities (In Years)
Moody's % of Fair Less Years Years
Ratings Total Value Than 1 Year 1-5 6-10
Pooled Investments
U.S. Agencies
Federal Home Loan Mortgage Corporation AAA 1.46%1,000,250$ 1,000,250$ -$ -$
Federal National Mortgage Association AAA 9.81%6,719,230 6,719,230 - -
Federal Farm Credit AAA 4.38%2,998,310 999,970 1,998,340 -
U.S. Treasury Bonds AAA 34.45%23,589,762 21,597,302 1,992,460 -
Money Markets
Money Market Mutual Fund Investments NR 28.08%19,222,881 19,222,881 - -
External Investment Pool NR 21.82%14,938,231 14,938,231 - -
Total Pooled Investments 100.00%68,468,664 64,477,864 3,990,800 -
Non-pooled Investment
External Investment Pool NR 100.00%255,052 255,052 - -
Total Investments 68,723,716$ 64,732,916$ 3,990,800$ -$
Types of Investments
The City has the following recurring fair value measurements as of December 31, 2021:
•$41,702,880 of investments are valued using a quoted market prices (Level 1 inputs)
•$10,717,790 of investments are valued using a matrix pricing model (Level 2 inputs)
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3. Capital Assets
Capital asset activity for the year ended December 31, 2021:
Beginning Ending
Balance Increases Decreases Balance
Governmental Activities
Capital Assets not Being Depreciated
Land 9,353,605$ -$ -$ 9,353,605$
Construction in progress 535,594 6,194,457 (66,111) 6,663,940
Total Capital Assets not
Being Depreciated 9,889,199 6,194,457 (66,111) 16,017,545
Capital Assets Being Depreciated
Buildings and structures 50,005,128 - - 50,005,128
Machinery and equipment 18,564,273 1,125,199 (319,105) 19,370,367
Other improvments 7,287,318 816,619 - 8,103,937
Streets (Infrastructures)84,276,830 - - 84,276,830
Total Capital Assets
Being Depreciated 160,133,549 1,941,818 (319,105) 161,756,262
Less Accumulated Depreciation for
Buildings and structures (16,894,701) (1,192,254) - (18,086,955)
Machinery and equipment (9,436,315) (1,296,824) 313,724 (10,419,415)
Other improvments (4,478,045) (320,966) - (4,799,011)
Streets (Infrastructures)(60,471,675) (2,259,135) - (62,730,810)
Total Accumulated Depreciation (91,280,736) (5,069,179) 313,724 (96,036,191)
Depreciated, Net 68,852,813 (3,127,361) (5,381) 65,720,071
Governmental Activities
Capital Assets, Net 78,742,012$ 3,067,096$ (71,492)$ 81,737,616$
Total Capital Assets Being
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Beginning Ending
Balance Increases Decreases Balance
Business-type Activities
Capital Assets not Being Depreciated
Land 638,673$ -$ -$ 638,673$
Construction in progress 137,950 15,413 (137,950) 15,413
Total Capital Assets not
Being Depreciated 776,623 15,413 (137,950) 654,086
Capital Assets Being Depreciated
Buildings and structures 10,496,348 - - 10,496,348
Machinery and equipment 14,314,765 818,438 (61,942) 15,071,261
Other improvements 48,825,536 1,682,342 - 50,507,878
Total Capital Assets
Being Depreciated 73,636,649 2,500,780 (61,942) 76,075,487
Less Accumulated Depreciation for
Buildings and structures (7,187,411) (253,594) - (7,441,005)
Machinery and equipment (9,174,669) (647,869) 61,942 (9,760,596)
Other improvements (23,795,219) (1,566,384) - (25,361,603)
Total Accumulated Depreciation (40,157,299) (2,467,847) 61,942 (42,563,204)
Total Capital Assets Being
Depreciated, Net 33,479,350 32,933 - 33,512,283
Business-type Activities
Capital Assets, Net 34,255,973$ 48,346$ (137,950)$ 34,166,369$
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 expense was charged to functions/programs of the primary government as follows:
Governmental Activities
General Government 491,904$
Public Safety 129,092
Public Works, including depreciation of general infrastructure assets 2,602,001
Culture and Recreation 862,633
Internal service funds 983,549
Total Depreciation Expense - Governmental Activities 5,069,179$
Business-type Activities
Municipal Liquor 245,423$
Water and Sewer Utility 1,485,402
Storm Sewer 737,022
Total Depreciation Expense - Business-type Activities 2,467,847$
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At December 31, 2021, 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 22,305,713$ 17,558,259$
Project
4. 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 2021. Finally, settled claims have not exceeded this commercial coverage in any of the past three fisc al 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 $1,113,644 reported in the fund at December 31, 2021 is based on the requirements
of Governmental Accounting Standards Board Statement No. 10 which requires a liability for claims reported if it is
probable that a liability has been incurred at the date of the financial statements and the amount of loss can be
reasonably estimated.
Liabilities of the fund are reported when it is probable that a loss has occurred and the amount of the loss can be
reasonably estimated. Liabilities include an amount for claims that have been incurred but not reported (IBNRs). The
result of the process to estimate the claims liability is not an exact amount as it depends on many complex factors, such
as inflation, changes in legal doctrines, and damage awards. Accordingly, claims a re reevaluated periodically to
consider the effects of inflation, recent claim settlement trends (including frequency and amount of pay -outs), and other
economic and social factors. The estimate of the claims liability also includes amounts for incrementa l claim adjustment
expenses related to specific claims and other claim adjustment expenses regardless of whether allocated to specific
claims. Estimated recoveries, for example from salvage or subrogation, are another component of the claims liability
estimate.
A summary of the claims and judgments liability amount at December 31, 2021 and 2020 are as follows:
Current Year
Beginning Claims and Balance at
of Fiscal Year Changes Claim Fiscal
Liability in Estimates Payments-Net Year End
2020 457,172$ 583,154$ (258,348)$ 781,978$
2021 781,978 630,463 (298,797) 1,113,644
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5. Long-Term Liabilities
The City issues general obligation bonds and capital notes 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.
Governmental Activities
As of December 31, 2021, 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$ 1,715,000$
G.O. Tax Increment Refunding
Bonds, 2012B 2.25 09/06/12 02/01/25 2,970,000 1,000,000
Total Redevelopment Bonds 2,715,000
Improvement Bonds
G.O. Improvement
Bonds, Series 2013A 2.18 03/21/13 02/01/34 3,120,000 1,682,056
G.O. Street Reconstruction
Bonds, Series 2015A 2.71 06/04/15 02/01/36 9,100,000 7,196,121
G.O. Refunding Bonds, Series 2016B 1.58 11/17/16 02/01/28 5,085,000 3,584,883
G.O. Refunding Bonds, Series 2016C 2.04 12/15/16 02/01/29 6,130,000 5,129,117
G.O. Street Reconstruction
Bonds, Series 2017A 2.49 04/20/17 02/01/38 9,130,000 8,204,092
G.O. Capital Improvement Refunding
Bonds, Series 2017B 2.17 12/14/17 02/01/29 3,045,000 2,484,253
G.O. Street Reconstruction
Bonds, Series 2018A 3.10 05/31/18 02/01/39 9,770,000 9,151,385
G.O. Bonds, Series 2019A 2.63 06/06/19 02/01/40 5,290,000 5,372,725
G.O. Bonds, Series 2020A 1.91 05/14/20 02/01/41 2,995,000 3,098,877
G.O. Refunding Bonds, Series 2020B 1.09 11/19/20 02/01/33 1,370,000 1,415,843
Total Improvement Bonds 47,319,352
Total Governmental Indebtedness 50,034,352$
Enterprise Bonds
G.O. Refunding Bonds, Series 2015B 1.74 11/10/15 02/01/27 5,360,000 3,274,940$
G.O. Storm Water Bonds, Series 2016A 2.18 05/19/16 02/01/37 2,970,000 2,557,282
G.O. Bonds, Series 2019A 2.63 06/06/19 02/01/40 3,035,000 3,083,708
G.O. Bonds, Series 2020A 1.91 05/14/20 02/01/41 2,125,000 2,148,832
G.O. Refunding Bonds, Series 2020B 1.09 11/19/20 02/01/33 1,740,000 1,798,395
Total Enterprise Bonds 12,863,157$
Total City Indebtedness 62,897,509$
Net
Interest
Rate
69
Annual debt service requirements to maturity for general obligation bonds are as follows:
Year Ending
December 31,Principal Interest Total
2022 790,000$ 84,528$ 874,528$
2023 815,000 56,772 871,772
2024 850,000 24,256 874,256
2025 260,000 3,738 263,738
Total 2,715,000$ 169,294$ 2,884,294$
Redevelopment Bonds
Year Ending
December 31,Principal Interest Total
2022 2,970,000$ 1,241,586$ 4,211,586$
2023 3,055,000 1,157,169 4,212,169
2024 3,155,000 1,068,389 4,223,389
2025 3,255,000 976,744 4,231,744
2026 3,340,000 886,654 4,226,654
2027 - 2031 14,345,000 3,151,239 17,496,239
2032 - 2036 10,745,000 1,511,707 12,256,707
2037 - 2041 5,230,000 260,580 5,490,580
Total 46,095,000$ 10,254,068$ 56,349,068$
Improvement Bonds
Year Ending
December 31,Principal Interest Total
2022 535,000$ 171,700$ 706,700$
2023 555,000 154,525 709,525
2024 580,000 136,650 716,650
2025 600,000 119,950 719,950
2026 610,000 104,700 714,700
2027 - 2031 1,635,000 351,450 1,986,450
2032 - 2036 1,030,000 187,650 1,217,650
2037 - 2041 915,000 54,167 969,167
Total 6,460,000$ 1,280,792$ 7,740,792$
Water and Sewer
Year Ending
December 31,Principal Interest Total
2022 425,000$ 132,370$ 557,370$
2023 445,000 120,295 565,295
2024 455,000 107,845 562,845
2025 470,000 95,845 565,845
2026 480,000 84,995 564,995
2027 - 2031 1,875,000 295,240 2,170,240
2032 - 2036 1,390,000 129,280 1,519,280
2037 - 2040 380,000 14,423 394,423
Total 5,920,000$ 980,293$ 6,900,293$
Storm Sewer
70
Change in Long-Term Liabilities
Long-term liability activity for the year ended December 31, 2021, was as follows:
Beginning Ending Due Within
Balance Increases Decreases Balance One Year
Governmental Activities
Bonds Payable
Redevelopment Bonds 3,475,000$ -$ (760,000)$ 2,715,000$ 790,000$
Improvement Bonds 50,280,000 - (4,185,000) 46,095,000 2,970,000
Bond premium 1,341,351 - (116,999) 1,224,352 -
Total Bonds Payable 55,096,351 - (5,061,999) 50,034,352 3,760,000
Claims and judgements 781,978 630,463 (298,797) 1,113,644 -
Compensated Absences Payable 2,390,738 2,243,383 (2,317,705) 2,316,416 570,848
Governmental Activity
Long-term Liabilities 58,269,067$ 2,873,846$ (7,678,501)$ 53,464,412$ 4,330,848$
Business-type Activities
Bonds Payable
Storm Sewer Revenue Bonds 4,520,000$ -$ (2,030,000)$ 2,490,000$ 130,000$
G.O. Bonds 5,160,000 - (180,000) 4,980,000 225,000
G.O. Refunding Bonds 5,385,000 - (475,000) 4,910,000 605,000
Bond premium 562,989 - (79,832) 483,157 -
Total Bonds Payable 15,627,989 - (2,764,832) 12,863,157 960,000
Compensated Absences Payable 315,159 327,829 (310,982) 332,006 104,348
Business-type Activity
Long-term Liabilities 15,943,148$ 327,829$ (3,075,814)$ 13,195,163$ 1,064,348$
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, 2021 is backed by the full faith and credit of the City, including special assessment and revenue bond
issues. Special assessment receivable at December 31, 2021 totaled $336,974.
Revenue Pledged
Future revenue pledged for the payment of long-term debt is as follows:
Percent of Remaining Principal Pledged
Use of Total Debt Term of Principal and Interest Revenue
Proceeds Type Service Pledge and Interest Paid Received
G.O. Refunding Bonds, Utility Utility
Series 2015B Infrastructure Charges 100%2016-2027 3,388,825$ 560,675$ 6,234,790$
G.O. Storm Water Bonds, Utility Utility
Series 2016A Infrastructure Charges 100%2017-2037 2,990,298 186,940 1,869,763
G.O. Bonds Utility Utility
Series 2019A Infrastructure Charges 100%2020-2040 3,881,700 203,700 11,090,412
G.O. Bonds,Utility Utility
Series 2020A Infrastructure Charges 100%2021-2041 2,468,618 141,033 4,365,027
G.O. Refunding Bonds, Utility Utility
Series 2020B Infrastructure Charges 100%2021-2033 1,911,645 29,091 1,869,763
Revenue Pledged Current Year
Bond Issue
71
6. Interfund Balances and Transactions
Interfund transfers as of December 31, 2021 are as follows:
Ice Improvement Captial Nonmajor Internal
General Arena Bond Improvements Governmental Service Funds Total
Transfer Out
General -$ 115,000$ -$ -$ 115,000$ -$ 230,000$
Improvement Bond 435,000 - 1,184,010 3,210 - - 1,622,220
Capital Improvements - 200,000 - - 200,000 1,065,000 1,465,000
Nonmajor Governmental 100,000 - 749,740 1,100,000 503,024 - 2,452,764
Municipal Liquor 327,770 - - - 500,000 - 827,770
Internal Service - - - - - 41,000 41,000
Total 862,770$ 315,000$ 1,933,750$ 1,103,210$ 1,318,024$ 1,106,000$ 6,638,754$
Fund
Transfer In
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, 2021 the balance of the
respective advances (due in more than a year) was $511,670. The portion of the advances that is due in one year is
$67,427.
In 2013, the City’s Recreation Improvement Fund made an advance to the Park Cap ital 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, 2021 the portion of the
advance that is due in one year is $7,000, and the portion due in more than one year is $188,440.
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, 2021, 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 $299,345.
At the end of 2021, the Ice Arena and the Swimming Pool have overdrawn their cash positions. As a result, the
General Fund has advanced to the Ice Arena and Swimming Pool funds to cover the overdrawn cash position as of
December 31, 2021. These advances are reflected in the financial statements as due to and due from other funds.
Individual fund advances to and advances from at year -end were as follows:
Amount
Nonmajor governmental Ice Arena 342,109$
Nonmajor governmental Nonmajor governmental 195,440
Internal Service
Self Insurance Ice Arena 579,097
Total 1,116,646$
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 2,522,106$
Nonmajor governmental 475,650
Total 2,997,756$
Payable FundReceivable Fund
72
7. 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 ge nerally accepted accounting principles.
At December 31, 2021, a summary of the City’s governmental fund balance classifications are as follows:
Ice Improvement Capital Other
General Arena Bonds Improvements Governmental Total
Nonspendable
Prepaid items $ 47,489 $ - $ - $ - $ 1,111 $ 48,600
Restricted for
Future debt service - - 1,549,520 - - 1,549,520
Future capital projects - - - 754,449 - 754,449
Law enforcement drug forfeitures - - - - 234,647 234,647
Alcohol and tobacco compliance - - - - 7,954 7,954
Recreation services donations - - - - 51,642 51,642
Wood Lake Nature Center donations - - - - 132,690 132,690
Public health assessment - - - - 122,888 122,888
Wood Lake endowment - - - - 237,142 237,142
Total Restricted - - 1,549,520 754,449 786,963 3,090,932
Committed to
Street improvements - - 3,396,153 - - 3,396,153
Future capital projects - - - 2,926,130 - 2,926,130
Park improvement projects - - - - 140,483 140,483
Tourism administration - - - - 46,430 46,430
Public cable TV and information activities - - - - 2,150,134 2,150,134
National, State and Local elections - - - - 1,973,241 1,973,241
Alcohol and tobacco compliance - - - - 217,193 217,193
Wood Lake half marathon - - - - 54,402 54,402
Street maintenance and forestry programs - - - - 1,516,008 1,516,008
Special facilities - - - - 45,575 45,575
Park and recreation capital projects - - - - 1,195,307 1,195,307
Total Committed - - 3,396,153 2,926,130 7,338,773 13,661,056
Assigned to
Debt service - - 461,711 - - 461,711
Future capital projects - - - 5,056,780 - 5,056,780
Total Assigned - - 461,711 5,056,780 - 5,518,491
Unassigned 10,517,440 (3,325,310) - - (473,676) 6,718,454
Total 10,564,929$ (3,325,310)$ 5,407,384$ 8,737,359$ 7,653,171$ 29,037,533$
8. Contingencies and Litigation
The City is currently involved in various pending litigation cases. After evaluation by the City’s attorney it is believed th at
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 fo r repayment to MAC to occur.
73
9. Defined Benefit Pension Plans
The City participates in various pension plans. For the year ended December 31, 2021 total pension expense was
$(149,654) and the total net pension liability was $11,252,073. 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 Emp loyees 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 elec ted to merge with
and transfer assets and administration to PERA.
B. Benefits Provided
PERA provides retirement, disability, and death benefits. Benefit provisions are established by state statute and can
only be modified by the state legislature. Vested, terminated employees who are entitled to benefits but are not receiving
them yet are bound by the provisions in effect at the time they last terminated their public service.
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 percent of average salary for each of the first 10 years of ser vice and 1.7
percent of average salary for each additional year. Under Method 2, the accrual rate for Coordinated members is
1.7 percent 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
percent of the cost-of-living adjustment (COLA) announced by the SSA, with a minimum increase of at least 1
percent and a maximum of 1.5 percent. Recipients that have been receiving the annuity or benefi t for at least a
full year as of the June 30 before the effective date of the increase will receive the full increase. Recipients
receiving the annuity or benefit for at least one month but less than a full year as of the June 30 before the
effective date of the increase will receive a reduced prorated increase. For members retiring on
January 1, 2024, or later, the increase will be delayed until normal retirement age (age 65 if hired prior to
July 1, 1989, or age 66 for individuals hired on or after July 1, 1989). Members retiring under Rule of 90 are
exempt from the delay to normal retirement.
74
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 percent after five years up to 100 percent 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 percent after ten years up to
100 percent after twenty years of credited service. The annuity accrual rate is 3 percent 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 percent.
Recipients that have been receiving the annuity or benefit for at least 36 months as of the June 30 before the
effective date of the increase will receive the full increase. For recipients receiving the annuity or benefit for at least
25 months but less than 36 months as of the June 30 before the effective date of the increase will receive a reduced
prorated increase.
C. Contributions
Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. Contribution rates can only
be modified by the state legislature.
1. General Employees Fund Contributions
Coordinated Plan members were required to contribute 6.50 percent o f their annual covered salary in fiscal year
2020 and the City of Richfield was required to contribute 7.50 percent for Coordinated Plan members. The City of
Richfield’s contributions to the General Employees Fund for the year ended December 31, 2021, wer e $861,454.
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 percent of their annual covered salary in fiscal year
2021 and the City was required to contribute 17.70 percent for Police and Fire Plan members. The City of Richfield’s
contributions to the Police and Fire Fund for the year ended December 31, 2021, were $1,343,767. 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, 2021, the City of Richfield reported a liability of $6,674,710 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 $203,866.
The net pension liability was measured as of June 30, 2021, and the total pension liability used to calculate the net
pension liability was determined by an actuarial valuation as of that date. The City of Richfield’s proporti onate share
of the net pension liability was based on the City of Richfield contributions received by PERA during the
measurement period for employer payroll paid dates from July 1, 2020, through June 30, 2021, relative to the total
employer contributions received from all of PERA’s participating employers. The City of Richfield’s proportion share
was 0.1563 percent at the end of the measurement period and 0.1530 percent for the beginning of the period.
City's Proportionate Share of the Net Pension Liability 6,674,710$
State of Minnesota's Proportionate Share of the Net Pension
Liability Associated with the City 203,866
Total 6,878,576$
For the year ended December 31, 2021, the City of Richfield recognized pension expense of $153,162 for its
proportionate share of the General Employees Plan’s pension expense. Included in the amount, the City of Richfield
recognized an additional $16,449 as pension expense (and grant revenue) for its proportionate share of the State
of Minnesota’s contribution of $16 million to the General Employees Fund.
75
At December 31, 2021, the City of Richfield reported its proportionate share of the General Employees Plan’s
deferred outflows of resources and deferred inflows of resources, related to pensions from the following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Differences Between Expected and
Actual Economic Experience 39,118$ 203,766$
Changes in Actuarial Assumptions 4,075,441 143,357
Net Collective Difference Between Projected and
Actual Earnings on Plan Investments - 5,791,223
Changes in Proportion 256,201 40,220
Contributions Paid to PERA Subsequent
to the Measurement Date 430,727 -
Total 4,801,487$ 6,178,566$
The $430,727 reported as deferred outflows of resources related to pensions resulting from City of Richfield
contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in
the year ended December 31, 2022. Other amounts reported as deferred outflows and inflows of resources related
to pensions will be recognized in pension expense as follows:
(222,859)$
(975)
(7,307)
(1,576,665)
-
Total (1,807,806)$
2022
2023
2023
2024
2025
2. Police and Fire Fund Pension Costs
At December 31, 2021, the City of Richfield reported a liability of $4,577,363 for its proportionate share of the Police
and Fire Fund’s net pension liability. The net pension liability was measured as of June 30, 202 1, and the total
pension liability used to calculate the net pension liability was determined by an actuarial valuat ion 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, 2020, through
June 30, 2021, relative to the total employer contributions received from all of PERA’s participating employers. At
June 30, 2021, the City of Richfield’s proportionate share was 0.6000 percent at the end of the measurement period
and 0.6287 percent for the beginning of the period.
The State of Minnesota contributed $18 million to the Police and Fire Fund in the plan fiscal year ended
June 30, 2021. The contribution consisted of $9 million in direct state aid that does meet the definition o f 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, 2020. 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 percent funded, or until the State
Patrol Plan (administered by the Minnesota State Retirement System) is 90 percent funded, whichever occurs
later. Strong asset returns for the fiscal year ended 2021 will accelerate the phasing out of these state
contributions, although we do not anticipate them to be phased out during the fisc al year ending 2022.
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, 2021, the City of Richfield recognized pension revenue of $302,816 for its proportionate share of the
Police and Fire Plan’s pension expense. In addition, the City recognized an additional $37,920 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.
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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
$54,000 for the year ended December 31, 2021 as revenue and an offsetting reduction of net pension liability for
its proportionate share of the State of Minnesota’s on-behalf contributions to the Police and Fire Fund.
At December 31, 2021, the City of Richfield reported its proportionate share of the Police and Fire Plan’s deferred
outflows of resources and deferred inflows of resources related to pensions from the following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Differences Between Expected and
Actual Economic Experience 897,910$ -$
Changes in Actuarial Assumptions 6,806,892 2,519,382
Net Collective Difference Between Projected and
Actual Earnings on Plan Investments - 8,799,598
Changes in Proportion 242,940 820,978
Contributions Paid to PERA Subsequent
to the Measurement Date 671,884 -
Total 8,619,626$ 12,139,958$
The $671,884 reported as deferred outflows of resources related to pensions resulting from City of Richfield
contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in
the year ended December 31, 2022. Other amounts reported as deferred outflows and inflows of resources related
to pensions will be recognized in pension expense as follows:
(3,491,213)$
(550,273)
(582,094)
(995,723)
1,427,087
Total (4,192,216)$
2022
2023
2023
2024
2025
E. Long-Term Expected Return on Investment
The State Board of Investment, which manages the investments of PERA, prepares an analysis of the reasonableness
on a regular basis of the long-term expected rate of return using a building-block method in which best-estimate ranges
of expected future rates of return are developed for each major asset class. These ranges are combined to produce an
expected long-term rate of return by weighting the expected future rates of return by the target asset allocation
percentages. The target allocation and best estimates of geometric real rates of return for each major asset class are
summarized in the following table:
Asset Class
Domestic Equity 33.5 %5.10 %
Alternative Assets (Private Markets)25.0 5.90
Bonds (Fixed Income)25.0 0.75
International Equity 16.5 5.30
Total 100.00 %
Target Expected Real
Allocation Rate of Return
Long-term
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F. Actuarial Assumptions
The total pension liability in the June 30, 2021 actuarial valuation was determined using an individual entry-age
normal actuarial cost method. The long-term rate of return on pension plan investments used in the determination of
the total liability is 6.5 percent. 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 retur n of 6.5 percent was deemed to be within that range of
reasonableness for financial reporting purposes.
Inflation is assumed to be 2.25 percent for the General Employees Plan and 2.25 percent for the Police and Fire Plan.
Benefit increases after retirement are assumed to be 1.25 percent for the General Employees Plan. The Police and
Fire Plan benefit increase is fixed at 1 percent per year and that increase was used in the valuation.
Salary growth assumptions in the General Employees Plan range in annual increments from 10.25 percent after one
year of service to 3.0 percent after 29 years of service and 6.0 percent per year thereafter. In the Police and Fire Plan,
salary growth assumptions range from 11.75 percent after one year of service to 3.0 percent 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.
Actuarial assumptions used in the June 30, 2021 valuation were based on the results of actuarial experience studies.
The most recent four-year experience study in the General Employees Plan was completed in 2019. The assumption
changes were adopted by the Board and become effective with the July 1, 2020 actuarial valuation. The 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 2021:
General Employees Fund
Changes in Actuarial Assumptions:
• The investment return and single discount rates were changed from 7.50 percent to 6.50 percent, for financial
reporting purposes.
• The mortality improvement scale was changed from Scale MP-2019 to Scale MP-2020.
Changes in Plan Provisions:
• There were no changes in plan provisions since the previous valuation.
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Police and Fire Fund
Changes in Actuarial Assumptions:
• The investment return and single discount rates were changed from 7.50 percent to 6.50 percent, for financial
reporting purposes.
• The inflation assumption was changed from 2.50 percent to 2.25 percent.
• The payroll growth assumption was changed from 3.25 percent to 3.00 percent.
• 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 MN-
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 result 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 result in more assumed terminations.
• Assumed rates of disability were increased for ages 25-44 and decreased for ages over 49. Overall, proposed
rates result in more projected disabilities.
• Assumed percent married for active female members was changed from 60 percent to 70 percent. Minor
changes to form of payment assumptions were applied.
Changes in Plan Provisions:
• There have been no changes since the prior valuation.
G. Discount Rate
The discount rate used to measure the total pension liability in 2021 was 6.50%. The projection of cash flows used to
determine the discount rate assumed that contributions from plan members and employers will be made at rates set in
Minnesota Statutes. Based on these assumptions, the fiduciary net positions of the General Employees Fund and the
Police and Fire Fund was projected to be available to make all projected future benefit payments of current plan
members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of
projected benefit payments to determine the total pension liability.
H. 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 Percent 1 Percent
Decrease (5.50%) Current (6.50%) Increase (7.50%)
General Employees Fund 13,613,002$ 6,674,710$ 981,419$
Police and Fire Fund 14,649,798 4,577,363 (3,679,536)
City Proportionate Share of NPL
I. Pension Plan Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in a separately -issued PERA financial
report that includes financial statements and required supplementary information. That report may be obtained on the
Internet at www.mnpera.org.
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10. 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.
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 five percent 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 com bined 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 two percent of employer contributions and twenty -five hundredths of one percent (0.25 percent) 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 2021 were:
Employee Employer Employee Employer Required Rate
1,421$ 1,421$ 5.00%5.00%5.00%
Contribution Amount
Percentage of
Covered Payroll
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 eligib le 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, 2021, the following were covered by the benefit terms:
Inactive Plan Members or Beneficiaries Currently Receiving Benefit Payments 17
Active Plan Members 221
Total Plan Members 238
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 2021, the City contributed $96,235 to the plan.
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E. Actuarial Assumptions
The total OPEB liability was determined by an actuarial valuation as of January 1, 2020, using the following actuarial
assumptions, applied to all periods included in the measurement, unless otherwise specified:
Discount Rate 2.12%
Expected Long-Term Investment Return N/A
20-Year Municipal Bond Yield 2.00%
Inflation Rate 2.50%
Salary Increases 3.25%
Medical Trend Rate 7.67% in 2020 grading to 5% after 18 years
Mortality Rate
The mortality rates used are in the PERA plan of which the employee, retiree or beneficiary is a participant.
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.
Police & Fire
• Healthy Pre-Retirement
RP-2014 employee generational mortality table projected with mortality improvement scale MP -2018, from a
base year of 2006.
• 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 actuarial assumptions used in the January 1, 2020, valuation were based on the results of an actuarial
experience study for the period December 31, 2018 – December 31, 2020.
The discount rate used to measure the total OPEB liability was 2.12%.
81
F. Total OPEB Liability
The City’s total OPEB liability of $1,904,826 was measured as of December 31, 2020 and was determined by an
actuarial analysis as of that date.
Total OPEB
Liability
(a)
Balances at December 31, 2020 1,689,556$
Changes for the Year:
Service cost 183,028
Interest 49,990
Differences between expected and actual experience 18,865
Changes in assumptions or other inputs 59,622
Benefit payments (96,235)
Net Changes 215,270
Balances at December 31, 2021 1,904,826$
Changes of assumptions and other inputs reflect a change in the discount rate from 2.74% as of
December 31, 2019 to 2.12% as of December 31, 2020.
G. OPEB Liability Sensitivity
The following presents the City’s total OPEB liability calculated using the dis count rate of 2.74%
as well as the liability measured using 1% lower and 1% higher than the current discount rate.
1 Percent 1 Percent
Decrease (1.12%)Current (2.12%)Increase (3.12%)
2,034,006$ 1,904,826$ 1,779,132$
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.
Healthcare Cost
1 Percent Decrease Trend Rates 1 Percent Increase
(6.67% Decreasing (7.67% Decreasing (8.67% Decreasing
to 4%)to 5%)to 6%)
1,676,108$ 1,904,826$ 2,179,529$
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H. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
For the year ended December 31, 2021 the City recognized OPEB revenue of $43,290. At December 31, 2021, the
City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following
sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Differences Between Expected and
Actual Experience 16,745$ 765,832$
Changes in Actuarial Assumptions 193,766 72,364
Contributions to OPEB Subsequent
to the Measurement Date 96,235 -
Total 306,746$ 838,196$
$96,235 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, 2022.
$306,746 reported as deferred outflows of resources and $838,196 reported as deferred inflows of resources related
to OPEB resulting from changes in assumptions in the year ended December 31, 2021.
Amounts reported as deferred outflows and deferred inflows of resources related to OPEB will be recognized in
OPEB expense as follows:
Year Ended December 31:
2022 (92,552)$
2023 (92,552)
2024 (92,552)
2025 (92,552)
2026 (94,715)
Thereafter (162,762)
Total (627,685)$
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.
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.
As of December 31, 2021 there were two bond issues outstanding with an estimated aggregate principal amount
outstanding of approximately $1,396,860.
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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 T ax
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 throug h
a direct reduction of the entity’s property tax bill. There were no agreements in 2021 that exceeded this 90% threshold.
During the year ended December 31, 2021, the HRA generated $5,818,864 in tax increment revenue and made
$3,303,287 in payments to developer.
The tax abatement agreements that the HRA has outstanding as of December 31, 2021 are the following:
Percentage of Amount of
Taxes Abated Taxes Abated
Purpose During the Year During the Year
Senior housing and market rate housing 75% 440,927$
Business redevelopment 75 716,386
Rental housing 90 205,835
Mixed-use housing and retail 75 748,011
Mixed-use housing and retail - 122,325
Mixed-use housing and retail 90 306,275
Mixed-use housing and retail 75 469,246
Senior housing 75 141,976
Retail redevelopment - 136,317
Rental housing - 322,264
Townhomes - -
Rental housing - -
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, 2021.
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 pro vide 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 2021, the HRA transferred to the City $873,380 of tax increment receipts to fund debt service requirements for
debt issued on behalf of the HRA.
84
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 th e 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.
17. Joint Venture
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 202 1 financial statements of the City was
$752,741 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.
18. Service Concession Arrangement
The City has entered into an agreement with Wheel Fun Rentals LLC, where Wheel Fund Rentals will manage the City’s
Mini-Golf facility, concession sales, and bicycle rental operations starting the first weekend of May through the last
weekend of October each year.
The City will continue to own existing assets of the operation. Any new equipment purchased by Wheel Fun Rentals for
the operation of the facility will be the property of Wheel Fund Rentals.
As compensation for operating the facility, Wheel Fun Rentals will retain gross revenues from the mini -golf facility,
concessions and bike rental up to $200,000 and then pay the City 10% of gross revenues over $200,000. Wheel Fun
Rentals will also pay to the City a base rent of $16,000 per season.
Wheel Fun Rentals will be responsible for managing the facility, setting hours of operation and rates, with City approval,
provide sufficient staffing to operate, maintain and repair the facility during the operat ing season, pay utilities associated
with the operation, purchase and maintain a food license, and purchase and hold the necessary insurance coverage for
such an operation.
19. COVID-19
On March 13, 2020, a national emergency was declared for the COVID-19 outbreak in the United States of America.
This event affects the economy and financial markets. The extent of the impact on the City may be both direct and
indirect and will vary based on the duration of the outbreak and various other factors. An estimat e of the financial effect
on the City’s financial statements at December 31, 2021 cannot be determined at this time.
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REQUIRED SUPPLEMENTARY INFORMATION
CITY OF RICHFIELD
RICHFIELD, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2021
87
CITY OF RICHFIELD, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE
NOTE TO RSI
DECEMBER 31, 2021
Note 1 Pensions Plans
Schedule of Employer’s Share of PERA Net Pension Liability - General Employees Fund
State's
Proportionate
City's Share of
Proportionate the Net Pension
Share of Liability City's
Fiscal the Net Pension Associated with Covered
Year Liability the City Total Payroll
Ending (a)(b)(a+b)(c)
06/30/21 0.1563 %6,674,710$ 203,866$ 6,878,576$ 11,253,880$ 59.3 %87.0 %
06/30/20 0.1530 9,173,049 282,832 9,455,881 10,910,907 84.1 79.0
06/30/19 0.1491 8,243,405 256,322 8,499,727 10,555,547 78.1 80.2
06/30/18 0.1520 8,432,337 276,621 8,708,958 10,214,587 82.6 79.5
06/30/17 0.1507 9,620,589 121,007 9,741,596 9,711,387 99.1 75.9
06/30/16 0.1587 12,885,653 168,215 13,053,868 9,846,133 130.9 68.9
06/30/15 0.1596 8,271,300 - 8,271,300 9,226,400 89.6 78.2
City's
Liability as a
Percentage of
Proportionate
Share of the
Net Pension
Plan Fiduciary
of the Total
Pension Liability
Net PositionCity's
Proportion of
the Net Pension
Liability
as a Percentage
Payroll
(a/c)
Covered
Note: Schedule is intended to show 10-year trend. Additional years will be reported as they become available.
Schedule of Employer’s PERA Contributions - General Employees Fund
Contributions in
Relation to the
Statutorily Statutorily Contribution City's
Required Required Deficiency Covered
Year Contribution Contribution (Excess) Payroll
Ending (a)(b)(a-b)(c)
12/31/21 861,454$ 861,454$ -$ 11,486,053$ 7.5 %
12/31/20 837,463 837,463 - 11,166,173 7.5
12/31/19 812,029 812,029 - 10,827,053 7.5
12/31/18 783,227 783,227 - 10,443,027 7.5
12/31/17 742,606 742,606 - 9,901,413 7.5
12/31/16 726,143 726,143 - 9,681,907 7.5
12/31/15 706,736 706,736 - 9,423,147 7.5
(b/c)
a Percentage of
Payroll
Covered
Contributions as
Note: Schedule is intended to show 10-year trend. Additional years will be reported as they become available.
88
Notes to the Required Supplementary Information - General Employees Fund
2021 - The investment return and single discount rates were changed from 7.50 percent to 6.50 percent, for financial
reporting purposes. The mortality improvement scale was changed from Scale MP-2019 to Scale MP-2020.
2020 - The price inflation assumption was decreased from 2.50% to 2.25%. The payroll growth assumption was decreased
from 3.25% to 3.00%. Assumed salary increase rates were changed as recommended in the June 30, 2019 experience
study. The net effect is assumed rates that average 0.25% less than previous rates. Assumed rates of retirement were
changed as recommended in the June 30, 2019 experience study. The changes result in more unreduced (normal)
retirements and slightly fewer Rule of 90 and early retirements. Assumed rates of termination were changed as
recommended in the June 30, 2019 experience study. The new rates are based on service and are generally lower than
the previous rates for years 2-5 and slightly higher thereafter. Assumed rates of disability were changed as recommended
in the June 30, 2019 experience study. The change results in fewer predicted disability retirements for males and females.
The base mortality table for healthy annuitants and employees was changed from the RP -2014 table to the Pub-2010
General Mortality table, with adjustments. The base mortality table for disabled annuitants was changed from the RP -
2014 disabled annuitant mortality table to the PUB -2010 General/Teacher disabled annuitant mortality table, with
adjustments. The mortality improvement scale was changed from Scale MP-2018 to Scale MP-2019. The assumed spouse
age difference was changed from two years older for females to one year older. The assumed number of married male new
retirees electing the 100% Joint & Survivor option changed from 35% to 45%. The assumed number of married female new
retirees electing the 100% Joint & Survivor option changed from 15% to 30%. The corresponding number of married new
retirees electing the Life annuity option was adjusted accordingly.
2019 - The mortality projection scale was changed from MP-2017 to MP-2018.
2018 - The mortality projection scale was changed from MP-2015 to MP-2017. The assumed benefit increase was changed
from 1.00 percent per year through 2044 and 2.50 percent per year thereafter to 1.25 per cent per year.
2017 - The Combined Service Annuity (CSA) loads were changed from 0.8 percent for active members and 60 percent for
vested and non-vested deferred members. The revised CSA loads are now 0.0 percent for active member liability, 15.0
percent for vested deferred member liability and 3.0 percent for non-vested deferred member liability. The assumed post-
retirement benefit increase rate was changed from 1.0 percent per year for all years to 1.0 percent per year through 2044
and 2.5 percent per year thereafter.
2016 - The assumed post-retirement benefit increase rate was changed from 1.0 percent per year through 2035 and 2.5
percent per year thereafter to 1.0 percent per year for all future years. The assumed investment return was changed from
7.9 percent to 7.5 percent. The single discount rate was changed from 7.9 percent to 7.5 percent. Other assumptions were
changed pursuant to the experience study dated June 30, 2015. The assumed future salary increases, payroll growth and
inflation were decreased by 0.25 percent to 3.25 percent for payroll growth and 2.50 percent for inflation.
2015 - The assumed post-retirement benefit increase rate was changed from 1.0 percent per year through 2030 and 2.5
percent per year thereafter to 1.0 percent per year through 2035 and 2.5 percent per year thereafter.
89
Changes in Plan Provisions
2021 - There were no changes in plan provisions since the previous valuation.
2020 - Augmentation for current privatized members was reduced to 2.0% for the period July 1, 2020 through
December 31, 2023 and 0.0% after. Augmentation was eliminated for privatizations occurring after June 30, 2020.
2019 - 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 - 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
percent to 3.00 percent, beginning July 1, 2018. Deferred augmentation was changed to 0.00 percent, effective
January 1, 2019. Augmentation that has already accrued for deferred members will still apply. Contribution stabilizer
provisions were repealed. Postretirement benefit increases were changed from 1.00 percent per year with a provision to
increase to 2.50 percent upon attainment of 90.00 percent funding ratio to 50.00 percent of the Social Security Cost of Livin g
Adjustment, not less than 1.00 percent and not more than 1.50 percent, beginning January 1, 2019. For retirements on or
after January 1, 2024, the first benefit increase is delayed until the retiree reaches normal retirement age; does not apply to
Rule of 90 retirees, disability benefit recipients, or survivors. Actuarial equivalent factors were updated to reflect revised
mortality and interest assumptions.
2017 - 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 - There were no changes in plan provisions since the previous valuation.
2015 - 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 $892 m illion. Upon
consolidation, state and employer contributions were revised.
90
Schedule of Employer’s Share of PERA Net Pension Liability - Police and Fire Fund
State's
Proportionate
City's Share of
Proportionate the Net Pension
Share of Liability City's
Fiscal the Net Pension Associated with Covered
Year Liability the City Total Payroll
Ending (a)(b)(a+b)(c)
06/30/21 0.6000 %4,577,363$ 208,222$ 4,785,585$ 7,091,288$ 64.5 %93.7 %
06/30/20 0.6287 8,230,357 195,222 8,425,579 7,092,654 116.0 87.2
06/30/19 0.6387 6,713,383 - 6,713,383 6,587,723 101.9 89.3
06/30/18 0.6046 6,389,999 - 6,389,999 6,371,512 100.3 88.8
06/30/17 0.5910 7,979,203 - 7,979,203 6,070,907 131.4 85.4
06/30/16 0.6560 26,326,421 - 26,326,421 6,317,469 416.7 63.9
06/30/15 0.6030 6,851,491 - 6,851,491 5,371,889 127.5 86.6
Liability as a Plan Fiduciary
City's
Proportionate
Share of the
Net Pension
City's Percentage of Net Position
Proportion of Covered as a Percentage
the Net Pension Payroll of the Total
Liability (a/c)Pension Liability
Note: Schedule is intended to show 10-year trend. Additional years will be reported as they become available.
Schedule of Employer’s PERA Contributions - Police and Fire Fund
Contributions in
Relation to the
Statutorily Statutorily Contribution City's
Required Required Deficiency Covered
Year Contribution Contribution (Excess) Payroll
Ending (a)(b)(a-b)(c)
12/31/21 1,343,767$ 1,343,767$ -$ 7,591,904$ 17.7 %
12/31/20 1,262,187 1,262,187 - 7,131,000 17.7
12/31/19 1,217,879 1,217,879 - 7,185,127 17.0
12/31/18 1,048,095 1,048,095 - 6,469,722 16.2
12/31/17 1,004,300 1,004,300 - 6,199,383 16.2
12/31/16 1,000,004 1,000,004 - 6,172,864 16.2
12/31/15 948,453 948,453 - 5,854,648 16.2
(b/c)
Contributions as
a Percentage of
Payroll
Covered
Note: Schedule is intended to show 10-year trend. Additional years will be reported as they become available.
91
Changes in Actuarial Assumptions
2021 - The investment return and single discount rates were changed from 7.50 percent to 6.50 percent, for financial
reporting purposes. The inflation assumption was changed from 2.50 percent to 2.25 percent. The payroll growth
assumption was changed from 3.25 percent to 3.00 percent. 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 MN-2020. The base mortality table for disabled annuitants was changed from the RP -2014
healthy annuitant mortality table (with future mortality impro vement 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 experienc e 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 result in slightly more unreduced retirements and fewer assumed early retir ements. Assumed rates of
withdrawal were changed from select and ultimate rates to service-based rates. The changes result in more assumed
terminations. Assumed rates of disability were increased for ages 25 -44 and decreased for ages over 49. Overall, proposed
rates result in more projected disabilities. Assumed percent married for active female members was changed from 60
percent to 70 percent. Minor changes to form of payment assumptions were applied.
2020 - The mortality projection scale was changed from MP-2018 to MP-2019.
2019 - The mortality projection scale was changed from MP-2017 to MP-2018.
2018 - The mortality projection scale was changed from MP-2016 to MP-2017.
2017 - Assumed salary increases were changed as recommended in the June 30, 2 016 experience study. The net effect is
proposed rates that average 0.34 percent lower than the previous rates. Assumed rates of retirement were changed,
resulting in fewer retirements. The combined service annuity (CSA) load was 30.00 percent for vested a nd non-vested,
deferred members. The CSA has been changed to 33.00 percent for vested members and 2.00 percent for non -vested
members. The base mortality table for healthy annuitants was changed from the RP-2000 fully generational table to the RP-
2014 fully generational table (with a base year of 2006), with male rates adjusted by a factor of 0.96. The mortality
improvement scale was changed from Scale AA to Scale MP-2016. The base mortality table for disabled annuitants was
changed from the RP-2000 disabled mortality table to the mortality tables assumed for healthy retirees. Assumed
termination rates were decreased to 3.00 percent for the first three years of service. Rates beyond the select period of thre e
years were adjusted, resulting in more expected terminations overall. Assumed percentage of married female members
was decreased from 65.00 percent to 60.00 percent. 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 postretirement benefit increase rate was chan ged from 1.00
percent for all years to 1.00 percent per year through 2064 and 2.50 percent thereafter. The single discount rate was
changed from 5.60 percent per annum to 7.50 percent per annum.
2016 - The assumed post-retirement benefit increase rate was changed from 1.0 percent per year through 2037 and 2.5
percent per year thereafter to 1.0 percent per year for all future years. The assumed investment return was changed from
7.9 percent to 7.5 percent. The single discount rate was changed from 7.9 p ercent to 5.6 percent. The assumed future
salary increases, payroll growth and inflation were decreased by 0.25 percent to 3.25 percent for payroll growth and 2.50
percent for inflation.
2015 - The assumed post-retirement benefit increase rate was changed from 1.0 percent per year through 2030 and 2.5
percent per year thereafter to 1.0 percent per year through 2037 and 2.5 percent per year thereafter.
92
Changes in Plan Provisions
2021 - There were no changes in plan provisions since the previous valuation.
2020 - There were no changes in plan provisions since the previous valuation.
2019 - There were no changes in plan provisions since the previous valuation.
2018 - As set by statute, the assumed post-retirement benefit increase was changed from 1.0 percent per year through
2064 and 2.5 percent per year, thereafter, to 1.0 percent 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 $9.0 million thereafter until the plan reaches 100 percent funding, or July 1, 2048, if earlier. Member contributions
were changed from 10.80 percent to 11.30 percent of pay, effective January 1, 2019 and 11.80 percent of p ay, effective
January 1, 2020. Employer contributions were changed from 16.20 percent to 16.95 percent of pay, effective
January 1, 2019 and 17.70 percent of pay, effective January 1, 2020. Interest credited on member contributions decreased
from 4.00 percent to 3.00 percent, beginning July 1, 2018. Deferred augmentation was changed to 0.00 percent, effective
January 1, 2019. Augmentation that has already accrued for deferred members will still apply. Actuarial equivalent factors
were updated to reflect revised mortality and interest assumptions.
2017 - There were no changes in the plan provisions since the previous valuation.
2016 - There were no changes in plan provisions since the previous valuation.
2015 - The post-retirement benefit increase to be paid after attainment of the 90 percent funding threshold was changed,
from inflation up to 2.5 percent, to a fixed rate of 2.5 percent.
93
Schedule of Changes in the City’s Total OPEB Liability and Related Ratios
2021 2020 2019 2018
Total OPEB Liability
Service cost 183,028$ 146,639$ 202,165$ 184,122$
Interest 49,990 100,980 84,039 83,730
Differences between expected and actual experience 18,865 (987,796) - -
Changes in assumptions 59,622 144,714 (110,794) 53,295
Benefit payments (96,235) (74,575) (113,317) (109,190)
Net Change in Total OPEB Liability 215,270 (670,038) 62,093 211,957
Total OPEB Liability - Beginning January 1,1,689,556 2,359,594 2,297,501 2,085,544
Total OPEB Liability - Ending December 31,1,904,826$ 1,689,556$ 2,359,594$ 2,297,501$
Covered-Employee Payroll 17,100,000$ 16,600,000$ 16,500,000$ 15,900,000$
City's total OPEB liability as a percentage of
covered-employee payroll 11.14 %10.18 %14.30 %14.45 %
Changes in Assumptions:
In 2021, the following assumptions changes:
The discount rate was changed from 2.74% to 2.12%
In 2020, the following assumptions changes:
The health care trend rates, mortality tables, and salary increase rates were updated.
The discount rate was changed from 3.80% to 2.90%
In 2019, the following assumptions changes:
The discount rate was changed from 3.30% to 3.80%
In 2018, the following assumptions changes:
The mortality tables were updated from the RP-2014 White Collar Mortality Tables with
MP-2014 Generational Improvement Scale (Blue Collar Tables for Police and Fire Personnel)
to the RP-2014 White Collar Mortality Tables (de-trended to 2006) and then projected
beyond the valuation date using scale MP-2017 (Blue Collar Tables for Police and Fire
Personnel).
The subsidized benefits for the officers injured in the line of duty are assumed to end after
five years for the two individuals under age 40 as of the valuation date and at age 65 for the
one individual over age 55 as of the valuation date.
The withdrawal and retirement tables for all employees were updated.
The discount rate was changed from 4.00% to 3.30%
94
COMBINING AND INDIVUDUAL FUND
FINANCIAL STATEMENTS AND SCHEDULES
CITY OF RICHFIELD
RICHFIELD, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2021
95
CITY OF RICHFIELD, MINNESOTA
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
Total
Park Nonmajor
Special Redevelopment Capital Governmental
Revenue Bonds Projects Funds
Assets
Cash and temporary investments 5,921,401$ -$ 1,168,129$ 7,089,530$
Receivables
Accrued interest 13,070 - 1,124 14,194
Accounts 691,676 - 26,054 717,730
Due from other governments 33,354 - - 33,354
Advances to other funds 342,109 - 195,440 537,549
Prepaid items 3,981 - - 3,981
Total Assets 7,005,591$ -$ 1,390,747$ 8,396,338$
Liabilities
Accounts and contracts payable 31,981$ -$ -$ 31,981$
Accrued salaries payable 5,351 - - 5,351
Due to other governments 4,643 - - 4,643
Due to other funds 475,650 - - 475,650
Advances from other funds - - 195,440 195,440
Deposits payable 30,102 - - 30,102
Total Liabilities 547,727 - 195,440 743,167
Fund Balances
Nonspendable 1,111 - - 1,111
Restricted 786,963 - - 786,963
Committed 6,143,466 - 1,195,307 7,338,773
Unassigned (473,676) - - (473,676)
Total Fund Balances 6,457,864 - 1,195,307 7,653,171
Total Liabilities, Deferred Inflows
of Resources and Fund Balances 7,005,591$ -$ 1,390,747$ 8,396,338$
DECEMBER 31, 2021
96
CITY OF RICHFIELD, MINNESOTA
NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVNUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED DECEMBER 31, 2021
Total
Park Nonmajor
Special Redevelopment Capital Governmental
Revenue Bonds Projects Funds
Revenues
Taxes 2,246,806$ -$ -$ 2,246,806$
Intergovernmental 131,206 873,380 500,000 1,504,586
Charges for services 512,059 - - 512,059
Fines and forfeitures 54,324 - - 54,324
Interest (loss) on investments 6,425 - 553 6,978
Miscellaneous 683,343 - 25,470 708,813
Total Revenues 3,634,163 873,380 526,023 5,033,566
Expenditures
Current
Administrative services 594,256 - - 594,256
Public safety 141,742 - - 141,742
Recreation services 647,086 - 65,502 712,588
Capital outlay
Administrative services 30,001 - - 30,001
Recreation services - - 845,418 845,418
Debt service
Principal - 760,000 - 760,000
Interest and other charges - 113,380 - 113,380
Total Expenditures 1,413,085 873,380 910,920 3,197,385
Excess (Deficiency) of Revenues
Over (Under) Expenditures 2,221,078 - (384,897) 1,836,181
Other Financing Sources (Uses)
Transfers in 815,000 - 503,024 1,318,024
Transfers out (2,452,764) - - (2,452,764)
Total Other Financing Sources (Uses)(1,637,764) - 503,024 (1,134,740)
Net Change in Fund Balances 583,314 - 118,127 701,441
Fund Balances, January 1 5,874,550 - 1,077,180 6,951,730
Fund Balances, December 31 6,457,864$ -$ 1,195,307$ 7,653,171$
97
CITY OF RICHFIELD, MINNESOTA
NONMAJOR SPECIAL REVENUE FUNDS
SUBCOMINING BALANCE SHEETS
DECEMBER 31, 2021
Liquor Public
Contributions Tourism Drug/Safety
Fund Admin Communcations Elections Forfeiture Compliance
Assets
Cash and temporary investments 140,198$ 53,942$ 1,727,494$ 1,875,597$ 234,232$ 209,643$
Receivables
Accrued interest 285 105 3,041 3,421 456 420
Accounts - - 84,027 129,243 - 390
Due from other governments - - - - - 16,853
Advances to other funds - - 342,109 - - -
Prepaid items - - 278 - - -
Total Assets 140,483$ 54,047$ 2,156,949$ 2,008,261$ 234,688$ 227,306$
Liabilities
Accounts and contracts payable -$ 6,829$ 1,186$ 1,094$ 41$ 2,159$
Accrued salaries payable - - 5,351 - - -
Due to other governments - - - 4,612 - -
Due to other funds - - - - - -
Deposits payable - 788 - 29,314 - -
Total Liabilities - 7,617 6,537 35,020 41 2,159
Fund Balances
Nonspendable - - 278 - - -
Restricted - - - - 234,647 7,954
Committed 140,483 46,430 2,150,134 1,973,241 - 217,193
Unassigned - - - - - -
Total Fund Balances 140,483 46,430 2,150,412 1,973,241 234,647 225,147
Total Liabilities and
Fund Balances 140,483$ 54,047$ 2,156,949$ 2,008,261$ 234,688$ 227,306$
98
Nature Public Wood Lake Utility
Recreation Center Health Half Franchise Swimming Special Wood Lake
Contribution Contribution Grants Marathon Fees Pool Facilities Endowment Total
66,774$ 136,282$ 106,193$ 54,302$ 1,033,899$ -$ 46,179$ 236,666$ 5,921,401$
85 242 194 100 4,163 - 82 476 13,070
- - - - 477,946 70 - - 691,676
- - 16,501 - - - - - 33,354
- - - - - - - - 342,109
- - - - - 2,870 833 - 3,981
66,859$ 136,524$ 122,888$ 54,402$ 1,516,008$ 2,940$ 47,094$ 237,142$ 7,005,591$
15,217$ 3,803$ -$ -$ -$ 966$ 686$ -$ 31,981$
- - - - - - - - 5,351
- 31 - - - - - - 4,643
- - - - - 475,650 - - 475,650
- - - - - - - - 30,102
15,217 3,834 - - - 476,616 686 - 547,727
- - - - - - 833 - 1,111
51,642 132,690 122,888 - - - - 237,142 786,963
- - - 54,402 1,516,008 - 45,575 - 6,143,466
- - - - - (473,676) - - (473,676)
51,642 132,690 122,888 54,402 1,516,008 (473,676) 46,408 237,142 6,457,864
66,859$ 136,524$ 122,888$ 54,402$ 1,516,008$ 2,940$ 47,094$ 237,142$ 7,005,591$
99
CITY OF RICHFIELD, MINNESOTA
NONMAJOR SPECIAL REVENUE FUNDS
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED DECEMBER 31, 2021
Liquor Public
Contributions Tourism Drug/Safety
Fund Admin Communications Elections Forfeiture Compliance
Revenues
Taxes
Franchise -$ -$ 344,852$ -$ -$ -$
Lodging - 4,620 - - - -
Intergovernmental - - - - 20,206 18,845
Charges for services - - - - - -
Fines and forfeitures - - - - 54,324 -
Interest (loss) on investments 140 52 1,495 1,683 223 205
Miscellaneous - - 2,226 421,545 2,018 15,832
Total Revenues 140 4,672 348,573 423,228 76,771 34,882
Expenditures
Current
Legislative/executive
Administrative services
Personnel services - 10,130 226,749 96,960 - -
Other services and charges - - 142,380 33,977 - -
Public safety
Personnel services - - - - - 1,935
Other services and charges - - - - 39,819 14,163
Recreation services
Personnel services - - - - - -
Other services and charges - - - - - -
Capital outlay
Administrative services - - - - - -
Total Expenditures - 10,130 369,129 130,937 39,819 16,098
Excess (Deficiency) of Revenues
Over (Under) Expenditures 140 (5,458) (20,556) 292,291 36,952 18,784
Other Financing Sources (Uses)
Transfers in 500,000 - - - - -
Transfers out (500,000) - - - - -
Total Other Financing Sources (Uses)- - - - - -
Net Change in Fund Balances 140 (5,458) (20,556) 292,291 36,952 18,784
Fund Balances, January 1 140,343 51,888 2,170,968 1,680,950 197,695 206,363
Fund Balances, December 31 140,483$ 46,430$ 2,150,412$ 1,973,241$ 234,647$ 225,147$
100
Nature Public Wood Lake Utility
Recreation Center Health Half Franchise Swimming Special Wood Lake
Contribution Contribution Grants Marathon Fees Pool Facilities Endowment Total
-$ -$ -$ -$ 1,897,334$ -$ -$ -$ 2,242,186$
- - - - - - - - 4,620
- - 92,155 - - - - - 131,206
- - - - - 512,059 - - 512,059
- - - - - - - - 54,324
42 26 95 48 2,049 - 41 326 6,425
31,828 88,117 - 64,308 - 1,481 52,318 3,670 683,343
31,870 88,143 92,250 64,356 1,899,383 513,540 52,359 3,996 3,634,163
- - - - - - - - 333,839
- - - - 84,060 - - - 260,417
- - - - - - - - 1,935
- - 85,825 - - - - - 139,807
- 4,100 - 15,000 - 218,498 10,780 - 248,378
35,146 52,150 - 26,690 - 250,677 34,045 - 398,708
- - - - 30,001 - - - 30,001
35,146 56,250 85,825 41,690 114,061 469,175 44,825 - 1,413,085
(3,276) 31,893 6,425 22,666 1,785,322 44,365 7,534 3,996 2,221,078
- - - - - 310,000 5,000 - 815,000
- - - - (1,949,740) - (3,024) - (2,452,764)
- - - - (1,949,740) 310,000 1,976 - (1,637,764)
(3,276) 31,893 6,425 22,666 (164,418) 354,365 9,510 3,996 583,314
54,918 100,797 116,463 31,736 1,680,426 (828,041) 36,898 233,146 5,874,550
51,642$ 132,690$ 122,888$ 54,402$ 1,516,008$ (473,676)$ 46,408$ 237,142$ 6,457,864$
101
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BLANK INTENTIONALLY
102
CITY OF RICHFIELD, MINNESOTA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL
LIQUOR CONTRIBUTIONS SPECIAL REVENUE FUND
FOR THE YEAR ENDED DECEMBER 31, 2021
Actual Variance with
Original Final Amounts Final Budget
Revenues
Interest (loss) on investments 900$ 450$ 140$ (310)$
Other Financing Sources (Uses)
Transfers in 450,000 500,000 500,000 -
Transfers out (450,000) (500,000) (500,000) -
Total Financing Sources (Uses)- - - -
Net Change in Fund Balances 900 450 140 (310)
Fund Balances, January 1 140,343 140,343 140,343 -
Fund Balances, December 31 141,243$ 140,793$ 140,483$ (310)$
Budget Amounts
103
CITY OF RICHFIELD, MINNESOTA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL
TOURISM ADMIN SPECIAL REVENUE FUND
FOR THE YEAR ENDED DECEMBER 31, 2021
Actual Variance with
Original Final Amounts Final Budget
Revenues
Taxes 7,500$ 2,180$ 4,620$ 2,440$
Interest (loss) on investments 300 200 52 (148)
Total Revenues 7,800 2,380 4,672 2,292
Expenditures
Current
Administrative services
Personnel services 10,130 5,440 10,130 (4,690)
Net Change in Fund Balances (2,330) (3,060) (5,458) (2,398)
Fund Balances, January 1 51,888 51,888 51,888 -
Fund Balances, December 31 49,558$ 48,828$ 46,430$ (2,398)$
Budget Amounts
104
CITY OF RICHFIELD, MINNESOTA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL
COMMUNICATIONS SPECIAL REVENUE FUND
FOR THE YEAR ENDED DECEMBER 31, 2021
Actual Variance with
Original Final Amounts Final Budget
Revenues
Taxes 361,420$ 361,420$ 344,852$ (16,568)$
Interest (loss) on investments 14,000 7,000 1,495 (5,505)
Miscellaneous - - 2,226 2,226
Total Revenues 375,420 368,420 348,573 (19,847)
Expenditures
Current
Administrative services
Personnel services 240,190 247,190 226,749 20,441
Other services and charges 158,530 158,420 142,380 16,040
Capital outlay
Culture and recreation - 120,000 - 120,000
Total Expenditures 398,720 525,610 369,129 156,481
Net Change in Fund Balances (23,300) (157,190) (20,556) 136,634
Fund Balances, January 1 2,170,968 2,170,968 2,170,968 -
Fund Balances, December 31 2,147,668$ 2,013,778$ 2,150,412$ 136,634$
Budget Amounts
105
CITY OF RICHFIELD, MINNESOTA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL
ELECTIONS SPECIAL REVENUE FUND
FOR THE YEAR ENDED DECEMBER 31, 2021
Actual Variance with
Original Final Amounts Final Budget
Revenues
Interest (loss) on investments 10,000$ 5,000$ 1,683$ (3,317)$
Miscellaneous 246,190 246,190 421,545 175,355
Total Revenues 256,190 251,190 423,228 172,038
Expenditures
Current
Administrative services
Personnel services 101,960 101,960 96,960 5,000
Other services and charges 53,750 53,750 33,977 19,773
Total Expenditures 155,710 155,710 130,937 24,773
Net Change in Fund Balances 100,480 95,480 292,291 196,811
Fund Balances, January 1 1,680,950 1,680,950 1,680,950 -
Fund Balances, December 31 1,781,430$ 1,776,430$ 1,973,241$ 196,811$
Budget Amounts
106
CITY OF RICHFIELD, MINNESOTA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL
DRUG/FORFEITURE SPECIAL REVENUE FUND
FOR THE YEAR ENDED DECEMBER 31, 2021
Actual Variance with
Original Final Amounts Final Budget
Revenues
Intergovernmental -$ -$ 20,206$ 20,206$
Fines and forfeitures 40,000 35,000 54,324 19,324
Interest (loss) on investments 750 750 223 (527)
Miscellaneous - 300 2,018 1,718
Total Revenues 40,750 36,050 76,771 40,721
Expenditures
Current
Public safety
Other services and charges 27,500 37,700 39,819 (2,119)
Net Change in Fund Balances 13,250 (1,650) 36,952 38,602
Fund Balances, January 1 197,695 197,695 197,695 -
Fund Balances, December 31 210,945$ 196,045$ 234,647$ 38,602$
Budget Amounts
107
CITY OF RICHFIELD, MINNESOTA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL
PUBLIC SAFETY COMPLIANCE SPECIAL REVENUE FUND
FOR THE YEAR ENDED DECEMBER 31, 2021
Actual Variance with
Original Final Amounts Final Budget
Revenues
Intergovernmental 9,000$ 15,600$ 18,845$ 3,245$
Interest (loss) on investments 450 500 205 (295)
Miscellaneous 4,000 7,000 15,832 8,832
Total Revenues 13,450 23,100 34,882 11,782
Expenditures
Current
Public safety
Personnel services 3,230 3,500 1,935 1,565
Other services and charges 6,000 20,000 14,163 5,837
Total Expenditures 9,230 23,500 16,098 7,402
Net Change in Fund Balances 4,220 (400) 18,784 19,184
Fund Balances, January 1 206,363 206,363 206,363 -
Fund Balances, December 31 210,583$ 205,963$ 225,147$ 19,184$
Budget Amounts
108
CITY OF RICHFIELD, MINNESOTA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL
RECREATION CONTRIBUTION SPECIAL REVENUE FUND
FOR THE YEAR ENDED DECEMBER 31, 2021
Actual Variance with
Original Final Amounts Final Budget
Revenues
Interest (loss) on investments 200$ 100$ 42$ (58)$
Miscellaneous 25,000 11,000 31,828 20,828
Total Revenues 25,200 11,100 31,870 20,770
Expenditures
Current
Recreation services
Other services and charges 21,000 5,000 35,146 (30,146)
Net Change in Fund Balances 4,200 6,100 (3,276) (9,376)
Fund Balances, January 1 54,918 54,918 54,918 -
Fund Balances, December 31 59,118$ 61,018$ 51,642$ (9,376)$
Budget Amounts
109
CITY OF RICHFIELD, MINNESOTA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL
NATURE CENTER CONTRIBUTION SPECIAL REVENUE FUND
FOR THE YEAR ENDED DECEMBER 31, 2021
Actual Variance with
Original Final Amounts Final Budget
Revenues
Intergovernmental -$ 5,000$ -$ (5,000)$
Interest (loss) on investments 500 500 26 (474)
Miscellaneous 55,000 40,000 88,117 48,117
Total Revenues 55,500 45,500 88,143 42,643
Expenditures
Current
Recreation services
Personnel services 22,780 8,200 4,100 4,100
Other services and charges 30,000 - 52,150 (52,150)
Total Expenditures 52,780 8,200 56,250 (48,050)
Net Change in Fund Balances 2,720 37,300 31,893 (5,407)
Fund Balances, January 1 100,797 100,797 100,797 -
Fund Balances, December 31 103,517$ 138,097$ 132,690$ (5,407)$
Budget Amounts
110
CITY OF RICHFIELD, MINNESOTA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL
PUBLIC HEALTH GRANTS SPECIAL REVENUE FUND
FOR THE YEAR ENDED DECEMBER 31, 2021
Actual Variance with
Original Final Amounts Final Budget
Revenues
Intergovernmental 38,450$ 59,020$ 92,155$ 33,135$
Interest (loss) on investments 500 500 95 (405)
Total Revenues 38,950 59,520 92,250 32,730
Expenditures
Current
Public safety
Other services and charges 34,410 34,410 85,825 (51,415)
Net Change in Fund Balances 4,540 25,110 6,425 (18,685)
Fund Balances, January 1 116,463 116,463 116,463 -
Fund Balances, December 31 121,003$ 141,573$ 122,888$ (18,685)$
Budget Amounts
111
CITY OF RICHFIELD, MINNESOTA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL
WOOD LAKE HALF MARATHON SPECIAL REVENUE FUND
FOR THE YEAR ENDED DECEMBER 31, 2021
Actual Variance with
Original Final Amounts Final Budget
Revenues
Interest (loss) on investments 100$ 50$ 48$ (2)$
Miscellaneous 69,000 61,000 64,308 3,308
Total Revenues 69,100 61,050 64,356 3,306
Expenditures
Current
Recreation services
Personnel services 30,000 30,000 15,000 15,000
Other services and charges 32,000 30,000 26,690 3,310
Total Expenditures 62,000 60,000 41,690 18,310
Net Change in Fund Balances 7,100 1,050 22,666 21,616
Fund Balances, January 1 31,736 31,736 31,736 -
Fund Balances, December 31 38,836$ 32,786$ 54,402$ 21,616$
Budget Amounts
112
CITY OF RICHFIELD, MINNESOTA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL
UTILITY FRANCHISE FEES SPECIAL REVENUE FUND
FOR THE YEAR ENDED DECEMBER 31, 2021
Actual Variance with
Original Final Amounts Final Budget
Revenues
Taxes 1,831,450$ 1,850,000$ 1,897,334$ 47,334$
Interest (loss) on investments 15,000 7,500 2,049 (5,451)
Total Revenues 1,846,450 1,857,500 1,899,383 41,883
Expenditures
Current
Administrative services
Other services and charges 60,000 45,000 84,060 (39,060)
Capital outlay
Administrative services - 50,000 30,001 19,999
Total Expenditures 60,000 95,000 114,061 (19,061)
Excess of Revenues
Over Expenditures 1,786,450 1,762,500 1,785,322 22,822
Other Financing Uses
Transfers out (1,749,740) (1,949,740) (1,949,740) -
Net Change in Fund Balances 36,710 (187,240) (164,418) 22,822
Fund Balances, January 1 1,680,426 1,680,426 1,680,426 -
Fund Balances, December 31 1,717,136$ 1,493,186$ 1,516,008$ 22,822$
Budget Amounts
113
CITY OF RICHFIELD, MINNESOTA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL
SWIMMING POOL SPECIAL REVENUE FUND
FOR THE YEAR ENDED DECEMBER 31, 2021
Actual Variance with
Original Final Amounts Final Budget
Revenues
Charges for services 424,050$ 424,560$ 512,059$ 87,499$
Miscellaneous - - 1,481 1,481
Total Revenues 424,050 424,560 513,540 88,980
Expenditures
Current
Recreation services
Personnel services 224,080 224,050 218,498 5,552
Other services and charges 248,090 227,820 250,677 (22,857)
Total Expenditures 472,170 451,870 469,175 (17,305)
Excess (Deficiency) of Revenues
Over (Under) Expenditures (48,120) (27,310) 44,365 71,675
Other Financing Sources
Transfers in 110,000 310,000 310,000 -
Net Change in Fund Balances 61,880 282,690 354,365 71,675
Fund Balances, January 1 (828,041) (828,041) (828,041) -
Fund Balances, December 31 (766,161)$ (545,351)$ (473,676)$ 71,675$
Budget Amounts
114
CITY OF RICHFIELD, MINNESOTA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL
SPECIAL FACILITIES SPECIAL REVENUE FUND
FOR THE YEAR ENDED DECEMBER 31, 2021
Actual Variance with
Original Final Amounts Final Budget
Revenues
Interest (loss) on investments 100$ 50$ 41$ (9)$
Miscellaneous 50,600 51,800 52,318 518
Total Revenues 50,700 51,850 52,359 509
Expenditures
Current
Recreation services
Personnel services 10,780 10,780 10,780 -
Other services and charges 41,030 41,030 34,045 6,985
Total Expenditures 51,810 51,810 44,825 6,985
Excess (Deficiency) of Revenues
Over (Under) Expenditures (1,110) 40 7,534 7,494
Other Financing Sources (Uses)
Transfers in 5,000 5,000 5,000 -
Transfers out - - (3,024) (3,024)
Total Financing Sources (Uses)5,000 5,000 1,976 (3,024)
Net Change in Fund Balances 3,890 5,040 9,510 4,470
Fund Balances, January 1 36,898 36,898 36,898 -
Fund Balances, December 31 40,788$ 41,938$ 46,408$ 4,470$
Budget Amounts
115
THIS PAGE IS LEFT
BLANK INTENTIONALLY
116
CITY OF RICHFIELD, MINNESOTA
GENERAL FUNDS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL (CONTINUED ON THE FOLLOWING PAGES)
FOR THE YEAR ENDED DECEMBER 31, 2021
Actual Variance with
Original Final Amounts Final Budget
Revenues
Taxes
Property taxes 18,621,410$ 18,621,410$ 15,961,322$ (2,660,088)$
Fiscal disparities - - 2,976,843 2,976,843
Total taxes 18,621,410 18,621,410 18,938,165 316,755
Licenses and permits
Business 322,500 131,000 224,979 93,979
Nonbusiness 742,500 1,112,000 1,470,452 358,452
Total licenses and permits 1,065,000 1,243,000 1,695,431 452,431
Intergovernmental
Federal
Other 135,540 299,720 108,796 (190,924)
State
Local government aid 2,001,680 2,001,680 2,001,686 6
Police and fire aid 599,000 611,250 650,410 39,160
Municipal State aid 460,000 410,900 349,500 (61,400)
Community health services 134,410 177,830 176,835 (995)
Other 21,500 180,930 99,562 (81,368)
County 22,040 21,040 104,980 83,940
Local - 1,000 351 (649)
Total intergovernmental 3,374,170 3,704,350 3,492,120 (212,230)
Charges for services
General government 246,500 31,500 41,255 9,755
Deputy registrar 595,000 474,000 524,983 50,983
Public safety 61,900 23,000 25,799 2,799
Public works 320,000 320,000 323,842 3,842
Park and recreation 329,500 160,020 200,600 40,580
Nature center 58,000 68,270 70,683 2,413
Community development 612,000 612,000 655,392 43,392
Total charges for services 2,222,900 1,688,790 1,842,554 153,764
Fines and forfeitures 280,000 222,000 176,642 (45,358)
Interest (loss) on investments 30,000 25,000 6,838 (18,162)
Miscellaneous
Refunds and reimbursements - - 3,725 3,725
Contributions and donations - - 497 497
Recovery - damage to City property 5,000 5,000 10,900 5,900
Rent 28,100 28,100 27,147 (953)
Other 12,000 12,000 13,167 1,167
Total miscellaneous 45,100 45,100 55,436 10,336
Total Revenues 25,638,580 25,549,650 26,207,186 657,536
Budget Amounts
117
CITY OF RICHFIELD, MINNESOTA
GENERAL FUNDS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 2021
Actual Variance with
Original Final Amounts Final Budget
Expenditures
Current
Legislative/executive
Mayor and City Council
Personnel services 54,610$ 54,380$ 55,720$ (1,340)$
Other services and charges 169,700 167,660 139,463 28,197
Total Mayor and City Council 224,310 222,040 195,183 26,857
Other agencies
Personnel services 31,290 31,290 31,290 -
Other services and charges 70,480 70,480 70,545 (65)
Total other agencies 101,770 101,770 101,835 (65)
City manager
Personnel services 316,520 310,590 303,810 6,780
Other services and charges 41,500 45,120 42,135 2,985
Total city manager 358,020 355,710 345,945 9,765
Legal
Other services and charges 360,530 328,730 298,780 29,950
Total legislative/executive 1,044,630 1,008,250 941,743 66,507
Administrative services
Administration
Personnel services 43,960 44,350 616 43,734
Other services and charges 85,380 85,180 80,241 4,939
Total administration 129,340 129,530 80,857 48,673
Human resources
Other services and charges 57,610 41,370 1,063 40,307
City clerk
Personnel services 636,120 574,090 527,039 47,051
Other services and charges 85,290 91,340 84,614 6,726
Total city clerk 721,410 665,430 611,653 53,777
Total administrative services 908,360 836,330 693,573 142,757
Budget Amounts
118
CITY OF RICHFIELD, MINNESOTA
GENERAL FUNDS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 2021
Actual Variance with
Original Final Amounts Final Budget
Budget Amounts
Expenditures (Continued)
Current (continued)
Finance
Finance
Personnel services 263,260$ 273,680$ 198,560$ 75,120$
Other services and charges 108,550 99,130 185,016 (85,886)
Total finance 371,810 372,810 383,576 (10,766)
Assessing
Other services and charges 371,240 382,190 382,065 125
Total finance 743,050 755,000 765,641 (10,641)
Public safety
Administrative support services
Personnel services 538,800 523,830 471,345 52,485
Other services and charges 508,830 504,230 514,097 (9,867)
Total administrative support services 1,047,630 1,028,060 985,442 42,618
Police operations
Personnel services 7,334,700 7,389,430 7,311,215 78,215
Other services and charges 2,028,490 2,031,210 1,983,697 47,513
Total police operations 9,363,190 9,420,640 9,294,912 125,728
Emergency services
Personnel services 7,440 7,440 7,446 (6)
Other services and charges 28,820 28,720 21,636 7,084
Total emergency services 36,260 36,160 29,082 7,078
Total public safety 10,447,080 10,484,860 10,309,436 175,424
Fire
Fire protection
Personnel services 4,251,050 4,108,760 4,141,804 (33,044)
Other services and charges 744,430 886,560 994,386 (107,826)
Total fire protection 4,995,480 4,995,320 5,136,190 (140,870)
Community development
Administation
Other services and charges 75,610 74,700 75,012 (312)
119
CITY OF RICHFIELD, MINNESOTA
GENERAL FUNDS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 2021
Actual Variance with
Original Final Amounts Final Budget
Budget Amounts
Expenditures (Continued)
Current (continued)
Planning and zoning
Personnel services 273,850$ 264,630$ 275,023$ (10,393)$
Other services and charges 55,090 75,810 76,482 (672)
Total planning and zoning 328,940 340,440 351,505 (11,065)
Inspection
Personnel services 1,026,670 1,048,680 1,002,870 45,810
Other services and charges 265,860 336,400 366,699 (30,299)
Total inspection 1,292,530 1,385,080 1,369,569 15,511
Total community development 1,697,080 1,800,220 1,796,086 4,134
Public works
Administation
Personnel services 150,020 151,040 226,175 (75,135)
Other services and charges 46,140 45,130 32,447 12,683
Total administration 196,160 196,170 258,622 (62,452)
Engineering
Personnel services 336,770 369,950 363,691 6,259
Other services and charges 113,700 132,530 80,950 51,580
Total engineering 450,470 502,480 444,641 57,839
Streets
Personnel services 1,321,110 1,348,850 1,231,778 117,072
Other services and charges 1,143,190 1,186,270 1,282,630 (96,360)
Total streets 2,464,300 2,535,120 2,514,408 20,712
Park maintenance
Personnel services 828,310 839,460 793,101 46,359
Other services and charges 651,400 640,270 646,999 (6,729)
Total park maintenance 1,479,710 1,479,730 1,440,100 39,630
Total public works 4,590,640 4,713,500 4,657,771 55,729
Recreation services
Recreation services administration
Personnel services 276,510 280,860 290,612 (9,752)
Other services and charges 101,390 375,780 361,862 13,918
Total recreation services administration 377,900 656,640 652,474 4,166
Recreation programs
Personnel services 722,650 570,990 527,880 43,110
Other services and charges 378,090 252,930 218,475 34,455
Total recreation programs 1,100,740 823,920 746,355 77,565
120
CITY OF RICHFIELD, MINNESOTA
GENERAL FUNDS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 2021
Actual Variance with
Original Final Amounts Final Budget
Budget Amounts
Expenditures (Continued)
Current (continued)
Wood Lake Nature Center
Personnel services 478,260$ 456,940$ 473,284$ (16,344)$
Other services and charges 121,450 132,440 127,964 4,476
Total Wood Lake Nature Center 599,710 589,380 601,248 (11,868)
Total recreation services 2,078,350 2,069,940 2,000,077 69,863
Total Expenditures 26,504,670 26,663,420 26,300,517 362,903
Excess (Deficiency) of Revenues
Over (Under) Expenditures (866,090) (1,113,770) (93,331) 1,020,439
Other Financing Sources (Uses)
Transfers in 1,096,090 1,343,770 862,770 (481,000)
Transfers out (230,000) (230,000) (230,000) -
Total Other Financing
Sources (Uses)866,090 1,113,770 632,770 (481,000)
Net Change in Fund Balances - - 539,439 539,439
Fund Balances, January 1 10,025,490 10,025,490 10,025,490 -
Fund Balances, December 31 10,025,490$ 10,025,490$ 10,564,929$ 539,439$
121
CITY OF RICHFIELD, MINNESOTA
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF NET POSITION
DECEMBER 31, 2021
Central Garage Information Self Building Compensated
and Equipment Technology Insurance Services Absences Total
Assets
Current Assets
Cash and temporary investments 1,703,952$ 494,057$ 5,057,990$ 1,124,280$ 2,158,885$ 10,539,164$
Receivables
Accrued interest 1,591 698 10,148 1,437 4,567 18,441
Accounts 37,157 77 - - - 37,234
Due from other governments 161 - - 8,322 - 8,483
Advances to other funds - - 67,427 - - 67,427
Prepaid items 11,664 1,296 - 4,443 - 17,403
Total Current Assets 1,754,525 496,128 5,135,565 1,138,482 2,163,452 10,688,152
Noncurrent Assets
Advances to other funds - - 511,670 - - 511,670
Capital assets
Construction in progress 106,953 12,174 - - - 119,127
Buildings and equipment 10,568,372 808,015 - 442,128 - 11,818,515
Less accumulated depreciation (6,402,642) (729,732) - (335,973) - (7,468,347)
Total Capital Assets (Net of
Accumulated Depreciation)4,272,683 90,457 - 106,155 - 4,469,295
Total Noncurrent Assets 4,272,683 90,457 511,670 106,155 - 4,980,965
Total Assets 6,027,208 586,585 5,647,235 1,244,637 2,163,452 15,669,117
Deferred Outflows of Resources
Deferred other postemployment benefits resources 3,606 3,918 - 2,342 - 9,866
Deferred pension resources 132,342 168,164 - 118,720 - 419,226
Total Deferred Outflows of Resources 135,948 172,082 - 121,062 - 429,092
Liabilities
Current Liabilities
Accounts and contracts payable 50,219 8,304 14,054 33,409 - 105,986
Accrued salaries payable 15,407 18,658 - 12,911 - 46,976
Due to other governments 26,270 - 9,265 - - 35,535
Compensated absences payable - current 9,779 13,595 - 13,950 533,524 570,848
Total Current Liabilities 101,675 40,557 23,319 60,270 533,524 759,345
Noncurrent Liabilities
Compensated absences payable 30,888 42,940 - 44,060 1,627,680 1,745,568
Claims and judgements - - 1,113,644 - - 1,113,644
Net pension liability 183,973 233,771 - 165,036 - 582,780
Other postemployment benefits payable 22,391 24,330 - 14,543 - 61,264
Total Noncurrent Liabilities 237,252 301,041 1,113,644 223,639 1,627,680 3,503,256
Total Liabilities 338,927 341,598 1,136,963 283,909 2,161,204 4,262,601
Deferred Inflows of Resources
Deferred other postemployment benefits resources 9,854 10,706 - 6,399 - 26,959
Deferred pension resources 170,298 216,394 - 152,769 - 539,461
Total Deferred Inflows of Resources 180,152 227,100 - 159,168 - 566,420
Net Position
Net investment in capital assets 4,272,683 90,457 - 106,155 - 4,469,295
Unrestricted 1,371,394 99,512 4,510,272 816,467 2,248 6,799,893
Total Net Position 5,644,077$ 189,969$ 4,510,272$ 922,622$ 2,248$ 11,269,188$
122
CITY OF RICHFIELD, MINNESOTA
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
FOR THE YEAR ENDED DECEMBER 31, 2021
Central Garage Information Self Building Compensated
and Equipment Technology Insurance Services Absences Total
Operating Revenues
Charges for services 1,353,487$ 1,064,673$ 926,168$ 921,000$ -$ 4,265,328$
Operating Expenses
Personnel services 404,186 506,755 369,902 387,339 - 1,668,182
Other services and charges 816,057 744,313 888,593 483,195 - 2,932,158
Depreciation 897,936 55,450 - 30,163 - 983,549
Total Operating Expenses 2,118,179 1,306,518 1,258,495 900,697 - 5,583,889
Operating Income (Loss)(764,692) (241,845) (332,327) 20,303 - (1,318,561)
Nonoperating Revenues
Interest (loss) on investments 785 343 17,297 707 2,248 21,380
Miscellaneous revenues 7,215 - - - - 7,215
Gain on sale of capital assets 91,592 - - - - 91,592
Total Nonoperating Revenues 99,592 343 17,297 707 2,248 120,187
Income (Loss) Before Transfers and Contributions (665,100) (241,502) (315,030) 21,010 2,248 (1,198,374)
Transfers In 880,000 185,000 41,000 - - 1,106,000
Transfers Out - - (41,000) - - (41,000)
Change in Net Position 214,900 (56,502) (315,030) 21,010 2,248 (133,374)
Net Position, January 1 5,429,177 246,471 4,825,302 901,612 - 11,402,562
Net Position, December 31 5,644,077$ 189,969$ 4,510,272$ 922,622$ 2,248$ 11,269,188$
123
CITY OF RICHFIELD, MINNESOTA
INTERNAL SERVICE FUNDS
COMBINING STAEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 2021
Central Garage Information Self Building Compensated
and Equipment Technology Insurance Services Absences Total
Cash Flows from Operating Activities
Receipts from customers and users 1,337,688$ 1,064,596$ 926,168$ 921,000$ -$ 4,249,452$
Other operating receipts 7,215 - - - - 7,215
Payments to suppliers (819,033) (852,698) (559,202) (489,526) - (2,720,459)
Payments to employees (426,127) (510,533) (369,902) (381,770) (95,187) (1,783,519)
Net Cash Provided (Used) by
Operating Activities 99,743 (298,635) (2,936) 49,704 (95,187) (247,311)
Cash Flows from Noncapital
Financing Activities
Receipts on interfund balances - - 66,093 - - 66,093
Transfers from other funds 880,000 185,000 41,000 - - 1,106,000
Transfers to other funds - - (41,000) - - (41,000)
Net Cash Provided (Used) by
Noncapital Financing Activities 880,000 185,000 66,093 - - 1,131,093
Cash Flows from Capital and
Related Financing Activities
Acquisition of capital assets (832,923) (20,635) - - - (853,558)
Proceeds from sale of capital assets 96,973 - - - - 96,973
Net Cash Provided (Used) by
and Related Financing Activities (735,950) (20,635) - - - (756,585)
Cash Flows from Investing Activities
Investment receipts (806) (355) 7,147 (731) (2,319) 2,936
Net Increase (Decrease) in
Cash and Cash Equivalents 242,987 (134,625) 70,304 48,973 (97,506) 130,133
Cash and Cash Equivalents, January 1 1,460,965 628,682 4,987,686 1,075,307 2,256,391 10,409,031
Cash and Cash Equivalents, December 31 1,703,952$ 494,057$ 5,057,990$ 1,124,280$ 2,158,885$ 10,539,164$
Reconciliation of Operating Income (Loss)
to Net Cash Provided (Used) by Operating Activities
Operating income (loss)(764,692)$ (241,845)$ (332,327)$ 20,303$ -$ (1,318,561)$
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities
Depreciation 897,936 55,450 - 30,163 - 983,549
Other income related to operations 7,215 - - - - 7,215
(Increase) decrease in assets/deferred outflows of resources
Accounts receivable (18,322) (77) - - - (18,399)
Due from other governments 2,523 - - - - 2,523
Prepaid items (11,664) (1,296) - (4,443) - (17,403)
Deferred OPEB resources 5 (1,649) - (510) - (2,154)
Deferred pension resources (108,094) (140,155) - (98,618) - (346,867)
Increase (decrease) in liabilities/deferred inflows of resources
Accounts payable (17,582) (107,089) (11,540) (1,888) - (138,099)
Accrued salaries payable 4,208 3,831 - 1,989 - 10,028
Due to other governments 26,270 - 9,265 - - 35,535
Compensated absences payable 6,829 1,234 - 12,802 (95,187) (74,322)
Claims and judgements - - 331,666 - - 331,666
Net pension liability (78,090) (68,940) - (52,220) - (199,250)
Other postemployment benefits payable (817) 2,279 - 1,242 - 2,704
Deferred OPEB resources (3,360) (1,849) - (1,174) - (6,383)
Deferred pension resources 157,378 201,471 - 142,058 - 500,907
Net Cash Provided (Used) by
Operating Activities 99,743$ (298,635)$ (2,936)$ 49,704$ (95,187)$ (247,311)$
Schedule of Noncash Capital and
Related Financing Activities
Book value of assets disposed 5,381$ -$ -$ -$ -$ 5,381$
124
CITY OF RICHFIELD, MINNESOTA
SUMMARY FINANCIAL REPORT
GOVERNMENTAL FUNDS
REVENUES AND EXPENDITURES FOR GENERAL OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020
2021 2020
Revenues
Taxes 25,550,272$ 24,436,384$ 4.56 %
Licenses and permits 1,695,431 1,743,695 (2.77)
Intergovernmental 10,896,992 14,493,527 (24.81)
Charges for services 3,383,966 2,251,246 50.32
Fines and forfeits 230,966 202,012 14.33
Special assessments 159,089 229,692 (30.74)
Investment earnings 27,564 265,483 (89.62)
Miscellaneous 969,270 833,164 16.34
Total Revenues 42,913,550$ 44,455,203$ (3.47) %
Per Capita 1,160$ 1,202$ (3.47) %
Expenditures
Current
General government 2,995,213$ 2,900,167$ 3.28 %
Public safety 15,587,368 14,599,965 6.76
Public works 12,153,261 8,907,229 36.44
Culture and recreation 3,773,805 2,724,828 38.50
Community development 1,796,086 1,640,111 9.51
Capital outlay
General government 30,001 - N/A
Public works 136,317 1,333,027 (89.77)
Culture and recreation 1,170,075 3,309,822 (64.65)
Debt service
Principal 3,560,000 3,290,000 8.21
Interest and other charges 1,497,299 1,615,536 (7.32)
Total Expenditures 42,699,425$ 40,320,685$ 5.90 %
Per Capita 1,154$ 1,090$ 5.90 %
Total Long-term Indebtedness 50,034,352$ 55,096,351$ (9.19) %
Per Capita 1,353 1,489 (9.19)
General Fund Balance - December 31 10,564,929$ 10,025,490$ 5.38 %
Per Capita 286 271 5.38
Total
Percent
Increase
(Decrease)
The purpose of this report is to provide a summary of financial information concerning the City of Richfield to
interested citizens. The complete financial statements may be examined at City Hall, 6700 Portland Avenue,
Richfield, MN 55423. Questions about this report should be directed to the Finance Department at (612) 861-9700.
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126
SUPPLEMENTARY FINANCIAL INFORMATION
CITY OF RICHFIELD
RICHFIELD, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2021
127
HOUSING AND REDEVELOPMENT AUTHORITY
OF RICHFIELD, MINNESOTA
COMBINED BALANCE SHEET
GOVERNMENTAL FUNDS
DECEMBER 31, 2021
Special Capital
General Revenue Projects Total
Assets
Cash and temporary investments 1,488,886$ 2,168,093$ 11,302,390$ 14,959,369$
Receivables
Accrued interest 3,750 1,646 20,338 25,734
Taxes 5,970 - - 5,970
Accounts 2,000 2,240 5,366 9,606
Due from other governments 8,654 85,000 4,228 97,882
Due from other funds 312,203 - 1,848,944 2,161,147
Long term second mortgage receivable 170,660 2,342,048 - 2,512,708
Allowance for uncollectible accounts (170,660) (2,342,048) - (2,512,708)
Assets held for resale 187,696 - 3,884,247 4,071,943
Total Assets 2,009,159$ 2,256,979$ 17,065,513$ 21,331,651$
Liabilities
Accounts and contracts payable 76,360$ 2,532$ 24,607$ 103,499$
Deposits Payables - - 7,050 7,050
Due to other governments - - 16,922 16,922
Due to other funds - - 2,161,147 2,161,147
Total Liabilities 76,360 2,532 2,209,726 2,288,618
Deferred Inflows of Resources
Unavailable revenues - delinquent taxes 5,970 - - 5,970
Fund Balances
Restricted 187,696 - 3,884,247 4,071,943
Committed - 894,604 - 894,604
Assigned - 761,510 3,354,403 4,115,913
Unassigned 1,739,133 598,333 7,617,137 9,954,603
Total Fund Balances 1,926,829 2,254,447 14,855,787 19,037,063
Total Liabilities, Deferred
Inflows of Resources
and Fund Balances 2,009,159$ 2,256,979$ 17,065,513$ 21,331,651$
Fund balance reported above 19,037,063$
Allocation to reflect consolidation on internal service fund activities related
to component unit (567,872)
Some receivables are not available soon enough to pay for the current period's expenditures,
and therefore are unavailable in the funds.
Delinquent taxes 5,970
Net position of component unit activities 18,475,161$
128
HOUSING AND REDEVELOPMENT AUTHORITY
OF RICHFIELD, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2021
Special Capital
General Revenue Projects Total
Revenues
Tax increments -$ -$ 5,818,864$ 5,818,864$
Taxes 626,410 - - 626,410
Intergovernmental - 1,942,343 34,081 1,976,424
Interest (loss) on investments 2,882 163 10,011 13,056
Miscellaneous 797,617 44,897 2,595,529 3,438,043
Total Revenues 1,426,909 1,987,403 8,458,485 11,872,797
Expenditures
Current
General government
Personal services 277,969 - 369,944 647,913
Other services and charges 130,060 2,126,000 429,571 2,685,631
Capital outlay
General government - - 502,892 502,892
Debt service
Principal - - 787,719 787,719
Interest and other - - 2,854,980 2,854,980
Total Expenditures 408,029 2,126,000 4,945,106 7,479,135
Excess (Deficiency) of Revenues
Over (Under) Expenditures 1,018,880 (138,597) 3,513,379 4,393,662
Other Financing Sources (Uses)
Transfers in - 740,000 1,207,466 1,947,466
Transfers out (647,600) (103,997) (1,195,869) (1,947,466)
Total Other Financing
Sources (Uses)(647,600) 636,003 11,597 -
Net Change in Fund Balances 371,280 497,406 3,524,976 4,393,662
Fund Balances, January 1 1,555,549 1,757,041 11,330,811
Fund Balances, December 31 1,926,829$ 2,254,447$ 14,855,787$
Adjustment to reflect the consolidation of internal service fund activities related to component unit (33,416)
Adjustment to reflect the change in other long-term assets not available
to pay current period expenditures 480
Change in net position of component unit activities 4,360,726$
129
OF RICHFIELD, MINNESOTA
FINANCIAL DATA SCHEDULES
BALANCE SHEET
DECEMBER 31, 2021
Assets
111 Cash - unrestricted 94,458$
113 Cash - other restricted 10,217
128 Fraud recovery 15,288
128.1 Allowance for doubtful accounts - fraud (13,000)
129 Accrued interest receivable 594
290 Total Assets 107,557$
Liabilities
312 Accounts payable <= 90 days 353$
Net Position
511.4 Restricted 10,217
512.4 Unrestricted 96,987
513 Total Net Position 107,204
600 Total Liabilities, Deferred
Inflows of Resources
and Fund Balances 107,557$
HOUSING AND REDEVELOPMENT AUTHORITY - HOUSING CHOICE VOUCHERS
130
OF RICHFIELD, MINNESOTA
FINANCIAL DATA SCHEDULES
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2021
Revenues
70600 HUD PHA operating grants 1,676,875$
71500 Other revenue 663,517
70000 Total Revenues 2,340,392
Expenditures
Administrative expenses
91100 Administrative salaries 95,614
91400 Advertising and marketing 39
91500 Employee benefit contributions - administrative 52,489
91600 Office expenses 30,819
91000 Total administrative expenses 178,961
Tenant services
92100 Tenant services - salaries 41,612
92400 Tenant services - other 6,406
92500 Total tenant services 48,018
General expenses
96200 Other general expenses 25,060
96900 Total Expenditures 252,039
Excess (Deficiency) of Revenues
Over (Under) Expenditures 2,088,353
Other Expenses
97300 Housing assistance payments 1,515,356
97350 HAP Portability-in 597,758
90000 Total Other Expenses 2,113,114
Net Increase (Decrease) in Net Position (24,761)
Net Position, January 1 131,965
Net Position, December 31 107,204$
Memo account information
11170 Administrative fee equity 96,987$
11180 Housing assistance payments equity 10,217
Total net position 107,204$
11190 Unit months available 2,772
11210 Number of unit months leased 2,237
Notes: Financial Data Schedules - U.S. Department of Housing and Urban Development
HOUSING AND REDEVELOPMENT AUTHORITY - HOSING CHOICE VOUCHERS
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.
131
Assets
Cash and temporary investments 808,493$
Receivables
Accrued interest 1,341
Taxes 5,680
Due from other governments 7,756
Deferred loan receivable 669,818
Allowance for uncollectible accounts (669,818)
Total Assets 823,270$
Liabilities
Accounts and contracts payable 25,132
Deferred Inflows of Resources
Unavailable revenues - delinquent taxes 5,680
Fund Balances
Unassigned 792,458
Total Liabilities, Deferred Inflows
of Resources and Fund Balances 823,270$
Fund balance reported above 792,458$
Some receivables are not available soon enough to pay for the
current period's expenditures, and therefore are unavailable in the funds.
Delinquent taxes 5,680
Net position of component unit activities 798,138$
ECONOMIC DEVELOPMENT AUTHORITY
OF RICHFIELD, MINNESOTA
GENERAL FUND
BALANCE SHEET
DECEMBER 31, 2021
132
Revenues
Taxes 536,357$
Interest (loss) on investments 660
Miscellaneous 2,100
Total Revenues 539,117
Expenditures
Current
General government
Personal services 67,764
Other services and charges 300,742
Total Expenditures 368,506
Net Change in Fund Balances 170,611
Fund Balances, January 1 621,847
Fund Balances, December 31 792,458$
Adjustment to reflect the change in other long-term assets not available
to pay current period expenditures 701
Change in net position of component unit activities 171,312$
FOR THE YEAR ENDED DECEMBER 31, 2021
ECONOMIC DEVELOPMENT AUTHORITY
OF RICHFIELD, MINNESOTA
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
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134
STATISTICAL SECTION (UNAUDITED)
CITY OF RICHFIELD
RICHFIELD, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2021
135
CITY OF RICHFIELD, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
2012 2013 2014 2015
Governmental Activities
Net investment in capital assets 50,719,652$ 48,633,166$ 53,868,489$ 53,489,119$
Restricted 4,773,505 2,824,310 3,625,019 6,159,180
Unrestricted 16,420,037 20,321,278 17,269,452 5,339,294
Total Governmental Activities Net Position 71,913,194$ 71,778,754$ 74,762,960$ 64,987,593$
Business-type Activities
Net investment in capital assets 18,482,474$ 19,212,879$ 14,105,007$ 14,610,034$
Restricted 272,507 272,507 - -
Unrestricted 5,062,397 3,890,596 9,019,091 2,723,163
Total Business-type Activities Net Position 23,817,378$ 23,375,982$ 23,124,098$ 17,333,197$
Total Primary Government
Net investment in capital assets 69,202,126$ 67,846,045$ 67,973,496$ 68,099,153$
Restricted 5,046,012 3,096,817 3,625,019 6,159,180
Unrestricted 21,482,434 24,211,874 26,288,543 8,062,457
Total Primary Government Net Position 95,730,572$ 95,154,736$ 97,887,058$ 82,320,790$
Fiscal Year
136
TABLE 1
2016 2017 2018 2019 2020 2021
51,478,014$ 46,432,821$ 44,695,707$ 46,258,802$ 46,316,911$ 51,429,664$
3,093,111 3,388,199 6,336,024 5,933,995 7,253,345 16,485,325
(428,034) (4,174,406) (8,092,783) (16,378,793) (8,288,323) (3,540,422)
54,143,091$ 45,646,614$ 42,938,948$ 35,814,004$ 45,281,933$ 64,374,567$
16,757,963$ 19,656,557$ 23,309,355$ 20,657,979$ 20,657,979$ 21,303,212$
- - - - - -
2,429,606 4,155,490 4,418,358 5,970,660 5,970,660 6,361,197
19,187,569$ 23,812,047$ 27,727,713$ 26,628,639$ 26,628,639$ 27,664,409$
68,235,977$ 60,155,878$ 59,206,662$ 58,559,804$ 58,758,640$ 64,876,476$
3,093,111 3,388,199 6,336,024 5,933,995 7,253,345 16,485,325
2,001,572 5,914,584 5,123,975 (3,108,970) 5,898,587 10,677,175
73,330,660$ 69,458,661$ 70,666,661$ 61,384,829$ 71,910,572$ 92,038,976$
Fiscal Year
137
CITY OF RICHFIELD, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
CHANGES IN NET POSITION (CONTINUED ON THE FOLLOWING PAGES)
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
2012 2013 2014 2015
Expenses
Governmental activities
General government 2,874,868$ 3,042,891$ 3,102,253$ 3,112,271$
Public safety 11,635,483 11,735,025 11,767,776 12,512,132
Community development 1,136,623 1,322,175 1,360,558 1,390,908
Public works 7,076,058 9,545,980 9,647,341 15,932,128
Culture and recreation 2,015,873 2,154,180 3,882,319 3,973,233
Interest on long-term debt 1,496,022 1,196,968 1,220,893 1,118,400
Total Governmental Activities Expenses 26,234,927 28,997,219 30,981,140 38,039,072
Business-type activities
Liquor 10,799,198 10,308,021 10,639,175 10,246,033
Water and sewer utility 6,699,992 7,217,814 7,271,227 7,503,496
Storm sewer utility 1,167,332 1,260,211 1,220,584 1,263,819
Recreation fund 1,679,838 1,745,104 - -
Total Business-type Activities Expenses 20,346,360 20,531,150 19,130,986 19,013,348
Total Primary Government Expenses 46,581,287$ 49,528,369$ 50,112,126$ 57,052,420$
Program Revenues
Governmental activities
Charges for services
General government 514,721$ 545,092$ 672,182$ 795,899$
Public safety 699,246 834,563 863,073 842,342
Community development 1,188,057 985,884 1,305,144 1,146,164
Public works 290,307 309,848 308,784 307,611
Culture and recreation 413,146 419,164 1,608,943 1,721,646
Operating grants and contributions 1,448,749 1,295,566 1,449,484 1,305,392
Capital grants and contributions 3,221,764 2,585,689 3,065,904 6,134,825
Total Governmental Activities Program Revenues 7,775,990 6,975,806 9,273,514 12,253,879
Business-type activities
Charges for services
Liquor 11,807,489 11,137,402 11,500,417 10,859,642
Water and sewer utility 6,940,791 7,008,087 7,222,179 7,314,887
Storm sewer utility 1,238,267 1,117,761 1,204,476 1,181,739
Recreation fund 1,131,040 1,120,189 - -
Operating grants and contributions - - - -
Capital grants and contributions - - - 200,000
Total Business-type Activities Program Revenues 21,117,587 20,383,439 19,927,072 19,556,268
Total Primary Government Program Revenues 28,893,577$ 27,359,245$ 29,200,586$ 31,810,147$
Fiscal Year
138
TABLE 2
2016 2017 2018 2019 2020 2021
3,503,975$ 3,261,312$ 3,205,714$ 3,365,461$ 3,443,118$ 3,591,071$
16,846,901 13,706,386 12,958,838 14,234,972 14,767,550 14,455,290
1,489,202 1,364,675 1,552,826 1,676,267 1,601,218 1,730,362
16,161,254 15,028,590 13,039,259 21,901,131 11,146,122 8,969,332
4,244,085 4,142,433 4,308,628 4,196,419 3,426,087 4,666,522
1,786,750 1,751,627 1,563,101 1,449,654 1,487,038 1,317,337
44,032,167 39,255,023 36,628,366 46,823,904 35,871,133 34,729,914
10,018,719 10,729,098 10,824,828 11,904,943 12,384,877 12,979,538
8,067,365 7,957,436 8,262,064 8,330,939 8,272,505 8,380,422
1,462,684 1,623,854 1,720,653 1,924,222 2,057,741 2,043,408
- - - - - -
19,548,768 20,310,388 20,807,545 22,160,104 22,715,123 23,403,368
63,580,935$ 59,565,411$ 57,435,911$ 68,984,008$ 58,586,256$ 58,133,282$
830,145$ 762,824$ 793,277$ 893,750$ 590,246$ 951,034$
658,591 735,790 754,699 780,881 535,792 500,678
1,383,804 1,289,746 1,696,677 2,204,262 2,137,248 2,137,779
309,235 309,361 317,813 305,451 237,698 338,892
1,751,634 1,694,849 1,868,941 1,831,136 605,969 1,927,900
1,434,327 1,463,533 1,463,533 1,562,337 4,238,000 1,456,035
4,733,815 3,590,702 3,590,702 4,159,314 8,163,705 17,781,877
11,101,551 9,846,805 10,485,642 11,737,131 16,508,658 25,094,195
10,457,318 11,351,640 11,561,557 12,678,003 13,262,924 13,927,926
7,647,683 8,023,101 8,648,729 8,826,120 8,716,310 9,227,632
1,352,699 1,495,191 1,768,394 1,828,180 2,047,290 2,043,821
- - - - - -
- - - - - -
- - - - - -
19,457,700 20,869,932 21,978,680 23,332,303 24,026,524 25,199,379
30,559,251$ 30,716,737$ 32,464,322$ 35,069,434$ 40,535,182$ 50,293,574$
Fiscal Year
139
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)
2012 2013 2014 2015
Net Revenues (Expenses)
Governmental activities (18,458,937)$ (22,021,413)$ (21,707,626)$ (25,755,193)$
Business-type activities 771,227 (147,711) 796,086 542,920
Total Primary Government Net Revenues (Expenses)(17,687,710)$ (22,169,124)$ (20,911,540)$ (25,212,273)$
General Revenues and Other Changes in Net Position
Governmental activities
Taxes
Property taxes 17,025,767$ 17,985,988$ 18,613,321$ 18,388,710$
Franchise taxes 1,259,670 1,304,716 1,973,751 2,230,602
Grants and contributions not restricted to specific programs 1,230,268 1,223,981 1,937,907 2,054,379
Other general revenues 631,131 710,988 809,564 1,069,172
Transfers 633,490 661,300 866,460 1,009,749
Total Governmental Activities 20,780,326 21,886,973 24,201,003 24,752,612
Business-type activities
Other general revenues 181,527 481,633 309,319 335,616
Transfers (633,490) (661,300) (866,460) (1,009,749)
Special item - - - -
Total Business-type Activities (451,963) (179,667) (557,141) (674,133)
Total Primary Government 20,328,363$ 21,707,306$ 23,643,862$ 24,078,479$
Change in Net Position
Governmental activities 2,321,389$ (134,440)$ 2,493,377$ (1,002,581)$
Business-type activities 319,264 (327,378) 238,945 (131,213)
Total Primary Government 2,640,653$ (461,818)$ 2,732,322$ (1,133,794)$
Fiscal Year
140
TABLE 2
2016 2017 2018 2019 2020 2021
(32,930,616)$ (29,789,259)$ (26,142,724)$ (35,086,773)$ (19,272,475)$ (9,635,719)$
(91,068) 559,544 1,171,135 1,172,199 1,311,401 1,796,011
(33,021,684)$ (29,229,715)$ (24,971,589)$ (33,914,574)$ (17,961,074)$ (7,839,708)$
18,398,414$ 19,075,553$ 20,019,144$ 20,887,161$ 22,183,130$ 23,336,637$
2,260,122 2,264,759 224,216 2,241,396 2,235,139 2,242,186
2,084,057 2,094,443 2,229,280 2,235,643 2,366,046 2,104,750
940,123 1,573,837 1,772,578 2,057,553 1,187,879 217,010
(1,596,613) (3,715,810) (2,727,229) 308,930 768,210 827,770
22,086,103 21,292,782 21,517,989 27,730,683 28,740,404 28,728,353
348,827 349,124 434,240 502,377 514,623 67,529
1,596,613 3,715,810 2,727,229 (308,930) (768,210) (827,770)
- - (93,263) (335,943) - -
1,945,440 4,064,934 3,068,206 (142,496) (253,587) (760,241)
24,031,543$ 25,357,716$ 24,586,195$ 27,588,187$ 28,486,817$ 27,968,112$
(10,844,502)$ (8,496,477)$ (2,606,735)$ (7,356,090)$ 9,467,929$ 19,092,634$
1,854,372 4,624,478 4,239,341 1,029,703 1,057,814 1,035,770
(8,990,130)$ (3,871,999)$ 1,632,606$ (6,326,387)$ 10,525,743$ 20,128,404$
Fiscal Year
141
CITY OF RICHFIELD, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
2012 2013 2014 2015
General Fund
Nonspendable 9,159$ 4,399$ 57,292$ 3,667$
Restricted 45,800 76,800 22,000 -
Unassigned 7,232,157 8,029,014 9,111,824 9,922,952
Total General Fund 7,287,116$ 8,110,213$ 9,191,116$ 9,926,619$
All Other Governmental Funds
Nonspendable 1,001,348$ 19,644$ 21,450$ 7,203$
Restricted 4,234,679 3,088,157 4,137,256 10,128,899
Committed 630,787 1,038,100 1,023,281 955,348
Assigned 15,858,720 13,113,187 13,249,048 14,066,297
Unassigned (3,026,964) (3,246,835) (2,727,214) (1,949,474)
Total All Other Governmental Funds 18,698,570$ 14,012,253$ 15,703,821$ 23,208,273$
Fiscal Year
142
TABLE 3
2016 2017 2018 2019 2020 2021
15,799$ 141,195$ 12,679$ 177,753$ 28,365$ 47,489$
- - - - 16,118 -
9,600,129 10,038,550 10,520,461 11,313,120 12,870,165 10,517,440
9,615,928$ 10,179,745$ 10,533,140$ 11,490,873$ 12,914,648$ 10,564,929$
2,887$ 17,761$ 105,287$ 15,236$ 1,485$ 1,111$
18,332,804 20,275,918 16,286,001 10,642,272 8,785,571 3,090,932
720,397 738,817 1,790,562 2,836,946 4,078,939 13,661,056
13,408,861 17,069,166 22,069,612 21,371,523 24,710,670 5,518,491
(1,847,409) (3,741,559) (6,573,705) (4,101,728) (1,749,993) (3,798,986)
30,617,540$ 34,360,103$ 33,677,757$ 30,764,249$ 35,826,672$ 18,472,604$
Fiscal Year
143
CITY OF RICHFIELD, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
2012 2013 2014 2015
Revenues
Taxes 16,975,557$ 18,116,437$ 18,370,724$ 18,407,060$
Franchise taxes 1,259,670 1,304,716 1,973,751 2,230,602
Special assessments 338,582 295,384 975,724 222,667
Fines and forfeitures 377,343 467,095 493,947 442,278
License and permits 928,747 938,455 1,030,746 985,367
Intergovernmental 5,502,036 4,903,648 5,486,032 9,272,706
Charges for services 1,799,387 1,689,001 3,233,433 3,386,017
Interest (loss) on investments 58,402 35,355 62,931 56,206
Miscellaneous 530,813 638,488 726,303 980,395
Total Revenues 27,770,537 28,388,579 32,353,591 35,983,298
Expenditures
Current
General government 2,184,584 2,207,715 2,478,487 2,523,323
Public safety 11,170,066 11,724,644 11,322,841 11,781,433
Community development 1,096,509 1,215,361 1,297,986 1,337,103
Public works 4,854,365 7,244,947 7,424,484 13,814,201
Recreation services 1,756,185 1,795,561 3,207,929 3,282,355
Capital outlay 3,318,328 1,983,513 2,344,400 2,363,164
Debt service
Principal 2,850,000 1,830,000 2,760,000 2,565,000
Interest and other charges 1,602,365 1,230,904 1,257,263 1,271,643
Total Expenditures 28,832,402 29,232,645 32,093,390 38,938,222
Excess (Deficiency) of Revenues
Over (Under) Expenditures (1,061,865) (844,066) 260,201 (2,954,924)
Other Financing Sources (Uses)
Bond proceeds 5,090,000 3,120,000 - 9,100,000
Premium on bonds issued 20,307 76,365 - 278,526
Sale of capital assets - 6,804 - -
Payment to refunded bond escrow agent (2,705,000) - - -
Transfers in 5,016,917 5,773,029 3,333,711 11,965,883
Transfers out (5,186,940) (5,806,099) (3,227,251) (11,848,134)
Total Other Financing Sources (Uses)2,235,284 3,170,099 106,460 9,496,275
Net Change in Fund Balances 1,173,419$ 2,326,033$ 366,661$ 6,541,351$
Debt Service as a Percentage of
Noncapital Expenditures 17.5%11.2%13.5%10.5%
Fiscal Year
144
TABLE 4
2016 2017 2018 2019 2020 2021
18,357,209$ 19,112,961$ 20,041,028$ 20,876,291$ 22,201,245$ 23,308,086$
2,260,122 2,264,759 2,242,216 2,241,396 2,235,139 2,242,186
194,607 206,140 202,308 232,098 229,692 159,089
279,437 345,143 363,806 401,118 202,012 230,966
1,124,025 1,061,107 1,385,288 1,734,871 1,743,695 1,695,431
7,971,353 6,526,885 6,995,230 7,532,797 14,493,527 10,896,992
3,529,947 3,386,320 3,682,313 3,879,491 2,251,246 3,383,966
157,444 247,818 685,353 689,997 265,483 27,564
719,430 1,254,319 951,055 1,197,637 833,164 969,270
34,593,574 34,405,452 36,548,597 38,785,696 44,455,203 42,913,550
2,602,322 2,633,435 2,652,810 2,757,627 2,900,167 2,995,213
12,367,364 12,471,350 12,993,392 14,018,093 14,599,965 15,587,368
1,330,766 1,349,571 1,471,067 1,586,564 1,640,111 1,796,086
13,457,283 12,643,244 10,834,054 19,635,955 8,907,229 12,153,261
3,382,122 3,379,327 3,615,978 3,567,386 2,724,828 3,773,805
2,951,196 4,636,951 4,441,313 9,773,296 4,642,849 1,336,393
2,125,000 8,140,000 2,365,000 8,870,000 3,290,000 3,560,000
1,563,351 1,699,998 1,597,997 1,658,046 1,615,536 1,497,299
39,779,404 46,953,876 39,971,611 61,866,967 40,320,685 42,699,425
(5,185,830) (12,548,424) (3,423,014) (23,081,271) 4,134,518 214,125
11,215,000 12,175,000 9,770,000 5,290,000 4,365,000 -
516,582 319,366 151,774 314,825 170,520 -
- - - - - -
- (2,950,000) - - - (1,385,000)
4,368,205 5,333,223 11,296,324 12,196,655 11,766,403 5,532,754
(4,860,995) (6,172,033) (11,851,404) (12,887,725) (12,013,193) (5,769,984)
11,238,792 8,705,556 9,366,694 4,913,755 4,288,730 (1,622,230)
6,052,962$ (3,842,868)$ 5,943,680$ (18,167,516)$ 8,423,248$ (1,408,105)$
10.0%23.3%11.1%20.2%13.7%14.3%
Fiscal Year
145
Table 5CITY OF RICHFIELD, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
ASSESSED VALUE AND ESTIMATED ACTUA LVALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
Fiscal
Year Total Taxable Estimated
Ended Residential Commercial Industrial Assessed Actual
December 31,Property Property Property Value Value
2012 1,816,389$ 489,491$ 7,992$ 2,313,872$ 2,534,910$ 62.56 %
2013 1,934,597 507,270 7,902 2,449,769 2,672,791 65.67
2014 1,971,484 548,560 7,859 2,527,903 2,736,099 66.17
2015 2,061,584 577,408 12,690 2,651,682 2,854,982 61.66
2016 2,260,137 605,362 13,567 2,879,066 3,091,380 62.66
2017 2,462,327 582,035 14,300 3,058,662 3,263,103 58.41
2018 2,768,600 612,983 18,206 3,399,789 3,566,514 59.34
2019 3,027,897 637,461 16,848 3,682,206 3,838,900 54.74
2020 3,316,198 660,222 16,482 3,992,902 3,992,899 54.73
2021 3,435,888 655,139 16,678 4,107,705 4,251,546 55.50
(1) Includes both City and Housing and Redevelopment Authority Rates.
Source: Hennepin County Finance Department
Tax Capacity
Tax Rate
Total Direct
146
Table 6CITY OF RICHFIELD, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
Fiscal
Year
2012 54.210 %6.590 %1.760 %62.560 %28.890 %48.230 %9.520 %149.200 %
2013 56.770 7.290 1.600 65.660 31.010 49.460 10.090 156.220
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
Source: Hennepin County Assessing Office
General CityDebtHRA
Total
Direct City Rates
Metropolitan
Overlapping Rates (1)
Total
Rates
Overlapping
Direct &
School
District County Agencies
Hennepin
147
Table 7CITY OF RICHFIELD, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
PRINCIPAL PROPERTY TAXPAYERS
CURRENT AND NINE YEARS AGO
Net Net
Tax Tax
Taxpayer Capacity Rank Taxpayer Capacity Rank
Best Buy Company, Inc.2,369,250$ 1 5.33 %Best Buy Company, Inc.2,757,880$ 1 11.13 %
Meridian Crossings LLC 1,225,330 3 2.75 Meridian Crossings LLC 813,690 3 3.28
JRK Investors, Inc.1,145,875 2 2.58 CSM Corporation 390,530 2 1.58
JIW Inc.699,250 4 1.57 Crossroads at Penn LLC 357,725 4 1.44
Ryan Companies 401,410 5 0.90 Target Corporation 335,050 5 1.35
Individuals 393,730 6 0.89 Centro Bradley SPE 1 LLC 309,250 6 1.25
Market Plaza Consolidated 379,188 8 0.85 SCM Shops, Inc.298,890 8 1.21
CSM Corporation 361,850 7 0.81 Wood Lake-Vef IV LLC 293,570 7 1.18
Menard, Inc.359,250 9 0.81 Richfield GLHD LLC 226,210 9 0.91
ROP Investment Co., LLC 348,213 10 0.78 Northmarq RE Services 203,590 10 0.82
Total 7,683,346$ 17.27 %5,986,385$ 24.15 %
Source: Hennepin County Assessing Office
Tax Capacity Tax Capacity
2021 2012
Percent of Percent of
Total Net Total Net
148
Table 8CITY OF RICHFIELD, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
PROPERTY TAX LEVIES AND COLLETIONS
LAST TEN FISCAL YEARS
Total Tax Collection Delinquent Outstanding
Fiscal Levy for of Current Tax Total Delinquent
Year Fiscal Year Year's Levy Collections Collections Taxes
2012 17,477,266$ 17,261,829$ 98.77 %-$ 17,261,829$ -$ - %
2013 17,744,951 17,631,536 99.36 - 17,631,536 - -
2014 18,012,303 17,933,454 99.56 - 17,933,454 - -
2015 18,745,569 18,685,167 99.68 - 18,685,167 - -
2016 19,125,557 19,001,616 99.35 6,106 19,007,722 18,632 0.10
2017 19,664,285 19,568,641 99.51 3,830 19,572,471 8,282 0.04
2018 21,083,735 20,972,448 99.47 (17,311) 20,955,137 54,099 0.26
2019 22,089,350 21,973,828 99.48 -(10,745) 21,963,083 27,946 0.13
2020 23,267,441 23,178,920 99.62 -1,329 23,180,249 24,784 0.11
2021 23,735,662 23,567,746 99.29 - 23,567,746 105,371 0.00
Source: Hennepin County Assessing Office
Collected to Levy
Percentage
Percentage of Total
of Levy Collections
149
Table 9CITY OF RICHFIELD, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
General Water and Total Debt
Fiscal Redevelopment Obligation (G.O.)Storm Sewer Ice Arena Sewer Water Sewer Primary Per
Year Bonds Bonds Bonds Bonds Bonds Bonds Bonds Government Capita
2012 8,955,000$ 23,880,000$ 2,075,000$ 870,000$ 4,975,000$ 1,480,000$ -$ 42,235,000$ - %1,174$
2013 8,340,000 25,785,000 4,790,431 780,000 4,730,000 1,428,526 - 45,853,957 - 1,274
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 6,116,394 - - 5,651,987 1,094,776 62,897,509 - 1,700
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
Governmental Activities Business-type Activities
150
Table 10CITY OF RICHFIELD, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
Less: Amounts
General Avaiable in
Fiscal Obligation Redevelopment Debt Service Net
Year Bonds Bonds Total Fund Total Per Capita (2)
2012 23,880,000$ 8,955,000$ 32,835,000$ 1,525,230$ 31,309,770$ 1.35 %913$
2013 25,785,000 8,340,000 34,125,000 1,680,344 32,444,656 1.32 947
2014 24,460,000 7,685,000 32,145,000 2,388,013 29,756,987 1.18 889
2015 31,989,510 7,020,000 39,009,510 1,653,862 37,355,648 1.41 1,067
2016 42,212,887 6,340,000 48,552,887 2,192,838 46,360,049 1.61 1,336
2017 44,228,837 5,645,000 49,873,837 1,904,043 47,969,794 1.57 1,372
2018 52,399,608 4,940,000 57,339,608 2,356,747 54,982,861 1.62 1,569
2019 49,747,831 4,220,000 53,967,831 3,039,324 50,928,507 1.50 1,481
2020 51,621,351 3,475,000 55,096,351 3,440,778 51,655,573 1.52 1,489
2021 47,319,352 2,715,000 50,034,352 5,407,384 44,626,968 1.18 1,352
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
Taxable Property (1)
Percentage of
151
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BLANK INTENTIONALLY
152
Table 11CITY OF RICHFIELD, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
DECEMBER 31, 2021
Estimated
Estimated Share of
Debt Percentage Overlapping
Governmental Unit Outstanding (1)Applicable (2)Debt
Hennepin County 1,053,595,000$ 1.84%%19,081,417$
Independent School District #280, Richfield, MN 139,630,000 67.16%86,663,159
Hennepin Suburb Park District 52,890,000 2.61%1,188,660
Hennepin Regional RR Authority 90,580,000 1.84%1,643,719
Metropolitan Council 193,320,000 0.90%657,446
Total Overlapping Debt 1,530,015,000 109,234,401
City of Richfield 45,375,000 100.00%453,750
Total Direct and Overlapping Debt 1,575,390,000$ 109,688,151$
Source: Hennepin County Assessing Office
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.
153
CITY OF RICHFIELD, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
2012 2013 2014 2015
Debt Limit 69,416$ 73,493$ 75,837$ 79,550$
Total Net Debt Applicable to Limit 22,978 24,151 22,875 30,910
Legal Debt Margin 46,438$ 49,342$ 52,962$ 48,640$
Total Net Debt Applicable to the Limit
as a Percent of Debt Limit 33.10%32.86%30.16%38.86%
Fiscal Year
154
Table 12
2016 2017 2018 2019 2020 2021
80,126$ 91,760$ 101,994$ 110,466$ 115,105$ 123,231$
29,522 42,506 50,769 47,972 47,440 44,306
50,604$ 49,254$ 51,225$ 62,494$ 67,665$ 78,925$
36.84%46.32%49.78%43.43%41.21%35.95%
Taxable Market Value 4,107,705$
Debt Limit (3 Percent of Market Value)123,231$
Debt Applicable to Limit
General obligation bonds 44,306
Legal Debt Margin 78,925$
Fiscal Year
Legal Debt Margin Calculation for Fiscal Year 2021
155
Table 13CITY OF RICHFIELD, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
REVENUE BOND COVERAGE
LAST TEN FISCAL YEARS
Direct Net
Fiscal Gross Operating Available
Year Revenue Expense (1)Revenue Principal Interest Total
2012 9,026,205$ (4)6,709,992$ 1,593,210$ 415,000$ 427,749$ 842,749$ 1.89 %
2013 9,246,037 (4)7,683,443 1,593,210 490,000 447,541 937,541 1.70
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
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
156
Table 14CITY OF RICHFIELD, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
Per Capita Education
Fiscal Personal Personal Median Level in Years School
Year Population Income Income Age of Schooling Enrollment
2012 35,979 -$ -$ - - 4,388 4.3 %
2013 36,041 - - - - 4,405 3.8
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
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
Note: Information on personal income, median age, and education levels is not avaiable.
Rate
Unemployment
157
Table 15CITY OF RICHFIELD, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
Employees Rank Employees Rank
Best Buy Corporate office 5,300 1 31.84 Best Buy Corporate office 5,200 1 29.91
U.S. Bancorp 1,350 2 8.11 U.S. Bancorp 1,600 2 9.20
Independent School District #280 1,057 3 6.35 Independent School District #280 667 3 3.84
Super Target 350 4 2.10 Target at Cedar Point Commons 375 4 2.16
City of Richfield 327 5 1.96 Metro Sales, Inc.243 5 1.40
Fraser 299 6 1.80 City of Richfield 218 6 1.25
Headway Emotional Health Services 250 7 1.50 Best Buy Store at Shops at Lyndale 200 7 1.15
Medard, Inc.200 8 1.20 Home Depot at Cedar Point Commons 163 8 0.94
Weis Builders 100 9 0.60 Richfield Health Center 122 9 0.70
Pizza Luce 60 10 0.36 Richfield Bloomington Honda 80 10 0.46
Total 9,293 55.82 %8,868 51.01 %
Source: Ehlers, Minnesota State Business Directory, Richfield Chamber of Commerce, and the Minnesota
Manufactures Register.
Note: Employee totals include only employees with full time status.
Employer Employer
2021 2012
Employment (1)Employment (1)
Percent Percent
of City of City
158
Table 16CITY OF RICHFIELD, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
General Government
Management services 3 3 3 3 3 3 3 3 3 3
Finance 7 5 6 5 6 6 5 6 5 2
City Clerk 8 8 9 9 10 9 9 10 10 10
Assessing 1 1 1 1 1 1 1 - - -
Others 10 10 11 12 11 12 12 11 11 11
Public Safety
Police 46 46 46 48 48 48 48 48 48 48
Dispatchers 6 7 8 - - - - - - -
Others 14 14 14 14 14 14 14 14 14 15
Fire
Firefighters and officers 26 26 26 27 27 26 26 26 26 26
Community Development
Planning/zoning 2 2 2 2 2 2 2 2 2 2
Inspections 7 8 8 8 8 9 9 9 9 8
Others 8 8 8 6 7 8 8 8 10 9
Public Works
Engineering 4 3 3 3 3 4 4 5 5 5
Street and park maintenance 20 20 20 19 20 18 23 23 24 23
Forestry 4 4 4 4 4 4 - - - -
Others 5 5 5 6 6 6 6 6 6 6
Parks and recreation 18 18 33 33 32 32 34 35 30 34
Liquor 28 25 26 25 23 24 24 25 28 33
Water and wastewater 18 18 18 17 16 18 19 19 19 17
Storm water 1 1 1 1 1 1 1 1 1 1
Recreation funds 15 15 - - - - - - - -
Total 251 247 252 243 242 245 248 251 251 253
Source: City budgets and personnel records.
Function
159
Table 17CITY OF RICHFIELD, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Police
Physical arrests 451 490 404 435 471 489 591 491 701 701
Total offenses cited 5,172 6,653 7,274 5,764 4,486 4,818 5,315 4,728 3,429 2,078
Fire
Emergency responses 4,066 4,096 4,135 4,195 4,073 4,287 4,252 4,411 4,451 4,710
Fires extinguished 101 90 75 90 83 72 92 88 104 87
Other public works
Streets resurfacing (miles)0.50 0.20 - 14.30 15.00 16.00 14.40 15 14.25 3
Potholes repaired (tons of asphalt used)441.95 732.00 306.46 100.79 81.40 18.64 84.93 98.2 138.52 97.32
Parks and recreation
Athletic field permits issued 54 58 52 55 56 53 57 58 30 49
Water
New connections 1 2 4 2 6 9 10 11 54 31
Connections eliminated (redevelopment)- - 17 4 18 3 - 6 - 2
Water main breaks 7 13 9 19 16 15 14 11 12 9
Average daily consumption (millions of gallons)3.19 3.02 2.90 2.84 2.70 2.70 2.71 2.55 2.76 2.72
Peak daily consumption (millions of gallons)6.81 6.24 6.01 4.97 4.80 5.23 5.26 3.88 3.03 4.94
Waste water
Average daily sewage treatment (million of gallons)3.08 3.13 3.16 3.16 3.14 3.02 2.42 1.70 2.60 2.65
Sources: Various city departments
Note: Indicators are not available for the general government function
Function
160
Table 18CITY OF RICHFIELD, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
CAPITAL ASSET STATISTICS BY FUNCTION
LAST TEN FISCAL YEARS
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
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)123.43 123.43 123.43 123.43 123.43 123.43 123.43 123.43 123.43 123.43
Highway (miles)7.17 7.17 7.17 7.17 7.17 7.17 7.17 7.17 7.17 7.17
Street lights 3,183 3,349 3,349 3,349 3,349 3,349 3,349 3,349 3,349 3,458
Traffic signals 49 49 49 49 49 49 47 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)121 121 121 121 121 120 120 120 120 120
Fire hydrants 1,046 1,047 1,048 1,052 1,050 1,053 1,053 1,073 1,073 1,074
Storage capacity (millions of gallons)5 5 5 5 5 5 5 5 5 5
Wastewater
Sanitary sewer (miles)119.4 119.4 119.4 119.4 119.4 119.4 118.0 118.0 118.0 118.0
Storm sewer (miles)59.9 59.9 59.9 59.9 59.9 59.9 59.9 59.9 59.9 59.9
Sources: Various city departments
Note: No capital asset indicators are available for the general governments
Function
161
City of Richfield
Hennepin County, Minnesota
Communications Letter
December 31, 2021
City of Richfield
Table of Contents
Report on Matters Identified as a Result of
the Audit of the Basic Financial Statements 1
Material Weakness 3
Required Communication 4
Financial Analysis 9
Emerging Issue 21
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, 2021, in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States, we considered the City's internal control over
financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the
circumstances for the purpose of expressing our opinions on the financial statements, but not for the
purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do
not express an opinion on the effectiveness of the City's internal control over financial reporting.
Our consideration of internal control was for the limited purpose described in the preceding paragraph
and was not designed to identify all deficiencies in internal control that might be material weaknesses or
significant deficiencies and, therefore, material weaknesses or significant deficiencies may exist that
have not been identified. In addition, because of inherent limitations in internal control, including the
possibility of management override of controls, misstatements due to error, or fraud may occur and not
be detected by such controls. However, as discussed below, we identified a deficiency in internal control
that we consider to be a material weakness.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control over financial reporting, such that there is a reasonable
possibility that a material misstatement of the City's basic financial statements will not be prevented, or
detected and corrected, on a timely basis. A reasonable possibility exists when the likelihood of an event
occurring is either reasonably possible or probable as defined as follows:
Reasonably possible. The chance of the future event or events occurring is more than remote
but less than likely.
Probable. The future event or events are likely to occur.
The material weakness identified is stated within this letter.
2
A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less
severe than a material weakness, yet important enough to merit attention by those charged with
governance.
The City’s written response to the material weakness identified in our audit has not been subjected to
audit procedures applied in the audit of the basic financial statements and, accordingly, we express no
opinion on it.
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 1, 2022, on such statements.
This communication, which is an integral part of our audit, is intended solely for the information and use
of the Members of the City Council and management and others within the City and state oversight
agencies and is not intended to be, and should not be, used by anyone other than these specified parties.
Minneapolis, Minnesota
August 1, 2022
3
City of Richfield
Material Weakness
Improve Recreation – Ice Center Systems and Documentation
Upon implementation of new software on October 10, 2021, the City lost access to the legacy system
and was unable to pull details for 2021. As a result, receipt detail was not able to be obtained for the
Recreation – Ice Center during 2021. This finding impacts the City’s ability to record receipts with
appropriate detail to ensure receipts are recorded in the appropriate periods.
We recommend the City ensures appropriate sub-systems are improved and backed up so that staff can
access details at any time.
4
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, 2021. 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.
5
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
o 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
o Management override of internal control is considered a risk in substantially all engagements
as management may be incentivized to produce better results.
Lack of Segregation of Accounting Duties
o If duties cannot be appropriately segregated within the accounting and finance department,
there is a risk of incorrectly recording activity within the City.
6
City of Richfield
Required Communication
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 basic financial statements.
There have been no initial selection of accounting policies and no changes to significant accounting
policies or their application during 2021. 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:
Depreciation – The City is currently depreciating its capital assets over their estimated useful lives,
as determined by management, using the straight-line method.
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.
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.
7
City of Richfield
Required Communication
Uncorrected and Corrected Misstatements
For the purposes of this communication, professional standards require us to accumulate all known and
likely misstatements identified during the audit, other than those that we believe are trivial, and
communicate them to the appropriate level of management. Further, professional standards require us to
also communicate the effects of uncorrected misstatements related to prior periods on the relevant
classes of transactions, account balances or disclosures, and the financial statements taken as a whole
and each applicable opinion unit.
We identified the following uncorrected misstatements of the financial statements. Management has
determined their effects are immaterial, both individually, and in the aggregate, to the financial
statements taken as a whole.
An adjustment to Liquor Store inventory was not made.
In addition, professional standards require us to communicate to you all material, corrected
misstatements that were brought to the attention of management as a result of our audit procedures.
The following material misstatement that we identified as a result of our audit procedures was
brought to the attention of and corrected by management.
Improve Recreation – Ice Center Systems and Documentation
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a
matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or
auditing matter, which could be significant to the City's basic financial statements or the auditor's
report. No such disagreements arose during the course of our audit.
Representations Requested from Management
We have requested certain written representations from management, which are included in the
management representation letter.
Management's Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and
accounting matters. Management has informed us that, and to our knowledge, there were no
consultations with other accountants regarding auditing and accounting matters.
Other Significant Matters, Findings, or Issues
In the normal course of our professional association with the City, we generally discuss a variety of
matters, including the application of accounting principles and auditing standards, significant events
or transactions that occurred during the year, operating and regulatory conditions affecting the City,
and operational plans and strategies that may affect the risks of material misstatement. None of the
matters discussed resulted in a condition to our retention as the City's auditor.
8
City of Richfield
Required Communication
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.
9
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
2021. This surplus, combined with net transfers in of $632,770 resulted in an increase in fund balance of
$539,439 in 2021. The City's total fund balance of $10,564,929 at December 31, 2021, represents 40.2%
of General Fund expenditures based on 2021 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, 2021, the City's unassigned fund
balance amounted to $10,517,440, which excludes nonspendable fund balance for prepaid items of
$47,489. This amount equals 40.0% of the City's 2021 actual General Fund expenditures.
2017 2018 2019 2020 2021
Total Revenues $21,128,170 $22,482,979 $23,738,065 $26,176,379 $26,207,186
Total Expenditures 21,657,027 22,531,930 23,683,617 24,310,173 26,300,517
Fund Balance 8,754,327 8,810,296 9,261,364 10,025,490 10,564,929
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
General Fund Revenues, Expenditures, and Fund Balance
10
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 $30,807 from 2020. Property taxes increased $1,378,967 because of
increased levy. Intergovernmental revenue decreased $1,336,475 due to Coronavirus Relief Funds
received in 2020. All other categories remained consistent with the prior year.
Property Taxes Fees and Fines License and Permits Intergovernmental Charges for Services Miscellaneous
2017 $15,764,663 $312,041 $1,061,107 $1,730,873 $2,145,995 $113,491
2018 16,003,424 310,713 1,385,288 2,383,163 2,246,618 153,773
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
$-
$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
$16,000,000
$17,000,000
$18,000,000
$19,000,000
$20,000,000
General Fund Revenues
11
City of Richfield
Financial Analysis
General Fund Revenues (Continued)
The City's revenues by source for 2021 and 2020 are shown below. As seen on the following graphs, the
intergovernmental revenue category of revenues decreased in 2021 compared to 2020 while charges for
services category decreased.
Property Taxes
72%
Fees and Fines
1%
License and
Permits
7%
Intergovernmental
13%
Charges for
Services
7%Miscellaneous
0%
2021 General Fund Revenues
Property Taxes
67%Fees and Fines
1%
License and
Permits
7%
Intergovernmental
18%
Charges for
Services
7%Miscellaneous
0%
2020 General Fund Revenues
12
City of Richfield
Financial Analysis
General Fund Expenditures
Total General Fund expenditures increased 8.2%, or $1,990,344, from 2020 to 2021. The most
significant increase by program was in fire. Fire expenditures increased $598,816 due to increased
personnel costs, professional development costs and supplies due to the purchase of KnoxBox
equipment. Public works expenditures increased by $ 441,594 due to increased personnel costs and
utility lighting as a result of converting to LED bulbs. Public safety expenditures increased by $384,859
in 2021 due to increased personnel costs, professional services for software maintenance and upgrade,
and COVID-19 response and civil unrest expenditures. Other programs' spending was consistent from
2020 to 2021.
Legislative/
Executive
Administrative
Services Finance Public Safety Fire
Community
Development Public Works Recreation
Services Capital Outlay
2017 $866,235 $1,274,142 $- $8,214,212 $4,140,668 $1,349,571 $3,964,477 $1,847,722 $-
2018 837,836 668,263 674,332 8,671,310 4,237,354 1,471,067 4,032,936 1,896,519 42,313
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 -
$-
$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
$11,000,000
General Fund Expenditures
13
City of Richfield
Financial Analysis
General Fund Expenditures (Continued)
The City's expenditures by program for 2021 and 2020 are shown below. As seen on the following
graphs, expenditure by program remained consistent from 2020 to 2021.
Legislative/
Executive
3%Administrative
Services
3%
Finance
3%
Public Safety
39%
Fire
19%
Community
Development
7%
Public Works
18%
Recreation
Services
8%
2021 General Fund Expenditures
Legislative/
Executive
3%Administrative
Services
4%
Finance
2%
Public Safety
41%Fire
19%
Community
Development
7%
Public Works
17%
Recreation
Services
7%
2020 General Fund Expenditures
14
City of Richfield
Financial Analysis
General Fund Revenues and Expenditures
Variance
Actual Final Budget -
Final Budget Amounts Over (Under)
Revenues
Property taxes 18,621,410$ 18,938,165$ 316,755$
Fines and fees 222,000 176,642 (45,358)
Licenses and permits 1,243,000 1,695,431 452,431
Intergovernmental revenues 3,704,350 3,492,120 (212,230)
Charges for services 1,688,790 1,842,554 153,764
Investment income 25,000 6,838 (18,162)
Miscellaneous revenues 45,100 55,436 10,336
Total revenues 25,549,650 26,207,186 657,536
Expenditures
Legislative/executive 1,008,250 941,743 (66,507)
Administrative services 836,330 693,573 (142,757)
Finance 755,000 765,641 10,641
Public safety 10,484,860 10,309,436 (175,424)
Fire 4,995,320 5,136,190 140,870
Community development 1,800,220 1,796,086 (4,134)
Public works 4,713,500 4,657,771 (55,729)
Recreation services 2,069,940 2,000,077 (69,863)
Total expenditures 26,663,420 26,300,517 (362,903)
Other financing sources (uses)
Net transfers 1,113,770 632,770 (481,000)
Net change in fund balances -$ 539,439$ 539,439$
For the year ended December 31, 2021, 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 $539,439.
Revenues were overall over budget by $657,536, or 2.6%. License and permits were over budget due to
budgeting conservatively in this area. Property taxes were over budget by $316,755, or 1.7%, due to
having better collections than budgeted for during the year.
Expenditures were $362,903, or 1.4% under budget. The most significant variance was in public safety
due to conservative budgeting.
15
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 2021 includes the General Fund levy of $19,001,439 plus a levy for the Debt Service and
Capital Project Funds totaling $4,392,588.
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.
$27,845,963
$30,001,418
$33,767,365
$36,111,232
$37,567,917
$19,434,690 $20,061,444 $21,059,411
$22,133,486
$23,394,027
56.85%57.73%
53.28%53.29%54.08%
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
2017 2018 2019 2020 2021
Tax Capacity, Levy, and Rates
Taxable Tax Capacity Certified City Levy Tax Capacity Rate
16
City of Richfield
Financial Analysis
Liquor Fund
The City's liquor store reported an increase in sales from 2020 to 2021 of 4.9%. Cost of sales
correspondingly increased by 4.8%. The City's liquor store sales and cost of sales have increased due to
many bars and restaurants being closed or having reduced hours of operations during the year which
brought in more foot traffic. Operating expenses in the Liquor Fund increased 3.6%.
The City's gross profit percentage stayed consistent from 2020 to 2021. The City's gross profit
percentage is similar to both the metro stores and the metro municipal average.
$8,505,073 $8,645,844 $9,439,556 $9,886,359 $10,355,772
$2,211,546 $2,159,720 $2,445,292 $2,469,884 $2,558,138
$11,351,640 $11,561,557 $12,678,003 $13,262,924 $13,916,528
$-
$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
$15,000,000
2017 2018 2019 2020 2021
Liquor Fund
Cost of Sales Operating Expenses Sales
2021
Metro
City of City of City of City of City of Municipal
Richfield Richfield Edina* Eden Prairie* Savage* Average*
Sales 13,916,528$ 13,262,924$ 12,117,414$ 11,711,560$ 7,386,979$ 6,967,537$
Costs of sales 10,355,772 9,886,359 8,744,414 8,299,999 5,312,509 5,097,822
Gross profit 3,560,756 3,376,565 3,373,000 3,411,561 2,074,470 1,869,715
Operating expenses 2,558,138 2,469,884 2,777,603 2,297,060 1,216,465 1,348,704
Operating income 1,002,618 906,681 595,397 1,114,501 858,005 521,011
Gross profit percentage 25.6% 25.5% 27.8% 29.1% 28.1% 26.8%
2020
* Individual metro municipal and averages obtained from the Office of State Auditor, Analysis of
Municipal Liquor Store Operations Report.
17
City of Richfield
Financial Analysis
Water and Sewer Utilities Fund
Charges for services in the fund increased $504,339 or 5.8% from 2020 to 2021. This increase was the
result of increased usage. Operating expenses increased $45,477 or 0.6%.
The Fund had operating income of $1,114,554 in 2021 with depreciation. The Fund has fully funded
depreciation expense since 2017.
$8,023,101 $8,648,729 $8,826,120 $8,716,310 $9,220,649
$7,808,203 $8,114,358 $8,157,933 $8,060,618 $8,106,095
$1,426,956 $1,734,607 $1,924,455 $2,074,472 $2,599,956
$214,898 $534,371 $668,187 $655,692 $1,114,554
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
$5,000,000
$5,500,000
$6,000,000
$6,500,000
$7,000,000
$7,500,000
$8,000,000
$8,500,000
$9,000,000
$9,500,000
2017 2018 2019 2020 2021
Water and Sewer Utilities Fund
Charges for Services Operating Expenses
Operating Income without Depreciation Operating Income with Depreciation
18
City of Richfield
Financial Analysis
Storm Sewer Fund
Charges for services in the Fund decreased $177,527 from 2020 to 2021, or 8.7%. Operating expenses
increased $16,277 or 0.9%.
The Fund reported an operating loss of $40,958 in 2021 with depreciation. The Fund has fully funded
depreciation expense from 2017 through 2020.
$1,495,191 $1,768,394 $1,828,180 $2,047,290 $1,869,763
$1,462,700 $1,564,568 $1,765,862 $1,894,444 $1,910,721
$620,850 $807,955 $765,576 $881,230 $696,064
$32,491 $203,826 $62,318 $152,846
$(40,958) $(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
$2,200,000
2017 2018 2019 2020 2021
Storm Sewer Fund
Charges for Services Operating Expenses
Operating Income without Depreciation Operating Income with Depreciation
19
City of Richfield
Financial Analysis
Governmental Funds
The tables below and on the following page illustrate the City's various sources of revenue and
expenditures per capita over a three year period in comparison to 2020 data for Minnesota cities ranked
by various sizes.
Year 2019 2020 2021**
Population 2,500-10,000 10,000-20,000 20,000-100,000 36,436 36,993 36,994
Property taxes 540$ 517$ 537$ 573$ 600$ 630$
Tax increments 34 33 44 - - -
Franchise fees and other taxes 49 60 46 62 60 61
Special assessments 54 39 54 6 6 4
Licenses and permits 36 39 46 48 47 46
Intergovernmental revenues 474 367 273 206 393 295
Charges for services 113 89 91 106 61 91
Other 83 69 69 63 35 33
Total revenue 1,383$ 1,213$ 1,160$ 1,064$ 1,202$ 1,160$
City of Richfield
December 31, 2020
State-Wide*
* State-wide data obtained from the Office of the State Auditor's 2019 Minnesota City
Finances Report.
** Population is estimated as of January 1, 2021, from the Met Council population data study; 2021
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 decreased $42 per capita from 2020. The most significant decrease was in intergovernmental
revenue. Intergovernmental revenue decreased due to the Coronavirus Relief Funds received by the City
in 2020. Property taxes increased due to an increase in the levy. Charges for services increased as a
result of an increase in recreation charges for services received.
20
City of Richfield
Financial Analysis
Governmental Funds (Continued)
Year 2019 2020 2021**
Population 2,500-10,000 10,000-20,000 20,000-100,000 36,436 36,993 36,994
Current
Administration 176$ 140$ 118$ 76$ 78$ 81$
Community development 73 87 87 44 44 49
Police 227 205 224 264 272 283
Fire and other public safety 88 84 96 120 123 139
Public works 146 122 112 539 241 329
Parks and recreation 100 112 95 98 74 102
Other 22 21 17 - - -
Total current 832$ 771$ 749$ 1,141$ 832$ 983$
Capital outlay
and construction 586$ 429$ 331$ 268$ 126$ 36$
Debt service
Principal 172$ 149$ 91$ 243$ 89$ 96$
Interest and fiscal 45 42 33 46 44 40
Total debt service 217$ 191$ 124$ 289$ 133$ 136$
December 31, 2020
State-Wide* City of Richfield
* State-wide data obtained from the Office of the State Auditor's 2019 Minnesota City
Finances Report.
** Population is estimated as of January 1, 2021, from the Met Council population data study; 2021
information is not yet available.
The City's current expenditures and debt service expenditures for 2021 were more than the state-wide
average for a city of a comparable population, while capital outlay and construction expenditures are
less.
Overall, the City's governmental expenditures increased 5.9% from 2020 to 2021, or $64 per capita.
Current expenditures per capita increased $151 from 2020.
21
City of Richfield
Emerging Issue
Executive Summary
The following is an executive summary of financial and business related updates to assist you in staying
current on emerging issues in accounting and finance. This summary will give you a preview of the new
standards that have been recently issued and what is on the horizon for the near future. The most recent
and significant update includes:
Accounting Standard Update – GASB Statement No. 87 – Leases – GASB has issued GASB
Statement No. 87 relating to accounting and financial reporting for leases. This new statement
establishes a single model for lease accounting based on the principle that leases are financing of
the right to use an underlying asset.
The following is an extensive summary of the current update. As your continued business partner, we
are committed to keeping you informed of new and emerging issues. We are happy to discuss this issue
with you further and its applicability to your City.
Accounting Standard Update – GASB Statement No. 87 – Leases
The objective of this Statement is to better meet the information needs of financial statement users by
improving accounting and financial reporting for leases by governments. This Statement increases the
usefulness of governments' basic financial statements by requiring recognition of certain lease assets and
liabilities for leases that previously were classified as operating leases and recognized as inflows of
resources or outflows of resources based on the payment provisions of the contract. It establishes a
single model for lease accounting based on the foundational principle that leases are financings of the
right to use an underlying asset. Under this Statement, a lessee is required to recognize a lease liability
and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a
deferred inflow of resources, thereby enhancing the relevance and consistency of information about
governments' leasing activities.
A lease is defined as a contract that conveys control of the right to use another entity's nonfinancial asset
(the underlying asset) as specified in the contract for a period of time in an exchange or exchange-like
transaction. Examples of nonfinancial assets include buildings, land, vehicles, and equipment. Any
contract that meets this definition should be accounted for under the leases guidance, unless specifically
excluded in this Statement.
A short-term lease is defined as a lease that, at the commencement of the lease term, has a maximum
possible term under the lease contract of 12 months (or less), including any options to extend, regardless
of their probability of being exercised. Lessees and lessors should recognize short-term lease payments
as outflows of resources or inflows of resources, respectively, based on the payment provisions of the
lease contract.
22
City of Richfield
Emerging Issue
Accounting Standard Update – GASB Statement No. 87 – Leases (Continued)
A lessee should recognize a lease liability and a lease asset at the commencement of the lease term,
unless the lease is a short-term lease or it transfers ownership of the underlying asset. The lease liability
should be measured at the present value of payments expected to be made during the lease term (less any
lease incentives). The lease asset should be measured at the amount of the initial measurement of the
lease liability, plus any payments made to the lessor at or before the commencement of the lease term
and certain direct costs. A lessee should reduce the lease liability as payments are made and recognize
an outflow of resources (for example, expense) for interest on the liability. The lessee should amortize
the lease asset in a systematic and rational manner over the shorter of the lease term or the useful life of
the underlying asset. The notes to basic financial statements should include a description of leasing
arrangements, the amount of lease assets recognized, and a schedule of future lease payments to be
made.
A lessor should recognize a lease receivable and a deferred inflow of resources at the commencement of
the lease term, with certain exceptions for leases of assets held as investments, certain regulated leases,
short-term leases, and leases that transfer ownership of the underlying asset. A lessor should not
derecognize the asset underlying the lease. The lease receivable should be measured at the present value
of lease payments expected to be received during the lease term. The deferred inflow of resources
should be measured at the value of the lease receivable plus any payments received at or before the
commencement of the lease term that relate to future periods. A lessor should recognize interest revenue
on the lease receivable and an inflow of resources (for example, revenue) from the deferred inflows of
resources in a systematic and rational manner over the term of the lease. The notes to basic financial
statements should include a description of leasing arrangements and the total amount of inflows of
resources recognized from leases.
GASB Statement No. 87 is effective for reporting periods beginning after June 15, 2021.
Information provided above was obtained from www.gasb.org.
City of Richfield
Hennepin County, Minnesota
Schedule of Expenditures of
Federal Awards and Independent
Auditor's Reports
December 31, 2021
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 10
See notes to schedule of expenditures of federal awards. 1
Federal
Assistance Listing Federal
Number Expenditures
U.S. Department of Housing and Urban Development
Received Directly
Section 8 Housing Choice Voucher Program 14.871 2,086,196$
CARES Act Supplemental Public Housing and Housing Choice Voucher
and Administrative Fee funds 14.871 253,904
Passed through Hennepin County
Community Development Block Grant - Entitlement Grant 14.218 200,000
Total U.S. Department of Housing and Urban Development 2,540,100
U.S. Department of Interior
Passed through the State of Minnesota
Outdoor Recreation Acquisition, Development and Planning 15.916 200,000
Total U.S. Department of Health and Human Services 200,000
U.S. Department of Health and Human Services
Passed through the State of Minnesota
COVID-19 Vaccine Implementation Grant 93.268 13,475
COVID-19 Vaccine Implementation Grant 93.323 14,814
Public Health Emergency Preparedness 93.069 45,615
Total U.S. Department of Health and Human Services 73,904
U.S. Department of Justice
Received directly
Bulletproof Vest Partnership Program 16.607 9,915
Total U.S. Department of Justice 9,915
U.S. Department of Transportation
Passed through Metropolitan Airport Commission
Towards Zero Deaths 20.608 7,733
DWI Enforcement 20.616 3,875
Distracted Vehicle Grant 20.600 758
Passed through the State of Minnesota
Highway Planning and Construction 20.205 1,678,963
Towards Zero Deaths 20.608 68,233
DWI Enforcement 20.616 25,283
Total U.S. Department of Transportation 1,784,845
U.S. Department of Treasury
Passed through the State of Minnesota
Coronavirus State and Local Fiscal Recovery Funds 21.027 37,180
Total U.S. Department of Tresury 37,180
Total Federal Expenditures 4,645,944$
Federal Agency/Pass Through Agency/Program Title
City of Richfield
Schedule of Expenditures of Federal Awards
Year Ended December 31, 2021
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 includes the federal grant activity of
the City of Richfield, Minnesota and is presented on the modified accrual basis of accounting. The
information in this Schedule is presented in accordance with the requirements of the Uniform Guidance.
Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in,
the preparation of the modified accrual financial statements.
NOTE 2 – 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 3 – INDIRECT COST RATE
The City did not elect to use the 10 percent de minimis indirect cost rate, as allowed under the Uniform
Guidance.
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, 2021, and the related notes to financial statements, which collectively comprise the
City's basic financial statements, and have issued our report thereon dated August 1, 2022.
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 consider the deficiency described in the accompanying Schedule
of Findings and Questioned Costs in Accordance with Uniform Guidance to be a material weakness,
listed as Audit Finding 2021-001.
4
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on
the financial statements. However, providing an opinion on compliance with those provisions was not an
objective of our audit, and accordingly, we do not express such an opinion. The results of our tests
disclosed no instances of noncompliance or other matters that are required to be reported under
Government Auditing Standards.
City's Response to Findings
The City's response to the finding identified in our audit are described in the accompanying Schedule of
Findings and Questioned Costs in Accordance with Uniform Guidance. The City's response was not
subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we
express no opinion on the response.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the 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.
Minneapolis, Minnesota
August 1, 2022
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 Required by 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 program[s] for the year ended December 31,
2021. 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, 2021.
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 Example Entity’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.
7
Report on Internal Control over Compliance (Continued)
Our consideration of internal control over compliance was for the limited purpose described in Auditor's
Responsibilities for the Audit of Compliance section and was not designed to identify all deficiencies in
internal control over compliance that might be material weaknesses or significant deficiencies in internal
control over compliance. Given these limitations, during our audit we did not identify any deficiencies
in internal control over compliance that we consider to be material weaknesses, as defined above.
However, material weaknesses or significant deficiencies in internal control over compliance may exist
that were not identified.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal
control over compliance. Accordingly, no such opinion is expressed.
The purpose of this report on internal control over compliance is solely to describe the scope of our
testing of internal control over compliance and the results of that testing based on the requirements of
the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.
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, 2021, and have issued our
report thereon dated August 1, 2022, 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.
Minneapolis, Minnesota
August 1, 2022
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 State of America (GAAP)
Internal control over financial reporting:
Material weakness(es) identified? Yes, Audit Finding 2021-001
Significant deficiency(ies) identified? None reported
Noncompliance material to financial statements noted? No
Federal Awards
Type of auditor's report issued on compliance for major
programs: Unmodified
Internal control over major programs:
Material weakness(es) identified? No
Significant deficiency(ies) identified? None reported
Any audit findings disclosed that are required to
be reported in accordance with 2 CFR 200.516(a)? No
Identification of Major Programs
Assistance Listing.: 20.205
Name of Federal Program or Cluster: Highway Planning and Construction
Assistance Listing.: 14.871
Name of Federal Program or Cluster: Section 8 Housing Choice Vouchers
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 2021-001
Criteria: Documentation of revenue collections are detailed enough to ensure full collection of amounts
due to the City.
Condition: Receipt detail was not able to be obtained for the Recreation – Ice Center during 2021.
Context: This finding impacts the City’s ability to record receipts with appropriate detail to ensure
receipts are recorded in the appropriate periods.
Effect or Potential Effect: The financial statements may contain material misstatements.
Cause: Upon implementation of new software on October 10, 2021, the City lost access to the legacy
system and was unable to pull details for 2021.
Recommendation: Ensure appropriate sub-systems are backed up and staff can access details at any time.
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, 2022.
5. Plan to Monitor Completion of CAP
The Finance Director will annually review ice arena receipts to ensure proper accounting treatment.
SECTION III – FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
None
SECTION IV – PRIOR YEAR FINDINGS AND QUESTIONED COSTS
None
10
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, 2021, and the related notes to financial statements, which collectively comprise the
City's basic financial statements, and have issued our report thereon dated August 1, 2022.
In connection with our audit, nothing came to our attention that caused us to believe that the City failed
to comply with the provisions of the contracting and bidding, deposits and investments, conflicts of
interest, public indebtedness, claims and disbursements, miscellaneous provisions, and tax increment
financing sections of the Minnesota Legal Compliance Audit Guide for Cities, promulgated by the State
Auditor pursuant to Minnesota 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.
Minneapolis, Minnesota
August 1, 2022
AGENDA SECTION:CONSENT CALENDAR
AGENDA ITEM #4.A.
STAFF RE P ORT NO. 109
CIT Y COUNCIL ME E T ING
8/10/2022
RE P O RT P RE PA RE D B Y: S ack Thongvanh, A ssistant C ity Manager
D E PA RTME NT D IRE C TO R RE V IE W:
O THE R D E PA RTM E NT RE V IE W: K ari S inning, C ity C lerk
C ITY MA NA G E R RE V IE W: K atie Rodriguez, C ity Manager
8/3/2022
I T E M F O R C O UNC IL C O NS ID E RAT I O N:
First Reading of Ordinance Amending Section 300 and Section 1220 of the City Code of Ordinance
relating to the Abolishment of the Liquor Department and Liquor Operations Director Position Within
the City Organization.
E X E C UT IV E S UM M ARY:
As part of the Human Resources process, positions are regularly reviewed and amended when they become
vacant due to retirements, resignations and terminations. The retirement of the Liquor Store Director has
given the City the opportunity to reassess how we collaborate internally and provide services externally.
After analysis of surrounding municipalities, it was found that most municipal liquor stores are under the
oversight of the Assistant City Manager/Administrator and operate with a Liquor Operations Manager instead
of a Director.
As the Liquor Operations department was established by city code, staff recommends the attached resolution
amending Section 300.03 of city code. The amendment will eliminates the Liquor Department and change the
Liquor Operations Director Position to Liquor Operations Manager within the City Organization and move the
new Liquor Division under Administrative Services.
RE C O M M E ND E D AC T I O N:
By Motion: Approve first reading of ordinance amending Section 300 and Section 1220 of the City
Code of Ordinance relating to the Abolishment of the Liquor Department and Liquor Operations
Director's Position within the City Organization.
B AS IS O F RE C O M M E ND AT I O N:
A.H IS TOR IC AL C ON T E X T
N/A
B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc):
N/A
C.C R IT IC AL T IMIN G IS S U E S:
N/A
D.F IN AN C IAL IMPAC T:
There will be costs saving from the reclassification of the Liquor Operations Director position to Liquor
Operations Manager.
E.L E GAL C ON S ID E R AT ION:
The ordinance was prepared and approved by the City Attorney.
ALTE R N AT IV E R E C O MME N D ATIO N(S):
None
P R IN C IPAL PAR TIE S E X P E C TE D AT ME E TIN G:
AT TAC H ME N T S:
D escription Type
D raft Ordinance Ordinance
BILL NO. _________
AN ORDINANCE AMENDING SECTION 300 AND SECTION 1220 OF THE CODE OF
ORDINANCES RELATING TO THE ABOLISHMENT OF THE LIQUOR DEPARTMENT
AND LIQUOR OPERATIONS DIRECTOR POSITION WITHIN THE CITY
ORGANIZATION
THE CITY OF RICHFIELD DOES ORDAIN:
Section 1. Subsection 300.03 of the Richfield City Code is amended as follows:
300.03. – Departmental and divisional organization.
The administrative service of the City is divided into the following departments
and heads thereof:
Executive Department City Manager
Administrative Services Department Director of Administrative Services
Fire Department Fire Chief
Public Safety Department Director of Public Safety
Public Works Department Director of Public Works
Recreation Services Department Director of Recreation Services
Community Development Department Director of Community Development
Legal Department City Attorney
Liquor Department Liquor Operations Director
Finance Department Finance Director
Divisions within departments shall be established from time to time by resolution of the City
Council with the recommendation of the Manager.
Sec. 2. Subsection 300.11 of the Richfield City Code is repealed.
300.11. – Liquor division department .
The liquor division is established as a division within the Administrative Services
Department. The liquor operations director manager is responsible to the City Manager and the
Director of Administrative Services for the operation of the municipal liquor stores. The liquor
operations director manager shall perform the duties described in the job description for that
position and any additional duties assigned by the Director of Administrative Services or the City
Manager.
Sec. 3. Subsection 1220.07 of the Richfield City Code is amended as follows:
1220.07. – Regulations: liquor operations Director manager established.
The liquor stores will be in the immediate charge of the Liquor Operations Director Manager.
Policies relating to the operation of the liquor stores will be determined by the City Council. The
Liquor Operations Director Manager will be assisted by such other employees as the Council may
authorize. The Liquor Operations Director Manager will have full charge of the liquor stores and
will have authority to purchase supplies as are necessary.
Sec. 4. Subsection 1220.11 of the Richfield City Code is amended as follows:
1220.11. – Limitations.
No business other than the sale of alcoholic beverages and other items offered for sale at the
liquor stores may be carried on by the Liquor Operations Director Manager and employees while
they are so employed.
Sec. 5. Subsection 1220.13 of the Richfield City Code is amended as follows:
1220.13. – Payment for merchandise.
Checks may be accepted in payment for merchandise, in the discretion of the Liquor Operations
Director Manager, provided such checks are for the purchase price of the mercha ndise only.
Credit cards issued by national credit companies which have entered into credit agreements with
the City, may also be accepted in payment for merchandise, in the discretion of the Liquor
Operations Director Manager. No other form of credit may be advanced by the liquor stores.
Sec. 6. This Ordinance will be effective in accordance with Section 3.09 of the
City Charter.
Adopted this ____ of __________, 2022.
By: ___________________________
Maria Regan Gonzalez, Mayor
ATTEST:
__________________________
Kari Sinning, City Clerk
AGENDA SECTION:CONSENT CALENDAR
AGENDA ITEM #4.B.
STAFF RE P ORT NO. 110
CIT Y COUNCIL ME E T ING
8/10/2022
RE P O RT P RE PA RE D B Y: S am C rosby, P lanner II
D E PA RTME NT D IRE C TO R RE V IE W: Julie Urban, A ssistant C ommunity D evelopment D irector
7/28/2022
O THE R D E PA RTM E NT RE V IE W:
C ITY MA NA G E R RE V IE W: K atie Rodriguez, C ity Manager
8/3/2022
I T E M F O R C O UNC IL C O NS ID E RAT I O N:
First reading of a proposed ordinance amendment updating the City’s Zoning Code subsection that
regulates fences, walls, and hedges.
E X E C UT IV E S UM M ARY:
Staff is proposing updates to the fence regulations (section 509.15) in the City’s Zoning Code to incorporate
the following:
General provisions that define “good neighbor” standards that require the finished side of an erected
fence to face the adjacent property.
Modified height requirements for corner lots.
Special fence exceptions for through lots that possess unique and special circumstances that
make it impractical to meet the zoning requirements.
At the July 25, 2022, Planning Commission meeting, no one from the public spoke to the matter. To
avoid confusion, the Planning Commission recommended the removal of subd.12 regarding non-
conformities, as it is already addressed by Code section 905.25, "Nonconformities." With that one
change, the Planning Commission voted (5-1) to recommend approval of the ordinance.
RE C O M M E ND E D AC T I O N:
By motion: Approve a first reading of ordinance amendments to the City's Zoning Code to incorporate
general provisions, modified height requirements for corner lots, and a special fence exception for
through lots.
B AS IS O F RE C O M M E ND AT I O N:
A.H IS TOR IC AL C ON T E X T
Good Neighbor Standards: Section 509.15 does not contain general provisions that define “good
neighbor” standards that require the finished side of an erected fence to face away from the
center of the property. These standards are commonly used to help ensure the more attractive or
finished side of the fence faces the adjacent property. The property owner building the fence has
the view of the rails and posts from inside their yard. The City uses these standards, and they are
included in a fence handout, but they have not been included as a requirement in the Zoning
Code.
Height Requirements: The proposed Zoning Code amendments will apply to corner lots. Staff is
recommending height limits to not exceed four (4) feet along the corner side yard. The fence
height may be increased to six (6) feet if it is located behind the principal building and set back at
a half-way point between the side corner setback. An image is included in the attached ordinance
to help the public to understand the regulation.
The purpose for this amendment is to help ensure fence heights are constructed at a
reasonable height along roadways without negatively impacting the corridor ’s character and
visibility angles. I t is also intended to improve the pedestrian and bicyclist experience by
creating recognizable corridors that are more comfortable to travel on. Fences that are
greater than four (4) feet in height can have a negative impact on the corridor ’s aesthetics,
feel, and safety.
Special Fence Exceptions: City staff recognizes there may be unique and special circumstances
that make it impractical for a through lot to meet the fence requirements. The proposed
amendments will provide the option for a property owner to apply for a special exception. The
applicant will need to demonstrate the unique and special circumstances that warrant a special
exception, in addition to demonstrating that the proposed improvements are reasonable and do not
negatively impact the neighborhood’s aesthetics. Special exceptions will be processed
administratively and require a $250 application fee. The Community Development Director will be
responsible for approving or denying special exceptions to the Zoning Code. Appeals are available
per Zoning Code section 547.
B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc):
The proposed Zoning Code amendments are in alignment with the City’s Comprehensive Plan’s
goals and policies. Examples include:
Maintain and enhance the “urban hometown” character of Richfield.
Develop identifiable nodes, corridors and gateways throughout Richfield.
I mprove pedestrian and bicycle travel in the City.
Establish a land use pattern and supporting infrastructure that preserves and enhances the
ability of residents to make personal connections in their neighborhoods.
Maintain and provide quality amenities and a safe living environment.
I mprove gateways to create a visual means of welcoming people to the City.
Embrace the City’s Complete Streets Policy.
C.C R IT IC AL T IMIN G IS S U E S:
None.
D.F IN AN C IAL IMPAC T:
None.
E.L E GAL C ON S ID E R AT ION:
Notice of the public hearing was published in the Sun Current newspaper as required on J uly 14,
2022.
W ith one minor change, the Commission voted (5-1) to recommend approval of the ordinance.
A second reading of the proposed ordinance is scheduled for consideration by the City Council
on September 13.
ALTE R N AT IV E R E C O MME N D ATIO N(S):
Recommend approval of the first reading of an ordinance amendment with additional and/or modified
stipulations.
Recommend denial of the first treading of an ordinance amendment with a finding that the proposal
does not meet City requirements.
P R IN C IPAL PAR TIE S E X P E C TE D AT ME E TIN G:
N/A
AT TAC H ME N T S:
D escription Type
Revised F ence Ordinance C over Memo
BILL NO. _____
AN ORDINANCE AMENDMENT MODFIYING THE ZONING CODE
IN RELATION TO FENCES WALLS AND HEDGES
THE CITY OF RICHFIELD DOES ORDAIN:
Section 1. Subsection 509.15, “Fences, Walls and hedges”; Subsection 547,
“Administration”; and Appendix D, “License, Permit and Miscellaneous Fees”, of
the Richfield Zoning Code, is hereby amended to read as follows:
509.15. - Fences, walls, and hedges.
Subdivision 1. General rule. A fence, wall, or hedge may occupy a lot as provided in this subsection.
Subd. 2. Definitions.
a) "Hedge." A row of shrubbery which forms or is intended to form a barrier.
b) "Wall." This term includes retaining walls, freestanding walls, and decorative or privacy walls.
c) "Height of fence." Fence height is measured to include the body of the fence, plus allowing a
maximum of six (6) inches (on average between posts) above the natural grade (i.e., for
drainage purposes). Fence posts are permitted to extend a maximum of six (6) inches above the
body of the fence.
(Amended, Bill No. 2014-4)
Subd. 3 General Provisions
a) All fences, walls, and hedges shall be maintained and kept safe and in a state of good repair.
b) Fences and walls erected shall be erected with the finished side facing away from the center
of the property.
c) Provisions shall be made for gates or openings to provide access maintenance where
necessary, such as through lots.
Subd. 34. Height.
a) No fence, wall, or hedge more than four (4) feet in height shall be constructed or permitted to
grow forward of the front line of the principal building extended to the side lot lines;
b) On corner lots, fences located in the required side yard shall not exceed four (4) feet in height.
The fence height may be increased to six (6) feet behind the rear plane of the principal
building at a point halfway between the property line and the required corner side setback.
c) No fence or wall more than six (6) feet in height shall be constructed elsewhere on the lot;
except that in “C-2” and “I” districts the maximum height shall be eight (8) feet. A building
permit shall be required for fences and walls over six (6) feet in height; and
d) Whenever a fence and wall are used in combination, or placed upon a berm, the combined
height shall not exceed the permitted heights outlined in the paragraphs a) and b) above. For
the purposes of this clause, fences placed within three (3) feet of a berm or wall shall be
considered to be used "in combination" with said berm or wall (Amended, Bill No. 2011-13).
Subd. 45. Corner lots. Fences, walls, and hedges located on any corner lot are subject to the traffic
visibility requirements described in subsection 925.01 of the City Code.
Subd. 56. Setback requirement. Fences, walls, and hedges located along a right-of-way which contains a
public sidewalk, or located along a street or alley, shall be set back not less than three (3) feet from the
nearest edge of such sidewalk, street, or alley.
Subd. 67. Prohibitions. Barbed wire and electric wire fences are prohibited in all districts. Fences shall
not be constructed from chicken wire, welded wire, branches, or materials originally intended for other
purposes, unless a showing of a high degree of architectural quality is achieved through the use of such,
and prior approval is granted by the Director.
Subd. 78. Chain link. Chain link fences shall have a top rail and the barbed ends shall be toward the
ground. Inserts or slats woven through such fences shall be kept in a good state of repair.
Subd. 89. Posts. Posts and stringers on any fence located at or near the lot line shall be on the inside of
the fenced area unless designed as an integral part of the fence. Posts for wooden fences shall be
spaced at intervals not to exceed eight (8) feet. Posts for chain link fences shall be spaced at intervals
not to exceed ten (10) feet. (Amended, Bill No. 1999-3)
Subd. 910. Construction and maintenance. Fences and walls shall be constructed of durable, weather
resistant materials that are properly anchored. All fences and walls shall be maintained in a condition of
reasonable repair and shall not be allowed to become and remain in a condition of disrepair, danger, or
constitute a nuisance.
Subd. 1011. Required screening. Any fence or wall required as a screening device shall be constructed of
decay resistant materials that provide screening to the extent required by this Code. (Amended, Bill No.
2011-13)
Subd. 1112. Certain structures. Fences and walls legally existing on or before March 20, 1982, may
continue to exist and to be repaired and maintained.
Subd. 12. Special Fence Exception. The Director may consider a special fence exception to the
restrictions of Section 509.15 in instances where:
a) On a through lot, where the proposed fence or wall does not affect the continuity of
neighboring front yards.
b) Whether the size, configuration or other unusual characteristics of the lot requires an
exception from the zoning requirements in order to provide a reasonable enclosed area
without creating significant harm to adjacent properties or the neighborhood.
c) The review process for the special fence exception request shall follow the procedure detailed
in Section 547.19.
Section 547 – ADMINISTRATION
547.19 – Special Fence Exception
Subdivision 1. Purpose. The purpose and intent for allowing a special exception of fence restrictions
applies to through lots that possess unique and special circumstances that make it impractical to meet
the zoning requirements.
Subd. 2. Application. An application for a special fence exception shall be made to the Director on
forms provided by the City. The Director or staff will determine if an application is deemed complete.
Submitted applications shall be accompanied by the following:
a) Evidence of ownership or an interest in the property;
b) Accurate legal description;
c) One (1) full-size legible plan regarding the following aspects of the project (All submitted
plans shall be signed by a registered architect, civil engineer, landscape architect, or other
appropriate design professional):
a. Boundary survey with existing conditions; and
b. Site plan or landscaping plan with proposed improvements.
Section 5. This Ordinance is effective in accordance with Section 3.09 of the Richfield City
Charter.
Passed by the City Council of the City of Richfield, Minnesota this 13 day of September, 2022.
Maria Regan Gonzalez, Mayor
ATTEST:
Kari Sinning, City Clerk
Subd. 3. General criteria and standards for review. In evaluating an application, staff or the Director
shall consider its complaint with the following:
a) Consistency with the various elements and objectives of the City's long range plans, including,
but not limited to, the Comprehensive Plan;
b) Consistency with the purposes of this Code;
c) Demonstrates unique and special circumstances that make it impractical to meet the fence
requirements described in 509.15.
d) Does not create significant harm to adjacent properties or the neighborhood.
e) Preservation of the site in its natural state, insofar as practicable, by minimizing tree and soil
removal, and designing any grade changes so as to be in keeping with the general appearance
of neighboring developed or developing areas.
Subd. 4. Fee. The fee for a special fence exception is set by Appendix D of the City Code.
Subd. 5. Decision. The Director may approve or disapprove a special fence exception application as
submitted or may require that the applicant modify, alter, adjust, or amend the proposal.
Appendix D – License, Permit and Miscellaneous Fees
ZONING, LAND USE AND RELATED CHARGES
Type of Permit
or License
Section
Requiring
Description Fee
(17) Special Exception
Review for Fences or
Walls
509.15 Subd. 13 A special fence exception may be
issued to the restrictions of Section
509.15 for corner lots or through lots.
$250.00
AGENDA SECTION:CONSENT CALENDAR
AGENDA ITEM #4.C.
S TAFF REPORT NO. 111
CIT Y COUNCIL ME E T ING
8/10/2022
RE P O RT P RE PA RE D B Y: S cott K ulzer, A dministrative A ide/A nalyst
D E PA RTME NT D IRE C TO R RE V IE W: K ristin A sher, P ublic Works D irector
8/2/2022
O THE R D E PA RTM E NT RE V IE W: N/A
C ITY MA NA G E R RE V IE W: K atie Rodriguez, C ity Manager
I T E M F O R C O UNC IL C O NS ID E RAT I O N:
Consider adoption of a resolution authorizing the City of Richfield to accept grant funds in the amount
of $10,000 and enter into a Source W ater Protection Grant Agreement (S W IFT Contract Number
214643) with Minnesota Department of Health (MD H) to upgrade security system infrastructure at the
Water Treatment Plant and Well Houses.
E X E C UT IV E S UM M ARY:
I n April 2022, the City of Richfield applied for and was awarded a Source W ater Protection Grant in the
amount of $10,000 to assist the City with the full replacement of security system infrastructure (e.g. cameras,
switches, transmitters, connectivity, software) at the well houses and Water Treatment Plant. A camera is
stationed at each well house and monitors the immediate area and access doors. T he video feed is
brought back to the water treatment plant control room where the switch and security
software/center are managed. T he current security systems in place are past their useful life
lifespans and due for replacement.
RE C O M M E ND E D AC T I O N:
By motion: Approve the resolution authorizing the City of Richfield to accept grant funds in the
amount of $10,000 and enter into a Source W ater Protection Grant Agreement (S W IFT Contract
Number 214643) with MD H to upgrade security system infrastructure at the W ater Treatment Plant
and Well Houses.
B AS IS O F RE C O M M E ND AT I O N:
A.H IS TOR IC AL C ON T E X T
See executive summary.
B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc):
Minnesota Statute 465.03 requires every acceptance of a grant or devise of real or personal property on
terms prescribed by donor be made by resolution and adopted by two-thirds majority of the City Council.
C.C R IT IC AL T IMIN G IS S U E S:
The effective date of the grant agreement is J uly 15, 2022 or the date all signatures are authorized
and obtained by MD H.
The expiration date of the grant agreement is August 31, 2023, or once all obligations have been
fulfilled to the satisfaction of MD H, whichever occurs first.
D.F IN AN C IAL IMPAC T:
The anticipated total cost for the project is $31,314.00.
The cost share for the City would be $21,314.00, after accounting for the $10,000 S W P grant.
The City's cost share funds are accounted for in the Public W orks Water Utility budget and are
intended to be used for this project.
E.L E GAL C ON S ID E R AT ION:
The City attorney has reviewed the grant agreement and will be available to answer questions.
ALTE R N AT IV E R E C O MME N D ATIO N(S):
None
P R IN C IPAL PAR TIE S E X P E C TE D AT ME E TIN G:
None
AT TAC H ME N T S:
D escription Type
Resolution Resolution L etter
S W P Grant A greement C ontract/A greement
RESOLUTION NO.
RESOLUTION AUTHORIZING THE CITY OF RICHFIELD TO ACCEPT GRANT FUNDS IN
THE AMOUNT OF $10,000 AND ENTER INTO A SOURCE WATER PROTECTION
GRANT AGREEMENT (SWIFT CONTRACT NUMBER 214643) WITH MINNESOTA
DEPARTMENT OF HEALTH TO UPGRADE SECURITY SYSTEM INFRASTRUCTURE AT
THE WATER TREATMENT PLANT AND WELL HOUSES
WHEREAS, the Richfield Public Works Department has applied for and been
awarded a Source Water Protection Grant in the amount of $10,000; and
WHEREAS, the City intends to use these funds to upgrade security system
infrastructure at the Water Treatment Plant and Well Houses; and
WHEREAS, Minnesota Statutes section 465.03 requires every acceptance of a
grant or devise of real or personal property on terms prescribed by the donor be made by
resolution adopted by a two-thirds majority of the City Council.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of
Richfield, Minnesota, as follows:
1. That the City Council of the City of Richfield hereby authorizes the Mayor
and City Manager to enter into the Source Water Protection Grant
Agreement (SWIFT Contract Number 214643) with Minnesota
Department of Health in the amount of $10,000.
2. Appropriate City personnel are authorized to administer the funds in
accordance with the grant agreement and terms described by the
Minnesota Department of Health.
Adopted by the City Council of the City of Richfield, Minnesota this 10th day of
August, 2022.
Maria Regan Gonzalez, Mayor
ATTEST:
Kari Sinning, City Clerk
AGENDA SECTION:CONSENT CALENDAR
AGENDA ITEM #4.D.
STAFF RE P ORT NO. 112
CIT Y COUNCIL ME E T ING
8/10/2022
RE P O RT P RE PA RE D B Y: S ack Thongvanh, A ssistant C ity Manager
D E PA RTME NT D IRE C TO R RE V IE W:
O THE R D E PA RTM E NT RE V IE W: K ari S inning, C ity C lerk
C ITY MA NA G E R RE V IE W: K atie Rodriguez, C ity Manager
8/3/2022
I T E M F O R C O UNC IL C O NS ID E RAT I O N:
Consider the approval of a resolution appointing Assistant City Manager Sack Thongvanh as the City's
Director Representative on the Local Government Information Systems (LO G IS) Board of Directors.
E X E C UT IV E S UM M ARY:
L OGI S is a J oint Powers, intergovernmental consortium of Minnesota local government units. I t offers
computer applications for a variety of municipal functions. Richfield has been a full participating member
since 2002.
The LOGI S consortium is governed by its members. Each member appoints a director and an alternate
director to be on the L OGI S Board of Directors. The Board which governs L OGI S is made up of a variety of
member city and county professionals from police chiefs to city managers to finance directors. The Board
then elects a five-member executive committee. The Executive Committee, which has fiduciary authority and
responsibility, establishes operating policies, sets service charges and approves expenditures.
RE C O M M E ND E D AC T I O N:
By Motion: Approve a resolution appointing Assistant City Manager Sack Thongvanh as City's
Director Representative on the Local Government Information System (L O G IS) Board of Directors
B AS IS O F RE C O M M E ND AT I O N:
A.H IS TOR IC AL C ON T E X T
The City has been an associate member since 1996 and a full participating member since 2002.
I T Manager, J ane Skov, currently serves as the City’s Alternate Director on the LOGI S board.
B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc):
None
C.C R IT IC AL T IMIN G IS S U E S:
Open seat needs to be filled.
D.F IN AN C IAL IMPAC T:
None
E.L E GAL C ON S ID E R AT ION:
None
ALTE R N AT IV E R E C O MME N D ATIO N(S):
None
P R IN C IPAL PAR TIE S E X P E C TE D AT ME E TIN G:
AT TAC H ME N T S:
D escription Type
Resolution - A ppointment of A ssistant C ity Manager as the
C ity's D irector on the L OG IS B oard of D irectors C over Memo
RESOLUTION NO.
RESOLUTION AUTHORIZING THE APPOINTMENT OF THE ASSISTANT
CITY MANAGER AS THE CITY’S DIRECTOR REPRESENTATIVE ON THE
LOGIS BOARD OF DIRECTORS
WHEREAS, the City of Richfield is currently a full participating member of the Local
Government Information Systems (LOGIS) consortium; and
WHEREAS, due to a staff changes, the City of Richfield needs to appoint a new City’s
Director Representative to the LOGIS Board of Directors.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield,
Minnesota, that:
1. Sack Thongvanh, Assistant City Manager is appointed as the City’s Director
Representative to the LOGIS Board of Directors.
Approved by the City Council of the City of Richfield, Minnesota this 10th day of August,
2022.
Maria Regan Gonzalez, Mayor
ATTEST:
Kari Sinning, City Clerk
AGENDA SECTION:CONSENT CALENDAR
AGENDA ITEM #4.E.
STAFF RE P ORT NO. 113
CIT Y COUNCIL ME E T ING
8/10/2022
RE P O RT P RE PA RE D B Y: Julie Urban, A sst. C ommunity D evelopment D irector
D E PA RTME NT D IRE C TO R RE V IE W: Julie Urban, A cting C ommunity D evelopment D irector
8/2/2022
O THE R D E PA RTM E NT RE V IE W: N/A
C ITY MA NA G E R RE V IE W: K atie Rodriguez, C ity Manager
8/3/2022
I T E M F O R C O UNC IL C O NS ID E RAT I O N:
Consider the adoption of a resolution supporting a Livable Communities Act Transit Oriented
Development grant application to the Metropolitan Council for the proposed "Veterans Village"
development by the American Legion Post 435 at 6501 Portland Avenue.
E X E C UT IV E S UM M ARY:
The American Legion Post 435 is seeking to redevelop their existing site at 6501 Portland Avenue with a
"Veterans Village," which will include up to 190 units of mixed-income, multi-family housing, restaurant space,
Legion offices, and banquet/community space. The Legion is proposing to submit a request for a Livable
Communities Act (L C A) Transit Oriented Development (T OD) grant to help finance the project.
L C A grants help communities achieve development goals that create more housing choice, support living
wage job creation, and connect jobs, housing, and regional amenities to create a more equitable region. LC A
TOD grants are focused on high density projects that contribute to a mix of uses in TOD-eligible areas, which
include areas along light rail, commuter rail, bus rapid transit, and high frequency bus corridors.
Applications are due on August 15, 2022, and a resolution of support from the City is required with
the application.
RE C O M M E ND E D AC T I O N:
By motion: Adopt a resolution supporting the submittal of an application to the Metropolitan Council
for a Livable Communities Act Transit Oriented Development grant to support the proposed "Veterans
Village" development by the American Legion Post 435 at 6501 Portland Avenue.
B AS IS O F RE C O M M E ND AT I O N:
A.H IS TOR IC AL C ON T E X T
I n 2021, the City underwent a visioning process for the area surrounding Veterans Park, including
the American Legion site. The Council adopted an overlay district, guiding development of the
area in ways that complement the Park and its facilities.
The American Legion presented their development concept for the site at a work session on April
26, 2022.
B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc):
The Metropolitan Council requires the City to be the applicant and to submit a resolution in
support of the grant application.
I t is the City's policy to seek grant funding when available and as appropriate.
C.C R IT IC AL T IMIN G IS S U E S:
The grant application is due August 15, 2022 , and a resolution of support needs to be submitted
as part of the application.
Approval of the application would be awarded in December.
Funds must be expended within three years of the grant award.
D.F IN AN C IAL IMPAC T:
Funding would be provided by the Metropolitan Council.
Community Development has the staff capacity to help prepare the application and administer the
grant, if awarded funds.
E.L E GAL C ON S ID E R AT ION:
T he City will be required to enter into a grant agreement with the Metropolitan Council, if
funding is awarded.
The City Attorney will review the grant agreement prior to execution.
ALTE R N AT IV E R E C O MME N D ATIO N(S):
Do not approve the resolution.
P R IN C IPAL PAR TIE S E X P E C TE D AT ME E TIN G:
N/A
AT TAC H ME N T S:
D escription Type
Resolution Resolution L etter
RESOLUTION NO.
RESOLUTION IDENTIFYING THE NEED FOR LIVABLE COMMUNITIES TRANSIT
ORIENTED DEVELOPMENT FUNDING AND AUTHORIZING APPLICATION FOR
GRANT FUNDS
WHEREAS, the City of Richfield is a participant in the Livable Communities Act’s
Local Housing Incentives Account Program for 2022 as determined by the Metropolitan
Council, and is therefore eligible to apply for Livable Communities Act Transit Oriented
Development (TOD) grant funds; and
WHEREAS, the City has identified a proposed project within the City that meets
the Transit Oriented Development Account purposes and criteria and is consistent with
and promotes the purposes of the Metropolitan Livable Communities Act and the
policies of the Metropolitan Council’s adopted metropolitan development guide ; and
WHEREAS, the City has the institutional, managerial and financial capability to
ensure adequate project administration; and
WHEREAS, the City certifies that it will comply with all applicable laws and
regulations as stated in the grant agreement; and
WHEREAS, the City agrees to act as legal sponsor for the project contained in
the grant application submitted on August 15, 2022; and
WHEREAS, the City acknowledges TOD grants are intended to fund projects or
project components that can serve as models, examples or prototypes for development
or redevelopment projects elsewhere in the region, and therefore represents that the
proposed project can be replicated in other metropolitan -area communities; and
WHEREAS, only a limited amount of grant funding is available through the
Metropolitan Council’s TOD grants during each funding cycle and the Metropolitan
Council has determined it is appropriate to allocate those scarce grant funds only to
eligible projects that would not occur without the availability of TOD grant funding.
NOW, THEREFORE, BE IT RESOLVED
1. It is in the best interests of the City’s development goals and priorities for the
proposed project to occur at this particular site and at this particular time.
2. The project components for which TOD grant funding is sought will not occur
solely through private or other public investment within the reasonably
foreseeable future and will occur within three years after a grant award only if
TOD funding is made available for this project at this time.
3. The City has undertaken reasonable and good faith efforts to procure funding for
the project components for which TOD grant funding is sought but was not able
to find or secure from other sources, funding that is necessary for project
component completion within three years and states that this representation is
based on the following reasons and supporting facts: the project requires
significant funding to cover the costs of redeveloping an existing site, providing
affordability for 20% of the multi-family units at 50% of the Area Median Income
(AMI), support for veterans, incorporating commercial space, providing both
exterior and interior community-oriented space and connections, design features
that integrate the development with the adjacent community park, and increased
construction costs.
Project Name Amount Requested
American Legion Post 435 – Veterans Village $750,000
4. Staff is authorized to submit on behalf of the City an application for Metropolitan
Council TOD grant funds for the project components identified in the application,
and to execute such agreements as may be necessary to implement the project
on behalf of the City.
Adopted by the City Council of the City of Richfield, Minnesota this 10th day of
August, 2022.
Maria Regan Gonzalez, Mayor
ATTEST:
Kari Sinning, City Clerk
AGENDA SECTION:CONSENT CALENDAR
AGENDA ITEM #4.F.
STAFF RE P ORT NO. 114
CIT Y COUNCIL ME E T ING
8/10/2022
RE P O RT P RE PA RE D B Y: S cott K ulzer, A dministrative A ide/A nalyst
D E PA RTME NT D IRE C TO R RE V IE W: K ristin A sher, P ublic Works D irector
8/2/2022
O THE R D E PA RTM E NT RE V IE W:
C ITY MA NA G E R RE V IE W: K atie Rodriguez, C ity Manager
8/3/2022
I T E M F O R C O UNC IL C O NS ID E RAT I O N:
Consider authorizing the Mayor and City Manager to execute a cost-share/reimbursement agreement
with Partnership Academy for installation of a water utility service line in advance of the City's 65th
Street Reconstruction Project due to expansion of the Partnership Academy campus.
E X E C UT IV E S UM M ARY:
Advance Authorization Requested
The City Attorney is working with Engineering Staff to draft the cost-share/reimbursement agreement
but the final agreement is not ready at this time. Authorizing the Mayor and City Manager to execute
the agreement at a future date will ensure the Partnership Academy addition construction is not
delayed while the cost-share/reimbursement agreement is waiting to be formally approved by City
Council.
Partnership Academy Cost-Share/Reimbursement
The City’s 65th Street Reconstruction Project includes installation of a new 6” water service from 65th
St to Partnership Academy (6500 Nicollet Ave). The work is primarily within Partnership Academy
property and the City has a current Waiver of Trespass to perform the work as part of the 65th Street
Reconstruction Project.
Partnership Academy is constructing a new building addition that requires relocation of the existing
water main and water service on their property.
Partnership Academy is potentially performing their utility work prior to the City installing the new water
service, and would benefit from being able to install the new service from the building to the right-of-way
on their own schedule as they build their addition.
The City has agreed to reimburse Partnership Academy the cost for any work in the 65th Street
Reconstruction Project plans that is constructed by Partnership Academy. The reimbursement is based
strictly on 65th Street Reconstruction Project bid item costs which is what the City would pay for the
work.
The calculated cost-share/reimbursement amount is $31,311.20 and the cost breakdown is included
with this staff report.
RE C O M M E ND E D AC T I O N:
By Motion: Authorize the Mayor and City Manager to execute a cost-share/reimbursement agreement
with Partnership Academy for installation of a water utility service line in advance of the City's 65th
Street Reconstruction Project due to expansion of the Partnership Academy campus.
B AS IS O F RE C O M M E ND AT I O N:
A.H IS TOR IC AL C ON T E X T
See Executive Summary.
B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc):
The 65th Street Reconstruction Project is identified in the City's Capital I mprovement Program
and Five-Year Street Reconstruction Plan.
Approval of this cost-share/reimbursement agreement is consistent with City Council Strategic
Priority/Outcome 3a (City infrastructure supports the needs of the community).
C.C R IT IC AL T IMIN G IS S U E S:
The August 23rd City Council meeting is cancelled and the next regular City Council meeting is
September 13th.
Partnership Academy's construction schedule will require the water service to be installed prior to
September 13th.
Authorizing the Mayor and City Manager to approve the final cost-
share/reimbursement agreement at a future date will ensure that Partnership Academy's project is
not delayed while the agreement is waiting to be formally approved by City Council.
D.F IN AN C IAL IMPAC T:
The cost-share/reimbursement will be paid using the project funds already dedicated to the
installation of the water service line on the Partnership Academy campus.
The calculated cost-share/reimbursement amount is $31,311.20 and the cost breakdown is
included with this staff report.
E.L E GAL C ON S ID E R AT ION:
The City Attorney is drafting the final cost-share/reimbursement agreement and will be available to
answer questions.
ALTE R N AT IV E R E C O MME N D ATIO N(S):
None
P R IN C IPAL PAR TIE S E X P E C TE D AT ME E TIN G:
None
AT TAC H ME N T S:
D escription Type
C ost B reakdown E xhibit
PA water main plan set E xhibit
Partnership Academy Water Service Line Cost BreakdownITEM NO. ITEM DESCRIPTION UNIT TOTAL ESTIMATED QUANTITY UNIT COST TOTAL COST 2504.608 DUCTILE IRON FITTINGS POUND378 5.50$ 2,079.00$ 2104.503 SAWING BIT PAVEMENT (FULL DEPTH) LIN FT394 2.70$ 1,063.80$ 2104.504 REMOVE BITUMINOUS PAVEMENT SQ YD297 7.10$ 2,108.70$ 2504.603 6" WATERMAIN DUCTILE IRON CL 52 LIN FT189 70.00$ 13,230.00$ 2106.507 SELECT GRANULAR EMBANKMENT (CV) CU YD99 20.50$ 2,029.50$ 2211.507 AGGREGATE BASE (CV) CLASS 6 CU YD58 50.00$ 2,900.00$ 2360.509 TYPE SP 12.5 WEARING COURSE MIX (3,C) TON83.16 95.00$ 7,900.20$ GRAND TOTAL:31,311.20$
AGENDA SECTION:CONSENT CALENDAR
AGENDA ITEM #4.G.
STAFF RE P ORT NO. 115
CIT Y COUNCIL ME E T ING
8/10/2022
RE P O RT P RE PA RE D B Y: C hris S wanson, Management A nalyst
D E PA RTME NT D IRE C TO R RE V IE W:
O THE R D E PA RTM E NT RE V IE W: K umud Verma, F inance Manager
C ITY MA NA G E R RE V IE W: K atie Rodriguez, C ity Manager
8/4/2022
I T E M F O R C O UNC IL C O NS ID E RAT I O N:
Approval of a resolution amending the allocation of the 2021 General Fund Budget.
E X E C UT IV E S UM M ARY:
The Richfield City Charter provides that the City Council must appropriate monies for operations of the City
on a departmental level basis. During the course of the year, the City Council amends the operating budget
and it is referred to as the Revised Budget.
After completion of the annual audit and closing of the fiscal year, if a department within the City’s General
Fund exceeds its approved appropriation, a transfer of appropriations from another General Fund department
is required to bring that department’s budget into balance.
Two General Fund departments currently exceed their approved 2021 appropriations:
The Finance department exceeded their 2021 budget by $10,641 or 1.4%. The higher than expected
expenditures are due to increased costs in professional services to assist with processing support due to
multiple vacancies and performed an overall evaluation to improve workflow, increase processing efficiencies
and internal controls within Finance.
The Fire department exceeded their 2021 budget by $140,870 or 2.8%. This was the result of additional
expenditures due to overtime required to offset staffing shortages and an electronic key project (Knox Box)
that was completed to ensure reliable emergency access to buildings throughout the city. The additional
expenditures were somewhat offset by additional department revenues. Revenues exceeded the budget by
$98,715 primarily due to state aid coming in higher than anticipated and additional training reimbursements.
To balance the appropriation of the Finance and Fire departments, a combined transfer of appropriations
from the Public Safety department in the amount of $151,511 is recommended. This transfer will still leave a
surplus of $23,913 in the Public Safety department. The surplus in Police Department budget is due to
positions vacant during 2021, which have now been filled.
Finally, it should be noted, that the General Fund will end 2021 with an estimated surplus of $539,439.
RE C O M M E ND E D AC T I O N:
By Motion: Approve the resolution amending the 2021 General Fund Budget by authorization of a
transfer of appropriations from the Public Safety Department to the Finance and Fire Departments.
B AS IS O F RE C O M M E ND AT I O N:
A.H IS TOR IC AL C ON T E X T
See Executive Summary
B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc):
The City Charter provides that the City Council must appropriate monies for operations of the City on a
departmental level basis.
During the course of the year, the City Council amends the operating budget and it is referred to as the
Revised Budget.
C.C R IT IC AL T IMIN G IS S U E S:
See Executive Summary
D.F IN AN C IAL IMPAC T:
See Executive Summary
E.L E GAL C ON S ID E R AT ION:
City Charter provides that the City Council must appropriate funds at the department level of spending.
ALTE R N AT IV E R E C O MME N D ATIO N(S):
Council could direct staff to reduce other General Fund department budgets to increase the Finance and Fire
Department budgets for fiscal year 2021.
P R IN C IPAL PAR TIE S E X P E C TE D AT ME E TIN G:
N/A
AT TAC H ME N T S:
D escription Type
Resolution amending the allocation of the 2021 General
F und B udget.Resolution L etter
RESOLUTION NO
RESOLUTION AUTHORIZING REVISION OF 2021 BUDGETS OF VARIOUS
DEPARTMENTS
WHEREAS, Resolution No. 11798 appropriated funds for personal services, other
services and charges, supplies and capital outlays for each department of the City for the
year 2021; and
WHEREAS, Resolution No. 11799 authorized revision of the 2021 budget various
departments; and
WHEREAS, the City Manager has requested a revision of the 2021 budget
appropriations in accordance with charter provisions.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield,
MN as follows:
SUMMARY
INCREASE BUDGETED EXPENDITURES
Finance Division $ 10,641
Fire Department $ 140,870
Total $ 151,511
DECREASE BUDGETED EXPENDITURES
Public Safety Department $151,511
Total $151,511
Net Change to General Fund Budget $ 0
Passed by the City Council of the City of Richfield, MN. this 10th day of August,
2022.
Maria Regan Gonzalez, Mayor
ATTEST:
Kari Sinning, City Clerk