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HomeMy WebLinkAbout12-07-2020 Council PacketAgenda Council Meeting Monday, December 7, 2020 6:00 P.M. Orono Council Chambers, 2780 Kelley Parkway, Orono, MN 55356 952-249-4600 / www.ci.orono.mn.us Sign up for email notifications at www.ci.orono.mn.us The public is invited to address the council regarding any item on the regular agenda. If your topic is not on the agenda, you may speak during the Public Comments section. Roll Call Pledge of Allegiance Truth in Taxation Public Hearing – 6:00 p.m. 1. 2021 Budget Hearing a. 2021 Budget Information b. Adopt Final 2020 Levy Collectible in 2020 c. Adopt Final 2021 General Fund Budget d. Adopt the 2021 Special Revenue Funds Budgets Approval of Agenda Consent Agenda 2. Special Council Meeting Minutes of November 13, 2020 3. City Council Meeting Minutes of November 23, 2020 4. Council Work Session Minutes of November 23, 2020 5. Claims/Bills 6. Adopt 2021 Fee Schedule 7. Cost of Living Adjustments for Non-Union Employees 8. Authorization to Disburse Claims 9. 2021 Annual Appointments 10. Adopt 2021 Capital Improvement Plan 11. Non-Waiver of Tort Limits 12. 2020 Interfund Transfers and Loan Payments 13. Request for Proposal (RFP) Schedule 14. 2019 Streets Reconstruction Project – Pay Request No. 7 – Final 15. Authorization to Accept Donation for Future City Event 16. Authorization to Accept William Persell Resignation 17. LA20-000022 – Randy Haapala, HNH Homes o/b/o William & Kathleen Wanner, 1095 Ferndale Rd West, Variances & CUPs – Resolution Public Comments – (Limit 5 Minutes per Person) This is an opportunity for the public to address matters not on the agenda. The council will not engage in discussion or take action on items presented at this time. However, the council may refer issues to staff for follow up or consideration at a future meeting. Speakers should state their name and home address at the podium before speaking. Agenda Council Meeting Monday, December 7, 2020 6:00 P.M. Orono Council Chambers, 2780 Kelley Parkway, Orono, MN 55356 952-249-4600 / www.ci.orono.mn.us Sign up for email notifications at www.ci.orono.mn.us Presentation 18. 2019 Comprehensive Annual Financial Report Presentation 19. Recognizing Donations Received in 2020 – Resolution Public Works Director City Engineer Report 20. Big Island Park ADA Trail Project (19-033) – 2nd Toilet Change Public Hearing 21. LA20-000072 – 3570 Ivy Place, CUP – Permanent Dock Planning Department Report 22. LA20-000048 – Timothy Whitten o/b/o Irwin Jacobs 2018 Rev Trust, 1700 Shoreline Drive Preliminary Plat – Resolution 23. LA20-000069 – All Energy Solar o/b/o Aron and Kali Johnson, 4760 Bayside, Variance – Resolution 24. LA20-000071 – Jacob Stickney, 15 Stubbs Bay Road/PID 3211823340006, Variances – Resolution 25. LA20-000070 – Boyer Building Corp., 3145 North Shore Drive, Variance – Resolution 26. Declaration of a Nuisance at 3895 North Shore Drive 27. Authorize Text Amendment Related to Special Lot Combinations Mayor/Council Report City Administrator Report City Attorney Report Adjournment Upcoming Events 2020 12-24-20 Official Holiday, City Offices Closed 12-25-20 Official Holiday, City Offices Closed 2021 01-01-21 Official Holiday, City Offices Closed 01-04-21 Parks Commission Meeting, Monday, 6:00 p.m. 01-11-21 Council Work Session, Monday, 5:00 p.m. 01-11-21 City Council Meeting, Monday, 6:00 p.m. 01-18-21 Official Holiday, City Offices Closed 01-19-21 Planning Commission Meeting, Tuesday, 6:00 p.m. (Victoria Seals) 01-25-21 Council Work Session, Monday, 5:00 p.m. 01-25-21 City Council Meeting, Monday, 6:00 p.m. AGENDA ITEM Prepared By: MLU Reviewed By: MLU Approved By: DJR 1. Purpose. The purpose of this action item is to approve the 2021 General Fund Budget, Tax Levy, and the 2021 Special Revenue Fund Budgets. 2. Background. Prior to the adoption of the 2021 budget and tax levy, the City is required to hold a public hearing to allow public input on the budget and tax levy. By law, this hearing must occur between November 25th and December 28th. When the preliminary tax levy and budget was approved in September, the public hearing was set for December 7, 2020 at 6:00 pm. This public hearing is the final step prior to adoption of the budget and tax levy. The budget process was begun by staff at the beginning of June. At a work session held on July 22nd, the Council was provided background information on the budget and an overview of the budget challenges for 2021. Over the summer, a draft budget was prepared and reviewed by the Council at work sessions in August. In September, the preliminary budget and tax levy was publically presented and adopted at the council meeting of September 28th. In addition to the work on the actual budget, staff has been working on updating the Capital Improvement Plan (CIP). The CIP identifies the long-term infrastructure needs and is a valuable tool in the budgeting process. The CIP will also be approve as part of tonight’s meeting. In conjunction with the budget process, staff has also been reviewing the fee schedule. The 2021 fee schedule, as currently amended, will be adopted at tonight’s meeting. Tax Levy The total tax levy required to fund the 2021 budget is $6,610,620. This is an increase of $603,170 or 10% over the 2020 levy. The increase includes an additional $132,550 for road maintenance and reconstruction; reflecting the Council’s desire to establish a long term funding solution for the City’s road infrastructure. Added to the tax levy this year includes funding towards the Building Fund and Parks Fund, of $310,000 for development, improvements and repairs for buildings and $50,000 for parks, respectively. There is a slight increase of $1,400 for the 2014 bond and a slight decrease of $195 for the 2016 bond. The remaining increase of $242,140 is an increase to the General Fund operating levy. Overall, the tax rate is slightly increasing from 16.512% to 16.765%. Orono continues to have one of the lowest tax rates in both Hennepin County (ranking 41 of 45 cities), and the State of Minnesota. The tax levy is used to fund the general operations of the City (General Fund), pay the debt service on the City’s outstanding bonds, and fund the Pavement Management Fund, Building Fund and Parks Fund. A levy amount of $6,610,620 was approved in the preliminary tax levy. This has not changed in the final tax levy. The breakdown of the 2019 levy is $579,480 for debt service, $750,000 for roads, $310,000 for buildings, $50,000 for parks and the remaining $4,921,140 is used in the General Fund. Item No.: 1 Date: December 7, 2020 Item Description: 2021 Budget Hearing Presenter: Maggie Ung Accountant Agenda Section: Truth In Taxation Public Hearing AGENDA ITEM Prepared By: MLU Reviewed By: MLU Approved By: DJR Tax Capacity Rate and the Impact of the Tax Levy on Property Owners The County Assessor provides an annual calculation of the City’s tax capacity based on the annual property revaluation. As of August 20, 2020, the City’s taxable market value is $3,432,437,494 with a tax capacity of $$39,438,081. When compared to last year, taxable market value has increased by 7.86% and the tax capacity by 8.37%. As a result of the City’s increased tax capacity, the tax capacity rate will increase from 16.512% in 2020 to 16.765% in 2021. Using this tax rate and assuming no change in a property’s value, the City’s share of the property tax bill would be: an increase of $28.79 (7.41%) on a home previously valued at $250,000; an increase in tax of $65.04 (7.88%) on a $500,000 home; a $1,000,000 home will see an increase of $133.24 (7.17%); and a $2,000,000 home has an increase of $269.65 (6.88%). The actual tax impact on any particular property will depend on how the property’s taxable value changed in relation to the rest of the City. Tables illustrating a 5% increase in value and a 5% decrease in value are included in this budget document. General Fund Budget General Fund Expenditures The 2021 expenditure budget is $9,260,500 which is an increase of $ 117,300 (1.3%) over the 2020 budget. The significant increase is the following: Building Inspection Service (Professional Services) is increasing $155,700 (10.53%). This is due to having the building official position in house transition to outsourcing the duties. Therefore, there is only a slight increase in Wages and Benefits (Personal Services) of $55,300 (0.96%) while the Cost of Living increases 3%. The significant decrease is as follows: Distribution to Other Government (Other Expenses) is $116,200 (23.29%). The change was to the accounting for the Toward Zero Deaths Grant. The City was not designated as the authorized representative in 2021. After accounting for these more significant increases and decreases, the remaining General Fund increases the total of $22,500 or 0.25%. General Fund Revenues For revenues, the General Fund budget also totals $9,260,500 and is increasing by $117,300 (1.3%). The largest increase in revenues is the property tax line at $247,140. Coop Police Services are increasing by $25,060 and are the amounts charged to the City of Spring Park, Minnetonka Beach and Mound for providing them police services. The significant decrease include $130,000 in the State Grant line item which was also discussed in the expenditure section. All other revenue changes total $24,900 and represent an increase of 0.27% of the revenue budget. Special Revenue Funds The special revenue funds that budgets are adopted for are the Park Fund, The Drug Forfeiture Fund, and the TIF Fund. Special revenue funds by definition have a primary source of revenue that is dedicated for a specific purpose. In the Park Fund the primary revenue source is park dedication fees collected from developers. By state law, these funds must be used for parkland acquisition and development. The Drug Forfeiture Fund receives its primary funding from the Police Department’s drug and alcohol enforcement activities. The funds must be used for drug and alcohol related activities. The TIF Fund is used to account for revenues related to the Orono Woods Senior Housing Development. AGENDA ITEM Prepared By: MLU Reviewed By: MLU Approved By: DJR Debt Service Levies The 2021 levy for debt service is $579,480. This levy is used to pay the debt service on the City’s outstanding bonds. Enterprise Funds The Water, Sewer, Stormwater, and Recycling Funds are designed to account for the business type activities of the City. These funds do not receive any property tax revenue. The goal for the Enterprise funds is to be fully funded by rates without depending on special assessments for infrastructure improvements. While there is no formal adoption of the expenditure budgets, the information is included in the budget book. On the revenue side of the budget, the utility rates are approved annually as part of the fee schedule. The utility rate increases being recommended are Water 10%; Sewer 10%, Stormwater 1%, and Recycling by 8%. Additionally, based on the area (North, South, Wayzata, or Long Lake), the sewer and water will be charged accordingly. Due to transition to monthly billing, the tiers have also been rounded to the nearest hundredth gallons. The utility rates will be approved December 7th as part of the 2021 Fee Schedule. Water The water fund has historically been operating at a loss. Because depreciation is a non-cash expenditure, the fund has had a positive operating cash flow since 2009. In previous years, the operating loss has been covered by the revenue received from antenna leases on the water towers. The revenue from the antenna leases has been moved out of the Water budget since 2018 and this revenue decrease has been recovered through water rates. As presented, the operating budget for 2021 will have an operating loss of $112,765. The expenditure budget is increasing by $55,350 (5.6%). $15,300 is due to Wages and Benefits. The operating transfer of $55,000 is to the debt service fund supporting the Casco Point Bonds ($55,000). The non-operating interest expense is for the interest on the 2014 Water Bonds. 2021 capital expenditures as identified in the 2021 CIP include a water main replacement at Walters Port and water valve replacements. The 2021 capital expenditures total $420,500. The Water Fund’s anticipated cash balance for the fund at the end of 2020 is 267,887. Sewer In recent years, the sewer fund has mostly operated at a loss. Non-operating revenues however, have consistently offset the operating losses. This has resulted in a positive operating cash flow for the fund. The single largest expense for the sewer fund is the Met Council disposal charges. The five years have seen increases in the amounts of $37,410 (9.5%), $41,276 (9.6%), $82,147 (17.4%), $64,035 (11.5%) and $81,200 (13.1%) respectively. This is a 77.6% increase in five years. As has been discussed with the Council during previous budget processes, heavy rains and high water tables increase the flow through the MCES lift stations and increase our disposal charges. The total operating expenditure budget is increasing by $112,700 (5.91%) The major increases are the previously mentioned MCES charges ($81,200). The operating transfer of $115,000 is to cover the sewer improvements that were part of the Casco Point project and will continue for another four years. AGENDA ITEM Prepared By: MLU Reviewed By: MLU Approved By: DJR Upcoming capital expenditures can be covered by the fund’s current cash balances. Projects identified in the CIP for 2021 include: Annual sewer rehabilitation ($290,000), additional generators ($75,000), grinder station ($20,000), lift station updates ($120,000), additional road project adjustments ($63,000), sewer meter installation into Long Lake, and force main replacement for Tonkawa ($225,000), for a total of $833,000. The anticipated cash balance for the fund at the end of 2020 is $2,019,555. Stormwater The Stormwater Fund is for the most part project based. Operating expenditures are mainly limited to engineering associated with NPDES, SWPPP and other state and federal requirements. Public Works time and materials spent on culvert cleaning/replacement are also charged to this fund. The purpose of this fund is to collect money for the larger Stormwater projects that will be required in the future. The attached five-year projection assumes a 10% annual increase. Potential CIP projects in 2021 include: Casco Circle ($49,380), Park Lane & Elm Street ($26,190), Navarre West Road and East Roads ($88,855), Eileen Street ($7,725), manhole rebuilds ($35,000), Casco Point Park Outlet ($58,000), South Casco Point Road sump ($36,000), Casco Point Park Bioretention basin ($55,000), Fagerness Point Road drainage system ($80,000), and Storm Sewer Improvements ($50,000). The capital expenditures total $536,150. The anticipated cash balance for the fund at the end of 2020 is $1,433,719. Recycling The recycling funds major expenditure line is for contracted recycling charges. The current contract with Waste Management is increasing 4%. The Recycled Materials has weakened in the past few years since 2018. The full time wages that are charged to the fund represent 10% of the City Clerks wages. The anticipated cash balance for the fund at the end of 2020 is $70,382. Cable The Cable funds projected revenues are based on current subscriber information and rates. The line item for Internet/Other communications covers the costs associated with streaming and online access of council meetings. It has been increased to pay for the increased cost of our fiber internet connection. Revenue for the fund is in the from franchise fees that are set by the City’s franchise agreement with Mediacom. The current cash balance of the fund is $169,102. Construction Funds The City does not adopt formal budgets for construction funds. Possible projects for these funds can be found in the CIP. The CIP is a planning tool only; approval of the CIP not approve or authorize any purchases. The projects identified in it will require individual approval from the Council before they can be started. Capital Improvement Plan In 2012 the City formally adopted a Capital Improvement Plan (CIP). In order to keep the CIP useful, it is updated on a yearly basis. An updated copy of the CIP for 2020 is included with this memo and will be approved tonight. The CIP is a planning document only and approval of the CIP does not constitute approval of any expenditures. There are two main focusses of the CIP. First is the CIP items that have been identified as needs by staff. The Second is available funding for the CIP. Many funding sources are not adequate to fund the CIP items so funding will need to be secured prior to moving forward with the projects. AGENDA ITEM Prepared By: MLU Reviewed By: MLU Approved By: DJR The funding for the Street CIP includes an additional $300,000 in tax levy starting in 2023. In that year, the levy needed for debt service will decrease by $300,000 and by transferring the levy to the CIP, there will be adequate funding for roads. This increased levy for the CIP will require Council approval at that time. 3. Staff Recommendation. Staff recommends approval of the attached budget resolutions setting the 2021 Property Tax Levy, the 2021 General Fund Budget, the 2021 Special Revenue Fund Budgets, and the 2021 Enterprise Fund Budgets. COUNCIL ACTION REQUESTED Motions to approve the 2021 Property Tax Levy, the 2021 General Fund Budget, the 2021 Special Revenue Fund Budgets, and the 2021 Enterprise Fund Budget. Exhibits A. Resolution Adopting the 2021 Property Tax Levy B. Resolution Adopting the Final 2021 General Fund Budget C. Resolution Adopting the 2021 Special Revenue Fund Budgets D. Resolution Adopting the 2021 Enterprise Fund Budgets E. Draft 2021 Budget Book CITY OF ORONO RESOLUTION OF THE CITY COUNCIL NO. _________________ A RESOLUTION ADOPTING THE FINAL 2021 PROPERTY TAX LEVY BE IT RESOLVED, by the City Council of the City of Orono, County of Hennepin, Minnesota, that the following sums be levied for the current year, collectible in 2021 upon the taxable property in the City of Orono, for the following purposes: General Fund - Operating $4,921,140 Building Fund 310,000 Pavement Management Levy 750,000 Parks 50,000 G.O. Improvement Bond 2014 166,700 G.O. Improvement Bond 2016 412,780 TOTAL ALL LEVIES $6,610,620 The City Clerk is hereby instructed to transmit a certified copy of this resolution to the County Auditor of Hennepin County, Minnesota. Adopted by the City Council of the City of Orono, Minnesota at a regular meeting held December 7, 2020. ATTEST: ______________________________ ______________________________ Anna Carlson, City Clerk Dennis Walsh, Mayor CITY OF ORONO RESOLUTION OF THE CITY COUNCIL NO. _________________ A RESOLUTION TO ADOPT THE FINAL 2021 GENERAL FUND BUDGET BE IT RESOLVED, by the City Council of the City of Orono, County of Hennepin, Minnesota that the final 2021 General Fund budget is determined to be as follows: ESTIMATED REVENUES Taxes - General $4,936,140 Licenses and Permits 532,200 Intergovernmental 268,000 Charges for Services 3,157,460 Fines and Forfeits 70,100 Interest Income 70,500 Recreation Fees 188,000 Miscellaneous 38,100 TOTAL $9,260,500 APPROPRIATED EXPENDITURES General Government $1,455,850 Public Safety 5,868,700 Street Maintenance 641,100 Parks and Recreation 525,850 Engineering - Unallocated 20,000 Reimbursable Expenditures 129,000 Special Projects and Contingency 30,000 Capital Outlay 190,000 Transfers to Other Funds 400,000 TOTAL $9,260,500 Adopted by the City Council of the City of Orono, Minnesota at a regular meeting held December 7, 2020. ATTEST: ____________________________________ ____________________________________ Anna Carlson, City Clerk Dennis Walsh, Mayor CITY OF ORONO RESOLUTION OF THE CITY COUNCIL NO. _________________ A RESOLUTION TO ADOPT THE 2021 SPECIAL REVENUE FUND BUDGETS BE IT RESOLVED, by the City Council of the City of Orono, County of Hennepin, Minnesota that the 2021 Special Revenue Fund budgets are determined to be as follows: Drug/Felony Estimated Revenues Park Forfeiture TIF Taxes – General $ - - $ - - 77,000 Interest Income 5,000 1,000 - - User Fees / Loan Payment - - 25,000 - - Park Dedication Fees 5,500 - - - - Intergovernmental - - - - - - Transfers from other Funds - - - - - - Use of Fund Balance 329,000 - - - - Total Revenues $ 339,500 $ 26,000 $ 77,000 Appropriated Expenditures General Government $ - - $ - - $ 70,000 Public Safety - - 20,000 - - Streets - - - - - - Parks & Recreation 339,500 - - - - Transfers to Other Funds - - - - - - Increase to Fund Balance - - 6,000 7,000 Total Expenditures $ 339,500 $ 26,000 $ 77,000 Adopted by the City Council of the City of Orono, Minnesota at a regular meeting held December 7, 2020. ATTEST: ____________________________________ ____________________________________ Anna Carlson, City Clerk Dennis Walsh, Mayor CITY OF ORONO RESOLUTION OF THE CITY COUNCIL NO. _________________ A RESOLUTION TO ADOPT THE 2021 ENTERPRISE FUND BUDGETS BE IT RESOLVED, by the City Council of the City of Orono, County of Hennepin, Minnesota that the 2021 Enterprise Fund budgets are determined to be as follows: Estimated Revenues Water Sewer Recycling Stormwater Cable Charges for Service $1,134,237 $1,803,429 $205,632 $661,799 $76,000 Interest Income 10,000 35,000 -- 15,000 1,000 Non-Operating -- 20,000 25,000 -- -- Total Revenues $1,144,237 $1,858,429 $230,632 $676,799 $ 77,000 Appropriated Expenditures Operating Expenses $911,150 $1,791,200 $216,700 $373,000 $71,200 Non-Operating Expenses Interest Expense 22,100 Debt Service 80,000 Transfer to Other Funds 55,000 110,000 -- -- -- Total Expenditures $1,068,250 $1,901,200 $216,700 $373,000 $73,700 Adopted by the City Council of the City of Orono, Minnesota at a regular meeting held December 7, 2020. ATTEST: ____________________________________ ____________________________________ Anna Carlson, City Clerk Dennis Walsh, Mayor CITY OF ORONO MINNESOTA 2021 ANNUAL BUDGET 2750 Kelley Parkway Orono, MN 55356 www.ci.orono.mn.us   City of Orono  2021 Annual Budget    Table of Contents          Section 1:  Introduction & Summary  Introduction/Budget Summary ……………   3  Fund and Department Descriptions ...….   7  Resolutions ………....................……………… 13  Tax Levies ………………….……………………….. 17  Budget Effect on Residential Homes ...… 19  General Fund Revenues ….…………………… 23  General Fund Expenditures ……………….… 27  Summary of all Funds ……………………...…. 31  Outstanding Debt ………………………....……. 33  Debt Projection ……………………………........ 35        Section 2:  Changes in Fund Balance/Retained  Earnings  Summary …………………………….………………. 37  General Fund …………………………….………… 38  Special Revenue Funds …….…………………. 39  Debt Service Funds ………………………….….. 46  Capital Project Funds ……………………….…. 51  Enterprise Funds ……………………………….… 58           Section 3:  Operating Budgets  General Fund  Mayor & Council …………..……………..…….. 63  Administration ……………….……….…………. 65  Election ……………………………….………….…. 68  Assessing …………………………..……………….. 70  Finance ………………………..……………….…... 72  Law/Legal Services ……………………….……. 74  Central Services …………………………….…… 76  Human Services ………………………….……… 79  Police Department ……………………….……. 81  Fire Protection ……………..…………………… 85  Building & Zoning ………………………..…….. 87  Engineering ………………………………….…….. 90  Public Works …………………………..………….. 92  Parks ………………………………………………….. 95  Golf Course ………………………………….…….. 98  Brush Site …………………………………….…….. 102  Special Services. ‐ Consulting & Police .. 104  Special Projects‐Contingencies ..…..……. 106  Enterprise Fund  Water ……………………………………….….……. 109  Sewer ……………………………………….…..……. 113  Recycling ……………………………………...……. 118  Stormwater …………………………..……...…… 121  Cable ……………………………………….…...……. 125    Section 4: Personnel Authorization  Personnel Budget ………….………………..... 127  Organization Chart ……………..…………….. 128       City of Orono - 2021 Budget Page 1 City of Orono - 2021 Budget Page 2 Budget Process The budget process began in the beginning of June. At a work session held on July 22nd, the Council was provided background information on the budget and an overview of the budget challenges for 2021. Over the summer, a draft budget was prepared and reviewed by the Council at the August work session. In September, the preliminary budget and tax levy was publically presented and adopted at the council meeting of September 28th. Prior to the adoption of the 2021 budget and tax levy, the City is required to hold a public hearing to allow public input on the budget and tax levy. By law, this hearing must occur between November 25th and December 28th. When the preliminary tax levy and budget was approved in September, the public hearing was set for December 7, 2020 at 6:00 pm. The final budget and tax levy was adopted at the conclusion of the public hearing. In addition to the work on the actual budget, staff has been working on updating the Capital Improvement Plan (CIP). The CIP identifies the long-term infrastructure needs and is a valuable tool in the budgeting process. The CIP was also approved as part of the December 7th meeting. In conjunction with the budget process, staff has also reviewed the fee schedule. The 2021 fee schedule, as amended, was adopted on December 7th. Tax Levy The total tax levy required to fund the 2021 budget is $6,610,620. This is an increase of $603,170 or 10% over the 2020 levy. The increase includes an additional $132,550 for road maintenance and reconstruction; reflecting the Council’s desire to establish a long term funding solution for the City’s road infrastructure. Added to the tax levy this year includes funding towards the Building Fund and Parks Fund, of $310,000 for development, improvements and repairs for buildings and $50,000 for parks, respectively. There is a slight increase of $1,400 for the 2014 bond and a slight decrease of $195 for the 2016 bond. The remaining increase of $242,140 is an increase to the General Fund operating levy. Overall, the tax rate is slightly increasing from 16.512% to 16.765%. Orono continues to have one of the lowest tax rates in both Hennepin County (ranking 41 of 45 cities), and the State of Minnesota. The tax levy is used to fund the general operations of the City (General Fund), pay the debt service on the City’s outstanding bonds, and fund the Pavement Management Fund, Building Fund and Parks Fund. A levy amount of $6,610,620 was approved in the preliminary tax levy. This has not changed in the final tax levy. The breakdown of the 2019 levy is $579,480 for debt service, $750,000 for roads, $310,000 for buildings, $50,000 for parks and the remaining $4,921,140 is used in the General Fund. Tax Capacity Rate and the Impact of the Tax Levy on Property Owners The County Assessor provides an annual calculation of the City’s tax capacity based on the annual property revaluation. As of August 20, 2020, the City’s taxable market value is $3,432,437,494 with a tax capacity of $$39,438,081. When compared to last year, taxable market value has increased by 7.86% and the tax capacity by 8.37%. As a result of the City’s increased tax capacity, the tax capacity rate will increase from 16.512% in 2020 to 16.765% in 2021. Using this tax rate and assuming no change in a property’s value, the City’s share of the property tax bill would be: an increase of $28.79 (7.41%) on a home previously valued at $250,000; an increase in tax of $65.04 (7.88%) on a City of Orono - 2021 Budget Page 3 $500,000 home; a $1,000,000 home will see an increase of $133.24 (7.17%); and a $2,000,000 home has an increase of $269.65 (6.88%). The actual tax impact on any particular property will depend on how the property’s taxable value changed in relation to the rest of the City. Tables illustrating a 5% increase in value and a 5% decrease in value are included in this budget document. General Fund Budget General Fund Expenditures The 2021 expenditure budget is $9,260,500 which is an increase of $ 117,300 (1.3%) over the 2020 budget. The significant increase is the following: Building Inspection Service (Professional Services) is increasing $155,700 (10.53%). This is due to having the building official position in house transition to outsourcing the duties. Therefore, there is only a slight increase in Wages and Benefits (Personal Services) of $55,300 (0.96%) while the Cost of Living increases 3%. The significant decrease is as follows: Distribution to Other Government (Other Expenses) is $116,200 (23.29%). The change was to the accounting for the Toward Zero Deaths Grant. The City was not designated as the authorized representative in 2021. After accounting for these more significant increases and decreases, the remaining General Fund increases the total of $22,500 or 0.25%. General Fund Revenues For revenues, the General Fund budget also totals $9,260,500 and is increasing by $117,300 (1.3%). The largest increase in revenues is the property tax line at $247,140. Coop Police Services are increasing by $25,060 and are the amounts charged to the City of Spring Park, Minnetonka Beach and Mound for providing them police services. The significant decrease include $130,000 in the State Grant line item which was also discussed in the expenditure section. All other revenue changes total $24,900 and represent an increase of 0.27% of the revenue budget. Special Revenue Funds The special revenue funds that budgets are adopted for are the Park Fund, The Drug Forfeiture Fund, and the TIF Fund. Special revenue funds by definition have a primary source of revenue that is dedicated for a specific purpose. In the Park Fund the primary revenue source is park dedication fees collected from developers. By state law, these funds must be used for parkland acquisition and development. The Drug Forfeiture Fund receives its primary funding from the Police Department’s drug and alcohol enforcement activities. The funds must be used for drug and alcohol related activities. The TIF Fund is used to account for revenues related to the Orono Woods Senior Housing Development. Debt Service Levies The 2021 levy for debt service is $579,480. This levy is used to pay the debt service on the City’s outstanding bonds. Enterprise Funds The Water, Sewer, Stormwater, and Recycling Funds are designed to account for the business type activities of the City. These funds do not receive any property tax revenue. The goal for the Enterprise funds is to be fully funded by rates without depending on special assessments for infrastructure improvements. While there is no formal adoption of the expenditure budgets, the information is included in the budget book. On the revenue side of the budget, the utility rates are City of Orono - 2021 Budget Page 4 approved annually as part of the fee schedule. The utility rate increases being recommended are Water 10%; Sewer 10%, Stormwater 1%, and Recycling by 8%. Additionally, based on the area (North, South, Wayzata, or Long Lake), the sewer and water will be charged accordingly. Due to transition to monthly billing, the tiers have also been rounded to the nearest hundredth gallons. The utility rates will be approved December 7th as part of the 2021 Fee Schedule. Water The water fund has historically been operating at a loss. Because depreciation is a non-cash expenditure, the fund has had a positive operating cash flow since 2009. In previous years, the operating loss has been covered by the revenue received from antenna leases on the water towers. The revenue from the antenna leases has been moved out of the Water budget since 2018 and this revenue decrease has been recovered through water rates. As presented, the operating budget for 2021 will have an operating loss of $112,765. The expenditure budget is increasing by $55,350 (5.6%). $15,300 is due to Wages and Benefits. The operating transfer of $55,000 is to the debt service fund supporting the Casco Point Bonds ($55,000). The non-operating interest expense is for the interest on the 2014 Water Bonds. 2021 capital expenditures as identified in the 2021 CIP include a water main replacement at Walters Port and water valve replacements. The 2021 capital expenditures total $420,500. The Water Fund’s anticipated cash balance for the fund at the end of 2020 is 267,887. Sewer In recent years, the sewer fund has mostly operated at a loss. Non-operating revenues however, have consistently offset the operating losses. This has resulted in a positive operating cash flow for the fund. The single largest expense for the sewer fund is the Met Council disposal charges. The five years have seen increases in the amounts of $37,410 (9.5%), $41,276 (9.6%), $82,147 (17.4%), $64,035 (11.5%) and $81,200 (13.1%) respectively. This is a 77.6% increase in five years. As has been discussed with the Council during previous budget processes, heavy rains and high water tables increase the flow through the MCES lift stations and increase our disposal charges. The total operating expenditure budget is increasing by $112,700 (5.91%) The major increases are the previously mentioned MCES charges ($81,200). The operating transfer of $115,000 is to cover the sewer improvements that were part of the Casco Point project and will continue for another four years. Upcoming capital expenditures can be covered by the fund’s current cash balances. Projects identified in the CIP for 2021 include: Annual sewer rehabilitation ($290,000), additional generators ($75,000), grinder station ($20,000), lift station updates ($120,000), additional road project adjustments ($63,000), sewer meter installation into Long Lake, and force main replacement for Tonkawa ($225,000), for a total of $833,000. The anticipated cash balance for the fund at the end of 2020 is $2,019,555. Stormwater The Stormwater Fund is for the most part project based. Operating expenditures are mainly limited to engineering associated with NPDES, SWPPP and other state and federal requirements. Public Works time and materials spent on culvert cleaning/replacement are also charged to this fund. The purpose of this fund is to collect money for the larger Stormwater projects that City of Orono - 2021 Budget Page 5 will be required in the future. The attached five-year projection assumes a 10% annual increase. Potential CIP projects in 2021 include: Casco Circle ($49,380), Park Lane & Elm Street ($26,190), Navarre West Road and East Roads ($88,855), Eileen Street ($7,725), manhole rebuilds ($35,000), Casco Point Park Outlet ($58,000), South Casco Point Road sump ($36,000), Casco Point Park Bioretention basin ($55,000), Fagerness Point Road drainage system ($80,000), and Storm Sewer Improvements ($50,000). The capital expenditures total $536,150. The anticipated cash balance for the fund at the end of 2020 is $1,433,719. Recycling The recycling funds major expenditure line is for contracted recycling charges. The current contract with Waste Management is increasing 4%. The Recycled Materials has weakened in the past few years since 2018. The full time wages that are charged to the fund represent 10% of the City Clerks wages. The anticipated cash balance for the fund at the end of 2020 is $70,382. Cable The Cable funds projected revenues are based on current subscriber information and rates. The line item for Internet/Other communications covers the costs associated with streaming and online access of council meetings. It has been increased to pay for the increased cost of our fiber internet connection. Revenue for the fund is in the from franchise fees that are set by the City’s franchise agreement with Mediacom. The current cash balance of the fund is $169,102. Construction Funds The City does not adopt formal budgets for construction funds. Possible projects for these funds can be found in the CIP. The CIP is a planning tool only; approval of the CIP not approve or authorize any purchases. The projects identified in it will require individual approval from the Council before they can be started. Capital Improvement Plan In 2012 the City formally adopted a Capital Improvement Plan (CIP). In order to keep the CIP useful, it is updated on a yearly basis. An updated copy of the CIP for 2021 is included with this memo and will be approved tonight. The CIP is a planning document only and approval of the CIP does not constitute approval of any expenditures. There are two main focusses of the CIP. First is the CIP items that have been identified as needs by staff. The Second is available funding for the CIP. Many funding sources are not adequate to fund the CIP items so funding will need to be secured prior to moving forward with the projects. The funding for the Street CIP includes an additional $300,000 in tax levy starting in 2023. In that year, the levy needed for debt service will decrease by $300,000 and by transferring the levy to the CIP, there will be adequate funding for roads. This increased levy for the CIP will require Council approval at that time. City of Orono - 2021 Budget Page 6 City of Orono Fund and Department Descriptions City Budgets can be confusing due to the number of funds and departments involved. The following descriptions of the General Fund departments and the other funds maintained by the City of Orono is designed to give the user of this document a basic understanding of the purpose of each department and fund. General Fund – This is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. The General Fund budget is made up of the following departmental budgets: • Mayor and Council – The City Council oversees the policies and procedures that govern the City in promoting the health, safety, and general welfare of the citizens of Orono. This budget includes the wages and employment taxes of the Council; memberships in the League of Minnesota Cities, Metro Cities, and the Suburban Rate Authority. • Administration – The Administration Department includes the City Administrator who is responsible for meeting statutory and legal obligations, implementing policy established by the City Council and ensuring the successful management of all city operations. The City Clerk and the rest of the administrative staff perform various functions such as: customer service, permits and licensing, elections, record management, and general administrative duties. • Elections – The Elections Department administers all federal, state, county, and municipal elections held in the city. Elections are held in even numbered years. • Assessing – The Assessing Department performs assessing services in accordance with the requirements of the State of Minnesota. The City maintains a contract with Hennepin County for assessing services. • Finance – The Finance Department oversees the City’s financial operations, risk management, and employee benefits. It is responsible for preparing the budget and Comprehensive Annual Financial Report in accordance with generally accepted accounting principles. • Legal – The Legal Department includes professional representation and opinion on city services and operations, prosecution services, and jail charges. The City maintains renewable contracts with both a civil law firm and a prosecutor for legal services. • Central Services – The Central Services provides for those operating expenses that encompass all General Fund city departments with the exception of the Police Department. Expenditures include supplies, utilities, municipal insurance coverage, janitorial, and building maintenance. • Human Services – The Human Services Department contracts with area organizations to provide for valuable services for the community. Current contracts are with The Gillespie Center for senior services and Orono Community Education for summer recreation programs. City of Orono - 2021 Budget Page 7 • Police – The Police Department provides for the public safety within Orono and surrounding communities. The City has renewable contracts with the Cities of Spring Park, Minnetonka Beach, and Mound. Due to the contractual agreements the department operates as a “cost center” and is the only General Fund department that has expenditures for costs that are normally covered by Central Services. This budget is also the only one within the General Fund that includes capital expenditures. • Fire – the expenditures of the Fire Department are comprised of renewable contracts with the Cities of Long Lake and Wayzata for fire suppression services. • Planning and Zoning – The Planning and Zoning Department oversees the development and redevelopment within the City, including building inspections, in accordance with established policies and guidelines. The policies and guidelines have been created to maintain the health, safety, and welfare of the public, as well as maintaining the aesthetics of the community. • Engineering – The Engineering Department provides professional representation and opinion on city services and operations. This function is provided by a local engineering firm that is retained on a contract basis. • Street Maintenance – The Street Department provides for the maintenance of all city streets to ensure a safe and drivable condition. Standard maintenance includes, patching, snow plowing, and striping. • Parks and Recreation – The Parks and Recreation Department provides for the maintenance of the City’s parks. • Golf Course – The Golf Course provides golfing opportunities for both residents and visitors to the City. During the winter months the course is open to sledding. • Brush Site – The Brush Site is open from April through November offering residents (no charge), non-residents and contractors (at a charge) a place to bring brush and tree disposal. • Special Services – The Special Services Department is used to account for expenditures that benefit a single property or organization. An example of this type of expenditure is the legal and engineering fees incurred as the result of a request for a variance, a subdivision application, or other major development. Other expenditures that are included in this department are requests for additional police security or traffic control related to an event. The costs recorded in this department are offset by revenues received for the services provided. • Special Projects and Contingencies – The Special Projects and Contingencies Department budget include the annual operating transfer to the Improvement & Equipment Outlay Fund for the purchase of capital equipment for General Fund Departments other than for the Police Department. The department also includes an amount for any unforeseen circumstances that produce additional expenses or revenue shortfalls. City of Orono - 2021 Budget Page 8 Special Revenue Funds – Special Revenue Funds provide for funding of expenditures that are primarily funded by a revenue source that is not part of the general tax levy and has a restricted use. • Park Fund – The Park Fund’s major revenue source are Park Dedication Fees collected as part of a subdivision or major development process. By state law fees received must be placed in a special fund and can be used for specific purposes. Park dedication fees must be used only for the acquisition and development or improvement of parks, recreational facilities, playgrounds, trails, wetlands, or open space based on the approved park systems plan. • Drug and Felony Forfeiture Fund – The Drug and Felony Forfeiture Fund’s major sources of revenue are the sale of DWI forfeited vehicles and revenue received from drug enforcement activities. The funds are restricted for law enforcement activities related to alcohol and drug enforcement. • Senior Housing TIF Fund – The Senior Housing TIF Fund was created to provide housing opportunities for seniors within the City. Its major revenue source is the additional property taxes collected on the captured value of the property. 90% of the funds collected are forwarded to the developer to help pay for the bonds associated with the project. Debt Service Funds – Debt Service Funds are used to pay for debt service on the City’s outstanding bonds. Funding for debt service funds can include: property taxes; special assessments, debt support from other funds; or a combination of the three. • 2010 General Obligation Bonds – The 2010 bonds were issued for multiple purposes: to refund the 2003 HRA Public Facility Bonds (Navarre Fire); to fund the reconstruction of Old Crystal Bay Road; and to fund the reclamation of Orono Orchard Road. The refunding portion of the bond issue saved the City an estimated $47,125. Funding is a combination of property taxes and Municipal State Aid money from the State of Minnesota. • 2014 General Obligation Bonds – The 2014 bonds were issued for multiple purposes: to refund the 2005 HRA Public Project Revenue Bonds (Big Island); to fund water infrastructure improvements including a new well; and to fund the construction of the Public Safety Garage. Funding is a combination of property taxes; water revenues; and a transfer from the General Fund related to revenues from the Mound police service contract. • 2016 General Obligation Refunding Bonds – The 2016 bonds were issued to refund the 2008 General Obligation Street Reconstruction Bonds. The refunding of the 2008 bonds resulted in interest savings of $220,832. City of Orono - 2021 Budget Page 9 Capital Project Funds – Capital project funds are used to account for the financing of street projects, equipment replacement, public safety equipment, and facility rehabilitation or renovation. Revenue sources are provided mainly through transfers, special assessments, and bond sales. • Municipal State Aid (MSA) Fund – The MSA Fund provides for the improvement of designated state aid streets which are funded by State of Minnesota funds. • Improvement & Equipment Outlay Fund – The Improvement & Equipment Outlay Fund provides for the purchase of equipment and the construction or renovation of City facilities. • Building Fund – The building fund is being established in 2021 to provide for the development, renovation and repairs of City buildings. • Permanent Improvement Revolving (PIR) Fund – The PIR Fund is designed to provide temporary financing of projects until permanent financing is available. • Community Investment Fund – The Community Investment Fund provides funding for projects of citywide importance that have no other funding source. Enterprise Funds – Enterprise Funds are used to account for the business type activities of the City. These include the following funds: Water, Sewer, Cable TV, Stormwater, and Recycling. • Water – The Water Fund is used to account for the City’s utility. The system consists of two water towers, three wells, 18 miles of water mains, and serves 1,087 customers. • Sewer – The Sewer Fund is used to account for the City’s sewer utility. The system consists of 47 miles of sewer lines and 46 pumping stations, and serves 2,287 customers. The largest expense for the fund is a charge from the Metropolitan Council Environmental Services to pay for their collector lines and the treatment of the wastewater. • Cable TV – The Cable TV Fund was created to account for revenues collected as part of the franchise agreement between the City and Mediacom. • Stormwater – The Stormwater Fund is used to account for the City’s stormwater utility. The system consists of culverts, collection ponds, and drainage ways. The utility was created in order to provide funding needed to comply with State and Federal mandates regarding stormwater. All properties within the city are charged a stormwater fee. • Recycling – the city contracts with Waste Management to provide for curbside recycling service. Funding is provided through a combination of a grant from Hennepin County and user fees. In addition the city coordinates a spring cleanup day to assist residents who have materials unsuitable for recycling or regular waste service. City of Orono - 2021 Budget Page 10 Internal Service Funds – Internal Service Funds are used to track revenue and expense shifts between departments. These include the following funds: Insurance, Fleet Management, Compensated Absences, and Information Technology. • Insurance - The Insurance Fund was created to account for total insurance revenue and expenses between all departments. • Fleet Management – The Fleet Management Fund is used to account for total expenses related to city vehicles. Each fund pays into this fund to cover their appropriate portions of expenses. • Compensated Absences – The Compensated Absences Fund is used to account the liability owed to employees for compensated absences such as Sick, Vacation, Overtime and Comp-Time. • Information Technology (IT) - The IT Fund is used to account for total expenses related to software and technology. Each fund pays into this fund to cover their appropriate portions of expenses. City of Orono - 2021 Budget Page 11 City of Orono - 2021 Budget Page 12 CITY OF ORONO RESOLUTION OF THE CITY COUNCIL NO. _________________ A RESOLUTION TO ADOPT THE FINAL 2021 GENERAL FUND BUDGET BE IT RESOLVED, by the City Council of the City of Orono, County of Hennepin, Minnesota that the final 2021 General Fund budget is determined to be as follows: ESTIMATED REVENUES Taxes - General $4,936,140 Licenses and Permits 532,200 Intergovernmental 268,000 Charges for Services 3,157,460 Fines and Forfeits 70,100 Interest Income 70,500 Recreation Fees 188,000 Miscellaneous 38,100 TOTAL $9,260,500 APPROPRIATED EXPENDITURES General Government $1,455,850 Public Safety 5,868,700 Street Maintenance 641,100 Parks and Recreation 525,850 Engineering - Unallocated 20,000 Reimbursable Expenditures 129,000 Special Projects and Contingency 30,000 Capital Outlay 190,000 Transfers to Other Funds 400,000 TOTAL $9,260,500 Adopted by the City Council of the City of Orono, Minnesota at a regular meeting held December 7, 2020. ATTEST: ____________________________________ ____________________________________ Anna Carlson, City Clerk Dennis Walsh, Mayor City of Orono - 2021 Budget Page 13 CITY OF ORONO RESOLUTION OF THE CITY COUNCIL NO. _________________ A RESOLUTION ADOPTING THE FINAL 2021 PROPERTY TAX LEVY BE IT RESOLVED, by the City Council of the City of Orono, County of Hennepin, Minnesota, that the following sums be levied for the current year, collectible in 2021 upon the taxable property in the City of Orono, for the following purposes: General Fund - Operating $4,921,140 Building Fund 310,000 Pavement Management Levy 750,000 Parks 50,000 G.O. Improvement Bond 2014 166,700 G.O. Improvement Bond 2016 412,780 TOTAL ALL LEVIES $6,610,620 The City Clerk is hereby instructed to transmit a certified copy of this resolution to the County Auditor of Hennepin County, Minnesota. Adopted by the City Council of the City of Orono, Minnesota at a regular meeting held December 7, 2020. ATTEST: ______________________________ ______________________________ Anna Carlson, City Clerk Dennis Walsh, Mayor City of Orono - 2021 Budget Page 14 CITY OF ORONO RESOLUTION OF THE CITY COUNCIL NO. _________________ A RESOLUTION TO ADOPT THE 2021 SPECIAL REVENUE FUND BUDGETS BE IT RESOLVED, by the City Council of the City of Orono, County of Hennepin, Minnesota that the 2021 Special Revenue Fund budgets are determined to be as follows: Drug/Felony Estimated Revenues Park Forfeiture TIF Taxes – General $ - - $ - - 77,000 Interest Income 5,000 1,000 - - User Fees / Loan Payment - - 25,000 - - Park Dedication Fees 5,500 - - - - Intergovernmental - - - - - - Transfers from other Funds - - - - - - Use of Fund Balance 329,000 - - - - Total Revenues $ 339,500 $ 26,000 $ 77,000 Appropriated Expenditures General Government $ - - $ - - $ 70,000 Public Safety - - 20,000 - - Streets - - - - - - Parks & Recreation 339,500 - - - - Transfers to Other Funds - - - - - - Increase to Fund Balance - - 6,000 7,000 Total Expenditures $ 339,500 $ 26,000 $ 77,000 Adopted by the City Council of the City of Orono, Minnesota at a regular meeting held December 7, 2020. ATTEST: ____________________________________ ____________________________________ Anna Carlson, City Clerk Dennis Walsh, Mayor City of Orono - 2021 Budget Page 15 CITY OF ORONO RESOLUTION OF THE CITY COUNCIL NO. _________________ A RESOLUTION TO ADOPT THE 2021 ENTERPRISE FUND BUDGETS BE IT RESOLVED, by the City Council of the City of Orono, County of Hennepin, Minnesota that the 2021 Enterprise Fund budgets are determined to be as follows: Estimated Revenues Water Sewer Recycling Stormwater Cable Charges for Service $1,134,237 $1,803,429 $205,632 $661,799 $76,000 Interest Income 10,000 35,000 -- 15,000 1,000 Non-Operating -- 20,000 25,000 -- -- Total Revenues $1,144,237 $1,858,429 $230,632 $676,799 $ 77,000 Appropriated Expenditures Operating Expenses $911,150 $1,791,200 $216,700 $373,000 $71,200 Non-Operating Expenses Interest Expense 22,100 Debt Service 80,000 Transfer to Other Funds 55,000 110,000 -- -- -- Total Expenditures $1,068,250 $1,901,200 $216,700 $373,000 $73,700 Adopted by the City Council of the City of Orono, Minnesota at a regular meeting held December 7, 2020. ATTEST: ____________________________________ ____________________________________ Anna Carlson, City Clerk Dennis Walsh, Mayor City of Orono - 2021 Budget Page 16 City of Orono Local Levy 2021 Over / Under 2020 2020 2021 Amount Percent TAX LEVIES General Fund $4,679,000 $4,921,140 $242,140 5.18% Building Fund 0 310,000 310,000 N/A Pavement Management 617,450 750,000 132,550 21.47% Parks 0 50,000 50,000 N/A GO Improvement 2010 132,725 0 -132,725 -100.00% GO Improvement 2014 165,300 166,700 1,400 0.85% GO Improvement 2016 412,975 412,780 -195 -0.05% Total Local Tax Capacity Rate $6,007,450 $6,610,620 $603,170 10.04% City of Orono - 2021 Budget Page 17 City of Orono - 2021 Budget Page 18 Ac t u a l Ac t u a l Ac t u a l Actual 20 2 0 20 2 0 20 2 0 2020 Va l u e $ 2 5 0 , 0 0 0 $ 2 5 0 , 0 0 0 $ 5 0 0 , 0 0 0 $ 5 0 0 , 0 0 0 $ 1 , 0 0 0 , 0 0 0 $ 1 , 0 0 0 , 0 0 0 $ 2 , 0 0 0 , 0 0 0 $ 2 , 0 0 0 , 0 0 0 MV E $ 1 4 , 7 4 0 $ 1 4 , 7 4 0 $0 $0 $0 Ta x V a l u e $ 2 3 5 , 2 6 0 $ 2 3 5 , 2 6 0 $ 5 0 0 , 0 0 0 $ 5 0 0 , 0 0 0 $ 1 , 0 0 0 , 0 0 0 $ 1 , 0 0 0 , 0 0 0 $ 2 , 0 0 0 , 0 0 0 $ 2 , 0 0 0 , 0 0 0 10 . 1 6 % 10 . 1 6 % 10 . 1 6 % 10.16% 2, 3 5 3 2 , 3 5 3 5 , 0 0 0 5 , 0 0 0 1 1 , 2 5 0 1 1 , 2 5 0 2 3 , 7 5 0 2 3 , 7 5 0 16 . 5 1 2 % 1 6 . 7 6 5 % 1 6 . 5 1 2 % 1 6 . 7 6 5 % 1 6 . 5 1 2 % 1 6 . 7 6 5 % 1 6 . 5 1 2 % 1 6 . 7 6 5 % $3 8 8 . 4 6 $ 3 9 4 . 4 1 $ 8 2 5 . 6 0 $ 8 3 8 . 2 5 $ 1 , 8 5 7 . 6 0 $ 1 , 8 8 6 . 0 6 $ 3 , 9 2 1 . 6 0 $ 3 , 9 8 1 . 6 9 $5 . 9 5 $1 2 . 6 5 $2 8 . 4 6 $60.09 1. 5 3 % 1. 5 3 % 1. 5 3 % 1.53% * T a x C a p a c i t y ( n e t ) = 1 % o f f i r s t $ 5 0 0 , 0 0 0 m a r k e t v a l u e , p l u s 1 . 2 5 % o f a l l v a l u e o v e r $ 5 0 0 , 0 0 0 ** A s s u m e s n o c h a n g e i n v a l u e Ta x C a p a c i t y R a t e Ne t C i t y T a x $ I n c r e a s e f r o m 2 0 2 0 % I n c r e a s e f r o m 2 0 2 0 20 2 1 20 2 1 20 2 1 2021 Le v y I n c r e a s e Ta x C a p a c i t y ( N e t ) * Ef f e c t o f 2 0 2 1 T a x L e v y & B u d g e t o n R e s i d e n t i a l P r o p e r t i e s No C h a n g e i n V a l u e Es t i m a t e d E s t i m a t e d E s ti m a t e d E s t i m a t e d Ci t y of Or o n o - 20 2 1 Bu d g e t Page 19 Ac t u a l Ac t u a l Ac t u a l Actual 20 2 0 20 2 0 20 2 0 2020 Va l u e $ 2 5 0 , 0 0 0 $ 2 3 7 , 5 0 0 $ 5 0 0 , 0 0 0 $ 4 7 5 , 0 0 0 $ 1 , 0 0 0 , 0 0 0 $ 9 5 0 , 0 0 0 $ 2 , 0 0 0 , 0 0 0 $ 1 , 9 0 0 , 0 0 0 MV E $ 1 4 , 7 4 0 $ 1 5 , 8 6 5 $0 $0 $0 Ta x V a l u e $ 2 3 5 , 2 6 0 $ 2 2 1 , 6 3 5 $ 5 0 0 , 0 0 0 $ 4 7 5 , 0 0 0 $ 1 , 0 0 0 , 0 0 0 $ 9 5 0 , 0 0 0 $ 2 , 0 0 0 , 0 0 0 $ 1 , 9 0 0 , 0 0 0 4. 4 9 % 4. 4 9 % 4. 4 9 % 4.49% 2, 3 5 3 2 , 2 1 6 5 , 0 0 0 4 , 6 8 8 1 1 , 2 5 0 1 0 , 6 2 5 2 3 , 7 5 0 2 2 , 5 0 0 16 . 5 1 2 % 1 6 . 7 6 5 % 1 6 . 5 1 2 % 1 6 . 7 6 5 % 1 6 . 5 1 2 % 1 6 . 7 6 5 % 1 6 . 5 1 2 % 1 6 . 7 6 5 % $3 8 8 . 4 6 $ 3 7 1 . 5 7 $ 8 2 5 . 6 0 $ 7 8 5 . 8 6 $ 1 , 8 5 7 . 6 0 $ 1 , 7 8 1 . 2 8 $ 3 , 9 2 1 . 6 0 $ 3 , 7 7 2 . 1 3 -$ 1 6 . 8 9 -$ 3 9 . 7 4 -$ 7 6 . 3 2 -$149.48 -4 . 3 5 % -4 . 8 1 % -4 . 1 1 % -3.81% * T a x C a p a c i t y ( n e t ) = 1 % o f f i r s t $ 5 0 0 , 0 0 0 m a r k e t v a l u e , p l u s 1 . 2 5 % o f a l l v a l u e o v e r $ 5 0 0 , 0 0 0 ** A s s u m e s a 5 . 0 % d e c r e a s e i n v a l u e % I n c r e a s e f r o m 2 0 2 0 $ I n c r e a s e f r o m 2 0 2 0 Ef f e c t o f 2 0 2 1 T a x L e v y & B u d g e t o n R e s i d e n t i a l P r o p e r t i e s 5. 0 % D e c r e a s e i n V a l u e Ta x C a p a c i t y ( N e t ) * Ta x C a p a c i t y R a t e Ne t C i t y T a x Es t i m a t e d 20 2 1 Le v y I n c r e a s e Es t i m a t e d 20 2 1 Es t i m a t e d 20 2 1 Estimated 2021 Ci t y of Or o n o - 20 2 1 Bu d g e t Page 20 Ac t u a l Ac t u a l Ac t u a l Actual 20 2 0 20 2 0 20 2 0 2020 Va l u e $ 2 5 0 , 0 0 0 $ 2 6 2 , 5 0 0 $ 5 0 0 , 0 0 0 $ 5 2 5 , 0 0 0 $ 1 , 0 0 0 , 0 0 0 $ 1 , 0 5 0 , 0 0 0 $ 2 , 0 0 0 , 0 0 0 $ 2 , 1 0 0 , 0 0 0 MV E $ 1 4 , 7 4 0 $ 1 3 , 6 1 5 $0 $0 $0 Ta x V a l u e $ 2 3 5 , 2 6 0 $ 2 4 8 , 8 8 5 $ 5 0 0 , 0 0 0 $ 5 2 5 , 0 0 0 $ 1 , 0 0 0 , 0 0 0 $ 1 , 0 5 0 , 0 0 0 $ 2 , 0 0 0 , 0 0 0 $ 2 , 1 0 0 , 0 0 0 4. 4 9 % 4. 4 9 % 4. 4 9 % 4.49% 2, 3 5 3 2 , 4 8 9 5 , 0 0 0 5 , 3 1 3 1 1 , 2 5 0 1 1 , 8 7 5 2 3 , 7 5 0 2 5 , 0 0 0 16 . 5 1 2 % 1 6 . 7 6 5 % 1 6 . 5 1 2 % 1 6 . 7 6 5 % 1 6 . 5 1 2 % 1 6 . 7 6 5 % 1 6 . 5 1 2 % 1 6 . 7 6 5 % $3 8 8 . 4 6 $ 4 1 7 . 2 6 $ 8 2 5 . 6 0 $ 8 9 0 . 6 4 $ 1 , 8 5 7 . 6 0 $ 1 , 9 9 0 . 8 4 $ 3 , 9 2 1 . 6 0 $ 4 , 1 9 1 . 2 5 $2 8 . 7 9 $6 5 . 0 4 $1 3 3 . 2 4 $269.65 7. 4 1 % 7. 8 8 % 7. 1 7 % 6.88% * T a x C a p a c i t y ( n e t ) = 1 % o f f i r s t $ 5 0 0 , 0 0 0 m a r k e t v a l u e , p l u s 1 . 2 5 % o f a l l v a l u e o v e r $ 5 0 0 , 0 0 0 ** A s s u m e s a 5 . 0 % I n c r e a s e i n v a l u e Ta x C a p a c i t y R a t e Ne t C i t y T a x $ I n c r e a s e f r o m 2 0 2 0 % I n c r e a s e f r o m 2 0 2 0 20 2 1 20 2 1 20 2 1 2021 Le v y I n c r e a s e Ta x C a p a c i t y ( N e t ) * Ef f e c t o f 2 0 2 1 T a x L e v y & B u d g e t o n R e s i d e n t i a l P r o p e r t i e s 5. 0 % I n c r e a s e i n V a l u e Es t i m a t e d E s t i m a t e d E s t i m a t e d E s t i m a t e d Ci t y of Or o n o - 20 2 1 Bu d g e t Page 21 Ci t y of Or o n o - 20 2 1 Bu d g e t Page 22 Revenue Source 2019 Actual 2020 Budget 2021 Budget Increase (Decrease) Percentage Increase (Decrease) Current Ad Valorem Taxes 4,286,605              4,679,000       4,921,140       242,140           5.2% Delinquent Ad Valorem Taxes 37,691                   10,000             15,000             5,000                50.0% Fiscal Disparities 37,475                   ‐                   ‐                   ‐                    N/A Personal Property Tax 20,812                   ‐                   ‐                   ‐                    N/A Forfeited Tax Sale Apportionmt ‐                          ‐                   ‐                   ‐                    N/A Rent Credit ‐                          ‐                   ‐                   ‐                    N/A Penalties and Interest‐Taxes 1,454                      ‐                   ‐                   ‐                    N/A Property Taxes 4,384,038             4,689,000       4,936,140       247,140           5.3% Beer & Liquor Licenses 6,625                      7,100               7,100               ‐                    0.0% Cigarette Licenses 875                         500                   500                   ‐                    0.0% Garbage Haulers Licenses 990                         1,100               1,100               ‐                    0.0% Other Business License/Permit 9,186                      10,000             10,000             ‐                    0.0% Rental Licenses 4,340                      4,000               4,000               ‐                    0.0% Dog Licenses 1,150                      ‐                   ‐                   ‐                    N/A Total Licenses 23,166                   22,700             22,700             ‐                    0.0% Building Permits 543,204                 425,000           425,000           ‐                    0.0% Zoning Permit 1,833                      1,500               1,500               ‐                    0.0% Mechanical/Septic/Other 88,835                   55,000             55,000             ‐                    0.0% Plumbing Permit 46,154                   28,000             28,000             ‐                    0.0% Total Permits 680,026                 509,500          509,500          ‐                    0.0% Federal Grant‐other ‐                          ‐                   ‐                   ‐                    N/A Market Value Credit 420                         ‐                   ‐                   ‐                    N/A Police State Aid 241,201                 230,000           230,000           ‐                    0.0% Police Training Reimbursement 33,605                   23,000             23,000             ‐                    0.0% PERA State Aid 7,219                      ‐                   ‐                   ‐                    N/A State Grant‐other 144,308                 145,000           15,000             (130,000)           ‐89.7% Grants/Aids from Other Govts 5,000                      ‐                   ‐                   ‐                    N/A Total Intergovernmental 431,753                 398,000          268,000          (130,000)          ‐32.7% Administrative Charges for Svc 276,650                 283,500           262,500           (21,000)             ‐7.4% General Taxable Sales/Service 1,117                      2,000               2,000               ‐                    0.0% Assessments searches 100                         200                   100                   (100)                  ‐50.0% Zoning Disclosure 50                           ‐                   ‐                   ‐                    N/A Plan Check/Site Exam Fees 328,356                 200,000           200,000           ‐                    0.0% Cond Use‐Variance‐Dev Fees 23,210                   19,000             19,000             ‐                    0.0% Engineering & Legal Fees 79,597                   45,000             45,000             ‐                    0.0% Bldg Permits‐mail in fees ‐                          ‐                   ‐                   ‐                    N/A On‐site Septic Program fees 45,540                   45,800             46,300             500                   1.1% Park Reservations 270                         ‐                   ‐                   ‐                    N/A Off Leash Annual Pass ‐                          15,000             ‐                   (15,000)            ‐100.0% Coop Agreement‐public works 7,023                      1,500               1,500               ‐                    0.0% InterDepartmental Services‐PW ‐                          ‐                   ‐                   ‐                    N/A Brush Site Fees 695                         800                   1,000               200                   25.0% Total Gen Govt Service Charges 762,608                 612,800          577,400          (35,400)             ‐5.8% Coop Agreement‐inspection 41,330                   15,000             25,000             10,000             66.7% Coop Agreement‐police 2,352,652              2,428,000       2,453,060       25,060             1.0% Police Special Services 132,188                 100,000           100,000           ‐                    0.0% False Alarm Fees 800                         1,000               1,000               ‐                    0.0% Police Reports 2,016                      900                   1,000               100                   11.1% Police Reserve Receipts 1,050                      ‐                   ‐                   ‐                    N/A Explorers program 697                         ‐                   ‐                   ‐                    N/A Total Public Safety Service Charges 2,530,733             2,544,900       2,580,060       35,160             1.4% Admin Citations 11,317                   ‐                   ‐                   ‐                    N/A Court Fines 74,493                   75,000             70,000             (5,000)              ‐6.7% Drug Task Force ‐                          ‐                   ‐                   ‐                    N/A Dog Impound Fees ‐                          100                   100                   ‐                    0.0% Total Fines and Forfeits 85,809                   75,100             70,100             (5,000)              ‐6.7% Interest on investments 96,555                   76,600             70,000             (6,600)              ‐8.6% Interest‐NOW account 448                         500                   500                   ‐                    0.0% Total Investment Revenue 97,003                   77,100             70,500             (6,600)               ‐8.6% City of Orono 2021 Revenue Budget Summary City of Orono - 2021 Budget Page 23 Revenue Source 2019 Actual 2020 Budget 2021 Budget Increase (Decrease) Percentage Increase (Decrease) City of Orono 2021 Revenue Budget Summary Green Fees 113,825                 110,000           120,000           10,000             9.1% Rental‐Golf carts & Club 48,574                   48,000             50,000             2,000                4.2% Beer Sales 9,433                      10,000             10,000             ‐                    0.0% Pop Sales ‐                          ‐                   ‐                   ‐                    N/A Concessions‐taxable 5,632                      5,000               5,000               ‐                    0.0% Golf Ball Sales 1,973                      1,000               1,000               ‐                    0.0% Pro Shop‐taxable 1,247                      2,000               2,000               ‐                    0.0% Pro Shop‐nontaxable 137                         ‐                   ‐                   ‐                    N/A Other Golf Course Receipts ‐                          ‐                   ‐                   ‐                    N/A Cash Over/Short 11                           ‐                   ‐                   ‐                    N/A Total Golf Course Receipts 180,831                 176,000          188,000          12,000             6.8% Utility Penalties 2,250                      2,000               2,000               ‐                    0.0% Miscellaneous Revenue 11,156                   4,700               4,700               ‐                    0.0% Convenience Fee 1,758                      ‐                   ‐                   ‐                    N/A Rent Income 5,850                      5,400               5,400               ‐                    0.0% Contributions & donations 3,855                      ‐                   ‐                   ‐                    N/A Refunds & Reimbursements 5,087                      3,000               3,000               ‐                    0.0% Sale of Equipment 41,105                   20,000             20,000             ‐                    0.0% Cash Over/Short (1)                            ‐                   ‐                   ‐                    N/A Filing fees‐elections/plats ‐                          3,000               3,000               ‐                    0.0% Total Miscellaneous Revenue 71,061                   38,100             38,100             ‐                    0.0% Total Revenue 9,247,029             9,143,200       9,260,500       117,300           1.3% City of Orono - 2021 Budget Page 24 Taxes 53% Permits 6% Fines and  Foreits 1% Other  Revenue 1% Public Safety  Charges 28% Intergovernmental  Revenue 3% General  Govt Service  Charges 6% Recreation   Fees 2% 2021 General Fund Revenue City of Orono - 2021 Budget Page 25 City of Orono - 2021 Budget Page 26 2019 Actual 2020 Budget 2021 Recommended Dollar Increase  (Decrease) % Increase  (Decrease) Personal Services 5,374,829           5,765,900           5,821,200           55,300                 0.96% Supplies & Maintenance 659,238              611,300              628,800              17,500                 2.86% Insurances 122,810              160,300              160,300              ‐                       0.00% Professional Services 1,250,098           1,478,600           1,634,300           155,700              10.53% Other Expenses 477,743              499,000              382,800              (116,200)             ‐23.29% Capital Outlay 242,727              185,000              190,000              5,000                   2.70% Transfers to Other Funds 1,121,339           400,000              400,000              ‐                       0.00% Contingencies 33,405                 30,000                 30,000                 ‐                       0% Purchases for Resale 12,338                 13,100                 13,100                 ‐                       0.00% Total 9,294,527           9,143,200           9,260,500           117,300              1.28% 2021 General Fund Budget Major Expenditure Categories City of Orono City of Orono - 2021 Budget Page 27 Personal   Services 63% Supplies &  Maintenance 7% Insurances 2% Other Expenses 4% Capital Outlay 2%Transfers  to  Other Funds 4% Professional  Services 18% 2021 General Fund Major Expenditure Categories City of Orono - 2021 Budget Page 28 2019 Actual 2020 Budget 2021 Recommended Dollar Increase  (Decrease) % Increase  (Decrease) Mayor & Council 33,948                 34,500                 43,300                 8,800                   25.51% Administration 394,942               426,800               429,100               2,300                   0.54% Elections 2,890                   69,500                 31,400                 (38,100)                ‐54.82% Assessing 194,750               203,000               210,000               7,000                   3.45% Finance 239,686               276,100               263,550               (12,550)                ‐4.55% Law/Legal Services 105,955               134,000               133,000               (1,000)                  ‐0.75% Central Services 290,221               315,100               333,100               18,000                 5.71% Human Services 9,500                   12,400                 12,400                 ‐                        0.00% Police 4,611,450            4,873,800            4,890,400            16,600                 0.34% Fire Protection Services 402,192               433,900               435,000               1,100                   0.25% Building & Zoning 671,394               713,300               733,300               20,000                 2.80% Engineering 23,588                 20,000                 20,000                 ‐                        0.00% Street Maintenance 582,061               608,800               641,100               32,300                 5.31% Parks 189,253               230,000               279,150               49,150                 21.37% Golf Course 247,153               220,400               233,600               13,200                 5.99% Brush Site 5,820                   13,100                 13,100                 ‐                        0.00% Special Services 134,981               128,500               129,000               500                       0.39% General Fund ‐ Special Projects‐Conting 33,405                 30,000                 30,000                  ‐                        0.00% Transfers to Other Funds 1,121,339            400,000               400,000               ‐                        0.00% Total General Fund Expenditures 9,294,527           9,143,200           9,260,500           117,300               1.28% City of Orono 2021 General Fund Budget Departmental Budgets City of Orono - 2021 Budget Page 29 CITY COUNCIL 0% CENTRAL SERVICES 4% PROFESSIONAL  SERVICES 4% POLICE  53% FIRE 5% BUILDING &  ZONING 8% ADMINISTRATION 5%FINANCE 3% STREET  MAINTENANCE 7% GOLF COURSE 2% OTHER 1% SPECIAL SERVICES 1% PARKS 3% TRANSFERS TO  OTHER FUNDS 4% 2021 General Fund Budget Department Budgets City of Orono - 2021 Budget Page 30 Ci t y o f O r o n o Co m b i n e d S u m m a r y o f R e v e n u e s & O t h e r F i n a n c i n g S o u r c e s Fo r 2 0 2 1 Ge n e r a l F u n d 4, 9 3 6 , 1 4 0 5 3 2 , 2 0 0 26 8 , 0 0 0 3 , 1 5 7 , 4 6 0 18 8 , 0 0 0 70 , 1 0 0 70 , 5 0 0 38,100 - 9,260,500 Sp e c i a l R e v e n u e F u n d s Pa r k - - - - - - 5 , 0 0 0 5,500 - 10,500 Dr u g & F e l o n y F o r f i e t u r e - - - - - - - 1 , 0 0 0 25,000 - 26,000 Se n i o r H o u s i n g - T I F 77 , 0 0 0 - - - - - - - - - 77,000 Ca p i t a l P r o j e c t s F u n d s PI R F u n d - - - - - - - 5 , 0 0 0 - - 5,000 IE O F u n d - - - - - - - 5 , 0 0 0 5,000 3 0 0 , 0 0 0 310,000 Bu i l d i n g F u n d 31 0 , 0 0 0 - - - - - - - - - 310,000 M S A F u n d - - - 6 0 0 , 0 0 0 - - - - - - 600,000 PM P F u n d 75 0 , 0 0 0 - - - - - - - - - 750,000 Co m m u n i t y I n v e s t m e n t - - - - - - - 5 , 0 0 0 - - 5,000 De b t S e r v i c e F u n d s 20 1 0 I m p r o v e m e n t B o n d s - - - - - - - - - - - 20 1 4 I m p r o v e m e n t B o n d s 16 6 , 7 0 0 - - 1 4 1 , 3 8 8 - - - 1 , 5 0 0 - 1 0 0 , 0 0 0 409,588 20 1 6 R e f u n d i n g B o n d s 41 2 , 7 8 0 - - - - - - 5 , 0 0 0 - 1 6 5 , 0 0 0 582,780 TO T A L G O V T F U N D S 6, 6 5 2 , 6 2 0 - 5 3 2 , 2 0 0 1, 0 0 9 , 3 8 8 3, 1 5 7 , 4 6 0 18 8 , 0 0 0 70 , 1 0 0 98 , 0 0 0 73,600 565,000 12,346,368 En t e r p r i s e F u n d s Wa t e r O p e r a t i n g - - - - 1 , 1 9 2 , 9 1 5 - - 1 0 , 0 0 0 - - 1,202,915 Se w e r O p e r a t i n g - - - - 2 , 1 0 8 , 9 6 0 - - 3 5 , 0 0 0 20,000 - 2,163,960 Re c y c l i n g O p e r a t i n g - - - - 2 2 2 , 0 8 3 - - - 1 5 , 0 0 0 - 237,083 St o r m W a t e r O p e r a t i n g - - - - 6 8 3 , 5 6 7 - - 1 5 , 0 0 0 - - 698,567 Ca b l e O p e r a t i n g - - - - 7 6 , 0 0 0 - - 1 , 0 0 0 - - 77,000 T O T A L A L L F U N D S 6, 6 5 2 , 6 2 0 - 5 3 2 , 2 0 0 1, 0 0 9 , 3 8 8 7, 4 4 0 , 9 8 5 18 8 , 0 0 0 70 , 1 0 0 15 9 , 0 0 0 108,600 565,000 16,725,893 P r o p e r t y T a x Sp e c i a l As s e s s m e n t s Li c e n s e s & Pe r m i t s In t e r - Go v e r n m e n t a l Misc. RevenueTransfers From Other Funds Ch a r g e s f o r Se r v i c e s Total Revenues and Transfers In Re c r e a t i o n Ch a r g e s Fi n e s & Fo r f e i t s In t e r e s t In c o m e Ci t y of Or o n o - 20 2 1 Bu d g e t Page 31 Ci t y o f O r o n o Co m b i n e d S u m m a r y o f E x p e n d i t u r e s & O t h e r F i n a n c i n g U s e s Fo r 2 0 2 1 Total Expend and Transfers Out Ge n e r a l F u n d 1, 4 5 5 , 8 5 0 5 , 8 6 8 , 7 0 0 66 1 , 1 0 0 - 1 9 0 , 0 0 0 52 5 , 8 5 0 - - 1 5 9 , 0 0 0 400,000 9,260,500 Sp e c i a l R e v e n u e F u n d s Pa r k - - - - 1 6 0 , 0 0 0 - - - - - 160,000 Dr u g & F e l o n y F o r f i e t u r e - - - - - - - - 1 3 , 2 0 0 - 13,200 Se n i o r H o u s i n g - T I F - - - - - - - - 7 4 , 0 0 0 - 74,000 Ca p i t a l P r o j e c t s F u n d s PI R F u n d - - - - 1 5 , 6 2 8 - - - - - 15,628 IE O F u n d - - - - 2 6 1 , 6 8 4 - - - - - 261,684 Bu i l d i n g F u n d - - - - 1 , 8 3 1 , 5 0 0 - - - - - 1,831,500 MS A F u n d - - - - 7 1 , 8 6 7 - - - - - 71,867 PM P F u n d - - - - 1 , 1 2 3 , 5 7 0 - - - - - 1,123,570 Co m m u n i t y I n v e s t m e n t F u n d - - - - 5 0 , 0 0 0 - - - - - 50,000 De b t S e r v i c e F u n d s 20 1 0 I m p r o v e m e n t B o n d s - - - - - - - - - - - 20 1 4 I m p r o v e m e n t B o n d s - - - - - - 3 8 4 , 2 2 5 - 6 , 5 0 0 - 390,725 20 1 6 R e f u n d i n g B o n d s - - - - - - 5 2 5 , 4 0 0 - 6 , 5 0 0 - 531,900 TO T A L G O V T F U N D S 1, 4 5 5 , 8 5 0 5, 8 6 8 , 7 0 0 66 1 , 1 0 0 - 3 , 7 0 4 , 2 4 9 52 5 , 8 5 0 90 9 , 6 2 5 - 2 5 9 , 2 0 0 400,000 13,784,574 En t e r p r i s e F u n d s Wa t e r O p e r a t i n g - - - 96 6 , 5 0 0 42 0 , 5 0 0 - 80 , 0 0 0 - 2 2 , 1 0 0 55,000 1,544,100 Se w e r O p e r a t i n g - - - 1 , 9 0 3 , 9 0 0 83 3 , 0 0 0 - - - - 1 1 0 , 0 0 0 2,846,900 Re c y c l i n g O p e r a t i n g - - - 2 3 1 , 8 5 0 - - - - - - 231,850 St o r m W a t e r O p e r a t i n g 40 4 , 8 0 0 53 6 , 1 5 0 - - - - - 940,950 Ca b l e O p e r a t i n g - - - 7 4 , 3 0 0 - - - - - - 74,300 TO T A L A L L F U N D S 1, 4 5 5 , 8 5 0 5, 8 6 8 , 7 0 0 66 1 , 1 0 0 3, 5 8 1 , 3 5 0 5, 4 9 3 , 8 9 9 52 5 , 8 5 0 98 9 , 6 2 5 - 2 8 1 , 3 0 0 565,000 19,422,674 De b t Se r v i c e Re c y c l i n g Other Ex p e n d i t u r e s Transfers To Other Funds Ge n e r a l Go v e r n m e n t Pu b l i c Sa f e t y Pu b l i c Wo r k s En t e r p r i s e Op e r a t i o n s Ca p i t a l Ou t l a y Pa r k & Re c r e a t i o n Ci t y of Or o n o - 20 2 1 Bu d g e t Page 32 City of Orono Report of Outstanding Indebtedness As of December 31, 2020 Fund 321 Fund 322 Fund 323 2010 2014 2016 Total Imp/Ref Imp/Ref Ref All Issues Bond Type: Bonds Outstanding 1/1/20 1,640,000 3,350,000 2,005,000 6,995,000 Bonds Issued 0 0 0 0 Bonds Paid or Refunded -1,640,000 -305,000 -485,000 -2,430,000 Bonds Outstanding 12/31/20 0 3,045,000 1,520,000 4,565,000 Anticipated Isuances 2021 0 0 0 0 Payments Due 2021 0 -310,000 -495,000 -805,000 Projected Outstanding 2021 0 2,735,000 1,025,000 3,760,000 City of Orono - 2021 Budget Page 33 City of Orono - 2021 Budget Page 34 De b t I s s u e 20 1 4 G a r a g e , W a t e r , R e f u n d i n g T a x L e v y T r a n s f e r s - C o n t r a c t R e v e n u e W a t e r F u n d - P o r t i o n 20 1 6 G O R e f u n d i n g B o n d s T a x l e v y T r a n s f e r - W a t e r T r a n s f e r - S e w e r Cu r r e n t D e b t S e r v i c e S o u r c e s To t a l L e v y R e q u i r e d To t a l U t i l i t y F u n d s To t a l M S A T o t a l 20 2 1 20 2 2 20 2 3 20 2 4 20 2 5 20 2 6 2027 2028 2029 16 6 , 7 0 0 16 1 , 0 0 0 24 2 , 0 0 0 2 7 7 , 0 0 0 2 7 7 , 0 0 0 2 7 8 , 8 5 7 2 7 8 , 0 0 0 278,002 10 0 , 0 0 0 - - - - - - - 10 2 , 1 8 0 10 1 , 8 3 0 10 0 , 4 3 0 9 8 , 5 7 0 1 0 1 , 5 5 0 9 9 , 3 5 0 1 0 1 , 9 2 0 99,310 101,500 36 8 , 8 8 0 26 2 , 8 3 0 34 2 , 4 3 0 3 7 5 , 5 7 0 3 7 8 , 5 5 0 3 7 8 , 2 0 7 3 7 9 , 9 2 0 377,312 101,500 41 2 , 7 8 0 41 6 , 6 7 5 55 , 0 0 0 55 , 0 0 0 11 0 , 0 0 0 11 0 , 0 0 0 57 7 , 7 8 0 58 1 , 6 7 5 36 8 , 8 8 0 26 2 , 8 3 0 34 2 , 4 3 0 3 7 5 , 5 7 0 3 7 8 , 5 5 0 3 7 8 , 2 0 7 3 7 9 , 9 2 0 377,312 101,500 57 9 , 4 8 0 57 7 , 6 7 5 24 2 , 0 0 0 2 7 7 , 0 0 0 2 7 7 , 0 0 0 2 7 8 , 8 5 7 2 7 8 , 0 0 0 278,002 - 36 7 , 1 8 0 26 6 , 8 3 0 10 0 , 4 3 0 9 8 , 5 7 0 1 0 1 , 5 5 0 9 9 , 3 5 0 1 0 1 , 9 2 0 99,310 101,500 - - - - - - - - - 94 6 , 6 6 0 84 4 , 5 0 5 34 2 , 4 3 0 3 7 5 , 5 7 0 3 7 8 , 5 5 0 3 7 8 , 2 0 7 3 7 9 , 9 2 0 377,312 101,500 Ci t y of Or o n o - 20 2 1 Bu d g e t Page 35 Ci t y of Or o n o - 20 2 1 Bu d g e t Page 36 *Balance of Enterprise Funds reflects actual cash balance, not total Fund balance Actual Estimated Estimated 2019 2020 2021 $4,385,215 $4,002,713 $4,002,713 Park Fund $293,800 $277,426 $127,926 Drug & Felony Forfeiture $381,127 $321,500 $334,300 Senior Housing TIF Fund $91,378 $91,378 $94,378 Affordable Housing Fund $137,506 $137,506 $137,506 Lurton Park Fund $31,756 $14,145 $14,145 Employee Development $22,478 $22,478 $22,478 Golf Course Fund $276 $276 $276 $958,320 $864,708 $731,008 2005 HRA Public Projects $0 $0 $0 2008 Street Reconstruction $0 $0 $0 2010 MSA/PMP/Refunding $583,028 $262,142 $0 2014 GO/Water/Abatment $779,384 $745,420 $764,283 2016 GO Imp Refunding $778,130 $545,959 $596,839 $2,140,542 $1,553,521 $1,361,122 MSA Fund ‐$2,188,392 $0 $0 Improvement Eqpt Outlay $686,714 $616,003 $664,319 PIR Fund $1,471,613 $1,158,300 $1,147,672 Pavement Mgmt ‐$488,178 $0 $0 Community Investment $690,047 $671,684 $626,684 Police Capital Project Fund $0 $0 $0 $171,804 $2,445,987 $2,438,675 Water Operating $230,213 $267,887 $155,122 Sewer Operating $2,266,716 $2,019,555 $1,717,915 Storm Water Operating $1,186,111 $1,433,719 $1,215,936 Recycling Operating $52,518 $70,382 $84,314 Cable Television $130,186 $169,102 $174,902 $3,865,744 $3,960,645 $3,348,189 $11,521,626 $12,827,574 $11,881,707 Capital Projects Debt Service Debt Service GRAND TOTAL City of Orono Summary of Fund Balances* Special Revenue Funds General Fund Special Revenue Funds Enterprise Funds * Enterprise Funds Capital Projects City of Orono - 2021 Budget Page 37 City of Orono Changes in Fund Balance General Fund Actual Estimated Estimated 2019 2020 2021 Revenues Actual 9,247,029$ 9,143,200$ 9,260,500$ Budget 8,193,400 9,143,200 9,260,500 Actual Revenues Over (Under) Budgeted Revenues 1,053,629 - - Expenditures Actual 8,955,632$ 8,775,336$ 8,742,400$ Budget 8,577,279 8,775,336 8,742,400 Actual Expenditures Over (Under) Budgeted Expenditures 378,353 - - Other Financing Sources (Uses) Transfers Out: To Equipment Outlay Fund (255,000) (300,000) (300,000) Transfers Out: To Pavement Management - - - Transfers Out: To MSA - - - Transfers Out: To 2014 Debt Service (125,000) (100,000) (100,000) Transfers Out: To 2016 Debt Service - - - In: From - - - Capital Lease Proceeds - - - 101-39680 Sale of Land and Equipment 41,105 32,137 15,000 Excess (Deficiency) of Revenue Over Expenditures (47,498) 0 133,100 Fund Balance - Beginning of Year 4,614,882 4,567,384 4,567,384 Fund Balance - End of Year 4,567,384$ 4,567,384$ 4,700,484$ Fund Balance Components Nonspendable - Prepaids 9,809 20,000 20,000 Nonspendable - Inventory 2,410 5,000 5,000 Unassigned 4,555,165 4,542,384 4,675,484 Total Fund Balance 4,567,384$ 4,567,384$ 4,700,484$ City of Orono - 2021 Budget Page 38 City of Orono Changes in Fund Balance Special Revenue Funds Park Fund Actual Estimated Estimated 2019 2020 2021 Revenues Actual 98,992$ 147,440$ 10,500$ Budget - - 10,500 Actual Revenues Over (Under) Budgeted Revenues 98,992 147,440 - Expenditures Actual 500,736$ 287,474$ -$ Budget - - - Actual Expenditures Over (Under) Budgeted Expenditures 500,736 287,474 - Transfers In (Out) From Community Investment Fund - - - Excess (Deficiency) of Revenue Over Expenditures (401,744) (140,034) 10,500 Fund Balance - Beginning of Year 695,544 293,800 153,766 Capital Outlay (469,300) Fund Balance - End of Year 293,800 153,766 (305,034) Fund Balance Components Restricted for Land Acquisition and Park Development 293,800 153,766 (305,034) Total Fund Balance 293,800 153,766 (305,034) City of Orono - 2021 Budget Page 39 City of Orono Changes in Fund Balance Special Revenue Funds Drug and Felony Forfieture Fund Actual Estimated Estimated 2019 2020 2021 Revenues Actual 50,245$ -$ -$ Budget - - - Actual Revenues Over (Under) Budgeted Revenues 50,245 - - Expenditures Actual 3,818$ 13,200$ -$ Budget - 13,200 - Actual Expenditures Over (Under) Budgeted Expenditures 3,818 - - Transfers In (Out) - - - Excess (Deficiency) of Revenue Over Expenditures 46,427 (13,200) - Fund Balance - Beginning of Year 334,700 381,127 367,927 Fund Balance - End of Year 381,127 367,927 367,927 Fund Balance Components Restricted for Crime Prevention 381,127 367,927 367,927 Total Fund Balance 381,127 367,927 367,927 City of Orono - 2021 Budget Page 40 City of Orono Changes in Fund Balance Special Revenue Funds Senior Housing TIF Actual Estimated Estimated 2019 2020 2021 Revenues Actual 80,129$ 77,000$ 77,000$ Budget - 77,000 77,000 Actual Revenues Over (Under) Budgeted Revenues 80,129 - - Expenditures Actual 141,722$ 74,000$ 74,000$ Budget - 74,000 74,000 Actual Expenditures Over (Under) Budgeted Expenditures 141,722 - - Transfers In (Out) - - - Excess (Deficiency) of Revenue Over Expenditures (61,593) 3,000 3,000 Fund Balance - Beginning of Year 152,971 91,378 94,378 Fund Balance - End of Year 91,378 94,378 97,378 Fund Balance Components Restricted for Senior Housing 91,378 94,378 97,378 Total Fund Balance 91,378 94,378 97,378 City of Orono - 2021 Budget Page 41 City of Orono Changes in Fund Balance Special Revenue Funds Affordable Housing Fund Actual Estimated Estimated 2019 2020 2021 Revenues Actual 3,921$ -$ -$ Budget - - - Actual Revenues Over (Under) Budgeted Revenues 3,921 - - Expenditures Actual -$ -$ -$ Budget - - - Actual Expenditures Over (Under) Budgeted Expenditures - - - Transfers In (Out) - - - Excess (Deficiency) of Revenue Over Expenditures 3,921 - - Fund Balance - Beginning of Year 133,585 137,506 137,506 Fund Balance - End of Year 137,506 137,506 137,506 Fund Balance Components Restricted for Affordable Housing 137,506 137,506 137,506 Total Fund Balance 137,506 137,506 137,506 City of Orono - 2021 Budget Page 42 City of Orono Changes in Fund Balance Special Revenue Funds Lurton Park Fund Actual Estimated Estimated 2019 2020 2021 Revenues Actual 17,616$ -$ -$ Budget - - - Actual Revenues Over (Under) Budgeted Revenues 17,616 - - Expenditures Actual 3,483$ 3,700$ -$ Budget - - - Actual Expenditures Over (Under) Budgeted Expenditures 3,483 3,700 - Transfers In (Out) Transfer Out - Big Island Fund - - - Excess (Deficiency) of Revenue Over Expenditures 14,132 (3,700) - Fund Balance - Beginning of Year 17,624 31,756 28,056 Fund Balance - End of Year 31,756 28,056 28,056 Fund Balance Components Restricted for Park Dev/Maintanence 31,756 28,056 28,056 Total Fund Balance 31,756 28,056 28,056 City of Orono - 2021 Budget Page 43 City of Orono Changes in Fund Balance Special Revenue Funds Employee Development Actual Estimated Estimated 2019 2020 2021 Revenues Actual 623$ -$ -$ Budget - - - Actual Revenues Over (Under) Budgeted Revenues 623 - - Expenditures Actual -$ -$ -$ Budget - - - Actual Expenditures Over (Under) Budgeted Expenditures - - - Transfers In (Out) Transfer In: General Fund - - - Excess (Deficiency) of Revenue Over Expenditures 623 - - Fund Balance - Beginning of Year 21,855 22,478 22,478 Fund Balance - End of Year 22,478 22,478 22,478 Fund Balance Components Assigned for Employee Development 22,478 22,478 22,478 Total Fund Balance 22,478 22,478 22,478 City of Orono - 2021 Budget Page 44 City of Orono Changes in Fund Balance Special Revenue Funds Golf Course Fund Actual Estimated Estimated 2019 2020 2021 Revenues Actual 651$ -$ -$ Budget - - - Actual Revenues Over (Under) Budgeted Revenues 651 - - Expenditures Actual 644$ -$ -$ Budget - - - Actual Expenditures Over (Under) Budgeted Expenditures 644 - - Transfers In (Out) Transfer In: General Fund - - - Excess (Deficiency) of Revenue Over Expenditures 7 - - Fund Balance - Beginning of Year 269 276 276 Fund Balance - End of Year 276 276 276 Fund Balance Components Assigned for Golf Course Improvements 276 276 276 Total Fund Balance 276 276 276 City of Orono - 2021 Budget Page 45 City of Orono Changes in Fund Balance Debt Service Funds 2005 HRA Public Projects Bond - Big Island Actual Estimated Estimated 2019 2020 2021 Revenues Actual -$ -$ -$ Budget - - - Actual Revenues Over (Under) Budgeted Revenues - - - Expenditures Actual 496$ -$ -$ Budget - - - Actual Expenditures Over (Under) Budgeted Expenditures 496 - - Other Financing Sources (Uses) Close Out in 2018 - - - - Excess (Deficiency) of Revenue Over Expenditures (496) - - Fund Balance - Beginning of Year 496 (0) (0) Fund Balance - End of Year (0) (0) (0) Fund Balance Components Assigned for Debt Service (0) (0) (0) Total Fund Balance (0) (0) (0) City of Orono - 2021 Budget Page 46 City of Orono Changes in Fund Balance Debt Service Funds 2008 Street Reconstruction Actual Estimated Estimated 2019 2020 2021 Revenues Actual -$ -$ -$ Budget - - - Actual Revenues Over (Under) Budgeted Revenues - - - Expenditures Actual 978$ -$ -$ Budget - - - Actual Expenditures Over (Under) Budgeted Expenditures 978 - - Other Financing Sources (Uses) Close Out in 2018 - - - Excess (Deficiency) of Revenue Over Expenditures (978) - - Fund Balance - Beginning of Year 978 (0) (0) Fund Balance - End of Year (0) (0) (0) Fund Balance Components Assigned for Debt Service (0) (0) (0) Total Fund Balance (0) (0) (0) City of Orono - 2021 Budget Page 47 City of Orono Changes in Fund Balance Debt Service Funds 2010 MSA/PMP/Refunding Bonds Actual Estimated Estimated 2019 2020 2021 Revenues Actual 295,054$ 131,970$ 134,225$ Budget 134,960 131,970 134,225 Actual Revenues Over (Under) Budgeted Revenues 160,094 - - Expenditures Actual 400,819$ 271,694$ 270,619$ Budget 272,619 271,694 270,619 Actual Expenditures Over (Under) Budgeted Expenditures 128,200 - - Other Financing Sources (Uses) Transfer in: Community Investment - Excess (Deficiency) of Revenue Over Expenditures (105,765) (139,724) (136,394) Fund Balance - Beginning of Year 688,793 583,028 443,304 Fund Balance - End of Year 583,028 443,304 306,910 Fund Balance Components Assigned for Debt Service 583,028 443,304 306,910 Total Fund Balance 583,028 443,304 306,910 City of Orono - 2021 Budget Page 48 City of Orono Changes in Fund Balance Debt Service Funds 2014 GO/Water/Abatement Bonds Actual Estimated Estimated 2019 2020 2021 Revenues Actual 181,527$ 285,651$ 309,938$ Budget 574,638 285,651 309,938 Actual Revenues Over (Under) Budgeted Revenues (393,111) - - Expenditures Actual 287,319$ 429,225$ 392,625$ Budget 614,325 429,225 392,625 Actual Expenditures Over (Under) Budgeted Expenditures (327,006) - - Other Financing Sources (Uses) Transfer in: Community Investment - - - Transfer in: General Fund 125,000 100,000 100,000 Transfer in: Water Fund - - - Excess (Deficiency) of Revenue Over Expenditures 19,208 (43,574) 17,313 Fund Balance - Beginning of Year 760,175 779,384 735,810 Fund Balance - End of Year 779,384 735,810 753,123 Fund Balance Components Assigned for Debt Service 779,384 735,810 753,123 Total Fund Balance 779,384 735,810 753,123 City of Orono - 2021 Budget Page 49 City of Orono Changes in Fund Balance Debt Service Funds 2016 Refunding Bond Actual Estimated Estimated 2019 2020 2021 Revenues Actual 425,520$ 407,530$ 413,975$ Budget 193,830 407,530 413,975 Actual Revenues Over (Under) Budgeted Revenues 231,690 - - Expenditures Actual 516,250$ 266,950$ 515,200$ Budget 38,270 266,950 515,200 Actual Expenditures Over (Under) Budgeted Expenditures 477,980 - - Other Financing Sources (Uses) Transfer in: Community Investment - - - Transfer in: Water Fund 55,000 55,000 55,000 Transfer in: Sewer Fund 110,000 110,000 110,000 Excess (Deficiency) of Revenue Over Expenditures 74,270 305,580 63,775 Fund Balance - Beginning of Year 703,860 778,130 1,083,710 Fund Balance - End of Year 778,130 1,083,710 1,147,485 Fund Balance Components Assigned for Debt Service 778,130 1,083,710 1,147,485 Total Fund Balance 778,130 1,083,710 1,147,485 City of Orono - 2021 Budget Page 50 City of Orono Changes in Fund Balance Capital Project Funds Municipal State Aid Fund (MSA) Actual Estimated Estimated Revenues 2019 2020 2021 Actual 621,078$ 113,215$ 3,665,724$ Budget - - - Actual Revenues Over (Under) Budgeted Revenues 621,078 113,215 3,665,724 Expenditures Actual 110,862$ 124$ -$ Budget - - - Actual Expenditures Over (Under) Budgeted Expenditures 110,862 124 - Other Financing Sources (Uses) Bond Proceeds - - - Transfer In: General Fund - - Transfer In: Storm Water Excess (deficiency) of revenue Over Expenditures 510,215 113,091 3,665,724 Fund Balance Beginning of Year (2,698,608) (2,188,392) (2,075,302) Fund Balance End of Year (2,188,392) (2,075,302) 1,590,422 Fund Balance Components Restricted to State Aid Road Construction (2,188,392) (2,075,302) 1,590,422 Total Fund Balance (2,188,392) (2,075,302) 1,590,422 City of Orono - 2021 Budget Page 51 Actual Estimated Estimated Revenues 2019 2020 2021 Actual 62,622$ 15,000$ 10,000$ Budget - 15,000 10,000 Actual Revenues Over (Under) Budgeted Revenues 62,622 - - Expenditures Actual 160,353$ 131,414$ 568,600$ Budget - - - Actual Expenditures Over (Under) Budgeted Expenditures 160,353 131,414 568,600 Transfers In (Out) From Improvement Equipment Outlay - - - From General Fund 255,000 300,000 315,000 Excess (deficiency) of revenue over expenditures 157,269 183,586 (243,600) Fund Balance Beginning of Year 529,445 686,714 870,301 Fund Balance End of Year 686,714 870,301 626,701 Fund Balance Components Assigned for Long Lake Fire Equipment 316,000 405,000 9,350 Assigned for Capital Equipment Purchases 370,714 465,301 617,351 Total Fund Balance 686,714 870,301 626,701 Capital Project Funds City of Orono Improvement Equipment Outlay Changes in Fund Balance The Improvement Equipmpent Outlay Construction Fund was created in 2010. The initial funding was provided by the closing of the Improvement Equipment Outlay Special Revenue Fund. City of Orono - 2021 Budget Page 52 Permanent Improvement Revolving Fund (PIR) Actual Estimated Estimated Revenues 2019 2020 2021 Actual 241,210$ 188,860$ 12,296$ Budget 5,000 5,000 12,296 Actual Revenues Over (Under) Budgeted Revenues 236,210 183,860 - Expenditures Actual 27,990$ 27,990$ 5,464$ Budget 20,000 - 5,464 Actual Expenditures Over (Under) Budgeted Expenditures 7,990 27,990 - Transfers In (Out) Transfer From General Fund - - - Transfer To: 2014 Debt Service - - - Excess (deficiency) of revenue over expenditures 213,220 160,870 6,832 Fund Balance Beginning of Year 1,258,393 1,471,613 1,632,483 Fund Balance End of Year 1,471,613 1,632,483 1,639,315 Changes in Fund Balance Capital Project Funds City of Orono City of Orono - 2021 Budget Page 53 Permanent Improvement Revolving Fund (PIR) Fund Balance Components Assigned for: Police Equipment Purchases 216,654 200,000 100,000 Emergency Contingencies ** 325,000 325,000 325,000 Future Construction Projects 929,959 1,107,483 1,214,315 Total Fund Balance 1,471,613 1,632,483 1,639,315 ** The emergency contingency account is considered fully funded at $325,000. The City established the road/bridge account in 1987 with resolution #2210. The funds came from interest earned on MSA construction monies which were not then needed for MSA projects. Expenditures from the account are restricted to road and bridge projects, as approved by Council. The City established the emergency contingency account with resolution #941, and amended with resolution #2669 in 1989. The account is restricted for u use in a catastrophic situation or for temporary funding in the form of short-term loans to other accounts or funds. Capital Project Funds City of Orono Changes in Fund Balance City of Orono - 2021 Budget Page 54 Actual Estimated Estimated Revenues 2019 2020 2021 Actual 1,397,871$ 383,000$ 544,450$ Budget 253,000 383,000 544,450 Actual Revenues Over (Under) Budgeted Revenues 1,144,871 - - Expenditures Actual 1,824,926$ 653,029$ 1,056,295$ Budget 681,477 653,029 1,056,295 Actual Expenditures Over (Under) Budgeted Expenditures 1,143,449 - - Transfers In (Out) Transfer From General Fund - 331,151 511,845 Transfer From Sewer Operating - - - Transfer From Storm Water Operating - - - Excess (deficiency) of revenue over expenditures (427,055) 61,122 - Fund Balance Beginning of Year (61,122) (488,178) (427,056) Fund Balance End of Year (488,178) (427,056) (427,056) Fund Balance Components Restricted to Road Construction (488,178) (427,056) (427,056) Total Fund Balance (488,178) (427,056) (427,056) City of Orono Changes in Fund Balance Capital Project Funds Pavement Management Fund (PMP) City of Orono - 2021 Budget Page 55 Actual Estimated Estimated 2019 2020 2021 Revenues Actual 148,363$ -$ 5,000$ Budget 5,000 5,000 5,000 Actual Revenues Over (Under) Budgeted Revenues 143,363 (5,000) - Expenditures Actual 3,211$ 47,905$ -$ Budget 306,000 114,300 - Actual Expenditures Over (Under) Budgeted Expenditures (302,789) (66,395) - Transfers In (Out) From General Fund From Debt Service Fund - 130,000 - To Pavement Management Fund - From Com Investment Fund - - - Excess (Deficiency) of Revenue Over Expenditures 145,152 82,095 5,000 Fund Balance - Beginning of Year 544,895 690,047 772,142 Fund Balance - End of Year 690,047 772,142 777,142 The Community Investment Special Revenue Fund was closed in 2010 Balance transferred to the Community Investment Construction Fund City of Orono Changes in Fund Balance Capital Project Funds Community Investment Fund City of Orono - 2021 Budget Page 56 Actual Estimated Estimated 2019 2020 2021 Revenues Actual -$ -$ -$ Budget - - - Actual Revenues Over (Under) Budgeted Revenues - - - Expenditures Actual 24,883$ -$ -$ Budget - - - Actual Expenditures Over (Under) Budgeted Expenditures 24,883 - - Transfers In (Out) Close Out Fund in 2019 - - - - - Excess (Deficiency) of Revenue Over Expenditures (24,883) - - Fund Balance - Beginning of Year 24,883 - - Fund Balance - End of Year - - - City of Orono Changes in Fund Balance Capital Project Funds Police Capital Project Fund City of Orono - 2021 Budget Page 57 City of Orono Changes in Retained Earnings Enterprise Funds Water Fund Actual Estimated Estimated 2019 2020 2021 Operating Revenues Actual 886,201$ 681,550$ 1,134,624$ Budget 720,000 681,550 1,134,624 Actual Revenues Over (Under) Budgeted Revenues 166,201 - - Operating Expenditures Actual 857,544$ 933,250$ 988,600$ Budget 929,710 933,250 988,600 Actual Expenditures Over (Under) Budgeted Expenditures (72,166) - - Excess (Deficiency) of Operating Revenue Over Operating Expenditures 28,657 (251,700) 146,024 Non-Operating Revenues (Expenditures) Leases, Connections, Specials, Interest 21,036 20,000 10,000 Interest Expense - - - Add back: Depreciation Expenditure 187,360 225,800 462,800 Transfer Out: Debt Service (102,030) (100,430) (100,430) Transfer Out: Casco Point System (55,000) (55,000) (55,000) Excess (Deficiency) of Revenue Over Expenditures 80,023 (161,330) 463,394 Capital Outlays (423,400) (305,000) (233,855) Cash Balance at December 31 230,213 (236,117) (6,578) Capital outlay items reduce cash, but are not expenditures. Depreciation expenditure is not cash basis. City of Orono - 2021 Budget Page 58 City of Orono Changes in Retained Earnings Enterprise Funds Sewer Fund Actual Estimated Estimated 2019 2020 2021 Operating Revenues Actual 1,427,056$ 1,505,000$ 1,914,978$ Budget 1,374,240 1,505,000 1,914,978 Actual Revenues Over (Under) Budgeted Revenues 52,816 - - Operating Expenditures Actual 1,429,055$ 1,796,200$ 1,903,900$ Budget 1,844,175 1,796,200 1,903,900 Actual Expenditures Over (Under) Budgeted Expenditures (415,120) - - Excess (Deficiency) of Operating Revenue Over Operating Expenditures (1,999) (291,200) 11,078 Non-Operating Revenues (Expenditures) Connections, Specials, Interest 55,416 10,000 10,000 Interest Expense - - - Add Back: Depreciation Expenditure 326,642 353,600 754,200 Transfer Out: Casco Point System (110,000) (110,000) (110,000) Transfer Out: EOF - - (115,000) Excess (Deficiency) of Revenue Over Expenditures 270,059 (37,600) 550,278 Capital Outlay (972,194) (804,068) (815,000) Cash Balance at December 31 2,266,716 1,425,048 1,160,326 Capital outlay items reduce cash, but are not expenditures. Depreciation expenditure is not cash basis. City of Orono - 2021 Budget Page 59 City of Orono Changes in Retained Earnings Enterprise Funds Storm Water Fund Actual Estimated Estimated 2019 2020 2021 Operating Revenues Actual 452,705$ 281,160$ 554,936$ Budget 281,000 281,160 554,936 Actual Revenues Over (Under) Budgeted Revenues 171,705 - - Operating Expenditures Actual 436,620$ 373,000$ 404,800$ Budget 356,810 373,000 404,800 Actual Expenditures Over (Under) Budgeted Expenditures 79,810 - - Excess (Deficiency) of Operating Revenue Over Operating Expenditures 16,084 (91,840) 150,136 Non-Operating Revenues (Expenditures) Connection Fees, Interest 15,000 15,000 15,000 Transfers Out: EOF - - (100,000) Add Back: Depreciation Expenditure 46,257 62,000 143,000 Excess (Deficiency) of Revenue Over Expenditures 77,341 (14,840) 208,136 Capital Outlay (308,080) (708,375) (404,140) Cash Balance at December 31 1,186,111 497,896 301,892 Capital outlay items reduce cash, but are not expenditures. Depreciation expenditure is not cash basis. City of Orono - 2021 Budget Page 60 City of Orono Changes in Retained Earnings Enterprise Funds Recycling Actual Estimated Estimated 2019 2020 2021 Operating Revenues Actual 132,702$ 205,632$ 230,632$ Budget 110,290 205,632 230,632 Actual Revenues Over (Under) Budgeted Revenues 22,412 - - Operating Expenditures Actual 173,737$ 216,700$ 231,850$ Budget 134,530 216,700 231,850 Actual Expenditures Over (Under) Budgeted Expenditures 39,207 - - Excess (Deficiency) of Operating Revenue Over Operating Expenditures (41,036) (11,068) (1,218) Non-Operating Revenues (Expenditures) Grants 21,058 29,500 25,000 Other Non-Operating - - - Excess (Deficiency) of Revenue Over Expenditures (19,978) 18,432 23,782 Capital Outlay - - - Cash Balance at December 31 52,518 70,950 94,732 Capital outlay items reduce cash, but are not expenditures. City of Orono - 2021 Budget Page 61 City of Orono Changes in Retained Earnings Enterprise Funds Cable TV Actual Estimated Estimated 2019 2020 2021 Operating Revenues Actual 84,649$ 59,760$ 77,000$ Budget 78,000 77,000 77,000 Actual Revenues Over (Under) Budgeted Revenues 6,649 (17,240) - Operating Expenditures Actual 91,859$ 60,854$ 148,600$ Budget 67,030 74,300 148,600 Actual Expenditures Over (Under) Budgeted Expenditures 24,829 (13,446) - Excess (Deficiency) of Operating Revenue Over Operating Expenditures (7,210) (1,094) (71,600) Non-Operating Revenues (Expenditures) Other Non-Operating - - - Excess (Deficiency) of Revenue Over Expenditures (7,210) (1,094) (71,600) Capital Outlay - - - Cash Balance at December 31 130,186 129,091 57,491 Capital outlay items reduce cash, but are not expenditures. City of Orono - 2021 Budget Page 62 2019 Actual 2020 Budget 2021 Recommended Dollar Increase  (Decrease) % Increase  (Decrease) Personal Services 19,672 19,700 19,700 0 0.00% City Wide Memberships 12,047 12,500 12,500 0 0.00% Other Expenses 2,228 2,300 11,100 8,800 382.61% 33,948 34,500 43,300 8,800 25.51% PROGRAM DESCRIPTION & OBJECTIVES: OPERATING COST ACTIVITIES: *Personal Services include the wages and employment taxes for City Council Representatives. *City‐wide Memberships are as follows:      Suburban Rate Authority      League of Minnesota Cities      Metro Cities *Other Expenses includes training and meeting expenses. 2021 General Fund Operating Budget Departmental Summary General Fund ‐ Mayor & Council ‐ General Government City Council Total 41110 The City Council oversees the policies and procedures that govern the city in promoting the health, safety, and general welfare of the  citizens of Orono. City of Orono - 2021 Budget Page 63 2019 Actual 2020 Budget 2021 Recommended Dollar Increase  (Decrease) % Increase  (Decrease) 101 Full‐Time Employees Regular 18,200 18,200 18,200 0 0.00% 122 FICA 1,392 1,400 1,400 0 0.00% 151 Worker's Comp Insurance Prem 80 100 100 0 0.00% Total Personal Services 19,672 19,700 19,700 0 0.00% 313 IT Services 800 800 800 0 0.00% 433 Memberships 12,047 12,500 12,500 0 0.00% 437 Training & Development 225 300 300 0 0.00% 439 Meeting Expenses 1,203 1,200 10,000 8,800 733.33% 489 Other Miscellaneous Charges 0000N/A Total Other Expenses 14,275 14,800 23,600 8,800 59.46% 33,948 34,500 43,300 8,800 25.51% 41110 Other Expenses Personal Services City of Orono 2021 Line Item Budget General Fund ‐ Mayor & Council ‐ General Government City Council Total City of Orono - 2021 Budget Page 64 2019 Actual 2020 Budget 2021 Recommended Dollar Increase  (Decrease) % Increase  (Decrease) Personal Services 377,688 401,500 404,200 2,700 0.67% Supplies & Maintenance 281 300 300 0 0.00%  Professional Serivces 10,820 12,500 12,500 0 0.00%  Other Expenses 6,152 12,500 12,100 (400)‐3.20% 394,942 426,800 429,100 2,300 0.54% PROGRAM DESCRIPTION & OBJECTIVES: OPERATING COST ACTIVITIES: Administration Total 2021 General Fund Operating Budget Departmental Summary General Fund ‐ Administration ‐ General Government 41300 *Other Expenses includes training and development, memberships in professional organizations for the Administrative Staff, and the City  Administrator's car allowance. *Personal Services include the wages and employment taxes for the City Administrator and Administration Staff (90%). The City Clerk and Administrative Staff are also included in the Administration Department and perform various function such as customer  service, general administrative duties, permits and licensing, elections, data practices, and record management. The Administration Department includes the City Administrator who is responsible for meeting satatutory and legal obligations,  implementing policy established by the City Council and ensuring the successful management of all city operations.  In addition the City  Administrator is responsible for overseeing the human resource function. *Professional Services includes the city recorder for city council meetings. City of Orono - 2021 Budget Page 65 2019 Actual 2020 Budget 2021 Recommended Dollar Increase  (Decrease) % Increase  (Decrease) 101 Full‐Time Employees Regular 280,090 285,800 287,000 1,200 0.42% 102 Full‐Time Employees Overtime 0 1,300 1,300 0 0.00% 103 Part‐Time Employees 0000N/A 104 Temporary/Seasonal Employees 8,190 10,500 14,000 3,500 33.33% 121 PERA 20,986 21,500 21,600 100 0.47% 122 FICA 20,939 22,800 23,100 300 1.32% 135 City Benefit Contribution 45,523 57,600 54,800 (2,800)‐4.86% 142 Unemployment Benefit Payments 0000N/A 151 Worker's Comp Insurance Prem 1,960 2,000 2,400 400 20.00% Total Personal Services 377,688 401,500 404,200 2,700 0.67% 208 Books & Periodicals 281 300 300 0 0.00% Total Supplies & Maintenance 281 300 300 0 0.00% 313 IT Services 6,500 6,500 6,500 0 0.00% 319 Professional Services 4,320 6,000 6,000 0 0.00% Total Professional Serivces 10,820 12,500 12,500 0 0.00% 41300 2021 Line Item Budget City of Orono Professional Services Supplies & Maintenance Personal Services General Fund ‐ Administration ‐ General Government City of Orono - 2021 Budget Page 66 2019 Actual 2020 Budget 2021 Recommended Dollar Increase  (Decrease) % Increase  (Decrease) 331 Travel Expenses 545 3,500 2,000 (1,500)‐42.86% 340 General Advertising 0000N/A 433 Memberships 1,521 1,500 1,600 100 6.67% 437 Training & Development 1,114 4,000 4,000 0 0.00% 439 Meeting Expenses 0 500 1,500 1,000 200.00% 489 Other Miscellaneous Charges 2,973 3,000 3,000 0 0.00% Total Other Expenses 6,152 12,500 12,100 (400)‐3.20% 394,942 426,800 429,100 2,300 0.54% 41300 Other Expenses Administration Total City of Orono 2021 Line Item Budget General Fund ‐ Administration ‐ General Government cont. City of Orono - 2021 Budget Page 67 2019 Actual 2020 Budget 2021 Recommended Dollar Increase  (Decrease) % Increase  (Decrease)  Personal Services 0 58,200 27,800 (31,400)‐53.95%  Supplies & Maintenance 1,923 3,400 2,000 (1,400)‐41.18% Other Expenses 966 7,900 1,600 (6,300)‐79.75% 2,890 69,500 31,400 (39,100)‐56.26% PROGRAM DESCRIPTION & OBJECTIVES: OPERATING COST ACTIVITIES: *Other expenses include professional services, postage, travel expenses, advertising, building/equipment rental, training, meeting expenses  and other miscellaneous expenses. The Elections Department administers all federal, state, county, and municipal elections held in the city.  Temporary election judges are  hired to provide the necessary staffing at polling locations, and for the operation of voting machines.  The Administrative Staff provides  supervision to the election judges as needed and maintains election records. *Personal Services are the wages for the temporary election judges and Administration Staff (10%).  2020 is an election year. 2021 General Fund Operating Budget Departmental Summary General Fund ‐ Elections ‐ General Government Elections Total 41410 City of Orono - 2021 Budget Page 68 2019 Actual 2020 Budget 2021 Recommended Dollar Increase  (Decrease) % Increase  (Decrease) 101 Full‐Time Employees Regular 0 18,000 19,000 1,000 5.56% 102 Full‐Time Employees Overtime 0 1,000 1,000 0 0.00% 104 Temporary/Seasonal Employees 0 31,300 0 (31,300)‐100.00% 121 PERA 0 1,400 1,500 100 7.14% 122 FICA 0 1,500 1,500 0 0.00% 135 City Benefit Contribution 0 4,600 4,600 0 0.00% 151 Worker's Comp Insurance Prem 0 400 200 (200)‐50.00% Total Personal Services 0 58,200 27,800 (31,400)‐53.95% 208 Books & Periodicals 0000N/A 221 Equipment Parts & Accessories 1,923 2,500 2,000 (500)‐20.00% 240 Small Tools and Minor Equip 0 900 0 (900)‐100.00% Total Supplies & Maintenance 1,923 3,400 2,000 (1,400)‐41.18% 319 Professional Services 0 500 0 (500)‐100.00% 322 Postage 333 1,000 400 (600)‐60.00% 331 Travel Expenses 20 500 100 (400)‐80.00% 340 General Advertising 0 400 0 (400)‐100.00% 412 Building Rentals 0000N/A 415 Other Equipment Rentals 0000N/A 437 Training & Development 91 500 100 (400)‐80.00% 439 Meeting Expenses 0 2,800 0 (2,800)‐100.00% 489 Other Miscellaneous Charges 523 2,200 1,000 (1,200)‐54.55% Total Other Expenses 966 7,900 1,600 (6,300)‐79.75% 2,890 69,500 31,400 (39,100)‐56.26% 41410 General Fund ‐ Elections ‐ General Government Elections Total Other Expenses Supplies & Maintenance Personal Services City of Orono 2021 Line Item Budget City of Orono - 2021 Budget Page 69 2019 Actual 2020 Budget 2021 Recommended Dollar Increase  (Decrease) % Increase  (Decrease) Assessing Contract 194,750 203,000 210,000 7,000 3.45% 194,750 203,000 210,000 7,000 3.45% PROGRAM DESCRIPTION & OBJECTIVES: The City maintains a renewable contract agreement with Hennepin County to provide Assessing services.  2021 General Fund Operating Budget Departmental Summary General Fund ‐ Assessing ‐ General Government Assessing Total 41550 City of Orono - 2021 Budget Page 70 2019 Actual 2020 Budget 2021 Recommended Dollar Increase  (Decrease) % Increase  (Decrease) 302 Assessing Services 194,750 203,000 210,000 7,000 3.45% Total Assessing Service 194,750 203,000 210,000 7,000 3.45% 194,750 203,000 210,000 7,000 3.45% 41550 Assessing Services Assessing Total City of Orono 2021 Line Item Budget General Fund ‐ Assessing ‐ General Government City of Orono - 2021 Budget Page 71 2019 Actual 2020 Budget 2021 Recommended Dollar Increase  (Decrease) % Increase  (Decrease)  Personal Services 232,577 265,700 254,400 (11,300)‐4.25%  Supplies & Maintenance 299 0 0 0 N/A  Professional Services 4,900 5,000 5,000 0 0.00%  Other Expenses 1,910 5,400 4,150 (1,250)‐23.15% 239,686 276,100 263,550 (12,550)‐4.55% PROGRAM DESCRIPTION & OBJECTIVES OPERATING COST ACTIVITIES: *Personal Services include the wages and employment taxes for the Finance Department Staff. Staff includes: Finance Director (90%) and Accountant The Finance Department oversees the City's financial operations, insurances, and employee benefits.  It is responsible for preparing the  budget document and annual report in accordance with generally accepted accounting principles. *Other Expenses includes training and development, and memberships in professional organizations for the Finance Staff. 2021 General Fund Operating Budget Finance Total Departmental Summary General Fund ‐ Finance Department ‐ General Government 41500 City of Orono - 2021 Budget Page 72 2019 Actual 2020 Budget 2021 Recommended Dollar Increase  (Decrease) % Increase  (Decrease) 101 Full‐Time Employees Regular 142,609 169,300 193,900 24,600 14.53% 102 Full‐Time Employees Overtime 0 200 200 0 0.00% 103 Part‐Time Employees 29,302 31,800 0 (31,800)‐100.00% 104 Temporary/Seasonal Employees 0000N/A 121 PERA 12,629 15,100 14,500 (600)‐3.97% 122 FICA 12,477 15,400 14,800 (600)‐3.90% 135 City Benefit Contribution 34,161 32,400 29,600 (2,800)‐8.64% 151 Worker's Comp Insurance Prem 1,400 1,500 1,400 (100)‐6.67% Total Personal Services 232,577 265,700 254,400 (11,300)‐4.25% 208 Books & Periodicals 299 0 0 0 N/A Total Supplies & Maintenance 299 0 0 0 N/A 301 Auditing and Acct'g Services 0000N/A 313 IT Services 4,900 5,000 5,000 0 0.00% Total Professional Services 4,900 5,000 5,000 0 0.00% 331 Travel Expenses 236 1,500 750 (750)‐50.00% 433 Memberships 435 400 400 0 0.00% 437 Training & Development 1,239 3,500 3,000 (500)‐14.29% Total Other Expenses 1,910 5,400 4,150 (1,250)‐23.15% 239,686 276,100 263,550 (12,550)‐4.55% 41500 City of Orono 2021 Line Item Budget General Fund ‐ Finance Department ‐ General Government Personal Services Supplies & Maintenance Professional Services Other Expenses Finance Total City of Orono - 2021 Budget Page 73 2019 Actual 2020 Budget 2021 Recommended Dollar Increase  (Decrease) % Increase  (Decrease) Professional Services 105,955 134,000 133,000 (1,000)‐0.75% 105,955 134,000 133,000 (1,000)‐0.75% PROGRAM DESCRIPTION & OBJECTIVES: OPERATING COST ACTIVITIES: *Professional Services includes the costs associated with the contract with legal staff, prosecution costs, code enforcement, and jail  charges. The City maintains a renewable contract agreement with two local legal firms to provide legal services.  The Legal Department provides  professional representation and opinion on city services and operations. Law/Legal Services Total 2021 General Fund Operating Budget Departmental Summary General Fund ‐ Law/Legal Services ‐ General Government 41600 City of Orono - 2021 Budget Page 74 2019 Actual 2020 Budget 2021 Recommended Dollar Increase  (Decrease) % Increase  (Decrease) 305 Legal‐Retainer 0000N/A 306 Legal‐Prosecution 54,788 40,000 41,000 1,000 2.50% 307 Legal‐Consulting 43,169 80,000 80,000 0 0.00% 308 Code Enforcement 6,257 2,000 2,000 0 0.00% 309 Jail Charges 1,742 12,000 10,000 (2,000)‐16.67% Total Professional Services 105,955 134,000 133,000 (1,000)‐0.75% 105,955 134,000 133,000 (1,000)‐0.75% 41600 City of Orono Law/Legal Services Total 2021 Line Item Budget General Fund ‐ Law/Legal Services ‐ General Government Professional Services City of Orono - 2021 Budget Page 75 2019 Actual 2020 Budget 2021 Recommended Dollar Increase  (Decrease) % Increase  (Decrease)  Supplies & Maintenance 50,519 79,000 79,000 0 0.00%  Professional Services 89,493 89,000 105,000 16,000 17.98%  Insurances 38,290 44,800 44,800 0 0.00%  Other Expenses 111,920 102,300 104,300 2,000 1.96% Capital Outlay & Transfers 0 0 0 0 N/A 290,221 315,100 333,100 18,000 5.71% PROGRAM DESCRIPTION & OBJECTIVES: OPERATING COST ACTIVITIES: Central Services Total *Insurance Expenses includes a portion of the City's general and liability insurance costs. *Supplies & Maintenance include the operating supplies and maintenance expenses on city equipment and facilities. *Professional Services includes annual audit expenses and fees associated with administering city benefit plans. *Other Expenses includes utilities, publishing costs, copier leases, and other miscellaneous charges related to city operations.  The Central Services Department provides for those operating expenses that encompass all city departments.  By consolidating these  expenditures, the City can more accurately determine the effectiveness of the costs and benefits provided.  The City maintains a renewable  contract agreement with an outside janitorial service for general cleaning and upkeep of city facilities.  The Central Services Department  also pays for a portion of the costs associated with the annual audit. 2021 General Fund Operating Budget Departmental Summary General Fund ‐ Central Services ‐ General Government 41900 City of Orono - 2021 Budget Page 76 2019 Actual 2020 Budget 2021 Recommended Dollar Increase  (Decrease) % Increase  (Decrease) 201 Office supplies 6,186 12,000 12,000 0 0.00% 221 Equipment Parts & Accessories 274 1,000 1,000 0 0.00% 223 Bldg/Grounds Maint. Supplies 1,984 3,500 3,500 0 0.00% 401 Repairs/Maint‐Office Equip 999 500 500 0 0.00% 403 Repairs/Maint‐Misc. Equip 424 3,000 3,000 0 0.00% 404 Repairs/Maint‐Bldgs/Grounds 23,623 40,000 40,000 0 0.00% 407 Janitorial Services 17,028 19,000 19,000 0 0.00% 416 Software Licensing 0000N/A Total Supplies & Maintenance 50,519 79,000 79,000 0 0.00% 301 Auditing and Acct'g Services 31,500 24,000 24,000 0 0.00% 311 Data Processing Communication 0000N/A 313 IT Services 49,000 50,000 51,000 1,000 2.00% 319 Professional Services 8,993 15,000 30,000 15,000 100.00% 370 Insurance Agent of Record 0000N/A Total Professional Services 89,493 89,000 105,000 16,000 17.98% 361 General Liability Ins 12,000 10,200 10,200 0 0.00% 362 Umbrella Liability Ins 10,000 15,100 15,100 0 0.00% 363 Bonds Insurance 1,040 700 700 0 0.00% 365 Boiler & Machinery Ins 0000N/A 366 Property Insurance 10,000 14,100 14,100 0 0.00% 367 Equipment Floaters Ins 0000N/A 368 Automotive Insurance 5,250 4,700 4,700 0 0.00% Total Insurances 38,290 44,800 44,800 0 0.00% 41900 City of Orono 2021 Line Item Budget General Fund ‐ Central Services ‐ General Government Supplies & Maintenance Professional Services Insurances City of Orono - 2021 Budget Page 77 2019 Actual 2020 Budget 2021 Recommended Dollar Increase  (Decrease) % Increase  (Decrease) 312 Bank Fees 25,977 23,000 23,000 0 0.00% 321 Telephone 13,525 12,000 14,000 2,000 16.67% 322 Postage 8,467 6,000 6,000 0 0.00% 329 Internet/Other Communications 10,440 0 0 0 N/A 352 Printing & Publishing 18,872 22,000 22,000 0 0.00% 381 Gas & Electric 29,352 33,300 33,300 0 0.00% 382 Water Utilities 3,330 4,000 4,000 0 0.00% 413 Office Equipment Rental 753 1,500 1,500 0 0.00% 440 Special Equipment Replacement 0000N/A 441 Licenses & Taxes 110 0 0 0 N/A 489 Other Miscellaneous Charges 1,094 500 500 0 0.00% Total Other Expenses 111,920 102,300 104,300 2,000 1.96% 512 Spec Assmts on Land & Int 0000N/A 750 Interest on Special Assmnts 0000N/A Total Capital Outlay 0000N/A 290,221 315,100 333,100 18,000 5.71% 41900 Other Expenses Capital Outlay Central Services Total City of Orono 2021 Line Item Budget General Fund ‐ Central Services ‐ General Government cont. City of Orono - 2021 Budget Page 78 2019 Actual 2020 Budget 2021 Recommended Dollar Increase  (Decrease) % Increase  (Decrease) Contributions 9,500 12,400 12,400 0 0.00% 9,500 12,400 12,400 0 0.00% PROGRAM DESCRIPTION & OBJECTIVES: OPERATING COST ACTIVITIES:   The Gillespie Center 9,500   Orono Community Education 2,900 12,400 2021 General Fund Operating Budget Departmental Summary General Fund ‐ Human Services ‐ General Government Human Services Total The Human Services Department is comprised of area organizations that provide equal opportunity in employment, housing, public  services, and education.  The City maintains an affiliation with these organizations to ensure a strong relationship with area communities  and their citizens. *Contributions are the contributions made to Human Service Organizations in the Orono area.  Organizations include: 41800 City of Orono - 2021 Budget Page 79 2019 Actual 2020 Budget 2021 Recommended Dollar Increase  (Decrease) % Increase  (Decrease) 490 Contributions to Civic Org's 9,500 12,400 12,400 0 0.00% Total Other Expenses 9,500 12,400 12,400 0 0.00% 9,500 12,400 12,400 0 0.00% Other Expenses City of Orono 2021 Line Item Budget General Fund ‐ Human Services ‐ General Government 41800 Human Services Total City of Orono - 2021 Budget Page 80 2019 Actual 2020 Budget 2021 Recommended Dollar Increase  (Decrease) % Increase  (Decrease)  Personal Services 3,686,673 3,868,100 3,980,500 112,400 2.91%  Supplies & Maintenance 183,823 246,500 244,000 (2,500)‐1.01%  Professional Services 183,308 224,000 245,400 21,400 9.55%  Insurances 71,000 102,100 102,100 0 0.00%  Other Expenses 243,991 248,100 128,400 (119,700)‐48.25%  Capital Outlay 242,655 185,000 190,000 5,000 2.70% 4,611,450 4,873,800 4,890,400 16,600 0.34% PROGRAM DESCRIPTION & OBJECTIVES: OPERATING COST ACTIVITIES: *Personal Services include the wages and employment taxes for the Police Department. Police Total Departmental Summary General Fund ‐ Police Department ‐ Public Safety 2021 General Fund Operating Budget The Police Department provides for the public safety within Orono and several surrounding communities.  This is accomplished through preventive  patrol, traffic enforcement, education, criminal investigation and prosecution.  Through renewable contract agreements, the city provides police  services to the communities of Spring Park, Minnetonka Beach, and Mound.  Due to the nature of these cooperative agreements, the Police  Department operates, and is budgeted for as a 'cost center'.  This enables the City to accurately determine the portion of operating costs that  pertain to each contract city. Staff includes: Police Chief, Deputy Chief, Sergeant (5), Investigators (3), Patrol Officers (18), Community Service Officer, Office Manager, Administrative Assistant (2) *Supplies & Maintenance include the operating supplies and maintenance expenses on police equipment and facilities. *Other Expenses includes utilities, fuel, publishing costs, copier leases, and other miscellaneous charges related to police operations. *Insurance Expenses includes a portion of the City's general, liability, and auto insurance costs. *Professional Services includes the police records system, internet, animal care, and medical and psychological evaluations for new officers. 42110 City of Orono - 2021 Budget Page 81 2019 Actual 2020 Budget 2021 Recommended Dollar Increase  (Decrease) % Increase  (Decrease) 101 Full‐Time Employees Regular 2,603,899 2,676,300 2,764,300 88,000 3.29% 102 Full‐Time Employees Overtime 28,662 50,000 50,000 0 0.00% 103 Part‐Time Employees 75,048 60,000 60,000 0 0.00% 104 Temporary/Seasonal Employees 0000N/A 121 PERA 423,379 459,300 465,900 6,600 1.44% 122 FICA 49,555 54,000 55,900 1,900 3.52% 135 City Benefit Contribution 381,060 418,500 418,500 0 0.00% 142 Unemployment Benefit Payments 0000N/A 151 Worker's Comp Insurance Prem 125,070 150,000 165,900 15,900 10.60% Total Personal Services 3,686,673 3,868,100 3,980,500 112,400 2.91% 201 Office supplies 4,309 5,000 5,000 0 0.00% 208 Books & Periodicals 278 1,000 1,000 0 0.00% 212 Motor Fuels & Lubricants 69,607 100,000 100,000 0 0.00% 221 Equipment Parts & Accessories 5,814 16,500 15,000 (1,500)‐9.09% 223 Bldg/Grounds Maint. Supplies 463 1,000 1,000 0 0.00% 226 Clothing & personal equipment 21,520 27,000 27,000 0 0.00% 228 Training Supplies 8,068 16,000 16,000 0 0.00% 229 Explorers Program expenses 2,479 4,000 2,500 (1,500)‐37.50% 240 Small Tools and Minor Equip 5,834 5,000 5,000 0 0.00% 401 Repairs/Maint‐Office Equip 1,395 1,000 1,000 0 0.00% 402 Repairs/Maint‐Auto Equip 32,488 40,000 40,000 0 0.00% 403 Repairs/Maint‐Misc. Equip 4,741 7,000 5,500 (1,500)‐21.43% 404 Repairs/Maint‐Bldgs/Grounds 14,447 7,500 10,000 2,500 33.33% 407 Janitorial Services 12,379 15,500 15,000 (500)‐3.23% 416 Software Licensing 0000N/A Total Supplies & Maintenance 183,823 246,500 244,000 (2,500)‐1.01% Supplies & Maintenance 42110 City of Orono 2021 Line Item Budget General Fund ‐ Police Department ‐ Public Safety Personal Services City of Orono - 2021 Budget Page 82 2019 Actual 2020 Budget 2021 Recommended Dollar Increase  (Decrease) % Increase  (Decrease) 304 Engineering‐Consulting 0000N/A 307 Legal‐Consulting 4,766 8,000 8,000 0 0.00% 310 LOGIS‐Applications 88,802 112,500 134,900 22,400 19.91% 311 Data Processing Communication 4,672 6,000 6,000 0 0.00% 313 IT Services 72,840 80,000 80,000 0 0.00% 317 Animal Care 1,153 3,000 1,500 (1,500)‐50.00% 319 Professional Services 11,075 14,500 15,000 500 3.45% 370 Insurance Agent of Record 0000N/A Total Professional Services 183,308 224,000 245,400 21,400 9.55% 361 General Liability Ins 40,000 57,400 57,400 0 0.00% 362 Umbrella Liability Ins 15,000 24,900 24,900 0 0.00% 366 Property Insurance 1,000 1,100 1,100 0 0.00% 367 Equipment Floaters Ins 0000N/A 368 Automotive Insurance 15,000 18,700 18,700 0 0.00% 379 Insurance Deductibles 0000N/A Total Insurances 71,000 102,100 102,100 0 0.00% Professional Services Insurances 42110 City of Orono 2021 Line Item Budget General Fund ‐ Police Department ‐ Public Safety cont. City of Orono - 2021 Budget Page 83 2019 Actual 2020 Budget 2021 Recommended Dollar Increase  (Decrease) % Increase  (Decrease) 321 Telephone 23,783 24,000 24,000 0 0.00% 322 Postage 149 800 800 0 0.00% 329 Internet/Other Communications 1,526 0 0 0 N/A 331 Travel Expenses 7 300 300 0 0.00% 340 General Advertising 402 0 0 0 N/A 352 Printing & Publishing 2,036 1,500 1,500 0 0.00% 381 Gas & Electric 15,886 20,000 20,000 0 0.00% 382 Water Utilities 1,404 3,000 3,000 0 0.00% 413 Office Equipment Rental 0 3,000 3,000 0 0.00% 414 EDP/Communications Equip Rent 26,455 26,000 27,000 1,000 3.85% 433 Memberships 4,596 5,500 5,000 (500)‐9.09% 436 Towing Charges 965 0 0 0 N/A 437 Training & Development 31,160 38,000 38,000 0 0.00% 438 Distribution to Other Govmnts 129,034 119,500 0 (119,500)‐100.00% 439 Meeting Expenses 968 2,200 2,000 (200)‐9.09% 440 Special Equipment Replacement 5,106 0 0 0 N/A 441 Licenses & Taxes 135 1,300 1,300 0 0.00% 489 Other Miscellaneous Charges 380 3,000 2,500 (500)‐16.67% Total Other Expenses 243,991 248,100 128,400 (119,700)‐48.25% 550 Automotive Equipment 185,406 164,000 164,000 0 0.00% 560 Furniture and Fixtures 0000N/A 570 Office Equip and Furnishings 0 0 5,000 5,000 N/A 575 IT Hardware & Applications 5,618 0 0 0 N/A 580 Other Equipment 51,632 21,000 21,000 0 0.00% Total Capital Outlay 242,655 185,000 190,000 5,000 2.70% 4,611,450 4,873,800 4,890,400 16,600 0.34% Other Expenses Capital Outlay Police Total 42110 City of Orono 2021 Line Item Budget General Fund ‐ Police Department ‐ Public Safety cont. City of Orono - 2021 Budget Page 84 2019 Actual 2020 Budget 2021 Recommended Dollar Increase  (Decrease) % Increase  (Decrease) Professional Services 402,099 433,900 435,000 1,100 0.25% Other Expenses 93 0 0 402,192 433,900 435,000 1,100 0.25% PROGRAM DESCRIPTION & OBJECTIVES: OPERATING COST ACTIVITIES: *Professional Services are the costs associated with the contract agreements with Long Lake. 2021 General Fund Operating Budget Departmental Summary The Fire Department is comprised of renewable contract agreements with the surrounding community of Long Lake for fire suppression  services. Fire Protection Services Total General Fund ‐ Fire Protection Services ‐ Public Safety 42260 City of Orono - 2021 Budget Page 85 2019 Actual 2020 Budget 2021 Recommended Dollar Increase  (Decrease) % Increase  (Decrease) 318 Fire Services 402,099 433,900 435,000 1,100 0.25% 319 Professional Services 0000N/A Total Professional Services 402,099 433,900 435,000 1,100 0.25% 489 Other Miscellaneous Charges 93 0 0 Total 93 0 0 402,192 433,900 435,000 1,100 0.25% 42260 2021 Line Item Budget General Fund ‐ Fire Protection Services ‐ Public Safety Professional Services Fire Protection Services Total Other Expenses City of Orono City of Orono - 2021 Budget Page 86 2019 Actual 2020 Budget 2021 Recommended Dollar Increase  (Decrease) % Increase  (Decrease)  Personal Services 513,186 549,500 458,900 (90,600)‐16.49%  Supplies & Maintenance 0 5,000 5,000 0 0.00%  Professional Services 136,876 146,800 257,500 110,700 75.41%  Other Expenses 21,332 12,000 11,900 (100)‐0.83% 671,394 713,300 733,300 20,000 2.80% PROGRAM DESCRIPTION & OBJECTIVES: OPERATING COST ACTIVITIES: *Personal Services include the wages and employment taxes for Planning and Zoning Staff. *Other Expenses includes training and development, and memberships in professional organizations for the Planning & Zoning Staff. *Professional Services include engineering, legal consulting services and contracted building inspections. The Planning & Zoning Department oversees the development and redevelopment within the City in accordance with established policies  and guidelines.  The policies and guidelines have been created and are enforced to maintain the health, safety, and welfare of the public, as  well as the aesthetics of the community. Staff includes: Director of Community Development, Planners (2), Planning Assistant and Building Officials. 2021 General Fund Operating Budget Departmental Summary General Fund ‐ Building & Zoning ‐ Public Safety 42400 Building & Zoning Total City of Orono - 2021 Budget Page 87 2019 Actual 2020 Budget 2021 Recommended Dollar Increase  (Decrease) % Increase  (Decrease) 101 Full‐Time Employees Regular 405,075 415,400 346,500 (68,900)‐16.59% 102 Full‐Time Employees Overtime 0 200 200 0 0.00% 103 Part‐Time Employees 0000N/A 104 Temporary/Seasonal Employees 0000N/A 121 PERA 29,480 31,200 26,000 (5,200)‐16.67% 122 FICA 29,563 31,800 26,500 (5,300)‐16.67% 135 City Benefit Contribution 46,758 68,300 57,300 (11,000)‐16.11% 142 Unemployment Benefit Payments 0000N/A 151 Worker's Comp Insurance Prem 2,310 2,600 2,400 (200)‐7.69% Total Personal Services 513,186 549,500 458,900 (90,600)‐16.49% 208 Books & Periodicals 0 500 500 0 0.00% 212 Motor Fuels & Lubricants 0 1,500 1,500 0 0.00% 221 Equipment Parts & Accessories 0 3,000 3,000 0 0.00% 226 Clothing & personal equipment 0000N/A 240 Small Tools and Minor Equip 0000N/A 402 Repairs/Maint‐Auto Equip 0000N/A 403 Repairs/Maint‐Misc. Equip 0000N/A Total Supplies & Maintenance 0 5,000 5,000 0 0.00% 42400 Supplies & Maintenance City of Orono 2021 Line Item Budget General Fund ‐ Building & Zoning ‐ Public Safety Personal Services City of Orono - 2021 Budget Page 88 2019 Actual 2020 Budget 2021 Recommended Dollar Increase  (Decrease) % Increase  (Decrease) 304 Engineering‐Consulting 2,514 5,000 2,500 (2,500)‐50.00% 305 GIS/Mapping 4,881 3,000 3,000 0 0.00% 307 Legal‐Consulting 14,776 15,000 15,000 0 0.00% 310 Inspection Services 103,589 90,000 209,000 119,000 132.22% 312 Bank Fees 0000N/A 313 IT Services 8,180 23,800 23,000 (800)‐3.36% 319 Professional Services 2,937 10,000 5,000 (5,000)‐50.00% Total Professional Services 136,876 146,800 257,500 110,700 75.41% 321 Telephone 838 500 500 0 0.00% 331 Travel Expenses 387 2,000 2,000 0 0.00% 340 General Advertising 736 500 400 (100)‐20.00% 415 Other Equipment Rentals 0000N/A 416 Software Licensing 15,600 0 0 0 N/A 433 Memberships 714 1,600 1,600 0 0.00% 437 Training & Development 3,057 7,400 7,400 0 0.00% 439 Meeting Expenses 0000N/A 441 Licenses & Taxes 0000N/A Total Other Expenses 21,332 12,000 11,900 (100)‐0.83% 671,394 713,300 733,300 20,000 2.80% 42400 Building & Zoning Total Professional Services Other Expenses 2021 Line Item Budget General Fund ‐ Building & Zoning ‐ Public Safety cont. City of Orono City of Orono - 2021 Budget Page 89 2019 Actual 2020 Budget 2021 Recommended Dollar Increase  (Decrease) % Increase  (Decrease) Professional Services 23,588 20,000 20,000 0 0.00% Engineering Total 23,588 20,000 20,000 0 0.00% PROGRAM DESCRIPTION & OBJECTIVES: OPERATING COST ACTIVITIES: *Professional Services are the costs associated with the contract agreement with the engineering firm. The City maintains a renewable contract with a local firm to provide all engineering services.  The Engineering Department provides  professional representation and opinion on city services and operations.   2021 General Fund Operating Budget Departmental Summary General Fund ‐ Engineering 43170 City of Orono - 2021 Budget Page 90 2019 Actual 2020 Budget 2021 Recommended Dollar Increase  (Decrease) % Increase  (Decrease) 303 Engineering‐Retainer 0000N/A 304 Engineering‐Consulting 6,334 5,000 5,000 0 0.00% 305 GIS/Mapping 17,254 15,000 15,000 0 0.00% Total Professional Services 23,588 20,000 20,000 0 0.00% 23,588 20,000 20,000 0 0.00% City of Orono 2021 Line Item Budget General Fund ‐ Engineering Professional Services Engineering Total 43170 City of Orono - 2021 Budget Page 91 2019 Actual 2020 Budget 2021 Recommended Dollar Increase  (Decrease) % Increase  (Decrease)  Personal Services 269,702 293,200 321,300 28,100 9.58%  Supplies & Maintenance 263,678 176,100 180,600 4,500 2.56%  Professional Services 4,290 96,800 96,800 0 0.00%  Other Expenses 44,391 42,700 42,400 (300)‐0.70% 582,061 608,800 641,100 32,300 5.31% PROGRAM DESCRIPTION & OBJECTIVES: OPERATING COST ACTIVITIES: *Personal Services include the wages and employment taxes for the Public Works Department. *Other Expenses include electricity costs for street lighting and employee development. Staff includes: Director of Public Works/City Engineer (15%), Public Works Supervisors (25%),  Maintenance Workers (40%), Public Works Support/Utility Billing Specialist (20%) Departmental Summary General Fund ‐ Public Works Department 2021 General Fund Operating Budget 43000 Public Works Total *Supplies & Maintenance include general operating supplies for street repair/maintenance, and vehicle and equipment maintenance.  The Street Department provides for the maintainance of all city streets to ensure a safe and driveable condition.  Standard maintenance  includes seal‐coating, patching, snow plowing, and sweeping.  Due to its excess storage capacity, the City maintains cooperative  agreements with surrounding communities for storage and sale of salt/sand supplies. City of Orono - 2021 Budget Page 92 2019 Actual 2020 Budget 2021 Recommended Dollar Increase  (Decrease) % Increase  (Decrease) 101 Full‐Time Employees Regular 183,019 191,000 211,900 20,900 10.94% 102 Full‐Time Employees Overtime 6,949 11,000 11,000 0 0.00% 121 PERA 14,651 15,200 16,800 1,600 10.53% 122 FICA 14,384 15,400 17,000 1,600 10.39% 135 City Benefit Contribution 34,069 44,200 46,400 2,200 4.98% 142 Unemployment Benefit Payments 0000N/A 151 Worker's Comp Insurance Prem 16,630 16,400 18,200 1,800 10.98% Total Personal Services 269,702 293,200 321,300 28,100 9.58% 208 Books & Periodicals 0000N/A 212 Motor Fuels & Lubricants 35,000 0 0 0 N/A 221 Equipment Parts & Accessories 30,144 0 0 0 N/A 222 Vehicle Equipment & Parts 8,041 0 0 0 N/A 224 Street Maint. Materials/Supply 110,665 54,000 83,200 29,200 54.07% 226 Clothing & personal equipment 6,750 7,400 7,700 300 4.05% 240 Small Tools and Minor Equip 3,543 3,000 3,000 0 0.00% 321 Telephone 1,675 1,700 1,700 0 0.00% 402 Repairs/Maint‐Auto Equip 10,000 0 0 0 N/A 403 Repairs/Maint‐Misc. Equip 20,664 0 0 0 N/A 404 Repairs/Maint‐Bldgs/Grounds 5,898 10,000 10,000 0 0.00% 408 Contracted Street Maint.31,299 100,000 75,000 (25,000)‐25.00% Total Supplies & Maintenance 263,678 176,100 180,600 4,500 2.56% Personal Services City of Orono 2021 Line Item Budget General Fund ‐ Public Works Department 43000 Supplies & Maintenance City of Orono - 2021 Budget Page 93 2019 Actual 2020 Budget 2021 Recommended Dollar Increase  (Decrease) % Increase  (Decrease) 304 PW Engineering‐Consulting 16 800 800 0 0.00% 305 GIS/Mapping 468 800 800 0 0.00% 313 IT Services 3,270 3,500 3,500 0 0.00% 314 Fleet Services 0 91,700 91,700 0 0.00% 319 Professional Services 536 0 0 0 N/A Total Professional Services 4,290 96,800 96,800 0 0.00% 331 Travel Expenses 0 200 200 0 0.00% 381 Gas & Electric 2,890 2,700 2,900 200 7.41% 386 Street Lighting 26,987 29,000 29,000 0 0.00% 414 EDP/Communications Equip Rent 2,354 2,400 2,400 0 0.00% 415 Other Equipment Rentals 9,378 4,000 4,000 0 0.00% 416 Software Licensing 0000N/A 433 Memberships 238 300 300 0 0.00% 437 Training & Development 2,472 3,500 3,000 (500)‐14.29% 441 Licenses & Taxes 26 300 300 0 0.00% 489 Other Miscellaneous Charges (25)300 300 0 0.00% 590 Street Construction 72 0 0 0 N/A Total Other Expenses 44,391 42,700 42,400 (300)‐0.70% 582,061 608,800 641,100 32,300 5.31% Professional Services 43000 City of Orono 2021 Line Item Budget General Fund ‐ Public Works Department cont. Other Expenses Public Works Total City of Orono - 2021 Budget Page 94 2019 Actual 2020 Budget 2021 Recommended Dollar Increase  (Decrease) % Increase  (Decrease)  Personal Services 87,932 134,500 167,200 32,700 24.31%  Supplies & Maintenance 89,298 78,000 93,000 15,000 19.23%  Professional Services 2,470 8,400 8,900 500 5.95%  Other Expenses 9,554 9,100 10,050 950 10.44% 189,253 230,000 279,150 49,150 21.37% PROGRAM DESCRIPTION & OBJECTIVES: OPERATING COST ACTIVITIES: *Personal Services includes the wages and employment taxes for the Parks Department. *Supplies & Maintenance includes the operating supplies and maintenance for all park facilities. *Other Expenses includes the costs associated with equipment rental. Staff includes: Director of Public Works (10%), Parks/Golf Supervisor (50%), Maintenance Workers (5%), Public Works Support/Utility  Billing Specialist (10%) Parks Total 45200 The Parks & Recreation Department provides for the maintainance of the City's parks.  In addition, the city participates in a joint recreation  program with area organizations to ensure a community‐wide effort in providing adequate recreational facilities. 2021 General Fund Operating Budget Departmental Summary General Fund ‐ Parks ‐ Culture‐Recreation City of Orono - 2021 Budget Page 95 2019 Actual 2020 Budget 2021 Recommended Dollar Increase  (Decrease) % Increase  (Decrease) 101 Full‐Time Employees Regular 59,326 79,400 88,500 9,100 11.46% 102 Full‐Time Employees Overtime 1,366 0 0 0 N/A 103 Part‐Time Employees 0 0 17,700 17,700 N/A 104 Temporary/Seasonal Employees 0 15,700 16,700 1,000 6.37% 121 PERA 4,478 6,000 6,700 700 11.67% 122 FICA 4,362 7,300 9,400 2,100 28.77% 135 City Benefit Contribution 10,619 17,400 18,500 1,100 6.32% 151 Worker's Comp Insurance Prem 7,780 8,700 9,700 1,000 11.49% Total Personal Services 87,932 134,500 167,200 32,700 24.31% 212 Motor Fuels & Lubricants 108 0 0 0 N/A 221 Equipment Parts & Accessories 2,012 0 0 0 N/A 223 Bldg/Grounds Maint. Supplies 15,957 10,000 10,000 0 0.00% 225 Park Initiatives 8,590 10,000 10,000 0 0.00% 402 Repairs/Maint‐Auto Equip 1,203 0 0 0 N/A 403 Repairs/Maint‐Misc. Equip 871 0 0 0 N/A 404 Repairs/Maint‐Bldgs/Grounds 60,557 58,000 73,000 15,000 25.86% Total Supplies & Maintenance 89,298 78,000 93,000 15,000 19.23% 304 Engineering‐Consulting 0000N/A 305 GIS/Mapping 680 0 0 0 N/A 313 IT Services 840 1,000 1,000 0 0.00% 314 Fleet Services 0 6,300 6,300 0 0.00% 319 Professional Services 950 1,100 1,600 500 45.45% Total Professional Services 2,470 8,400 8,900 500 5.95% General Fund ‐ Parks ‐ Culture‐Recreation 45200 Personal Services Supplies & Maintenance Professional Services City of Orono 2021 Line Item Budget City of Orono - 2021 Budget Page 96 2019 Actual 2020 Budget 2021 Recommended Dollar Increase  (Decrease) % Increase  (Decrease) 321 Telephone 424 400 400 0 0.00% 331 Travel Expenses 6000N/A 352 Printing & Publishing 0 500 450 (50)‐10.00% 381 Gas & Electric 130 600 600 0 0.00% 415 Other Equipment Rentals 6,750 7,000 7,000 0 0.00% 416 Software Licensing 1,000 0 1,000 1,000 N/A 439 Meeting Expenses 0000N/A 441 Licenses & Taxes 403 500 500 0 0.00% 489 Other Miscellaneous Charges 841 100 100 0 0.00% 490 Contributions to Civic Org's 0000N/A Total Other Expenses 9,554 9,100 10,050 950 10.44% 189,253 230,000 279,150 49,150 21.37% 45200 City of Orono 2021 Line Item Budget Other Expenses Parks Total General Fund ‐ Parks ‐ Culture‐Recreation cont. City of Orono - 2021 Budget Page 97 2019 Actual 2020 Budget 2021 Recommended Dollar Increase  (Decrease) % Increase  (Decrease)  Personal Services 136,343 122,900 134,600 11,700 9.52%  Supplies & Maintenance 53,497 23,900 24,800 900 3.77%  Insurances 13,520 13,300 13,300 0 0.00%  Other Expenses 31,454 47,200 47,800 600 1.27%  Purchases for Resale 12,338 13,100 13,100 0 0.00% 247,153 220,400 233,600 13,200 5.99% PROGRAM DESCRIPTION & OBJECTIVES: The Golf Course provides a golfing opportunity for both residents and visitors to the City. OPERATING COST ACTIVITIES: Personal Services include the wages and employment taxes for the Golf Course. Staff includes: Parks/Golf Supervisor (50%), Clubhouse Manager, Seasonal Golf Course Employees Other Expenses include utilities, golf cart rental, and advertising. 2021 General Fund Operating Budget Departmental Summary General Fund ‐ Culture‐Recreation ‐ Golf Course Golf Course Total 45210 Supplies & Maintenance include general operating supplies for the course and equipment repairs and maintenance.  Purchase for Resale are items that are food, beverage, clothing and golf supplies that are sold in the clubhouse. Insurances include the golf courses share of the City's general, liability, liquor, and auto insurance polices. City of Orono - 2021 Budget Page 98 2019 Actual 2020 Budget 2021 Recommended Dollar Increase  (Decrease) % Increase  (Decrease) 101 Full‐Time Employees Regular 37,190 38,200 39,300 1,100 2.88% 102 Full‐Time Employees Overtime 721 0 0 0 N/A 103 Part‐Time Employees 7,754 0 13,400 13,400 N/A 104 Temporary/Seasonal Employees 67,375 58,200 52,900 (5,300)‐9.11% 121 PERA 3,194 2,900 4,000 1,100 37.93% 122 FICA 4,079 7,400 8,100 700 9.46% 135 City Benefit Contribution 8,079 8,800 8,800 0 0.00% 142 Unemployment Benefit Payments 11 0 0 0 N/A 143 OPEB Expense 0000N/A 151 Worker's Comp Insurance Prem 7,940 7,400 8,100 700 9.46% Total Personal Services 136,343 122,900 134,600 11,700 9.52% 201 Office supplies 659 300 400 100 33.33% 212 Motor Fuels & Lubricants 135 0 0 0 N/A 221 Equipment Parts & Accessories 10,562 0 0 0 N/A 223 Bldg/Grounds Maint. Supplies 21,103 8,500 8,000 (500)‐5.88% 226 Clothing & personal equipment 548 500 500 0 0.00% 240 Small Tools and Minor Equip 972 500 500 0 0.00% 401 Repairs/Maint‐Office Equip 75 100 100 0 0.00% 402 Repairs/Maint‐Auto Equip 738 0 0 0 N/A 403 Repairs/Maint‐Misc. Equip 5,701 0 0 0 N/A 404 Repairs/Maint‐Bldgs/Grounds 13,004 14,000 15,300 1,300 9.29% Total Supplies & Maintenance 53,497 23,900 24,800 900 3.77% City of Orono 2021 Line Item Budget General Fund ‐ Culture‐Recreation ‐ Golf Course Personal Services Supplies & Maintenance 45210 City of Orono - 2021 Budget Page 99 2019 Actual 2020 Budget 2021 Recommended Dollar Increase  (Decrease) % Increase  (Decrease) 361 General Liability Ins 7,500 7,400 7,400 0 0.00% 362 Umbrella Liability Ins 1,500 1,500 1,500 0 0.00% 365 Boiler & Machinery Ins 350 400 400 0 0.00% 366 Property Insurance 2,650 2,700 2,700 0 0.00% 367 Equipment Floaters Ins 350 300 300 0 0.00% 368 Automotive Insurance 370 400 400 0 0.00% 369 Dram Shop Insurance 800 600 600 0 0.00% Total Insurances 13,520 13,300 13,300 0 0.00% 304 Engineering‐Consulting 0000N/A 312 Bank Fees 3,666 3,700 3,700 0 0.00% 313 IT Services 1,640 2,000 2,000 0 0.00% 314 Fleet Services 0 14,100 14,100 0 0.00% 319 Professional Services 919 0 0 0 N/A 321 Telephone 4,325 3,300 4,000 700 21.21% 331 Travel Expenses 0000N/A 340 General Advertising 0 1,800 1,800 0 0.00% 352 Printing & Publishing 1,650 1,300 1,700 400 30.77% 381 Gas & Electric 6,619 8,700 8,700 0 0.00% 415 Other Equipment Rentals 11,028 11,000 11,000 0 0.00% 433 Memberships 165 300 0 (300)‐100.00% 437 Training & Development 863 200 0 (200)‐100.00% 440 Special Equipment Replacement 0000N/A 441 Licenses & Taxes 353 600 600 0 0.00% 489 Other Miscellaneous Charges 227 200 200 0 0.00% Total Other Expenses 31,454 47,200 47,800 600 1.27% City of Orono 2021 Line Item Budget General Fund ‐ Culture‐Recreation ‐ Golf Course cont. 45210 Insurances Other Expenses City of Orono - 2021 Budget Page 100 2019 Actual 2020 Budget 2021 Recommended Dollar Increase  (Decrease) % Increase  (Decrease) 090 PURCHASES FOR RESALE 0000N/A 091 Beer For Resale 4,263 3,800 3,800 0 0.00% 092 Soft Drinks For Resale 2,503 3,600 3,600 0 0.00% 093 Concessions For Resale‐Txbl 0 1,500 1,500 0 0.00% 094 Concessions For Resale‐NonTax 3,208 2,300 2,300 0 0.00% 095 Pro Shop Items For Resale 2,365 1,900 1,900 0 0.00% 099 Other For Resale 0000N/A Total Purchases for Resale 12,338 13,100 13,100 0 0.00% 247,153 220,400 233,600 13,200 5.99% Purchases for Resale Golf Course Total General Fund ‐ Culture‐Recreation ‐ Golf Course cont. City of Orono 2021 Line Item Budget 45210 City of Orono - 2021 Budget Page 101 2019 Actual 2020 Budget 2021 Recommended Dollar Increase  (Decrease) % Increase  (Decrease)  Personal Services 4,264 11,600 11,600 0 0.00%  Supplies & Maintenance 124 300 300 0 0.00%  Insurances 0 100 100 0 0.00%  Other Expenses 1,431 1,100 1,100 0 0.00% 5,820 13,100 13,100 0 0.00% PROGRAM DESCRIPTION & OBJECTIVES: The Brush Site provides a place for residents and contractors to drop off tree branches and brush. OPERATING COST ACTIVITIES: Personal Services include the wages and employment taxes for the Brush Site. Staff includes: Brush Site Attendant Insurances include the brush site's share of the City's general insurance polices. Brush Site 2021 General Fund Operating Budget Departmental Summary Brush Site Total 45220 Supplies & Maintenance include general operating supplies for repair and maintenance of the brush site. Other Expenses include convenience fee, IT services, insurance, gas/electricity, repairs/maintenance and equipment rental. City of Orono - 2021 Budget Page 102 2019 Actual 2020 Budget 2021 Recommended Dollar Increase  (Decrease) % Increase  (Decrease) 104 Temporary/Seasonal Employees 4,167 10,800 10,800 0 0.00% 122 FICA 97 800 800 0 0.00% Total Personal Services 4,264 11,600 11,600 0 0.00% 223 Bldg/Grounds Maint. Supplies 124 300 300 0 0.00% 312 Bank Fees 12 0 0 0 N/A 313 IT Services 0 300 300 0 0.00% 361 General Liability Ins 0 100 100 0 0.00% 381 Gas & Electric 149 300 300 0 0.00% 404 Repairs/Maint‐Bldgs/Grounds 871 500 500 0 0.00% 415 Other Equipment Rentals 399 0 0 0 N/A Total Other Expenses 1,556 1,500 1,500 0 0.00% 5,820 13,100 13,100 0 0.00%Brush Site Total Other Expenses City of Orono 2021 Line Item Budget Brush Site 45220 Personal Services City of Orono - 2021 Budget Page 103 2019 Actual 2020 Budget 2021 Recommended Dollar Increase  (Decrease) % Increase  (Decrease)  Personal Services 46,792 41,000 41,000 0 0.00%  Professional Services 88,189 87,500 88,000 500 0.57% 134,981 128,500 129,000 500 0.39% PROGRAM DESCRIPTION & OBJECTIVES: OPERATING COST ACTIVITIES  (Reimbursed): *Personal Services include Police Officer overtime wages for security work and/or traffic control. *Professional Services include legal and engineering review expense for land use applications. Special Services‐Consulting & Police Total 43280 2021 General Fund Operating Budget Departmental Summary General Fund ‐ Special Services ‐Consulting & Police The Special Services Department provides a separate 'cost center' for tracking city‐provided consulting and Police special service details.   Orono residentswho apply for land use variations are subject to be billed for any additional staff, legal, and engineering time that is spent  reviewing their application.  Thesecharges are recorded in this departmental budget, and the applicants are subsequently billed for this  additional time.  Orono businesses or residentswho wish to contract with the city for Police security or traffic control are billed for the  officers time.  The City's costs are recorded in this departmentalbudget, and are offset by the revenues received from the requesting  parties. City of Orono - 2021 Budget Page 104 2019 Actual 2020 Budget 2021 Recommended Dollar Increase  (Decrease) % Increase  (Decrease) 102 Full‐Time Employees Overtime 40,758 35,000 35,000 0 0.00% 121 PERA 5,536 2,600 2,600 0 0.00% 122 FICA 498 2,700 2,700 0 0.00% 135 City Benefit Contribution 0000N/A 151 Worker's Comp Insurance Prem 0 700 700 0 0.00% Total Personal Services 46,792 41,000 41,000 0 0.00% 304 Engineering‐Consulting 66,371 73,000 70,000 (3,000)‐4.11% 307 Legal‐Consulting 18,920 14,500 18,000 3,500 24.14% 319 Professional Services 2,898 0 0 0 N/A 800 Special Projects, Contingency 0000N/A Total Professional Services 88,189 87,500 88,000 500 0.57% Special Services‐ 134,981 128,500 129,000 500 0.39% Personal Services Professional Services Consulting & Police Total City of Orono 2021 Line Item Budget General Fund ‐ Special Services ‐Consulting & Police 43280 City of Orono - 2021 Budget Page 105 2019 Actual 2020 Budget 2021 Recommended Dollar Increase  (Decrease) % Increase  (Decrease)  Personal Services 00 00N/A  Professional Services 00 00N/A  Other Expenses 0 0 0 0 N/A  Capital & Transfers 1,121,339 400,000 400,000 0 0.00%  Contingency Items 33,405 30,000 30,000 0 0.00% Special Projects‐Contingencies Total 1,154,744 430,000 430,000 0 0.00% PROGRAM DESCRIPTION & OBJECTIVES: OPERATING COST ACTIVITIES: * Transfers are as follows:       Improvement and Equipment Outlay Fund 300,000       2014 Improvement Bond Debt Service Fund 100,000 400,000 9,294,527 9,143,200 9,260,500 117,300 1.28% The Special Projects & Contingencies Department includes funds allocated for planned projects or events that benefit the entire city, and  for any unforseen circumstances that produces additional expenses.  This department also provides for operating transfers to other funds.  *Contingency Items is an amount for unbudgeted and unforseen items that require action before the next budget cycle. GENERAL FUND TOTAL 2021 General Fund Operating Budget 43290 Departmental Summary General Fund ‐ Special Projects‐Contingencies City of Orono - 2021 Budget Page 106 2019 Actual 2020 Budget 2021 Recommended Dollar Increase  (Decrease) % Increase  (Decrease) 101 Full‐Time Employees Regular 0000N/A Total Personal Services 0000N/A 304 Engineering‐Consulting 0000N/A 319 Professional Services 0000N/A Total Professional Services 0000N/A 489 Other Miscellaneous Charges 0000N/A Total Other Expenses 0000N/A 510 Land 0000N/A 720 Operating Transfers 1,121,339 400,000 400,000 0 0.00% Total Capital & Transfers 1,121,339 400,000 400,000 0 0.00% 800 Special Projects, Contingency 33,405 30,000 30,000 0 0.00% Total Contingency Items 33,405 30,000 30,000 0 0.00% 1,154,744 430,000 430,000 0 0.00% 9,294,527 9,143,200 9,260,500 117,300 1.28% Capital & Transfers City of Orono 2021 Line Item Budget 43290 Contingency Items Special Projects‐Contingencies Total GENERAL FUND TOTAL General Fund ‐ Special Projects‐Contingencies Personal Services Professional Services Other Expenses City of Orono - 2021 Budget Page 107 City of Orono - 2021 Budget Page 108 2019 Actual 2020 Budget 2021 Recommended Dollar Increase  (Decrease) % Increase  (Decrease)  Personal Services 329,697 255,500 270,800 15,300 5.99%  Supplies & Maintenance 163,798 125,400 151,500 26,100 20.81%  Professional Services 33,115 53,500 53,400 (100)‐0.19%  Insurances 7,070 7,800 7,800 0 0.00%  Other Expenses 456,224 491,050 505,100 14,050 2.86% Operating Transfers 55,000 55,000 55,000 0 0.00% Total Water Operating Fund 1,044,904 988,250 1,043,600 55,350 5.60% PROGRAM DESCRIPTION & OBJECTIVES: OPERATING COST ACTIVITIES: Water *Professional Services' includes a portion of the costs related to the City's annual financial audit, IT Services, and engineering  consulting costs related to water projects. *Other Expenses' include power supply costs, purchased water from the City of Wayzata, and a depreciation charge on the fixed  assests. 2021 Enterprise Fund Operating Budget Departmental Summary 49400 Staff includes: Director of Public Works (20%), Public Works Supervisors (25%), Maintenance Workers (25%) and a Seasonal  Employee. The Water Operating Fund provides for the funding of the City's water distribution system.  These funds are accounted for  separately and are designed to be funded primarily through water rates. *Included in 'Personal Services' are the wages and employment taxes for the Water Department Staff. *Supplies & Maintenance' includes the operating supplies and maintenance for the water distribution system. City of Orono - 2021 Budget Page 109 2019 Actual 2020 Budget 2021 Recommended % Increase  (Decrease) Full‐Time Employees Regular 207,157 152,700 172,000 12.64% Full‐Time Employees Overtime 8,436 10,000 10,000 0.00% Part‐Time Employees 14,651 15,900 0 ‐100.00% Temporary/Seasonal Employees 0 5,200 15,900 205.77% PERA 14,170 13,400 13,700 2.24% FICA 14,449 14,100 15,100 7.09% City Benefit Contribution 27,373 34,300 34,300 0.00% OPEB Expense 7,974 1,800 0 ‐100.00% Worker's Comp Insurance Prem 8,810 8,100 9,800 20.99% Total Personal Services 303,021 255,500 270,800 5.99% Office supplies 126 100 100 0.00% Books & Periodicals 0 0 0 N/A Motor Fuels & Lubricants 4,680 0 0 N/A Chemicals and Chem Products 40,829 37,300 42,100 12.87% Equipment Parts & Accessories 169 0 0 N/A Vehicle Equipment & Parts 1,150 0 0 N/A Bldg/Grounds Maint. Supplies 4,098 1,400 3,700 164.29% Clothing & personal equipment 95 1,000 1,000 0.00% Utility System Maint. Supplies 16,317 27,900 27,900 0.00% Small Tools and Minor Equip 279 2,500 2,500 0.00% Repairs/Maint‐Office Equip 0 200 200 0.00% Repairs/Maint‐Auto Equip 0 0 0 N/A Repairs/Maint‐Misc. Equip 6,796 0 0 N/A Repairs/Maint‐Bldgs/Grounds 769 4,000 4,000 0.00% Repairs/Maint‐Watermains/plant 88,491 51,000 70,000 37.25% Software Licensing 0 0 0 N/A Total Supplies & Maintenance 163,798 125,400 151,500 20.81% City of Orono 2021 Line Item Budget Water Operating Fund ‐ Enterprise ‐ Water Personal Services Supplies & Maintenance 49400 City of Orono - 2021 Budget Page 110 2019 Actual 2020 Budget 2021 Recommended % Increase  (Decrease) Auditing and Acct'g Services 5,000 5,000 5,000 0.00% Engineering‐Consulting 1,090 10,600 7,000 ‐33.96% GIS/Mapping 8,466 2,500 6,000 140.00% Legal‐Consulting 588 3,000 3,000 0.00% Bank Fees 6,589 3,700 3,700 0.00% IT Services 11,300 17,300 17,300 0.00% Fleet Services 0 11,400 11,400 0.00% Professional Services 82 0 0 N/A Total Professional Services 33,115 53,500 53,400 ‐0.19% General Liability Ins 3,000 3,600 3,600 0.00% Umbrella Liability Ins 0 0 0 N/A Property Insurance 3,440 3,500 3,500 0.00% Equipment Floaters Ins 330 400 400 0.00% Automotive Insurance 300 300 300 0.00% Total Insurances 7,070 7,800 7,800 0.00% City of Orono 2021 Line Item Budget Water Operating Fund ‐ Enterprise ‐ Water cont. Professional Services Insurances 49400 City of Orono - 2021 Budget Page 111 2019 Actual 2020 Budget 2021 Recommended % Increase  (Decrease) Telephone 4,598 3,400 4,900 44.12% Postage 888 800 900 12.50% General Advertising 0 0 0 N/A Printing & Publishing 885 400 900 125.00% Gas & Electric 78,997 79,700 80,700 1.25% Water Utilities 959 1,000 1,000 0.00% Intergovernmental Services 33,084 38,800 38,800 0.00% Depreciation & Amortization 187,360 225,800 231,400 2.48% Other Equipment Rentals 260 0 300 N/A Memberships 1,393 650 800 23.08% Training & Development 5,343 3,500 5,200 48.57% Administrative Charge 102,660 107,400 110,600 2.98% Licenses & Taxes 544 3,500 3,500 0.00% Fines & Penalties 0 0 0 N/A Other Miscellaneous Charges 19,374 4,000 4,000 0.00% Total Other Expenses 436,345 468,950 483,000 3.00% Total Operating Expenses 943,349 911,150 966,500 6.07% Bond Interest 19,879 22,100 22,100 0.00% Other Long‐Term Oblig Interest 0 0 0 N/A Other Interest Expense 0 0 0 N/A Operating Transfers 55,000 55,000 55,000 0.00% Total Non‐Operating Expenses 74,879 77,100 77,100 0.00% Total Water Fund 1,018,228 988,250 1,043,600 5.60% Other Expenses Non‐Operating Expenses 2021 Line Item Budget Water Operating Fund ‐ Enterprise ‐ Water cont. City of Orono 49400 City of Orono - 2021 Budget Page 112 2019 Actual 2020 Budget 2021 Recommended Dollar Increase  (Decrease) % Increase  (Decrease)  Personal Services 247,432 281,500 291,100 9,600 3.41%  Supplies & Maintenance 159,313 238,200 238,500 300 0.13%  Professional Services 44,079 59,800 59,800 0 0.00%  Insurances 12,730 14,000 14,000 0 0.00%  Other Expenses 1,080,681 1,197,700 1,300,500 102,800 8.58%  Operating Transfers 110,000 115,000 115,000 0 0.00% Total Sewer Operating Fund 1,654,234 1,906,200 2,018,900 112,700 5.91% PROGRAM DESCRIPTION & OBJECTIVES: OPERATING COST ACTIVITIES: *Other Expenses' includes the City's disposal charges with the MCES, and a depreciation charge on fixed assets. Staff includes: Director of Public Works (30%), Public Works Supervisors (25%), Maintenance Workers (25%) *Supplies & Maintenance' includes the operating supplies and maintenance for the sewer collection system. Sewer 2021 Enterprise Fund Operating Budget Departmental Summary 49450 The Sewer Operating Fund provides for the funding of the City's sewer collection system.  The funds  are accounted for separately  and are designedto be funded primarily through sewer unit charges. *Professional Services' includes a portion of the costs related to the City's annual financial audit, IT Services, and engineering  consulting costs related to sewer projects. *Included in 'Personal Services' are the wages and employment taxes for the Sewer Department Staff. City of Orono - 2021 Budget Page 113 2019 Actual 2020 Budget 2021 Recommended % Increase  (Decrease) Full‐Time Employees Regular 165,261 163,800 183,500 12.03% Full‐Time Employees Overtime 4,622 12,000 12,000 0.00% Part‐Time Employees 14,651 15,900 0 ‐100.00% Temporary/Seasonal Employees 11,310 10,400 15,900 52.88% PERA 14,298 14,400 14,700 2.08% FICA 14,252 15,500 16,200 4.52% City Benefit Contribution 31,793 35,400 35,400 0.00% OPEB Expense 24,400 2,200 0 ‐100.00% Worker's Comp Insurance Prem 12,750 11,900 13,400 12.61% Total Personal Services 293,338 281,500 291,100 3.41% Office supplies 629 400 400 0.00% Motor Fuels & Lubricants 9,059 0 0 N/A Equipment Parts & Accessories 5,402 0 0 N/A Vehicle Equipment & Parts 3,014 0 0 N/A Bldg/Grounds Maint. Supplies 707 2,700 2,700 0.00% Clothing & personal equipment 124 1,500 1,500 0.00% Utility System Maint. Supplies 1,944 7,500 7,800 4.00% Small Tools and Minor Equip 883 2,500 2,500 0.00% Repairs/Maint‐Office Equip 0 1,100 1,100 0.00% Repairs/Maint‐Auto Equip 1,440 0 0 N/A Repairs/Maint‐Misc. Equip 5,161 0 0 N/A Repairs/Maint‐Bldgs/Grounds 0 500 500 0.00% Repairs/Maint‐Swr lines/lifts 130,949 147,000 147,000 0.00% Repairs/Maint‐I&I Reduction 0 75,000 75,000 0.00% Total Supplies & Maintenance 159,313 238,200 238,500 0.13% Supplies & Maintenance Personal Services Sewer Operating Fund ‐ Enterprise ‐ Sewer City of Orono 2021 Line Item Budget 49450 City of Orono - 2021 Budget Page 114 2019 Actual 2020 Budget 2021 Recommended % Increase  (Decrease) Auditing and Acct'g Services 6,500 6,500 6,500 0.00% Engineering‐Consulting 6,102 11,000 5,000 ‐54.55% GIS/Mapping 10,627 4,000 10,000 150.00% Legal‐Consulting 305 1,000 1,000 0.00% Bank Fees 3,295 3,500 3,500 0.00% IT Services 17,250 17,300 17,300 0.00% Fleet Services 0 16,500 16,500 0.00% Professional Services 0 0 0 N/A Total Professional Services 44,079 59,800 59,800 0.00% General Liability Ins 9,000 9,900 9,900 0.00% Umbrella Liability Ins 0 0 0 N/A Property Insurance 2,550 2,800 2,800 0.00% Equipment Floaters Ins 330 300 300 0.00% Automotive Insurance 850 1,000 1,000 0.00% Total Insurances 12,730 14,000 14,000 0.00% 49450 City of Orono 2021 Line Item Budget Sewer Operating Fund ‐ Enterprise ‐ Sewer cont. Professional Services Insurances City of Orono - 2021 Budget Page 115 2019 Actual 2020 Budget 2021 Recommended % Increase  (Decrease) Telephone 3,048 4,000 4,000 0.00% Postage 2,137 1,700 1,700 0.00% Travel Expenses 0 100 0 ‐100.00% General Advertising 0 0 0 N/A Printing & Publishing 420 300 300 0.00% Gas & Electric 29,094 35,000 30,000 ‐14.29% Water Utilities 0 0 0 N/A MCES‐Sewer 555,364 619,400 700,600 13.11% Intergovernmental Services 53,839 65,700 65,700 0.00% Depreciation & Amortization 326,642 353,600 377,100 6.65% Other Equipment Rentals 0 1,000 1,000 0.00% Software Licensing 0 0 0 N/A Memberships 253 1,200 1,200 0.00% Training & Development 4,089 4,500 4,500 0.00% Administrative Charge 102,660 107,400 110,600 2.98% Meeting Expenses 0 0 0 N/A Special Equipment Replacement 0 0 0 N/A Licenses & Taxes 412 300 300 0.00% Other Miscellaneous Charges 2,724 3,500 3,500 0.00% Total Other Expenses 1,080,681 1,197,700 1,300,500 8.58% Total Operating Expenses 1,590,140 1,791,200 1,903,900 6.29% 49450 City of Orono 2021 Line Item Budget Other Expenses Sewer Operating Fund ‐ Enterprise ‐ Sewer cont. City of Orono - 2021 Budget Page 116 2019 Actual 2020 Budget 2021 Recommended % Increase  (Decrease) Other Interest Expense 0 0 0 N/A Operating Transfers 110,000 115,000 115,000 0.00% Total Non‐Operating Expenses 110,000 115,000 115,000 0.00% Total Sewer Fund 1,700,140 1,906,200 2,018,900 5.91% 49450 City of Orono 2021 Line Item Budget Sewer Operating Fund ‐ Enterprise ‐ Sewer cont. Non‐Operating Expenses City of Orono - 2021 Budget Page 117 2019 Actual 2020 Budget 2021 Recommended Dollar Increase  (Decrease) % Increase  (Decrease)  Personal Services 18,220 10,200 10,800 600 5.88%  Supplies & Maintenance 0000N/A  Professional Services 141,005 193,500 202,550 9,050 4.68% Insurances 0 0 500 500 0  Other Expenses 14,497 13,000 18,000 5,000 38.46% 173,723 216,700 231,850 15,150 6.99% PROGRAM DESCRIPTION & OBJECTIVES: OPERATING COST ACTIVITIES: Recycling Recycling Total The city participates in a program to provide curbside recycling service.  In addition, the city also provides a spring cleanup day  for residents who have materials unsuitable for curbside recycling pickup. *Personal Services are a portion of the City Clerk's wages and the wages for City Staff whom participate in the spring cleanup. *Other Expenses includes disposal of items collected during the clean up day and materials related to organics recycling. *'Professional Services includes the costs associated with recycling collection. 49500 2021 Enterprise Fund Operating Budget Departmental Summary City of Orono - 2021 Budget Page 118 2019 Actual 2020 Budget 2021 Recommended % Increase  (Decrease) Full‐Time Employees Regular 11,487 7,200 7,700 6.94% Full‐Time Employees Overtime 0 0 0 N/A Part‐Time Employees 0 0 0 N/A Temporary/Seasonal Employees 0 0 0 N/A PERA 863 500 600 20.00% FICA 862 600 600 0.00% City Benefit Contribution 1,212 1,800 1,800 0.00% Worker's Comp Insurance Prem 50 100 100 0.00% Total Personal Services 14,473 10,200 10,800 5.88% Equipment Parts & Accessories 0 0 0 N/A Repairs/Maint‐Office Equip 0 0 0 N/A Total Supplies & Maintenance 0 0 0 N/A Legal‐Consulting 620 0 0 N/A IT Services 0 2,500 2,550 2.00% Contract Recycling Pickup 140,385 191,000 200,000 4.71% Professional Services 0 0 0 N/A Total Professional Services 141,005 193,500 202,550 4.68% 49500 Professional Services City of Orono 2021 Line Item Budget Contracted Recycling Fund ‐ Recycling ‐ Enterprise Personal Services Supplies & Maintenance City of Orono - 2021 Budget Page 119 2019 Actual 2020 Budget 2021 Recommended % Increase  (Decrease) Printing & Publishing 0 0 0 N/A General Liability Ins 0 0 500 N/A Software Licensing 0 0 0 N/A Administrative Charge 625 2,500 2,500 0.00% Spring,Fall,X‐mas Cleanup 0 10,000 15,000 50.00% Organics Recycling 0 500 500 0.00% Total Other Expenses 625 13,000 18,500 42.31% Total Recycling Fund 156,104 216,700 231,850 6.99% 49500 Contracted Recycling Fund ‐ Recycling ‐ Enterprise cont. City of Orono 2021 Line Item Budget Other Expenses City of Orono - 2021 Budget Page 120 2019 Actual 2020 Budget 2021 Recommended Dollar Increase  (Decrease) % Increase  (Decrease)  Personal Services 225,471 132,500 151,100 18,600 14.04%  Supplies & Maintenance 23,912 21,500 22,500 1,000 4.65%  Professional Services 23,565 37,200 37,200 0 0.00%  Insurances 3,230 3,900 3,900 0 0.00%  Other Expenses 160,443 177,900 190,100 12,200 6.86% Total Stormwater Operating Fund 436,620 373,000 404,800 31,800 8.53% PROGRAM DESCRIPTION & OBJECTIVES: OPERATING COST ACTIVITIES: Stormwater The Stormwater Operating Fund provide sfunding to for the City's Stormwater responsibilities.  The funds are accounted for  separately and are designedto be funded primarily through stormwater  service and trunk fees. *Included in 'Personal Services' are the wages and employment taxes for the Public Works Department Staff. Staff includes: Director of Public Works (10%), Public Works Supervisors (25%), Maintenance Workers (5%) * Supplies & Maintenance includes material associated with culvert maintenance. *Other Expenses includes depreciation and an administrative charge and the annual LMCD Levy. *Professional Services includes engineering and annual audit charges. 2020 Enterprise Fund Operating Budget Departmental Summary 49910 City of Orono - 2021 Budget Page 121 2019 Actual 2020 Budget 2021 Recommended % Increase  (Decrease) Full‐Time Employees Regular 114,086 81,100 95,300 17.51% Full‐Time Employees Overtime 6,415 0 0 N/A Temporary/Seasonal Employees 0 15,600 15,600 0.00% PERA 7,131 6,100 7,100 16.39% FICA 7,255 7,400 8,500 14.86% City Benefit Contribution 14,164 15,300 17,500 14.38% OPEB Expense 24,197 500 0 ‐100.00% Worker's Comp Insurance Prem 6,600 6,500 7,100 9.23% Total Personal Services 179,849 132,500 151,100 14.04% Office supplies 0 0 0 N/A Equipment Parts & Accessories 1,552 0 0 N/A Bldg/Grounds Maint. Supplies 0 0 0 N/A Utility System Maint. Supplies 5,862 5,000 6,000 20.00% Small Tools and Minor Equip 987 1,000 1,000 0.00% Repairs/Maint‐Office Equip 0 1,500 1,500 0.00% Repairs/Maint‐Auto Equip 4,000 0 0 N/A Repairs/Maint‐Bldgs/Grounds 0 0 0 N/A Repairs/Maint‐Swr lines/lifts 11,511 14,000 14,000 0.00% Total Supplies & Maintenance 23,912 21,500 22,500 4.65% City of Orono 2021 Line Item Budget Storm Water Utility Op Fund ‐ Enterprise ‐ Storm Water 49910 Personal Services Supplies & Maintenance City of Orono - 2021 Budget Page 122 2019 Actual 2020 Budget 2021 Recommended % Increase  (Decrease) Auditing and Acct'g Services 3,500 3,500 3,500 0.00% Engineering‐Consulting 8,935 8,000 6,000 ‐25.00% GIS/Mapping 7,765 6,000 8,000 33.33% Legal‐Consulting 1,365 1,000 1,000 0.00% IT Services 2,000 5,000 5,000 0.00% Fleet Services 0 13,700 13,700 0.00% Professional Services 0 0 0 N/A Total Professional Services 23,565 37,200 37,200 0.00% General Liability Ins 2,950 3,500 3,500 0.00% Umbrella Liability Ins 0 0 0 N/A Equipment Floaters Ins 280 300 300 0.00% Automotive Insurance 0 100 100 0.00% Insurance Agent of Record 0 0 0 N/A Insurance Deductibles 0 0 0 N/A Total Insurances 3,230 3,900 3,900 0.00% 49910 City of Orono 2021 Line Item Budget Storm Water Utility Op Fund ‐ Enterprise ‐ Storm Water cont. Insurances Professional Services City of Orono - 2021 Budget Page 123 2019 Actual 2020 Budget 2021 Recommended % Increase  (Decrease) Postage 1,919 1,700 1,800 5.88% Travel Expenses 0 0 0 N/A Printing & Publishing 24 0 0 N/A Depreciation & Amortization 46,257 62,000 71,500 15.32% Other Equipment Rentals 0 0 1,000 N/A Software Licensing 2,000 0 0 N/A Memberships 58,914 59,000 59,000 0.00% Training & Development 0 500 500 0.00% Administrative Charge 51,330 53,700 55,300 2.98% Licenses & Taxes 0 0 0 N/A Other Miscellaneous Charges 0 1,000 1,000 0.00% Total Other Expenses 160,443 177,900 190,100 6.86% Total Operating Expenses 390,998 373,000 404,800 8.53% Easements & Rights of Way 0 0 0 N/A Storm Sewer Utility Const 0 0 0 N/A Total Non‐Operating Expenses 0 0 0 N/A Total Stormwater Fund 390,998 373,000 404,800 8.53% Storm Water Utility Op Fund ‐ Enterprise ‐ Storm Water cont. Other Expenses Non‐Operating Expenses 49910 City of Orono 2021 Line Item Budget City of Orono - 2021 Budget Page 124 2019 Actual 2020 Budget 2021 Recommended Dollar Increase  (Decrease) % Increase  (Decrease)  Personal Services 39,342 20,600 20,800 200 0.97%  Supplies & Maintenance 0000N/A  Professional Services 5,560 16,000 16,000 0 0.00%  Other Expenses 46,957 34,600 37,500 2,900 8.38% Total Sewer Operating Fund 91,859 71,200 74,300 3,100 4.35% PROGRAM DESCRIPTION & OBJECTIVES: OPERATING COST ACTIVITIES: *Included in 'Personal Services' are 10% of the wages for the IT Tech *Professional Services includes IT Services and audit charges. * Other Expenses include webcasting/online content and an administrative charge to the General Fund Cable Franchise The Cable TV Fund was created to account for the Franchise fees that are collectected as part of the City's Franchise agreement  with Mediacom.   Expenditures include costs associated with recording and streaming meetings. 2020 Enterprise Fund Operating Budget Departmental Summary 49840 City of Orono - 2021 Budget Page 125 2019 Actual 2020 Budget 2021 Recommended % Increase  (Decrease) Full‐Time Employees Regular 24,824 14,800 15,000 1.35% Full‐Time Employees Overtime 0 0 0 N/A PERA 1,862 1,100 1,100 0.00% FICA 1,903 1,100 1,100 0.00% City Benefit Contribution 1,647 3,500 3,500 0.00% Worker's Comp Insurance Prem 110 100 100 0.00% Total Personal Services 30,346 20,600 20,800 0.97% Auditing and Acct'g Services 2,000 2,000 2,000 0.00% Legal‐Consulting 0 0 0 N/A IT Services 0 10,000 10,000 0.00% Professional Services 3,560 4,000 4,000 0.00% Total Professional Services 5,560 16,000 16,000 0.00% Internet/Other Communications 36,589 30,000 25,000 ‐16.67% Repairs/Maint‐Office Equip 0 0 0 N/A Depreciation & Amortization 7,868 4,600 10,000 117.39% Administrative Charge 2,500 0 2,500 N/A Total Other Expenses 46,957 34,600 37,500 8.38% Total Operating Expenses 82,863 71,200 74,300 4.35% Total Cable TV Fund 82,863 71,200 74,300 4.35% Other Expenses Personal Services Professional Services City of Orono 2021 Line Item Budget Cable Franchise ‐ Cable Franchise 49840 City of Orono - 2021 Budget Page 126 2021 Authorized Request Change Comments General Government Administration 4 4 0 Finance 4 3 ‐1 Eliminated Utility Billing/Payroll Clerk position Total 8 7 ‐1 Public Safety Police Officers 28 28 0 2 Part‐time Patrol Officers (.5 each) Civilians 4 4 0 Code Enforcement 5 4 ‐1 Eliminated Building Official position Total 37 36 ‐1 Public Works General Fund Streets & Facilities 4 4 0 Parks 1 1 0 Golf/Park Supervisor (50%), 1 Seasonal Emp (0.5) Golf 0.5 0.5 0 Golf/Park Supervisor (50%) Seasonal 4.75 4.75 0 Clubhouse manager (0.5) & 17 Seasonal Emp (0.25  each) Enterprise Fund Water 2 2.5 0.5 PW Support/Utility Billing Specialist (0.5) Sewer 2.5 3 0.5 PW Support/Utility Billing Specialist (0.5), 1 Part‐time  employee (0.5) Storm Water 0.5 0.5 0 Total 15.25 16.25 1 Total 60.25 59.25 ‐1 2021 Personnel Budget Departmental Summary City of Orono - 2021 Budget Page 127 Public City Administrator • Fire • Building Official & Inspections • Engineer • Assessor • Auditor • Bond Counsel • Financial Advisor Advisory Commissions • Management Assistant • Municipal Services Support Rep • Accountant • IT Technician • Patrol Officers (20) • PT Patrol Officers (3) • CSO (1 FT, 1 PT) • Police Office Manager • Admin. Support Asst. (2) • Reserve Officers • Planning Commission • Park Commission • Police Advisory Commission • Long Lake Fire Advisory Commission • Hwy 12 Turnback Committee • Development Process Review Committee Public Works Director / City Engineer • Roads/Stormwater Supervisor • Sewer/Water Supervisor • Maintenance Staff (7) • Golf/Parks Supervisor • Public Works Support and Utility Billing Clerk • Seasonal Clubhouse Manager • Seasonal Staff • Custodian/Grounds Keeper Patrol Sgt. (4) Investigative Sgt (1) Deputy Chief • Senior Planner (vacant) • City Planner • Planning Assistant Legal-Civil and Prosecution Finance Director Contracted Services City Clerk Community Development Director Police Chief Mayor & Council City of Orono 2021 Organizational Chart City of Orono - 2021 Budget Page 128 MINUTES OF THE ORONO CITY COUNCIL MEETING Friday, November 13, 2020 12:00 o’clock p.m. _____________________________________________________________________________________ Page 1 of 1 ROLL CALL The Orono City Council met on the above-mentioned date with the following members present: Mayor Dennis Walsh, City Council Members Richard Crosby, III, Matt Johnson, and Aaron Printup. Representing Staff were City Administrator Dustin Rief and City Clerk Anna Carlson. Mayor Walsh called the meeting to order at 12:00 p.m., followed by the Pledge of Allegiance. CANVASSING BOARD 1. Certify Results of the November 3, 2020, Municipal Election Printup moved, Crosby seconded, to certify the 2020 General Election Results by approving Resolution No. 7139 VOTE: Ayes 4, Nays 0.. ADJOURNMENT Walsh moved, Printup seconded, to adjourn the meeting at 12:03 p.m. VOTE: Ayes 4, Nays 0. ATTEST: _____________________________________ _______________________________________ Anna Carlson, City Clerk Dennis Walsh, Mayor MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, November 23, 2020 6:00 o’clock p.m. _____________________________________________________________________________________ Page 1 of 7 ROLL CALL The Orono City Council met on the above-mentioned date with the following members present: Mayor Dennis Walsh, City Council Members Richard Crosby, III, Matt Johnson, Aaron Printup and Victoria Seals. Representing Staff were City Attorney Soren Mattick, Public Works Director/City Engineer Adam Edwards, Acting Finance Director Maggie Ung, and City Administrator Dustin Rief. Mayor Walsh called the meeting to order at 6:00 p.m., followed by the Pledge of Allegiance. APPROVAL OF AGENDA The Agenda was approved by consensus as presented. CONSENT AGENDA 1. City Council Meeting Minutes of November 9, 2020 2. Council Work Session Minutes of November 9, 2020 3. Claims/Bills 4. 2019 Transfer – Pavement Management This item was removed from the Consent Agenda. 5. Approval of Proposed 2021 Official Meetings Calendar This item was removed from the Consent Agenda. 6. Approval of Proposed Council Liaison to Planning Commission Meetings in 2021 7. Approval of Annual Liquor Licenses 8. Approval of Rental License 9. Approval of Resolution No. 7139 Designating Polling Locations for 2021 10. Approval of Recording Secretary Service Agreement – TimeSaver Off Site Secretarial 11. 2021 Public Works Plan This item was removed from the Consent Agenda. 12. Bederwood Park Sports Field Contract Closeout and Pay Application 5 – Final 13. Hennepin County Assessment Services Agreement This item was removed from the Consent Agenda. MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, November 23, 2020 6:00 o’clock p.m. _____________________________________________________________________________________ Page 2 of 7 CONSENT AGENDA – Continued Crosby moved, Johnson seconded, to approve the Consent Agenda as revised, with Items No. 4, 5, 11, and 13 removed. VOTE: Ayes 5, Nays 0. PUBLIC COMMENTS There were no public comments. CITY ATTORNEY REPORT 16. SECOND AMENDMENT DEDICATED CITY Mattick stated this is an item the Council discussed at their previous meeting and at the study session earlier this evening. He explained that the resolution for Council consideration expresses support for the second amendment in its fullest sense and supports the rights conferred by the second amendment. Walsh noted there was a member of the public that was here to comment on this item and asked them to come to the podium and state their name and address for the record. Brad Evans, 6041 Hermitage Trail, Minnestrista, thanked the Council for considering adoption of this resolution because, in this day and age, it takes a lot of guts to do something like this. He stated that they are law abiding citizens and as a member of the Minnetonka Sportsmen’s Club, he wanted to let the Council know that they appreciate and respect what this Council is doing with this resolution. Crosby read aloud the resolution language. Crosby moved, Johnson seconded, to adopt RESOLUTION NO. 7140, a Resolution Declaring Orono a Second Amendment Dedicated City. VOTE: Ayes 5, Nays 0. Walsh noted, as suggested by Councilmember Printup, every month the Council pulls up an item under the Bill of Rights, talks about it a little bit, and has a Resolution in support of each item. 2019 TRANSFER – PAVEMENT MANAGEMENT (formerly Consent Agenda item #4) Walsh stated that he is assuming the overage is what was planned for the roads budget for 2020 and asked if he was mistaken and it was actually for the roads budget for 2021. Edwards stated that the overage would be for the 2021 roads budget. Walsh stated that would mean the City is already starting out with $717,000 and then has about $125,000 with the cell tower revenue and about $641,000 in the pavement management levy. Rief noted there was $717,000 in the pavement management levy. Ung clarified that this is for the roads budget for 2020 and not 2021. MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, November 23, 2020 6:00 o’clock p.m. _____________________________________________________________________________________ Page 3 of 7 2019 TRANSFER – PAVEMENT MANAGEMENT – Continued Walsh confirmed that the transfer then is for the 2020 roads budget and noted that he believes for this situation, the City had planned for about $630,000 and this is an extra $80,000 or so above what the City thought they were going to have in the pavement management fund. He reviewed the funding included in the pavement management plan. Crosby moved, Printup seconded, to approve the 2019 Transfer – Pavement Management Plan, as presented. VOTE: Ayes 5, Nays 0. APPROVAL OF PROPOSED 2021 OFFICIAL MEETINGS CALENDAR (formerly Consent Agenda Item #5) Walsh noted spring break happens the week of March 22, 2021 and proposed that the March Council meeting be changed to March 29, 2021 so it wouldn’t overlap with spring break. Walsh moved, Printup seconded, to approve the 2021 official meeting calendar as amended to change the March 22, 2021 Council meeting to March 29, 2021 to avoid spring break. VOTE: Ayes 5, Nays 0. 2021 PUBLIC WORKS PLAN (formerly Consent Agenda Item #11) Walsh noted that this is a large document, but wanted to make sure that everyone recognized certain items within the Public Works budget. He stated that under the Capital budgets, the Pavement Management budget that is proposed for all the roads that the City is working on, is slated at $1,123,000. He stated the City is just a few hundred thousand dollars short of this amount and is hopeful that when revenue from permits and tax dollars come in, that will allow the City to get all the roads done. He noted that he would also like to touch on the metrics on page 5 of the plan where it discusses the goals to preserve and improve the City transportation system. He stated he would like to remove the target regarding miles of chip seal. He stated that, in his opinion, if the City is going to chip seal, they will do new roads. Walsh moved, Printup seconded, to approve the 2021 Public Works Plan and accept the attached proposals, as revised, removing the chip seal from the metrics. VOTE: Ayes 5, Nays 0. HENNEPIN COUNTY ASSESSMENT SERVICES AGREEMENT (formerly Consent Agenda Item #13) Walsh stated when Hennepin County was brought in, they talked to the City and then the City went out for bid, but because Orono is a little bit bigger city, there are not a lot of others that provide this service. He stated that just because they don’t exist now, does not mean there won’t be others, over time. He stated one ‘heartburn’ he had with this is that the County said they could do a one-year or a five-year contract and when asked what benefit there would be in doing a multi-year contract., the County replied there was no benefit to a multi-year contract. Walsh explained this is why he questioned why the City would sign a contract that was longer than a year. He stated at the time, no one else on the Council agreed with him, but he would like to revisit this issue. He would like to propose a one-year contract since there is no benefit in the pricing for signing a four- or five-year contract. He stated this gives the City the opportunity, if other services become available, to outsource and not be locked into a long-term contract with the County. Walsh MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, November 23, 2020 6:00 o’clock p.m. _____________________________________________________________________________________ Page 4 of 7 HENNEPIN COUNTY ASSESSMENT SERVICES AGREEMENT – Continued stated the County charges based on taxable value and not the amount of work that it takes. He suggested the City look at what other services and options may be available to the City next year and beyond for assessment services. Rief noted he had looked at the licensing requirements to be an assessor and there is only one other firm in the metro area. He noted this firm only has five employees and already services seven other cities. He explained that the City of Long Lake and the City of Medina uses this other firm and knows that they charge on a flat fee basis. He stated his concern is that the City keeps two County assessors busy 365 days a year. Walsh stated he understands those concerns because they are the same as they were when the previous contract was signed. He still feels that because there is no reason or benefit to signing a multi-year contract, he doesn’t think the City should lock itself into something rather than keeping its options open. He noted the City can keep renewing a year at a time, if necessary, because there is also no penalty for proceeding in this matter. Walsh moved, Seals seconded, to approve the Hennepin County Assessment Services Agreement for a term of 1 year. VOTE: Ayes 5, Nays 0. 16. SECOND AMENDMENT DEDICATED CITY (continued) Walsh noted a visitor had just entered the room and asked if he was here for a specific agenda item. The gentleman stated he was from the Minnetonka Sportsmen’s Club and had received a notification that the Council was going to discuss the Second Amendment. Walsh explained that the Council had passed the resolution in support of the Second Amendment earlier in the meeting. FINANCE DIRECTOR REPORT 14. THIRD QUARTER FINANCIAL REPORT Ung gave an overview of the Third Quarter Financial Report for 2020. She explained the City is on track to meet revenues for the year at 71.4%. She noted as a comparison, for 2019, at the end of the 2nd quarter, the City had revenues at 72.5%. She stated it is similar for the tax revenues with it being 48.8% of the budget for 2020 as compared to 52.1% from 2019. She noted typically, by the third quarter, Licenses and Permits have exceeded the budget; however, due to COVID-19, the City has only collected 76.42% of the budgeted revenue. She stated the Other Government Revenue is currently at 161% as compared to 53.1% in 2019, which is due to the CARES Act Grant funding that the City received in July. She explained that the Golf Course Revenue has also exceeded budget at 189% as compared to 98.8% in 2019. She stated the assumption is that COVID-19 played a big role in this change because of the restrictions on indoor social gatherings. She reviewed a graphical representation of the issued Building Permits issued and the Plan Check/Site Exam fee and noted that they had decreased this year. Johnson noted you need to take into account that the City had a big year both last year and the year before. MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, November 23, 2020 6:00 o’clock p.m. _____________________________________________________________________________________ Page 5 of 7 14. THIRD QUARTER FINANCIAL REPORT – Continued Crosby asked if the revenues were calculated for Building Permits at the time of the application. He would like to see how many dollars of open Building Permits there are in the City that have not yet been closed. Ung stated this information has not yet been collected. Crosby stated he thinks the vast majority are gathered at the time of application, but he would like to know how many open permits are still out there. Walsh stated the information in the report just goes through the end of September, so there will still be October, November, and possibly December for the fourth quarter. Johnson stated he would like to see how long the City’s permit cycle is because that may be a better indicator to help the Council forecast. He stated this information shows when the permits originate, but lots of things can happen and the permits are staying open. He noted this information will also speak to the workflow because this current information is not necessarily indicative of workflow since it only shows when they pulled the permit. Crosby stated he assumes this data would be fairly easy to pull through Citizen Serve. Ung reviewed the revenue comparison by quarters and explained that the City is just a little below last year for third quarter and reiterated they are still expecting to meet budget. She reviewed the expenditures and noted there are two departments that are trending over budget which are Mayor and Council, which is due to a change in cost for producing meeting minutes, but noted that it is a relatively small line item. Johnson noted he feels the new minutes vendor does not do a super job. Seals asked if that meant he wanted to investigate other possibilities for the minutes. Johnson stated the Council just renewed the contract on the Consent Agenda. Rief noted there are not a lot of options out there for contractors to take minutes in this capacity. Ung reiterated the Golf Course is over budget which is due to more maintenance and bank fees, but those expenditures are off-set with the higher revenue intake. She stated overall, the third quarter is looking good and she expects the City to finish the year off under budget. She reviewed the top vendors for the third quarter as well as year to date. Seals noted the Parks Commission has asked for a Master Plan for the golf course and suggested a meeting to be scheduled regarding this issue. Edwards noted they did one about four years ago but can revisit the issue if that is the desire. Walsh reviewed some of the items included in the master plan. MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, November 23, 2020 6:00 o’clock p.m. _____________________________________________________________________________________ Page 6 of 7 14. THIRD QUARTER FINANCIAL REPORT – Continued Seals suggested a work session meeting be scheduled to brainstorm and discuss what is already in the master plan and the business plan and see if the Council would like to change anything. She stated she would personally like to have a driving range but that would probably require buying land. MAYOR/COUNCIL REPORT Johnson reminded residents the City will be starting the time of sale sewer inspections soon. He stated he knows a letter has gone out but is not sure how widely this information has been communicated to the real estate community and hopes there will not be too many surprises. Crosby thanked City staff and the City Attorney for helping out with the Second Amendment resolution and thanked the Council for their support. He wished everyone a happy and safe Thanksgiving. Seals stated that she had nothing to report. Printup also wished everyone a safe and happy Thanksgiving. He stated a few years ago, around Thanksgiving, he told a story that is one of his favorites in American History that proves to him that God’s hand played a large part in America. He explained that pilgrims, around 1620, were not doing well and survival rates were low from the horrid conditions. When an American Indian boldly approached the pilgrims, they expected a fight was coming but instead he said, “Welcome! Do you have any beer?” The Pilgrims stress level went down and they realized that this was going to be a friendly encounter and replied, “No, but we have brandy.” This started the events of what led to what is now called Thanksgiving. Printup recommended people look up the American Indian called Samoset who was the one who approached the pilgrims and later brought his friend, Squanto to the village who spoke better English than he did. He stated that helped lead to the Declaration of Independence, the American Revolution, the beautiful Constitution, as well as the beautiful Bill of Rights. He stated that he felt the Council had a really good conversation surrounding the Second Amendment. On another note, Printup asked if staff could contact the local Chambers, including the Twin West Chamber, to find out what local government can do to help the local businesses right now. He would like to know what kinds of things can be done that go beyond the “Shop Local” mantra. Seals noted she read an article outlining ways small businesses can apply for local grants. She stated the soccer club has applied for one during the lockdown. Rief explained the article that came out today outlines that the County just approved $15,000,000 in granting for small businesses. He stated the City sent that information to business owners in the community so they will be aware of the options. Walsh also wished residents a happy and safe Thanksgiving. He stated if people have three families or twenty people over to their home for Thanksgiving, the Orono Police Department will not come knocking at their door and arrest residents. He stated they will not even be looking for that type of activity and will not be enforcing the edicts from Governor Walz. He stated normally he is traveling over Thanksgiving and this is the first year in a long time that he will eat at his own table with his children and is looking forward to that. He stated there appears to be snow and rain coming towards the end of the week and encouraged residents to drive safely. MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, November 23, 2020 6:00 o’clock p.m. _____________________________________________________________________________________ Page 7 of 7 CITY ADMINISTRATOR REPORT 15. APPROVAL OF THE PROFESSIONAL AGREEMENT FOR CITY ENGINEERING SERVICES Rief explained the City had engaged in a Request for Proposal (RFP) process for engineering services. He stated there were three applicants and the top two were WSB and Bolton & Menk and their proposals were very similar. He noted staff feels it makes the most sense to continue with Bolton & Menk and recommends maintaining their firm as the City’s partner for these services. Walsh stated he feels Bolton & Menk has done a good job with the City and staff seems to like the services that they have provided. Crosby moved, Printup seconded, to approve the Engineering Services Contract with Bolton & Menk. VOTE: Ayes 5, Nays 0. Rief noted with regard to video services, the City has recently struggled with some issues. He noted there was a lightning strike in late summer that impacted some video issues. He stated the City has done an upgrade due to the lightning strike, which means the City now has the capability to utilize YouTube or Facebook live video, which staff is exploring. He stated the cost with Granicus is around $7,500/year, so they are looking into alternative ways to handle video services which may be a cost savings for the City. Seals noted YouTube has just changed all their client agreements, which means they can literally do whatever they want with the videos. She stated her company had to cut ties with YouTube because of this change. She suggested staff look deeply into this issue and noted that, in general, if it seems like a good deal, it is not. Crosby noted much of tonight’s meeting probably would have been censored through that platform. Rief stated staff will take the Council comments into consideration as they review options. Johnson asked if the City had put out any RFPs for building inspections. Rief stated the RFP has been sent to six companies and he believes three or four potential firms have contacted the City. ADJOURNMENT Crosby moved, Printup seconded, to adjourn the meeting at 6:48 p.m. VOTE: Ayes 5, Nays 0. ATTEST: _____________________________________ _______________________________________ Anna Carlson, City Clerk Dennis Walsh, Mayor Orono City Council Work Session Minutes Monday, November 23, 2020 Council Chambers 5:00 p.m. PRESENT: Mayor Dennis Walsh, Council Members Richard F. Crosby II, Victoria Seals, Aaron Printup and Matt Johnson. Staff members present were City Administrator Dustin Rief, Police Chief Correy Farniok, Public Works Director/City Engineer Adam Edwards, Community Development Director Jeremy Barnhart, and City Clerk Anna Carlson. 1.Drug Paraphernalia City Administrator Dustin Rief opened discussion by requesting input from the Council in regards to what they would like to see done with the regulation of drug paraphernalia within Orono. City Attorney Soren Mattick presented a background about regulating drug paraphernalia. He noted that the Council has authority to create and choose to regulate it or not. There was discussion about the possibilities for future legalization of marijuana and what decisions the City may see overtime. Council Member Aaron Printup mentioned that he didn’t think that Orono would want to allow drug paraphernalia in the City. Council member Richard F. Crosby II agreed with Printup. Mayor Dennis Walsh asked if the City wants to make a decision about this tonight. Council Member Matthew Johnson added that one of the good things about addressing this now is that we would have the advantage of having something in the books to address it. The City Council gave guidance to staff to begin the process to move it forward and to get the Police Chief’s perspective on it. 2.Utility Rate Study Interim Finance Director Maggie Ung presented the Utility Rate Study. She mentioned staff had looked into the recycling rates and discovered that the rates could possibly be dropped slightly. The original 10% increase could be decreased to 8%. There was discussion of labeling the recycling on the bills as Hennepin County mandated. Staff will look educating residents about how recycling is mandated by the county. 3.Second Amendment Dedicated City City Attorney Soren Mattick commented that MN Legislature has legislated City’s not being able to ban guns or put other restrictions or regulations on them. He stated that if federal Orono City Council Work Session Minutes Monday, November 9, 2020 Council Chambers 5:00 p.m. government creates a law that bans guns the resolution put before Council tonight will not trump legislative laws. Walsh noted that this is just a good faith resolution noting that the City supports guns and nothing more. Printup mentioned that he first thought of the resolution as a good idea but possibly at the next meeting we could make a proclamation and rather focus on the Bill of Rights instead. Crosby noted he is comfortable with expanding on the Bill of Rights, but the second amendment resolution going before council tonight is important and it show’s our stance. Council Member Victoria Seals supports the right and the resolution but is not quite sure why it is the only one we are discussing at this time. Seals agrees with Printup. Crosby noted that standing up for what you believe isn’t always easy but it’s something that should be done. Walsh mentioned that he would like to walk with the council to figure out where we would like to hang the flag and also noted that we have people that are willing to raise money for those flags as well. Printup noted he would like to visit the Bill of Rights at a different meeting. Meeting Adjourned: 5:44 p.m. CITY OF ORONO: ATTEST: ________________________________ Dennis Walsh, Mayor _________________________________ Anna Carlson, City Clerk AGENDA ITEM Prepared By: MLU Reviewed By: MLU Approved By: DJR 1. Purpose. The purpose of this action item is to approve payment of claims made on the City for services and/or products provided to the City. 2. Background. The attached claims for payment have been received by the City. Staff has reviewed the claims and is recommending approval of the listing for payment. The claims will be paid by checks 115355 to 115441, totaling $394,026.49. 3. Noteworthy Payments. Vendor Amount Description of Payment #115391 Ferguson Waterworks $30,317.54 Payment for water meters and for the sewer televising equipment needed to inspect sanitary sewer and Stormwater pipes. #115400 Lano Equipment $67,171.04 Purchase of toolcat unit with salt and sand spreader attachments. #115409 MN Dept of Labor & Industry $19,253.10 Payment for 2020 Quarter 1-3 state surcharges for permits. 4. Staff Recommendation. Staff recommends approval of a motion authorizing payment to the claims list as presented. COUNCIL ACTION REQUESTED Motion to approve the claims list as presented. Exhibits A. Check Register Item No.: 5 Date: December 7, 2020 Item Description: Claims/Bills Presenter: Maggie Ung Accountant Agenda Section: Consent Agenda City of Orono Check Register - COUNCIL REPORT Page: 1 Check Issue Dates: 11/24/2020 - 12/7/2020 Dec 03, 2020 04:18PM Check Check Invoice Invoice GL Account Description Department Invoice Payee Issue Date Number Number Amount UNITED STATES POSTAL SERVI 12/01/2020 115355 113020 602-49450-322 11/20 UTILITY BILLS Sewer 223.77 UNITED STATES POSTAL SERVI 12/01/2020 115355 113020 601-49400-322 11/20 UTILITY BILLS Water 223.77 UNITED STATES POSTAL SERVI 12/01/2020 115355 113020 651-49910-322 11/20 UTILITY BILLS Storm Water 223.76 Total 115355:671.30 ICMA RETIREMENT TRUST 45 12/03/2020 115356 120320 101-21705 457 - 12/03/2020 1,691.00 Total 115356:1,691.00 MCB BANK - HSA 12/03/2020 115357 120320 101-21717 HSA 12/03/20 233.34 Total 115357:233.34 MN STATE RETIREMENT-HCSP-12/03/2020 115358 120320 101-21718 PEHSCP - 12/03/20 2,253.27 Total 115358:2,253.27 NATIONWIDE RETIREMENT 12/03/2020 115359 120320-OBR 101-21705 OBRA - 12/03/20 34.03 NATIONWIDE RETIREMENT 12/03/2020 115359 120320-ROT 101-21705 ROTH - 12/03/20 200.00 NATIONWIDE RETIREMENT 12/03/2020 115359 120320-USC 101-21705 457 - 12/03/20 945.00 Total 115359:1,179.03 OPTUM 12/03/2020 115360 120320 101-21717 HSA - 12/03/20 3,267.70 Total 115360:3,267.70 ORCHARD TRUST-MNDCP-ING 12/03/2020 115361 120320 101-21705 457 - 12/03/20 1,320.00 Total 115361:1,320.00 PUBLIC EMPLOYEES RETIREM 12/03/2020 115362 120120 101-21704 PERA - POLICE HOLIDAY 25,641.21 PUBLIC EMPLOYEES RETIREM 12/03/2020 115362 120320 101-21704 PERA 11/16/20-11/29/20 38,597.89 Total 115362:64,239.10 ACTIVE911 INC 12/07/2020 115363 230841 101-42110-433 ACTIVE 911 ANNUAL RENEWAL Police Department 70.00 City of Orono Check Register - COUNCIL REPORT Page: 2 Check Issue Dates: 11/24/2020 - 12/7/2020 Dec 03, 2020 04:18PM Check Check Invoice Invoice GL Account Description Department Invoice Payee Issue Date Number Number Amount Total 115363:70.00 ADVANCED IMAGING SOLUTIO 12/07/2020 115364 429837651 710-49970-413 PW COPIER LEASE 11/20/20-12/20/20 121.76 Total 115364:121.76 AEM FINANCIAL SOLUTIONS LL 12/07/2020 115365 437014 101-41500-301 FINANCE ASSISTANCE Finance Department 6,703.75 Total 115365:6,703.75 ALLSTREAM 12/07/2020 115366 17134485 601-49400-321 PHONE SERVICE 10/23-11/22/20 Water 72.88 ALLSTREAM 12/07/2020 115366 17134485 602-49450-321 PHONE SERVICE 10/23-11/22/20 Sewer 166.59 ALLSTREAM 12/07/2020 115366 17190661 101-41900-321 PHONE SERVICE 11/23-12/22/20 Central Services 441.76 ALLSTREAM 12/07/2020 115366 17190661 101-42110-321 PHONE SERVICE 11/23-12/22/20 Police Department 315.54 ALLSTREAM 12/07/2020 115366 17190661 601-49400-321 PHONE SERVICE 11/23-12/22/20 Water 73.62 ALLSTREAM 12/07/2020 115366 17190661 602-49450-321 PHONE SERVICE 11/23-12/22/20 Sewer 168.29 ALLSTREAM 12/07/2020 115366 17190661 101-45210-321 PHONE SERVICE 11/23-12/22/20 Golf Course 52.59 Total 115366:1,291.27 ANNA CARLSON 12/07/2020 115367 112320 101-41300-331 MILEAGE REIMBRUSEMENT - CC/CWS Administration 88.32 ANNA CARLSON 12/07/2020 115367 112320 101-41410-331 MILEAGE REIMBURSEMENT - ELECTIONS Elections 150.82 Total 115367:239.14 ANNE HENTGES 12/07/2020 115368 112520 101-41500-331 MILEAGE 11/20-11/25/20 Finance Department 12.65 Total 115368:12.65 APPLIED CONCEPTS INC 12/07/2020 115369 375700 101-42110-402 EQUIPMENT REPAIR Police Department 80.00 Total 115369:80.00 ASPEN EQUIPMENT 12/07/2020 115370 10223083 701-49800-221 SEAL KIT - 426 SPINNER 68.26 Total 115370:68.26 Aspen Mills 12/07/2020 115371 264759 101-42110-226 UNIFORMS Police Department 352.79 City of Orono Check Register - COUNCIL REPORT Page: 3 Check Issue Dates: 11/24/2020 - 12/7/2020 Dec 03, 2020 04:18PM Check Check Invoice Invoice GL Account Description Department Invoice Payee Issue Date Number Number Amount Total 115371:352.79 BOLTON & MENK INC.12/07/2020 115372 0259702 435-48973-304 2020 STREETS IMPROVEMENTS 20-001 2020 Street Improvements 17,183.30 BOLTON & MENK INC.12/07/2020 115372 0259708 651-16500 2020 DRAINAGE IMPROVEMENTS 20-022 7,054.50 BOLTON & MENK INC.12/07/2020 115372 0260000 225-45200-304 EAST LONG LAKE TRAIL 20-029 4,385.00 BOLTON & MENK INC.12/07/2020 115372 0260002 225-45200-530 BIG ISLAND IMPROVEMENT PHASE 1 19-033 19,040.00 Total 115372:47,662.80 Bratt Tree Company 12/07/2020 115373 4314 101-43000-408 TREE REMOVAL IN ROW Public Works Department 2,000.00 Total 115373:2,000.00 Brian Clark 12/07/2020 115374 111820 101-43000-226 WORK BOOTS Public Works Department 200.00 Total 115374:200.00 CARDMEMBER SERVICE 12/07/2020 115375 082620-1 701-49800-212 BOAT AND BIG ISLAND MOWER FUEL 22.39 CARDMEMBER SERVICE 12/07/2020 115375 092420-3 701-49800-212 BOAT FUEL 18.65 CARDMEMBER SERVICE 12/07/2020 115375 102020-2-up 101-41410-240 COVID-19 ELECTIONS FLOOR DECALS Elections 9.30 CARDMEMBER SERVICE 12/07/2020 115375 102020-4 701-49800-212 BOAT FUEL 11.31 CARDMEMBER SERVICE 12/07/2020 115375 102820-1 101-43000-437 PROFESSIONAL DEVELOPMENT TRAINING Public Works Department 235.00 CARDMEMBER SERVICE 12/07/2020 115375 110420 101-45200-225 SUMMIT BEACH FENCE REPLACEMENT Parks 1,627.01 CARDMEMBER SERVICE 12/07/2020 115375 111020-1 101-45200-225 SUMMIT BEACH FENCE REPLACEMENT Parks 279.54 CARDMEMBER SERVICE 12/07/2020 115375 111120 101-43000-226 WINTER PPE - B. CLARK Public Works Department 369.98 CARDMEMBER SERVICE 12/07/2020 115375 111720 101-41300-439 ONLINE MEETING PLATFORM Administration 280.65 CARDMEMBER SERVICE 12/07/2020 115375 112020 101-42110-437 USE OF FORCE WEBINAR - FARNIOK Police Department 50.00 CARDMEMBER SERVICE 12/07/2020 115375 112520 101-42110-322 USPS - ITEM RETURNED TO VENDOR Police Department 12.80 CARDMEMBER SERVICE 12/07/2020 115375 120120 101-43000-226 WINTER PPE - B. MAUER Public Works Department 199.99 CARDMEMBER SERVICE 12/07/2020 115375 120220 101-42110-580 UAV LIGHTING Police Department 128.87 Total 115375:3,245.49 CECE S SIGNS 12/07/2020 115376 8540 701-49800-221 GRAPHICS - DUMP BOX 220.00 Total 115376:220.00 CENTERPOINT ENERGY MAIN 12/07/2020 115377 102920 101-41900-381 GAS SERVICE 09/22/20-10/21/20 Central Services 252.43 CENTERPOINT ENERGY MAIN 12/07/2020 115377 102920 101-42110-381 GAS SERVICE 09/22/20-10/21/20 Police Department 112.52 City of Orono Check Register - COUNCIL REPORT Page: 4 Check Issue Dates: 11/24/2020 - 12/7/2020 Dec 03, 2020 04:18PM Check Check Invoice Invoice GL Account Description Department Invoice Payee Issue Date Number Number Amount CENTERPOINT ENERGY MAIN 12/07/2020 115377 102920 101-45210-381 GAS SERVICE 09/22/20-10/21/20 Golf Course 67.38 CENTERPOINT ENERGY MAIN 12/07/2020 115377 112320 602-49450-381 1302 SHORELINE - GAS 10/20 -11/21/20 Sewer 22.71 CENTERPOINT ENERGY MAIN 12/07/2020 115377 120120 601-49400-381 GAS SERVICE 10/22/20-11/20/20 Water 650.61 CENTERPOINT ENERGY MAIN 12/07/2020 115377 120120 602-49450-381 GAS SERVICE 10/22/20-11/20/20 Sewer 585.68 CENTERPOINT ENERGY MAIN 12/07/2020 115377 120120 101-41900-381 GAS SERVICE 10/22/20-11/20/20 Central Services 789.60 CENTERPOINT ENERGY MAIN 12/07/2020 115377 120120 101-42110-381 GAS SERVICE 10/22/20-11/20/20 Police Department 242.55 CENTERPOINT ENERGY MAIN 12/07/2020 115377 120120 101-45210-381 GAS SERVICE 10/22/20-11/20/20 Golf Course 162.32 Total 115377:2,885.80 CENTRAL HYDRAULICS 12/07/2020 115378 67454 701-49800-221 HYDRAULIC MOTOR - 426 SALT SPINNER 302.47 Total 115378:302.47 Century Link 12/07/2020 115379 111920 101-45210-321 GC PHONE/INTERNET 11/19-12/18/20 Golf Course 226.70 Total 115379:226.70 CINTAS CORPORATION 12/07/2020 115380 4068131938 101-41900-401 MAT SERVICE - CH Central Services 25.92 Total 115380:25.92 CITY OF BLOOMINGTON 12/07/2020 115381 2000320 601-49400-489 BACTERIAL WATER TESTING Water 31.50 Total 115381:31.50 City of Orono Utilities 12/07/2020 115382 112420 CH P 101-41900-382 NOVEMBER 2020 UB - CH Central Services 72.55 City of Orono Utilities 12/07/2020 115382 112420 CH P 101-42110-382 NOVEMBER 2020 UB - PD Police Department 72.56 City of Orono Utilities 12/07/2020 115382 112420 PO 101-41900-382 NOVEMBER 2020 UB - PO Central Services 78.14 City of Orono Utilities 12/07/2020 115382 112420 PW 101-41900-382 NOVEMBER 2020 UB - PW Central Services 116.83 City of Orono Utilities 12/07/2020 115382 112420 WP 601-49400-382 NOVEMBER 2020 UB - WATER PLANT Water 133.58 Total 115382:473.66 CITY OF WAYZATA 12/07/2020 115383 113020 601-49400-387 NOVEMBER 2020 WATER Water 1,647.45 CITY OF WAYZATA 12/07/2020 115383 113020 602-49450-387 NOVEMBER 2020 SEWER Sewer 3,115.10 Total 115383:4,762.55 COMPASS MINERALS AMERICA 12/07/2020 115384 697417 101-43000-224 NON-TREATED ROAD SALT Public Works Department 1,679.54 City of Orono Check Register - COUNCIL REPORT Page: 5 Check Issue Dates: 11/24/2020 - 12/7/2020 Dec 03, 2020 04:18PM Check Check Invoice Invoice GL Account Description Department Invoice Payee Issue Date Number Number Amount COMPASS MINERALS AMERICA 12/07/2020 115384 700603 101-43000-224 UNTREATED ROAD SALT Public Works Department 4,896.78 COMPASS MINERALS AMERICA 12/07/2020 115384 701356 101-43000-224 NON-TREATED ROAD SALT Public Works Department 3,359.75 Total 115384:9,936.07 CORE & MAIN 12/07/2020 115385 N368732 601-49400-227 CURB BOX Water 293.52 CORE & MAIN 12/07/2020 115385 N368732 602-49450-227 CURB BOX Sewer 293.52 Total 115385:587.04 CORNERHOUSE 12/07/2020 115386 1614 101-42110-319 2021 FORENSIC INTERVIEW SVCS Police Department 4,565.46 Total 115386:4,565.46 DELTA DENTAL 12/07/2020 115387 RIS0003202 101-21709 4842130001 DECEMBER 2020 DENTAL 3,066.41 Total 115387:3,066.41 ECM PUBLISHERS INC 12/07/2020 115388 1094147 101-41300-340 ORDINANCE 250 Administration 53.64 ECM PUBLISHERS INC 12/07/2020 115388 806356 101-42400-340 DECEMBER PH Building & Zoning 29.80 Total 115388:83.44 ESS BROTHERS & SONS 12/07/2020 115389 AA6818 601-49400-227 WATER VALVE ADJ RINGS Water 1,483.30 Total 115389:1,483.30 FASTENAL 12/07/2020 115390 MNPLY1264 101-41900-223 METAL STAMPING KIT Central Services 47.20 Total 115390:47.20 FERGUSON WATERWORKS #25 12/07/2020 115391 0465921 601-49400-227 METERS Water 17,807.99 FERGUSON WATERWORKS #25 12/07/2020 115391 0466202 405-48500-580 SEWER TELEVISING EQUIPMENT 20-033 4,932.53 FERGUSON WATERWORKS #25 12/07/2020 115391 0466202-1 405-48500-580 SEWER TELEVISING EQUIPMENT 20-033 7,577.02 Total 115391:30,317.54 FILEONQ INC 12/07/2020 115392 8805 101-42110-416 FILEONQ - ANNUAL LICENSE RENEWAL Police Department 1,300.67 City of Orono Check Register - COUNCIL REPORT Page: 6 Check Issue Dates: 11/24/2020 - 12/7/2020 Dec 03, 2020 04:18PM Check Check Invoice Invoice GL Account Description Department Invoice Payee Issue Date Number Number Amount Total 115392:1,300.67 GENUINE PARTS COMPANY/NA 12/03/2020 115393 491762 101-42110-402 SQUAD MAINTENANCE - HEADLIGHTS Police Department 25.87- GENUINE PARTS COMPANY/NA 12/07/2020 115393 491762 101-42110-402 SQUAD MAINTENANCE - HEADLIGHTS Police Department 25.87 GENUINE PARTS COMPANY/NA 12/03/2020 115393 492227 101-42110-402 SQUAD MAINTENANCE Police Department 39.98- GENUINE PARTS COMPANY/NA 12/07/2020 115393 492227 101-42110-402 SQUAD MAINTENANCE Police Department 39.98 Total 115393:.00 GOPHER ACE 12/07/2020 115394 4076/1 101-41900-223 DOUBLE FACE TAPE Central Services 9.99 GOPHER ACE 12/07/2020 115394 4114/1 101-43000-224 STREET LIGHT REPAIRS Public Works Department 50.55 GOPHER ACE 12/07/2020 115394 4133/1 101-43000-404 KEY HOLDER Public Works Department 4.59 GOPHER ACE 12/07/2020 115394 4165/1 601-49400-227 HEATER - NORTH WATER TOWER Water 49.99 Total 115394:115.12 GOPHER STATE ONE CALL 12/07/2020 115395 0110654 602-49450-489 LOCATES 11-2020 Sewer 146.48 GOPHER STATE ONE CALL 12/07/2020 115395 0110654 601-49400-489 LOCATES 11-2020 Water 146.47 Total 115395:292.95 H & L MESABI 12/07/2020 115396 07273 701-49800-221 UNIT 428 SNOW PLOW CUTTING EDGES 1,107.04 Total 115396:1,107.04 HENNEPIN COUNTY TREASUR 12/07/2020 115397 111720 101-41900-352 2021 TNT COSTS Central Services 896.54 Total 115397:896.54 JAY MCCOY 12/07/2020 115398 111820 101-42110-226 CLOTHING REIMBURSEMENT Police Department 114.99 Total 115398:114.99 JEREMY BARNHART 12/07/2020 115399 11192020 101-42400-331 MILEAGE-SITE VISITS/INSPECTIONS Building & Zoning 231.15 Total 115399:231.15 LANO EQUIPMENT 12/07/2020 115400 02-798443 405-48500-550 TOOLCAT UNIT 604 67,171.04 City of Orono Check Register - COUNCIL REPORT Page: 7 Check Issue Dates: 11/24/2020 - 12/7/2020 Dec 03, 2020 04:18PM Check Check Invoice Invoice GL Account Description Department Invoice Payee Issue Date Number Number Amount Total 115400:67,171.04 LDF 12/07/2020 115401 120120-1 101-42110-433 2021 LDF DUES -FARNIOK Police Department 200.00 Total 115401:200.00 LEOWEBPROTECT.com 12/07/2020 115402 2850 101-42110-433 MONTHLY SUBSCRIPTION Police Department 143.06 Total 115402:143.06 MANSFIELD OIL COMPANY 12/07/2020 115403 22064073 701-49800-212 DIESEL FUEL 1,643.31 MANSFIELD OIL COMPANY 12/07/2020 115403 22064074 101-42110-212 UNLEADED FUEL Police Department 328.03 MANSFIELD OIL COMPANY 12/07/2020 115403 22064083 101-42110-212 UNLEADED FUEL Police Department 1,259.55 Total 115403:3,230.89 MCSHERRY, SHEILA 12/07/2020 115404 110320-1 101-41410-104 2020 GENERAL ELECTION Elections 20.00 Total 115404:20.00 METRO WEST INSPECTIONS S 12/07/2020 115405 2639 101-42400-310 INSPECTION SERVICES OCT 2020 Building & Zoning 8,001.00 Total 115405:8,001.00 MHSRC/Range 12/07/2020 115406 629430-8016 101-42110-437 EVOC LAW ENFORCEMENT TRG-CABLE AND WI Police Department 1,190.00 Total 115406:1,190.00 MINNEAPOLIS OXYGEN COMPA 12/07/2020 115407 00068751 101-43000-415 ACETYLENE, OXYGEN Public Works Department 36.81 MINNEAPOLIS OXYGEN COMPA 12/07/2020 115407 00068752 101-42110-221 MEDICAL OXYGEN Police Department 61.35 MINNEAPOLIS OXYGEN COMPA 12/07/2020 115407 00068753 101-42110-221 MEDICAL OXYGEN Police Department 9.27 Total 115407:107.43 MINNESOTA EQUIPMENT 12/07/2020 115408 P00190 101-43000-221 CHAINSAW CHAINS Public Works Department 98.95 MINNESOTA EQUIPMENT 12/07/2020 115408 P00190 701-49800-221 REPAIR CUTOFF SAW 35.35 MINNESOTA EQUIPMENT 12/07/2020 115408 P00203 101-43000-226 CHAPS Public Works Department 98.95 MINNESOTA EQUIPMENT 12/07/2020 115408 P00238 101-43000-221 CHAINSAW CHAINS Public Works Department 131.70 MINNESOTA EQUIPMENT 12/07/2020 115408 P00239 101-43000-226 PPE RICK Public Works Department 103.09 City of Orono Check Register - COUNCIL REPORT Page: 8 Check Issue Dates: 11/24/2020 - 12/7/2020 Dec 03, 2020 04:18PM Check Check Invoice Invoice GL Account Description Department Invoice Payee Issue Date Number Number Amount Total 115408:468.04 MN DEPT OF LABOR & INDUST 12/07/2020 115409 JUNE2020 101-20802 JUNE0531702020 SURCHARGE 7,750.65 MN DEPT OF LABOR & INDUST 12/07/2020 115409 MARCH2020 101-20802 MARCH0531702020 SURCHARGE 6,269.50 MN DEPT OF LABOR & INDUST 12/07/2020 115409 SEPTEMBE 101-20802 SEPTEMBER0531702020 SURCHARGE 5,232.95 Total 115409:19,253.10 Morrie's Auto Body & Glass 12/07/2020 115410 ZA915772 101-42110-402 REMOVE GRAPHICS #246 Police Department 201.00 Total 115410:201.00 MOUND TRUE VALUE 12/07/2020 115411 172062 101-42110-240 MISC EXPENSE SANTA PARADE Police Department 191.92 MOUND TRUE VALUE 12/07/2020 115411 172065 101-42110-240 MISC EXPENSE SANTA PARADE Police Department 56.00- Total 115411:135.92 MPPOA 12/07/2020 115412 120120 101-42110-433 2021 MPPOA DUES -FARNIOK Police Department 50.00 Total 115412:50.00 NAVARRE HARDWARE 12/07/2020 115413 328319 101-43000-224 STREET LIGTHT REPAIR Public Works Department 1.84 Total 115413:1.84 NCPERS GROUP LIFE INS.12/07/2020 115414 6732001220 101-21710 PERA LIFE 12/2020 384.00 Total 115414:384.00 Newegg Business Inc 12/07/2020 115415 1303035642 710-49970-575 COVID-19 LAPTOPS 1,362.82 Newegg Business Inc 12/07/2020 115415 1303041212 710-49970-575 COVID-19 LAPTOPS 1,255.96 Newegg Business Inc 12/07/2020 115415 1303048697 710-49970-221 HEADSET - PW 84.95 Newegg Business Inc 12/07/2020 115415 1303062606 710-49970-221 REPLACEMENT PHONE CORD - CH 16.22 Newegg Business Inc 12/07/2020 115415 1303062670 710-49970-221 HEADSET - PW 6.97 Total 115415:2,726.92 NOLA DICKHAUSEN 12/07/2020 115416 110420 101-41410-489 2020 GENERAL ELECTION Elections 60.95 City of Orono Check Register - COUNCIL REPORT Page: 9 Check Issue Dates: 11/24/2020 - 12/7/2020 Dec 03, 2020 04:18PM Check Check Invoice Invoice GL Account Description Department Invoice Payee Issue Date Number Number Amount Total 115416:60.95 NOVA COMMUNICATIONS 12/07/2020 115417 144125 710-49970-401 ANNUAL SERVER & SOFTWARE SUPPORT 3,942.00 Total 115417:3,942.00 OFFICE DEPOT 12/07/2020 115418 1382259350 101-42110-201 OFFICE SUPPLIES Police Department 47.56 OFFICE DEPOT 12/07/2020 115418 1382260370 101-42110-201 OFFICE SUPPLIES Police Department 31.98 OFFICE DEPOT 12/07/2020 115418 1382475940 101-41900-201 CALENDARS - PW Central Services 395.26 OFFICE DEPOT 12/07/2020 115418 1382495740 101-41900-201 CORK TILES - FRONT DESK Central Services 19.38 OFFICE DEPOT 12/07/2020 115418 1382495750 101-41900-201 INK Central Services 35.61 Total 115418:529.79 PASTEL, JOANNE M 12/07/2020 115419 110320 101-41410-104 2020 GENERAL ELECTION Elections 115.00 Total 115419:115.00 PLAISTED COMPANIES INC 12/07/2020 115420 41764 101-45210-312 LATE FEE Golf Course 13.31 Total 115420:13.31 QUALITY FLOW SYSTEMS INC 12/07/2020 115421 40052 602-49450-406 LIFT STATION REPAIRS 20-017 Sewer 25,806.00 QUALITY FLOW SYSTEMS INC 12/07/2020 115421 40066 602-49450-406 LIFT STATION REPAIR LS11 Sewer 903.00 QUALITY FLOW SYSTEMS INC 12/07/2020 115421 40101 602-49450-406 LIFT STATION REPAIR GS1 Sewer 867.00 QUALITY FLOW SYSTEMS INC 12/07/2020 115421 40105 602-49450-406 LIFT STATION REPAIR LS1 Sewer 3,930.70 Total 115421:31,506.70 RANDYS ENVIRONMENTAL SER 12/07/2020 115422 111920 603-49500-442 2020-FALL CITY CLEAN UP DAY 4,287.85 RANDYS ENVIRONMENTAL SER 12/07/2020 115422 111920-1 101-41900-404 GARBAGE SERVICE - 11/2020 Central Services 477.50 RANDYS ENVIRONMENTAL SER 12/07/2020 115422 111920-1 101-45200-404 GARBAGE SERVICE - 11/2020 Parks .38 RANDYS ENVIRONMENTAL SER 12/07/2020 115422 111920-1 101-45210-404 GARBAGE SERVICE - 11/2020 Golf Course 118.42 RANDYS ENVIRONMENTAL SER 12/07/2020 115422 111920-1 101-45220-404 GARBAGE SERVICE - 11/2020 Brush Site 27.87- Total 115422:4,856.28 RYAN AUTO MALL 12/07/2020 115423 642568 101-42110-402 SQUAD #260 REPAIR Police Department 339.57 City of Orono Check Register - COUNCIL REPORT Page: 10 Check Issue Dates: 11/24/2020 - 12/7/2020 Dec 03, 2020 04:18PM Check Check Invoice Invoice GL Account Description Department Invoice Payee Issue Date Number Number Amount Total 115423:339.57 SECOND NATURE GRAPHICS 12/07/2020 115424 402 101-41900-201 ENVELOPES Central Services 378.00 Total 115424:378.00 SECURITY & SOUND CO 12/07/2020 115425 23231 405-48500-575 BURGLAR ALARM - CH & PD 6,360.00 Total 115425:6,360.00 St. Cyr Johnson Enterprises 12/07/2020 115426 17790-1-201 101-42110-226 UNIFORMS CLEANING Police Department 337.52 Total 115426:337.52 STERICYCLE INC 12/07/2020 115427 4009751313 101-42110-240 DISPOSAL OF SYRINGES Police Department 85.00 Total 115427:85.00 STU'S STUMP GRINDING LLC 12/07/2020 115428 0GC-MN01 101-45210-404 STUMP GRINDING - GC Golf Course 2,670.00 Total 115428:2,670.00 SUMMIT COMPANIES 12/07/2020 115429 130001472 101-42110-404 SAFETY MAINTENANCE Police Department 342.00 Total 115429:342.00 SUMMIT FIRE PROTECTION 12/07/2020 115430 130001470 101-42110-404 FIRE EXTINGUISHER SERVICE Police Department 25.00 Total 115430:25.00 TALLEN AND BAERTSCHI 12/07/2020 115431 111820 101-41600-306 PROSECUTION SERVICES-11/2020 Law/Legal Services 2,902.00 Total 115431:2,902.00 UNIFIRST CO 12/07/2020 115432 0900589467 101-43000-404 MATS - PW Public Works Department 19.50 UNIFIRST CO 12/07/2020 115432 0900589467 101-43000-221 SHOP TOWELS Public Works Department 4.80 UNIFIRST CO 12/07/2020 115432 0900589467 101-43000-226 UNIFORMS Public Works Department 71.71 UNIFIRST CO 12/07/2020 115432 0900590785 101-43000-404 MATS - PW Public Works Department 19.50 UNIFIRST CO 12/07/2020 115432 0900590785 101-43000-221 SHOP TOWELS Public Works Department 2.90 City of Orono Check Register - COUNCIL REPORT Page: 11 Check Issue Dates: 11/24/2020 - 12/7/2020 Dec 03, 2020 04:18PM Check Check Invoice Invoice GL Account Description Department Invoice Payee Issue Date Number Number Amount UNIFIRST CO 12/07/2020 115432 0900590785 101-43000-226 UNIFORMS Public Works Department 157.18 UNIFIRST CO 12/07/2020 115432 0905092109 101-43000-226 UNIFORMS Public Works Department 98.08 UNIFIRST CO 12/07/2020 115432 0905092109 101-43000-404 MATS - PW Public Works Department 19.50 UNIFIRST CO 12/07/2020 115432 0905092109 701-49800-221 SHOP TOWELS 3.70 UNIFIRST CO 12/07/2020 115432 090589466 101-41900-223 MATS - CH & CC Central Services 58.00 Total 115432:454.87 UNITED STATES POSTAL SERVI 12/07/2020 115433 66 101-42110-322 PO BOX RENTAL Police Department 94.00 Total 115433:94.00 US Bank Equipment Finance 12/07/2020 115434 429675986 710-49970-413 COPIERS 596.76 Total 115434:596.76 VACKER INC 12/07/2020 115435 2545 101-45200-223 SUMMIT PARK SIGNS Parks 1,648.00 Total 115435:1,648.00 WATER CONSERVATION SVC IN 12/07/2020 115436 10853 601-49400-405 LEAK LOCATE CR19 @ OLIVE Water 396.14 Total 115436:396.14 WILLIAMS TOWING 12/07/2020 115437 154311 231-45650-436 VEHICLE FORFEITURE CASE OR20-007251 155.00 Total 115437:155.00 Wright-Hennepin Coop Electric 12/07/2020 115438 3502839872 101-45210-381 GC SECURITY 12/1-12/31/20 Golf Course 41.82 Total 115438:41.82 XCEL ENERGY 12/07/2020 115439 707031153 101-45210-381 ELECTRIC 9/22/20-10/22/20 Golf Course 851.07 XCEL ENERGY 12/07/2020 115439 709387026 101-45200-381 BEDERWOOD PARK 10/19/20-11/17/20 Parks 12.18 Total 115439:863.25 GMH ASPHALT 12/07/2020 115440 PAY 7 435-20600 2019 STREET IMPROVEMENTS 19-001 22,171.50 GMH ASPHALT 12/07/2020 115440 PAY 7 435-48972-590 2019 STREET IMPROVEMENTS 19-001 5,465.12 City of Orono Check Register - COUNCIL REPORT Page: 12 Check Issue Dates: 11/24/2020 - 12/7/2020 Dec 03, 2020 04:18PM Check Check Invoice Invoice GL Account Description Department Invoice Payee Issue Date Number Number Amount Total 115440:27,636.62 SERVICEMASTER CLEANING 12/07/2020 115441 144683 602-49450-406 SEWER BACK UP CLEANING 3860 NORTH ARM Sewer 4,416.50 Total 115441:4,416.50 Grand Totals: 394,026.49 AGENDA ITEM Prepared By: MLU Reviewed By: MLU Approved By: DJR 1. Purpose. The purpose of this action item is to consider the 2021 fee schedule. 2. Background. The City updates its fee schedule annually. Changes to the current fee schedule are highlighted in yellow. Wetland buffer sign fees were removed as the City no longer has wetland buffers and golf course season passes have increase slightly. In the Utility Fee Section, the fees have been adjusted for Water, Sewer, Recycling, and Storm Water as part of the rate study performed in conjunction with the 2021 budget process. These fees were discussed with the Council at the October 26th and November 23rd work sessions. 3. Staff Recommendation. Staff recommends approval of the fee schedule as presented. COUNCIL ACTION REQUESTED: Consider a motion to adopt the attached Ordinance adopting the City's Fee Schedule for 2021 and Summary Ordinance for publication. Exhibits A. Fee Schedule Ordinance B. Fee Schedule Exhibits Item No.: 6 Date: December 7, 2020 Item Description: Adopt 2021 Fee Schedule Presenter: Maggie Ung Accountant Agenda Section: Consent Agenda 1 ORDINANCE NO. ____, THIRD SERIES CITY OF ORONO HENNEPIN COUNTY, MINNESOTA AN ORDINANCE ADOPTING THE 2021 FEE SCHEDULE AND AN ORDINANCE REPEALING ORDINANCE NO. 241, THIRD SERIES THE CITY COUNCIL OF ORONO ORDAINS: SECTION 1. Ordinances Repealed. Ordinance No. 241, Third Series, entitled 2020 Fee Schedule is hereby repealed. SECTION 2. The City Council of Orono per Section 2-171 of the Municipal Code hereby ordains the fees attached as Exhibits A-G effective during the calendar year 2021: SECTION 3. EFFECTIVE DATE: This ordinance establishing the 2021 Fee Schedule shall be published as a Summary Ordinance and shall be effective on January 1, 2021 and publication. ADOPTED this 7th day of December, 2020 on a vote of ___ ayes and ___ nays by the City Council of Orono, Minnesota. ATTEST: ______________________________ _____________________________ Anna Carlson, City Clerk Dennis Walsh, Mayor Ordinance published in The Laker and The Pioneer newspapers the week of ________, 2020. A. Buillding, Planning, and Zoning B. License Fees and Miscellaneous Charges C. Utility Rates and Fees D. Administrative Offenses E. Park Fees F. Police Administration G. Documents and Services Zoning Applications Commercial Marina Sanitary Sewer and Municipal Water Connection Traffic/ Vehicle Golf Course Dogs at Large Zoning Documents Zoning Permits Joint Use Dock Municipal Connection Permit Snowmobile Violations Lurton Park Animals at Large General Administrative Documents Building Code Administration Rental License Point of Sale Fees Animals Summit Beach Large Assemble Permit Building Permits Garbage Hauler Sewer Projects Public Nuisances Bederwood & Hackberry Sport Fields Fireworks Contractual Inspections Home Occupation Water Connections Open Burning Firearms Fire Temporary Trailers and Buildings Water Meter and Horn Noise Trapping Park Dedication Kennel Licenses Sewer and Water Unit Adjustment Charges Park Violations Special Events Storm Water Trunk Beer, Wine, and Liquor Utility Service Fees Sign Violations False Alarm Amusement Devices Municipal Water Rates Juvenile Violations Fingerprinting Public Dance Stormwater Utility Rates Seasonal Overweight Vehicles Police Special Services General Administrative Licenses/Fines Recycling Charge Parking Copy Service Miscellaneous Charges Sump Pump Surcharge Miscellaneous Photos PW supplies and service No Parking Signs Statements Fire arm storage Table of Contents 2021 Orono Fee Schedule Application Adjusted Fee Escrow Notes Variance $275.00 $700.00 + Consultant fees 1st Extension $50.00 Staff approved 2nd and subsequent $50.00 City Council meeting Conditional Use Permit $275.00 $700.00 + Consultant fees CUP amendment $275.00 $700.00 1st Extension $50.00 Staff approved Interim Use Permit $275.00 $700.00 + Consultant fees Site Plan Review $275.00 $700.00 + Consultant fees Zoning Amendments including map amendments $275.00 $700.00 + Consultant fees Concept Review $275.00 Comprehensive Plan Amendment $275.00 $700.00 + Consultant fees Subdivision Subdivision: Sketch Plan $275.00 Subdivision: Class I and II $275.00 $1,000.00 + Consultant fees Subdivision: Class III Prel Plat $500.00 $5,000.00 + Consultant fees Subdivision: Final Plat $500.00 $2,500.00 + Consultant fees Subdivision: Preliminary plat extension $275.00 Subdivision Exception $50.00 n/a + Consultant fees if Applicable Vacations Vacations: Road $275.00 $700.00 Vacation: Easement not associated with subdivisions $275.00 $700.00 Vacation: Easements associated with a subdivision $0.00 Easement Creation (see Class I Subdivision)$700.00 Appeal of Administrative Decision $150.00 $700.00 Stairway to Lake $50.00 Structures not requiring a building permit $50.00 Plus Engineering Costs Encroachment Permit/ Agreement $150.00 Tree removal in shore setback $0.00 Signs (Alteration of cabinent or raceway)$50.00 Vehicle Storage $50.00 78-1577 (C) Land Alteration $50.00 $1,000.00 May also require a CUP Dock $50.00 Tent/ Canopy Permits $50.00 *City Administrator may require an erosion control escrow for projects disturbing soils. $1,000.00 Variable depending on project scope, but not to exceed Zoning confirmation letter $50.00 Request for zoning confirmation letter Exhibit A Buillding, Planning, and Zoning All fees, unless otherwise noted, are application fees and are non-refundable after staff work has begun on the application. All after the fact applications are double fees. All applicants are responsible for actual costs incurred by the City by its' consultants in the review of the application. ZONING PERMIT: ZONING APPLICATIONS: PLANNING, BUILDING, ZONING Application Adjusted Fee Escrow Notes Address Change Request by Owner $50.00 Building Permits Based on Value Table Plan Review Fee 65% of Building Permit Fee Minimum Fee $26.25 Sign structure Based on Value Table Entrance monuments Based on Value Table Temporary Certificate of Occupancy Escrow 3% of project value, not to exceed $10,000 City Administrator may require an erosion control escrow for projects disturbing soils.$1,000.00 Total Valuation $1.00 to $500 $501.00 to $2,000.00 $2,001.00 to $25,000.00 $25,001.00 to $50,000.00 $50,001.00 to $100,000.00 $100,001.00 to $500,000.00 $500,001.00 to $1,000,000.00 $1,000,001.00 and up State Surcharge as required by State Demolition: Principal structure $100.00 $1,000.00 Demolition: Accessory structure $50.00 Retaining walls Based on Value Table $1,000.00 May require City Council approval (Variance or CUP) Plumbing 1.25% of project n/a Backflow registration $10.00 Plumbing minimum $26.25 Mechanical (All Types)1.25% of project n/a Mechanical Minimum $26.25 Tent/ Canopy $50.00 $715.92 for the first $50,000.00 plus $7.88 for each additional $1,000.00, or fraction thereof, to and including $100,000.00 $1109.92 for the first $100,000.00 plus $6.30 for each additional $1,000.00, or fraction thereof, to and including $500,000.00 $3,629.92 for the first $500,000.00 plus $5.25 for each additional $1,000.00, or fraction thereof, to and including $1,000,000.00 Fee $26.25 $26.25 for the first $500.00 plus $3.41 for each additional $100.00, or fraction thereof, to and including $2,000.00 BUILDING CODE ADMINISTRATION: Valuation based on ICC 2012 Building Valuation tables $6,254.92 for the first $1,000,000.00 plus $4.20 for each additional $1,000.00, or fraction thereof $77.40 for the first $2,000.00 plus $15.49 for each additional $1,000.00, or fraction thereof, to and including $25,000.00 $433.67 for the first $25,000.00 plus $11.29 for each additional $1,000.00, or fraction thereof, to and including $50,000.00 Application Adjusted Fee Escrow Notes Municipal Connection permit n/a Sewer $50.00 SAC (Sewer Availability Charge) (MCES)$2,485.00 Water $50.00 Horn Quote Basis Septic Residential System Permit, Repair $100.00 Residential System Permit, New/ replace $460.00 $1,000.00 Non-Residential System Permit $260.00 Subdivision site evaluation review $60.00 Per lot Inspection surcharge for RS zones (Big Island and Deering island) $30.00 plus cost of boat rental if transportation not provided. Reinspection fee $30.00 plus $60/ hour after 1st hour Site inspection without permit $30.00 Annual Septic Fee $45.00/per year, plus applicable late fee plus 8% interest for unpaid charges Septic Late Fee $10.00 Contractural Inspection Service Monthly Retainer Fee $30/ month (Includes clerical time) Inspection Charge $30.00 per inspection Plan Review Charge Per 2008 Building Permit Fee Based on Valuation Clerical Fee (Only charged if clerical use is excessive)$20.00 per hour Fire Protection inspection Actual Cost Per 2012 Building Permit Fee Based on Valuation Fire Plan review fee 65% of permit fee Burning permits No Charge Reinspection $20.00 FIRE All fire suppression and alarm permits are based on value, and include a plan review fee and are subject to the state surcharge. Application Adjusted Fee Escrow Notes Res. 4738 (12-10-01) Res. 4739 (12-10-01) Per new lot, or new structure on previously vacant lot Per buildable acre $16,150.00 $8,060.00 $5,250.00 $3,025.00 $7,275.00 $8,490.00 $9,690.00 Dedication requirement of 8% of the land being platted or subdivided. (Exclusive of lot that includes an existing residence.) Dedicated requirement of 8% of the land being platted or subdivided. Land Dedication Minimum Area - Subdividers shall be required to dedicate to the City for parks, playgrounds, trails, open spaces and other public purposes as a minimum that percentage of gross land area, or other such amount as may be determined by the City Council, as set forth below: (1) Residential/Agricultural/Multiple Residential Zoned Land. (2) Commercial/Industrial Zoned Land. PARK DEDICATION Single Family Residential 2 Acre Zone - all wetland acreage up to the delineation line - acreage of stormwater ponding or similar improvements that provide additional treatment benefits beyond what is required to treat the stormwater runoff from the development site. - acreage of conservation easements resulting from Conservation Design process Multi-family and High-Density Single Family Developments. Trunk fee shall be charged on a per-acre basis, except that the following acreages will not be subject to the trunk fee: Single Family Residential 1 Acre Zone Single Family Residential 1/2 Acre Zone Multi Family Residential 4 Units/Acre or Less Multi Family Residential Greater than 4 Units/Acre Commercial or Industrial The City Council has established by resolution a minimum commercial/industrial park fee of $8,125 per acre and a maximum of $13,875 per acre. STORMWATER AND DRAINAGE TRUNK FEES Storm water trunk fees apply to new development and redevelopment of existing properties and provide funding for the storm water infrastructure necessary to serve the City. The trunk fee is based on the land use and acreage of the property being developed. An equivalency factor multiplier is assigned to each land use type, with a 2-acre residential lot considered as the standard in the City with an equivalency factor of 1.0. The table below lists the storm water trunk fees per acre for the various zoning districts and land uses in the City. NEW DEVELOPMENT LAND USE Single Family Residential 5 Acre Zone Stormwater and Drainage Trunk fees as established by Subdivision IV, Section 14-283 of the City Code. The City Council has established by resolution a minimum residential park fee of $3,250 per dwelling unit and a maximum of $5,550 per dwelling unit. Cash Contribution in Lieu of Lands. In those instances where a cash contribution is to be made by the subdivider, in lieu of a conveyance or dedication of land, the cash contribution to be contributed shall be that would otherwise have been conveyed or dedicated. The City shall account for such funds inequivalent to the fair market value of the equivalent undeveloped land a special fund named Park Dedication Funds. Fee DOCK LICENSE $325.00 Per Year License Application Fee $50.00 CANOE RACK RENTAL $40.00 Per Slip RENTAL LICENSE License Fee $100.00 2 year term GARBAGE HAULER LICENSE Flat Rate $75.00 Ch. 54, Article III Per Hauler $15.00 Per Truck Transfer Fee $30.00 HOME OCCUPATION LICENSE (Level 2)$100.00 Initial Review Fee Sec. 26-76 $30.00 Annual Review Fee $30.00 KENNEL LICENSES Sec. 62-161 thru 62-185 Commercial Application & Inspection Fee (Annual)$150.00 Residential Application & Inspection Fee (Annual)$50.00 BEER, WINE & LIQUOR LICENSES Initial Investigation $500.00 Per License Ch. 34, Article II On-Sale & Off-Sale Intoxicating Liquor Licenses Ch. 34, Article II Ch. 34, Article II In state investigation Out state investigation Actual cost Off-Sale Liquor License $150.00 Sec. 34-66 On-Sale Liquor License $5,000.00 Sec. 34-66 On-Sale Wine License $2,000.00 Sec. 34-77 3.2 % Malt Liquor Off-Sale (Annual)$50.00 Sec. 34-66 3.2 % Malt Liquor On-Sale (Annual)$100.00 Sec. 34-66 Setup (Annual)$100.00 Sec. 34-126; 34-143 Club Liquor License Sec. 34-66 (weekday)$200.00 Sec. 34-66 (Sunday)$200.00 Sec. 34-66 Temporary Set-up Permit (1-4 days)$25.00 Each Sec. 34-42 Temporary On Sale 3.2% Malt Liquor (1-7 days)$25.00 Each Sec. 34-82 Temporary Off-Sale Wine License (wine auction)$25.00 Each Sec. 34-42 Temporary On-Sale Wine License (1-4 days)$25.00 Each Sec. 34-42 Temporary On-Sale Liquor License (1-4 days)$25.00 Each Sec. 34-42 1st Violation $500.00 Sec. 34-41 On-Sale & Off Sale 3.2% Malt Liquor/Wine Licenses Type Exhibit B Licenses and Miscellaneous Charges TEMPORARY TRAILERS & BUILDINGS License Fees for new licenses may be prorated; after 75% of the license period has elapsed, the fee is reduced by 50%. Actual cost up to $10,000 Liquor Violations (3 years immediately prior to date of most current violation) 2nd Violation $1,000.00 & 3-day license suspension 3rd Violation $2,000.00 & 2-week license suspension 4th Violation License revocation AMUSEMENT DEVICE LICENSES Sec. 38-601 thru 38-603 Per Establishment (Annual)$100.00 + Machine fee Per Machine Fee $25.00 Each PUBLIC DANCE LICENSE Annual License $100.00 Individual License $10.00 Gambling & Raffle Investigation $10.00 Ch. 38, Article II Massage Therapy License $100.00 Ch. 31, Article II Background Investigation $150.00 Annual Renewal $100.00 Solicitor/Transient Merchant/Peddler License $100.00 + Actual costs up to $1,500.00 Ch. 30 Tobacco Licenses $125.00 Ch. 50, Article II 1st Offense $150.00 2nd Offense $400.00 3rd Offense & Over $500.00 Penalty for Use of Tobacco Where Prohibited $100.00 Sec. 51-5 MISCELLANEOUS FEES Convenience Fee - Credit Card Transactions 2.75%+ $0.50 for $100.00 or less Returned Check $30.00 Licensee or Employee Violations within 24 month period GENERAL ADMINISTRATIVE LICENSES/FINES Sec. 38-501 thru 38-506 Sewer $50.00 SAC (Sewer Availability Charge) (MCES)$2,485.00 Water $50.00 Horn Quote Basis Connection inspection (Water or Sewer) $100.00 Disconnection inspection (Water or Sewer)$100.00 Residential $250.00 Commercial $750.00 Connection to existing City Sewer System: $5,380.00 Fee 2004 North Long Lake East Extension $16,495.00 2004 West Farm/Homestead $9,900.00 2005-1 Webber Hills/S Brown Rd Ext $14,990.00 2005-1 Dickey Lake Dr N $19,125.00 2006-1 Jamestown Road $15,930.00 2007 Farview Lane Sewer $12,025.00 2010 North Farm Road $20,020.00 2014 Green Trees $21,830.00 2015 Green Trees Extension $20,890.00 Connection to Sewer System in adjacent city Fee Connection to Long Lake Sewer System $1,900.00 or per current Long Lake Fee Schedule Connection to Wayzata Sewer System $1,000 or per current Wayzata Fee Schedule Connection to existing City Water Main $4,370 per unit *or 20% over adjacent city's fee schedule, whichever is greater of Connection to Wayzata Water System $2,351.00 or per current Wayzata Fee Schedule 5/8" (3/4"x7-1/2") meter with horn including sales tax Actual Cost 3/4" (3/4"x9") meter with horn including sales tax Actual Cost 1" meter with horn including sales tax Actual Cost Larger meter Actual Cost Exhibit C Utility Rates and Fees Connection fees have been determined as a way to provide a fair and equitable recovery of the costs associated with providing water and wastewater utility services to new customers to avoid placing these costs on existing customers. The connection fee includes those portions of existing assets that will benefit new customers together with any anticipated future capital improvements constructed for the purpose of providing utility services to new customers. The connection charge applies to those properties not previously assessed for the associated utility project. Connection to City Sewer in areas still within their assessment window (less than 15 years since project was assessed) shall pay an amount equivalent to the assessment amount plus interest that residences were charged at the time of the project: Current Fee per Adjacent City $1,900.00 or per current Long Lake Fee Schedule MUNICIPAL CONNECTION PERMIT SEWER PROJECTS WATER CONNECTIONS Fee Connection to Long Lake Water System ALL SANITARY SEWER AND MUNICIPAL WATER CONNECTION CHARGES WATER METER AND HORN SEWER AND WATER UNIT ADJUSTMENT CHARGES POINT OF SALE SEWER SERVICE INFLOW & INFILTRATION INSPECTION FEES CHARGES CREDIT UNIT CHARGE Municipal Sewer Rate By Unit: 1st $68.99 per month $62.72 per month 2nd $60.98 per month $55.44 per month By flow ($68.99/month minimum):$7.66/1000 gallon plus $6.96/1000 gallon plus $6.00/month/SAC unit $18.00/per quarter/per SAC unit Long Lake Service Minimum Charge (10,000 Gallons or Less Water Usage)$68.99 per month $62.72 per month Over 10,000 Gallons Water Usage, per 1,000 Gallons additional $7.66/1000 gallon Wayzata Service Metered Service Minimum Charge (10,000 Gallons or Less Water Usage)$68.99 per month $62.72 per month Over 10,000 Gallons Water Usage, per 1,000 Gallons additional $7.66/1000 gallon $6.96/1000 gallon plus Unmetered Service Per Property $68.99 per month $62.72 per month Residential Billing & Ready to Serve Charge $16.67/month $50.00/qtr Unconnected Property Charge $16.67/month $50.00/qtr Water Usage Rate Navarre Area (Area #1) and Hwy 12 (Area #2) Tier 1 (0-3,300 gal 0-10,000 gal) $7.78/1000 gal $7.07/1000 gal Tier 2 (3,300 - 8,300 gal 11-25,000 gal) $10.89/1000 gal $9.90/1000 gal Tier 3 (>8,300 >25,000 gal)$16.34/1000 gal $14.85/1000 gal Chevy Chase Area (Area #3) Tier 1 (0-5,000 gal 0-15,000 gal) $7.78/1000 gal $7.07/1000 gal Tier 2 (5,000-8,300 gal 15-25,000 gal) $10.89/1000 gal $9.90/1000 gal Tier 3 (>8,300 >25,000 gal)$16.34/1000 gal $14.85/1000 gal Long Lake Area (Area #4) Tier 1 (0-2,600 gal 0-8,000 gal) $7.78/1000 gal $7.07/1000 gal Tier 2 (2,600-7,300 gal 8-22,000 gal) $10.89/1000 gal $9.90/1000 gal Tier 3 (>7,300 gal >22,000 gal)$16.34/1000 gal $14.85/1000 gal Multi-Family Billing & Ready to Serve Charge per SAC Unit $16.67/month $50.00/qtr Credit for previously assessed sewer or water units shall be applied against the total number of sewer and water units established for the new use. UTILITY SERVICE FEES MUNICIPAL WATER RATES Some Properties on Mytlewood and Old Long Lake Road are not connected to water. Wayzata bills Orono based on a quarterly usage of 25,000 gallons. Charge is based on the metered rates and 25,000 gallons. Charges shall result from either an intensification of an existing non-residential use or a new non-residential use that replaces a former use on a property located within an area already assessed and served by municipal sewer and water. Each sewer and each water unit adjustment charge shall be equal to the current Service Availability Charge established by the Metropolitan Council Wastewater Services or its successor and shall be payable to the City of Orono upon application for a building permit. Unconnected Property Charge $16.67/month $50.00/qtr Water Usage Rate Tier 1 (0-8,300 gal 0-25,000 gal) $7.78/1000 gal $7.07/1000 gal Tier 2 (8,300-33,300 gal 25-100,000 gal) $10.89/1000 gal $9.90/1000 gal Tier 3 (>33,300 gal >100,000 gal)$16.34/1000 gal $14.85/1000 gal Commercial Billing & Ready to Serve Charge per SAC Unit $16.67/month $50.00/qtr Unconnected Property Charge $16.67/month $50.00/qtr Water Usage Rate Tier 1 (0-8,300 gal 0-25,000 gal) $7.78/1000 gal $7.07/1000 gal Tier 2 (8,300-33,300 gal 25-100,000 gal) $10.89/1000 gal $9.90/1000 gal Tier 3 (>33,300 gal >100,000 gal)$16.34/1000 gal $14.85/1000 gal Federally Mandated Safe Drinking Water $2.43/quarter or $0.81/month Testing Program (Charged per service connection) Quarterly Service Charge for Non-Functioning or Inaccessible Water Meter $100.00 Bulk sale to Minnetonka Beach for Lafayette Ridge Area Processing Fee (Per Monthly Billing Cycle) Billing $25.00 $50.00 Plus Water Usage Rate $7.78/1000 gal $7.07/1000 gal Bulk sale - All Others Processing Fee (Per Monthly Billing Cycle)$25.00 Plus Water Usage Rate $7.78/1000 gal $7.07/1000 gal i.e. Fill swimming pool or watering sod. Assessment Charge for Unpaid Accounts Certified $25.00 County Fee for Unpaid Accounts Certified $2.50 Water Turn-On $50.00 Water Turn-off $50.00 Water System Repair/Replacement if damage caused by property owner: Labor - Current Hourly Rate Parts - At Cost One residential unit: $15.57/month or $46.71/quarter $46.25/per quarter Non-residential unit:Based on “Residential Equivalent Factor” $5.76/month or $17.28/quarter $64.00/year Recycling Cart from Waste Management No Charge $100.00 per month Right of Way Permit $50.00/permit Right of Way Escrow (for other than Public Utility) $1,500 New Street Intersections (See zoning section - Special improvement fees) On-Call Service to Other Cities Base On-Call Fee $64.80/day $61.60/day Call-Out Fee Actual wage and equipment rates Water Meter Sales (See Building Permit Section) The basic intent of storm water regulations is to minimize the impact of development on natural drainage systems. PUBLIC WORKS SUPPLIES & SERVICES Penalty for late payment of sewer/water bills - 8% after 30 days from billing date (applied to the total unpaid balance). Interest at 8% on unpaid water/sewer bills certified. SUMP PUMP SURCHARGE STORM WATER UTILITY RATES RECYCLING CHARGE Wetland Buffer Signs $8.00 Eliminate- we no longer have city wetland buffers to put signs at. Fee Applicable Code or MN State Statute (MSS) Number Unsafe Operation 66-259 Unreasonable Acceleration $60.00 66-258 Exhibition Driving $60.00 66-7 Failure to Obey Traffic Control $60.00 169.06 MSS Expired Registration $60.00 169.79 MSS Unsafe Equipment $60.00 169.47 MSS Loud Exhaust $60.00 169.69 MSS No Driver License in Possession $60.00 171.08 MSS Failure to Change Address on DL $60.00 171.11 MSS Driving to Avoid Traffic Signal $60.00 66-5 Operation $60.00 66-159 Equipment $60.00 66-160 Hours of Operation $60.00 66-159 $60.00 Dog at Large $60.00 62-104 Animal License Required $60.00 62-131 Feces Clean Up $60.00 22-95 & 22-114 Barking Dog $60.00 62-10 $60.00 Public Nuisance/General Prohibition $60.00 70-4 Peace and Safety Violation $60.00 70-166 Discharge of Firearm $60.00 70-97 No Permit $60.00 58-186 Negligent Burning $60.00 58-193 No Open Burning $60.00 58-193 Loud Noise Prohibited $60.00 58-120 Hours of Operation $60.00 22-89 Operating a Motor Vehicle within Park $60.00 22-92 No Permit $60.00 22-102 Feces Clean Up $60.00 22-95, 22-102 & 22-114 $60.00 Violation of General Provisions $60.00 18-4 Sign Impoundment Fee $25.00 78-1473 $60.00 Curfew $60.00 70-274 Possession of Tobacco $60.00 609.685 Sub 3 MSS 1,000-9,999 lbs overweight .15 cents per lb over 169.824 Sub 1 MSS General $25.00 66-78 Seasonal 0200-0600 on $25.00 66-80 Street Prohibited Handicapped $60.00 66-85 Fire Lane $25.00 46-85 Watering Restrictions $60.00 610.50 Sub 15 MSS Placing Snow on Street $25.00 18-5 SPECIAL EVENT VIOLATIONS 1st Violation $250.00 2nd Violation $500.00 3rd Violation $1,000.00 Exhibit D Administrative Offenses TRAFFIC/VEHICLE OFFENSES SNOWMOBILE VIOLATIONS ANIMALS JUVENILE SEASONAL OVERWEIGHT VEHICLES PARKING MISCELLANEOUS ADMINISTRATIVE OFFENSES (POLICE ADMINISTERED) PUBLIC NUISANCES OPEN BURNING NOISE PARK VIOLATIONS SIGNS VIOLATIONS GOLF COURSE FEES - Effective Date: 2021 Season MONDAY THRU SUNDAY RATES Individual (Regular)$19.00 Juniors (12 -18 years old)$12.00 Seniors (60 years or older)$16.00 Second Round $10.00 Children under 12 golf free with an adult SEASON PASS RATES (Unlimited Play)Base Resident Base Resident Individual Season Pass $570.00 $455.00 $550.00 $435.00 Junior Season Pass (12 - 18 years old)$320.00 $280.00 $300.00 $260.00 Senior Season Pass (60 years or older)$470.00 $350.00 $450.00 $330.00 Family Season Pass $610.00 $550.00 $590.00 $500.00 (Entire Family*) GOLF CART RENTAL RATES Motorized Cart Rental/Per Round $19.00 Pull Carts/Per Round $5.00 $3.00 Golf Clubs/Per Round $5.00 $3.00 FALL RATES (Begins 1st Monday of October) $13.00 $5.00 $9.00 $9.00 CONCESSION RATES As Posted Resident $25.00 Non-Resident $40.00 Passes will go on sale for the following year on Nov 1st. Passes to be prorated at 50% on August 1st. SUMMIT BEACH CANOE RACK RENTAL $40.00/slip BEDERWOOD & HACKBERRY SPORT FIELDS PARK FACILITY USE PERMIT Resident (Individual, business or group)$15.00 Non-Resident (Individual, business or group)$25.00 Exhibit E Park Fees * Family meaning: Immediate family living in the same household. Children must be 18 years old or younger. LURTON PARK PASSES 1st Nine Holes Fall 2nd Nine Holes Fall Junior Fall (18 years or younger) Senior Fall (60 years or older) Elliminate-- these do not appear to entice folks in. If the weather is nice folks come and are happy to pay full price or if the weather is bad, they don’t come Sec. 62-104 1st Offense $60.00 2nd Offense $80.00 3rd Offense $100.00 After Hours, Weekend & Holiday Release Charge $75.00 Ch. 62, Article I 1st Offense $55.00 2nd Offense $65.00 3rd Offense $75.00 Trace & Catch Animal $35.00 Per Hour Trailer Charge $55.00 Actual Cost $200.00 + $60.00 each additional day; actual costs up to $1,500 Sec. 38-801 thru 38-803 Sec. 70-99 Sale and/or Storage of Consumer Fireworks $100.00 Ch. 70, Article III Pest Control (limited use)$25.00 Game Animals (limited use)$25.00 Annual (Club Only)$25.00 $20.00 Sec. 70-71 $100.00 Ch. 66, Article VI Special Events involving fireworks $250.00 Ch. 42, Article III 1st false alarm/per calendar year No Charge 2nd false alarm/per calendar year $50.00 3rd false alarm/per calendar year $100.00 4th false alarm/per calendar year $150.00 5th and over false alarm/per calendar year $250.00 FIREARMS DISCHARGE PERMIT LIMITED TRAPPING PERMIT SPECIAL EVENTS PERMIT FALSE POLICE ALARM USER FEES Exhibit F Police Administration DOGS AT LARGE - RELEASE FEE CARE OF IMPOUNDED ANIMAL LARGE ASSEMBLY LICENSE (over 300 people) FIREWORKS PERMIT ANIMALS AT LARGE (Other than dogs) - RELEASE FEE + 0.31/Mile (Total Distance) Ch. 42, Article III 1st false alarm/calendar year No Charge 2nd false alarm/calendar year $75.00 3rd false alarm/calendar year $250.00 4th false alarm/calendar year $350.00 5th & over false alarm/calendar year $500.00 Each Call $25.00 Per Application Officer 119 Rate $120.00 Per Hour Police Reserve Officers $30.00 Per Hour First Two Copies $0.25 Per Page Additional Copies $0.25 Each More than 100 pages (actual costs) PHOTOS $10.00 On CD Paper signs (no lath included)$1.00 STATEMENTS $10.00 $50.00 For CD & (transcribed copy or CD when available; subject to Data Privacy Act - will be charged an actual hourly fee) Per Gun (Police Policy 3056)FIREARM STORAGE FEES POLICE SPECIAL SERVICES (3 Hours Minimum) FINGERPRINTING SERVICE FALSE FIRE ALARM USER FEES SIGNS: "NO PARKING ORDER OF POLICE" COPY SERVICE - Police Records NON-RESIDENTS ONLY (Residents No Charge) 2010-2030 Comprehensive Plan $75.00 Municipal Code Book - complete (Ch. 1-94 w/revisions) Municipal Code Book - Portions Ch 78 only (Zoning Code) w/revisions Ch 82 only (Subdiv. Code) w/revisions Other Individual Chapters Binder $5.00 GIS and City Maps 8 1/2 x 11 11x17 17x22 22x34 Black & white $0.25 $1.00 $2.00 $4.00 Color $2.00 $4.00 $8.00 $16.00 City Street Number Maps $0.25 $2.00 $5.00 Building & Planning Publications Listing Information $10.00 Assessment Search - Written (Verbal searches not given) Fax Charge Copy Service (for public City records only)$ .25 Each 11" x 17" copies $ 1.00 Each Individual copies of Ordinance Sections (1 copy)No Charge Building Plan Copies Labels from Utility Billing System Electronic Labels Information Provided on CD or 8GB USB Drive Information Provided on DVD Shipping/ Handling mailing of requested information Professional Time Clerical Time Legal/Engineering Consultants Mileage/Copies/Postage/Etc. Returned Check Charge $30.00 Ex G Documents and Services Cost of copying service, ZONING DEPARTMENT DOCUMENTS $60.00 With Binder As Posted - Prices subject to Change $25.00 loose $15.00 loose $ .25 Per Page GENERAL ADMINISTRATIVE DOCUMENTS $20.00 Per Parcel No charge up to 6 pages; $.25 Each Additional Surcharge for Staff Expense in Excess of Regular Fees $ 50.00 Per Hour Reprint of Oversized Documents that have been microfilmed Cost of Copying, Messenger Service & Min. Clerical Fee of $5.00 (Entire amount to be paid upon request) $ .05 Per Label (Approximately $150.00) $10.00 Per sheet , 30 Labels max per sheet $ 30.00 Per Hour Actual Billed Cost Actual Cost $ 10.00 Per CD/USB $ 20.00 Per DVD $ 3.00 + cost of information (DVD, pages, etc.) AGENDA ITEM Prepared By: MLU Reviewed By: MLU Approved By: DJR 1. Purpose. The purpose of this action item is to adopt a resolution approving pay plan adjustments for non-union city employees for 2021. 2. Background. The City adopts an updated non-union pay scale annually. This action will set the 2021 wage and benefits for the following positions: Office Manager (PD), City Clerk, Deputy Chief, Community Development Director, Public Works Director, Finance Director, Police Chief, and the City Administrator. a. Compensation. The 2021 budget has includes a 3.0% COLA increase to the City’s pay scale and $0.05 per hour longevity pay for non-union employees over 8 years of service. A copy of the updated pay scale is included with this memo. b. Insurance. For 2021 the City’s insurance contribution for employees selecting family (employee plus) coverage is budgeted for $1,472.50 which has not changed from 2020. The contribution for employees selecting single coverage remains frozen at the 2011 amount of $915. The waiver amount is the same as 2020 at $205.00. c. Mileage. The attached resolution also confirms that the City will continue to reimburse employees at the IRS allowed mileage rate in 2021. The 2020 IRS standard rate is currently set at 57.5 cents per mile. The 2021 rate has not yet been released. d. Safety Shoe Allowance. This reimbursement will remain at $250 annually, matching the amount in the Public Works union contract. 3. Cost. The total cost of a 3.0% COLA is $29,700. 4. Funding. The funding for these expenditures are included in the 2021 budget. 5. Staff Recommendation. Staff recommends approval of a resolution approving pay plan adjustments for non-union city employees for 2021. COUNCIL ACTION REQUESTED Motion to adopt a resolution approving pay plan adjustments for non-union city employees for 2021. Exhibits A. Resolution B. 2021 Non-Union Pay Scale Item No.: 7 Date: December 7, 2020 Item Description: Cost of Living Adjustments for Non-Union Employees Presenter: Maggie Ung Accountant Agenda Section: City Administrator’s Report CITY OF ORONO RESOLUTION OF THE CITY COUNCIL NO. ________________________ RESOLUTION APPROVING PAY PLAN ADJUSTMENTS FOR NON-UNION CITY EMPLOYEES FOR 2021 WHEREAS, the City Administrator is responsible for annually presenting pay adjustments for City employees, with the exception of employees covered by collective bargaining agreements; and WHEREAS, sufficient funds have been appropriated in the proposed 2021 Annual Budget to fund the recommended pay adjustments and such other matters of compensation as herein specified. NOW, THEREFORE, BE IT RESOLVED, by the Orono City Council as follows: 1. That the City’s non-union pay scale be increased by 3% to reflect a Cost of Living increase. 2. That the City’s non-union employees be eligible for longevity pay of $0.05 per hour x number of years of service to the City beginning on the employee’s 8th anniversary. 3. That the City's cafeteria benefit plan contribution will remain at $1,472.50 per month for employees on family coverage, remain at $915 for single (no cash) and will remain at $205.00 for waivers. 4. That City employees using their own vehicles for approved work related business shall be compensated at a rate allowed by the IRS (currently $0.575 per mile). 5. That the 2021 Safety Shoe Reimbursement will remain at $250 for employees that qualify for this reimbursement. Adopted by the Council this 7th day of December, 2020. ATTEST: _________________________________ _________________________________ CITY OF ORONO RESOLUTION OF THE CITY COUNCIL NO. ________________________ Anna Carlson, City Clerk Dennis Walsh, Mayor Co m p e n s a t i o n P l a n No n - U n i o n E m p l o y e e s Pa y G r a d e s a n d S t e p s Fo r 2 0 2 1 B U D G E T St a r t Ho u r l y A n n u a l 12 9 , 1 4 7 . 3 6 6 4 . 0 1 1 3 3 , 1 4 1 . 6 0 6 5 . 9 9 1 3 7 , 2 5 9 . 3 9 11 7 , 8 6 9 . 3 1 5 8 . 4 2 1 2 1 , 5 1 4 . 7 5 6 0 . 2 3 1 2 5 , 2 7 2 . 9 4 6 2 . 0 9 19 5 3 . 3 2 1 1 0 , 9 0 3 . 2 2 5 4 . 9 7 1 1 4 , 3 3 3 . 2 2 5 6 . 6 7 58 . 3 6 1 2 1 , 3 9 8 . 5 2 6 0 . 1 7 1 2 5 , 1 5 3 . 1 1 6 2 . 0 3 1 2 9 , 0 2 3 . 8 3 53 . 2 7 1 1 0 , 7 9 7 . 1 5 5 4 . 9 2 1 1 4 , 2 2 3 . 8 7 5 6 . 6 1 1 1 7 , 7 5 6 . 5 7 11 4 , 1 1 4 . 6 0 5 6 . 5 6 1 1 7 , 6 4 3 . 9 2 5 8 . 3 1 1 2 1 , 2 8 2 . 3 9 18 5 0 . 1 2 1 0 4 , 2 4 9 . 0 3 5 1 . 6 7 1 0 7 , 4 7 3 . 2 3 10 4 , 1 4 9 . 3 2 5 1 . 6 2 1 0 7 , 3 7 0 . 4 3 5 3 . 2 2 1 1 0 , 6 9 1 . 1 7 5 4 . 8 6 17 4 7 . 1 1 9 7 , 9 9 4 . 0 8 4 8 . 5 7 1 0 1 , 0 2 4 . 8 3 5 0 . 0 7 51 . 5 7 1 0 7 , 2 6 7 . 7 2 5 3 . 1 7 1 1 0 , 5 8 5 . 2 8 5 4 . 8 1 1 1 4 , 0 0 5 . 4 4 47 . 0 7 9 7 , 9 0 0 . 3 6 4 8 . 5 2 1 0 0 , 9 2 8 . 2 0 5 0 . 0 2 1 0 4 , 0 4 9 . 7 0 10 0 , 8 3 1 . 6 7 4 9 . 9 8 1 0 3 , 9 5 0 . 1 7 5 1 . 5 2 1 0 7 , 1 6 5 . 1 2 16 4 4 . 2 9 9 2 , 1 1 4 . 4 4 4 5 . 6 6 9 4 , 9 6 3 . 3 4 92 , 0 2 6 . 3 4 4 5 . 6 1 9 4 , 8 7 2 . 5 2 4 7 . 0 2 9 7 , 8 0 6 . 7 2 4 8 . 4 8 15 4 1 . 6 3 8 6 , 5 8 7 . 5 8 4 2 . 9 2 8 9 , 2 6 5 . 5 4 4 4 . 2 4 45 . 5 7 9 4 , 7 8 1 . 7 6 4 6 . 9 8 9 7 , 7 1 3 . 1 6 4 8 . 4 3 1 0 0 , 7 3 5 . 2 1 41 . 5 9 8 6 , 5 0 4 . 7 6 4 2 . 8 8 8 9 , 1 8 0 . 1 6 4 4 . 2 0 9 1 , 9 3 8 . 3 2 89 , 0 9 4 . 8 6 4 4 . 1 6 9 1 , 8 5 0 . 3 7 4 5 . 5 2 9 4 , 6 9 1 . 1 0 14 3 9 . 1 3 8 1 , 3 9 2 . 3 2 4 0 . 3 4 8 3 , 9 0 9 . 6 1 81 , 3 1 4 . 4 7 4 0 . 3 0 8 3 , 8 2 9 . 3 5 4 1 . 5 5 8 6 , 4 2 2 . 0 2 4 2 . 8 3 13 3 6 . 7 8 7 6 , 5 0 8 . 7 8 3 7 . 9 2 7 8 , 8 7 5 . 0 3 3 9 . 0 9 40 . 2 6 8 3 , 7 4 9 . 1 7 4 1 . 5 1 8 6 , 3 3 9 . 3 5 4 2 . 7 9 8 9 , 0 0 9 . 6 4 36 . 7 5 7 6 , 4 3 5 . 6 0 3 7 . 8 8 7 8 , 7 9 9 . 5 9 3 9 . 0 6 8 1 , 2 3 6 . 6 9 78 , 7 2 4 . 2 2 3 9 . 0 2 8 1 , 1 5 8 . 9 9 4 0 . 2 3 8 3 , 6 6 9 . 0 6 12 3 4 . 5 8 7 1 , 9 1 8 . 2 5 3 5 . 6 5 7 4 , 1 4 2 . 5 3 71 , 8 4 9 . 4 7 3 5 . 6 1 7 4 , 0 7 1 . 6 2 3 6 . 7 1 7 6 , 3 6 2 . 4 9 3 7 . 8 5 11 3 2 . 5 0 6 7 , 6 0 3 . 1 6 3 3 . 5 1 6 9 , 6 9 3 . 9 8 3 4 . 5 4 35 . 5 8 7 4 , 0 0 0 . 7 6 3 6 . 6 8 7 6 , 2 8 9 . 4 5 3 7 . 8 1 7 8 , 6 4 8 . 9 2 32 . 4 7 6 7 , 5 3 8 . 5 0 3 3 . 4 7 6 9 , 6 2 7 . 3 2 3 4 . 5 1 7 1 , 7 8 0 . 7 5 69 , 5 6 0 . 7 2 3 4 . 4 8 7 1 , 7 1 2 . 0 8 3 5 . 5 4 7 3 , 9 2 9 . 9 8 10 3 0 . 5 5 6 3 , 5 4 6 . 9 7 3 1 . 5 0 6 5 , 5 1 2 . 3 4 63 , 4 8 6 . 1 9 3 1 . 4 7 6 5 , 4 4 9 . 6 9 3 2 . 4 4 6 7 , 4 7 3 . 9 0 3 3 . 4 4 9 2 8 . 7 2 5 9 , 7 3 4 . 1 6 2 9 . 6 1 6 1 , 5 8 1 . 6 0 3 0 . 5 2 31 . 4 4 6 5 , 3 8 7 . 0 8 3 2 . 4 1 6 7 , 4 0 9 . 3 6 3 3 . 4 1 6 9 , 4 9 4 . 1 9 28 . 6 9 5 9 , 6 7 7 . 0 2 2 9 . 5 8 6 1 , 5 2 2 . 7 0 3 0 . 4 9 6 3 , 4 2 5 . 4 7 61 , 4 6 3 . 8 5 3 0 . 4 6 6 3 , 3 6 4 . 7 9 3 1 . 4 1 6 5 , 3 2 4 . 5 2 8 2 7 . 0 0 5 6 , 1 5 0 . 1 1 2 7 . 8 3 5 7 , 8 8 6 . 7 1 56 , 0 9 6 . 3 9 2 7 . 8 0 5 7 , 8 3 1 . 3 3 2 8 . 6 6 5 9 , 6 1 9 . 9 3 2 9 . 5 5 7 2 5 . 3 8 5 2 , 7 8 1 . 0 9 2 6 . 1 6 5 4 , 4 1 3 . 5 0 2 6 . 9 7 27 . 7 8 5 7 , 7 7 6 . 0 2 2 8 . 6 4 5 9 , 5 6 2 . 9 1 2 9 . 5 2 6 1 , 4 0 5 . 0 6 25 . 3 5 5 2 , 7 3 0 . 6 2 2 6 . 1 4 5 4 , 3 6 1 . 4 6 2 6 . 9 4 5 6 , 0 4 2 . 7 4 54 , 3 0 9 . 4 6 2 6 . 9 2 5 5 , 9 8 9 . 1 3 2 7 . 7 5 5 7 , 7 2 0 . 7 5 6 2 3 . 8 5 4 9 , 6 1 4 . 2 3 2 4 . 5 9 5 1 , 1 4 8 . 6 9 49 , 5 6 6 . 7 8 2 4 . 5 7 5 1 , 0 9 9 . 7 7 2 5 . 3 3 5 2 , 6 8 0 . 1 8 2 6 . 1 1 5 2 2 . 4 2 4 6 , 6 3 7 . 3 8 2 3 . 1 2 4 8 , 0 7 9 . 7 7 2 3 . 8 3 24 . 5 4 5 1 , 0 5 0 . 8 9 2 5 . 3 0 5 2 , 6 2 9 . 7 8 2 6 . 0 9 5 4 , 2 5 7 . 5 1 22 . 4 0 4 6 , 5 9 2 . 7 7 2 3 . 0 9 4 8 , 0 3 3 . 7 8 2 3 . 8 1 4 9 , 5 1 9 . 3 6 46 , 5 9 0 . 1 3 2 3 . 0 9 4 8 , 0 3 1 . 0 7 2 3 . 8 1 4 9 , 5 1 6 . 5 6 4 2 1 . 0 8 4 3 , 8 3 9 . 1 3 2 1 . 7 3 4 5 , 1 9 4 . 9 8 42 , 5 2 1 . 5 6 2 1 . 0 8 4 3 , 8 3 6 . 6 6 2 1 . 7 3 4 5 , 1 9 2 . 4 3 2 2 . 4 0 3 1 9 . 2 3 4 0 , 0 0 8 . 5 3 1 9 . 8 3 4 1 , 2 4 5 . 9 1 2 0 . 4 4 21 . 0 6 4 3 , 7 9 4 . 7 2 2 1 . 7 1 4 5 , 1 4 9 . 2 0 2 2 . 3 8 4 6 , 5 4 5 . 5 7 19 . 2 2 3 9 , 9 7 0 . 2 6 1 9 . 8 1 4 1 , 2 0 6 . 4 6 2 0 . 4 2 4 2 , 4 8 0 . 8 8 41 , 1 6 7 . 0 4 2 0 . 4 0 4 2 , 4 4 0 . 2 5 2 1 . 0 4 4 3 , 7 5 2 . 8 3 2 1 8 . 0 8 3 7 , 6 0 8 . 0 2 1 8 . 6 4 3 8 , 7 7 1 . 1 5 37 , 5 7 2 . 0 5 1 8 . 6 2 3 8 , 7 3 4 . 0 7 1 9 . 2 0 3 9 , 9 3 2 . 0 3 1 9 . 7 9 Ho u r l y A n n u a l H o u r l y A n n u a l 1 1 7 . 0 0 3 5 , 3 5 1 . 5 4 1 7 . 5 2 2 3 6 , 4 4 4 . 8 8 1 8 . 0 6 Step 6 S t e p 7 Ho u r l y A n n u a l H o u r l y A n n u a l H o u r l y A n n u a l H o u r l y A n n u a l Gr a d e St e p 1 S t e p 2 S t e p 3 S t e p 4 S t e p 5 Ho u r l y A n n u a l AGENDA ITEM Prepared By: MLU Reviewed By: MLU Approved By: DJR 1. Purpose. The purpose of this action item is to authorize the Treasurer to disburse city funds in payment of claims that would normally be approved at the 2nd meeting in December. 2. Background. Typically during the month of December the City has only one council meeting. The meeting which would fall on or near the Christmas holiday is cancelled. Staff is requesting authorization to process a normal claims processing for the canceled meeting. This practice is routinely done in December with the Council then formally approving the claims at the first meeting in January of the following year. Without this authorization, no claims would be processed from December 7th to January 11th; this would make it difficult to comply with State Stature 471.425 requiring prompt payment of claims. 3. Staff Recommendation. Staff recommends authorizing the Treasurer to disburse city funds in payment of claims received for the December 28th council meeting prior to formal approval at the January 11, 2021 council meeting. COUNCIL ACTION REQUESTED Motion to authorize the City Treasurer to disburse city funds in payment of claims received for the December 28th council meeting which has been canceled, and that such paid claims be presented for formal approval at the January 11, 2020 council meeting. Item No.: 8 Date: December 7, 2020 Item Description: Authorization to Disburse Claims Presenter: Maggie Ung Accountant Agenda Section: Consent Agenda AGENDA ITEM Prepared By: MLU Reviewed By: MLU Approved By: DJR Purpose. Each year the Council adopts a resolution that sets the annual appointments. The attached draft resolution is provided for your consideration. COUNCIL ACTION REQUESTED: Consider a motion to amend or adopt the attached resolution designating selected appointments for 2021. Exhibits A. Annual Appointments Resolution Item No. 9 Date: December 7, 2020 Item Description: 2021 Annual Appointments Presenter: Dustin Rief, City Administrator Agenda Section: Consent Agenda CITY OF ORONO RESOLUTION OF THE CITY COUNCIL NO. ________________________ A RESOLUTION DESIGNATING SELECTED APPOINTMENTS BE IT RESOLVED, by the City Council of the City of Orono, Minnesota that the appointments and designations for the year 2021 are as follows: APPOINTMENT/DESIGNATION Acting Mayor Aaron Printup Association of Metropolitan Municipalities Legislative Contact Dennis Walsh Association of Metropolitan Municipalities Representative Dustin Rief Attorney-City Lead (Civil) Soren Mattick Attorney-City Firm (Civil) Campbell, Knutson Attorney-Alternate Dorsey & Whitney Attorney-Lead Prosecuting Tallen & Baertschi Attorney-City Prosecuting Firm Tallen & Baertschi Auditor Abdo Eich & Meyers, LLP Code Review Committee Dennis Walsh Jeremy Barnhart Ben Goodwin Will Haack Matt Johnson Peter Lanpher Andy Johnsrud Sven Gustafson Communications Committee Dennis Walsh Victoria Seals Dustin Rief Anna Carlson Data Practices Compliance Official Anna Carlson Data Practices Compliance Official – Police Department Correy Farniok Development Review Committee Laura Oakden Melanie Curtis Jeremy Barnhart CITY OF ORONO RESOLUTION OF THE CITY COUNCIL NO. ________________________ Emergency Preparedness Director Correy Farniok or designee Engineer-Lead Consulting David Martini Engineer-City Firm Bolton & Menk Fiscal Agents Ehlers & Associates Gillespie Center Dennis Walsh Hennepin Emergency Communications Organization Correy Farniok Highway 12 Safety Coalition Dennis Walsh Aaron Printup Correy Farniok Highway 12 Turnback Committee Dennis Walsh Mark McCutcheon Bob Erickson Adam Edwards Dustin Rief Housing and Redevelopment Authority Dennis Walsh, Chair Dustin Rief, Executive Director Richard Crosby Matt Johnson Aaron Printup Victoria Seals Ron Olson, Secretary Insurance Agent of Record Ronald Youngdahl, Northern Capital Lake Minnetonka Conservation District (LMCD) Richard Anderson Long Lake Fire Advisory Commission Aaron Printup Richard Crosby Dustin Rief Mayor's Association Dennis Walsh Official Newspaper The Laker & Pioneer CITY OF ORONO RESOLUTION OF THE CITY COUNCIL NO. ________________________ Official Depositories/Investment Vendors 1st State Bank – DeQueen Ally Bank – Midvale, UT Belmont Savings Bk – Mass Berkshire Bank – Pittsfield, MA BMO Harris Bank Bridgewater Bank – Navarre, MN Cal Private Bank – La Jolla, CA Capital Bank – Little Rock, AR Capital One Bank NA – Glen Allen, VA CIT Bank – Pasadena, CA Citibank NA – Sioux Falls, SD Connectone Bank, Englewood, CO Discover Bank – Greenwood, DE Enerbank USA – SLC, UT Flagstar Bank – Troy, MI Goldman Sachs Bank – New York, NY Great Western Bank – Watertown, SD HSBC Bank – McClean, VA JP Morgan Chase - Lakeside Bank – Chicago, IL League of MN Cities – 4M Fund Lee Bank - MA Live Oak Bkg - Wilmington, NC Mercantil Commerce Bank, Coral Gables, FL Merrick Bank – UT MS Bank – SLC, UT MS Private Bank – NY Peoples Bank Codorus – York, PA RBC Wealth Management, Mpls RCB Bank - Claremore, OK Sallie Mae Bank – Salt Lake City, UT Silvergate Bank – La Jolla, CA Southpoint Bank – Birmingham, AL State Bank Chilton – Chilton, WI Sterns Bank – St Cloud, MN Suntrust Bank - Atlanta, GA Synchrony Bank – Draper, UT TBK Bank - Dallas, TX Tennessee State Bank – Pigeon Forge, TN Townebank – Portsmouth, VA Toyota Savings Bank – Henderson, NV Wells Fargo Bank NA – CA Wells Fargo Advisors, Minneapolis UBS Financial Services, Wayzata CITY OF ORONO RESOLUTION OF THE CITY COUNCIL NO. ________________________ Organizational Development Committee Victoria Seals Aaron Printup Dustin Rief Orono Ice Arena Board Member Dennis Walsh Park Commission Chair Brian Roath Park Commission Representative Dennis Walsh Victoria Seals Planning Commission Chair Alternating Planning Commission Representative to Council Alternating Police Advisory Commission Dennis Walsh Matt Johnson Dustin Rief School District Committee Dennis Walsh Victoria Seals Correy Farniok Dustin Rief Suburban Rate Authority Adam Edwards Transportation Committee Adam Edwards Correy Farniok or designee Weed Inspector Dennis Walsh Weed Inspector-Assistant Jason Goehring Adopted by the City Council of the City of Orono, Minnesota, at a regular meeting held December 7, 2020. ATTEST: ___________________________________ _______________________________ Anna Carlson, City Clerk Dennis Walsh, Mayor AGENDA ITEM Prepared By: MLU Reviewed By: MLU Approved By: DJR 1. Purpose. The purpose of this action item is to consider the 2021 Capital Improvement Plan (CIP). 2. Background. The City updates its CIP annually. The draft CIP was presented to the Council at the September and October work sessions. The document is being presented for approval. Approval of the CIP does not authorize any expenditures. It is a planning document only. 3. Staff Recommendation. Staff recommends approval of the 2021 CIP as presented. COUNCIL ACTION REQUESTED: Consider a motion to approve the 2021 CIP. Exhibits Exhibit A. 2021 Capital Improvement Plan Item No.: 10 Date: December 7, 2020 Item Description: Adopt 2021 Capital Improvement Plan Presenter: Maggie Ung Accountant Agenda Section: Consent Agenda Ca p i t a l  Im p r o v e m e n t  Pl a n ,  Ci t y  of  Or o n o Su m m a r y  of  Co s t s CI P 2 0 2 1 2 0 2 2 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 Pa r k s  (A ‐1) $ 1 7 0 , 0 0 0 $ 1 6 5 , 0 0 0 $ 1 4 1 , 7 0 2 $ 3 3 0 , 0 0 0 $ 2 5 5 , 0 0 0 $ 1 9 0 , 0 0 0 $ 2 5 5 , 8 9 0 $ 5 2 4 , 7 0 0 $ 5 7 7 , 0 0 0 $ 2 9 0 , 0 0 0 Eq u i p m e n t  (A ‐2a ) $ 1 2 6 , 1 8 4 $ 3 2 8 , 0 7 3 $ 2 2 5 , 0 0 0 $ 4 5 0 , 0 0 0 $ 3 9 0 , 5 0 0 $ 1 8 5 , 8 0 0 $ 1 3 5 , 5 0 0 $ 1 4 0 , 4 6 1 $ 4 0 , 0 0 0 $ 4 0 2 , 8 0 0 Bu i l d i n g  (A ‐2b ) $ 1 , 8 3 1 , 5 0 0 $ 6 , 6 0 5 , 6 3 5 $ 1 0 5 , 0 0 0 $ 4 3 9 , 5 6 0 $ 2 0 9 , 0 0 0 $ 1 6 0 , 0 0 0 $ 1 6 0 , 0 0 0 $ 1 6 0 , 0 0 0 $ 1 6 0 , 0 0 0 $ 1 6 0 , 0 0 0 IT  (A ‐2c ) $ 1 5 , 0 0 0 $ 1 1 5 , 0 0 0 $ 0 $ 0 $ 1 2 , 0 0 0 $ 2 2 , 0 0 0 $ 4 3 , 0 0 0 $ 1 5 , 0 0 0 $ 0 $ 0 Lo n g  La k e  Fi r e  (A ‐3) $ 1 1 0 , 5 0 0 $ 5 1 , 0 0 0 $ 0 $ 0 $ 1 1 9 , 0 0 0 $ 5 1 , 0 0 0 $ 5 5 , 2 5 0 $ 4 8 8 , 7 5 0 $ 0 $ 7 6 , 5 0 0 Co m m u n i t y  In v e s t m e n t  (A ‐4) $ 5 0 , 0 0 0 $ 5 6 8 , 9 7 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Pu b l i c  Wo r k s  ‐   St r e e t s  ‐   PM F  & MS A  (A ‐5)   $1 , 1 9 5 , 4 3 7 $ 3 9 7 , 7 6 7 $ 2 , 3 5 7 , 1 8 6 $ 2 , 6 2 4 , 9 0 0 $ 1 , 2 6 3 , 2 0 0 $ 1 , 5 8 1 , 0 0 0 $ 1 , 6 1 2 , 6 2 0 $ 1 , 6 4 4 , 8 7 2 $ 1 , 6 7 7 , 7 7 0 $ 1 , 7 1 1 , 3 2 5 Pu b l i c  Wo r k s  ‐   Wa t e r  (A ‐6) $ 4 2 0 , 5 0 0 $ 3 4 8 , 5 4 0 $ 2 7 7 , 9 8 9 $ 1 9 3 , 7 9 7 $ 3 9 7 , 8 3 3 $ 4 2 8 , 5 2 8 $ 4 8 9 , 2 4 2 $ 4 5 9 , 9 7 3 $ 4 2 0 , 7 2 2 $ 3 2 0 , 7 2 2 Pu b l i c  Wo r k s  ‐   Sa n i t a r y  Se w e r  (A ‐7) $ 8 3 3 , 0 0 0 $ 4 3 4 , 0 0 0 $ 6 8 0 , 7 5 0 $ 5 7 8 , 4 5 0 $ 5 1 9 , 5 0 0 $ 6 6 0 , 0 0 0 $ 4 6 0 , 0 0 0 $ 6 6 0 , 0 0 0 $ 4 6 0 , 0 0 0 $ 6 6 0 , 0 0 0 Pu b l i c  Wo r k s  ‐   St o r m  Se w e r  (A ‐8) $ 5 3 6 , 1 5 0 $ 3 7 1 , 4 4 5 $ 4 2 8 , 6 3 5 $ 5 4 1 , 1 8 0 $ 3 0 5 , 3 2 0 $ 4 0 5 , 0 0 0 $ 4 6 2 , 9 8 5 $ 4 0 5 , 0 0 0 $ 4 0 5 , 0 0 0 $ 4 0 5 , 0 0 0 Po l i c e  (A ‐9) $ 3 7 6 , 8 8 3 $ 2 0 2 , 3 8 9 $ 1 9 7 , 9 1 1 $ 1 8 2 , 4 4 8 $ 1 9 8 , 0 0 2 $ 2 3 7 , 5 7 2 $ 2 4 0 , 1 5 9 $ 2 0 5 , 7 6 4 $ 1 9 8 , 3 8 6 $ 1 5 7 , 5 2 8 To t a l s $ 5 , 6 6 5 , 1 5 4 $ 9 , 5 8 7 , 8 1 9 $ 4 , 4 1 4 , 1 7 3 $ 5 , 3 4 0 , 3 3 4 $ 3 , 6 6 9 , 3 5 4 $ 3 , 9 2 0 , 9 0 0 $ 3 , 9 1 4 , 6 4 5 $ 4 , 7 0 4 , 5 1 9 $ 3 , 9 3 8 , 8 7 8 $ 4 , 1 8 3 , 8 7 5 De b t  Is s u e 2 0 2 1 2 0 2 2 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 20 1 0  St r e e t  Re c o n s t r u c t i o n  Bo n d s $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 20 1 4  Ga r a g e ,  Wa t e r ,  Re f u n d i n g  Bo n d s $ 1 6 6 , 7 0 0 $ 1 6 1 , 0 0 0 $ 2 4 2 , 0 0 0 $ 2 7 7 , 0 0 0 $ 2 7 7 , 0 0 0 $ 2 7 8 , 8 5 7 $ 2 7 8 , 0 0 0 $ 2 7 8 , 0 0 0 $ 0 $ 0 20 1 6  GO  Re f u n d i n g $ 4 1 2 , 7 8 0 $ 4 1 6 , 6 7 5 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Cu r r e n t  De b t  Le v y $ 5 7 9 , 4 8 0 $ 5 7 7 , 6 7 5 $ 2 4 2 , 0 0 0 $ 2 7 7 , 0 0 0 $ 2 7 7 , 0 0 0 $ 2 7 8 , 8 5 7 $ 2 7 8 , 0 0 0 $ 2 7 8 , 0 0 0 $ 0 $ 0 De b t  Se r v i c e  Le v y 5 ‐Ye a r  CI P Pl a n n i n g  Period Ca p i t a l  Im p r o v e m e n t  Pl a n ,  Ci t y  of  Or o n o Pa r k s  CI P Table  A ‐1 Pr o j e c t 20 2 1 2 0 2 2 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 Tr a i l  Co n s t r u c t i o n  al o n g  CS A H  19  (L i v i n g s t o n  to  Da k o t a )   $1 2 0 , 0 0 0 Lu r t o n  gr a v e l  tr a i l s $2 0 , 0 0 0 Sw i m  Pl a t f o r m  fo r  Sa n d y  Be a c h $ 1 0 , 0 0 0 Do c k  Fo r  Ly d i a r d  Be a c h $ 1 0 , 0 0 0 Pl a y g r o u n d  Eq u i p m e n t  Cr y s t a l  Ba y $6 5 , 0 0 0 Tr a i l  co n s t r u c t i o n  al o n g  No r t h  Ar m  Dr i v e  to  La k e v i e w  Le g a c y  Pa r k   $8 0 , 0 0 0 CR  6  Tr a i l  (O C B  ‐   Wi l l o w )  Im p r o v e m e n t $3 6 , 4 0 2 Su m m i t  Be a c h  Im p r o v e m e n t s  (p a v e d  pa r k i n g  an d  pl a y g r o u n d ) $ 9 5 , 3 0 0 Fr e n c h  Cr e e k  Pa r k  (T r e e  Ma i n t e a n c e  an d  Pl a n t i n g ) $2 0 , 0 0 0 Ha c k b e r r y  Im p r o v e m e n t s $3 0 0 , 0 0 0 Do c k  Re p l a c e m e n t  (1 5  ye a r  li f e ) $1 0 , 0 0 0 GC  We t l a n d  an d  Fa i r w a y  #4  Im p r o v e m e n t s $1 6 0 , 0 0 0 Pl a y g r o u n d  Eq u i p m e n t  Re p l a c e m e n t  (A n t o i n e ) $6 5 , 0 0 0 GC  La w n  Bo w l i n g $8 0 , 0 0 0 Tr a i l  Ac c e s s  to  Lo w r y  Wo o d s   $1 0 0 , 0 0 0 GC  To w  Ro p e   $1 0 2 , 0 0 0 Tr a i l  Co n s t r u c t i o n  al o n g  Hu n t e r  or  Fe r n d a l e  Ro a d s  co n n e c t i o n  Lu c e  li n e  to  no r t h e r n  bo u n d a r y    $1 3 3 , 8 9 0 Cr y s t a l  Ba y  Pa r k  Im p r o v e m e n t s  (S c o p e  TB D ) $300,000 GC  Pe r i m e t e r  Tr a i l   $214,700 Tr a i l  Co n s t r u c t i o n  al o n g  OC B  an d  No r t h  Sh o r e  (L u c e  Li n e  to  Da k o t a ) $567,000 Tr a i l  Co n s t r u c t i o n  al o n g  CS A H  19  so u t h  fr o m  th e  Da k o t a  Tr a i l $200,000 Pl a y g r o u n d  Eq u i p m e n t  Re p l a c e m e n t  (N a v a r r e ,  Ha c k b e r r y ,  Be d e r w o o d ,  Cr y s t a l  Ba y ,  Fa g e r n e s s ) $70,000 La k e  Ac c e s s  do c k  Re p l a c e m e n t s  (1 5  ye a r  re p l a c e m e n t  sc h e d u l e ) $1 0 , 0 0 0 $ 1 0 , 0 0 0 La k e  Ac c e s s  Re f r e s h  (G r a v e l ,  Si g n a g e ,  Fe n c i n g  an d  ga t e s ) $ 1 0 , 0 0 0 $ 1 0 , 0 0 0 Go l f  Co u r s e  Mi c e l l a n e o u s  Im p r o v e m e t n s $ 1 0 , 0 0 0 $ 1 0 , 0 0 0 $ 1 0 , 0 0 0 $ 1 0 , 0 0 0 $ 1 0 , 0 0 0 $ 1 0 , 0 0 0 $ 1 0 , 0 0 0 $ 1 0 , 0 0 0 $ 1 0 , 0 0 0 $ 1 0 , 0 0 0 To t a l s $1 7 0 , 0 0 0 $ 1 6 5 , 0 0 0 $ 1 4 1 , 7 0 2 $ 3 3 0 , 0 0 0 $ 2 5 5 , 0 0 0 $ 1 9 0 , 0 0 0 $ 2 5 5 , 8 9 0 $ 5 2 4 , 7 0 0 $ 5 7 7 , 0 0 0 $ 2 9 0 , 0 0 0 5 ‐Ye a r  CI P P l a n n i n g  Period No t e s :    1.  Th e  CS A H  11 2  Tr a i l  am o u n t  wa s  pr o v i d e d  by  He n n e p i n  Co u n t y .      Th e  am o u n t  ex c e e d s  av a i l a b l e  fu n d i n g .  Tr a i l  wo u l d  re q u i r e  ex t e n s i v e  ea r t h w o r k / r e t a i n i n g  wa l l s  fo r  ar e a  ne x t  to  we t l a n d s .  Ti m i n g  de p e n d s  upon  CSAH  112  Phase  3  project.  Decision  to   pr o c e e d  wi l l  be  ne e d e d  by  th e  Co u n t y  by  Oc t o b e r  20 2 0 . 2.  A  do c k / s w i m  pl a t f o r m  fo r  Sa n d y  Be a c h  wa s  ad d e d  to  th e  CI P  at  th e  re q u e s t  of  th e  Pa r k  Co m m i s i o n  on  Ju l y  6t h ,  20 2 0 . Ca p i t a l  Im p r o v e m e n t  Pl a n ,  Ci t y  of  Or o n o Eq u i p m e n t  CI P Table  A ‐2a Eq u i p m e n t  De s c r i p t i o n 20 2 1 2 0 2 2 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 Sk i d  lo a d e r $4 8 , 5 0 0 Tr a i l e r $1 1 , 0 0 0 To o l  Ca t $6 6 , 6 8 4 Te e  Mo w e r $3 8 , 0 0 0 Gr e e n s  Mo w e r $9 , 7 0 0 To p  Dr e s s e r $1 0 , 0 0 0 Cr a c k  Se a l i n g  Eq u i p m e n t $6 5 , 0 0 0 Tr u c k ,  1  To n  Du m p  Tr u c k  w/ P l o w  an d  Sa n d e r $1 4 2 , 3 7 3 Ut i l i t y  Se r v i c e  Tr u c k  wi t h  ho i s t $6 3 , 0 0 0 Ho t  Pa t c h  Tr u c k $1 8 8 , 0 0 0 Ch e v y  3/ 4  To n  Pi c k u p  w/ P l o w $3 7 , 0 0 0 Va c t o r  Tr u c k $4 5 0 , 0 0 0 Tr u c k ,  3/ 4  To n  Pi c k u p  w/ P l o w $5 0 , 0 0 0 Ch i p p e r $4 0 , 5 0 0 Je t  Ro d d e r ‐Ta n k  pu m p  an d  ho s e  un i t $3 0 0 , 0 0 0 Bu i l d i n g  In s p e c t i o n  Ve h i c l e $4 0 , 3 0 0 Tr a c t o r  Lo a d e r  Ba c k h o e $1 4 5 , 5 0 0 Tr a i l e r $9 , 0 0 0 Tr a i l e r $1 1 , 0 0 0 Ro u g h  Mo w e r $6 5 , 5 0 0 Gr e e n s  / Tu r f  Ro l l e r $1 3 , 0 0 0 Fo r d  3/ 4  To n  Pi c k u p $3 7 , 0 0 0 Sk i d  lo a d e r $70,000 Ad m i n  ve h i c l e   $50,000 Mo w e r    (B i g  is l a n d ) $8,961 Ai r  Co m p r e s s o r $40,000 Sn o w  bl o w e r $11,500 Ro l l e r $40,000 Du m p  Tr u c k  w/  Pl o w  an d  Sa n d e r $260,000 Tr u c k ,  1  To n  Du m p  Tr u c k  w/ P l o w  an d  Sa n d e r $102,800 To t a l s 12 6 , 1 8 4 $               32 8 , 0 7 3 $               22 5 , 0 0 0 $               45 0 , 0 0 0 $               39 0 , 5 0 0 $               18 5 , 8 0 0 $               13 5 , 5 0 0 $               140,461 $        40,000 $          402,800 $         5  Ye a r  CI P P l a n n i n g  Period Ca p i t a l  Im p r o v e m e n t  Pl a n ,  Ci t y  of  Or o n o Bu i l d i n g  CI P Table  A ‐2b Pr o j e c t 2 0 2 1 2 0 2 2 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 PW  Co l d  St o r a g e $3 0 , 0 0 0 Ci t y  Ha l l  Ca r p e t $2 0 , 0 0 0 Ci t y  Ha l l  an d  PW    In t e r i o r  Pa i n t i n g $1 5 , 0 0 0 Ci t y  Ha l l ,  PD  an d  PW  Se c u r i t y  Up g r a d e s $1 7 , 0 0 0 Ci t y  Ha l l  Pa r k i n g  Lo t  ch i p  Se a l    (7 y e a r s ) $3 5 , 0 0 0 Pu b l i c  Wo r k s  Ro o f  Re p l a c e m e n t $ 6 6 5 , 7 6 0 PW  Ai r  Ha n d l i n g  Sy s t e m  Re f u r b i s h $ 7 5 , 0 0 0 Ne w  Pu b l i c  Wo r k s  Fa c i l i t y $ 1 , 7 7 9 , 5 0 0 $ 5 , 9 0 4 , 8 7 5 Pu b l i c  Wo r k s  Pa r k i n g  Lo t  Re p a v e $1 1 9 , 5 6 0 Ci t y  Ha l l  Ro o f  Re p l a c e m e n t $3 2 0 , 0 0 0 Po l i c e  De p a r t m e n t  Ro o f  Re p l a c e m e n t $2 0 9 , 0 0 0 Fu t u r e  Fa c i l i t i e s  Im p r o v e m e n t s $1 6 0 , 0 0 0 $ 1 6 0 , 0 0 0 $ 1 6 0 , 0 0 0 $ 1 6 0 , 0 0 0 $ 1 6 0 , 0 0 0 To t a l s $ 1 , 8 3 1 , 5 0 0 $ 6 , 6 0 5 , 6 3 5 $ 1 0 5 , 0 0 0 $ 4 3 9 , 5 6 0 $ 2 0 9 , 0 0 0 $ 1 6 0 , 0 0 0 $ 1 6 0 , 0 0 0 $ 1 6 0 , 0 0 0 $ 1 6 0 , 0 0 0 $ 1 6 0 , 0 0 0 5 ‐Ye a r  CI P Pl a n n i n g  Period No t e s :  Wi t h  co u n c i l  pr o p o s a l  to  bu i l d  a  ne w  Pu b l i c  Wo r k s  fa c i l i t y ,  we  ne e d  to  de c o n f l i c t e d  / re p r i o r i t i z e  wo r k  to  ex i s t i n g  fa c i l i t y .    Th i s  is  de p e n d e n t  on  co n f i r m a t i o n  of  th e  ne w  fa c i l i t y ,  ti m e l i n e  fo r  the  new  facility  and  future  use  of  the  existing   fa c i l i t y .    Ca p i t a l  Im p r o v e m e n t  Pl a n ,  Ci t y  of  Or o n o Table  A ‐2c Pr o j e c t 2 0 2 1 2 0 2 2 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 Wi r e l e s s  Ac c e s s  Po i n t s  ‐   Ci t y  Ha l l  & PW $ 1 5 , 0 0 0 $1 8 , 0 0 0 Fi l e  Se r v e r s  X  2  (5  Ye a r s ) $1 2 , 0 0 0 Sw i t c h  (E v e r y  6  Ye a r s  ‐   6  Sw i t c h e s ) $ 1 5 , 0 0 0 $ 2 2 , 0 0 0 $ 1 5 , 0 0 0 Ph o n e  Re p l a c e m e n t    (1 0  Ye a r s ) $ 1 0 0 , 0 0 0 We b  Si t e  Up g r a d e $2 5 , 0 0 0 To t a l s $ 1 5 , 0 0 0 $ 1 1 5 , 0 0 0 $ 0 $ 0 $ 1 2 , 0 0 0 $ 2 2 , 0 0 0 $ 4 3 , 0 0 0 $ 1 5 , 0 0 0 $ 0 $ 0 IT  CI P 5 ‐Ye a r  CI P Pl a n n i n g  Period Ca p i t a l  Im p r o v e m e n t  Pl a n ,  Ci t y  of  Or o n o Table  A ‐3 Pr o j e c t 2 0 2 1 2 0 2 2 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 Re p l a c e  U1 1  wi t h  Ne w  Ut i l i t y  Ve h i c l e $ 1 3 0 , 0 0 0 Re p l a c e  CM D 2  wi t h  Ne w  CM D 1 $ 6 0 , 0 0 0 Re p l a c e  Ol d  U1 1  wi t h  Ne w  Gr a s s / M e d i c a l  Tr u c k   fo r  St a t i o n  2 $1 4 0 , 0 0 0 Re p l a c e  CM D 2 / D O  wi t h  ne w  CM D 1  ve h i c l e $6 5 , 0 0 0 Re p l a c e  U2 1  wi t h  Ne w  Ut i l i t y  Ve h i c l e $6 0 , 0 0 0 Re f u r b i s h m e n t  of  B1 1  & Tr a i l e r  wi t h  Ne w  Fi r e   bo a t  & Tr a i l e r $90,000 Re p l a c e  E2 1  wi t h  Ne w  Re s c u e  Pu m p e r $575,000 To t a l s : $ 1 3 0 , 0 0 0 $ 6 0 , 0 0 0 $ 0 $ 0 $ 1 4 0 , 0 0 0 $ 6 0 , 0 0 0 $ 6 5 , 0 0 0 $ 5 7 5 , 0 0 0 $ 0 $ 9 0 , 0 0 0 Ci t y  of  Or o n o ' s  Po r t i o n  (8 5 % ) $1 1 0 , 5 0 0 $ 5 1 , 0 0 0 $ 0 $ 0 $ 1 1 9 , 0 0 0 $ 5 1 , 0 0 0 $ 5 5 , 2 5 0 $ 4 8 8 , 7 5 0 $ 0 $ 7 6 , 5 0 0 To t a l s $ 1 1 0 , 5 0 0 $ 5 1 , 0 0 0 $ 0 $ 0 $ 1 1 9 , 0 0 0 $ 5 1 , 0 0 0 $ 5 5 , 2 5 0 $ 4 8 8 , 7 5 0 $ 0 $ 7 6 , 5 0 0 Lo n g  La k e  Fi r e  CI P 5 ‐Ye a r  CI P P l a n n i n g  Period Ca p i t a l  Im p r o v e m e n t  Pl a n ,  Ci t y  of  Or o n o Co m m u n i t y  In v e s t m e n t  CI P T a b l e  A ‐4 Pr o j e c t 2 0 2 1 2 0 2 2 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 Pa r k  an d  Ri d e  Ov e r l a y  an d  Re s t r i p i n g $5 0 , 0 0 0 Co u n t y  Ro a d  11 2  Tu r n  Ba c k  (L i g h t i n g / S i d e w a l k s )  * $5 6 8 , 9 7 0 To t a l s $ 5 0 , 0 0 0 $ 5 6 8 , 9 7 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 5 ‐Ye a r  CI P P l a n n i n g  Period * Th e  sc o p e  of  th e  Co u n t y  Ro a d  11 2  Tu r n  Ba c k  Pr o j e c t  is  ye t  to  be  de t e r m i n e d .    Th e r e f o r e ,  th e  co s t  es t i m a t e  fo r  th e  pr o j e c t  is  su b j e c t  to  ch a n g e  an d  re f i n e m e n t  as  th e  project  development  process  proceeds.   Th e  Ci t y ' s  fi n a l  sh a r e  of  th e  pr o j e c t  wi l l  be  es t a b l i s h e d  by  th e  Co u n t y ' s  co s t  sh a r i n g  po l i c y  an d  th e  fi n a l  sc o p e  of  th e  pr o j e c t  as  de v e l o p e d  by  th e  Ci t y  of  Or o n o  an d  He n n e p i n  County. Ca p i t a l  Im p r o v e m e n t  Pl a n ,  Ci t y  of  Or o n o Pu b l i c  Wo r k s  ‐   St r e e t s  CI P Table  A ‐5 Pr o j e c t T y p e  Co m m e n t ( s )   20 2 1 2 0 2 2 2 0 2 3 2 0 2 4 20 2 5 2 0 2 6 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 Ca s c o  Ci r c l e R e c l a i m $ 4 3 1 , 6 7 0 Pa r k  La n e  & El m  St r e e t R e c l a i m $ 1 7 3 , 7 0 0 Na v a r e e  We s t  Ro a d s  (L y r i c  Av e n u e  (B l a i n e  ot  Sh a d y w o o d ) ,  Cr y s t a l   Pl a c e , B l a i n e ) Mi l l  & Ov e r l a y $ 1 7 7 , 0 0 0 Na v a r r e  Ea s t  Ro a d s  (K e n w o o d  Wa y ,  Na v a r r e  La n e ,  Ol i v e  Av e n u e ,  Ba y v i e w   Mi l l  & Ov e r l a y $ 2 6 4 , 6 0 0 Ei l e e n  St r e e t M i l l  & Ov e r l a y $ 2 6 , 6 0 0 Co u n t r y  Cl u b  Ro a d  an d  La k e v i e w  Te r r a c e Mi l l  & Ov e r l a y $1 7 7 , 2 0 0 Ke l l e y  Pa r k w a y  ‐   OC B  Rd  to  St o n e  Ba y Re l c a i m $1 7 1 , 4 0 0 Pa r t e n w o o d Mi l l  & Ov e r l a y $1 2 2 , 3 0 0 Di c k e n s o n &  Ru s s e l  St r e e t Re c l a i m $4 2 0 , 3 8 6 Fo x  St r e e t  ‐     Br o w n ‐Or o n o  Or c h a r d R e c o n s t r u c t P e r m a n e n t  We i g h t  re s t r i c t i o n  un t i l  fi x e d $ 1 , 0 4 0 , 2 0 0 Fe r n d a l e  Ro a d  We s t R e c l a i m $3 2 5 , 7 0 0 To w n l i n e  Ro a d R e c o n s t r u c t $3 6 5 , 6 0 0 We s t  La k e  St r e e t Re c l a i m $3 7 , 6 0 0 Or c h a r d  Pa r k  Ro a d Re c l a i m $3 5 6 , 9 0 0 No r t h  Ar m  Dr i v e  & La n e Re c l a i m $7 2 2 , 2 0 0 Ol d  Lo n g  La k e  Ro a d Mi l l  & Ov e r l a y $3 8 5 , 2 0 0 Wi l l o w  Dr i v e  ‐   Fo x  St ‐  Br o w n  Ro a d Mi l l  & Ov e r l a y S h a r e d  wi t h  In d e p e n d e n c e  an d  Me d i n a . $ 3 0 9 , 4 0 0 Or o n o  La n e Mi l l  & Ov e r l a y $4 8 , 1 0 0 Pa r k  Av e ,  Oa k  St r e e t  an d  Li n d e n  Av e Mi l l  & Ov e r l a y $5 9 , 9 0 0 Ke l l y  Av e n u e Re c l a i m $5 0 6 , 9 0 0 Cr e s t v i e w  Av e n u e Mi l l  & Ov e r l a y $5 9 , 2 0 0 Gl e n d a l e  Dr i v e Mi l l  & Ov e r l a y $4 3 , 7 0 0 Da h l  Rd ,  Sp r u c e  PL ,  Li n d e n  ln ,  Fo r e s t  La k e  Dr  an d  Lo m a  Li n d a  Av e Mi l l  & Ov e r l a y $2 6 6 , 9 0 0 Cr y s t a l  Ba y  Ro a d s  (A r b o r ,  Pr o s p e c t ,  Cr y s t a l ,  Sp a t e s ,  La k e v i e w ) Mi l l  & Ov e r l a y $ 2 2 5 , 9 0 0 Fa i r v i e w  Co t t a g e Mi l l  & Ov e r l a y $9 , 5 0 0 Hi g h w o o d  La n e Mi l l  & Ov e r l a y $8 1 , 0 0 0 Pr e v e n t i v e  Ma i n t e n a n c e $5 0 , 0 0 0 $ 1 0 0 , 0 0 0 $ 1 0 0 , 0 0 0 $ 1 0 0 , 0 0 0 $ 1 0 0 , 0 0 0 Fu t u r e  ro a d  re c o n s t r u c t i o n s /  M& O  an d  Re c l a i m s  (p e r  Ye a r ) 2%  in f l a t i o n $1 , 1 7 3 , 0 0 0 $ 1 , 1 9 6 , 4 6 0 $ 1 , 2 2 0 , 3 8 9 $ 1 , 2 4 4 , 7 9 7 $ 1 , 2 6 9 , 6 9 3 To t a l  ‐   Pa v e m e n t  Ma n a g e m e n t  Fu n d $1 , 1 2 3 , 5 7 0 $ 3 2 5 , 9 0 0 $ 2 , 3 5 7 , 1 8 6 $ 2 , 2 7 6 , 9 0 0 $ 1 , 1 7 5 , 2 0 0 $ 1 , 1 7 3 , 0 0 0 $ 1 , 1 9 6 , 4 6 0 $ 1 , 2 2 0 , 3 8 9 $ 1 , 2 4 4 , 7 9 7 $ 1 , 2 6 9 , 6 9 3 5 ‐Ye a r  CI P P l a n n i n g  Period Ca p i t a l  Im p r o v e m e n t  Pl a n ,  Ci t y  of  Or o n o Pu b l i c  Wo r k s  ‐   St r e e t s  CI P Table  A ‐5 Pr o j e c t T y p e  Co m m e n t ( s )   20 2 1 2 0 2 2 2 0 2 3 2 0 2 4 20 2 5 2 0 2 6 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 5 ‐Ye a r  CI P P l a n n i n g  Period MS A  St r e e t s : Fe r n d a l e  Ro a d  No r t h    (S h a r e d  wi t h  Pl y m o u t h ) M i l l  & Ov e r l a y F i n a n c e d  by  Pl y m o u t h ‐  Pa y b a c k  o v $7 1 , 8 6 7 $ 7 1 , 8 6 7 Br o w n  Ro a d  No r t h M i l l  an d  Ov e r l a y $3 4 8 , 0 0 0 Ol d  Cr y s t a l  Ba y  Ro a d  (W a t e r t o w n  to  Fo x ) T h i n  Ov e r l a y $8 8 , 0 0 0 Fu t u r e  MS A  ro a d  pr o j e c t s  (p e r  ye a r ) M i l l  an d  Ov e r l a y 2 %  in f l a t i o n $4 0 8 , 0 0 0 $ 4 1 6 , 1 6 0 $ 4 2 4 , 4 8 3 $ 4 3 2 , 9 7 3 $ 4 4 1 , 6 3 2 To t a l  MS A  St r e e t s : $7 1 , 8 6 7 $ 7 1 , 8 6 7 $ 0 $ 3 4 8 , 0 0 0 $ 8 8 , 0 0 0 $ 4 0 8 , 0 0 0 $ 4 1 6 , 1 6 0 $ 4 2 4 , 4 8 3 $ 4 3 2 , 9 7 3 $ 4 4 1 , 6 3 2 MS A  De b t  Se r v i c e $1 4 3 , 1 1 1 $ 1 3 9 , 6 6 1 $ 1 4 1 , 0 6 1 $ 1 4 1 , 9 4 5 $ 1 3 7 , 4 6 8 $ 1 3 7 , 6 8 7 $ 1 4 2 , 6 2 5 To t a l s  St r e e t s $1 , 1 9 5 , 4 3 7 $ 3 9 7 , 7 6 7 $ 2 , 3 5 7 , 1 8 6 $ 2 , 6 2 4 , 9 0 0 $ 1 , 2 6 3 , 2 0 0 $ 1 , 5 8 1 , 0 0 0 $ 1 , 6 1 2 , 6 2 0 $ 1 , 6 4 4 , 8 7 2 $ 1 , 6 7 7 , 7 7 0 $ 1 , 7 1 1 , 3 2 5 No t e s :    Pa v e m e n t  Fu n d i n g  re m a i n s  a  co n c e r n .      A  co u p l e  la r g e  pa v e m e n t  pr o j e c t s  ar e  re c o m m e n d e d  in  th e  ne a r  te r m .   Ca p i t a l  Im p r o v e m e n t  Pl a n ,  Ci t y  of  Or o n o Pu b l i c  Wo r k s  ‐   Wa t e r  CI P T a b l e  A ‐6 Pr o j e c t 2 0 2 1 2 0 2 2 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 Wa t e r  Sy t e m  wo r k  wi t h  Ro a d  Pr o j e c t s  (V a l v e  re p l a c e m e n t s ) $1 4 8 , 5 0 0 $ 1 6 , 5 0 0 $ 4 0 , 0 0 0 $ 4 0 , 0 0 0 $ 4 0 , 0 0 0 $ 4 0 , 0 0 0 $ 4 0 , 0 0 0 Na v a r r e  Pl a n t  Co n t r o l  Up g r a d e $5 5 , 2 0 0 Wa t e r  Me t e r  Re p l a c e m e n t   $9 0 , 0 0 0 $ 9 5 , 0 0 0 $ 1 7 0 , 0 0 0 Wa l t e r s  Po r t  Wa t e r m a i n  Re p l a c e m e n t $1 6 0 , 0 0 0 So u t h  To w e r  Re p a i n t  an d  Re h a b i l i t a t i o n $3 5 0 , 0 0 0 No r t h  Wa t e r  To w e r  de e p  cl e a n / I n s p e c t i o n  an d  re p a i r s $ 7 5 , 4 5 0 Wa t e r  ma i n  Re p l a c e m e n t  CS A H  19  (C S A H  15  to  Ke l l y ) $ 2 7 0 , 9 0 0 Wa t e r  ma i n  Re p l a c e m e n t  CS A H  19  (K e l l y  to  W.  La f a y e t t e ) $ 2 3 8 , 6 0 0 No r t h  Di s t r i b u t i o n  Ex t e n s i o n  (W e s t  of  OC B ) $120,000 We l l  #4  In s p e c t i o n  & Ma i n t e n a n c e  (e v e r y  10  yr s ) $2 0 , 0 0 0 No r t h  Wa t e r  Pl a n t   $3 0 , 0 0 0 So u t h  Wa t e r  Pl a n t  Pa i n t i n g $6 0 , 0 0 0 Na v a r r e  Pl a n t  Sa l t  Br i n e  Ta n k  Re h a b . $350,000 We l l  #1  In s p e c t i o n  an d  Ma i n t e n a n c e  (e v e r y  10  yr s ) $2 0 , 0 0 0 We l l  #2  In s p e c t i o n  an d  Ma i n t e n a n c e ( e v e r y  10  yr s ) $2 0 , 0 0 0 Wa t e r  Ma i n  Lo o p  Co n c o r d i a $2 3 0 , 0 0 0 No r t h  We l l  ho u s e  Up g r a d e  (s e w e r ) We l l  #3  In s p e c t i o n  & Ma i n t e n a n c e  (e v e r y  10  yr s ) $20,000 Wa t e r  Va l v e  Re p l a c e m e n t s  (4  / Ye a r ) $ 2 2 , 0 0 0 $ 2 2 , 4 4 0 $ 2 2 , 8 8 9 $ 2 3 , 3 4 7 $ 2 7 , 8 3 3 $ 2 8 , 5 2 8 $ 2 9 , 2 4 2 $ 2 9 , 9 7 3 $ 3 0 , 7 2 2 $ 3 0 , 7 2 2 Wa t e r  Ma i n  Re p l a c e m e n t / R e h a b   $2 5 0 , 0 0 0 $ 2 5 0 , 0 0 0 $ 2 5 0 , 0 0 0 To t a l s $ 4 2 0 , 5 0 0 $ 3 4 8 , 5 4 0 $ 2 7 7 , 9 8 9 $ 1 9 3 , 7 9 7 $ 3 9 7 , 8 3 3 $ 4 2 8 , 5 2 8 $ 4 8 9 , 2 4 2 $ 4 5 9 , 9 7 3 $ 4 2 0 , 7 2 2 $ 3 2 0 , 7 2 2 5 ‐Ye a r  CI P P l a n n i n g  Period Ca p i t a l  Im p r o v e m e n t  Pl a n ,  Ci t y  of  Or o n o Pu b l i c  Wo r k s  ‐   Sa n i t a r y  Se w e r  CI P T a b l e  A ‐7 Pr o j e c t 2 0 2 1 2 0 2 2 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 Se w e r  Re h a b i l i t a t i o n $ 2 9 0 , 0 0 0 $ 2 9 0 , 0 0 0 $ 2 9 0 , 0 0 0 $ 2 9 0 , 0 0 0 $ 2 9 0 , 0 0 0 $ 2 9 0 , 0 0 0 $ 2 9 0 , 0 0 0 $ 2 9 0 , 0 0 0 $ 2 9 0 , 0 0 0 $ 2 9 0 , 0 0 0 Ro a d  Pr o j e c t  Sa n i t a r y  Ad j u s t e m e n t s   $6 3 , 0 0 0 $ 2 4 , 0 0 0 $ 5 5 , 5 0 0 $ 2 8 , 5 0 0 $ 1 0 9 , 5 0 0 $ 5 0 , 0 0 0 $ 5 0 , 0 0 0 $ 5 0 , 0 0 0 $ 5 0 , 0 0 0 $ 5 0 , 0 0 0 Li f t  St a t i o n  #1 5  Ge n e r a t o r $ 7 5 , 0 0 0 Li f t  St a t i o n  #1 6  Re h a b $ 6 0 , 0 0 0 Li f t  St a t i o n  #1 7  Re h a b $ 6 0 , 0 0 0 Li f t  St a t i o n  #1 1  Re h a b $ 6 0 , 0 0 0 Li f t  St a t i o n  #3  Re h a b $ 6 0 , 0 0 0 Li f t  St a t i o n  #5  Re h a b $6 0 , 0 0 0 Li f t  St a t i o n  #4  Re h a b $6 0 , 0 0 0 Li f t  St a t i o n  #2 8  Re h a b $6 0 , 0 0 0 Gr i n d e r  St a t i o n  #8  Re h a b $6 0 , 0 0 0 Li f t  St a t i o n  #1 0  Re h a b $6 0 , 0 0 0 Li f t  St a t i o n  #2 7 R e h a b $6 0 , 0 0 0 Li f t  St a t i o n  Re h a b  (2  pe r  ye a r ) $1 2 0 , 0 0 0 $ 1 2 0 , 0 0 0 $ 1 2 0 , 0 0 0 $ 1 2 0 , 0 0 0 $ 1 2 0 , 0 0 0 Fo r c e  ma i n  Re p l a c e m e n t  To n k a w a  PH 2 $ 2 2 5 , 0 0 0 Se w e r  Me t e r  in s t a l l a t i o n  (i n t o  Lo n g  La k e ) $ 6 0 , 0 0 0 Fo r c e  Ma i n  Re p l a c e m e n t  To n k a w a  PH 3 $ 2 1 5 , 2 5 0 Fo r c e  Ma i n  Re p l a c e m e n t  To n k a w a  PH 4 $1 3 9 , 9 5 0 Se w e r  Ma i n  Re p l a c e m e n t s   $2 0 0 , 0 0 0 $ 2 0 0 , 0 0 0 $ 2 0 0 , 0 0 0 To t a l s $ 8 3 3 , 0 0 0 $ 4 3 4 , 0 0 0 $ 6 8 0 , 7 5 0 $ 5 7 8 , 4 5 0 $ 5 1 9 , 5 0 0 $ 6 6 0 , 0 0 0 $ 4 6 0 , 0 0 0 $ 6 6 0 , 0 0 0 $ 4 6 0 , 0 0 0 $ 6 6 0 , 0 0 0 5 ‐Ye a r  CI P P l a n n i n g  Period Ca p i t a l  Im p r o v e m e n t  Pl a n ,  Ci t y  of  Or o n o Pu b l i c  Wo r k s  ‐   St o r m  Se w e r  CI P T a b l e  A ‐8 Pr o j e c t 2 0 2 1 2 0 2 2 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 Ca s c o  Ci r c l e $ 4 9 , 3 8 0 Pa r k  La n e  & El m  St r e e t $ 2 6 , 1 9 0 Na v a r e e  We s t  Ro a d s  (L y r i c  Av e n u e  (B l a i n e  ot  Sh a d y w o o d ) ,  Cr y s t a l  Pl a c e , B l $ 4 9 , 1 6 5 Na v a r r e  Ea s t  Ro a d s  (K e n w o o d  Wa y ,  Na v a r r e  La n e ,  Ol i v e  Av e n u e ,  Ba y v i e w  p $3 9 , 6 9 0 Ei l e e n  St r e e t $ 7 , 7 2 5 Mu n i c i p a l  Pa r k i n g  Lo t  St o r m  Ma n h o l e  Re b u i l d s $3 5 , 0 0 0 Cr y s t a l  Ba y  Ro a d s  (A r b o r ,  Pr o s p e c t ,  Cr y s t a l ,  Sp a t e s ,  La k e v i e w ) $ 3 8 , 4 4 5 Co u n t r y  Cl u b  Ro a d  an d  La k e v i e w  Te r r a c e $ 2 6 , 5 8 0 Ke l l e y  Pa r k w a y  ‐   OC B  Rd  to  St o n e  Ba y $ 2 5 , 7 1 0 Pa r t e n w o o d $1 8 , 3 4 5 Di c k e n s o n &  Ru s s e l  St r e e t $3 5 , 5 7 5 Fo x  St r e e t  ‐     Br o w n ‐Or o n o  Or c h a r d $ 1 5 0 , 5 7 0 Fe r n d a l e  Ro a d  We s t $4 8 , 8 5 5 To w n l i n e  Ro a d $5 4 , 8 4 0 We s t  La k e  St r e e t $1 0 , 9 2 0 Or c h a r d  Pa r k  Ro a d $5 3 , 5 3 5 No r t h  Ar m  Dr i v e  & La n e $1 0 6 , 0 5 0 Ol d  Lo n g  La k e  Ro a d $5 7 , 5 8 0 Wi l l o w  Dr i v e  ‐   Fo x  St ‐  Br o w n  Ro a d $4 6 , 4 1 0 Or o n o  La n e $7 , 2 1 5 Pa r k  Av e ,  Oa k  St r e e t  an d  Li n d e n  Av e $8 , 9 8 5 5 ‐Ye a r  CI P P l a n n i n g  Period Ca p i t a l  Im p r o v e m e n t  Pl a n ,  Ci t y  of  Or o n o Pu b l i c  Wo r k s  ‐   St o r m  Se w e r  CI P T a b l e  A ‐8 Pr o j e c t 2 0 2 1 2 0 2 2 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 5 ‐Ye a r  CI P P l a n n i n g  Period Ke l l y  Av e n u e $7 6 , 0 3 5 Cr e s t v i e w  Av e n u e $8 , 8 8 0 Gl e n d a l e  Dr i v e $6 , 5 5 5 Br o w n  Ro a d  N. $5 2 , 2 0 0 Da h l  Rd ,  Sp r u c e  PL ,  Li n d e n  ln ,  Fo r e s t  La k e  Dr  an d  Lo m a  Li n d a  Av e $3 1 , 8 7 5 Fa i r v i e w  Co t t a g e $1 , 4 2 5 Hi g h w o o d  La n e $1 2 , 1 5 0 St r e e t  St o r m w a t e r  Im p r o v e m e n t s  (p e r  ye a r ) $2 2 0 , 0 0 0 $ 2 2 0 , 0 0 0 $ 2 2 0 , 0 0 0 $ 2 2 0 , 0 0 0 $ 2 2 0 , 0 0 0 Ca s c o  Po i n t  Pa r k  Ou t l e t  (S W M P  O ‐1) $5 8 , 0 0 0 So u t h  Ca s c o  Po i n t  Ro a d  Su m p  (S W M P  CB ‐2) $3 6 , 0 0 0 Ca s c o  Po i n t  Pa r k  Bi o r e t e n t i o n  Ba s i n  (S W M P  CB ‐1) $5 5 , 0 0 0 Fa g e r n e s s  Po i n t  Ro a d  Dr a i n a i n g e  Sy s t e m $8 0 , 0 0 0 No r t h  Sh o r e  Dr i v e  Ra v i n e  St a b i l i z a t i o n $ 9 6 , 0 0 0 Ca s c o  Co v e  Ou t l e t  (S W M P  O ‐2) $ 8 0 , 0 0 0 Ca s c o  Co v e  Bi o r e t e n t i o n  Ba s i n  (C B ‐3) $ 5 7 , 0 0 0 Ch e r r y  Pl a c e  Ra v i n e  Im p r o v e m e n t  (S W M P  NA ‐1) $ 2 3 , 0 0 0 Mc C u l l e y  Ro a d  Ou t l e t  (S W M P  O ‐3) $5 8 , 0 0 0 Su r f a c e  Wa t e r  Ma n a g e m e n t  Pr o j e c t s ,  Un n a m e d    (P e r  Ye a r ) $8 5 , 0 0 0 $ 8 5 , 0 0 0 $ 8 5 , 0 0 0 $ 8 5 , 0 0 0 $ 8 5 , 0 0 0 Dr e d g e  GC  Po n d $ 5 0 , 0 0 0 Po n d  Cl e a n i n g / M a i n t e n a n c e  (1 / 3  ye a r s ) $5 3 , 8 4 5 $ 5 7 , 9 8 5 St o r m  Se w e r  Im p r o v e m e n t s / R e p l a c e m e n t s    (P e r  Ye a r ) 5 0 , 0 0 0 $                     10 0 , 0 0 0 $               10 0 , 0 0 0 $               10 0 , 0 0 0 $               10 0 , 0 0 0 $               10 0 , 0 0 0 $               10 0 , 0 0 0 $               100,000 $        100,000 $        100,000 $         To t a l s $ 5 3 6 , 1 5 0 $ 3 7 1 , 4 4 5 $ 4 2 8 , 6 3 5 $ 5 4 1 , 1 8 0 $ 3 0 5 , 3 2 0 $ 4 0 5 , 0 0 0 $ 4 6 2 , 9 8 5 $ 4 0 5 , 0 0 0 $ 4 0 5 , 0 0 0 $ 4 0 5 , 0 0 0 Ca p i t a l  Im p r o v e m e n t  Pl a n ,  Ci t y  of  Or o n o Po l i c e  CI P Table  A ‐9 Pu r c h a s e E x p e c t e d   Pr o j e c t Y e a r L i f e  (y r s ) 2 0 2 1 2 0 2 2 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 Sq u a d  26 4  (D o d g e  Du r a n g o  SU V )   20 2 0 4 $ 4 1 , 0 0 0 $ 4 2 , 5 0 0   Sq u a d  26 5    (D o d g e  Du r a n g o  SU V ) 2 0 2 0 4   $4 1 , 0 0 0   $42,500 Sq u a d  26 6    (D o d g e  Du r a n g o  SU V ) S R O / I n v 2 0 2 0 4   $4 1 , 0 0 0 $ 4 2 , 5 0 0 Sq u a d  26 3 ( F o r d  SU V )   20 1 9 4   $4 1 , 0 0 0   $42,500 Sq u a d  24 9  (F o r d  SU V ) 2 0 1 7 4 $ 4 0 , 0 0 0   $4 1 , 0 0 0 $ 4 3 , 0 0 0 Sq u a d  25 0  (F o r d  SU V )   20 1 7 4 $ 4 0 , 0 0 0 $ 4 1 , 0 0 0 $ 4 3 , 0 0 0   Sq u a d  25 1  (F o r d  SU V ) 2 0 1 7 4 $ 4 0 , 0 0 0   $4 1 , 0 0 0   $43,000   Sq u a d  25 3  (A W D  Ch a r g e r ) 2 0 1 8 4 $ 4 0 , 0 0 0   $4 2 , 0 0 0  $43,500 Sq u a d  25 4  (F o r d  SU V ) 2 0 1 8 4 $ 4 0 , 0 0 0   $4 2 , 0 0 0 $ 4 3 , 5 0 0 Sq u a d  25 8  (D o d g e  Du r a n g o ) 2 0 1 9 4   $4 0 , 0 0 0   $4 2 , 5 0 0 Sq u a d  25 9  (D o d g e  Du r a n g o ) 2 0 1 9 4   $4 0 , 0 0 0   $4 2 , 5 0 0 Sq u a d  26 0  (D o d g e  Du r a n g o ) 2 0 1 9 4   $4 0 , 0 0 0   $4 2 , 5 0 0 Sq u a d  26 1  (D o d g e  Du r a n g o )  Ch i e f 2 0 1 9 6   $4 2 , 0 0 0  $43,500 Sq u a d  84 3  (T a h o e ‐Mo u n d )    SR O 2 0 1 0 1 0 $ 4 0 , 0 0 0      Sq u a d  25 5  (D o d g e  Du r a n g o )  CS O 2 0 1 8 4 $ 4 0 , 0 0 0   $4 2 , 5 0 0   Sq u a d  24 7  (D o d g e  Ra m )    In v e s t i g a t i o n s 2 0 1 6 6   $4 0 , 0 0 0 $ 4 2 , 0 0 0 Sq u a d  25 7  (D o d g e  Jo u n e y )  De p u t y  Ch i e f 2 0 1 8 6    $4 0 , 0 0 0   $43,000 Sq u a d  25 6  (D o d g e  Jo u r n e y )  In v e s t i g a t i o n s 2 0 1 8 6 $ 4 1 , 0 0 0 Te c h n o l o g y  Re p l a c e m e n t $ 1 1 , 2 5 5 $ 1 1 , 5 9 3 $ 1 1 , 9 4 1 $ 1 2 , 2 9 9 $ 1 2 , 6 6 8 $ 1 3 , 0 4 8 $ 1 3 , 4 3 9 $ 1 3 , 8 4 2 $ 1 4 , 2 5 8 $ 1 4 , 6 8 5 We a p o n s  ‐   Ri f l e s   $2 5 , 0 0 0 $5,000 $ 5 , 0 0 0 We a p o n s  ‐   Ha n d g u n s $2 0 , 0 0 0 Su p p o r t e d  or  Pa r t i a l l y  Fu n d e d  th r o u g h  Po l i c e  Ac c o u n t  in  th e  PI R  Fu n d Mo b i l e  Ra d i o s   $5 0 , 0 0 0 $ 5 0 , 0 0 0 Sq u a d / B o d y  Vi d e o  Ca m e r a s $ 2 0 0 , 0 0 0   $1 5 , 0 0 0 $ 1 5 , 0 0 0 Mo b i l e  Da t a  Co m p u t e r $ 5 , 6 2 8 $ 5 , 7 9 6 $ 5 , 9 7 0 $ 6 , 1 4 9 $ 6 , 3 3 4 $ 6 , 5 2 4 $ 6 , 7 2 0 $ 6 , 9 2 1 $ 7 , 1 2 9 $ 7 , 3 4 3 To t a l s $ 3 7 6 , 8 8 3 $ 2 0 2 , 3 8 9 $ 1 9 7 , 9 1 1 $ 1 8 2 , 4 4 8 $ 1 9 8 , 0 0 2 $ 2 3 7 , 5 7 2 $ 2 4 0 , 1 5 9 $ 2 0 5 , 7 6 4 $ 1 9 8 , 3 8 6 $ 1 5 7 , 5 2 8 NO T E S : *F u n d i n g  fo r  th e  Po l i c e  CI P  is  ac c o u n t e d  fo r  in  th e  Ge n e r a l  Fu n d  to  ac c u r a t e l y  ch a r g e  ou r  co n t r a c t  ci t i e s  fo r  th e  co s t  of  po l i c i n g . 5 ‐Ye a r  CI P P l a n n i n g  Period Ca p i t a l  Im p r o v e m e n t  Pl a n ,  Ci t y  of  Or o n o Pa r k  Fu n d Cu r r e n t  Ba l a n c e : $ 2 7 7 , 4 2 6 22 5 2 5 0 0 0 Table  B ‐1 Pr o j e c t 2 0 2 1 2 0 2 2 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 Op e r a t i o n  an d  Ma i n t e n a n c e  (1 ) $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 CI P  Ex p e n d i t u r e s $ 1 6 0 , 0 0 0 $ 1 4 5 , 0 0 0 $ 1 3 1 , 7 0 2 $ 3 2 0 , 0 0 0 $ 2 3 5 , 0 0 0 $ 8 0 , 0 0 0 $ 0 $ 0 $ 0 $ 0 To t a l  Ex p e n s e s $ 1 6 0 , 0 0 0 $ 1 4 5 , 0 0 0 $ 1 3 1 , 7 0 2 $ 3 2 0 , 0 0 0 $ 2 3 5 , 0 0 0 $ 8 0 , 0 0 0 $ 0 $ 0 $ 0 $ 0 Re v e n u e s $ 5 , 7 5 6 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Re v e n u e s  ‐   Pa r k  De d i c a t i o n $ 1 0 , 0 0 0 $ 1 0 , 0 0 0 $ 1 0 , 0 0 0 $ 1 0 , 0 0 0 $ 1 0 , 0 0 0 $ 1 0 , 0 0 0 $ 1 0 , 0 0 0 $ 1 0 , 0 0 0 $ 1 0 , 0 0 0 $ 1 0 , 0 0 0 Re v e n u e s  ‐   Ta x  Le v y $ 5 0 , 0 0 0 $ 5 0 , 0 0 0 $ 5 0 , 0 0 0 $ 5 0 , 0 0 0 $ 5 0 , 0 0 0 $ 5 0 , 0 0 0 $ 5 0 , 0 0 0 $ 5 0 , 0 0 0 $ 5 0 , 0 0 0 $ 5 0 , 0 0 0 An n u a l  Ba l a n c e ($ 9 4 , 2 4 4 ) ( $ 1 4 5 , 0 0 0 ) ( $ 1 3 1 , 7 0 2 ) ( $ 3 2 0 , 0 0 0 ) ( $ 2 3 5 , 0 0 0 ) ( $ 8 0 , 0 0 0 ) $0 $ 0 $ 0 $ 0 Ye a r  En d  Ca s h  Ba l a n c e $ 1 8 3 , 1 8 2 $ 3 8 , 1 8 2 ($ 9 3 , 5 2 0 ) ( $ 4 1 3 , 5 2 0 ) ( $ 6 4 8 , 5 2 0 ) ( $ 7 2 8 , 5 2 0 ) ( $ 7 2 8 , 5 2 0 ) ( $ 7 2 8 , 5 2 0 ) ( $ 7 2 8 , 5 2 0 ) ( $ 7 2 8 , 5 2 0 ) Im p r o v e m e n t / E q u i p m e n t  Ou t l a y  Fu n d Cu r r e n t  Ba l a n c e : $ 4 6 5 , 3 7 0 Table  B ‐2 Pr o j e c t 2 0 2 1 2 0 2 2 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 Eq u i p m e n t ,  CI P $ 1 2 6 , 1 8 4 $ 3 2 8 , 0 7 3 $ 2 2 5 , 0 0 0 $ 4 5 0 , 0 0 0 $ 3 9 0 , 5 0 0 $ 1 8 5 , 8 0 0 $ 1 3 5 , 5 0 0 $ 1 4 0 , 4 6 1 $ 4 0 , 0 0 0 $ 4 0 2 , 8 0 0 Bu i l d i n g  CI P $ 1 , 8 3 1 , 5 0 0 $ 6 , 6 0 5 , 6 3 5 $ 1 0 5 , 0 0 0 $ 4 3 9 , 5 6 0 $ 2 0 9 , 0 0 0 $ 1 6 0 , 0 0 0 $ 1 6 0 , 0 0 0 $ 1 6 0 , 0 0 0 $ 1 6 0 , 0 0 0 $ 1 6 0 , 0 0 0 IT ,  CI P $ 1 5 , 0 0 0 $ 1 1 5 , 0 0 0 $ 0 $ 0 $ 1 2 , 0 0 0 $ 2 2 , 0 0 0 $ 4 3 , 0 0 0 $ 1 5 , 0 0 0 $ 0 $ 0 Go l f ,  CI P $ 1 0 , 0 0 0 $ 2 0 , 0 0 0 $ 1 0 , 0 0 0 $ 1 0 , 0 0 0 $ 2 0 , 0 0 0 $ 1 1 0 , 0 0 0 $ 2 5 5 , 8 9 0 $ 5 2 4 , 7 0 0 $ 5 7 7 , 0 0 0 $ 2 9 0 , 0 0 0 To t a l  Ex p e n s e s $ 1 , 9 8 2 , 6 8 4 $ 7 , 0 6 8 , 7 0 8 $ 3 4 0 , 0 0 0 $ 8 9 9 , 5 6 0 $ 6 3 1 , 5 0 0 $ 4 7 7 , 8 0 0 $ 5 9 4 , 3 9 0 $ 8 4 0 , 1 6 1 $ 7 7 7 , 0 0 0 $ 8 5 2 , 8 0 0 Re v e n u e s  (T r a n s f e r ) $ 2 5 5 , 0 0 0 $ 3 1 5 , 0 0 0 $ 3 1 5 , 0 0 0 $ 3 1 5 , 0 0 0 $ 3 1 5 , 0 0 0 $ 3 1 5 , 0 0 0 $ 3 1 5 , 0 0 0 $ 3 1 5 , 0 0 0 $ 3 1 5 , 0 0 0 $ 3 1 5 , 0 0 0 Tr a n s f e r  fr o m  En t e r p r i s e  Fu n d s $ 4 8 , 5 0 0 $ 6 3 , 0 0 0 $ 3 7 , 0 0 0 $ 4 5 0 , 0 0 0 $ 3 0 0 , 0 0 0 $ 1 4 5 , 5 0 0 $ 3 7 , 0 0 0 $ 0 $ 0 $ 0 An n u a l  Ba l a n c e ($ 1 , 6 7 9 , 1 8 4 ) ( $ 6 , 6 9 0 , 7 0 8 ) $1 2 , 0 0 0 ($ 1 3 4 , 5 6 0 ) ( $ 1 6 , 5 0 0 ) ( $ 1 7 , 3 0 0 ) ( $ 2 4 2 , 3 9 0 ) ( $ 5 2 5 , 1 6 1 ) ( $ 4 6 2 , 0 0 0 ) ( $ 5 3 7 , 8 0 0 ) Ye a r  En d  Ca s h  Ba l a n c e ($ 1 , 2 1 3 , 8 1 4 ) ( $ 7 , 9 0 4 , 5 2 2 ) ( $ 7 , 8 9 2 , 5 2 2 ) ( $ 8 , 0 2 7 , 0 8 2 ) ( $ 8 , 0 4 3 , 5 8 2 ) ( $ 8 , 0 6 0 , 8 8 2 ) ( $ 8 , 3 0 3 , 2 7 2 ) ( $ 8 , 8 2 8 , 4 3 3 ) ( $ 9 , 2 9 0 , 4 3 3 ) ( $ 9 , 8 2 8 , 2 3 3 ) Im p r o v e m e n t / E q u i p m e n t  Ou t l a y  Fu n d  ‐   Lo n g  La k e  Fi r e  Ac c o u n t Cu r r e n t  Ba l a n c e : $ 1 5 0 , 6 3 3 Table  B ‐3 Pr o j e c t 2 0 2 1 2 0 2 2 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 Lo n g  La k e  Fi r e  CI P $ 1 1 0 , 5 0 0 $ 5 1 , 0 0 0 $ 0 $ 0 $ 1 1 9 , 0 0 0 $ 5 1 , 0 0 0 $ 5 5 , 2 5 0 $ 4 8 8 , 7 5 0 $ 0 $ 7 6 , 5 0 0 To t a l  Ex p e n s e s $ 1 1 0 , 5 0 0 $ 5 1 , 0 0 0 $ 0 $ 0 $ 1 1 9 , 0 0 0 $ 5 1 , 0 0 0 $ 5 5 , 2 5 0 $ 4 8 8 , 7 5 0 $ 0 $ 7 6 , 5 0 0 Re v e n u e  ‐   Ge n e r a l  Fu n d  Tr a n s f e r  (2 ) $ 8 5 , 0 0 0 $ 8 5 , 0 0 0 $ 8 5 , 0 0 0 $ 8 5 , 0 0 0 $ 8 5 , 0 0 0 $ 8 5 , 0 0 0 $ 8 5 , 0 0 0 $ 8 5 , 0 0 0 $ 8 5 , 0 0 0 $ 8 5 , 0 0 0 Re v e n u e s  ‐   In t e r e s t  (2 ) $ 5 , 0 0 0 $ 1 , 3 0 1 $ 1 , 6 5 4 $ 2 , 5 2 1 $ 3 , 3 9 6 $ 3 , 0 9 0 $ 3 , 4 6 1 $ 3 , 7 9 3 $ 0 $ 6 4 3 An n u a l  Ba l a n c e ($ 2 0 , 5 0 0 ) $3 5 , 3 0 1 $ 8 6 , 6 5 4 $ 8 7 , 5 2 1 ($ 3 0 , 6 0 4 ) $3 7 , 0 9 0 $ 3 3 , 2 1 1 ($ 3 9 9 , 9 5 7 ) $85,000 $ 9 , 1 4 3 Ye a r  En d  Ca s h  Ba l a n c e $ 1 3 0 , 1 3 3 $ 1 6 5 , 4 3 4 $ 2 5 2 , 0 8 9 $ 3 3 9 , 6 1 0 $ 3 0 9 , 0 0 6 $ 3 4 6 , 0 9 6 $ 3 7 9 , 3 0 7 ($ 2 0 , 6 5 0 ) $64,350 $ 7 3 , 4 9 3 Co m m u n i t y  In v e s t m e n t  Fu n d Cu r r e n t  Ba l a n c e : $ 6 7 1 , 6 8 4 40 8 ‐25 0 0 0 Table  B ‐4 Pr o j e c t 2 0 2 1 2 0 2 2 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 An n u a l  Ex p e n d i t u r e s   $0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Co m m u n i t y  Im p r o v e m e n t  CI P $ 5 0 , 0 0 0 $ 5 6 8 , 9 7 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 De b t  Se r v i c e $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 To t a l  Ex p e n s e s $ 5 0 , 0 0 0 $ 5 6 8 , 9 7 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Re v e n u e s  (i n t e r e s t ) $ 5 , 0 0 0 $ 5 , 0 0 0 $ 5 , 0 0 0 $ 6 7 7 $ 6 8 4 $ 6 9 1 $ 6 9 8 $ 7 0 5 $ 7 1 2 $ 7 1 9 Ye a r  En d  Ca s h  Ba l a n c e $ 6 2 6 , 6 8 4 $ 6 2 , 7 1 4 $ 6 7 , 7 1 4 $ 6 8 , 3 9 1 $ 6 9 , 0 7 5 $ 6 9 , 7 6 6 $ 7 0 , 4 6 3 $ 7 1 , 1 6 8 $ 7 1 , 8 8 0 $ 7 2 , 5 9 8 Ca p i t a l  Im p r o v e m e n t  Pl a n ,  Ci t y  of  Or o n o MS A  Fu n d Cu r r e n t  Fu n d  Ba l a n c e : $ 0 S t a t e  MS A  Co n s t r u c t i o n  Ba l a n c e  = $ 5 5 0 , 0 0 0 Table  B ‐5a Pr o j e c t 2 0 2 1 2 0 2 2 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 An n u a l  Ex p e n d i t u r e s    (M S A  CI P ) $ 7 1 , 8 6 7 $ 7 1 , 8 6 7 $ 0 $ 3 4 8 , 0 0 0 $ 8 8 , 0 0 0 $ 4 0 8 , 0 0 0 $ 4 1 6 , 1 6 0 $ 4 2 4 , 4 8 3 $ 4 3 2 , 9 7 3 $ 4 4 1 , 6 3 2 An n u a l  MS A  Ma i n t e n a n c e  Pa y m e n t  to  th e  Ci t y $3 9 , 4 3 8 $ 3 9 , 4 3 8 $ 3 9 , 4 3 8 $ 3 9 , 4 3 8 $ 3 9 , 4 3 8 $ 3 9 , 4 3 8 $ 3 9 , 4 3 8 $ 3 9 , 4 3 8 $ 3 9 , 4 3 8 $ 3 9 , 4 3 8 De b t  Se r v i c e  (i n t e r e s t )  ‐   fr o m  MS A  ma i n t e n a n c e   ac c o u n t . $2 4 , 6 6 3 $ 2 1 , 0 6 3 $ 1 7 , 0 0 0 $ 1 2 , 4 6 9 $ 7 , 6 8 8 $ 2 , 6 2 5 $ 0 $ 0 $ 0 $ 0 De b t  Se r v i c e  (P r i n c i p a l )  ‐   fr o m  MS A  Co n s t r u c t i o n   Ac c o u n t $1 1 5 , 0 0 0 $ 1 2 0 , 0 0 0 $ 1 2 5 , 0 0 0 $ 1 2 5 , 0 0 0 $ 1 3 0 , 0 0 0 $ 1 4 0 , 0 0 0 $ 0 $ 0 $ 0 $ 0 To t a l  Ex p e n s e s $ 2 5 0 , 9 6 8 $ 2 5 2 , 3 6 8 $ 1 8 1 , 4 3 8 $ 5 2 4 , 9 0 7 $ 2 6 5 , 1 2 6 $ 5 9 0 , 0 6 3 $ 4 5 5 , 5 9 8 $ 4 6 3 , 9 2 1 $ 4 7 2 , 4 1 1 $ 4 8 1 , 0 7 0 Ye a r l y  Al l o c a t i o n  ‐   MS A  Ma i n t e n a n c e $ 1 2 3 , 8 3 3 $ 1 2 3 , 8 3 3 $ 1 2 3 , 8 3 3 $ 1 2 3 , 8 3 3 $ 1 2 3 , 8 3 3 $ 1 2 3 , 8 3 3 $ 1 2 3 , 8 3 3 $ 1 2 3 , 8 3 3 $ 1 2 3 , 8 3 3 $ 1 2 3 , 8 3 3 Ye a r l y  Al l o c a t i o n  ‐   MS A  Co n s t r u c t i o n $ 2 0 1 , 7 5 1 $ 2 0 1 , 7 5 1 $ 2 0 1 , 7 5 1 $ 2 0 1 , 7 5 1 $ 2 0 1 , 7 5 1 $ 2 0 1 , 7 5 1 $ 2 0 1 , 7 5 1 $ 2 0 1 , 7 5 1 $ 2 0 1 , 7 5 1 $ 2 0 1 , 7 5 1 An n u a l  Ba l a n c e $ 7 4 , 6 1 7 $ 7 3 , 2 1 7 $ 1 4 4 , 1 4 6 ($ 1 9 9 , 3 2 3 ) $6 0 , 4 5 9 ($ 2 6 4 , 4 7 9 ) ( $ 1 3 0 , 0 1 4 ) ( $ 1 3 8 , 3 3 7 ) ( $ 1 4 6 , 8 2 7 ) ( $ 1 5 5 , 4 8 6 ) Ye a r  En d  Ca s h  Ba l a n c e $ 7 4 , 6 1 7 $ 1 4 7 , 8 3 3 $ 2 9 1 , 9 7 9 $ 9 2 , 6 5 6 $ 1 5 3 , 1 1 5 ($ 1 1 1 , 3 6 4 ) ( $ 2 4 1 , 3 7 8 ) ( $ 3 7 9 , 7 1 5 ) ( $ 5 2 6 , 5 4 2 ) ( $ 6 8 2 , 0 2 9 ) Pa v e m e n t  Ma n a g e m e n t  Fu n d Cu r r e n t  Ba l a n c e : $ 0 43 5 2 5 0 0 0 Table  B ‐5b Pr o j e c t 2 0 2 1 2 0 2 2 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 An n u a l  Op e r a t i o n  an d  Ma i n t e n a n c e  (1 ) $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 CI P  Ex p e n d i t u r e s $ 1 , 1 2 3 , 5 7 0 $ 3 2 5 , 9 0 0 $ 2 , 3 5 7 , 1 8 6 $ 2 , 2 7 6 , 9 0 0 $ 1 , 1 7 5 , 2 0 0 $ 1 , 1 7 3 , 0 0 0 $ 1 , 1 9 6 , 4 6 0 $ 1 , 2 2 0 , 3 8 9 $ 1 , 2 4 4 , 7 9 7 $ 1 , 2 6 9 , 6 9 3 To t a l  Ex p e n s e s $ 1 , 1 2 3 , 5 7 0 $ 3 2 5 , 9 0 0 $ 2 , 3 5 7 , 1 8 6 $ 2 , 2 7 6 , 9 0 0 $ 1 , 1 7 5 , 2 0 0 $ 1 , 1 7 3 , 0 0 0 $ 1 , 1 9 6 , 4 6 0 $ 1 , 2 2 0 , 3 8 9 $ 1 , 2 4 4 , 7 9 7 $ 1 , 2 6 9 , 6 9 3 Re v e n u e s  (1 ) $ 0 $ 0 $ 3 0 0 , 0 0 0 $ 3 0 0 , 0 0 0 $ 3 0 0 , 0 0 0 $ 3 0 0 , 0 0 0 $ 3 0 0 , 0 0 0 $ 3 0 0 , 0 0 0 $ 3 0 0 , 0 0 0 $ 3 0 0 , 0 0 0 Pa v e m e n t  Ma n a g e m e n t  Le v y $ 7 5 0 , 0 0 0 $ 8 5 0 , 0 0 0 $ 9 0 0 , 0 0 0 $ 9 0 0 , 0 0 0 $ 9 0 0 , 0 0 0 $ 9 0 0 , 0 0 0 $ 9 0 0 , 0 0 0 $ 9 0 0 , 0 0 0 $ 9 0 0 , 0 0 0 $ 9 0 0 , 0 0 0 An n u a l  Ba l a n c e ($ 3 7 3 , 5 7 0 ) $5 2 4 , 1 0 0 ($ 1 , 1 5 7 , 1 8 6 ) ( $ 1 , 0 7 6 , 9 0 0 ) $2 4 , 8 0 0 $ 2 7 , 0 0 0 $ 3 , 5 4 0 ($ 2 0 , 3 8 9 ) ( $ 4 4 , 7 9 7 ) ( $ 6 9 , 6 9 3 ) Ye a r  En d  Ca s h  Ba l a n c e ($ 3 7 3 , 5 7 0 ) $1 5 0 , 5 3 0 ($ 1 , 0 0 6 , 6 5 6 ) ( $ 2 , 0 8 3 , 5 5 6 ) ( $ 2 , 0 5 8 , 7 5 6 ) ( $ 2 , 0 3 1 , 7 5 6 ) ( $ 2 , 0 2 8 , 2 1 6 ) ( $ 2 , 0 4 8 , 6 0 5 ) ( $ 2 , 0 9 3 , 4 0 2 ) ( $ 2 , 1 6 3 , 0 9 5 ) Wa t e r  Fu n d 12 / 3 1 / 2 0 2 1 Cu r r e n t  Ba l a n c e : $ 2 6 7 , 8 8 7 60 1 1 1 1 1 1 Table  B ‐6 Pr o j e c t 2 0 2 1 2 0 2 2 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 An n u a l  Op e r a t i o n  an d  Ma i n t e n a n c e  (3 ) $ 9 6 9 , 4 0 0 $ 9 9 9 , 1 6 6 $ 1 , 0 3 9 , 0 5 1 $ 1 , 0 7 2 , 4 4 0 $ 1 , 0 9 8 , 9 6 6 $ 1 , 1 2 2 , 9 9 5 $ 1 , 1 5 1 , 0 7 0 $ 1 , 1 7 9 , 8 4 7 $ 1 , 2 0 9 , 3 4 3 $ 1 , 2 3 9 , 5 7 6 De b t  Se r v i c e $ 1 5 7 , 1 8 0 $ 1 5 6 , 8 3 0 $ 1 0 0 , 4 3 0 $ 9 8 , 5 7 0 $ 1 0 1 , 5 5 0 $ 9 9 , 3 5 0 $ 1 0 1 , 9 2 0 $ 9 9 , 3 1 0 $ 1 0 1 , 5 0 0 $ 0 CI P  Ex p e n d i t u r e s $ 4 2 0 , 5 0 0 $ 3 4 8 , 5 4 0 $ 2 7 7 , 9 8 9 $ 1 9 3 , 7 9 7 $ 3 9 7 , 8 3 3 $ 4 2 8 , 5 2 8 $ 4 8 9 , 2 4 2 $ 4 5 9 , 9 7 3 $ 4 2 0 , 7 2 2 $ 3 2 0 , 7 2 2 Tr a n s f e r  to  Eq u i p m e n t  Fu n d $ 0 $ 0 $ 3 7 , 0 0 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 To t a l  Ex p e n s e s $ 1 , 5 4 7 , 0 8 0 $ 1 , 5 0 4 , 5 3 6 $ 1 , 4 5 4 , 4 7 0 $ 1 , 3 6 4 , 8 0 7 $ 1 , 5 9 8 , 3 4 9 $ 1 , 6 5 0 , 8 7 3 $ 1 , 7 4 2 , 2 3 1 $ 1 , 7 3 9 , 1 2 9 $ 1 , 7 3 1 , 5 6 5 $ 1 , 5 6 0 , 2 9 8 Re v e n u e s  (4 ) $ 1 , 1 9 2 , 5 2 8 $ 1 , 2 2 0 , 3 4 4 $ 1 , 2 4 8 , 9 9 4 $ 1 , 2 7 8 , 5 0 4 $ 1 , 3 0 8 , 8 9 9 $ 1 , 3 4 0 , 2 0 6 $ 1 , 3 6 7 , 0 1 0 $ 1 , 3 9 4 , 3 5 0 $ 1 , 4 2 2 , 2 3 7 $ 1 , 4 5 0 , 6 8 2 Ad d  ba c k  De p r e c i a t i o n $ 2 3 1 , 4 0 0 $ 2 4 5 , 8 8 9 $ 2 6 9 , 8 0 5 $ 2 8 7 , 2 7 1 $ 2 9 7 , 5 4 4 $ 3 0 4 , 9 8 3 $ 3 1 2 , 6 0 7 $ 3 2 0 , 4 2 2 $ 3 2 8 , 4 3 3 $ 3 3 6 , 6 4 4 As s e s s m e n t s $ 1 0 , 3 8 7 $ 1 0 , 3 8 7 $ 1 0 , 3 8 7 $ 1 0 , 3 8 7 $ 1 0 , 3 8 7 $ 1 0 , 3 8 7 $ 0 $ 0 $ 0 $ 0 An n u a l  Ba l a n c e ($ 1 1 2 , 7 6 5 ) ( $ 2 7 , 9 1 6 ) $7 4 , 7 1 6 $ 2 1 1 , 3 5 5 $ 1 8 , 4 8 1 $ 4 , 7 0 2 ($ 6 2 , 6 1 4 ) ( $ 2 4 , 3 5 7 ) $19,105 $ 2 2 7 , 0 2 7 Ye a r  En d  Ca s h  Ba l a n c e $ 1 5 5 , 1 2 2 $ 1 2 7 , 2 0 6 $ 2 0 1 , 9 2 2 $ 4 1 3 , 2 7 7 $ 4 3 1 , 7 5 8 $ 4 3 6 , 4 6 0 $ 3 7 3 , 8 4 6 $ 3 4 9 , 4 8 9 $ 3 6 8 , 5 9 5 $ 5 9 5 , 6 2 2 Ca p i t a l  Im p r o v e m e n t  Pl a n ,  Ci t y  of  Or o n o Se w e r  Fu n d Cu r r e n t  Ba l a n c e : $ 2 , 0 1 9 , 5 5 5 60 2 1 1 1 1 1 Table  B ‐7 Pr o j e c t 2 0 2 1 2 0 2 2 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 Op e r a t i o n  an d  Ma i n t e n a n c e  (3 ) $ 1 , 8 9 9 , 7 0 0 $ 1 , 9 5 1 , 2 2 5 $ 1 , 9 9 7 , 2 0 1 $ 2 , 0 4 0 , 5 0 9 $ 2 , 0 8 4 , 2 5 5 $ 2 , 1 2 9 , 2 5 1 $ 2 , 1 8 2 , 4 8 2 $ 2 , 2 3 7 , 0 4 4 $ 2 , 2 9 2 , 9 7 1 $ 2 , 3 5 0 , 2 9 5 De b t  Se r v i c e $ 1 1 0 , 0 0 0 $ 1 1 0 , 0 0 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 CI P  Ex p e n d i t u r e s $ 8 3 3 , 0 0 0 $ 4 3 4 , 0 0 0 $ 6 8 0 , 7 5 0 $ 5 7 8 , 4 5 0 $ 5 1 9 , 5 0 0 $ 6 6 0 , 0 0 0 $ 4 6 0 , 0 0 0 $ 6 6 0 , 0 0 0 $ 4 6 0 , 0 0 0 $ 6 6 0 , 0 0 0 Tr a n s f e r  to  Eq u i p m e n t  Fu n d  fo r  Se w e r  Eq u i p $ 0 $ 6 3 , 0 0 0 $ 0 $ 4 5 0 , 0 0 0 $ 3 0 0 , 0 0 0 $ 0 $ 0 $ 0 $ 0 $ 0 To t a l  Ex p e n s e s $ 2 , 8 4 2 , 7 0 0 $ 2 , 5 5 8 , 2 2 5 $ 2 , 6 7 7 , 9 5 1 $ 3 , 0 6 8 , 9 5 9 $ 2 , 9 0 3 , 7 5 5 $ 2 , 7 8 9 , 2 5 1 $ 2 , 6 4 2 , 4 8 2 $ 2 , 8 9 7 , 0 4 4 $ 2 , 7 5 2 , 9 7 1 $ 3 , 0 1 0 , 2 9 5 Re v e n u e s  (4 ) $ 2 , 1 3 3 , 5 9 2 $ 2 , 1 9 5 , 9 5 0 $ 2 , 2 6 0 , 1 7 8 $ 2 , 3 2 6 , 3 3 3 $ 2 , 3 9 4 , 4 7 3 $ 2 , 4 6 4 , 6 5 8 $ 2 , 5 2 6 , 2 7 4 $ 2 , 5 8 9 , 4 3 1 $ 2 , 6 5 4 , 1 6 7 $ 2 , 7 2 0 , 5 2 1 Ad d  ba c k  De p r e c i a t i o n $ 3 7 7 , 1 0 0 $ 3 9 7 , 1 0 7 $ 4 1 0 , 1 3 6 $ 4 2 0 , 5 9 2 $ 4 3 0 , 8 0 5 $ 4 4 1 , 5 7 5 $ 4 5 2 , 6 1 5 $ 4 6 3 , 9 3 0 $ 4 7 5 , 5 2 8 $ 4 8 7 , 4 1 6 As s e s s m e n t s   $3 0 , 3 6 8 $ 2 6 , 9 3 4 $ 2 4 , 9 0 2 $ 1 7 , 5 6 9 $ 1 7 , 5 6 9 $ 1 7 , 5 6 9 $ 2 , 0 0 0 $ 0 $ 0 $ 0 An n u a l  Ba l a n c e ($ 3 0 1 , 6 4 0 ) $6 1 , 7 6 6 $ 1 7 , 2 6 5 ($ 3 0 4 , 4 6 5 ) ( $ 6 0 , 9 0 7 ) $1 3 4 , 5 5 1 $ 3 3 8 , 4 0 6 $ 1 5 6 , 3 1 6 $ 3 7 6 , 7 2 4 $ 1 9 7 , 6 4 2 Ye a r  En d  Ca s h  Ba l a n c e $ 1 , 7 1 7 , 9 1 5 $ 1 , 7 7 9 , 6 8 1 $ 1 , 7 9 6 , 9 4 6 $ 1 , 4 9 2 , 4 8 1 $ 1 , 4 3 1 , 5 7 4 $ 1 , 5 6 6 , 1 2 5 $ 1 , 9 0 4 , 5 3 1 $ 2 , 0 6 0 , 8 4 7 $ 2 , 4 3 7 , 5 7 2 $ 2 , 6 3 5 , 2 1 4 St o r m  Wa t e r  Fu n d Cu r r e n t  Ba l a n c e : $ 1 , 4 3 3 , 7 1 9 65 1 1 1 1 1 1 Table  B ‐8 Pr o j e c t 2 0 2 1 2 0 2 2 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 Op e r a t i o n  an d  Ma i n t e n a n c e  (3 ) $ 4 0 3 , 2 0 0 $ 4 1 6 , 7 0 1 $ 4 3 2 , 1 5 1 $ 4 4 5 , 5 7 1 $ 4 6 1 , 2 1 0 $ 4 7 1 , 1 9 1 $ 4 8 2 , 9 7 1 $ 4 9 5 , 0 4 5 $ 5 0 7 , 4 2 1 $ 5 2 0 , 1 0 7 CI P  Ex p e n d i t u r e s $ 5 3 6 , 1 5 0 $ 3 7 1 , 4 4 5 $ 4 2 8 , 6 3 5 $ 5 4 1 , 1 8 0 $ 3 0 5 , 3 2 0 $ 4 0 5 , 0 0 0 $ 4 6 2 , 9 8 5 $ 4 0 5 , 0 0 0 $ 4 0 5 , 0 0 0 $ 4 0 5 , 0 0 0 Tr a n s f e r  to  Eq u i p m e n t  Fu n d  fo r  St o r m  Eq u i p $ 4 8 , 5 0 0 $ 0 $ 0 $ 0 $ 0 $ 1 4 5 , 5 0 0 $ 3 7 , 0 0 0 $ 0 $ 0 $ 0 To t a l  Ex p e n s e s $ 9 8 7 , 8 5 0 $ 7 8 8 , 1 4 6 $ 8 6 0 , 7 8 6 $ 9 8 6 , 7 5 0 $ 7 6 6 , 5 3 0 $ 1 , 0 2 1 , 6 9 1 $ 9 8 2 , 9 5 5 $ 9 0 0 , 0 4 5 $ 9 1 2 , 4 2 1 $ 9 2 5 , 1 0 7 Re v e n u e s  (4 ) $ 6 9 8 , 5 6 7 $ 7 0 5 , 4 0 2 $ 7 1 2 , 3 0 6 $ 7 1 9 , 2 7 9 $ 7 2 6 , 3 2 2 $ 7 3 3 , 4 3 5 $ 7 5 1 , 7 7 1 $ 7 7 0 , 5 6 6 $ 7 8 9 , 8 3 0 $ 8 0 9 , 5 7 5 Ad d  ba c k  de p r e c i a t i o n $ 7 1 , 5 0 0 $ 7 8 , 1 3 5 $ 8 6 , 4 0 7 $ 9 2 , 6 7 0 $ 1 0 1 , 0 0 4 $ 1 0 3 , 5 2 9 $ 1 0 6 , 1 1 7 $ 1 0 8 , 7 7 0 $ 1 1 1 , 4 9 0 $ 1 1 4 , 2 7 7 An n u a l  Ba l a n c e ($ 2 1 7 , 7 8 3 ) ( $ 4 , 6 0 9 ) ( $ 6 2 , 0 7 2 ) ( $ 1 7 4 , 8 0 1 ) $6 0 , 7 9 6 ($ 1 8 4 , 7 2 6 ) ( $ 1 2 5 , 0 6 7 ) ( $ 2 0 , 7 0 9 ) ( $ 1 1 , 1 0 2 ) ( $ 1 , 2 5 4 ) Ye a r  En d  Ca s h  Ba l a n c e $ 1 , 2 1 5 , 9 3 6 $ 1 , 2 1 1 , 3 2 7 $ 1 , 1 4 9 , 2 5 4 $ 9 7 4 , 4 5 3 $ 1 , 0 3 5 , 2 5 0 $ 8 5 0 , 5 2 3 $ 7 2 5 , 4 5 7 $ 7 0 4 , 7 4 7 $ 6 9 3 , 6 4 5 $ 6 9 2 , 3 9 1 40 6 2 5 0 0 0 Pe r m a n e n t  Im p r o v e m e n t  Re v o l v i n g  (P I R )  Fu n d Cu r r e n t  Ba l a n c e : $ 8 9 1 , 0 0 0 A m o u n t  Av a i l a b l e  fo r  Po l i c e  Purchases  = $ 2 6 7 , 3 0 0 Table  B ‐9 Pr o j e c t 2 0 2 1 2 0 2 2 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 Po l i c e  Ex p e n s e s $ 2 0 5 , 6 2 8 $ 5 , 7 9 6 $ 5 , 9 7 0 $ 6 , 1 4 9 $ 2 1 , 3 3 4 $ 5 6 , 5 2 4 $ 5 6 , 7 2 0 $ 2 1 , 9 2 1 $ 7 , 1 2 9 $ 7 , 3 4 3 To t a l  Ex p e n s e s $ 2 0 5 , 6 2 8 $ 5 , 7 9 6 $ 5 , 9 7 0 $ 6 , 1 4 9 $ 2 1 , 3 3 4 $ 5 6 , 5 2 4 $ 5 6 , 7 2 0 $ 2 1 , 9 2 1 $ 7 , 1 2 9 $ 7 , 3 4 3 Re v e n u e s $ 1 2 , 2 9 6 $ 6 , 9 7 7 $ 6 , 9 8 8 $ 6 , 9 9 9 $ 7 , 0 0 7 $ 6 , 8 6 4 $ 6 , 3 6 7 $ 5 , 8 6 4 $ 5 , 7 0 3 $ 5 , 6 8 9 An n u a l  Ba l a n c e ($ 1 9 3 , 3 3 2 ) $1 , 1 8 0 $ 1 , 0 1 8 $ 8 4 9 ($ 1 4 , 3 2 7 ) ( $ 4 9 , 6 6 0 ) ( $ 5 0 , 3 5 2 ) ( $ 1 6 , 0 5 7 ) ( $ 1 , 4 2 6 ) ( $ 1 , 6 5 4 ) Ye a r  En d  Ca s h  Ba l a n c e $ 6 9 7 , 6 6 8 $ 6 9 8 , 8 4 9 $ 6 9 9 , 8 6 7 $ 7 0 0 , 7 1 6 $ 6 8 6 , 3 9 0 $ 6 3 6 , 7 3 0 $ 5 8 6 , 3 7 7 $ 5 7 0 , 3 2 0 $ 5 6 8 , 8 9 4 $ 5 6 7 , 2 4 1 NO T E S : (1 )  Ex p e n s e s  an d  Re v e n u e s  ar e  ba s e d  on  th e  Ci t y ' s  20 2 1  bu d g e t .    Fo r  Pl a n n i n g  pu r p o s e s  a  2. 5 %  an n u a l  in f l a t i o n  fa c t o r  ha s  be e n  us e d  to  pr o j e c t  fu t u r e  co s t s . (2 )    Re v e n u e s  ar e  ba s e d  on  a  1. 5 %  in c r e a s e d  co n t r i b u t i o n  st a r t i n g  in  20 1 9  an d  ad d i n g  a  1%  in t e r e s t  ea r n e d  on  th e  pr e v i o u s  ye a r ' s  ba l a n c e . (3 )  Ex p e n s e s  ar e  ba s e d  on  ut i l i t y  ra t e  st u d y  co n d u c t e d  in  20 2 0  fo r  fu t u r e  ye a r s  20 2 1 ‐20 2 6 .  Fo r  Pl a n n i n g  pu r p o s e s ,  20 2 7  an d  af t e r  ha v e  a  2. 5 %  an n u a l  in f l a t i o n  fa c t o r  to  pr o j e c t  fu t u r e  co s t s . (4 )  Re v e n u e s  ar e  ba s e d  on  th e  ut i l i t y  ra t e  st u d y  co n d u c t e d  in  20 2 0  fo r  fu t u r e  ye a r s  20 2 1 ‐20 2 6 ,  pl u s  es t i m a t e d  in v e s t m e n t  in t e r e s t .  Fo r  Pl a n n i n g  pu r p o s e s ,  20 2 7  an d  af t e r  ha v e  a  2. 5 %  an n u a l  in f l a t i o n  fa c t o r  to  pr o j e c t  fu t u r e  co s t s . AGENDA ITEM Prepared By: MLU Reviewed By: MLU Approved By DJR 1. Purpose. The purpose of this action item is to adopt a resolution making a selection not to waive the statutory tort limits for liability. 2. Background. Minnesota Statutes 466.04 limits a city’s tort liability to a maximum of $500,000 per claimant and $1,500,000 per occurrence. Because cities have the right to waive the liability limit, our insurance carrier, the League of Minnesota Cities Insurance Trust (LMCIT), requires that the City Council adopt a resolution stipulating whether the City will or will not waive the statutory limits under the laws. A waiver of the limits would result in increased liability exposure and an increase in premiums. 3. Cost. Because waiver of the statutory limits increases the amount that the LMCIT could potentially be responsible for, waiver of the limit will increase the city’s general liability insurance premium by approximately 3.5% ($3,500). The City also carries excess liability coverage in the amount of $2,000,000. A wavier of tort limits would increase this premium by 25% ($8,600). 4. Staff Recommendation. Staff recommends the adoption of the resolution not to waive tort limits. COUNCIL ACTION REQUESTED Motion to adopt a resolution making a selection not to waive the statutory tort limits for liability purposes. Exhibits A. LMCIT Liability Limits Information B. Resolution C. Tort Limit Waiver Form Item No.: 11 Date: December 7, 2020 Item Description: Non-Waiver of Tort Limits Presenter: Maggie Ung Accountant Agenda Section: Consent Agenda RELEVANT LINKS: League of Minnesota Cities Information Memo: 8/6/2018 LMCIT Liability Coverage Guide Page 4 3. Risks for which specialty coverage is needed See Section III.K, Liquor liability. See Section III.T, Special events. See Section III.T, Special events. See Section III.T, Special events. • Aircrafts (a drone is not considered an “aircraft” if it’s not designed for the transport of persons or property). • Architects. • Big boats. • Doctors, most nurses, dentists, pharmacists, and psychologists. • Liquor sales. • Motorized amusement rides, such as carnival rides. • Motor vehicle demolition derbies, racing, pulling contests, or stunt driving. • Prisons. • Railroads. • Rodeos. • Specialty type operations such as hospitals, clinics, nursing homes and licensed child care programs. • Stunting activities or events that involve a significant risk of serious injury to the participant, performer, or others, such as high-wire acts, base or bungee jumping, skydiving, circus type acts, and acts involving dangerous animals. D. Coverage limits LMCIT gives members options for structuring their liability coverage. Members can also choose either to waive or not to waive the monetary tort caps the statutes provide. It can also select from among several liability coverage limits. 1. LMCIT primary liability limits Minn. Stat. § 466.04. The statutory municipal tort liability is limited to a maximum of $500,000 per claimant and $1.5 million per occurrence. These limits apply whether the claim is against the city, against the individual officer or employee, or against both. LMCIT’s liability coverage provides a standard limit of $2 million per occurrence. Higher limits are in place for a couple reasons. See Section II.D.3.a, Statutory limits may not apply. First, the statutory liability limit caps the city’s liability for many types of claims. But some types of liability claims aren’t subject to the statutory tort caps, so the city’s potential liability is unlimited for some types of claims. RELEVANT LINKS: League of Minnesota Cities Information Memo: 8/6/2018 LMCIT Liability Coverage Guide Page 5 See Section II.D.3, Purchasing higher liability limits. Second, it’s increasingly more common to see contracts require more than the statutory limit of $1.5 million; a more common figure is $2 million. LMCIT’s higher limit meets this requirement, but if even higher limits are required, there is the option to carry LMCIT’s excess liability coverage to meet the additional requirements. LMCIT can in some cases also issue an endorsement to increase the city’s coverage limit only for claims relating to a particular contract. In addition to the LMCIT coverage limit of $2 million per occurrence, there are annual aggregate limits (that is, limits on the total amount of coverage for the year regardless of the number of claims), for certain specific risks. Aggregate limits apply to claims arising out of the following: See Section III.B, Data security breach and computer-related risks. . See Section III.J, Land use and special risk litigation and Land Use Incentive Program. See Section III.D, Employees’ activities in outside organizations. • Products $3 million annually • Failure to supply utilities $3 million annually Coverage applies for the failure to supply water, electricity, gas, or steam service. It also applies to damages arising out of the failure to supply phone and internet or other electronic data transmission services. • Data security breaches $3 million annually A $250,000 annual aggregate/sublimit (part of and not in addition to the $3 million aggregate) applies for Payment Card Industry (PCI) fines and penalties and data security breach regulatory fines and penalties resulting from a data security breach claim. • Electromagnetic fields $3 million annually • Limited contamination $3 million annually Includes the sudden and accidental release of pollutants; herbicide and pesticide applications; sewer ruptures, overflows, and backups; lead and asbestos claims; mold claims; organic pathogen claims; hostile fire claims; and excavation and dredging claims. Excavation and dredging claims are subject to an annual $250,000 sublimit. These limits apply to both damages and defense costs. • Land use/special risk litigation $1 million annually Land use litigation coverage is provided on a sliding scale percentage basis, which is based on participation in LMCIT’s land use incentive. Coverage applies to both damages and litigation costs. • Activities in outside organizations $100,000 annually 2. Statutory liability limits Minn. Stat. § 466.04. The statutory municipal tort cap is limited to a maximum of $500,000 per claimant and $1.5 million per occurrence. These limits apply whether the claim is against the city, against the individual officer or employee, or against both. The LMCIT liability coverage provides a standard limit of $2 million per occurrence. RELEVANT LINKS: League of Minnesota Cities Information Memo: 8/6/2018 LMCIT Liability Coverage Guide Page 6 See Summary of LMCIT Liability Coverage Options and the effects of choosing the various coverage structure options. At the city’s coverage renewal each year, it must decide whether to waive or not waive the statutory limits. There is no right or wrong answer on this point, and it’s a discretionary decision that each governing body must make. a. Waiving the statutory limit Members who choose to waive the statutory limits are waiving the protection of the statutory limits, up to the amount of coverage the city has. Someone with a claim against a city that has waived the statutory limits would be able to recover up to the LMCIT standard limit of $2 million, rather than the statutory limit of $500,000 per claimant. Because the waiver increases the exposure, the premium is a few percentage points higher for coverage under the waiver option. A city may choose to pay more in premium for the waiver option because the statutory liability limit only comes into play in a case where the city is in fact liable and the injured party’s actual proven damages are greater than the statutory limit. Some cities as a matter of public policy may want to have more assets available to compensate their citizens for injuries caused by the city’s negligence. Waiving the statutory liability limits is a way to do that. There is no increase in risk if the city waives the statutory liability limits. In other words, there is no risk for the city to end up with liability if LMCIT doesn’t cover it. The LMCIT waiver form specifically says the city is waiving the statutory tort caps only to the extent of the city’s coverage. That’s not to say there is no risk the city’s liability could exceed its coverage limits. There are certain situations in which this could happen, but the waiver doesn’t increase that risk. See Section II.D.3, Purchasing higher liability limits. In those cases where the city waives the statutory limit, but also purchases the LMCIT excess liability coverage, a claimant could potentially recover more. For example, if the city has $1 million of excess coverage and chooses to waive the statutory tort caps, the claimants (whether it’s one claimant or several) could then potentially recover up to $3 million in damages in a single occurrence. If the city carries higher excess coverage limits, the potential maximum recovery per occurrence is correspondingly higher. See Section II.D.3, Purchasing higher liability limits. Carrying LMCIT’s excess coverage under the waiver option is a way to address an issue that some cities find troubling, and that’s: the case where many people are injured in a single occurrence caused by city negligence. An example is if a city vehicle negligently ran into a school bus full of children causing multiple serious injuries. The statutory limit of $1.5 million divided 50 ways may not go far in compensating those injuries. Excess coverage under the waiver option makes more funds available to compensate the victims in this kind of situation. RELEVANT LINKS: League of Minnesota Cities Information Memo: 8/6/2018 LMCIT Liability Coverage Guide Page 7 See Section II.D.3, Purchasing higher liability limits. The cost of the excess liability coverage is higher if the city waives the statutory tort caps. The cost difference is proportionally greater than the cost difference at the primary level because for a city that carries excess coverage, waiving the statutory tort caps increases both the per claimant exposure and the per occurrence exposure. b. Not waiving the statutory limit See Section II.D.3.a, Statutory limits may not apply. For cities who choose not to waive the statutory limits, the city’s liability is limited by the statute to no more than $500,000 per claimant and $1.5 million per occurrence. LMCIT’s higher coverage limits would only come into play on those types of claims that aren’t covered by the statutory limit. 3. Purchasing higher liability limits LMCIT makes available the option of carrying higher coverage limits than the basic limit of $2 million per occurrence. This coverage, called excess liability coverage, is available in $1 million increments up to a maximum of $5 million. There are several different reasons why cities may consider carrying LMCIT’s excess liability coverage. a. Statutory limits may not apply Minn. Stat. § 3.736. The statutory tort caps either do not or may not apply to several types of claims. Some examples include: • Claims under federal civil rights laws. These include Section 1983, the Americans with Disabilities Act, and so on. • Claims for tort liability the city has assumed by contract. This occurs when a city agrees in a contract to defend and indemnify a private party. • Claims for actions in another state. This might occur in border cities that have mutual aid agreements with adjoining states or when a city official attends a national conference or goes to Washington to lobby. • Claims based on liquor sales. This mostly affects cities with municipal liquor stores, but it could also arise relating to beer sales at a fire relief association fundraiser, for example. • Claims based on a “taking” theory. Suits challenging land use regulations frequently include an “inverse condemnation” claim, alleging the regulation amounts to a “taking” of the property. RELEVANT LINKS: League of Minnesota Cities Information Memo: 8/6/2018 LMCIT Liability Coverage Guide Page 8 b. Annual limits apply in LMCIT’s coverage for specific risks See Section II.D, Coverage limits. Besides LMCIT’s overall coverage limit of $2 million per occurrence, there are also annual aggregate limits for certain specific risks. If the city has a loss or claim in one of these areas, there might not be enough limits remaining to cover the city’s full exposure if there is a second loss of the same sort during the year. There are, however, a couple important restrictions on how the excess coverage applies to risks that are subject to aggregate limits. The excess coverage does not apply to the following types of risks. LMC information memos, LMCIT Auto Coverage Guide and LMCIT Workers’ Compensation Coverage Guide. See Section III.L, Medical payments; Section III.D, Employees’ activities in outside organizations; and Section III.K, Liquor liability. • Failure to supply utilities. • Mold. • Lead and asbestos. • Excavation and dredging. • Sudden and accidental release of pollutants below ground or within or on the surface of any body of water. • Auto no-fault claims. • Uninsured/underinsured motorist claims. • Workers’ compensation, disability, or unemployment claims. • Claims under the medical payments coverage. • Claims arising from the activities of outside organizations. • No-fault sewer backup • Liquor liability, unless the city has specifically requested it. c. Contracts may require higher coverage limits LMC information memo, Making and Managing City Contracts, Section IV.B.6, Umbrella/excess insurance. Occasionally, a contract might include a requirement the city carry more than $2 million per occurrence in coverage limits. Carrying excess coverage is a way to meet these requirements. Cities can also contact LMCIT and request an endorsement to increase the city’s coverage limit only for claims relating to that contract. There’s a small charge, and the contract and additional underwriting information may be required. d. Multiple political subdivisions There may be more than one political subdivision covered under the city’s coverage. See Section III.Q, Separate city boards and commissions. A housing and redevelopment authority (HRA), economic development authority (EDA), or port authority are separate political subdivisions. RELEVANT LINKS: League of Minnesota Cities Information Memo: 8/6/2018 LMCIT Liability Coverage Guide Page 9 If the city EDA, for example, is named as a covered party on the city’s coverage and a claim were made that involved both the city and the EDA, theoretically the claimant might be able to recover up to $1.5 million from both the city and the EDA since there are two political subdivisions involved. Excess coverage is one way to provide enough coverage limits to address this situation. Another solution is for the HRA, EDA, or port authority to carry separate liability coverage in its own name. LMC information memo, Making and Managing City Contracts, Section IV.B.1.b, Additional insured provisions. The issue of multiple covered parties can also arise is if the city has agreed by contract to name another entity as a covered party, or to defend and indemnify another entity. e. Courts may overturn statutory liability limits Cities sometimes carry higher coverage limits because of a concern the courts might overturn the statutory liability limits. However, those limits have been tested and upheld several times in Minnesota. While it’s always possible a future court might decide to throw out the statutory limits, this is less of a concern. III. Coverage details on specific liability exposures The LMCIT liability coverage is broad, but there are some situations where the city needs to take additional action or be aware of special coverage terms and limits. A. Airports LMCIT offers optional airport liability coverage to members of the property/casualty program. Coverage is available for airports that are operated by a city, by a joint powers entity that includes at least one city, or by a special purpose district. Coverage is available for most municipal airports; however, larger airports that have scheduled service are not eligible. 1. Coverage limits See Section II.D.3, Purchasing higher liability limits. The airport liability coverage is very broad and carries a per occurrence limit of $2 million and an annual aggregate limit of $3 million. It is subject to the same deductibles that apply to the city’s municipal liability coverage. Higher limits can be provided through LMCIT’s optional excess liability coverage, although it is not available as an option for airport risks only. CITY OF ORONO RESOLUTION OF THE CITY COUNCIL NO. ________________________ A RESOLUTION MAKING A SELECTION NOT TO WAIVE THE STATUTORY TORT LIMITS FOR LIABILITY INSURANCE PURPOSES WHEREAS, pursuant to previous action taken, the League of Minnesota Cities Insurance Trust has asked the City to make an election with regards to waiving or not waiving its tort liability established by Minnesota Statutes 466.04; and WHEREAS, the choices available are as follows: to not waive the statutory tort limit, to waive the limit but to keep insurance coverage at the statutory limit, and to waive the limit and to add insurance to a new level. NOW, THEREFORE, BE IT RESOLVED that the Orono City Council does hereby elect not to waive the statutory tort liability limit established by Minnesota Statutes 466.04. Adopted by the City Council of the City of Orono, Minnesota, at a regular meeting held December 7, 2020. ATTEST: ________________________________ ________________________________ Anna Carlson, City Clerk Dennis Walsh, Mayor LIABILITY COVERAGE – WAIVER FORM Members who obtain liability coverage through the League of Minnesota Cities Insurance Trust (LMCIT) must complete and return this form to LMCIT before the member’s effective date of coverage. Return completed form to your underwriter or email to pstech@lmc.org. The decision to waive or not waive the statutory tort limits must be made annually by the member’s governing body, in consultation with its attorney if necessary. Members who obtain liability coverage from LMCIT must decide whether to waive the statutory tort liability limits to the extent of the coverage purchased. The decision has the following effects: • If the member does not waive the statutory tort limits, an individual claimant could recover no more than $500,000 on any claim to which the statutory tort limits apply. The total all claimants could recover for a single occurrence to which the statutory tort limits apply would be limited to $1,500,000. These statutory tort limits would apply regardless of whether the member purchases the optional LMCIT excess liability coverage. • If the member waives the statutory tort limits and does not purchase excess liability cove rage, a single claimant could recover up to $2,000,000 for a single occurrence (under the waive option, the tort cap liability limits are only waived to the extent of the member’s liability coverage limits, and the LMCIT per occurrence limit i s $2,000,000). The total all claimants could recover for a single occurrence to which the statutory tort limits apply would also be limited to $2,000,000, regardless of the number of claimants. • If the member waives the statutory tort limits and purchases excess liability coverage, a single claimant could potentially recover an amount up to the limit of the coverage purchased. The total all claimants could recover for a single occurrence to which the statutory tort limits apply would also be limited to the amount of coverage purchased, regardless of the number of claimants. Claims to which the statutory municipal tort limits do not apply are not affected by this decision. LMCIT Member Name: __________________________________________________________________________ Check one: o The member DOES NOT WAIVE the monetary limits on municipal tort liability established by Minn. Stat. § 466.04. o The member WAIVES the monetary limits on municipal tort liability established by Minn. Stat. § 466.04, to the extent of the limits of the liability coverage obtained from LMCIT. Date of member’s governing body meeting: __________________________________________________________ Signature: _______ Position: _______________ AGENDA ITEM Prepared By: MLU Reviewed By: MLU Approved By: DJR 1. Purpose. The purpose of this action item is to approve the 2020 Interfund Loan and Transfers. 2. Background. Each year the Council is requested to authorize transfer of monies between funds. These transactions fall into the following categories: A. Budgeted Transfers – Items designated in that year’s budget when originally adopted for the purpose of providing support from one fund to another. B. Fund Obligations – i. Payments from one fund to another to reimburse expenses incurred by one fund on behalf of another. This is generally for City portions of special assessments, or for equipment capital outlay. ii. Loan payments from one fund to another. Loans are generally made to construction funds for the purpose of payment of expenses incurred prior to the sale of bonds and the levying of special assessments. In addition certain loans are necessary to fund major undertakings when the fund incurring the expense does not have adequate cash flow available to complete the project. 3. Staff Recommendation. Staff recommends approval of the 2020 Interfund Loan and Transfers as presented. COUNCIL ACTION REQUESTED Motion to approve the 2020 transfers and loan payments as presented on the attached schedule. Exhibits A. Schedule of 2020 Interfund Transfers and Loan Payments Item No.: 12 Date: December 7, 2020 Item Description: 2020 Transfers and Payments Presenter: Maggie Ung Accountant Agenda Section: Consent Agenda Schedule of 2020 Interfund Transfers and Loan Payments From Fund To Fund Amount Purpose General Imp & Equip Outlay $ 300,000 Annual operating transfer for capital equipment purchases, as budgeted. General 2014 Improvement Bond $ 100,000 Annual transfer for debt service of 2014 Improvement Bonds Water Operating 2016 GO Refunding Bond $ 55,000 Annual operating transfer for debt service support of Water Fund portion of the Casco Point Project. Sewer Operating 2016 GO Refunding Bond $ 110,000 Annual operating transfer for debt service support of Sewer Fund portion of the Casco Point Project. AGENDA ITEM Prepared By: A.Carlson Reviewed By: DJR Approved By: DJR 1. Purpose: The purpose of the attached resolution is to establish a policy for reviewing professional services for the City through an RFP process. Such services include insurance agent, fiscal agent, auditor, attorney and engineer. The objective of the policy and schedule is to create greater accountability and transparency for the professional services contracted with the City. 2. Background: Minnesota Statute 471.345 authorizes municipalities to enter into contracts. Contracts must generally follow the municipal contracting law (competitive bidding law) except when entering into contracts with professional services. Therefore the City of Orono may choose that adopting a schedule to review and compare professional service, through a Request for Proposals (RFP) process, will result in services and prices that best serve the interest of the citizens of our community. The professional services schedule will cycle over a five year time span at minimum and more often as requested. Professional Services Schedule Service 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Prosecuting Attorney X X Auditor X X Insurance Agent X X Fiscal Agent X X Civil Attorney X X Engineer X X Payroll Services X X Building Official X X X - Year indicates when proposals will be requested. Service may or may not start until following year. When a specific professional service comes due under the schedule, that service could be reviewed by the City Council at appointment time each year in January. During the review process, the City Council could decide whether or not the professional service will be subject to an RFP process. Regardless of the council's decision, the professional service could come up for review again in another 5 years. 3. Staff Recommendation: Staff recommends approval of Professional Services Schedule shown above. COUNCIL ACTION REQUESTED Consider a motion to amend or adopt the attached resolution for the Professional Services Schedule. Exhibits A. Resolution Item No.: 13 Date: December 7, 2020 Item Description: Request for Proposal (RFP) Schedule Presenter: Dustin Rief, City Administrator Agenda Section: Consent Agenda CITY OF ORONO RESOLUTION OF THE CITY COUNCIL NO. ________________________ A RESOLUTION ADOPTING REQUEST FOR PROPOSAL (RFP) SCHEDULE WHEREAS, Minnesota Statute 471.345 authorizes municipalities to enter into contracts. Contracts must generally follow the municipal contracting law (competitive bidding law) except when entering into contracts with professional services; and WHEREAS, the City of Orono finds adopting a schedule to review and compare professional service, through a Request for Proposals (RFP) process, will result in services and prices that best serve the interest of the citizens of our community; and WHEREAS, the objective of the schedule is to create greater accountability and transparency for the professional services contracted with the City; and WHEREAS, the professional services schedule will cycle over a five year time span at a minimum and more often as requested: Professional Services Schedule Service 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Prosecuting Attorney X X Auditor X X Insurance Agent X X Fiscal Agent X X Civil Attorney X X Engineer X X Payroll X X Building Official X X X - Year indicates when proposals will be requested. Service may or may not start until following year. WHEREAS, the service will be reviewed by the City Council at appointment time each year in January. During the review process, the City Council will decide whether or not the professional service will be subject to an RFP process. Regardless of the council's decision, the professional service will come up for review again in another 5 years. NOW, THEREFORE, BE IT RESOLVED, the Orono City Council adopts a RFP schedule listed above for professional services. CITY OF ORONO RESOLUTION OF THE CITY COUNCIL NO. ________________________ ADOPTED this 7th day of December 2020, by the City Council of the City of Orono, Minnesota. CITY OF ORONO: Dennis Walsh, Mayor ATTEST: _______________________________ Anna Carlson, City Clerk AGENDA ITEM Prepared By: Reviewed By: DJR Approved By: DJR 1. Purpose. The purpose of this action item is to gain Council authorization for Pay Request No. 7 – Final for the 2019 Street Reconstruction Project. 2. Background. On March 19th, 2019 the City awarded the 2019 Streets Reconstruction contract to GMH Construction. Construction was completed in 2019 with site restoration completed in 2020. 3. Project Scope. The project consisted of the reclamation and/or mill and overlay of the bituminous pavement, select subgrade corrections, and the replacement / improvement of the associated stormwater systems for the Forest Arms Lane, Tonka View, Chevy Chase Drive, and East Long Lake Road (South). 4. Cost. Pay request 7 is for $27,636.62. This included payment of the retainage. Total payments to GMH Construction including Pay request 7 is $ 1,114,040.20. The bid amount was $1,201,238.67. 5. Funding. This project is funded from the Pavement Management Fund and the Storm Water fund. The cost split by funding source for construction are: Funding source Project Construction Amount Pavement Fund $ 782,701.55 Sanitary Sewer Fund $ 33,420.76 Water Fund $ 760.98 Stormwater Fund $ 297,156.92 6. Staff Recommendation. I recommend that GMH Construction be paid $27,636.62 and the project be closed. COUNCIL ACTION REQUESTED Motion to approve Pay Request No. 7-Final to GMH Construction in the amount of $27,636.62 for the 2019 Street Reconstruction Project. Exhibits A. Pay Request Item No.: 14 Date: December 7, 2020 Item Description: 2019 Streets Reconstruction Project – Pay Request No. 7 – Final Presenter: Adam T. Edwards Public Works Director/City Engineer Agenda Section: Consent Agenda Exhibit A AGENDA ITEM Prepared By: Reviewed By: DJR Approved By: DJR 1. Purpose. The purpose of this action item is to gain approval to accept a donation from REVLogistics. 2. Background. REVLogistics/ Mr. Ben Goodwin provided a donation of $2000 for the 2020 Holiday Tree Lighting fireworks. That event was cancelled due to COVID-19 restrictions. However the donor has graciously offered that the donation be used for another city event. 3. Donation Received. $2000 4. Staff Recommendation. I recommend acceptance of the donation. COUNCIL ACTION REQUESTED Motion for accept the donation from REVLogistics/ Mr. Ben Goodwin for $2000 and that it be placed in an account for use at a future city sponsored event. Item No.: 15 Date: December 7, 2020 Item Description: Approval to Accept Donation for Future City Event Presenter: Adam T. Edwards Public Works Director/City Engineer Agenda Section: Consent Agenda AGENDA ITEM Prepared By: Correy Farniok Reviewed By: DJR Approved By: DJR Purpose. The purpose of this action item is to gain approval accepting Officer William Persell’s letter of resignation. Background. William Persell was hired as a part-time police officer by the City of Orono on November 7, 1994. For more than 26 years William Persell has covered thousands of shifts and provided a tremendous service to the communities we serve. William Persell also worked in Oak Park Heights for more than 10 years prior. William Persell has more than 36 years as a police officer. On October 29, 2020, Officer William Persell submitted a letter and notice to resign from the Orono Police Department. Officer Persell’s last day is December 30, 2020. The police department wishes William Persell the best of luck in his retirement and all his future endeavors. We thank him for his service to the citizens of Orono, Mound, Spring Park and Minnetonka Beach. Staff Recommendation. I recommend accepting the resignation of William Persell effective December 30, 2020 COUNCIL ACTION REQUESTED Motion to approve the resignation of William Persell effective December 30, 2020 and approve resolution for 26 years of dedicated service to the City of Orono. Exhibits A. Resolution Item No.: 16 Date: December 7, 2020 Item Description: Authorization to Accept William Persell Resignation Presenter: Correy Farniok Police Chief Agenda Section: Consent Agenda CITY OF ORONO RESOLUTION OF THE CITY COUNCIL NO. _________________ A RESOLUTION RECOGNIZING OFFICER WILLIAM PERSELL FOR HIS TWENTY-SIX YEARS OF DEDICATED SERVICE TO THE CITY AS A POLICE OFFICER WHEREAS, William Persell was appointed to the position of Part-time Police Officer on November 7, 1994; and WHEREAS, William has for 26 years exceptionally served, patrolled and responded to calls for service; and; WHEREAS, William’s years of service as a Police Officer has been characterized by his willingness to come in on a moment’s notice, his great spirit, his helpful advice and his dedication to providing the highest quality police service to the city and its citizens and; WHEREAS, William was a team player and set the example for his fellow police officers and; WHEREAS, William has provided service to the community in a fair, respectful, honest, trustworthy, and selfless manner and; WHEREAS, William is resigning from his position as Police Officer effective December 30, 2020. NOW, THEREFORE, BE IT RESOLVED, that the Orono City Council does hereby recognize and commend Officer William Persell for his leadership, and dedicated service to the community as Police Officer. BE IT FURTHER RESOLVED that the Orono City Council does hereby extends its best wishes to Office William Persell. Adopted by the City Council of Orono, Minnesota at a regular meeting held this 7th day of December, 2020. ATTEST: ________________________ _________________________ Anna Carlson, City Clerk Denny Walsh, Mayor AGENDA ITEM Prepared By: mcc Reviewed By: J. Barnhart Approved By: DJR 1. Purpose. This application is regarding variances (for lot area and lot width; hardcover and building within the 75-foot setback); and conditional use permits (for grading in the floodplain and plumbing within an accessory building) in order to develop the vacant property. 2. MN§15.99 Application Deadline. The application was received on March 13, 2020 and considered to be complete on October 26th. The 60-Day review period has been extended and now expires on February 23, 2021. 3. Background/ Summary. The Council reviewed this application on November 9th. The Council was generally supportive of the application, however directed the applicant to modify the grading plan to meet the 15-foot bench requirement. The applicant has provided revised plans which achieve the 15-foot protective elevation bench around the home. 4. Staff Recommendation. Based on the revised plan, Staff recommends approval of the requested variances and CUPs. COUNCIL ACTION REQUESTED Council should consider amending or adopting the resolution. Exhibits A. Draft Resolution B. Revised Floodplain Grading Plan C. Council Minutes 11/09/2020 D. Council Memo 11/09/2020 References PC Memo and Exhibits 09/21/2020 Council Exhibits 11/09/2020 Revised Plan Item No.: 17 Date: December 7, 2020 Item Description: LA20-000022 – Randy Haapala, HNH Homes o/b/o William & Kathleen Wanner, 1095 Ferndale Rd West, Variances & CUPs – Resolution Presenter: Melanie Curtis Planner Agenda Section: Consent Agenda CITY OF ORONO RESOLUTION OF THE CITY COUNCIL NO. ________________________ 1 A RESOLUTION APPROVING VARIANCES FROM MUNICIPAL ZONING CODE SECTIONS 78-305; 78-1279; AND 78-1680 AND CONDITIONAL USE PERMITS PURSUANT TO SECTIONS 78-1437; 78-1118; 78-1125; AND 78-1126 FILE NO. LA20-000022 WHEREAS, on March 13, 2020, on behalf of William F. Wanner and Kathleen A. Wanner, husband and wife (hereinafter the “Owners”), Randy Haapala (hereinafter the “Applicant”), applied for the following land use approvals: 1. A variance from Orono Municipal Zoning Code Section 78-305 to allow redevelopment of a property with 1.27 acres in area and 180 feet of width where 2.0 acres and 200 feet of width are required; and 2. A variance from Code Section 78-1279 and 78-1680 to allow 530 square feet of hardcover consisting of building and structure within the 75-foot setback from the OHWL of Lake Minnetonka where no hardcover is permitted; and 3. A variance from Code Section 78-1125(a) to permit less than a 15-foot elevation bench around the home; and 4. A conditional use permit pursuant to Zoning Code Section 78-1437 to allow plumbing consisting of a full bathroom including bathtub and/or shower within an accessory building; and 5. A conditional use permit pursuant to Zoning Code Sections 78-1118, 78-1125, and 78- 1126 to permit filling within the floodplain and grading on the property to mitigate the fill material in order to develop the property and elevate the home above the RFPE; For the property addressed 1095 Ferndale Road West and legally described as: All that part of Lot 9, North Shore Cottage Acres Lake Minnetonka, lying Southeasterly of the Southeasterly lines of Registered Land Survey No. 441 and Registered Land Survey No. 902, and lying Northwesterly of the Northwesterly line of Registered Land Survey No. 1372, Hennepin County, Minnesota; Subject to perpetual easements for sanitary sewer purposes in favor of the City of Orono over that part of the above land as specifically described in Hennepin County Recorder Document No. 4608875 and in Hennepin County Recorder Document No. 4608876; Per Certificate of Title Number 1120830 (hereinafter the “Property”); CITY OF ORONO RESOLUTION OF THE CITY COUNCIL NO. ________________________ 2 WHEREAS, on September 21, 2020, after published and mailed notice in accordance with Minnesota Statutes and the City Code, the Planning Commission held a public hearing, at which time all persons desiring to be heard concerning this application were given the opportunity to speak thereon; and WHEREAS, on September 21, 2020, the Planning Commission recommended approval of the requested variances and conditional use permits with the exception of the variance from 78-1125(a) requiring the 15-foot elevation bench for which they recommended denial; and WHEREAS, on November 9, 2020, the City Council reviewed the application and the recommendations of the Planning Commission and City staff. The Council agreed with the Planning Commission’s recommendation and directed the Applicant to revise the grading plan to conform to 78-1125(a); and WHEREAS, on November 30, 2020, the Applicant submitted a revised grading plan conforming to the requirements of 78-1125(a); and WHEREAS, on December 7, 2020, the City Council reviewed the Applicant’s revised grading plan; and NOW, THEREFORE, BE IT RESOLVED that the City Council of Orono, Minnesota hereby approves the application as amended and as described above based on one or more of the following findings of fact concerning the Property: FINDINGS OF FACT: 1. This application was reviewed as Zoning File #LA20-000022. The analysis contained within staff memos and the exhibits attached to the aforesaid memos, all minutes from the above mentioned meetings, and any and all other materials distributed at these meetings are hereby incorporated by reference. 2. The Property is located in the LR-1A One Family Lakeshore Residential Zoning District. 3. The Property contains 1.27 acres in area and has a defined lot width of 180 feet. 4. The Property is within Tier 1 and hardcover is limited to 25% according to the Stormwater Quality Overlay District. 5. Applicant has applied for the following: a. Lot Area and Lot Width Variances b. Variance to permit Hardcover and Building within the 75-foot Setback CITY OF ORONO RESOLUTION OF THE CITY COUNCIL NO. ________________________ 3 c. Conditional Use Permit for Plumbing within an Accessory Building d. Conditional Use Permit for placement of fill below the 1% annual chance of flooding in order to elevate the home. 6. In considering this application for variances and conditional use permits, the Council has considered the advice and recommendation of the Planning Commission and the effect of the proposed plan upon the health, safety and welfare of the community, existing and anticipated traffic conditions, light and air, danger of fire, risk to the public safety, and the effect on values of property in the surrounding area. ANALYSIS: 1. “Variances shall only be permitted when they are in harmony with the general purposes and intent of the ordinance . . . .” The lot width and area variances requested are consistent with the general intent of the Ordinance. The lake setback and hardcover variances are reasonable and necessary as the highest points of the Property for construction of the home above the 1% annual chance floodplain are located toward the lake. 2. “Variances shall only be permitted . . . when the variances are consistent with the comprehensive plan.” The variances resulting in a permit for construction of a single family residence in a residential zone are consistent with the Comprehensive Plan. 3. “Variances may be granted when the applicant for the variance establishes that there are practical difficulties in complying with the zoning ordinance. ‘Practical difficulties,’ as used in connection with the granting of a variance, means that: a. The property owner in question proposes to use the property in a reasonable manner, however, the proposed use is not permitted by the official controls. The request to permit construction of portions of the proposed home on a substandard lot within the 75-foot setback appears to be reasonable; the floodplain grading appropriately elevates the home and the required 15-foot grade elevation is met. b. The plight of the landowner is due to circumstances unique to his property not created by the landowner. The major presence of the 1% annual chance floodplain on the Property creates increased difficulties in locating a conforming building elevation and location. The new house will be properly elevated out of the floodplain based on the required RFPE. The sub-standard size of the Property was not the result of actions by the CITY OF ORONO RESOLUTION OF THE CITY COUNCIL NO. ________________________ 4 landowner. The natural high area on the Property is more toward the lake necessitating home and patio placement partially within the 75-foot setback; c. The variance, if granted, will not alter the essential character of the locality.” The lot area and width variances will not alter the character of the neighborhood; the lake setback and hardcover variances are reasonable and necessary as the highest points of the Property for construction of the home above the 1% annual chance floodplain are located toward the lake. The hardcover is mitigated by the proposed landscape plan for the Property. 4. “Economic considerations alone do not constitute practical difficulties.” Economic considerations have alone not been a factor in the variance approval determination. 5. “Practical difficulties also include but are not limited to inadequate access to direct sunlight for solar energy systems. Variances shall be granted for earth-sheltered construction as defined in Minn. Stat. § 216C.06, subd. 2, when in harmony with Orono City Code Chapter 78.” This condition is not applicable. 6. “The board or the council may not permit as a variance any use that is not permitted under Orono City Code Chapter 78 for property in the zone where the affected person's land is located.” This condition is not applicable, as residential home is an allowed use in the LR- 1A District. 7. “The board or council may permit as a variance the temporary use of a one-family dwelling as a two-family dwelling.” This condition is not applicable. 8. “The special conditions applying to the structure or land in question are peculiar to such property or immediately adjoining property.” The substandard lot area and width of the Property is not uncommon in the surrounding neighborhood. The presence of the 1% annual chance floodplain on the Property creates increased difficulties however, if the building pad is reduced it is possible the building can conform to the 75-foot setback limiting improvements toward the lake. 9. “The conditions do not apply generally to other land or structures in the district in which the land is located.” The property to the east has a higher grade than the Property. The two properties to the west have similar floodplain challenges. 10. “The granting of the application is necessary for the preservation and enjoyment of a substantial property right of the applicant.” Granting the requested variances will provide relief to the Owners regarding the lot size and floodplain on the Property. CITY OF ORONO RESOLUTION OF THE CITY COUNCIL NO. ________________________ 5 11. “The granting of the proposed variance will not in any way impair health, safety, comfort or morals, or in any other respect be contrary to the intent of this chapter.” Granting the requested variances will not adversely impact health, safety, comfort, or morals; nor will it be contrary to the intent of the Code. 12. “The granting of such variance will not merely serve as a convenience to the applicant, but is necessary to alleviate demonstrable difficulty.” The size of the Property and the floodplain/topography create practical difficulties affecting the Property; the variances are necessary and do not merely serve as a convenience to the Owners. CONDITIONAL USE PERMIT ANALYSIS: On the basis of the application and the evidence submitted, the city must find that the proposed use at the proposed location is or will be: 1) Consistent with the community management plan; The proposed uses are consistent with the permitted uses for the Property, and are compliant with the zoning code and comprehensive plan. a. Plumbing within the accessory building: The bathroom within an accessory building is contemplated and permitted in the zoning code with the required protective covenants; and b. The proposed grading: The grading shown in order to elevate the home and portions of the property above the 1% annual chance floodplain is residential in nature and complies with the intent of the code. MCWD approvals are also required for the floodplain mitigation shown. 2) Compliant with the zoning code, including any conditions imposed on specific uses as required by article V, division 3 of the City Code; The detached garage where the bathroom will be located will be otherwise conforming in location, and height on the Property. The proposed grading is residential in nature which is consistent with the permitted uses for the Property. 3) Adequately served by police, fire, roads, and stormwater management; The proposed use will be adequately served by existing services and facilities. 4) Provided with an adequate water supply and sewage disposal system; This statement is true; the proposed detached garage with plumbing will be connected to City sewer and private well. CITY OF ORONO RESOLUTION OF THE CITY COUNCIL NO. ________________________ 6 5) Not expected to generate excessive demand for public services at public cost; This criterion is met. 6) Compatible with the surrounding area as the area is used both presently and as it is planned to be used in the future; Regarding the import of and movement of fill material and re-grading of the Property, once completed, will have no impact on surrounding lands. The grades, once vegetated and landscaped should not have an adverse impact on the neighborhood or the lake. The detached garage building is rural residential in character, will be architecturally consistent with the principal building, and its use is expected to be compatible with the surrounding area. 7) Consistent with the character of the surrounding area, unless a change of character is called for in the community management plan; The detached garage will have a residential visual character in keeping with the proposed home and is expected to be compatible with the surrounding area. The proposed grading activity will help to slow runoff from leaving the Property and impacting neighboring properties. The floodplain mitigation proposed will not result in a negative impact to neighboring properties or the lake. 8) Compatible with the character of buildings and site improvements in the surrounding area, unless a change of character is called for in the community management plan; The Applicants are proposing to substantially regrade the Property to mitigate filled floodplain areas for the building site as well as facilitate better stormwater management. It is likely adjacent lakeshore properties will not be impacted. The grading will be reviewed and monitored closely by the City’s engineer and MCWD staff to assure that proper grading is conducted and that adjacent properties and the lake are not adversely impacted. The architectural styling of the building will be residential in character and consistent with that of the proposed home on the Property. 9) Not expected to substantially impair the use and enjoyment of the property in the area or have a materially adverse impact on the property values in the area when compared to the impairment or impact of generally permitted uses; The use of the structure for garage storage and flex space is not expected to have any adverse impacts. No information has been presented to indicate such. CITY OF ORONO RESOLUTION OF THE CITY COUNCIL NO. ________________________ 7 The result of the proposed grading will enhance, rather than change, the intended residential use of the Property; there should be no change in the use and enjoyment of adjacent properties resulting from the import of fill materials and grading. However, active grading of the Property can have a temporary adverse impact on neighbors. The grading work on the Property as well as the further construction of the residence could result in noise, dust, vibration and traffic on the haul routes and immediate neighbors. To the degree possible, negative impacts should be limited and mitigated. 10) Provided with screening and buffering adequate to mitigate undesirable views and activities likely to disturb surrounding uses; The finished grade will be vegetated and landscaped; it should blend into the Property. The project, once completed, should not result in undesirable views requiring mitigation. 11) Not create a nuisance which generates smoke, noise, glare, vibration, odors, fumes, dust, electrical interference, general unsightliness, or other means; The result of the proposed grading will enhance, rather than change the intended residential use of the Property; there should be no change in the use and enjoyment of adjacent properties resulting from the import of fill materials and grading. However, active grading of the Property can have a temporary adverse impact on neighbors. The grading work on the Property as well as the further construction of the residence could result in noise, dust, vibration and traffic on the haul routes and immediate neighbors. To the degree possible, negative impacts should be limited and mitigated. The proposed detached garage with plumbing is not expected to cause any of these undesirable impacts. 12) Not cause excessive non-residential traffic on residential streets, parking needs that cause a demonstrable inconvenience to adjoining properties, traffic congestion, or unsafe access; The grading project will be monitored by the MCWD, the City Engineer, and planning staff so as to minimize nuisances during the project. It is anticipated that the proposed detached garage with plumbing will not generate any of these undesirable issues. 13) Designed to take into account the natural, scenic, and historic features of the area and to minimize environmental impact; The proposed detached garage with plumbing will not affect these features or have a negative environmental impact. The project is being designed to take into account the natural, scenic, and historic features of the area and to minimize environmental impact. The long term effect of the CITY OF ORONO RESOLUTION OF THE CITY COUNCIL NO. ________________________ 8 project should result in minimal environmental impacts. The project will be monitored by the City to prevent erosion from the site. 14) All exterior lighting shall be so directed so as not to cast glare toward or onto the public right-of-way or neighboring residential uses or districts; There should be no lighting or glare resulting from the grading project; the applicant shall be advised of the lighting requirement regarding the home and detached garage; and 15) Not detrimental to the public health, public safety, or general welfare. The grading project will be monitored by the MCWD, the City Engineer and planning staff so as to minimize nuisances during the project. Staff believes this criterion is met. CONCLUSIONS, ORDER AND CONDITIONS: Based upon one or more of the above findings, the Orono City Council hereby grants the following land use approvals: • A variance from Orono Municipal Zoning Code Section 78-305 to allow redevelopment of a property with 1.27 acres in area and 180 feet of width where 2.0 acres and 200 feet of width are required; and • A variance from Code Section 78-1279 and 78-1680 to allow 530 square feet of hardcover consisting of building and structure within the 75-foot setback from the OHWL of Lake Minnetonka where no hardcover is permitted; and • A conditional use permit pursuant to Zoning Code Section 78-1437 to allow plumbing consisting of a full bathroom including bathtub and/or shower within an accessory building; and • A conditional use permit pursuant to Zoning Code Sections 78-1118, 78-1125, and 78-1126 to permit filling within the floodplain and grading on the property to mitigate the fill material in order to develop the property and elevate the home above the RFPE; subject to the following: 1. Council approval is based on the entire record, above Findings. 2. The approved project shall conform to the survey, grading plan, and building plans submitted by the Applicant and annotated by City staff, attached to this Resolution as Exhibits A, B, and C (hereinafter collectively the “Plans”). 3. Any amendments to the Plans which are not in conformity with City codes may require further Planning Commission and City Council review. 4. Authorities granted by this resolution run with the Property not with the Owners, but are permissive only and must be exercised by obtaining a building permit for the new CITY OF ORONO RESOLUTION OF THE CITY COUNCIL NO. ________________________ 9 construction and commencing construction of said project. A framing inspection must be completed within one year of the date of Council approval, or the approvals will expire on that date (December 7, 2021). 5. The Owners hereby agree to this covenant providing that the accessory building will not be: a. Used for a home occupation unless specifically approved by the city or if allowed by this Code. b. Used as a dwelling unless a guest house conditional use permit is obtained. c. Rented, leased or otherwise provided for use as a dwelling under any circumstances. 6. Additionally, the conditional use permits shall remain in effect as long as the conditions imposed by the City Council are observed, but nothing in this section shall prevent the city from enacting or amending official controls to change the status of conditional uses. 7. Violation of or non-compliance with any of the terms and conditions of this resolution may result in the termination of any authority granted herein. ADOPTED by the Orono City Council on this 7th day of December, 2020. ATTEST: CITY OF ORONO: _______________________________ ________________________________ Anna Carlson, City Clerk Dennis Walsh, Mayor CITY OF ORONO RESOLUTION OF THE CITY COUNCIL NO. ________________________ 10 ______________________________ ________________________________ William F. Wanner, Property Owner Kathleen A. Wanner, Property Owner STATE OF MINNESOTA COUNTY OF HENNEPIN This instrument was acknowledged before me this ___ day of ___________, 20___, by William F. Wanner, spouse of Kathleen A. Wanner. ____________________________________ Notary Public STATE OF MINNESOTA COUNTY OF HENNEPIN This instrument was acknowledged before me this ___ day of ___________, 20___, by Kathleen A. Wanner, spouse of William F. Wanner. ____________________________________ Notary Public MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, November 9, 2020 6:00 o’clock p.m. _____________________________________________________________________________________   Page 6 of 15    20. LA20-000022 – RANDY HAAPALA, HNH HOMES O/B/O WILLIAM & KATHLEEN WANNER, 1095 FERNDALE RD WEST, VARIANCES AND CUPS Rick Storlien, representing HNH Homes, was present. Staff presented a summary packet of information, noting the property has a history where variances were granted, renewed and expired due to inactivity. The current owners plan to proceed with construction of their home and are currently requesting similar approvals as received in the past. Current plans reflect less hardcover in the 75 foot setback and structure in the average lakeshore setback than have received variances for in the past. Staff recommends approval of the plan with the exception of the variance to permit the lessened elevation bench around the home. Walsh asked what the Council had previously approved regarding this property. Curtis noted a number of house plans have been approved for this property and this is the first plan that has gone as far as developing flood plain mitigation for watershed permitting. The previous plans were a further encroachment in to the lakeshore setback with hardcover and the home. This plan is the most compliant of the plans they have seen. Walsh said it is an improvement and they just have not been this far from a flood plain management issue. Rick Storlien with RDS architects is at the meeting on behalf of Randy Haapala from HNH Homes. He noted a letter sent and it is his understanding the FEMA requires a 32.5, and that was the discrepancy in the document, for an escape route from the home at each exit point to get to safe ground. He said they do have that within the exit areas. He noted three minimal encroachments in to the 15 foot setback to the 31.5 elevation, and on the west it is an open porch rather than finished house; the north encroachment is a garage; the east side is a bump out on the master bedroom suite. Minimum floor elevation is even further above that benchmark currently, so under the house there is not any real encroachment as far as potential for flood waters. Walsh asked what would be the practical difficulty in complying with the whole bench. Mr. Storlien said they have been going back and forth with the Watershed District, and noted the storage capacity of the two storm water retention ponds are basically limited to area – they cannot go any deeper because of lake elevations – so typically the pond would be one foot deeper and they would be fine as they could make the pond a little smaller. They are trying to balance between those two issues and maintain drainage-ways on either side of the home which are the two encroachments to the left and right. He noted they could potentially meet the 15 feet, but will have to go back to the civil engineer and see if there is any way to make the ponds larger in surface area to accommodate the required elevation. He said it would most likely require grading on the lakeside of the home to achieve, and they are trying to avoid that. Walsh said the practical difficulty is if they cannot make the pond bigger, then there is nothing they can do to fix that piece of it. Mr. Storlien replied that is correct. Walsh said, however, they do not know that. MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, November 9, 2020 6:00 o’clock p.m. _____________________________________________________________________________________   Page 7 of 15    Mr. Storlien said they have had the discussion and it was their decision to submit it this way to see what shakes out. Walsh asked how relevant is it that the Applicant cannot make the pond bigger…is it the end of the world that the line must be where it is and asked the impact of that. Curtis replied the 15 foot buffer is a requirement for the flood plain regulations and the City has varied it in the past, particularly on Baldur Park where it is impossible to reach that bench when elevating the home. It has been a variance the City has granted in the past. This lot is just wider than those properties; it is a very low area and is impacted by the flood plain. Walsh said he could see that as a general practical difficulty. Johnson said it seems like the Applicant should know that about the pond before asking. Walsh does not know how they solve the problem to the left and right of the house. Mr. Storlien said potentially, if the ponds can get wider, they can get shorter. The issue they run into is grading from the elevation of the pond level up to the driveway becomes steeper which then causes problems for lawn maintenance. Walsh said the best thing to do may be to table this, go find the answer, and see what the palatability of doing that is. Curtis said it makes sense, and there is another jurisdiction involved with the modification to the plan and running it through their process again. She noted it is a Staff process, so it can be done quickly, but she thinks it is reasonable. Motion by Johnson, seconded by Seals, to table LA20-000022 – Randy Haapala, HNH Homes o/b/o William & Kathleen Wanner, 1095 Ferndale Rd West, Variances and CUPs. VOTE: Ayes 5, Nays 0. 21. DISCUSSION RELATED TO A POTENTIAL TEXT AMENDMENT RELATED TO RESIDENTIAL DOCK USE AND CERTAIN EXCEPTIONS Barnhart said in the course of enforcing the dock regulations as they do by complaint, Staff has learned that in this particular instance, non-resident users lived in the neighborhood nearby and were using the dock for the subject property. These residents contacted the Mayor, who seemed to recall some history with an exception discussion. Staff looked in to the history and in 2011-2012, the City Council looked at the regulations as they applied to dock usage and ultimately they landed on current code/regulation. Does the Council want to entertain the change to the code and if so, is there anything particular they would like to see and then can come back and go through the process to make those changes. Walsh said the discussion is not unknown people coming and renting docks, as the City does not allow that; the issue now is a neighbor complaining about another neighbor, as someone across the street who is friends with someone on the water and has allowed them to put their boat there, or maybe more than one. The Council is dealing with neighbors complaining about neighbors trying to do neighborly things for their friends across the street. He said is the relevant exception 1,000 feet or 100 feet and if so 100 feet AGENDA ITEM Prepared By: mcc Reviewed By: J. Barnhart Approved By: DJR 1. Purpose. This application is regarding variances (for lot area and lot width; hardcover and building within the 75-foot setback); and conditional use permits (for grading in the floodplain and plumbing within an accessory building) in order to develop the vacant property. 2. MN§15.99 Application Deadline. The application was received on March 13, 2020 and considered to be complete on October 26th. Therefore the 60-Day review period expires on December 25, 2020. 3. Background/ Summary. This property has a history of variances to redevelop beginning in 2009 when the home was demolished. Variances were granted, renewed, and eventually expired due to inactivity. In 2017, new owners, Bill and Kathleen Wanner, requested approvals to develop the property. Those plans were delayed and the approvals expired. The Wanners wish to proceed with construction of their home and are currently requesting similar approvals to do so. Additionally included is a conditional use permit to allow plumbing within the proposed accessory building. The current plans reflect less hardcover in the 75-foot setback and the average lakeshore setback encroachments have been reduced from the previously approved plans. Still required are approvals to permit the modifications to the floodplain to facilitate elevation of the home out of the floodplain. The applicant is working with the MCWD to assure proper permitting and appropriate floodplain mitigation. There will be import and export of materials throughout the project. The City’s Engineer has reviewed and approved the grading plan. Currently Proposed Plan 2019 Approved Plan There were a number of open issues at the public hearing which the applicant addressed with the revised plan submitted on October 26th with the exception of the requirement for a 15-foot elevation bench of 931.5’ around the home due to the building being elevated out of the Item No.: 20 Date: November 9, 2020 Item Description: LA20-000022 – Randy Haapala, HNH Homes o/b/o William & Kathleen Wanner, 1095 Ferndale Rd West, Variances + CUPs Presenter: Melanie Curtis Planner Agenda Section: Consent Agenda AGENDA ITEM Prepared By: mcc Reviewed By: J. Barnhart Approved By: DJR floodplain on fill. The applicant is providing a minimum bench of ±12 feet in some places; a variance is still necessary. Variances from the floodplain management ordinance may result in increased flood insurance premiums. 4. Planning Commission Vote and Comment. On October 19th, the Planning Commission held a public hearing. Following the public hearing the Planning Commission voted 5 to 1 on a motion to approve the variances and CUPs for the proposed plan with the stipulation that required 15- foot elevation bench required for floodplain protection be met. The Planning Commission did not support the 15’ bench variance. 5. Public Comment. Comments from the neighbors have not been received. 6. Staff Recommendation. Staff recommends approval of the plan with the exception of the variance to permit a lessened elevation bench around the home. Staff recommends denial of this variance. COUNCIL ACTION REQUESTED Council should review the application and direct staff to draft a resolution reflecting your decision. Exhibits A. Proposed Plans B. PC Minutes C. PC Staff Report D. Applicant Narrative – 15’ Bench References PC Exhibits 09/21/2020 AGENDA ITEM Prepared By: mcc Reviewed By: J. Barnhart Approved By: DJR A. Application B. Practical Difficulties Documentation C. Existing Survey D. Site Plan – Annotated by Staff E. Civil Plans F. Architectural Plans and Elevations G. Submitted Hardcover Calculations H. City Engineer Comments I. MCWD Email J. Property Owners List K. Plat Map AGENDA ITEM Prepared By: RJO Reviewed By: DJR Approved By: DJR 1. Purpose. The purpose of this item is to publically present the 2019 audit and draft Comprehensive Annual Financial Report (CAFR) to the Council and public. 2. Background. Upon completion of the annual audit, the City’s auditors publically present the results to the Mayor and Council. Bonnie Schwieger from Abdo, Eick & Meyers, LLC is here tonight to present the 2019 audit results. COUNCIL ACTION REQUESTED: No action is required. This is an information item only. Exhibits A. 2019 Draft CAFR B. Management Communication Letter C. Other Required Reports Legal Compliance Internal Control Item No.: 18 Date: December 7, 2020 Item Description: 2019 Comprehensive Annual Financial Report Presentation Presenter: Maggie Ung, Accountant Agenda Section: Presentation NEED PHOTO COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2019 CITY OF ORONO, MINNESOTA CITY OF ORONOCITY OF ORONO, MINNESOTAMINNESOTA CITY OF ORONO, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2019 REPORT PREPARED BY: FINANCE DEPARTMENT REPORT PREPARED BY: FINANCE DEPARTMENT City of Orono, Minnesota Comprehensive Annual Financial Report Table of Contents For the Year Ended December 31, 2019 Page No. Introductory Section Letter of Transmittal 11 Organization Chart 19 Elected and Appointed Officials 20 Financial Section Independent Auditor’s Report 23 Management’s Discussion and Analysis 27 Basic Financial Statements Government-wide Financial Statements Statement of Net Position 41 Statement of Activities 42 Fund Financial Statements Governmental Funds Balance Sheet 46 Reconciliation of the Balance Sheet to the Statement of Net Position 47 Statement of Revenues, Expenditures and Changes in Fund Balances 48 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities 49 General Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 51 Proprietary Funds Statement of Net Position 52 Statement of Revenues, Expenses and Changes in Net Position 55 Statement of Cash Flows 56 Notes to the Financial Statements 59 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 Employee Retirement Fund 89 Schedule of Employer’s Share of Public Employees Retirement Association Net Pension Liability - Public Employees Police and Fire Fund 90 Schedule of Employer’s Public Employees Retirement Association Contributions - Public Employees Police and Fire Fund 90 Notes to the Required Supplementary Information - Public Employees Police and Fire Fund 91 Schedule of Changes in the City’s Total OPEB Liability and Related Ratios 93 Statement of Revenues, Expenditures and Changes in FundStatement of Revenues, Expenditures and Changes in Fund Balances - Budget and ActualBudget and Actual of Net Positionof Net Position Statement of Revenues, ExpensesStatement of Revenues, Expenses and Changes in Net Positionnd Changes in Net Position of Cash Flowsof Cash Flows Notes to the Financial StatementsNotes to the Financial Statements Required Supplementary InformationRequired Supplementary Information Schedule of Employer’s Share of Public Employees Retirement Association Net Pension Liability Schedule of Employer’s Share of Public Employees Retirement Association Net Pension Liability 5 6 City of Orono, Minnesota Comprehensive Annual Financial Report Table of Contents (Continued) For the Year Ended December 31, 2019 Page No. Combining and Individual Fund Financial Statements and Schedules Nonmajor Governmental Funds Combining Balance Sheet 98 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 99 Nonmajor Special Revenue Funds Subcombining Balance Sheet 102 Subcombining Statement of Revenues, Expenditures and Changes in Fund Balances 104 Nonmajor Debt Service Funds Subcombining Balance Sheet 108 Subcombining Statement of Revenues, Expenditures and Changes in Fund Balances 110 Nonmajor Capital Projects Fund Subcombining Balance Sheet 114 Subcombining Statement of Revenues, Expenditures and Changes in Fund Balances 116 Nonmajor Proprietary Funds Combining Statement of Net Position 120 Combining Statement of Revenues, Expenses and Changes in Net Position 121 Combining Statement of Cash Flows 122 General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 123 Internal Service Funds Combining Statement of Net Position 126 Combining Statement of Revenues, Expenses and Changes in Net Position 127 Combining Statement of Cash Flows 128 Statistical Section (Unaudited) Financial Trends Summary Financial Report - Revenues and Expenditures for General Operations - Governmental Funds 133 Net Position by Component 134 Changes in Net Position 136 Fund Balances of Governmental Funds 140 Changes in Fund Balances of Governmental Funds 142 Revenue Capacity Assessed Value and Estimated Actual Value of Taxable Property 144 Property Tax Rates - Direct and Overlapping Governments 145 Principal Property Taxpayers 146 Property Tax Levies and Collections 147 Debt Capacity Ratios of Outstanding Debt by Type 148 Ratios of General Bonded Debt Outstanding 149 Direct and Overlapping Governmental Activities Debt 151 Legal Debt Margin Information 152 Pledged Revenue Coverage 154 Demographic and Economic Information Demographic and Economic Statistics 155 Principal Employers 157 Operating Information Full-Time Equivalent Employees by Function 158 Operating Indicators by Function 160 Capital Asset Statistics by Function 162 bining Statement of Net Positionbining Statement of Net Position Combining Statement of Revenues, Expenses andCombining Statement of Revenues, Expenses and Changes in Net Position Combining Statement of Cash FlowsCombining Statement of Cash Flows Statistical Section (Unaudited)Statistical Section (Unaudited) Financial Report Financial Report - Revenues and Expenditures for General OperationsRevenues and Expenditures for General Operations - - Governmental FGovernmental F n by Componentn by Component Changes in Net PositionChanges in Net Position Fund Balances of Governmental FundsFund Balances of Governmental Funds 7 8 INTRODUCTORY SECTION CITY OF ORONO, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2019DECEMBER 31, 2019 9 10 Letter of Transmittal from City Administrator and Finance Director 1 of 8 11 Letter of Transmittal from City Administrator and Finance Director 2 of 8 12 Letter of Transmittal from City Administrator and Finance Director 3 of 8 13 Letter of Transmittal from City Administrator and Finance Director 4 of 8 14 Letter of Transmittal from City Administrator and Finance Director 5 of 8 15 Letter of Transmittal from City Administrator and Finance Director 6 of 8 16 Letter of Transmittal from City Administrator and Finance Director 7 of 8 17 Letter of Transmittal from City Administrator and Finance Director 8 of 8 18 Public City Administrator Fire Building Inspections Legal Engineer Assessor Auditor Bond Counsel Financial Advisor Advisory Commissions City Clerk Management Assistant Municipal Services Support Rep Accountant Payroll/U.B. (.8 FTE) IT Technician Patrol Officers (21) PT Patrol Officers (3) CSO (1 FT, 1 PT) Police Office Manager Admin. Support Asst. (2) Reserve Officers Planning Commission Park Commission Police Advisory Commission Long Lake Fire Advisory Commission Hwy 12 Turnback Committee Public Works Director / City Engineer Community Development Director Police Chief Roads/Storm water Supervisor Sewer/Water Supervisor Maintenance Staff (7) Golf/Parks Supervisor Seasonal Clubhouse Manager Seasonal Staff Contracted Services Finance Director Patrol Sgt. (3) Investigative Sgt (1) Deputy Chief Senior Planner Building Official City Planner Planning Assistant Mayor & Council City of Orono OrganizationalChart Municipal Services Support Rep Accoun Payro (.8 FTE) IT Technician Community Development Director Finance Senior Planner Building Official City Planner 19 City of Orono, Minnesota Elected and Appointed Officials For the Year Ended December 31, 2019 Name Title Term Expires Dennis Walsh Mayor 12/31/20 Aaron Printup Council Member 12/31/22 Victoria Seals Council Member 12/31/20 Richard Crosby II Council Member 12/31/20 Matt Johnson Council Member 12/31/22 Name Title Dustin Rief City Administrator Ronald Olson Finance Director - Treasurer ELECTED APPOINTED 20 FINANCIAL SECTION CITY OF ORONO, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2019DECEMBER 31, 2019 21 22 INDEPENDENT AUDITOR’S REPORT Honorable Mayor and City Council City of Orono, Minnesota Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of the City of Orono, Minnesota (the City), as of and for the year ended December 31, 2019, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the City’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of the City as of December 31, 2019, and the respective changes in financial position and, where applicable, cash flows thereof and the respective budgetary comparison for the General fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. Management is responsible for the preparation and fair presentation of these financial statements in accordance with Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and accounting principles generally accepted in the United States of America; this includes the design, implementation, and rnal control relevant to the preparation and fair presentation of rnal control relevant to the preparation and fair presentation of the the financial statements that are free financial statements that are free from material misstatement, whether due to fraud or error.from material misstatement, whether due to fraud or error. Our responsibility is to express opinions on these financial Our responsibility is to express opinions on these financial stastatements based on our audit. We conducted our audit in tements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America.accordance with auditing standards generally accepted in the United States of America.Those standards require that we Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material 23 24 Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis starting on page 27 and the Schedules of Employer’s Share of the Net Pension Liability, the Schedules of Employer’s Contributions, the related notes disclosures and the Schedule of Changes in the City’s OPEB Liability and Related Ratios starting on page 88 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The introductory section, statistical section and combining and individual fund financial statements and schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual fund financial statements, schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual fund financial statements and schedules are fairly stated, in all material respects in relation to the basic financial statements as a whole. The introductory section and statistical section have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated NEED DATE, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, 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 the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance. ABDO, EICK & MEYERS, LLP Minneapolis, Minnesota NEED DATE information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain 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 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 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 procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual fund financial combining and individual fund financial statementsstatements and schedulesand schedules are fairly stated, in all material respects in relation to the are fairly stated, in all material respects in relation to the basic financial statements as a whole.basic financial statements as a whole. The introductory section and statistical section have not been subjected to the auditing procedures applied in the audit of The introductory section and statistical section have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them.the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them. 25 26 Management’s Discussion and Analysis As management of the City of Orono, Minnesota, (the City), we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended December 31, 2019. 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 11 - 18 of this report. Financial Highlights The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $52,895,092 (net position). Of this amount, $5,511,864 (unrestricted net position) may be used to meet the City’s ongoing obligations to citizens and creditors. The City’s net position for governmental activities increased $3,860,867 and business-type activities increased $64,882, resulting in a total increase of $3,925,749, mainly as a result of current year decrease in expenses for governmental activities and a increase business-type activities expenses. As of the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $7,719,676, an increase of $126,306 in comparison with the prior year. At the end of the current fiscal year, unassigned fund balance for the General fund was $4,288,536, or 46.9 percent of next year's budgeted expenditures. The City’s total debt decreased $997,435, (12.24% percent) during the current fiscal year. The decrease was due to scheduled debt payments. at the close of the most recent fiscal year by at the close of the most recent fiscal year by $52,895,092 (net position). Of this amount, (net position). Of this amount, $5,511,864 net position) may be used to meet the City’s ongoing obligations to citizens and creditors.net position) may be used to meet the City’s ongoing obligations to citizens and creditors. The City’s net position for governmental activities The City’s net position for governmental activities increasedincreased $3,860,867$3,860,867 and businessand business--type atype a , resulting in a total , resulting in a total increaseincrease of $3,925,749of $3,925,749,mainly as a result of mainly as a result of currcurrent year decrease in expenent year decrease in expen activitiesactivities and a increase a increase businessbusiness-type activitiestype activities expenses.expenses. As of the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances As of the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances an increasean increase of $126,306of $126,306 in comparison with the prior year. in comparison with the prior year. 27 Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplemental information in addition to the basic financial statements themselves. The following chart shows how the various parts of this annual report are arranged and related to one another: The financial statements also include notes that explain some of the information in the financial statements and provide more detailed data. The statements are followed by a section of combining and individual fund financial statements and schedules that further explains and supports the information in the financial statements. Figure 1 shows how the required parts of this annual report are arranged and relate to one another. In addition to these required elements, we have included a section with combining and individual fund financial statements and schedules that provide details about nonmajor governmental funds, which are added together and presented in single columns in the basic financial statements. Internal service funds statements are also included, reflecting balances prior to their elimination from the government-wide financial statements, to avoid “doubling-up” effect within the governmental and business-type activities columns of said statements. Figure 1 Required Components of the City’s Annual Financial Report Management's Discussion and Analysis Basic Financial Statements Required Supplementary Information Government- wide Financial Statements Fund Financial Statements Notes to the Financial Statements Summary Detail 28 Figure 2 summarizes the major features of the City’s financial statements, including the portion of the City government they cover and the types of information they contain. The remainder of this overview section of management’s discussion and analysis explains the structure and contents of each of the statements. Figure 2 Major Features of the Government-wide and Fund Financial Statements Fund Financial Statements Government-wide Statements Governmental Funds Proprietary Funds Scope Entire City government and the City’s component units The activities of the City that are not proprietary or fiduciary, such as police, fire and parks Activities the City operates similar to private businesses, such as the water and sewer system Required financial statements Statement of Net Position Statement of Activities Balance Sheet Statement of Revenues, Expenditures, and Changes in Fund Balances Statements of Net Position Statements of Revenues, Expenses and Changes in Fund Net Position Statements of Cash Flows Accounting basis and measurement focus Accrual accounting and economic resources focus Modified accrual accounting and current financial resources focus Accrual accounting and economic resources focus Type of asset/liability information All assets and liabilities, both financial and capital, and short-term and long- term Only assets expected to be used up and liabilities that come due during the year or soon thereafter; no capital assets included All assets and liabilities, both financial and capital, and short-term and long- term Type of deferred outflows/inflows of resources information All deferred outflows/inflows of resources, regardless of when cash is received or paid Only deferred outflows of resources expected to be used up and deferred inflows or resources that come due during the year or soon thereafter; no capital assets included All deferred outflows/inflows of resources, regardless of when cash is received or paid Type of inflow/out flow information All revenues and expenses during year, regardless of when cash is received or paid Revenues for which cash is received during or soon after the end of the year; expenditures when goods or services have been received and payment is due during the year or soon thereafter All revenues and expenses during the year, regardless of when cash is received or paid Government-wide Financial Statements.The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a private-sector business. The statement of net position presents information on all of the City’s assets, deferred outflows, liabilities, and deferred inflows, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The statement of activities presents information showing how the City’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenue (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, public safety, public works, culture and recreation, community development, and interest on long-term debt. The business-type activities of the City include water and sewer utilities and the golf course. The government-wide financial statements start on page 41 of this report. All assets and liabilities, All assets and liabilities, both financial and capital, both financial and capital, and shortand short-term and longterm and long- termterm Only assets expected to be Only assets expected to be used up and liabilities that used up and liabilities that come due during the year or come due during the year or soon thereafter; no capital soon thereafter; no capital assets includedassets included All assets and liabilities, All assets and liabilities, both financial and capital, both financial and capital, and shortand short termterm All deferred All deferred outflows/inflows of outflows/inflows of resources, regardless of resources, regardless of when cash is received or when cash is received or paidpaid Only deferred outflows of Only deferred outflows of resources expected to be used resources expected to be used up and deferred inflows or up and deferred inflows or resources that come due during resources that come due during the year or soon thereafter; no the year or soon thereafter; no All deferreAll deferre outflows/inflows of outflows/inflows of resources, regardless of resources, regardless of when cash is received or when cash is received or paidpaid 29 Fund Financial Statements.A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental Funds.Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact by 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 maintains numerous 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, Pavement Management Plan and Municipal State Aid Street funds, which are all considered to be major funds. Data from the other governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements or schedules elsewhere in this report. The City adopts an annual appropriated budget for its General fund. A budgetary comparison statement has been provided for these funds to demonstrate compliance with its budget. The basic governmental fund financial statements start on page 46 of this report. Proprietary Funds. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for all the water, sewer, and golf course funds, which are considered to be major funds of the City. Conversely, all internal service funds are combined into a single aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this report. The City maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for its water, sanitary sewer and golf operations. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City's various functions. The City uses internal service funds to account for insurance, compensated absences, fleet management and IT services. Because these services benefit both governmental and business-type activities, they are allocated to both governmental and business-type activities in the government-wide financial statements. The basic proprietary fund financial statements start on page 52 of this report. 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. The notes to the financial statements start on page 59 of this report. Other Information.In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City’s progress in funding its obligation to provide pensions and other postemployment benefits to its employees. Required supplementary information can be found starting on page 88 of this report. The combining statements referred to earlier in connection with nonmajor governmental funds and internal service funds are presented following the required supplementary information. Combining and individual fund financial statements and schedules start on page 98 of this report. to demonstrate compliance with its budget.to demonstrate compliance with its budget. The basic governmental fund financial statements The basic governmental fund financial statements start on page on page 46 of this report.of this report. Proprietary funds provide the same type of information as the governmentProprietary funds provide the same type of information as the government--wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for all the water, sewer, and only in more detail. The proprietary fund financial statements provide separate information for all the water, sewer, and golf course funds, which are considered to be major funds of the City. Conversely, all internal service funds are combined golf course funds, which are considered to be major funds of the City. Conversely, all internal service funds are combined into a single aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal into a single aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this report.service funds is provided in the form of combining statements elsewhere in this report. 30 Government-wide Financial Analysis As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the City, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $52,895,092 at the close of the most recent fiscal year. By far, the largest portion of the City’s net position (83.5 percent) reflects its investment in capital assets (e.g., land, buildings, machinery and equipment) less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. City of Orono’ Summary of Net Position Increase Increase 2019 2018 (Decrease) 2019 2018 (Decrease) Assets Current and other assets 11,220,921$ 11,677,457$ (456,536)$ 5,434,068$ 5,804,126$(370,058)$ Capital assets, net of depreciation 31,754,497 30,201,187 1,553,310 19,564,663 18,898,051 666,612 Total Assets 42,975,418 41,878,644 1,096,774 24,998,731 24,702,177 296,554 Deferred Outflows of Resources Deferred other postemployment benefits resources 15,632 18,834 (3,202) 2,697 1,926 771 Deferred pension resources 3,859,103 3,419,531 439,572 45,799 60,837 (15,038) Total Deferred Outflows or Resources 3,874,735 3,438,365 436,370 48,496 62,763 (14,267) Liabilities Noncurrent liabilities outstanding 11,039,612 10,632,106 407,506 1,474,864 899,101 575,763 Other liabilities 2,012,386 3,819,805 (1,807,419) 426,171 772,946 (346,775) Total Liabilities 13,051,998 14,451,911 (1,399,913) 1,901,035 1,672,047 228,988 Deferred Inflows of Resources Deferred other postemployment benefits resources 37,525 - 37,525 6,476 - 6,476 Deferred pension resources 3,934,581 4,899,916 (965,335) 70,673 88,732 (18,059) Total Deferred Inflows or Resources 3,972,106 4,899,916 (927,810) 77,149 88,732 (11,583) Net Position Net investment in capital assets 25,500,646 23,370,988 2,129,658 18,679,663 17,917,465 762,198 Restricted 3,202,919 3,434,418 (231,499) - - - Unrestricted 1,122,484 (840,224) 1,962,708 4,389,380 5,086,696 (697,316) Total Net Position 29,826,049$ 25,965,182$ 3,860,867$ 23,069,043$ 23,004,161$ 64,882$ Governmental Activities Business-type Activities An additional portion of the City’s net position (6.1 percent) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position ($5,511,864) may be used to meet the City’s ongoing obligations to citizens and creditors. At the end of the current fiscal year, the City is able to report positive balances in two of the three categories of net position. The same situation held true for the prior fiscal year. Noncurrent liabilities outstandingNoncurrent liabilities outstanding 11,039,612 10,632,106 407,506 1,474,8641,474,864 2,012,3862,012,386 3,819,8053,819,805 (1,807,419)(1,807,419)426,171426,171 13,051,99813,051,998 14,451,91114,451,911 (1,399,913)(1,399,913)1,901,0351,901,035 Deferred other postemployment benefits resourcesDeferred other postemployment benefits resources 37,52537,525 --37,52537,525 6,4766,476 3,934,5813,934,581 4,899,9164,899,916 (965,335)(965,335)70,67370,673 Total Deferred Inflows or ResourcesTotal Deferred Inflows or Resources 3,972,1063,972,106 4,899,9164,899,916 (927,810)(927,810)77,14977,149 31 Significant changes from the prior year are noted below: City of Orono’ Changes in Net Position Increase Increase 2019 2018 (Decrease) 2019 2018 (Decrease) Revenues Program Revenues Charges for services 4,590,910$ 4,645,027$ (54,117)$ 3,043,620$ 2,814,263$ 229,357$ Operating grants and contributions 419,114 1,741,370 (1,322,256) 21,058 34,500 (13,442) Capital grants and contributions 649,359 820,165 (170,806) 253,370 7,400 245,970 General Revenues Taxes Property taxes 5,630,633 5,510,133 120,500 - - - Tax increment 76,344 - 76,344 - - - Grants and contributions not restricted to specific programs 26,372 - 26,372 - - - Unrestricted investment earnings 259,332 132,799 126,533 127,939 51,588 76,351 Gain on sale of capital assets 63,105 - 63,105 - - - Other - 193,279 (193,279) - 79,683 (79,683) Total Revenues 11,715,169 13,042,773 (1,327,604) 3,445,987 2,987,434 458,553 Expenses General government 818,147 1,947,411 (1,129,264) - - - Public safety 5,422,838 5,661,624 (238,786) - - - Streets 946,735 2,131,198 (1,184,463) - - - Culture and recreation 535,357 465,170 70,187 - - - Community development 141,722 - 141,722 - - - Interest on long-term debt 150,164 155,122 (4,958) - - - Water - - - 984,452 915,730 68,722 Sewer - - - 1,538,449 1,381,752 156,697 Storm Water - - - 433,908 143,194 290,714 Recycling - - - 173,049 127,044 46,005 Cable Television - -- 90,586 51,943 38,643 Total Expenses 8,014,963 10,360,525 (2,345,562) 3,220,444 2,619,663 600,781 Change in Net Position before Transfers 3,700,206 2,682,248 1,017,958 225,543 367,771 (142,228) Transfers (Net) 160,661 (41,000) 201,661 (160,661) 41,000 (201,661) Change in Net Position 3,860,867 2,641,248 1,219,619 64,882 408,771 (343,889) Net Position, January 1 (Restated) 25,965,182 23,323,934 2,641,248 23,004,161 22,595,390 408,771 Net Position, December 31 29,826,049$ 25,965,182$ 3,860,867$ 23,069,043$ 23,004,161$ 64,882$ Governmental Activities Business-type Activities The decrease in Operating Grants and Contributions from the prior year related to Municipal State aid. 535,357 465,170 70,187 - 141,722 -141,722 -- 150,164 155,122 (4,958)-- ------984,452984,452 ----1,538,4491,538,449 ----433,908433,908 ----173,049173,049 -----90,586586 8,014,9638,014,963 10,360,52510,360,525 (2,345,562)(2,345,562)3,220,4443,220,444 32 Governmental Activities.Governmental activities increased the City’s net position by $3,860,867. This increase was primarily the result of current year increase in revenues and change in pension liability balances. The following graph depicts various governmental activities and shows the revenues and expenses directly related to those activities. Expenses and Program Revenues - Governmental Activities $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 General Government Public Safety Public Works Parks and Recreation Community Development Interest on Long- term Debt Expenses Program Revenues Revenues by Source - Governmental Activities Charges for Services 39.2% Operating Grants and Contributions 3.6% Capital Grants and Contributions 5.5% Grants and Contributions Unrestricted 0.2% Taxes 48.7% Other 2.8% GovernmentGovernment Recreation DevelopmentDevelopment Expenses Program RevenuesProgram Revenues Revenues s by Source by Source - Governmental ActivitiesGovernmental Activities Charges for Charges for ServicesServices 39.2%39.2%39.2% Other Other 2.8%2.8% 33 Business-type Activities. The net position of business-type activities increased by $64,882. This increase was primarily the result of an increase in charges for services. Below are graphs showing the business-type activities revenue and expense comparisons. Expenses and Program Revenues - Business-type Activities $- $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 Water Sewer Storm Water Recycling Cable Television Expenses Program Revenues Revenues by Source - Business-type Activities Charges for Services 88.3% Operating Grants and Contributions 0.6% Capital Grants and Contributions 7.4% Unrestricted Investment Earnings 3.7% Expenses Program Revenues Revenues s by Source by Source - - BusBusinessiness-t-type Actype Activitiesivities Operating Grants Operating Grants and Contributionsand Contributionsand Contributions Capital Grants and Capital Grants and ContributionsContributions 7.4%7.4% Unrestricted Unrestricted Investment Investment EarningsEarnings 3.7%3.7% 34 Financial Analysis of the City’s Funds As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds. The focus of the City’s governmental funds is to provide information on near-term inflows, outflows and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the City’s governmental funds had combined ending fund balances of $7,719,676, an increase of $126,306 in comparison with the prior year. Approximately 12.3 percent of this total amount, $1,611,964, constitutes unassigned fund balance, which is available for spending at the City’s discretion. The remainder of fund balance is not available for new spending because it is either 1) nonspendable $119,157, 2) restricted $3,250,008, 3) committed $16,741, or 4) assigned $2,721,806. For further classification refer to Note 3F starting on page 76 of this report. Activity in the City’s major funds is discussed below: Increase 2019 2018 (Decrease) General 4,407,693$ 4,454,566$(46,873)$ Pavement Management (488,179)$ (61,123)$(427,056)$ Municipal State Aid Street (2,188,393)$ (2,698,607)$ 510,214$ Fund Balances Major Fund December 31, The General fund is the chief operating fund of the City. As a measure of the General fund’s liquidity, it may be useful to compare total fund balance to the annual budget. The fund balance is 50.0 percent of the annual budgeted expenses The Municipal State Aid Street fund is used to collect and spend resources on the various projects related to state aid streets and highways. The Fund balance increase in the current year mostly due to a decrease in the amount of Capital Outlay expenses by the fund in the current year. The Pavement Management fund was established to account for the governmental portion of capital projects. The ending fund balance is assigned for capital improvements. The decrease is largely related to expenses related to the project by the fund. Municipal State Aid StreetMunicipal State Aid Street (2,188,393)(2,188,393)$$(2,698,607)(2,698,607)$ (488,179)(488,179)$$((61,61,$$ und balance to the annualund balance to the annual budget. The fund balance is 50.0 percent0 percent of of t of he annualhe annual The Municipal State Aid Street fund is used to collect and spend resources on the various projects related to state aid The Municipal State Aid Street fund is used to collect and spend resources on the various projects related to state aid The Pavement Management fund was established to account for the governmental portion of capital projects. The The Pavement Management fund was established to account for the governmental portion of capital projects. The ending fund balance is assigned for capital improvements. The decrease is largely related to expenses related to the ending fund balance is assigned for capital improvements. The decrease is largely related to expenses related to the 35 Proprietary Funds. The City’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. At the end of the year, unrestricted net position of the enterprise funds amounted to $5,136,562. Other factors concerning the finances of these funds have already been addressed in the discussion of the City’s business-type activities. General Fund Budgetary Highlights The City’s General fund budget was not amended during the year. The final budget anticipated use of $0 of fund balance due to. Revenues were more than budget by $644,275, primarily due to licenses and permits and charges for services coming over budget by $383,801 and $104,473 respectively. Expenditures were $4,086 less than budgeted amounts, primarily due to expenditures for general government coming in under budget by $98,107. All other departments had expenditures higher than budgeted amounts. Capital Asset and Debt Administration Capital Assets.The City’s investment in capital assets for its governmental and business-type activities as of December 31, 2019, amounts to $51,319,160 (net of accumulated depreciation). This investment in capital assets includes land (tangible and intangible), buildings, improvements, machinery and equipment, park facilities, roads and bridges, and other infrastructure. Major capital asset events during the current fiscal year included the following: The 2018 Street Improvements and Old Crystal Bay Road Improvement projects were both completed for $1,540,994 and $2,315,270 respectively during 2019. Various City vehicles were purchased totaling $229,083 The City has construction commitments relating to Street and improvement projects. Constructions in progress at year-end for both governmental and business-type activities total $1,906,059. City of Orono’ Capital Assets (Net of Depreciation) Additional information on the City’s capital assets can be found in Note 3B starting on page 71 of this report. Increase Increase 2019 2018 (Decrease) 2019 2018 (Decrease) Land 7,337,435$ 7,337,435$ -$ 79,706$ 79,706$ -$ Construction in Progress 2,124,120 3,946,328 (1,822,208) 899,978 1,127,199 (227,221) Infrastructure 12,595,398 8,986,873 3,608,525 1,147,476 16,136,858 (14,989,382) Buildings and Systems 6,209,827 6,369,219 (159,392) 7,383 1,113,385 (1,106,002) Improvements other than Buildings 1,390,777 1,474,641 (83,864) 389,605 7,636 381,969 Machinery and Equipment 2,096,940 2,086,691 10,249 17,040,515 433,267 16,607,248 Total 31,754,497$ 30,201,187$ 1,553,310$ 19,564,663$ 18,898,051$ 666,612$ Governmental Activities Business-type Activities Additional information on the City’s capital assets can be found in Note 3B starting on page Additional information on the City’s capital assets can be found in Note 3B starting on page 7171 of this report.of this report. Governmental ActivitiesGovernmental Activities Various City vehicles were purchased totaling $229,08 The City has construction commitments relating to StreetThe City has construction commitments relating to Street and improvementand improvement projects. Constructions projects. Constructions end for both governmental and businessend for both governmental and business-type activities total $type activities total $1,906,0591,906,059. . City of OronoCity of Orono’ Capital AssetsCapital Assets (Net of DepreciationNet of Depreciation) ) Business-type ActivitiesBusiness-type Activities 36 Long-term Debt.At the end of the current fiscal year, the City had total bonded debt outstanding of $6,995,000. All of the City’s bonds are backed by the full faith and credit of the City. State statutes limit the amount of G.O. debt a Minnesota city may issue to 3 percent of total estimated market value. The current debt limitation for the City is $95,106,635. Only the $6,995,000 in G.O. bonds is counted within the statutory limitation. City of Orono’Outstanding Debt Increase Increase 2019 2018 (Decrease) 2019 2018 (Decrease) G.O. Revenue Bonds 6,110,000$ 7,000,000$ (890,000)$ 885,000$ 965,000$(80,000)$ Bond Premium 143,851 169,801 (25,950) 14,101 15,586 (1,485) Total 6,253,851$ 7,169,801$ (915,950)$ 899,101$ 980,586$(81,485)$ Governmental Activities Business-type Activities Additional information on the City’s long-term debt can be found in Note 3E starting on page 74 of this report. Economic Factors and Next Year’s Budgets and Rates Requests for Information Questions concerning any of the information provided in this report or requests for additional information should be addressed by writing to the City of Orono, 2750 Kelley Parkway, P.O. Box 66, Crystal Bay, Minnesota 55323 or by calling (952) 249-4600. Requests for InformationRequests for Information Questions concerning any of the information provided in this report or requests for additional information should be Questions concerning any of the information provided in this report or requests for additional information should be addressed by writing to the City of Orono, 2750 Kelley Parkway, P.O. Box 66, Crystal Bay, Minnesota 55323 or by calling addressed by writing to the City of Orono, 2750 Kelley Parkway, P.O. Box 66, Crystal Bay, Minnesota 55323 or by calling 37 38 GOVERNMENT-WIDE FINANCIAL STATEMENTS CITY OF ORONO, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2019DECEMBER 31, 2019 39 40 City of Orono, Minnesota Statement of Net Position December 31, 2019 Governmental Business-type Activities Activities Total Assets Cash and temporary investments 10,119,272$ 4,477,204$ 14,596,476$ Receivables Accrued interest 22,338 11,437 33,775 Taxes 69,976 - 69,976 Accounts 15,918 605,826 621,744 Special assessments 38,450 278,501 316,951 Due from other governments 790,186 2,918 793,104 Inventories 3,494 6,566 10,060 Prepaid items 161,287 51,616 212,903 Capital assets Land and construction in progress 9,461,554 993,195 10,454,749 Depreciable assets (net of accumulated depreciation) 22,292,943 18,571,468 40,864,411 Total Assets 42,975,418 24,998,731 67,974,149 Deferred Outflows of Resources Deferred other postemployment benefits resources 15,632 2,697 18,329 Deferred pension resources 3,859,103 45,799 3,904,902 Total Deferred Outflows of Resources 3,874,735 48,496 3,923,231 Liabilities Accounts and contracts payable 306,268 362,057 668,325 Accrued salaries payable 204,684 23,454 228,138 Due to other governments 12,838 24,814 37,652 Accrued interest payable 64,765 8,846 73,611 Deposits payable 1,383,436 7,000 1,390,436 Unearned revenue 40,395 - 40,395 Noncurrent liabilities Due within one year 1,458,670 140,308 1,598,978 Due in more than one year 5,341,041 822,034 6,163,075 Net pension liability 3,495,017 383,969 3,878,986 Other postemployment benefits liability 744,884 128,553 873,437 Total Liabilities 13,051,998 1,901,035 14,953,033 Deferred Inflows of Resources Deferred pension resources 3,934,581 70,673 4,005,254 Deferred other postemployment benefit resources 37,525 6,476 44,001 Total Deferred Inflows of Resources 3,972,106 77,149 4,049,255 Net Position Net investment in capital assets 25,500,646 18,679,663 44,180,309 Restricted for Debt service 2,093,454 - 2,093,454 Golf course improvements 277 - 277 Park improvements 325,063 - 325,063 Drug and alcohol law enforcement ' 555,241 - 555,241 Home buyer purchase assistance program 137,506 - 137,506 Senior housing TIF 91,378 - 91,378 Unrestricted 1,122,484 4,389,380 5,511,864 Total Net Position 29,826,049$ 23,069,043$ 52,895,092$ The notes to the financial statements are an integral part of this statement. Accounts and contracts payableAccounts and contracts payable 306,268306,268 362,057 204,684204,684 12,83812,838 64,76564,765 1,383,4361,383,436 40,39540,395 1,458,6701,458,670 140,308140,308 41 City of Orono, Minnesota Statement of Activities For the Year Ended December 31, 2019 Operating Capital Charges for Grants and Grants and Expenses Services Contributions Contributions Governmental Activities General government 818,147$ 966,665$ -$ -$ Public safety 5,422,838 2,656,733 419,114 174,114 Public works 946,735 881,011 - 454,568 Parks and recreation 535,357 86,501 - 20,677 Community development 141,722 - - - Interest on long-term debt 150,164 - - - Total Governmental Activities 8,014,963 4,590,910 419,114 649,359 Business-type Activities Water 984,452 871,125 - - Sewer 1,538,449 1,600,046 - 196,950 Storm water 433,908 361,199 - 56,420 Recycling 173,049 131,013 21,058 - Cable television 90,586 80,237 - - Total Business-type Activities 3,220,444 3,043,620 21,058 253,370 Total 11,235,407$ 7,634,530$ 440,172$ 902,729$ General Revenues Taxes Property taxes, levied for general purposes Property taxes, levied for debt service Tax increments Grants and contributions not restricted to specific programs Unrestricted investment earnings Gain on sale of capital assets Transfers - Internal Activities 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. 173,049 131,013 21,058 90,586 80,23780,237 Total Business-type ActivitiesTotal Business-type Activities 3,220,444 3,043,6203,043,620 21,058 11,235,40711,235,407$$7,634,5307,634,530$$440,172440,172$ General RevenuesGeneral Revenues TaxesTaxes Property taxes, levied for general purposesProperty taxes, levied for general purposes Property taxes, levied for debt serviceProperty taxes, levied for debt service 42 Governmental Business-type Activities Activities Total 148,518$ -$ 148,518$ (2,172,877) - (2,172,877) 388,844 - 388,844 (428,179) - (428,179) (141,722) - (141,722) (150,164) - (150,164) (2,355,580) - (2,355,580) - (113,327) (113,327) - 258,547 258,547 - (16,289) (16,289) - (20,978) (20,978) - (10,349) (10,349) - 97,604 97,604 (2,355,580) 97,604 (2,257,976) 4,919,814 - 4,919,814 710,819 - 710,819 76,344 - 76,344 26,372 - 26,372 259,332 127,939 387,271 63,105 - 63,105 160,661 (160,661) - 6,216,447 (32,722) 6,183,725 3,860,867 64,882 3,925,749 25,965,182 23,004,161 48,969,343 29,826,049$ 23,069,043$ 52,895,092$ Changes in Net Position Net (Expenses) Revenues and The notes to the financial statements are an integral part of this statement. (20,978)(20,978)(20,978) (10,349)(10,349)(10,349) 97,60497,604 97,604 97,60497,604 (2,257,976)(2,257,976) --4,919,8144,919,814 710,819710,819 43 44 FUND FINANCIAL STATEMENTS CITY OF ORONO, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2019DECEMBER 31, 2019 45 City of Orono, Minnesota Balance Sheet Governmental Funds December 31, 2019 Pavement Municipal Other Total Management State Aid Governmental Governmental General Plan Street Funds Funds Assets Cash and temporary investments 3,179,534$ (241,569)$ 426,078$ 6,036,907$ 9,400,950$ Receivables Accrued interest 5,633 - - 14,722 20,355 Taxes 43,245 9,055 - 17,676 69,976 Accounts 15,918 - - - 15,918 Special assessments - - - 38,450 38,450 Due from other governments 77,341 5,154 698,016 9,675 790,186 Due from other funds 2,675,998 - - - 2,675,998 Prepaid items 115,663 - - - 115,663 Inventory 3,494 - - - 3,494 Total Assets 6,116,826$ (227,360)$ 1,124,094$ 6,117,430$ 13,130,990$ Liabilities Accounts and contracts payable 66,746$ 71,865$ 77,977$ 72,749$ 289,337$ Accrued salaries payable 202,868 - - - 202,868 Due to other governments 12,838 - - - 12,838 Due to other funds - 139,504 2,536,494 - 2,675,998 Deposits payable 1,383,436 - - - 1,383,436 Unearned revenue - 40,395 - - 40,395 Total Liabilities 1,665,888 251,764 2,614,471 72,749 4,604,872 Deferred Inflows of Resources Unavailable revenues - delinquent taxes 43,245 9,055 - 17,676 69,976 Unavailable revenues - special assessments - - - 38,450 38,450 Unavailable revenues - intergovernmental - - 698,016 - 698,016 Total Deferred Inflows of Resources 43,245 9,055 698,016 56,126 806,442 Fund Balances Nonspendable 119,157 - - - 119,157 Restricted - - - 3,250,008 3,250,008 Committed - - - 16,741 16,741 Assigned - - - 2,721,806 2,721,806 Unassigned 4,288,536 (488,179) (2,188,393) - 1,611,964 Total Fund Balances 4,407,693 (488,179) (2,188,393) 5,988,555 7,719,676 Total Liabilities, Deferred Inflows of Resources and Fund Balances 6,116,826$ (227,360)$ 1,124,094$ 6,117,430$ 13,130,990$ Capital Projects The notes to the financial statements are an integral part of this statement. 202,868 --- 12,838 -- -139,504139,504 2,536,4942,536,494 1,383,4361,383,436 ---- -40,395 - 1,665,8881,665,888 251,764251,764 2,614,4712,614,471 72,749 Deferred Inflows of ResourcesDeferred Inflows of Resources Unavailable revenues - delinquent taxesUnavailable revenues - delinquent taxes 43,24543,245 9,0559,055 - Unavailable revenues - special assessmentsUnavailable revenues - special assessments ---38,45038,450 46 City of Orono, Minnesota Reconciliation of the Balance Sheet to the Statement of Net Position Governmental Funds December 31, 2019 Amounts reported for the governmental activities in the statement of net position are different because Total Fund Balances - Governmental Funds 7,719,676$ Capital assets used in governmental activities are not financial resources and therefore are not reported as assets in governmental funds. Cost of capital assets 40,416,241 Less: accumulated depreciation (8,661,744) Internal service funds are used by the City to charge the cost of compensated absences, liability, property, and workers compensation insurance, vehicles and equipment, centralized purchase of consumable office supplies, maintaining facilities, and maintenance of computer systems. These balances are reported with governmental activities on the statement of net position. 747,182 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 Compensated absences payable (545,860) Bonds payable (6,110,000) Plus premium on bonds issued (143,851) Other postemployment benefits payable (744,884) Pension liability (3,495,017) Some receivables are not available soon enough to pay for the current period's expenditures, and therefore are unavailable in the funds. Delinquent taxes 69,976 Special assessments 38,450 Intergovernmental 698,016 Governmental funds do not report long-term amounts related to pensions and OPEB. Deferred outflows other postemployment benefit resources 15,632 Deferred inflows other postemployment benefit resources (37,525) Deferred outflows of pension resources 3,859,103 Deferred inflows of pension resources (3,934,581) Governmental funds do not report a liability for accrued interest until due and payable. (64,765) Total Net Position - Governmental Activities 29,826,049$ The notes to the financial statements are an integral part of this statement. Compensated absences payableCompensated absences payable Plus premium on bonds issuedPlus premium on bonds issued Other postemployment benefits payableOther postemployment benefits payable Some receivables are not available soon enough to pay for the current period's expenditures,Some receivables are not available soon enough to pay for the current period's expenditures, and therefore are unavailable in the funds.and therefore are unavailable in the funds. Special assessmentsSpecial assessments 47 City of Orono, Minnesota Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the Year Ended December 31, 2019 Pavement Municipal Other Total Management State Aid Governmental Governmental General Plan Street Funds Funds Revenues Taxes 4,384,037$ 537,973$ -$ 787,163$ 5,709,173$ Special assessments - - - 22,783 22,783 Licenses and permits 703,192 - - 38,850 742,042 Intergovernmental 431,754 - 376,550 158,570 966,874 Charges for services 3,476,423 143,073 - 27,626 3,647,122 Fines and forfeitures 85,810 - - 213,851 299,661 Investment earnings 97,634 (176) 4,611 157,263 259,332 Miscellaneous 27,705 - - 45,944 73,649 Total Revenues 9,206,555 680,870 381,161 1,452,050 11,720,636 Expenditures Current General government 1,271,893 - - - 1,271,893 Public safety 5,442,382 - - 3,818 5,446,200 Public works 773,965 - - - 773,965 Parks and recreation 442,226 - - 38,644 480,870 Community development - - - 141,722 141,722 Capital outlay Public safety 242,656 - - - 242,656 Public works 72 1,585,009 110,864 191,587 1,887,532 Parks and recreation - - - 476,873 476,873 Debt service Principal - - - 890,000 890,000 Interest and other charges - - - 184,385 184,385 Total Expenditures 8,173,194 1,585,009 110,864 1,927,029 11,796,096 Excess (Deficiency) of Revenues Over (Under) Expenditures 1,033,361 (904,139) 270,297 (474,979) (75,460) Other Financing Sources (Uses) Transfers in - 717,000 239,917 721,357 1,678,274 Proceeds from sale of capital assets 41,105 - - - 41,105 Transfers out (1,121,339) (239,917) - (156,357) (1,517,613) Total Other Financing Sources (Uses) (1,080,234) 477,083 239,917 565,000 201,766 Net Change in Fund Balances (46,873) (427,056) 510,214 90,021 126,306 Fund Balances, January 1 4,454,566 (61,123) (2,698,607) 5,898,534 7,593,370 Fund Balances, December 31 4,407,693$ (488,179)$ (2,188,393)$ 5,988,555$ 7,719,676$ Capital Projects The notes to the financial statements are an integral part of this statement. 773,965 442,226 ---38,644 Community developmentCommunity development ---141,722 242,656242,656 -- 7272 1,585,0091,585,009 110,864110,864 191,587 ----476,873 ---890,000 Interest and other chargesInterest and other charges ----184,385184,385 8,173,194 1,585,0091,585,009 110,864 1,927,0291,927,029 48 City of Orono, 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, 2019 Amounts reported for governmental activities in the statement of activities are different because Total Net Change in Fund Balances - Governmental Funds 126,306$ Capital outlays are reported in governmental funds as expenditures. However, in the statement of activities, the cost of those assets is allocated over the estimated useful lives as depreciation expense. Capital outlays 2,392,471 Depreciation expense (861,161) Governmental funds report a gain (loss) on sale of capital assets to the extent of cash exchanged, whereas the disposition of the assets book value is included in the total gain (loss) in the statement of activities. 22,000 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 890,000 Current year amortization of deferred charges 25,950 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. 8,271 Internal service funds are used by the City to charge the cost of compensated absences, liability, property, and workers compensation insurance, vehicles and equipment, centralized purchase of consumable office supplies, maintaining facilities, and maintenance of computer systems. These balances are reported with governmental activities in the statement of activities. 61,430 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 11,583 Property taxes (2,196) Intergovernmental (80,461) 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. Compensated absences (7,541) Other postemployment benefits (26,111) Long-term pension activity is not reported in governmental funds. Pension expense 1,297,824 Pension revenue from State contributions 2,502 Change in Net Position - Governmental Activities 3,860,867$ The notes to the financial statements are an integral part of this statement. Principal repaymentsPrincipal repayments Current year amortization of deferred chargesCurrent year amortization of deferred charges Interest on long-term debt in the statement of activities differs from the amount reported in theInterest 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,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,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.interest expense is recognized as the interest accrues, regardless of when it is due. Internal service funds are used by the City to charge the cost of compensated absences, liability, Internal service funds are used by the City to charge the cost of compensated absences, liability, 49 50 City of Orono, Minnesota Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Fund For the Year Ended December 31, 2019 Actual Variance with Original Final Amounts Final Budget Revenues Taxes 4,390,000$ 4,390,000$ 4,384,037$ (5,963)$ Licenses and permits 496,750 496,750 703,192 206,442 Intergovernmental 270,220 270,220 431,754 161,534 Charges for services 3,219,900 3,219,900 3,476,423 256,523 Fines and forfeitures 80,100 80,100 85,810 5,710 Investment earnings 96,410 96,410 97,634 1,224 Miscellaneous Rents and refunds 5,400 5,400 5,850 450 Other 3,500 3,500 21,855 18,355 Total Revenues 8,562,280 8,562,280 9,206,555 644,275 Expenditures Current General government 1,370,000 1,370,000 1,271,893 98,107 Public safety 5,433,180 5,433,180 5,442,382 (9,202) Public Works 758,930 758,930 773,965 (15,035) Parks and recreation 431,170 431,170 442,226 (11,056) Capital Outlay General government - - - - Public safety 184,000 184,000 242,656 (58,656) Public Works - - 72 (72) Total Expenditures 8,177,280 8,177,280 8,173,194 4,086 Excess of Revenues Over Expenditures 385,000 385,000 1,033,361 648,361 Other Financing Sources (Uses) Proceeds from sale of capital assets 15,000 15,000 41,105 26,105 Transfers out (400,000) (400,000) (1,121,339) (721,339) Total Financing Sources (Uses) (385,000) (385,000) (1,080,234) (695,234) Net Change in Fund Balances - - (46,873) (46,873) Fund Balances, January 1 4,454,566 4,454,566 4,454,566 - Fund Balances, December 31 4,454,566$ 4,454,566$ 4,407,693$ (46,873)$ Budgeted Amounts The notes to the financial statements are an integral part of this statement. 1,370,000 1,370,000 1,271,893 5,433,180 5,433,1805,433,180 5,442,3825,442,382 758,930 758,930758,930 773,965773,965 431,170431,170 431,170431,170 442,226442,226 --- 184,000184,000 184,000184,000 242,656242,656 --- 8,177,2808,177,280 8,177,2808,177,280 8,173,1948,173,194 51 Governmental Activities - Internal Water Sewer Storm Water Other Business-type Total Service Funds Assets Current Assets Cash and temporary investments 230,213$ 2,764,292$ 1,186,111$ 182,704$ 4,363,320$ 832,206$ Receivables Accrued interest 664 7,064 3,182 527 11,437 1,983 Accounts 158,388 357,164 52,307 37,967 605,826 - Special assessments 46,871 231,630 - - 278,501 - Due from other governments - 2,918 - - 2,918 - Inventories 6,566 - - - 6,566 - Prepaid items - 51,616 - - 51,616 45,624 Total Current Assets 442,702 3,414,684 1,241,600 221,198 5,320,184 879,813 Noncurrent Assets Capital assets Land 62,195 24,654 6,368 - 93,217 - Construction in progress 290,337 375,602 171,879 62,160 899,978 - Buildings and systems 1,670,843 32,968 - - 1,703,811 - Improvements other than buildings 5,951,230 18,942,696 2,209,084 - 27,103,010 - Machinery and equipment 100,444 538,304 245,870 78,674 963,292 - Total Capital Assets 8,075,049 19,914,224 2,633,201 140,834 30,763,308 - Less accumulated depreciation (2,915,824) (7,956,031) (301,092) (25,698) (11,198,645) - Total Noncurrent Assets 5,159,225 11,958,193 2,332,109 115,136 19,564,663 - Total Assets 5,601,927 15,372,877 3,573,709 336,334 24,884,847 879,813 Deferred Outflows of Resources Deferred pension resources 16,934 17,087 8,522 3,256 45,799 - Deferred other postemployment benefits resources 844 1,221 632 - 2,697 - Total Deferred Outflows of Resources 17,778 18,308 9,154 3,256 48,496 - Business-type Activities - Enterprise Funds City of Orono, Minnesota Statement of Net Position (Continued on the Following Page) Proprietary Funds December 31, 2019 The notes to the financial statements are an integral part of this statement. 5,159,225 11,958,193 2,332,109 115,136115,136 5,601,927 15,372,877 3,573,709 336,334336,334 16,93416,934 17,08717,087 8,5228,522 3,2563,256 ferred other postemployment benefits resourcesferred other postemployment benefits resources 844844 1,221 632 -- Total Deferred Outflows of ResourcesTotal Deferred Outflows of Resources 17,77817,778 18,30818,308 9,1549,154 3,2563,256 52 Governmental Activities - Internal Water Sewer Storm Water Other Business-type Total Service Funds Liabilities Current Liabilities Accounts and contracts payable 43,610$ 276,368$ 13,864$ 28,215$ 362,057$ 16,931$ Accrued salaries payable 9,091 8,790 4,467 1,106 23,454 1,816 Due to other governments 11,473 13,341 - - 24,814 - Accrued interest payable 8,846 - - - 8,846 - Deposits payable 7,000 - - - 7,000 - Compensated absences payable - current portion 32,122 17,384 9,317 - 58,823 - Bond premium 14,101 - - - 14,101 Bonds payable - current portion 80,000 - - - 80,000 - Total Current Liabilities 206,243 315,883 27,648 29,321 579,095 18,747 Noncurrent Liabilities Bonds payable 805,000 - - - 805,000 - Compensated absences payable 2,413 1,305 700 - 4,418 - Pension liability 141,970 143,252 71,446 27,301 383,969 - Other postemployment benefits payable 40,218 58,205 30,130 - 128,553 - Total Noncurrent Liabilities 989,601 202,762 102,276 27,301 1,321,940 - Total Liabilities 1,195,844 518,645 129,924 56,622 1,901,035 18,747 Deferred Inflows of Resources Deferred pension resources 26,131 26,367 13,150 5,025 70,673 - Deferred other postemployment benefit resources 2,026 2,932 1,518 - 6,476 - Total Deferred Inflows of Resources 28,157 29,299 14,668 5,025 77,149 - Net Position Net investment in capital assets 4,274,225 11,958,193 2,332,109 115,136 18,679,663 - Unrestricted 121,479 2,885,048 1,106,162 162,807 4,275,496 861,066 Total Net Position 4,395,704$ 14,843,241$ 3,438,271$ 277,943$ 22,955,159$ 861,066$ Some amounts reported for business-type activities in the statement of net position are different because certain internal service fund assets and liabilities are included with business-type activities 113,884 23,069,043$ City of Orono, Minnesota Statement of Net Position (Continued) Proprietary Funds December 31, 2019 Business-type Activities - Enterprise Funds The notes to the financial statements are an integral part of this statement. 26,131 26,367 13,150 5,0255,025 Deferred other postemployment benefit resourcesDeferred other postemployment benefit resources 2,026 2,932 1,518 -- Total Deferred Inflows of ResourcesTotal Deferred Inflows of Resources 28,15728,157 29,29929,299 14,66814,668 5,0255,025 Net investment in capital assetsNet investment in capital assets 4,274,2254,274,225 11,958,193958,193 2,332,1092,332,109 115,136115,136 121,479121,479 2,885,0482,885,048 1,106,1621,106,162 162,807162,807 4,395,7044,395,704$ $ 14,843,24114,843,241$ 3,438,2713,438,271$ $ 277,943277,943$ $ $ $ 53 54 Governmental Activities - Internal Water Sewer Storm Water Other Business-type Total Service Funds Operating Revenues Charges for services 854,551$ 1,596,319$ 361,025$ 207,037$ 3,018,932$ 346,500$ Other - - - - - 424,631 Total Operating Revenues 854,551 1,596,319 361,025 207,037 3,018,932 771,131 Operating Expenses Personnel services 329,696 251,520 225,470 57,563 864,249 234,003 Supplies 47,672 17,351 1,919 - 66,942 48,515 Professional services 37,713 47,547 23,869 183,212 292,341 104,408 Utilities 79,956 29,094 - - 109,050 - Repairs and maintenance 117,900 144,098 22,360 - 284,358 112,727 Depreciation 187,360 326,490 46,257 7,868 567,975 - Administrative charges from the General Fund 102,660 102,660 51,330 2,500 259,150 - Insurance 7,070 12,730 2,950 - 22,750 214,959 Other 59,998 612,744 62,467 14,452 749,661 - Total Operating Expenses 970,025 1,544,234 436,622 265,595 3,216,476 714,612 Operating Income (Loss) (115,474) 52,085 (75,597) (58,558) (197,544) 56,519 Nonoperating Revenues (Expenses) Investment earnings 10,738 76,016 35,086 6,099 127,939 20,822 Intergovernmental - - - 21,058 21,058 - Miscellaneous revenues 16,574 3,727 174 4,213 24,688 - Interest and amortization expense (19,879) - - - (19,879) - Total Nonoperating Revenues (Expenses) 7,433 79,743 35,260 31,370 153,806 20,822 Income (Loss) Before Contributions and Transfers (108,041) 131,828 (40,337) (27,188) (43,738) 77,341 Contributions Capital Contributions - 13,081 - - 13,081 - Donated capital assets - 40,340 - - 40,340 - Connection fee - 74,405 56,420 - 130,825 - Intergovernmental - 69,124 - - 69,124 - Transfers In 4,339 - - - 4,339 - Transfers Out (55,000) (110,000) - - (165,000) - Total Transfers and Contributions (50,661) 86,950 56,420 - 92,709 - Change in Net Position (158,702) 218,778 16,083 (27,188) 48,971 77,341 Net Position - January 1 4,554,406 14,624,463 3,422,188 305,131 783,725 Net Position, December 31 4,395,704$ 14,843,241$ 3,438,271$ 277,943$ 861,066$ Adjustment to reflect the consolidation of internal service fund activities to the enterprise funds. 15,911 Change in net position - business-type activities 64,882$ City of Orono, Minnesota Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds For the Year Ended December 31, 2019 Business-type Activities - Enterprise Funds The notes to the financial statements are an integral part of this statement. ---21,05821,058 16,574 3,727 174 4,2134,213 Interest and amortization expenseInterest and amortization expense (19,879)---- 7,4337,433 79,79,743743 35,26035,260 31,37031,370 (108,041)(108,041)131,828131,828 (40,337)(40,337)(27,188)(27,188) --13,08113,081 --- --40,34040,340 --- 55 Governmental Activities - Internal Water Sewer Storm Other Business-type Total Service Funds Cash Flows from Operating Activities Receipts from customers and users 840,049$ 1,627,588$ 369,770$ 212,026$ 3,049,433$ 771,131$ Other operating receipts 16,574 3,727 174 4,213 24,688 - Payments to suppliers (437,633) (751,444) (236,233) (171,949) (1,597,259) (523,674) Payments to employees (275,372) (279,762) (143,131) (43,780) (742,045) (232,187) Net Cash Provided (Used) by Operating Activities 143,618 600,109 (9,420) 510 734,817 15,270 Cash Flows from Noncapital Financing Activities Intergovernmental - - - 21,058 21,058 Transfers from other funds 4,339 - - - 4,339 - Transfers to other funds (55,000) (110,000) - - (165,000) - Net Cash Used by . Noncapital Financing Activities (50,661) (110,000) - 21,058 (139,603) - Cash Flows from Capital and Related Financing Activities Connection fees received - 74,405 56,420 - 130,825 - Special assessments received 12,473 26,805 - - 39,278 - Acquisition of capital assets (394,614) (548,361) (189,113) (62,160) (1,194,248) - Intergovernmental - 69,124 - - 69,124 - Interest paid on debt (22,031) - - - (22,031) - Principal paid on bonds (80,000) - - - (80,000) - Net Cash Used by Capital and Related Financing Activities (484,172) (378,027) (132,693) (62,160) (1,057,052) - Cash Flows from Investing Activities Investment receipts 10,738 73,969 34,411 5,873 124,991 20,314 Net Increase (Decrease) in Cash and Cash Equivalents (380,477) 186,051 (107,702) (34,719) (336,847) 35,584 Cash and Cash Equivalents, January 1 610,690 2,578,241 1,293,813 217,423 4,700,167 796,622 Cash and Cash Equivalents, December 31 230,213$ 2,764,292$ 1,186,111$ 182,704$ 4,363,320$ 832,206$ City of Orono, Minnesota Statement of Cash Flows (Continued on the Following Page) Proprietary Funds For the Year Ended December 31, 2019 Business-type Activities - Enterprise Funds The notes to the financial statements are an integral part of this statement. -69,124 -- (22,031)---- (80,000)---- Net Cash Used by CapitalNet Cash Used by Capital and Related Financing Activitiesand Related Financing Activities (484,172)(484,172)(378,027)(378,027)(132,693)(132,693)(62,160)(62,160) Cash Flows from Investing ActivitiesCash Flows from Investing Activities 10,73810,738 73,96973,969 34,41134,411 5,8735,873 (380,477)(380,477)186,051186,051 (1(107,702)07,702)(34,719)(34,719) 56 Governmental Activities - Internal Water Sewer Storm Other Business-type Total Service Funds Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities Operating income (loss) (115,474)$ 52,085$ (75,597)$ (58,558)$ (197,544)$ 56,519$ Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities Depreciation 187,360 326,490 46,257 7,868 567,975 - Other income related to operations 16,574 3,727 174 4,213 24,688 - (Increase) decrease in assets/deferred outflows of resources Accounts receivable (14,502) 26,689 8,745 4,989 25,921 - Due from other governments - 4,580 - - 4,580 - Prepaid items 583 (5,211) - - (4,628) (39,276) Deferred OPEB resources 2,032 2,614 1,059 - 5,705 - Deferred pension resources 3,556 15,542 (3,495) (565) 15,038 - Increase (decrease) in liabilities/deferred inflows of resources Accounts and contracts payable 13,502 219,432 (71,338) 28,215 189,811 (3,789) Accrued salaries payable (322) (277) 2,675 1,106 3,182 1,816 Due to other governments 1,251 559 - - 1,810 - Compensated absences payable 20,340 (6,111) 10,017 - 24,246 - Pension liability 26,530 (40,573) 43,127 12,142 41,226 - Other postemployment benefits payable 5,942 21,786 23,138 - 50,866 - Deferred pension resources (3,754) (21,223) 5,818 1,100 (18,059) - Net Cash Provided (Used) by Operating Activities 143,618$ 600,109$ (9,420)$ 510$ 734,817$ 15,270$ Schedule of Noncash Capital and Related Financing Activities Capital assets donated -$ 40,340$ -$ -$ 40,340$ -$ Amortization of bond premium 1,485 - - - 1,485 - Business-type Activities - Enterprise Funds For the Year Ended December 31, 2019 City of Orono, Minnesota Statement of Cash Flows (Continued) Proprietary Funds The notes to the financial statements are an integral part of this statement. Other postemployment benefits payableOther postemployment benefits payable 5,942 21,786 23,138 - Deferred pension resourcesDeferred pension resources (3,754)(21,223)5,818 1,1001,100 Net Cash Provided (Used) byNet Cash Provided (Used) by 143,618143,618$ $ 600,109600,109$ $ (9,420)(9,420)$ $ 510510$ $ $ $ --$ $ 40,34040,340$ -$ --$ $ $ Amortization of bond premiumAmortization of bond premium 1,4851,485 ---- 57 58 City of Orono, Minnesota Notes to the Financial Statements December 31, 2019 Note 1: Summary of Significant Accounting Policies A. Reporting Entity The City of Orono (the City) operates under the State of Minnesota Statutory Plan A form of government. Under this plan, the City Council, composed of an elected mayor and four elected trustees or council members, exercises legislative authority and determines all matters of policy. The City Administrator, appointed by the City Council, is responsible for the proper administering of all affairs relating to the City. The City has considered all potential units for which it is financially accountable, and other organizations for which the nature and significance of their relationship with the City are such that exclusion would cause the City’s financial statements to be misleading or incomplete. The City includes all funds, organizations, institutions, agencies, departments, and offices that are not legally separate from such. Component units are legally separate organizations for which the elected officials of the City are financially accountable and are included within the basic financial statements of the City because of their operational or financial relationships with the City. The Governmental Accounting Standards Board (GASB) has set forth criteria to be considered in determining financial accountability. These criteria include appointing a voting majority of an organization’s governing body, and (1) the ability of the primary government to impose its will on that organization or (2) the potential for the organization to provide specific benefits to, or impose specific financial burdens on the primary government. Included in the City’s reporting entity, based upon the application of these criteria, is the following blended component unit. Blended Component Unit The Orono Housing and Redevelopment Authority (Orono HRA) is a legally separate organization created in accordance with Minnesota Statute § 469.003. Its purpose is to clear and redevelop blighted areas within the City and to provide adequate housing for low and moderate income residents. The Orono HRA is fiscally dependent upon the City, and its governing board consists of the City’s mayor and council members. Therefore, the Orono HRA has been reported as a blended component unit of the City, with its funds reported as though they are funds of the City. The financial activity at this time is limited to debt payments within the Orono HRA debt service funds, namely the public facilities and project revenue bonds. 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.Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Amounts reported as program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds and proprietary funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. Component UnitComponent Unit The Orono Housing and RedevelopThe Orono Housing and Redevelopment ment Authority (Orono HRA) is a legally separateAuthority (Orono HRA) is a legally separate organization created in accordanceorganization created in accordance with Minnesota Statute § 469.003. Its purpose is towith Minnesota Statute § 469.003. Its purpose is to clear and redevelop blighted areas within the City and to provide clear and redevelop blighted areas within the City and to provide low and moderate income residents. Thelow and moderate income residents. The Orono HRA is fiscally dependent upon the City,Orono HRA is fiscally dependent upon the City, governing board consists of the City’s mayor and council members. Therefore,governing board consists of the City’s mayor and council members. Therefore,the Orono HRA has been reported as a the Orono HRA has been reported as a blended component unit of the City, with itsblended component unit of the City, with its funds reported as though they are funds ofunds reported as though they are funds of the City. The financial activity at f the City. The financial activity at limited to debt payments within the Orono HRA debt service funds, namely the publiclimited to debt payments within the Orono HRA debt service funds, namely the public facilities and project nd Fund Financial Statementsnd Fund Financial Statements 59 City of Orono, Minnesota Notes to the Financial Statements December 31, 2019 Note 1: Summary of Significant Accounting Policies (Continued) C. Measurement Focus, Basis of Accounting and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current 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, pensions, and claims and judgments, are recorded only when payment is due. Property taxes, franchise taxes, licenses 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 City. Revenue resulting from exchange transactions, in which each party gives and receives essentially equal value, is recorded on the accrual basis when the exchange takes place. On a modified accrual basis, revenue is recorded in the year in which the resources are measurable and become available. Non-exchange transactions, in which the City receives value without directly giving equal value in return, include property taxes, grants, entitlement and donations. On an accrual basis, revenue from property taxes is recognized in the year for which the tax is levied. Revenue from grants, entitlements and donations is recognized in the year in which all eligibility requirements have been satisfied. Eligibility requirements include timing requirements, which specify the year when the resources are required to be used or the year when use is first permitted, matching requirements, in which the City must provide local resources to be used for a specified purpose, and expenditure requirements, in which the resources are provided to the City on a reimbursement basis. On a modified accrual basis, revenue from non-exchange transactions must also be available before it can be recognized. Unearned revenue arises when assets are recognized before revenue recognition criteria have been satisfied. Grants and entitlements received before eligibility requirements are met are also recorded as unearned revenue. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. current period. All other revenue items are considered to be measurable and available only when cash is received by the current period. All other revenue items are considered to be measurable and available only when cash is received by the Revenue resulting from exchange transactions, in which each party gives and receives essentially equal value, is Revenue resulting from exchange transactions, in which each party gives and receives essentially equal value, is recorded on the accrual basis when the exchangerecorded on the accrual basis when the exchange takes place. On a modified accrual basis, revenue is recorded in the takes place. On a modified accrual basis, revenue is recorded in the year in which the resources are measurable and become available. year in which the resources are measurable and become available. exchange transactions, in which the City receives value without directly giving equal value in return, include propexchange transactions, in which the City receives value without directly giving equal value in return, include prop taxes, grants, entitlement and donations. On an accrual basis, revenue from property taxes is recognized in the year for taxes, grants, entitlement and donations. On an accrual basis, revenue from property taxes is recognized in the year for which the tax is levied. Revenue from grants, entitlements and donations is recognized in the year in which all eligibility which the tax is levied. Revenue from grants, entitlements and donations is recognized in the year in which all eligibility ements have been satisfied. Eligibility requirements include timing requirements, which specify the year when the ements have been satisfied. Eligibility requirements include timing requirements, which specify the year when the 60 City of Orono, Minnesota Notes to the Financial Statements December 31, 2019 Note 1: Summary of Significant Accounting Policies (Continued) The City 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 Municipal State Aid Street fund is used to collect and spend resources on the various projects related to state aid streets and highways. The Pavement Management Plan fund is used to collect and spend resources on the various road construction projects of the City. The City reports the following major proprietary funds: The Water fund and the Sewer fund account for activities related to the operation of a water distribution system and a sanitary sewer distribution system, respectively. The Sewer Fund is used to account for the provision of water services to the residents of the City who have sanitary sewer service available. The Storm Water Fund is used to account for the charges for and the costs of maintaining the City’s storm water system. The City’s proprietary funds also include the following: Internal service funds account for insurance, compensated absences, fleet management, and IT services provided to other departments or agencies of the City. These funds are used to account for the insurance costs incurred by the City for general liability, property, vehicle, workers’ compensation, and other insurance and deductibles, the accrual of sick and vacation days that are earned by the City’s employees, repairs and maintenance costs of the City’s vehicles, and IT services provided to various City functions. These funds are reimbursed through charges to the various participating departments of the City. As a general rule the effect of interfund activity has been eliminated from government-wide financial statements. Exceptions to this general rule are payments in-lieu of taxes, payments where the amounts are reasonably equivalent in value to the interfund services provided and other charges between the City’s water and sewer function and various other functions of the City. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the enterprise funds and of the City’s internal service funds are charges to customers for sales and services. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. Storm Water FundStorm Water Fund is used to account for the charges for and the costsis used to account for the charges for and the costs of maintaining the City’s storm water of maintaining the City’s storm water proprietary funds also include the following:proprietary funds also include the following: account for account for insurance, compensated absences, fleet management, and ITinsurance, compensated absences, fleet management, and IT other departments or agencies of the Cityother departments or agencies of the City. . These funds are used to account for the insuranceThese funds are used to account for the insurance co City for general liability, property, vehicle, workers’City for general liability, property, vehicle, workers’compensation, and other insurance and deductibles, the accrual of compensation, and other insurance and deductibles, the accrual of days that are earned by the City’s employees, repairs and maintenance costs of thedays that are earned by the City’s employees, repairs and maintenance costs of the and IT services provided to various City functions. These funds areand IT services provided to various City functions. These funds are reimbursed through charges to the various reimbursed through charges to the various participating departments of the City.participating departments of the City. 61 City of Orono, Minnesota Notes to the Financial Statements December 31, 2019 Note 1: Summary of Significant Accounting Policies (Continued) D. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Net Position/Fund Balance Deposits and Investments Cash balances from all funds are combined and invested to the extent available in short term investments. Earnings from the pooled investments are allocated to the individual funds based on the average monthly cash and investment balances of the respective funds.The City’s cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments. The proprietary funds’ portion in the government-wide cash and temporary investments pool is considered to be cash and cash equivalents for purposes of the Statement of Cash Flows. Cash balances from all funds are pooled and invested, to the extent available, in certificates of deposit and other authorized investments. Earnings from such investments are allocated on the basis of applicable participation by each of the funds. The City may also invest idle funds as authorized by Minnesota statutes, as follows: 1. Direct obligations or obligations guaranteed by the United States or its agencies. 2. Shares of investment companies registered under the Federal Investment Company Act of 1940 and received the highest credit rating, rated in one of the two highest rating categories by a statistical rating agency, and have a final maturity of thirteen months or less. 3. General obligations of a state or local government with taxing powers rated “A” or better; revenue obligations rated “AA” or better. 4. General obligations of the Minnesota Housing Finance Agency rated “A” or better. 5.Obligation of a school district with an original maturity not exceeding 13 months and (i) rated in the highest category by a national bond rating service or (ii) enrolled in the credit enhancement program pursuant to statute section 126C.55. 6. Bankers’ acceptances of United States banks eligible for purchase by the Federal Reserve System. 7. Commercial paper issued by United States banks corporations or their Canadian subsidiaries, of highest quality category by at least two nationally recognized rating agencies, and maturing in 270 days or less. 8. Repurchase or reverse repurchase agreements and securities lending agreements with financial institutions qualified as a “depository” by the government entity, with banks that are members of the Federal Reserve System with capitalization exceeding $10,000,000, a primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York, or certain Minnesota securities broker-dealers. 9. Guaranteed Investment Contracts (GIC’s) issued or guaranteed by a United States commercial bank, a domestic branch of a foreign bank, a United States insurance company, or its Canadian subsidiary, whose similar debt obligations were rated in one of the top two rating categories by a nationally recognized rating agency. 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. of investment companies registered under the Federal Investment Company Act of 1940 and received the of investment companies registered under the Federal Investment Company Act of 1940 and received the credit rating, rated in one of the two highest rating categories by a statistical rating agency, and have a credit rating, rated in one of the two highest rating categories by a statistical rating agency, and have a final maturity of thirteen months or less.final maturity of thirteen months or less. obligations of a state or local government with taxing powers rated “A” or better; revenue obobligations of a state or local government with taxing powers rated “A” or better; revenue ob rated “AA” or better.rated “AA” or better. General obligations of the Minnesota Housing Finance Agency rated “A” or better.General obligations of the Minnesota Housing Finance Agency rated “A” or better. Obligation of a school district with an original maturity not exceeding 13 months and (i) rated in the highest Obligation of a school district with an original maturity not exceeding 13 months and (i) rated in the highest ional bond raional bond rating service or (ii) enrolled in the credit enhancement program pursuant to statute g service or (ii) enrolled in the credit enhancement program pursuant to statute 62 City of Orono, Minnesota Notes to the Financial Statements December 31, 2019 Note 1: Summary of Significant Accounting Policies (Continued) The City has the following recurring fair value measurements as of December 31, 2019: Negotiable certificates of deposits and municipal bonds of $10,611,614 are valued using a matrix pricing model (Level 2 inputs) Property Taxes Property taxes are submitted to the County Auditor by December of each year, to be levied on January 1 on property values assessed as of the same date. The tax levy notice is mailed in March with the first half payment due on May 15 and the second half payment due on October 15. Unpaid taxes at December 31 become liens on the respective property and are classified in the fund financial statements as delinquent taxes receivable. Delinquent taxes receivable include the past six years' uncollected taxes. Delinquent taxes have been offset by a deferred inflow of resources for taxes not received within 60 days after year end in the governmental fund financial statements. Accounts Receivable All miscellaneous accounts receivable are shown at net of an allowance for doubtful accounts. Accounts receivable include amounts billed for services, such as water, sewer, storm water and nuisance charges, provided before year end. Unbilled utility enterprise fund receivables are also included for services provided in 2019. The City annually certifies delinquent water, sewer, storm water and nuisance accounts to the County for collection in the following year. Therefore, there has been no allowance for doubtful accounts established. All trade (utility) and property tax receivables are shown at gross amount, since both taxes and trade (utility) receivables are assessable to the property taxes and are collectible upon the sale of the assessed property. Due From Other Governments The amounts due from other government primarily include amounts for project cost in which the City is receiving grants to support the projects. Special Assessments Special assessments represent the financing for public improvements paid for by benefiting property owners. These assessments are recorded as receivables upon certification to the County. Special assessments are recognized as revenue when they are received in cash or within 60 days after year end. All governmental special assessments receivable are offset by a deferred inflow of resources in the fund financial statements. At December 31, 2019, the total delinquent special assessment receivable balance is $18,275. Interfund Receivables and Payables Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as “due to/from other funds.” Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.” All miscellaneous accounts receivable are shown at net of an allowance for doubtfulAll miscellaneous accounts receivable are shown at net of an allowance for doubtful a accountsccounts.Accounts receivable include amounts billed for services, such as water, sewer, storm water and nuisance charges, provided before year end. include amounts billed for services, such as water, sewer, storm water and nuisance charges, provided before year end. ty enterprise fund receivables are also included for services provided in ty enterprise fund receivables are also included for services provided in 20192019. The City annu. The City annu storm waterstorm water and nuisanceand nuisance accounts to the County for collection in the following year. Therefore, accounts to the County for collection in the following year. Therefore, ere has been no allowance for doubtful accounts established.ere has been no allowance for doubtful accounts established. All trade (utility) and property tax receivables are shown at gross amount, since both taxes and trade (utility) receivAll trade (utility) and property tax receivables are shown at gross amount, since both taxes and trade (utility) receiv are assessable to the property taxes and are collectible upon the sale of the assessed property.are assessable to the property taxes and are collectible upon the sale of the assessed property. Due From Other GovernmentsDue From Other Governments 63 City of Orono, Minnesota Notes to the Financial Statements December 31, 2019 Note 1: Summary of Significant Accounting Policies (Continued) Inventories and Prepaid Items All inventories are valued at cost using the first in/first out (FIFO) method. Inventories of governmental funds are recorded as expenditures when consumed rather than when purchased. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. Prepaid items are reported using the consumption method and recorded as expenditures/expenses at the time of consumption. Capital Assets Capital assets, which include property, buildings, improvements, equipment, and infrastructure assets are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Such assets are capitalized at historical cost, or estimated historical cost for assets where actual historical cost is not available. Donated assets are recorded as capital assets at their acquisition value at the date of donation. The City defines capital assets as those with an initial, individual cost of $5,000 or more for government-wide and $5,000 for proprietary funds with an estimated useful life in excess of one year. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. As allowed by accounting principles generally accepted in the United States of America, the City has elected not to retroactively capitalize the infrastructure of its governmental activities acquired prior to January 1, 2004. Capital assets are recorded in the government-wide and proprietary fund financial statements, but are not reported in the governmental fund financial statements. Interest incurred during the construction phase of capital assets for business-type activities is included as part of the capitalized value of the assets constructed. Capital assets are depreciated using the straight-line method over their estimated useful lives. Land and construction in progress are not depreciated. Property, plant and equipment of the City is depreciated using the straight line method over the following estimated useful lives: Useful Life Assets in Years Infrastructure 20 - 50 Buildings and Systems 15 - 50 Improvements Other Than Buildings 20 - 50 Machinery and Equipment 5 - 10 Deferred Outflows of Resources In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, 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 then. The City has two items which qualify for reporting in this category. Accordingly, the items, deferred pension resources and deferred other postemployment benefit resources, are reported only in the statement of net position. These items result from actuarial calculations and current year pension contributions and OPEB contributions made subsequent to the measurement dates. The City has two items which qualify for reporting in this category. Accordingly, the items, deferred pension resources and deferred other postemployment benefit resources, are reported only in the statement of net position. These items result from actuarial calculations and current year pension contributions and OPEB contributions made subsequent to the measurement dates. activities acquired prior to January 1, 2004.activities acquired prior to January 1, 2004. assets are recorded in the governmentassets are recorded in the government-wide and proprietary fund financial statements, but are not reported in the statements, but are not reported in the governmental fund financial statements.governmental fund financial statements.InterestInterest incurred during the construction phase of capital assets for businessincurred during the construction phase of capital assets for business uded as part of the capitalized value of the assets constructed. Capital assets areuded as part of the capitalized value of the assets constructed. Capital assets are depreciated using the depreciated using the line method over their estimated useful lives. Land andline method over their estimated useful lives. Land and construction in progress are not depreciated.construction in progress are not depreciated. Property, plant and equipment of the City is depreciated using the straight line method over the following estimated useful Property, plant and equipment of the City is depreciated using the straight line method over the following estimated useful 64 City of Orono, Minnesota Notes to the Financial Statements December 31, 2019 Note 1: Summary of Significant Accounting Policies (Continued) Compensated Absences Certain City employees earn personal time off, vacation, compensation time, and sick leave at various rates based on longevity. These compensated absences are paid to an employee leaving in good standing, at their current rate of pay, with the exception of sick leave in which one-half is paid to the departing employee. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements. For the most part, the General fund is typically used to liquidate governmental compensated absences payable. Postemployment Benefits other than Pensions Under Minnesota statute 471.61, subdivision 2b, public employers must allow retirees and their dependents to continue coverage indefinitely in an employer-sponsored health care plan, under the following conditions: 1) Retirees must be receiving (or eligible to receive) an annuity from a Minnesota public pension plan, 2) Coverage must continue in a group plan until age 65, and retirees must pay no more than the group premium, and 3) Retirees are able to add dependent coverage during open enrollment period or qualifying life event prior to retirement. All premiums are funded on a pay-as- you-go basis. The liability was determined, in accordance with GASB Statement No. 75, at January 1, 2018. The General fund is typically used to liquidate governmental other postemployment benefits payable. 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. The recognition of bond premiums and discounts are amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as an expense in the period incurred. In accordance with federal regulations, the City’s general obligation tax exempt bonds follow the arbitrage requirements. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. Pensions For purposes of measuring the net pension liability, deferred outflows/inflows of resources, and pension expense, information about the fiduciary net position of the Public Employees Retirement Association (PERA) and additions to/deductions from PERA’s fiduciary net position have been determined on the same basis as they are reported by PERA except that PERA’s fiscal year end is June 30. For this purpose, plan contributions are recognized as of employer payroll paid dates and benefit payments and refunds are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. For the most part, the General fund is typically used to liquidate governmental pension liabilities. For purposes of measuring the net pension liability (asset), deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the defined benefit plan administered by Inver Grove Height’s Fire Relief Association and additions to and deductions from the plan’s fiduciary net position have been determined on the same basis as they are reported by the plan. Investments are reported at fair value. wide financial statements, and proprietary fund types in the fund financial statements, longwide financial statements, and proprietary fund types in the fund financial statements, long term obligations are reported as liabilities in the applicable governmental activities, businessterm obligations are reported as liabilities in the applicable governmental activities, business or proprietary fund type statement of net positior proprietary fund type statement of net position. on. The recognition of bond premiums and discounts are amortized over the The recognition of bond premiums and discounts are amortized over the life of the bonds using the straightlife of the bonds using the straight-line method. Bonds payable are reported net of the applicline method. Bonds payable are reported net of the applicable bond premium or able bond premium or Bond issuance costs are reported as an expense in the perBond issuance costs are reported as an expense in the per iod incurred. iod incurred. In accordance with federal rIn accordance with federal r the City’s general obligation tax exempt bonds follow the arbitrage requirements.the City’s general obligation tax exempt bonds follow the arbitrage requirements. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond ce costs, during the current period. The face amount of debt issued is reported as other financing sources. ce costs, during the current period. The face amount of debt issued is reported as other financing sources. 65 City of Orono, Minnesota Notes to the Financial Statements December 31, 2019 Note 1: Summary of Significant Accounting Policies (Continued) The City participates in various pension plans, total pension expense for the year ended December 31, 2019 is as follows: Total All GERF PEPFF Plans Pension Expense 185,356$ 991,921$ 1,177,277$ Association of Minnesota (PERA) Public Employees Retirement Deferred Inflows of Resources In addition to liabilities, the statement of net position and fund financial statements will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, 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 types of items, which arise only under a modified accrual basis of accounting that qualifies as needing to be reported in this category. Accordingly, one of the items, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from three sources: property taxes, special assessments and intergovernmental. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. Furthermore, the City has additional items which qualify for reporting in this category on the statement of net position. The items, deferred pension resources and deferred other postemployment benefit resources, are reported only in the statement of net position and results from actuarial calculations involving net differences between projected and actual earnings on plan investments and changes in proportions. Net Position Net position represents the difference between assets and deferred outflows of resources and liabilities and deferred inflows of resources. Net position is displayed in three components: a. Net investment in capital assets - Consists of capital assets, net of accumulated depreciation reduced by any outstanding debt attributable to acquire capital assets. a. Restricted net position - Consists of net position balances restricted when there are limitations imposed on their use through external restrictions imposed by creditors, grantors, laws or regulations of other governments. b. Unrestricted net position - All other net position balances that do not meet the definition of “restricted” or “net investment in capital assets”. When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources first, then unrestricted resources as they are needed. Furthermore, the City has additional items which qualify for reporting in this category on the statement of net Furthermore, the City has additional items which qualify for reporting in this category on the statement of net The items, deferred pension resources and deferred other postemployment benefit resources, are reported only in theThe items, deferred pension resources and deferred other postemployment benefit resources, are reported only in the statement of net position and results from actuarial calculations involving net differences between projected and actualstatement of net position and results from actuarial calculations involving net differences between projected and actual on plan investments and changes in proportions.on plan investments and changes in proportions. represents the difference between assetsrepresents the difference between assets and deferred outflows of resourcesand deferred outflows of resources and liabilitiesand liabilities inflows of resources. Net position is displayed in three components:inflows of resources. Net position is displayed in three components: 66 City of Orono, Minnesota Notes to the Financial Statements December 31, 2019 Note 1: Summary of Significant Accounting Policies (Continued) Fund Balance In the fund financial statements, fund balance is divided into five classifications based primarily on the extent to which the City is bound to observe constraints imposed upon the use of resources reported in the governmental funds. These classifications are defined as follows: Nonspendable - Amounts that cannot be spent because they are not in spendable form, such as prepaid items. Restricted - Amounts related to externally imposed constraints established by creditors, grantors or contributors; or constraints imposed by state statutory provisions. Committed - Amounts constrained for specific purposes that are internally imposed by formal action (resolution) of the City Council, which is the City’s highest level of decision-making authority. Committed amounts cannot be used for any other purpose unless the City Council modifies or rescinds the commitment by resolution. Assigned - These are amounts that are constrained by the City’s intent to be used for specific purposes but are neither restricted nor committed. Pursuant to the Fund Balance Policy approved by City Council, the City Administrator has been delegated the authority to assign and remove assignments of fund balance amounts for specific purposes. Unassigned - These are residual amounts in the General fund not reported in any other classification. The General fund is the only fund that can report a positive unassigned fund balance. Other funds would report a negative unassigned fund balance should the total of nonspendable, restricted and committed fund balances exceed the total net resources of that fund. The City considers restricted amounts to be spent first when both restricted and unrestricted fund balance is available. Additionally, the City would first use committed, then assigned, and lastly unassigned amounts of unrestricted fund balance when expenditures are made. The City formally adopted a fund balance policy for the General Fund. The policy establishes a year-end target unassigned fund balance of 45% of the fund’s annual operating budget. Unassigned fund balance in excess of 50% will be transferred to the Pavement Management Plan Fund pursuant to Council approval Note 2: Stewardship, Compliance and Accountability A. Budgetary Information Each fall, after holding a meeting to obtain public comments, the City Council legally adopts the General Fund and any major special revenue funds. These budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America. The City has established budgetary control at the department level. City management must request City Council approval before exceeding the budget at that level. City management may transfer appropriations within the department level without City Council approval. Appropriations lapse at year-end; however, the City Council may approve the carryover of specific amounts. Encumbrance accounting is not used. These are residual amounts in the General fund not reported in any other classification. The General These are residual amounts in the General fund not reported in any other classification. The General fund is the only fund that can report a positive unassigned fund balance. Other funds would report a negative fund is the only fund that can report a positive unassigned fund balance. Other funds would report a negative unassigned fund balance should the total of nonspendable, restricted and committed fund balances exceed the total unassigned fund balance should the total of nonspendable, restricted and committed fund balances exceed the total net resources of that fund.net resources of that fund. The City considers restricted amounts to be spent first when both restricted and unrestricted fund balance is available. The City considers restricted amounts to be spent first when both restricted and unrestricted fund balance is available. Additionally, the City would first use committed, then assigned, and lastly unassigned amountAdditionally, the City would first use committed, then assigned, and lastly unassigned amounts of unrestricted fund s of unrestricted fund balance when expenditures are made.balance when expenditures are made. The City formally adopted a fund balance policy for the General Fund. The policyThe City formally adopted a fund balance policy for the General Fund. The policy establishes a yearestablishes a year 67 City of Orono, Minnesota Notes to the Financial Statements December 31, 2019 Note 2: Stewardship, Compliance and Accountability B. Deficit Fund Equity The following fund had a fund equity deficit at December 31, 2019: Amount Major Pavement Management Plan 488,179$ Municipal State Aid Street 2,188,393 Fund The fund deficit is expected to be eliminated with future fund revenues or transfers from other funds. Note 3: Detailed Notes on All Funds A. Deposits and Investments Deposits Custodial credit risk for deposits and investments is the risk that in the event of a bank failure, the City’s deposits and investments may not be returned or the City will not be able to recover collateral securities in the possession of an outside party. In accordance with Minnesota statutes and as authorized by the City Council, the City maintains deposits at depository banks, all of which are members of the Federal Reserve System. Minnesota statutes require that all City deposits be protected by insurance, surety bond or collateral. The market value of collateral pledged must equal 110 percent of the deposits not covered by insurance or bonds, with the exception of irrevocable standby letters of credit issued by Federal Home Loan Banks as this type of collateral only requires collateral pledged equal to 100 percent of the deposits not covered by insurance or bonds. Authorized collateral in lieu of a corporate surety bond includes: United States government Treasury bills, Treasury notes, Treasury bonds; Issues of United States government agencies and instrumentalities as quoted by a recognized industry quotation service available to the government entity; General obligation securities of any state or local government with taxing powers which is rated “A” or better by a national bond rating service, or revenue obligation securities of any state or local government with taxing powers which is rated “AA” or better by a national bond rating service; General obligation securities of a local government with taxing powers may be pledged as collateral against funds deposited by that same local government entity; Irrevocable standby letters of credit issued by Federal Home Loan Banks to a municipality accompanied by written evidence that the bank’s public debt is rated “AA” or better by Moody’s Investors Service, Inc., or Standard & Poor’s Corporation; and Time deposits that are fully insured by any federal agency. Minnesota statutes require that all collateral shall be placed in safekeeping in a restricted account at a Federal Reserve Bank, or in an account at a trust department of a commercial bank or other financial institution that is not owned or controlled by the financial institution furnishing the collateral. The selection should be approved by the government entity. At year end, the City’s carrying amount of deposits was $209,217 and the bank balance was $544,392. Of the bank balance, $250,000 was covered by federal depository insurance. The remaining bank balance was covered by collateral held by the City’s agent in the City’s name. investments may not be returned or the City will not be able to recover collateral securities in the possession of an outsideinvestments may not be returned or the City will not be able to recover collateral securities in the possession of an outside accordance with Minnesota statutes and as authorized by the City Council, the City maintains deposits at accordance with Minnesota statutes and as authorized by the City Council, the City maintains deposits at depository banks, all of which are members of the Federal Reserve System.depository banks, all of which are members of the Federal Reserve System. Minnesota statutes require that all City deposits be protected by insurance, surety bond or collateral. The market value of Minnesota statutes require that all City deposits be protected by insurance, surety bond or collateral. The market value of collateral pledged must equal 110 percent of the deposits not covered by insurance or bonds, collateral pledged must equal 110 percent of the deposits not covered by insurance or bonds, withwith irrevocable standby letters of credit issued by Federal Home Loan Banks as this type of collateral only requires collateral irrevocable standby letters of credit issued by Federal Home Loan Banks as this type of collateral only requires collateral pledged equal to 100 percent of the deposits not covered by insurance or bonds.pledged equal to 100 percent of the deposits not covered by insurance or bonds. Authorized collateral in lieu of a corporate surety bond includes:Authorized collateral in lieu of a corporate surety bond includes: 68 City of Orono, Minnesota Notes to the Financial Statements December 31, 2019 Note 3: Detailed Notes on All Funds (Continued) Investments The Minnesota Municipal Money Market Fund (the 4M Fund) 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 and broker money market investment pools operate in accordance with appropriate State laws and regulations. The 4M Fund is an external investment pool not registered with the Securities and Exchange Commission (SEC); however, it follows the same regulatory rules of the SEC under rule 2a7. The reported value of the pool is the same as the fair value of the pool share. Financial statements of the 4M Fund can be obtained by contacting RBC Global Asset Management at 100 South Fifth Street, Suite 2300, Minneapolis, MN 55402-1240. At year end, the City’s investment balances were as follows: Credit Segmented Quality/ Time Ratings (1) Distribution (2) Amount Level 1 Level 2 Level 3 Pooled Investments at Amortized Costs Broker Money Market Funds N/A less than 6 months 1,470,577$ 4M fund N/A less than 6 months 2,305,072 Non-pooled Investments at Fair Value Negotiable Certificates of Deposits N/A less than 6 months 2,583,547 -$ 2,583,547$ -$ Negotiable Certificates of Deposits N/A 1 to 3 years 3,951,988 - 3,951,988 - Negotiable Certificates of Deposits N/A more than 3 years 2,727,685 - 2,727,685 - Municipal Bonds AAA more than 3 years 1,348,394 - 1,348,394 - Total Investments 14,387,263$ -$ 10,611,614$ -$ Types of Investments Fair Value Measurement Using (1) Ratings are provided by Standard & Poor’s where applicable to indicate associated credit risk. (2) Interest rate risk in disclosed using the segmented time distribution method. N/A Indicates not applicable or available. Ratings (1) Distribution (2)ings (1) Distribution (2)Amount Level 1 Level 2 Level 3Level 1 Level 2 Level 3 Pooled Investments at Amortized CostsPooled Investments at Amortized Costs Broker Money Market FundsBroker Money Market Funds N/AN/A less than 6 months 1,470,577$ N/A less than 6 monthsless than 6 months 2,305,0722,305,072 Non-pooled Investments at Fair ValueNon-pooled Investments at Fair Value iable Certificates of Depositsiable Certificates of Deposits N/A less than 6 monthsless than 6 months 2,583,5472,583,547 -$2,583,547$$ Negotiable Certificates of DepositsNegotiable Certificates of Deposits N/A 1 to 3 years1 to 3 years 3,951,9883,951,988 -3,951,988 Negotiable Certificates of DepositsNegotiable Certificates of Deposits N/A more than 3 yearsmore than 3 years 2,727,6852,727,685 -2,727,685 AAAAAA more than 3 yearsmore than 3 years 1,348,3941,348,394 -1,348,3941,348,394 69 City of Orono, Minnesota Notes to the Financial Statements December 31, 2019 Note 3: Detailed Notes on All Funds (Continued) The investments of the City are subject to the following risks: Interest Rate Risk is the risk that changes in interest rates will adversely affect the fair value of an investment. The City’s investment policy also provides a guideline that generally limits the duration of investments to a maturity of eight years, and twenty percent (20 percent) of the portfolio to a specific maturity. The City was not exposed to interest rate risks due to the fact that their investments are not exposed to highly sensitive changes in interest rates. Credit Risk. Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. Ratings are provided by various credit rating agencies and where applicable, indicate associated credit risk. Minnesota statutes and the City’s investment policy limit the City’s investments to the list on page 6 of the notes to the financial statements. In accordance with its investment policy, the City will minimize credit risk by limiting investments to the safest types of securities, pre-qualifying the financial institutions, broker/dealers, intermediaries, and advisers with which the City will do business, and diversifying the investment portfolio so that the impact of potential losses from any one type of security or from any one individual issuer will be minimized. The City’s investment policies do not allow investing in the following instruments: Reverse repurchase agreements Mortgage-backed securities, as defined in Minnesota Statute § 118A.04, Subd. 6 Future contracts Options Guaranteed investment contracts Concentration of Credit Risk. Concentration of credit risk is defined as positions of five percent (5 percent) or more in the securities of a single issuer. The City’s investment policies provide a guideline of limiting investments to 35% of a specific type. As of December 31, 2019, the following issuer exceeded 5 percent of the City’s total investments:MN Municipal Money Markets (4M)(16.02 percent). Custodial Credit Risk- Deposits. In the case of deposits, this is the risk that in the event of a bank failure, the City's deposits may not be returned to it. Minnesota statutes and the City's investment policy states that in order to provide a level of security for all funds, the collateralization level will be 110 percent of market value not covered by insurance. The City’s investment policies further limit depositories to those located in the state of Minnesota, and must have a minimum capital and surplus of $10,000,000 and a net worth to asset ratio minimum of 5 percent, except for the City’s main checking account at the First National Bank of the Lakes, Navarre. As of December 31, 2019, all of the City's bank balance was covered by federal depository insurance or by perfected collateral held by the City's agent in the City's name. Custodial Credit Risk - Investments. For an investment, this is the risk that, in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in possession of an outside party. As of December 31, 2019, all securities were held by the City or its agent in the City's name. The City typically limits its exposure by purchasing insured or registered investments, or by the control of who holds the securities. City investment policies require that security/broker/dealers be restricted to those regulated by the Securities and Exchange Commission, have a minimum capital of $40,000,000 and may include “primary” dealers or regional dealers, and are located in Minnesota. The City limits the amount of investments with a specific dealer to 30 percent of the investment portfolio. -b-backed secacked securities,urities, as defined in Minnesota Statute § 118A.04,§ 118A.04, S Subd.ubd.6 ture contractsture contracts aranteedaranteed investmentinvestment contractsontracts C Creditredit R Rreditreditiskisk.. C Concentration ofoncentration of concentration of redit riskisk i iss def defiinedned asas positionsitions of f of ive percentive percent 70 City of Orono, Minnesota Notes to the Financial Statements December 31, 2019 Note 3: Detailed Notes on All Funds (Continued) A reconciliation of cash and temporary investments as shown on the statement of net position for the City follows: Carrying Amount of Deposits 209,217$ Investments 14,387,263 Total 14,596,480$ B. Capital Assets Capital asset activity for the year ended December 31, 2019 was as follows: Beginning Ending Balance Increases Decreases Balance Governmental Activities Capital Assets not Being Depreciated Land 7,337,435$ -$ -$ 7,337,435$ Construction in progress 3,946,328 2,034,056 (3,856,264) 2,124,120 Total Capital Assets not Being Depreciated 11,283,763 2,034,056 (3,856,264) 9,461,555 Capital Assets Being Depreciated Infrastructure 10,362,353 3,867,698 - 14,230,051 Buildings and systems 9,160,345 27,560 - 9,187,905 Improvements other than buildings 2,633,048 - - 2,633,048 Machinery and equipment 4,643,003 341,421 (80,742) 4,903,682 Total Capital Assets Being Depreciated 26,798,749 4,236,679 (80,742) 30,954,686 Less Accumulated Depreciation for Infrastructure (1,375,480) (259,173) -(1,634,653) Buildings and systems (2,791,126) (186,952) -(2,978,078) Improvements other than buildings (1,158,407) (83,864) -(1,242,271) Machinery and equipment (2,556,312) (331,172) 80,742 (2,806,742) Total Accumulated Depreciation (7,881,325) (861,161) 80,742 (8,661,744) Depreciated, Net 18,917,424 3,375,518 - 22,292,942 Governmental Activities Capital Assets, Net 30,201,187$ 5,409,574$ (3,856,264)$ 31,754,497$ Total Capital Assets Being 11,283,763 2,034,056 (3,856,264)(3,856,264) Capital Assets Being DepreciatedCapital Assets Being Depreciated 10,362,35310,362,353 3,867,6983,867,698 9,160,3459,160,345 27,56027,560 Improvements other than buildingsImprovements other than buildings 2,633,0482,633,048 - Machinery and equipmentMachinery and equipment 4,643,0034,643,003 341,421341,421 (80,742)(80,742) 26,798,74926,798,749 4,236,6794,236,679 (80,742)(80,742) 71 City of Orono, Minnesota Notes to the Financial Statements December 31, 2019 Note 3: Detailed Notes on All Funds (Continued) Depreciation expense was charged to functions of the governmental activities as follows: Governmental Activities General Government 199,507$ Public Safety 212,062 Public Works 381,025 Culture and Recreation 68,567 Total Depreciation Expense - Governmental Activities 861,161$ Beginning Ending Balance Increases Decreases Balance Business-type Activities Capital Assets not Being Depreciated Land 79,706$ -$ -$ 79,706$ Construction in progress 1,127,199 1,045,475 (1,272,696) 899,978 Total Capital Assets not Being Depreciated 1,206,905 1,045,475 (1,272,696) 979,684 Capital Assets Being Depreciated Buildings and systems 1,605,211 98,600 - 1,703,811 Land Improvements 13,511 - - 13,511 Machinery and equipment 963,292 - - 963,292 Distribution/collection system 25,739,802 1,363,208 - 27,103,010 Total Capital Assets Being Depreciated 28,321,816 1,461,808 - 29,783,624 Less Accumulated Depreciation for Buildings and systems (491,826) (64,509) -(556,335) Land Improvements (5,875) (253) -(6,128) Machinery and equipment (530,025) (43,662) -(573,687) Distribution/collection system (9,602,944) (459,551) -(10,062,495) Total Accumulated Depreciation (10,630,670) (567,975) -(11,198,645) Total Capital Assets Being Depreciated, Net 17,691,146 893,833 - 18,584,979 Business-type Activities Capital Assets, Net 18,898,051$ 1,939,308$ (1,272,696)$ 19,564,663$ Depreciation expense was charged to programs of the business-type activities as follows: Water 187,360$ Sewer 326,490 Golf Course 46,257 Cable 7,868 Total Depreciation Expense - Business-type Activities 567,975$ 1,206,905 1,045,475 (1,272,696) Capital Assets Being DepreciatedCapital Assets Being Depreciated 1,605,2111,605,211 98,60098,600 13,51113,511 -- Machinery and equipmentMachinery and equipment 963,292963,292 -- Distribution/collection systemDistribution/collection system 25,739,80225,739,802 1,363,2081,363,208 28,321,81628,321,816 1,461,8081,461,808 72 City of Orono, Minnesota Notes to the Financial Statements December 31, 2019 Note 3: Detailed Notes on All Funds (Continued) C. Construction Commitments The City has the following construction commitments at December 31, 2019 as follows: Spent Remaining to Date Commitment 2019 Street Improvements 1,054,997$ 146,242$ Baderwood Park Improvement 247,487 75,295 2019 Sewer CIPP 19-013 99,840 107,430 Project D. Interfund Receivables, Payables and Transfers The composition of interfund balances at December 31, 2019 is as follows: Purpose Amount General Fund Pavement Management Plan To provide cash flows 139,504$ General Fund Municipal State Aid Street To provide cash flows 2,536,494 Total 2,675,998$ Payable FundReceivable Fund The City made transfers during the fiscal year 2019 as shown and described below: Pavement Municipal Management State Aid Nonmajor Plan Street Governmental Water Total Transfer Out General 717,000$ -$ 400,000$ 4,339$ 1,121,339$ Pavement Management Plan - 239,917 - - 239,917 Nonmajor Governmental - - 156,357 - 156,357 Water - - 55,000 - 55,000 Sewer - - 110,000 - 110,000 Total 717,000$ 239,917$ 721,357$ 4,339$ 1,682,613$ Transfer In The General fund transferred $717,000 to the Pavement Management Plan to transfer excess funds over the City’s fund balance policy. The Pavement Management Plan transferred $239,917 to the Municipal State Aid Street fund to finance capital improvement projects. The General fund and other Nonmajor Governmental funds transferred $400,000 and $156,357, respectively, to the Nonmajor Governmental funds for future capital purchases and to close debt service funds. The Water and Sewer funds transferred $55,000 and $110,000, respectively, to the Nonmajor Governmental funds for future debt service and capital funding. General Fund Municipal State Aid Street To provide cash flowsGeneral Fund Municipal State Aid Street To provide cash flows The City made transfers during the fiscal year 2019 as shown and described below:The City made transfers during the fiscal year 2019 as shown and described below: Pavement MunicipalPavement Municipal ManagementManagement State AidState Aid NonmajorNonmajor Transfer InTransfer In 73 City of Orono, Minnesota Notes to the Financial Statements December 31, 2019 Note 3: Detailed Notes on All Funds (Continued) E. Long-term Debt General Obligation Improvement (G.O.) Bonds The bonds were issued to finance various improvements and will be repaid from taxes, special assessments and pledged revenues. Authorized Issue Maturity Balance at and Issued Date Date Year End Governmental Activites G.O. Improvement Bonds, Series 2010A 4,315,000$ 3.00 - 3.75 % 12/30/10 ###### 1,640,000$ G.O. Improvement Bonds, Series 2014A 5,275,000 2.00 - 3.00 06/19/14 ###### 2,465,000 Street Reconstruction Refunding Bonds, Series 2016 3,505,000 2.00 - 3.00 12/11/17 ###### 2,005,000 Total G.O. Inmprovement Bonds 6,110,000$ Business Activites G.O. Improvement Bonds, Series 2014A 5,275,000 2.00 - 3.00 06/19/14 ###### 885,000$ Interest RateDescription Annual debt service requirements to maturity for G.O. improvement bonds are as follows: Year Ending December 31, Principal Interest Total 2020 925,000$ 145,113$1,070,113$ 2021 945,000 124,238 1,069,238 2022 960,000 102,822 1,062,822 2023 990,000 78,394 1,068,394 2024 480,000 61,138 541,138 2025 - 2029 1,810,000 112,256 1,922,256 Total 6,110,000$ 623,961$ 6,733,961$ Governmental Activities Year Ending December 31, Principal Interest Total 2020 80,000$ 20,431$100,431$ 2021 80,000 18,831 98,831 2022 85,000 17,181 102,181 2023 85,000 15,428 100,428 2024 85,000 13,569 98,569 2025 - 2029 470,000 33,619 503,619 Total 885,000$ 119,059$ 1,004,059$ Business-type Activities G.O. Improvement Bonds, Series 2014AG.O. Improvement Bonds, Series 2014A 5,275,000 2.00 - 3.00 06/19/14 ###### 885,00006/19/14 ###### 885,000 Annual debt service requirements to maturity for G.O. Annual debt service requirements to maturity for G.O. improvement improvement bonds are as follows:bonds are as follows: Principal InterestPrincipal Interest 925,000925,000$$145,113145,113$ 945,000 124,238124,238 Governmental ActivitiesGovernmental Activities 74 City of Orono, Minnesota Notes to the Financial Statements December 31, 2019 Note 3: Detailed Notes on All Funds (Continued) Changes in Long-term Liabilities Long-term liability activity for the year ended December 31, 2019 was as follows: Beginning Ending Due Within Balance Increases Decreases Balance One Year Governmental Activities Bonds Payable G.O. improvement bonds 7,000,000$ -$ (890,000)$ 6,110,000$ 925,000$ Bond premium 169,801 - (25,950) 143,851 25,951 Total Bonds Payable 7,169,801 - (915,950) 6,253,851 950,951 Compensated Absences Payable 538,319 507,719 (500,178) 545,860 507,719 Governmental Activity Long-term Liabilities 7,708,120$ 507,719$ (1,416,128)$ 6,799,711$ 1,458,670$ Business-type Activities Bonds Payable G.O. improvement bonds 965,000$ -$ (80,000)$ 885,000$ 80,000$ Bond premium 15,586 - (1,485) 14,101 1,485 Total Bonds Payable 980,586 - (81,485) 899,101 81,485 Compensated Absences Payable 38,995 58,823 (34,577) 63,241 58,823 Business-type Activity Long-term Liabilities 1,019,581$ 58,823$ (116,062)$ 962,342$ 140,308$ G.O. improvement bondsG.O. improvement bonds 965,000965,000$$-$(80,000)(80,000)$885,000$$ 15,58615,586 -(1,485)(1,485)14,101 Total Bonds PayableTotal Bonds Payable 980,586980,586 --(81,485)(81,485)899,101899,101 Compensated Absences PayableCompensated Absences Payable 38,99538,995 58,82358,823 (34,577)(34,577)63,24163,241 Business-type Activity Business-type Activity Long-term LiabilitiesLong-term Liabilities 1,019,5811,019,581$58,82358,823$(116,062)(116,062)$962,342$ 75 City of Orono, Minnesota Notes to the Financial Statements December 31, 2019 Note 3: Detailed Notes on All Funds (Continued) F. Components of Fund Balance Fund equity balances are classified below to reflect the limitations and restrictions of the respective funds. Pavement Municipal Management State Aid Other General Plan Street Governmental Total Nonspendable Prepaid items $ 115,663 $ - $ - $ - $ 115,663 Inventory 3,494 - - - 3,494 Total Nonspendable 119,157 - - - 119,157 Restricted for Debt service - - - 2,140,543 2,140,543 Parkland Acquisitions and Improvement - - - 293,800 293,800 Drug and Alcohol Law Enforcement - - - 555,241 555,241 Home Buyer Purchase Assistance - - - 137,506 137,506 Lurton Park Development and Maintenance - - - 15,014 15,014 Senior Housing - - - 91,378 91,378 Golf Course Improvements - - - 277 277 Big Island Improvements - - - 6,000 6,000 Other Improvements - - - 10,249 10,249 Total Restricted - - - 3,250,008 3,250,008 Committed to Park maintnence - - - 16,741 16,741 Assigned to Capital improvements - - - 2,721,806 2,721,806 Unassigned 4,288,536 (488,179) (2,188,393) - 1,611,964 Total 4,407,693$ (488,179)$ (2,188,393)$ 5,988,555$ 7,719,676$ - - - - - - Golf Course ImprovementsGolf Course Improvements - - - - - - - - - - - - - - - - - - - - - - - - 3,250,008 3,250,008 - - - - - - 76 City of Orono, Minnesota Notes to the Financial Statements December 31, 2019 Note 4: Defined Benefit Pension Plans - Statewide A. Plan Description The City 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. General Employees Retirement Plan (GERP) All full-time and certain part-time employees of the City are covered by the General Employees Retirement Plan (GERP). GERP members belong to the Coordinated Plan. Coordinated Plan members are covered by Social Security. Public Employees Police and Fire Plan (PEPFP) The PEPFP, 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 PEPFP also covers police officers and firefighters belonging to a local relief association that elected to merge with and transfer assets and administration to PERA. B. Benefits Provided PERA provides retirement, disability and death benefits. Benefit provisions are established by state statute and can only be modified by the state Legislature. 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. GERP Benefits GERP 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 service 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. Annuities, disability benefits and survivor benefits are increased effective every January 1. Beginning January 1, 2019, the postretirement increase will be 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 benefit for at least a full year as of the June 30 before the effective date of the increase will receive the full increase. For recipients receiving the annuity or benefit for at least one month but less than a full year as of the June 30 before the effective date of the increase will receive a reduced prorated increase. For members retiring on January 1, 2024, or later, the increase will be delayed until normal retirement age (age 65 if hired prior to July 1, 1989, or age 66 for individuals hired on or after July 1, 1989). Members retiring under Rule of 90 are exempt from the delay to normal retirement. PEPFP Benefits Benefits for the PEPFP 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 PEPFP 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 3.0 percent of average salary for each year of service. A full, unreduced pension is earned when members are age 55 and vested, or for members who were first hired prior to July 1, 1989, when age plus years of service equal at least 90. provides retirement, disability and death benefits. Benefit provisions are established by state statute and can only 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 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.them yet are bound by the provisions in effect at the time they last terminated their public service. GERP benefits are based on a member’s highest average salary for any five successive years of allowable service, age, GERP 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 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 Methodmembers. Members hired prior to July 1, 1989 receive the higher of Method 1 or Method 2 formulas. Only Method 2 is 1 or Method 2 formulas. Only Method 2 is 77 City of Orono, Minnesota Notes to the Financial Statements December 31, 2019 Note 4: Defined Benefit Pension Plans - Statewide (Continued) Annuities, disability benefits and survivor benefits are increased effective every January 1. Beginning January 1, 2019, the postretirement increase will be 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. General Employees Fund Contributions Coordinated Plan members were required to contribute 6.50 percent of their annual covered salary in fiscal year 2019 and the City was required to contribute 7.50 percent for Coordinated Plan members in fiscal year 2019. The City’s contributions to the General Employees Fund for the year ending December 31, 2019, 2018 and 2017 were $144,815, $129,021 and $122,479, respectively.The City’s contributions were equal to the required contributions for each year as set by state statute. Police and Fire Fund Contributions Police and Fire member’s contribution rates increased from 10.80 percent of pay to 11.30 percent and employer rates increased from 16.20 percent to 16.95 percent on January 1, 2019. The City’s contributions to the Police and Fire Fund for the years ending December 31, 2019, 2018 and 2017 were $411,298, $370,490 and $358,655, respectively. The City’s contributions were equal to the required contributions for each year as set by state statute. D. Pension Costs General Employees Fund Pension Costs At December 31, 2019, the City reported a liability of $1,476,182 for its proportionate share of the General Employees Fund’s net pension liability. The City’s net pension liability reflected a reduction due to the State of Minnesota’s contribution of $16 million to the fund in 2019. The State of Minnesota is considered a non-employer contributing entity and the State’s contribution meets the definition of a special funding situation. The State of Minnesota’s proportionate share of the net pension liability associated with the City totaled $45,831. The net pension liability was measured as of June 30, 2019, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City’s proportionate share of the net pension liability was based on the City’s contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2018 through June 30, 2019 relative to the total employer contributions received from all of PERA’s participating employers. At June 30, 2019, the City’s proportionate share was 0.0267 percent which was an increase of 0.0011 from its proportion measured as of June 30, 2018. City's Proportionate Share of the Net Pension Liability 1,476,182$ State of Minnesota's Proportionate Share of the Net Pension Liability Associated with the City 45,831 Total 1,522,013$ For the year ended December 31, 2019, the City recognized pension expense of $181,924 for its proportionate share of the General Employees Plan’s pension expense. In addition, the City recognized an additional $3,432 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. ContributionsContributions Police and Fire member’s contribution rates increased from 10.80 percent of pay to 11.30 percent and employer rates Police and Fire member’s contribution rates increased from 10.80 percent of pay to 11.30 percent and employer rates increased from 16.20 percent to 16.95 percent on January 1, increased from 16.20 percent to 16.95 percent on January 1, 20192019..The The City’s contributions to the City’s contributions to the Po for the years ending December 31, for the years ending December 31, 2019,20182018 and 2017and 2017 were $411,298were $411,298,$370,490$370,490 and $358,655and $358,655, respecti, respecti ributions were equal to the required contributions for each year as set by ributions were equal to the required contributions for each year as set by state statute.statute. Pension CostsPension Costs 78 City of Orono, Minnesota Notes to the Financial Statements December 31, 2019 Note 4: Defined Benefit Pension Plans - Statewide (Continued) At December 31, 2019, the City reported its proportionate share of the General Employees Plan’s deferred outflows of resources and deferred inflows of resources, and its contributions subsequent to the measurement date, from the following sources: Deferred Deferred Outflows Inflows of Resources of Resources Differences Between Expected and Actual Economic Experience 41,167$ 10,292$ Changes in Actuarial Assumptions 4,593 116,811 Net Difference Between Projected and Actual Earnings on Plan Investments - 136,980 Changes in Proportion 57,779 7,622 Contributions to PERA Subsequent to the Measurement Date 72,537 - Total 176,076$ 271,705$ The $72,537 reported as deferred outflows of resources related to pensions resulting from the City’s contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2020. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: (65,267)$ (95,619) (9,660) 2,380 2020 2021 2022 2023 Police and Fire Fund Pension Costs At December 31, 2019, the City reported a liability of $2,402,804 for its proportionate share of the Police and Fire Fund’s net pension liability. The net pension liability was measured as of June 30, 2019, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City’s proportionate share of the net pension liability was based on the City’s contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2018 through June 30, 2019 relative to the total employer contributions received from all of PERA’s participating employers. At June 30, 2019, the City’s proportionate share was 0.2257 percent which was an increase of 0.0087 from its proportionate share measured as of June 30, 2018. For the year ended December 31, 2019, the City recognized pension expense of $961,451 for its proportionate share of PEPFF’s pension expense. The City also recognized $30,470 for the year ended December 31, 2019 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. Legislation passed in 2013 required the State of Minnesota to begin contributing $9 million to the Police and Fire Fund each year until the plan is 90 percent funded or until the State Patrol Plan (administered by the Minnesota State Retirement System) is 90 percent funded, whichever occurs later. In addition, the state will pay $4.5 million on October 1, 2018 and October 1, 2019 in direct state aid. Thereafter, by October 1 of each year, the state will pay $9 million until full funding is reached or July 1, 2048, whichever is earlier. 176,076$$ reported as deferred outflows of resources reported as deferred outflows of resources related to pensions resulting from the City’s contributions elated to pensions resulting from the City’s contributions subsequent to the measurement date will be recognized as a reduction of the net pensubsequent to the measurement date will be recognized as a reduction of the net pension liability in sion liability in Other amounts reported as deferred outflows and inflows of resources related to pensions will be Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows:recognized in pension expense as follows: 79 City of Orono, Minnesota Notes to the Financial Statements December 31, 2019 Note 4: Defined Benefit Pension Plans - Statewide (Continued) At December 31, 2019, the City reported its proportionate share of the Police and Fire Plan’s deferred outflows of resources and deferred inflows of resources, and its contributions subsequent to the measurement date, from the following sources: Deferred Deferred Outflows Inflows of Resources of Resources Differences Between Expected and Actual Economic Experience 117,887$ 406,704$ Changes in Actuarial Assumptions 2,192,325 2,757,309 Net Difference Between Projected and Actual Earnings on Plan Investments - 469,082 Changes in Proportion 1,204,979 100,454 Contributions to PEPFP Subsequent to the Measurement Date 213,635 - Total 3,728,826$ 3,733,549$ The $213,635 reported as deferred outflows of resources related to pensions resulting from the City’s contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2020. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: 981,029$ (347,922) (897,828) 23,784 2023 22,579 2020 2021 2021 2022 E. Actuarial Assumptions The total pension liability in the June 30, 2019 actuarial valuation was determined using the following actuarial assumptions: Inflation 2.50% per year Active Member Payroll Growth 3.25% per year Investment Rate of Return 7.50% Salary increases were based on a service-related table. Mortality rates for active members, retirees, survivors and disabilitants were based on RP-2014 tables for males or females, as appropriate, with slight adjustments to fit PERA’s experience. Cost of living benefit increases after retirement for retirees are assumed to be 1.25 percent per year for General Employees Plan and 1.0 percent per year for Police and Fire Plan. Actuarial assumptions used in the June 30, 2019 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 most recent four- year experience study for the Police and Fire Plan was completed in 2016. Economic assumptions were updated in 2018 based on a review of inflation and investment return assumptions. reported as deferredreported as deferred outflows of resources related to pensions resulting from the City’s contributions outflows of resources related to pensions resulting from the City’s contributions to the measurement date will be recognized as a reduction of the net pension liabilityto the measurement date will be recognized as a reduction of the net pension liability in in Other amounts reported as deferred outflows and inflows of resources related to pensions will be Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows:recognized in pension expense as follows: 80 City of Orono, Minnesota Notes to the Financial Statements December 31, 2019 Note 4: Defined Benefit Pension Plans - Statewide (Continued) The following changes in actuarial assumptions and plan provisions occurred in 2019: General Employees Fund Changes in Actuarial Assumptions The mortality projection scale was changed from MP-2017 to MP-2018. Changes in Plan Provisions The employer supplemental contribution was changed prospectively, decreasing from $31.0 million to $21.0 million per year. The State’s special funding contribution was changed prospectively, requiring $16.0 million due per year through 2031. Police and Fire Fund Changes in Actuarial Assumptions The mortality projection scale was changed from MP-2017 to MP-2018. Changes in Plan Provisions There have been no changes since the prior valuation. 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 35.5 % 5.10 % Private Markets 25.0 5.90 Fixed Income 20.0 0.75 International Equity 17.5 5.90 Cash Equivalents 2.0 - Total 100.00 % Target Expected Real Allocation Rate of Return Long-term F. Discount Rate The discount rate used to measure the total pension liability in 2019 was 7.50 percent. 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 position of the General Employees Fund and the Police and Fire Fund were projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Changes in Plan ProvisionsChanges in Plan Provisions There have been no changes since the prior valuation.There have been no changes since the prior valuation. The State Board of Investment, which manages the investments of PERA, prepares an analysis of the reasonablenessThe State Board of Investment, which manages the investments of PERA, prepares an analysis of the reasonableness --term expected rate of return using a buildingterm expected rate of return using a building--block method in which bestblock method in which best expected future rates of return are devexpected future rates of return are developed for each major asset class.ped for each major asset class.These ranges are combined to produce an These ranges are combined to produce an term rate of return by weighting the expected future rates of return by the targetterm rate of return by weighting the expected future rates of return by the target asset allocation asset allocation The target allocation and best estimates of The target allocation and best estimates of geometricgeometric real rates of return for each major asset class are real rates of return for each major asset class are summarized in the following table: 81 City of Orono, Minnesota Notes to the Financial Statements December 31, 2019 Note 4: Defined Benefit Pension Plans - Statewide (Continued) G. Pension Liability Sensitivity The following presents the City’s proportionate share of the net pension liability for all plans it participates in, calculated using the discount rate disclosed in the preceding paragraph, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate 1 percentage point lower or 1 percentage point higher than the current discount rate: 1 Percent 1 Percent Decrease (6.50%) Current (7.50%) Increase (8.50%) General Employees Fund 2,426,766$ 1,476,182$ 691,288$ Police and Fire Fund 5,252,084 2,402,804 46 City Proportionate Share of NPL H. Pension Plan Fiduciary Net Position Detailed information about each pension plan’s fiduciary net position is available in a separately-issued PERA financial report that includes financial statements and required supplementary information. That report may be obtained on the Internet at www.mnpera.org. Note : Postemployment Benefits Other Than Pensions A. Plan Description The City provides a single-employer defined benefit health care plan to eligible retirees and their spouses. The plan offers medical coverage and is administered by Health Partners, Inc.. It is the City’s policy for Council 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. The City does not issue a publicly available report. Inactive Plan Members or Beneficiaries Currently Receiving Benefit Payments 6 Active Plan Members 53 Total Plan Members 59 B. Funding Policy Retirees receiving benefits contribute 100 percent of their premium costs. Retirees and their spouses contribute to the health care plan at the same rate as City employees. This results in the retirees receiving an implicit rate subsidy. Contribution requirements are established by the City, based on the contract terms with HealthPartners, Inc. The required contributions are based on projected pay-as-you-go financing requirements. For the year ended December 31, 2019, the City’s average contribution rate was .5 percent of covered-employee payroll. For fiscal year 2019, the City contributed $36,813 to the plan. As of January 1, 2019, there were eight retirees receiving health benefits from the City’s health plan. era.org.era.org. PostemploymentPostemployment Benefitsenefits OtOther Than Pensions --empemployer dloyerefinedned benefitbenefit h health care plan toealth care plan to el eligible retireesigible retirees and theirnd their snd their pouses. a administereddministered by Health Partners,Health Partners, Inc.nc.. It. It isis the City’sity’s policyolicy fo for Crouncilouncil to periodically obtain requestsobtain requests f foror f f proroposalsoposals in ordern order t tn ordern order oo provide the mostprovide the most f favorable benefitsavorable benefits nd retirees.nd retirees. T The Cityhe City does does not issueue a publiclya publicly av available report.ailable report. 82 City of Orono, Minnesota Notes to the Financial Statements December 31, 2019 Note : Postemployment Benefits Other Than Pensions (Continued) C. Actuarial Methods and Assumptions The City’s total OPEB liability of $873,437 was measured as of January 1, 2019, and the total OPEB liability used to calculate the total OPEB liability was determined by an actuarial valuation as of January 1, 2018. Roll forward procedures were used to roll forward the total OPEB liability to the measurement date. The total OPEB liability in the January 1, 2019 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified: Discount Rate 4.09% Expected Long-Term Investment Return N/A 20-Year Municipal Bond Yield 3.30% Inflation Rate 2.50% Salary Increases 3.50% Medical Trend Rate 8.0% in 2019 grading to 5% over 10 years The discount rate used to measure the total OPEB liability was 4.09 percent as of January 1, 2019. Mortality rates were based on the RP-2014 White Collar Mortality Tables (de-trended to 2006) and then projected beyond the valuation date using scale MP-2017. The actuarial assumptions used in the January 1, 2018 valuation were based on input from a variety of published sources of historical and projected future financial data. Each assumption was reviewed for reasonableness with the source information as well as for consistency with the other economic assumptions. D. Changes in the Total OPEB Liability Total OPEB Liability (a) Balances at December 31, 2018 837,187$ Changes for the Year: Service cost 90,925 Interest 31,294 Changes in assumptions or other inputs (49,156) Benefit payments (36,813) Net Changes 36,250 Balances at December 31, 2019 873,437$ Since the prior measurement date, the following assumptions changed: The discount rate was changed from 3.44% to 4.09%. uarial assumptions useduarial assumptions used in the January 1, 2018 valuation were based on input from a variety of published sources in the January 1, 2018 valuation were based on input from a variety of published sources of historical and projected future financial data. Each assumption was reviewed for reasonableness with the source of historical and projected future financial data. Each assumption was reviewed for reasonableness with the source information as well as for consistency with the other economic assumptions.information as well as for consistency with the other economic assumptions. nges in the Total OPEB Liabilitynges in the Total OPEB Liability 83 City of Orono, Minnesota Notes to the Financial Statements December 31, 2019 Note : Postemployment Benefits Other Than Pensions (Continued) E. Sensitivity of the Total OPEB Liability The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were calculated using a discount rate that is 1-percentage point lower (3.09 percent) or 1-percentage-point higher (5.09 percent) than the current discount rate: 1 Percent 1 Percent Decrease (3.09%) Current (4.09%) Increase (5.09%) 950,001$ 873,437$ 802,357$ The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were calculated using a Healthcare Cost Trent Rate that is 1-percentage point lower (7.00 percent decreasing to 7.00 percent) or 1-percentage-point higher (9.00 percent increasing to 9.00 percent) than the current cost trend rate: Healthcare Cost 1 Percent Decrease Trend Rates 1 Percent Increase (7% Decreasing (8% Decreasing (9% Decreasing to 7%) to 8%) to 9%) 873,437$ 1,010,396$$ 758,844 Note : Other Information A. Risk Management The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; injuries to employees; and natural disasters. Workers compensation coverage is provided through a pooled self-insurance program through the League of Minnesota Cities Insurance Trust (LMCIT). The City pays an annual premium to the LMCIT. The City is subject to supplemental assessments if deemed necessary by the LMCIT. The LMCIT reinsures through Workers Compensation Reinsurance Association (WCRA) as required by law. For workers compensation, the City is not subject to a deductible. Property and casualty insurance is provided through a pooled self-insurance program through the LMCIT. The City pays an annual premium to the LMCIT. The City is subject to supplemental assessments if deemed necessary by the LMCIT. The LMCIT reinsures through commercial companies for claims in excess of various amounts. The City retains risk for the deductible portion of the insurance policies and for any exclusions from the insurance policies. These amounts are considered immaterial to the financial statements. The City continues to carry commercial insurance for all other risks of loss, including disability and employee health insurance. There were no significant reductions in insurance from the previous year or settlements in excess of insurance coverage for any of the past three fiscal years. The risk management activities of the City are accounted for by the Risk Management fund, an internal service fund, which charges its costs to user departments. The fund is designed to build up a reserve which will provide the City the opportunity to assume a greater share of its insurance risks and thereby reducing the cost to purchase insurance. to 8%) 873,437873,437$$ nformationnformation ty is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and ty is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and 84 City of Orono, Minnesota Notes to the Financial Statements December 31, 2019 Note : Other Information B. Contingencies Tax Increment Financing Districts The City’s tax increment districts are subject to review by the State of Minnesota Office of the State Auditor (OSA). Any disallowed claims or misuse of tax increments could become a liability of the applicable fund. Management has indicated that they are not aware of any instances of noncompliance which would have a material effect on the financial statements. The City has entered into “pay as you go” Tax Increment Financing notes within its TIF districts. These notes are payable only to the extent of the increment received. As a result, they are a commitment within the district but they have not met the criteria to be reported as a liability on the statement of net position. C. Flexible Benefit Plan The City offers a flexible benefit plan (the Plan). The Plan is a “cafeteria plan” under §125 of the Internal Revenue Code (IRC). All employees who meet the eligibility requirements may participate in the Plan. To be eligible, an employee must be at least 20 years of age and be regularly scheduled to work more than 20 hours per week. Eligible employees can elect to participate by contributing pre-tax dollars withheld from payroll checks to the Plan for healthcare and dependent care benefits. Payments are made from the Plan to participating employees upon submitting a request for reimbursement of eligible expenses actually incurred by the participant. All assets of the Plan are held and administered by an independent contract administrator for child care and medical expense reimbursements, and by the City for health insurance premiums. All activity of the Plan is included in the financial statements as part of the General Fund and enterprise funds as employee benefits. All property of the Plan and income attributable to that property is solely the property of the City, subject to the claims of the City’s general creditors. Participants’ rights under the Plan are equal to those of general creditors of the City in an amount equal to the eligible healthcare and dependent care expenses incurred by the participants. The City believes it is unlikely that it will use the assets to satisfy the claims of general creditors in the future. D. Conditional State Grant In 2005, as a part of the City’s acquisition of Big Island Park, the City was awarded a grant from the state of Minnesota in the amount of $2,000,000. The grant is repayable to the state if the property is not maintained for low-impact recreation and conservation use. E. Police Services Contracts As of December 31, 2019, the City of Orono had several contracts to provide police services to neighboring cities. The most significant of those was a contract with the city of Mound, which the City entered into as of January 1, 2013 and which extends 10 years to December 31, 2022. The contract also included annual payments from the city of Mound starting at $1,545,000 in 2013 and increasing between 1%-5% each year through the end of the contract. The City also has a contract with the cities of Minnetonka Beach and Spring Park to furnish law enforcement services to each respective city. The original contract term ended December 31, 2012 and includes the option to verbally extend it each year for an additional one-year period. The contract has been extended each year through 2020. pendentpendent care benefits.care benefits.Payments are made from the Plan to participating employeesparticipating employees eimbursementeimbursement ofof e eofofligiblligiblee expensesexpenses actually incurred by the participant. are helare heldd and administered byministered by a ann i independentndependent c contractontract administratorministrator f fministratororor c cororhild carhild car andand by the City f foror he heororalth insurance premiums.alth insurance premiums. A Allll activitytivity of of t t of of hehe PPllanan isis the Generalthe General Fund and enterpriseund and enterprise funds asas emp employee benefits.loyee benefits. andand i income attributablncome attributablee to thatto that propertyproperty i iss s solelyolely thehe propertyproperty of of t of he City,City, subject reditors.reditors. P Participants’articipants’ r rightsights underunder t tunderunderhe Plan arhe Plan aree equal to thosto those ofof ge geofofneral c creditorsreditors o the eligibleo the eligible hea healthcarlthcaree and dependentand dependent care expensescare expenses incurrincurreded by the participants.the participants. assetsassets t to satisfyo satisfy the claimshe claims o of general c creditorsreditors in the future.n the future. 85 86 REQUIRED SUPPLEMENTARY INFORMATION CITY OF ORONO, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2019 87 City of Orono, Minnesota Required Supplementary Information For the Year Ended December 31, 2019 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) 06/30/19 0.0267 % 1,476,182$ 45,831$ 1,522,013$ 1,823,839$ 83.5 % 80.2 % 06/30/18 0.0256 1,420,183 - 1,420,183 1,726,285 82.3 79.5 06/30/17 0.0254 1,621,519 - 1,621,519 1,639,281 98.9 75.9 06/30/16 0.0259 2,102,952 - 2,102,952 1,615,476 130.2 68.9 06/30/15 0.0265 1,373,368 - 1,373,368 1,572,141 87.4 78.2 Plan Fiduciary of the Total Pension Liability Net Position as a Percentage Payroll ((a+b)/c) Covered City's City's Proportion of the Net Pension Liability Liability as a Percentage of Proportionate Share of the Net Pension 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) 12/31/18 144,815$ 144,815$ -$ 1,930,863$ 7.5 % 12/31/18 129,021 129,021 - 1,720,280 7.5 12/31/17 122,479 122,479 - 1,633,053 7.5 12/31/16 122,115 122,115 - 1,628,200 7.5 12/31/15 119,404 119,404 - 1,592,053 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. Contributions in Relation to theRelation to the Statutorily Statutorily ContributionStatutorily Statutorily Contribution City'sCity's Required Required Deficiency CoveredRequired Required Deficiency Covered Contribution ContributionContribution Contribution (Excess)(Excess)PayrollPayroll (a)(a)(b)((a-a-b)b)(c)(c) 144,815144,815$$144,815144,815$$-$$1,930,8631,930,863$ 88 City of Orono, Minnesota Required Supplementary Information (Continued) For the Year Ended December 31, 2019 Notes to the Required Supplementary Information - General Employees Fund Changes in Actuarial Assumptions 2019 - The mortality projection 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 percent 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. Changes in Plan Provisions 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 Living 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. 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 million. Upon consolidation, state and employer contributions were revised. retirement benefit increase rate was changed from 1.0 percent per year through 2030 and 2.5 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 2035percent per year thereafter to 1.0 percent per year through 2035 and 2.5 percent per year thereafter.and 2.5 percent per year thereafter. sionssions The employer supplemental contribution was changed prospectively, decreasing from $31.0 million to $21.0 million 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 per year. The state’s special funding contribution was changed prospectively, requiring $16.0 million due per year through The augmentation adjustment in early retirement factors is eliminated over a fiveThe augmentation adjustment in early retirement factors is eliminated over a five-year period starting July 1, 2019, year period starting July 1, 2019, resulting in actuarial equivalence after June 30, 2024. Interest crediresulting in actuarial equivalence after June 30, 2024. Interest credited on member contributions decreased from 4.00 ted on member contributions decreased from 4.00 89 City of Orono, Minnesota Required Supplementary Information (Continued) For the Year Ended December 31, 2019 Schedule of Employer’s Share of PERA Net Pension Liability - Public Employees Police and Fire Fund State's Proportionate City's Share of Proportionate the Net Pension Share of Liability City's Fiscal the Net PensionAssociated with Covered Year Liability the City Total Payroll Ending (a) (b) (a+b) (c) 06/30/19 0.2257 % 2,402,804$ -$ 2,402,804$ 2,309,629$ 104.0 % 89.3 % 06/30/18 0.2170 2,312,996 - 2,312,996 2,282,909 101.3 88.8 06/30/17 0.2130 2,875,753 - 2,875,753 2,186,712 131.5 85.4 06/30/16 0.2180 8,748,719 - 8,748,719 2,107,585 415.1 63.9 06/30/15 0.2310 2,624,701 - 2,624,701 2,138,417 122.7 86.6 the Net Pension Payroll of the Total Liability ((a+b)/c)Pension Liability City's Percentage of Net Position Proportion of Covered as a Percentage Liability as a Plan Fiduciary City's Proportionate Share of the Net Pension Note: Schedule is intended to show 10-year trend. Additional years will be reported as they become available. Schedule of Employer’s PERA Contributions - Public Employees 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) 12/31/19 411,298$ 411,298$ -$ 2,426,539$ 16.95 % 12/31/18 370,490 370,490 - 2,286,975 16.20 12/31/17 358,655 358,655 - 2,213,920 16.20 12/31/16 349,003 349,003 - 2,154,340 16.20 12/31/15 342,006 342,006 - 2,111,148 16.20 (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. PPERAERA Contributions Contributions - Public Employees Police and Fire FundPublic Employees Police and Fire Fund Contributions in Relation to theRelation to the Statutorily Statutorily ContributionStatutorily Statutorily Contribution City'sCity's Required Required Deficiency CoveredRequired Required Deficiency Covered Contribution ContributionContribution Contribution ((EExcess)xcess)PayrollPayroll (a)(a)(b)(a-b)(a-b)(c)(c) 411,298$411,298$$$2,426,539$ 90 City of Orono, Minnesota Required Supplementary Information (Continued) For the Year Ended December 31, 2019 Notes to the Required Supplementary Information - Police and Fire Fund Changes in Actuarial Assumptions 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. 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. 2017 - Assumed salary increases were changed as recommended in the June 30, 2016 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 percent for vested and non-vested deferred members. The CSA has been changed to 33 percent for vested members and 2 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 3.0 percent for the first three years of service. Rates beyond the select period of three years were adjusted, resulting in more expected terminations overall. Assumed percentage of married female members was decreased from 65 percent to 60 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 post-retirement benefit increase rate was changed 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 5.6 percent to 7.5 percent. 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 percent 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. assumptions for male members (wives assumed to be three years younger) and female members (husbands assumed to 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 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 postmembers electing joint and survivor annuities was increased. The assumed post -retirement benefit increase rate was retirement benefit increase rate was changed from 1.00 percent for all years to 1.00 percent per year through 2064 and 2.50changed from 1.00 percent for all years to 1.00 percent per year through 2064 and 2.50 percent thereafter. The single percent thereafter. The single discount rate was changed from 5.6 percent to 7.5 percent. discount rate was changed from 5.6 percent to 7.5 percent. --retirement benefit increase rate was changed from 1.0 percent per year through 2037 and 2.5retirement benefit increase rate was changed from 1.0 percent per year through 2037 and 2.5 percent per year thereafterpercent per year thereafter to 1.0 percent per year for all future years. The assumed investment return was changed from 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 5.6 percent. The assumed future 7.9 percent to 7.5 percent. The single discount rate was changed from 7.9 percent to 5.6 percent. The assumed future salary increases, payroll growth and inflatsalary increases, payroll growth and inflation were decreasedion were decreased by 0.25 percent to 3.25 percent for payroll growth and 2.50 by 0.25 percent to 3.25 percent for payroll growth and 2.50 91 City of Orono, Minnesota Required Supplementary Information (Continued) For the Year Ended December 31, 2019 Notes to the Required Supplementary Information - Police and Fire Fund (Continued) Changes in Plan Provisions 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 Living 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. 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. changed from $21,000,000 to $31,000,000 in calendar years 2019 to 2031. The state’s contribution changedchanged from $21,000,000 to $31,000,000 in calendar years 2019 to 2031. The state’s contribution changed $16,000,000 to $6,000,000 in calendar years 2019 to 2031.$16,000,000 to $6,000,000 in calendar years 2019 to 2031. retirement benefit increase to be paid after attainment of the 90 percent funding threshold was changed, retirement benefit increase to be paid after attainment of the 90 percent funding threshold was changed, from inflation up to 2.5 percent, to a fixed rate of 2.5 from inflation up to 2.5 percent, to a fixed rate of 2.5 percent.percent. 92 City of Orono, Minnesota Required Supplementary Information (Continued) For the Year Ended December 31, 2019 Schedule of Changes in the City’s Total OPEB Liability and Related Ratios 2019 2018 Total OPEB Liability Service cost 90,925$ 82,950$ Interest 31,294 30,294 Changes in assumptions (49,156) 23,193 Benefit payments (36,813)(35,472) Net Change in Total OPEB Liability 36,250 100,965 Total OPEB Liability - Beginning 837,187 736,222 Total OPEB Liability - Ending 873,437$ 837,187$ Covered Payroll 4,000,000$ 3,900,000$ City's total OPEB liability as a percentage of covered payroll 21.84 % 21.47 Changes in Assumptions: In 2019, the following assumptions changes: The discount rate used in the 20-year municipal bond index, as the plan is not funded. This assumed rate increased from 4.00% to 4.09% The actuarial cost method was updated along with the implementation of GASB Statement No. 74 to the Entry Age Normal Level Percent of Pay method, with investment gains/losses being amortized over 5 years, liability gains/losses are amortized over the average working lifetime, and plan changes are recognized immediately. Previously, under GASB Statement No. 45, the Entry Age Normal actuarial cost method was used, and the unfunded actuarial accrued liability was being amortized as a level percent of payroll over a 30-year period. Note: Schedule is intended to show 10-year trend. Additional years will be reported as they become available. Changes in Assumptions:Changes in Assumptions: In 2019, the following assumptions changes:In 2019, the following assumptions changes: The discount rate used in the 20-year municipal bond index, as the plan is not funded. This assumed The discount rate used in the 20-year municipal bond index, as the plan is not funded. This assumed rate increased from 4.00% to 4.09%rate increased from 4.00% to 4.09% The actuarial cost method was updated along with the implementation of GASB Statement No. 74 toThe actuarial cost method was updated along with the implementation of GASB Statement No. 74 to the Entry Age Normal Level Percent of Pay method, with investment gains/losses being amortized the Entry Age Normal Level Percent of Pay method, with investment gains/losses being amortized over 5 years, liability gains/losses are amortized over the average working lifetime, and plan changes over 5 years, liability gains/losses are amortized over the average working lifetime, and plan changes are recognized immediately. Previously, under GASB Statement No. 45, the Entry Age Normal are recognized immediately. Previously, under GASB Statement No. 45, the Entry Age Normal actuarial cost method was used, and the unfunded actuarial accrued liability was being amortized actuarial cost method was used, and the unfunded actuarial accrued liability was being amortized 93 94 COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES CITY OF ORONO, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2019 FOR THE YEAR ENDED DECEMBER 31, 2019 95 96 NONMAJOR GOVERNMENTAL FUNDS 97 City of Orono, Minnesota Nonmajor Governmental Funds Combining Balance Sheet December 31, 2019 Total Nonmajor Special Debt Capital Governmental Revenue Service Projects Funds Assets Cash and temporary investments 1,010,952$ 2,126,348$ 2,899,607$ 6,036,907$ Receivables Accrued interest 2,723 4,741 7,258 14,722 Taxes - 17,676 - 17,676 Special assessments 33,600 - 4,850 38,450 Due from other governments 221 9,454 - 9,675 Total Assets 1,047,496$ 2,158,219$ 2,911,715$ 6,117,430$ Liabilities Accounts and contracts payable 61,804$ -$ 10,945$ 72,749$ Deferred Inflows of Resources Unavailable revenues - delinquent taxes - 17,676 - 17,676 Unavailable revenues - special assessments 33,600 - 4,850 38,450 Total Deferred Inflows of Resources 33,600 17,676 4,850 56,126 Fund Balances Restricted 935,351 2,140,543 174,114 3,250,008 Committed 16,741 - - 16,741 Assigned - - 2,721,806 2,721,806 Total Fund Balances 952,092 2,140,543 2,895,920 5,988,555 Total Liabilities, Deferred Inflows of Resources and Fund Balances 1,047,496$ 2,158,219$ 2,911,715$ 6,117,430$ Deferred Inflows of Resources Unavailable revenues - delinquent taxesUnavailable revenues - delinquent taxes -17,67617,676 Unavailable revenues - special assessmentsUnavailable revenues - special assessments 33,600 --4,850 Total Deferred Inflows of ResourcesTotal Deferred Inflows of Resources 33,60033,600 17,67617,676 4,8504,850 935,351935,351 2,140,5432,140,543 174,114174,114 16,74116,741 -- ----2,721,8062,721,806 Total Fund BalancesTotal Fund Balances 952,092952,092 2,140,5432,140,543 2,895,9202,895,920 98 City of Orono, Minnesota Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended December 31, 2019 Total Nonmajor Special Debt Capital Governmental Revenue Service Projects Funds Revenues Taxes 76,344$ 710,819$ -$ 787,163$ Special assessments 20,722 - 2,061 22,783 Licenses and permits 38,850 - - 38,850 Intergovernmental - 144,838 13,732 158,570 Charges for services 16,741 - 10,885 27,626 Fines and forfeitures 39,737 - 174,114 213,851 Investment earnings 33,936 45,583 77,744 157,263 Miscellaneous 45,944 - - 45,944 Total Revenues 272,274 901,240 278,536 1,452,050 Expenditures Current Public safety 3,818 - - 3,818 Parks and recreation 38,644 - - 38,644 Community development 141,722 - - 141,722 Capital outlay Public Works - - 191,587 191,587 Parks and recreation 476,873 - - 476,873 Debt service Principal - 890,000 - 890,000 Interest and other charges - 184,385 - 184,385 Total Expenditures 661,057 1,074,385 191,587 1,927,029 Excess (Deficiency) of Revenues Over (Under) Expenditures (388,783) (173,145) 86,949 (474,979) Other Financing Sources (Uses) Transfers in - 290,861 430,496 721,357 Transfers out - (131,474) (24,883) (156,357) Total Other Financing Sources (Uses) - 159,387 405,613 565,000 Net Change in Fund Balances (388,783) (13,758) 492,562 90,021 Fund Balances, January 1 1,340,875 2,154,301 2,403,358 5,898,534 Fund Balances, December 31 952,092$ 2,140,543$ 2,895,920$ 5,988,555$ 3,818 -- 38,644 -- Community developmentCommunity development 141,722141,722 -- ---191,587191,587 476,873476,873 -- --890,000890,000 Interest and other chargesInterest and other charges 184,184,385385 99 100 NONMAJOR SPECIAL REVENUE FUNDS Special Revenue funds are used to account for specific revenues that are legally restricted to expenditures for particular purposes. Park Fund accounts for received park dedication fees to be used for land acquisition and park development. Drug and Felony Forfeiture Fund accounts for proceeds received from seizures relating to drug and felony criminal activity, donations received for the police department, other appropriate revenues authorized by the City Council, and all authorized related expenditures. Affordable Housing Fund accounts for revenues and expenditures related to financial assistance packages provided to several low income households to make new town home units affordable. Lurton Park Fund accounts for revenues and expenditures related to the maintenance and trails within Lurton Park property. Senior Housing TIF Fund accounts for revenues and expenditures related to the senior housing property. Golf Course Improvement Fund accounts for revenues and expenditures related to the improvement of the City’s golf course. Big Island Fund accounts for revenues and expenditures related to the improvement of the Big Island Nature Park. Carmen Bay Lake Improvement Fund accounts for revenues and expenditures related to the improvement of Carmen Bay. 101 City of Orono, Minnesota Nonmajor Special Revenue Funds Subcombining Balance Sheet December 31, 2019 225 231 233 234 Drug and Felony Affordable Lurton Park Forfeiture Housing Park Assets Cash and temporary investments 354,521$ 380,168$ 137,161$ 31,696$ Receivables Accrued interest 1,083 959 345 59 Special assessments - - - - Due from other governments - - - - Total Assets 355,604$ 381,127$ 137,506$ 31,755$ Liabilities Accounts and contracts payable 61,804$ -$ -$ -$ Deferred Inflows of Resources Unavailable revenues - special assessments - - - - Fund Balances Restricted 293,800 381,127 137,506 15,014 Committed - - - 16,741 Total Fund Balances 293,800 381,127 137,506 31,755 Total Liabilities and Fund Balances 355,604$ 381,127$ 137,506$ 31,755$ Unavailable revenues - special assessmentsUnavailable revenues - special assessments 293,800293,800 381,127381,127 137,506137,506 --- Total Fund BalancesTotal Fund Balances 293,800293,800 381,127381,127 137,506137,506 355,604355,604$$381,127381,127$$137,506137,506$ 102 235 237 238 239 Carmen Bay Senior Golf Course Lake Housing TIF Improvement Big Island Improvement Total 91,102$ 276$ 6,000$ 10,028$ 1,010,952$ 276 1 - - 2,723 - - - 33,600 33,600 - - - 221 221 91,378$ 277$ 6,000$ 43,849$ 1,047,496$ -$ -$ -$ -$ 61,804$ - - - 33,600 33,600 91,378 277 6,000 10,249 935,351 - - - - 16,741 91,378 277 6,000 10,249 952,092 91,378$ 277$ 6,000$ 43,849$ 1,047,496$ 33,600 33,60033,600 277 6,0006,000 10,24910,249 935,351935,351 ----16,74116,741 277 6,0006,000 10,24910,249 952,092952,092 277277 6,0006,000$$43,84943,849$1,047,4961,047,496$$ 103 City of Orono, Minnesota Nonmajor Special Revenue Funds Subcombining Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended December 31, 2019 225 231 233 234 Drug and Felony Affordable Lurton Park Forfeiture Housing Park Revenues Taxes -$ -$ -$ -$ Special assessments - - - - Licenses and permits 38,850 - - - Charges for services - - - 16,741 Fines and forfeitures - 39,737 - - Investment earnings 15,142 10,508 3,921 573 Miscellaneous 45,000 - - 300 Total Revenues 98,992 50,245 3,921 17,614 Expenditures Current Public safety - 3,818 - - Parks and recreation 23,863 - - 3,499 Community development - - - - Capital outlay Parks and recreation 476,873 - - - Total Expenditures 500,736 3,818 - 3,499 Net Change in Fund Balances (401,744) 46,427 3,921 14,115 Fund Balances, January 1 695,544 334,700 133,585 17,640 Fund Balances, December 31 293,800$ 381,127$ 137,506$ 31,755$ 3,818 23,863 -- Community developmentCommunity development --- 476,873476,873 -- 500,736500,736 3,8183,818 Net Change in Fund BalancesNet Change in Fund Balances (401,744)(401,744)46,42746,427 3,921 Fund Balances, January 1Fund Balances, January 1 695,544695,544 334,700334,700 133,585133,585 104 235 237 238 239 Carmen Bay Senior Golf Course Lake Housing TIF Improvement Big Island Improvement Total 76,344$ -$ -$ -$ 76,344$ - - - 20,722 20,722 - - - - 38,850 - - - - 16,741 - - - - 39,737 3,785 7 - - 33,936 - 644 - - 45,944 80,129 651 - 20,722 272,274 - - - - 3,818 - 644 - 10,638 38,644 141,722 - - - 141,722 - - - - 476,873 141,722 644 - 10,638 661,057 (61,593) 7 - 10,084 (388,783) 152,971 270 6,000 165 1,340,875 91,378$ 277$ 6,000$ 10,249$ 952,092$ 3,8183,818 644644 -10,638 38,64438,644 ---141,722141,722 ----476,873476,873 644 --10,63810,638 661,057661,057 7 --10,08410,084 (388,783)(388,783) 270270 6,0006,000 165165 1,340,875340,875 105 106 NONMAJOR DEBT SERVICE FUNDS Debt Service funds are used to account for the accumulation of resources for, and payment of, principal and interest and related costs on general long-term debt. 107 City of Orono, Minnesota Nonmajor Debt Service Funds Subcombining Balance Sheet December 31, 2019 318 319 321 HRA 2005 2008 Public Project Street 2010 General Revenue Bonds Reconstruction Obligation Bonds Assets Cash and temporary investments -$ -$ 579,858$ Receivables Accrued interest - - 1,220 Taxes - - 5,664 Due from other governments - - 1,951 Total Assets -$ -$ 588,693$ Deferred Inflows of Resources Unavailable revenues - delinquent taxes -$ -$ 5,664$ Fund Balances Restricted - - 583,029 Total Deferred Inflows of Resources and Fund Balances -$ -$ 588,693$ Total Deferred InflowsTotal Deferred Inflows of Resources and Fund Balancesof Resources and Fund Balances --$$$$ 108 322 323 2000 2016 Improvement Refunding Bonds Bonds Total 775,336$ 771,154$ 2,126,348$ 1,799 1,722 4,741 3,850 8,162 17,676 2,249 5,254 9,454 783,234$ 786,292$ 2,158,219$ 3,850$ 8,162$ 17,676$ 779,384 778,130 2,140,543 783,234$ 786,292$ 2,158,219$ 778,130 2,140,543 786,292786,292 2,158,2192,158,219$ 109 City of Orono, Minnesota Nonmajor Debt Service Funds Subcombining Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended December 31, 2019 318 319 321 HRA 2005 2008 Public Project Street 2010 General Revenue Bonds Reconstruction Obligation Bonds Revenues Taxes -$ -$ 137,358$ Intergovernmental - - 144,838 Investment earnings - - 12,858 Total Revenues - - 295,054 Expenditures Debt service Principal - - 205,000 Interest and other charges - - 65,818 Total Expenditures - - 270,818 Excess (Deficiency) of Revenues Over (Under) Expenditures - - 24,236 Other Financing Sources (Uses) Transfers in - - - Transfers out (496) (978) (130,000) Total Other Financing Sources (Uses) (496) (978) (130,000) Net Change in Fund Balances (496) (978) (105,764) Fund Balances, January 1 496 978 688,793 Fund Balances, December 31 -$ -$ 583,029$ Excess (Deficiency) of RevenuesExcess (Deficiency) of Revenues Over (Under) ExpendituresOver (Under) Expenditures -- Other Financing Sources (Uses)Other Financing Sources (Uses) -- (496)(496)(978) Total Other FinancingTotal Other Financing (496)(496)(978) Net Change in Fund BalancesNet Change in Fund Balances (496)(496)(978)(978) 110 322 323 2000 2016 Improvement Refunding Bonds Bonds Total 164,028$ 409,433$ 710,819$ - - 144,838 17,616 15,109 45,583 181,644 424,542 901,240 220,000 465,000 890,000 67,318 51,249 184,385 287,318 516,249 1,074,385 (105,674) (91,707) (173,145) 124,883 165,978 290,861 - - (131,474) 124,883 165,978 159,387 19,209 74,271 (13,758) 760,175 703,859 2,154,301 779,384$ 778,130$ 2,140,543$ (91,707)(91,707)(173,145)(173,145) 165,978165,978 290,861290,861 -(131,474)(131,474) 165,978165,978 159,387159,387 74,27174,271 (13,758)(13,758) 111 112 NONMAJOR CAPITAL PROJECTS FUNDS Capital Project funds account for financial resources to be used for acquisition or construction of major capital facilities (other than those financed by Proprietary funds). Improvement Equipment Outlay Fund accounts for the capital outlay costs of obtaining new equipment for various functions. Permanent Revolving Improvement Fund accounts for the construction costs prior to obtaining permanent financing. Community Investment Construction fund is used to collect and spend resources on the various community assets of the City. Navarre Fire Station Construction Fund accounts for the construction costs of a new fire station in the Navarre area of the City. Big Island Public Project Fund accounts for the improvement of the Big Island Nature Park. Police Garage Fund is used to collect and spend resources for the City’s police garage project. 113 City of Orono, Minnesota Nonmajor Capital Projects Funds Subcombining Balance Sheet December 31, 2019 405 406 408 Improvement Permanent Community Equipment Revolving Investment Outlay Improvement Construction Assets Cash and temporary investments 695,978$ 1,467,930$ 688,312$ Receivables Accrued interest 1,681 3,683 1,735 Special assessments - 4,850 - Total Assets 697,659$ 1,476,463$ 690,047$ Liabilities Accounts and contracts payable 10,945$ -$ -$ Deferred Inflows of Resources Unavailable revenues - special assessments - 4,850 - Fund Balances Restricted - 174,114 - Assigned 686,714 1,297,499 690,047 Total Fund Balances 686,714 1,471,613 690,047 Total Liabilities, Deferred Inflows of Resources and Fund Balances 697,659$ 1,476,463$ 690,047$ --174,114174,114 686,714686,714 1,297,4991,297,499 Total Fund BalancesTotal Fund Balances 686,714686,714 1,471,6131,471,613 Total Liabilities, DeferredTotal Liabilities, Deferred Inflows of ResourcesInflows of Resources and Fund Balancesand Fund Balances 697,659697,659$$1,476,4631,476,463$ 114 425 430 437 Navarre Big Island Fire Station Public Police Construction Project Garage Total 919$ 46,468$ -$ 2,899,607$ 8 151 - 7,258 - - - 4,850 927$ 46,619$ -$ 2,911,715$ -$ -$ -$ 10,945$ - - - 4,850 - - - 174,114 927 46,619 - 2,721,806 927 46,619 - 2,895,920 927$ 46,619$ -$ 2,911,715$ --174,114 46,61946,619 --2,721,8062,721,806 46,61946,619 --2,895,9202,895,920 46,61946,619 --$$2,911,7152,911,715$ 115 City of Orono, Minnesota Nonmajor Capital Projects Funds Subcombining Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended December 31, 2019 405 406 408 Improvement Permanent Community Equipment Revolving Investment Outlay Improvement Construction Revenues Special assessments -$ 2,061$ -$ Intergovernmental - 13,732 - Charges for services - 10,885 - Fines and Forfetures - 174,114 - Investment earnings 17,622 40,418 18,363 Total Revenues 17,622 241,210 18,363 Expenditures Capital outlay Public works 160,353 28,024 3,210 Excess (Deficiency) of Revenues Over (Under) Expenditures (142,731) 213,186 15,153 Other Financing Sources (Uses) Transfers in 300,000 - 130,000 Transfers out - - - Total Other Financing Sources (Uses) 300,000 - 130,000 Net Change in Fund Balances 157,269 213,186 145,153 Fund Balances, January 1 529,445 1,258,427 544,894 Fund Balances, December 31 686,714$ 1,471,613$ 690,047$ Excess (Deficiency) of RevenuesExcess (Deficiency) of Revenues Over (Under) ExpendituresOver (Under) Expenditures (142,731)(142,731)213,186213,186 Other Financing Sources (Uses)Other Financing Sources (Uses) 300,000300,000 -- Total Other FinancingTotal Other Financing 300,000300,000 Net Change in Fund BalancesNet Change in Fund Balances 157,269157,269 213,186213,186 116 425 430 437 Navarre Big Island Fire Station Public Police Construction Project Garage Total -$ -$ -$ 2,061$ - - - 13,732 - - - 10,885 - - - 174,114 24 1,317 - 77,744 24 1,317 - 278,536 - - - 191,587 24 1,317 - 86,949 - 496 - 430,496 - - (24,883) (24,883) - 496 (24,883) 405,613 24 1,813 (24,883) 492,562 903 44,806 24,883 2,403,358 927$ 46,619$ -$ 2,895,920$ 1,3171,317 -86,949 496 --430,496430,496 -(24,883)(24,883)(24,883)(24,883) 496 (24,883)(24,883)405,613405,613 1,8131,813 (24,883)(24,883)492,562492,562 117 118 NONMAJOR PROPRIETARY FUNDS Nonmajor proprietary funds are used to account for the financial resources that are produced and used by the business- type funds that are not significant enough to be presented individually. Recycling Fund accounts for the revenues and expenses related to the City’s recycling program. Cable Television Fund accounts for the revenues and expenses created from the cable franchise agreements that the City is a part of. 119 Recycling Cable Television Total Assets Current Assets Cash and temporary investments 52,518$ 130,186$ 182,704$ Receivables Accrued interest 146 381 527 Accounts 18,343 19,624 37,967 Total Current Assets 71,007 150,191 221,198 Noncurrent Assets Capital assets Construction in progress - 62,160 62,160 Machinery and equipment - 78,674 78,674 Total Capital Assets - 140,834 140,834 Less accumulated depreciation - (25,698) (25,698) Net Capital Assets - 115,136 115,136 Total Noncurrent Assets - 115,136 115,136 Total Assets 71,007 265,327 336,334 Deferred Outflows of Resources Deferred pension resources 1,031 2,225 3,256 Liabilities Current Liabilities Accounts and contracts payable - 28,215 28,215 Accrued salaries payable 361 745 1,106 Total Current Liabilities 361 28,960 29,321 Noncurrent Liabilities Pension liability 8,646 18,655 27,301 Total Liabilities 9,007 47,615 56,622 Deferred Inflows of Resources Deferred pension resources 1,591 3,434 5,025 Net Position Net investment in capital assets - 115,136 115,136 Unrestricted 61,440 101,367 162,807 Total Net Position 61,440$ 216,503$ 277,943$ City of Orono, Minnesota Combining Statement of Net Position Nonmajor Proprietary Funds December 31, 2019 Business-type Activities - Enterprise Funds Total Noncurrent AssetsTotal Noncurrent Assets --115,136115,136 71,00771,007 265,327265,327 Deferred Outflows of ResourcesDeferred Outflows of Resources Deferred pension resourcesDeferred pension resources 1,0311,031 2,225 120 Recycling Cable Television Total Operating Revenues Charges for services 126,845$ 80,192$ 207,037$ Operating Expenses Personnel services 18,221 39,342 57,563 Professional services 141,065 42,147 183,212 Depreciation - 7,868 7,868 Administrative charges from the General Fund - 2,500 2,500 Other 14,452 - 14,452 Total Operating Expenses 173,738 91,857 265,595 Operating Loss (46,893) (11,665) (58,558) Nonoperating Revenues (Expenses) Intergovernmental 21,058 - 21,058 Investment earnings 1,687 4,412 6,099 Miscellaneous revenues 4,168 45 4,213 Total Nonoperating Revenues 26,913 4,457 31,370 Change in Net Position (19,980) (7,208) (27,188) Net Position - January 1 81,420 223,711 305,131 Net Position, December 31 61,440$ 216,503$ 277,943$ City of Orono, Minnesota Combining Statement of Revenues, Expenses and Changes in Net Position Nonmajor Proprietary Funds For the Year Ended December 31, 2019 Business-type Activities - Enterprise Funds 1,687 4,412 Miscellaneous revenuesMiscellaneous revenues 4,1684,168 26,91326,913 4,4574,457 (19,980)(19,980)(7,208) 81,42081,420 223,711223,711 Net Position, December 31Net Position, December 31 61,44061,440$$216,503216,503$ 121 Recycling Cable Television Total Cash Flows from Operating Activities Receipts from customers and users 130,207$ 81,819$ 212,026$ Other operating receipts 4,168 45 4,213 Payments to suppliers (155,517) (16,432) (171,949) Payments to employees (14,133) (29,647) (43,780) Net Cash Provided (Used) by Operating Activities (35,275) 35,785 510 Cash Flows from Noncapital Financing Activities Intergovernmental receipts 21,058 - 21,058 Cash Flows from Capital and Related Financing Activities Acquisition of capital assets - (62,160) (62,160) Cash Flows from Investing Activities Investment receipts 1,613 4,260 5,873 Net Decrease in Cash and Cash Equivalents (12,604) (22,115) (34,719) Cash and Cash Equivalents, January 1 65,122 152,301 217,423 Cash and Cash Equivalents, December 31 52,518$ 130,186$ 182,704$ Reconciliation to the Proprietary Funds Statement of Net Position Cash and temporary investments 52,518$ 130,186$ 182,704$ Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities Operating income (loss) (46,893)$ (11,665)$ (58,558)$ Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities Depreciation - 7,868 7,868 Other income related to operations 4,168 45 4,213 (Increase) decrease in assets/deferred outflows of resources Accounts receivable 3,362 1,627 4,989 Deferred pension resources (131) (434) (565) Increase (decrease) in liabilities/deferred inflows of resources Accounts and contracts payable - 28,215 28,215 Accrued salaries payable 361 745 1,106 Pension liability 3,579 8,563 12,142 Deferred pension resources 279 821 1,100 Net Cash Provided (Used) by Operating Activities (35,275)$ 35,785$ 510$ City of Orono, Minnesota Combining Statement of Cash Flows Nonmajor Proprietary Funds For the Year Ended December 31, 2019 Business-type Activities - Enterprise Funds Cash Flows from Investing Activities 1,6131,613 Cash and Cash EquivalentsCash and Cash Equivalents (12,604)(12,604) (22,115)(22,115) Cash and Cash Equivalents, January 1Cash and Cash Equivalents, January 1 65,12265,122 152,301 Cash and Cash Equivalents, December 31Cash and Cash Equivalents, December 31 52,51852,518$ $ 130,186130,186$ $ 122 City of Orono, Minnesota General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the Year Ended December 31, 2019 Actual Variance with Original Final Amounts Final Budget Revenues Taxes 4,390,000$ 4,390,000$ 4,384,037$ (5,963)$ Licenses and permits 496,750 496,750 703,192 206,442 Intergovernmental 270,220 270,220 431,754 161,534 Charges for services 3,219,900 3,219,900 3,476,423 256,523 Fines and forfeitures 80,100 80,100 85,810 5,710 Investment earnings 96,410 96,410 97,634 1,224 Miscellaneous Rents and refunds 5,400 5,400 5,850 450 Other 3,500 3,500 21,855 18,355 Total Revenues 8,562,280 8,562,280 9,206,555 644,275 Expenditures Current General government Administration 468,500 468,500 428,889 39,611 Election 7,160 7,160 2,890 4,270 Assessing 185,000 185,000 194,750 (9,750) Finance 273,050 273,050 239,687 33,363 Legal 129,000 129,000 105,956 23,044 Human services 12,400 12,400 9,500 2,900 Central services 294,890 294,890 290,221 4,669 Total general government 1,370,000 1,370,000 1,271,893 98,107 Public Saftey Police 4,335,170 4,335,170 4,368,888 (33,718) Fire 402,100 402,100 402,099 1 Inspection and Zoning 695,910 695,910 671,395 24,515 Total public saftey 5,433,180 5,433,180 5,442,382 (9,202) Public Works Streets 758,930 758,930 773,965 (15,035) Parks and Recreation Golf Course 212,730 212,730 252,973 (40,243) Other 218,440 218,440 189,253 29,187 Total parks and recreation 431,170 431,170 442,226 (11,056) Capital Outlay Public Saftey 184,000 184,000 242,656 (58,656) Public Works - - 72 (72) Total capital outlay 184,000 184,000 242,728 (58,728) Total Expenditures 8,177,280 8,177,280 8,173,194 4,086 Excess of Revenues Over Expenditures 385,000 385,000 1,033,361 648,361 Other Financing Sources (Uses) Proceeds from sale of capital assets 15,000 15,000 41,105 26,105 Transfers out (400,000) (400,000) (1,121,339) (721,339) Total Other Financing Sources (Uses) (385,000) (385,000) (1,080,234) (695,234) Net Change in Fund Balances - - (46,873) (46,873) Fund Balances, January 1 4,454,566 4,454,566 4,454,566 - Fund Balances, December 31 4,454,566$ 4,454,566$ 4,407,693$ (46,873)$ Budget Amounts 12,400 12,40012,400 294,890 294,890294,890 Total general governmentTotal general government 1,370,000 1,370,0001,370,000 4,335,1704,335,170 4,335,1704,335,170 4,368,888 402,100402,100 402,100402,100 695,910695,910 695,910695,910 5,433,1805,433,180 5,433,1805,433,180 5,442,382 758,930758,930 758,930 123 124 INTERNAL SERVICE FUNDS Internal Service funds are used to account for the financing of goods or services provided by one department to other departments of the City, on a cost reimbursement basis. Revenues are recognized in the accounting period in which they are earned and become objectively measurable; expenses are recognized in the period incurred, if objectively measurable. Insurance Fund was established to account for the insurance costs incurred by the City for general liability, property, vehicle, workers’ compensation, and other insurance and deductibles. Compensated Absences Fund was established to account for the accrual of sick and vacation days that are earned by the City’s employees. Fleet Management Fund was established to account for the costs of repairs, maintenance, and supplies for the City’s various vehicles. IT Services was established to account for the cost of IT services to the various City functions and departments. 125 City of Orono, Minnesota Internal Service Funds Combining Statement of Net Position December 31, 2019 703 705 701 710 Insurance Compensated Fleet Fund Absences Management IT Services Total Assets Current Assets Cash and temporary investments 239,615$ 627,999$ 23,505$ (58,913)$ 832,206$ Receivables Accrued interest 517 1,466 - - 1,983 Prepaid items 8,000 - - 37,624 45,624 Total Assets 248,132 629,465 23,505 (21,289) 879,813 Liabilities Current Liabilities Accounts and contracts payable - - 5,086 11,845 16,931 Accrued salaries payable 569 - - 1,247 1,816 Total Liabilities 569 - 5,086 13,092 18,747 Net Position Unrestricted 247,563 629,465 18,419 (34,381) 861,066 Total Liabilities and Fund Balances 248,132$ 629,465$ 23,505$ (21,289)$ 879,813$Total Liabilities and Fund BalancesTotal Liabilities and Fund Balances 248,132$629,465$23,50523,505$(21,289)$ 126 City of Orono, Minnesota Internal Service Funds Combining Statement of Revenues, Expenses and Changes in Net Position For the Year Ended December 31, 2019 703 705 701 710 Insurance Compensated Fleet Fund Absences Management IT Services Total Operating Revenues Charges for services 346,500$ -$ -$ -$ 346,500$ Other 4,071 92,180 129,510 198,870 424,631 Total Operating Revenues 350,571 92,180 129,510 198,870 771,131 Operating Expenses Personnel services 160,886 - - 73,117 234,003 Supplies - - - 48,515 48,515 Professional services - - - 104,408 104,408 Repairs and maintenance - - 105,516 7,211 112,727 Insurance 214,959 - - - 214,959 Total Operating Expenses 375,845 - 105,516 233,251 714,612 Operating Income (Loss) (25,274) 92,180 23,994 (34,381) 56,519 Nonoperating Revenues Investment earnings 5,127 15,695 - - 20,822 Change in Net Position (20,147) 107,875 23,994 (34,381) 77,341 Net Position, January 1 267,710 521,590 (5,575) - 783,725 Net Position, December 31 247,563$ 629,465$ 18,419$ (34,381)$ 861,066$ 5,1275,127 15,695 -- (20,147)(20,147)107,875107,875 23,99423,994 (34,381) 267,710267,710 521,590521,590 (5,575)(5,575) Net Position, December 31Net Position, December 31 247,563247,563$$629,465629,465$18,41918,419$$(34,381)(34,381)$ 127 City of Orono, Minnesota Internal Service Funds Combining Statement of Cash Flows For the Year Ended December 31, 2019 703 705 701 710 Insurance Compensated Fleet Fund Absences Management IT Services Total Cash Flows from Operating Activities Receipts from customers and users 350,571$ 92,180$ 129,510$ 198,870$ 771,131$ Payments to suppliers (222,959) - (121,150) (179,565) (523,674) Payments to employees (160,317) - - (71,870) (232,187) Net Cash Provided (Used) by Operating Activities (32,705) 92,180 8,360 (52,565) 15,270 Cash Flows from Investing Activities Investment receipts 5,401 14,913 - - 20,314 Net Increase (Decrease) in Cash and Cash Equivalents (27,304) 107,093 8,360 (52,565) 35,584 Cash and Cash Equivalents, January 1 266,919 520,906 15,145 (6,348) 796,622 Cash and Cash Equivalents, December 31 239,615$ 627,999$ 23,505$ (58,913)$ 832,206$ Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities Operating income (loss) (25,274)$ 92,180$ 23,994$ (34,381)$ 56,519$ Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities (Increase) decrease in assets Prepaid items (8,000) - - (31,276) (39,276) Increase (decrease) in liabilities Accounts and contracts payable - - (15,634) 11,845 (3,789) Accrued salaries payable 569 - - 1,247 1,816 Net Cash Provided (Used) by Operating Activities (32,705)$ 92,180$ 8,360$ (52,565)$ 15,270$ (Increase) decrease in assets(Increase) decrease in assets (8,000) - -- Increase (decrease) in liabilitiesIncrease (decrease) in liabilities Accounts and contracts payableAccounts and contracts payable - - (15,634)(15,634) Accrued salaries payableAccrued salaries payable 569569 - -- Net Cash Provided (Used) byNet Cash Provided (Used) by Operating ActivitiesOperating Activities (32,705)$$92,18092,180$ $ 8,3608,360$ $ 128 STATISTICAL SECTION (UNAUDITED) CITY OF ORONO, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2019DECEMBER 31, 2019 129 130 STATISTICAL SECTION (UNAUDITED) This part of the City’s comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City’s overall financial health. Contents Pages Financial Trends 133 - 142 These schedules contain trend information to help the reader understand how the government’s financial performance and well-being have changed over time. Revenue Capacity 144 - 147 These schedules contain information to help the reader assess the City’s most significant local revenue source, property taxes. Debt Capacity 148 - 154 These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future. Demographic and Economic Information 155 - 157 These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place. Operating Information 158 - 162 These schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the City provides and the activities it performs. Sources: Unless otherwise noted, the information in these schedules is derived from the annual financial reports for the relevant year. These schedules offer demographic and economic indicators to help the reader understand the environment within These schedules offer demographic and economic indicators to help the reader understand the environment within ’s financial activities take place.’s financial activities take place. These schedules contain service and infrastructure data toThese schedules contain service and infrastructure data to help the reader understand how the information in the help the reader understand how the information in the ’s financial report relates to the services the ’s financial report relates to the services the CityCity provides and the activities it performs.provides and the activities it performs. Sources: Unless otherwise noted, the information in these schedules is derived from the annual financial reports for the Sources: Unless otherwise noted, the information in these schedules is derived from the annual financial reports for the 131 132 City of Orono, Minnesota Summary Financial Report Governmental Funds Revenues and Expenditures For General Operations For the Years Ended December 31, 2019 and 2018 2019 2018 Revenues Taxes 5,709,173$ 5,448,238$ 4.79 % Special assessments 22,783 22,935 (0.66) Licenses and permits 742,042 954,278 (22.24) Intergovernmental 966,874 1,616,583 (40.19) Charges for services 3,647,122 3,211,749 13.56 Fines and forfeits 299,661 124,060 141.55 Investment earnings 259,332 122,659 111.43 Miscellaneous 73,649 171,219 (56.99) Total Revenues 11,720,636$ 11,671,721$ 0.42 % Per Capita 1,447$ 1,481$ (2.30) % Expenditures Current General government 1,271,893$ 1,433,076$ (11.25) % Public safety 5,446,200 5,628,086 (3.23) Public works 773,965 595,740 29.92 Parks and recreation 480,870 421,996 13.95 Community development 141,722 - N/A Capital outlay Public safety 242,656 - N/A Public works 1,887,532 5,467,706 (65.48) Parks and recreation 476,873 304,113 56.81 Debt service Principal 890,000 660,000 34.85 Interest and other charges 184,385 187,404 (1.61) Total Expenditures 11,796,096$ 14,698,121$ (19.74) % Per Capita 1,456$ 1,865$ (21.91) Total Long-term Indebtedness 6,253,851$ 7,169,801$ (12.78) % Per Capita 772 910 (15.13) General Fund Balance - December 31 4,407,693$ 4,454,566$ (1.05) % Per Capita 544 565 (3.73) Total Percent Increase (Decrease) The purpose of this report is to provide a summary of financial information concerning the City of Inver Grove Heights to interested citizens. The complete financial statements may be examined at City Hall, 2750 Kelley Parkway, P.O. Box 66, Crystal Bay, Minnesota 55323. Questions about this report should be directed to the Finance Department at (952) 249-4600. 1,271,8931,271,893$1,433,0761,433,076$ 5,446,2005,446,200 5,628,0865,628,086 773,965773,965 595,740595,740 480,870480,870 421,996421,996 Community developmentCommunity development 141,722141,722 242,656242,656 1,887,5321,887,532 5,467,7065,467,706 133 City of Orono, Minnesota Statistical Section (Unaudited) Net Position by Component Last Ten Fiscal Years (Accrual Basis of Accounting) 2010 2011 2012 2013 Governmental Activities Net investment in capital assets 11,535,032$ 12,059,075$ 11,373,668$ 10,855,727$ Restricted 2,118,273 3,283,445 3,279,963 3,596,762 Unrestricted 6,207,780 5,995,237 7,159,290 7,777,232 Total Governmental Activities Net Position 19,861,085$ 21,337,757$ 21,812,921$ 22,229,721$ Business-type Activities Net investment in capital assets 15,144,730$ 15,027,930$ 15,393,009$ 15,586,266$ Unrestricted 5,885,807 6,375,719 6,196,614 6,105,512 Total Business-type Activities Net Position 21,030,537$ 21,403,649$ 21,589,623$ 21,691,778$ Total Primary Government Net investment in capital assets 26,679,762$ 27,087,005$ 26,766,677$ 26,441,993$ Restricted 2,118,273 3,283,445 3,279,963 3,596,762 Unrestricted 12,093,587 12,370,956 13,355,904 13,882,744 Total Primary Government Net Position 40,891,622$ 42,741,406$ 43,402,544$ 43,921,499$ Fiscal Year Note: The City implemented GASB Statement No. 63 and GASB Statement No. 65 in fiscal 2013. Net position information has been restated for 2012 for this accounting change. Years prior to 2012 have not been restated. The City implemented GASB Statement No. 68 and GASB Statement No. 67 in fiscal 2015. Years prior to 2015 have not been restated. The City implemented GASB Statement No. 75 in fiscal 2018. Years prior to 2018 have not been restated. Net investment in capital assets 26,679,762$ 27,087,005$ 26,766,677$ 2,118,273 3,283,445 3,279,9633,279,963 12,093,587 12,370,956 13,355,90413,355,904 Total Primary Government Net PositionTotal Primary Government Net Position 40,891,62240,891,622$ 42,741,40642,741,406$ $ 43,402,54443,402,544$ $ Note: The City implemented GASB Statement No. 63 and GASB Statement No. 65 in fiscal 2013. Net position information has Note: The City implemented GASB Statement No. 63 and GASB Statement No. 65 in fiscal 2013. Net position information has been restated for 2012 for this accounting change. Years prior to 2012 have not been restated. The City implemented GASB been restated for 2012 for this accounting change. Years prior to 2012 have not been restated. The City implemented GASB Statement No. 68 and GASB Statement No. 67 in fiscal 2015. Years prior to 2015 have not been restated. The City Statement No. 68 and GASB Statement No. 67 in fiscal 2015. Years prior to 2015 have not been restated. The City implemented GASB Statement No. 75 in fiscal 2018. Years prior to 2018 have not been restated.implemented GASB Statement No. 75 in fiscal 2018. Years prior to 2018 have not been restated. 134 2014 2015 2016 2017 2018 2019 10,720,258$ 14,269,848$ 16,660,990$ 19,020,035$ 23,370,988$ 25,500,646$ 3,535,595 3,835,852 9,046,977 3,699,095 3,434,418 2,418,794 9,616,862 3,740,883 (3,794,950) 894,132 (840,224) 1,122,484 23,872,715$ 21,846,583$ 21,913,017$ 23,613,262$ 25,965,182$ 29,041,924$ 16,042,333$ 15,505,885$ 16,427,467$ 16,940,333$ 17,917,465$ 18,679,663$ 5,946,733 6,411,818 6,001,307 5,687,684 5,086,696 4,389,380 21,989,066$ 21,917,703$ 22,428,774$ 22,628,017$ 23,004,161$ 23,069,043$ 26,762,591$ 29,775,733$ 33,088,457$ 35,960,368$ 41,288,453$ 44,180,309$ 3,535,595 3,835,852 9,046,977 3,699,095 3,434,418 3,202,919 15,563,595 10,152,701 2,206,357 6,581,816 4,246,472 5,511,864 45,861,781$ 43,764,286$ 44,341,791$ 46,241,279$ 48,969,343$ 52,895,092$ Fiscal Year 29,775,733 33,088,457$ 35,960,368$ 41,288,45341,288,453$ 3,835,8523,835,852 9,046,977 3,699,095 3,434,4183,434,418 10,152,70110,152,701 2,206,357 6,581,816 4,246,4724,246,472 43,764,28643,764,286 44,341,79144,341,791$ 46,241,27946,241,279$ 48,969,34348,969,343$ $ 135 City of Orono, Minnesota Statistical Section (Unaudited) Changes in Net Position (Continued on the Following Pages) Last Ten Fiscal Years (Accrual Basis of Accounting) 2010 2011 2012 2013 Expenses Governmental activities General government 1,899,808$ 1,951,621$ 1,836,682$ 1,931,772$ Public safety 3,557,976 3,382,389 3,317,261 4,526,574 Public works 579,551 1,060,426 1,194,986 1,610,302 Culture and recreation 100,731 285,897 270,356 279,796 Recycling 100,352 106,649 104,046 - Interest on long-term debt 317,525 341,008 324,633 413,935 Total Governmental Activities Expenses 6,555,943 7,127,990 7,047,964 8,762,379 Business-type activities Water 480,513 417,843 473,191 514,522 Sewer 1,046,396 1,088,467 1,161,273 1,136,040 Storm water 94,247 108,399 126,294 145,907 Recycling 206,702 - - 114,837 Cable television - - - - Interest and fiscal charges 7,604 5,705 1,900 899 Total Business-type Activities Expenses 1,835,462 1,620,414 1,762,658 1,912,205 Total Primary Government Expenses 8,391,405$ 8,748,404$ 8,810,622$ 10,674,584$ Program Revenues Governmental activities Charges for services General government 549,384$ 551,026$ 482,883$ 646,284$ Public safety 1,183,879 1,035,105 909,170 2,544,587 Public works 3,495 18,149 165,503 128,402 Culture and recreation 38,850 258,250 129,918 149,994 Recycling 75,272 77,455 81,224 - Operating grants and contributions 486,881 715,225 586,891 627,650 Capital grants and contributions 77,478 721,962 18,806 11,187 Total Governmental Activities Program Revenues 2,415,239 3,377,172 2,374,395 4,108,104 Business-type activities Charges for services Water 382,864 401,765 502,864 436,770 Sewer 1,055,620 1,085,540 1,107,357 1,206,926 Storm water 240,258 250,197 242,563 314,415 Recycling 140,891 - - 110,912 Cable television - - - - Operating grants and contributions - - - - Capital grants and contributions 60,000 165,316 19,133 495 Total Business-type Activities Program Revenues 1,879,633 1,902,818 1,871,917 2,069,518 Total Primary Government Program Revenues 4,294,872$ 5,279,990$ 4,246,312$ 6,177,622$ Fiscal Year Interest and fiscal chargesInterest and fiscal charges 7,604 5,7055,705 Total Business-type Activities ExpensesTotal Business-type Activities Expenses 1,835,462 1,620,4141,620,414 1,762,658 Total Primary Government ExpensesTotal Primary Government Expenses 8,391,4058,391,405$$8,748,4048,748,404$8,810,6228,810,622$$ 549,384549,384$$551,026551,026$$482,883482,883$$ 1,183,8791,183,879 1,035,105 909,170 136 2014 2015 2016 2017 2018 2019 1,719,267$ 1,864,543$ 2,314,539$ 2,722,779$ 1,947,411$ 818,147$ 4,984,389 5,107,619 6,263,133 5,486,330 5,661,624 5,422,838 854,079 999,097 752,976 393,354 2,131,198 946,735 254,177 324,731 413,797 420,410 465,170 535,357 - - - - - 141,722 287,181 283,146 258,874 173,552 155,122 150,164 8,099,093 8,579,136 10,003,319 9,196,425 10,360,525 8,014,963 556,766 581,758 634,562 680,595 915,730 984,452 1,184,629 1,332,617 1,401,278 1,429,209 1,381,752 1,538,449 186,719 163,747 225,113 190,935 143,194 433,908 114,983 116,642 118,054 126,333 127,044 173,049 12,675 31,802 31,724 48,684 51,943 90,586 - - - - - - 2,055,772 2,226,566 2,410,731 2,475,756 2,619,663 3,220,444 10,154,865$ 10,805,702$ 12,414,050$ 11,672,181$ 12,980,188$ 11,235,407$ 692,254$ 736,643$ 770,750$ 947,851$ 1,147,449$ 966,665$ 2,570,751 2,737,342 2,720,584 2,947,439 3,102,546 2,656,733 2,998 3,933 5,108 385 5,826 881,011 207,977 499,083 420,184 195,449 389,206 86,501 - - - - - - 925,968 732,114 671,059 1,174,782 1,741,370 419,114 22,060 13,549 1,070 609 820,165 649,359 4,422,008 4,722,664 4,588,755 5,266,515 7,206,562 5,659,383 452,429 492,947 594,198 629,736 699,562 871,125 1,200,043 1,297,786 1,505,467 1,408,480 1,477,225 1,600,046 318,787 527,255 538,870 289,643 421,838 361,199 113,501 128,387 142,470 140,218 136,922 131,013 71,412 99,632 77,511 76,352 78,716 80,237 34,500 34,500 34,500 - 34,500 21,058 178,371 16,765 - 45,218 7,400 253,370 2,369,043 2,597,272 2,893,016 2,589,647 2,856,163 3,318,048 6,791,051$ 7,319,936$ 7,481,771$ 7,856,162$ 10,062,725$ 8,977,431$ Fiscal Year 31,802 31,724 48,684 51,943 90,58690,586 ------ 2,226,5662,226,566 2,410,7312,410,731 2,475,756 2,619,663 3,220,4443,220,444 10,805,70210,805,702 12,414,05012,414,050$11,672,18111,672,181$12,980,18812,980,188$$11,235,40711,235,407$$ 736,643736,643 770,750770,750$$947,851947,851$1,147,4491,147,449$$966,665966,665$ 2,737,342 2,720,584 2,947,439 3,102,5463,102,546 2,656,733 137 City of Orono, Minnesota Statistical Section (Unaudited) Changes in Net Position (Continued) Last Ten Fiscal Years (Accrual Basis of Accounting) 2010 2011 2012 2013 Net Revenues (Expenses) Governmental activities (4,140,704)$ (3,750,818)$ (4,673,569)$ (4,654,275)$ Business-type activities 44,171 282,404 109,259 157,313 Total Primary Government Net Revenues (Expenses) (4,096,533)$ (3,468,414)$ (4,564,310)$ (4,496,962)$ General Revenues and Other Changes in Net Position Governmental activities Taxes Property taxes 4,364,416$ 4,728,470$ 4,716,941$ 4,746,856$ Tax increments - - - - Grants and contributions not restricted to specific programs - - - - Other general revenues 293,916 186,397 139,494 214,876 Unrestricted investment earnings 215,289 121,403 126,298 (81,067) Gain on sale of capital assets 22,369 20,813 - 24,410 Transfers (1,396,672) 170,407 166,000 166,000 Total Governmental Activities 3,499,318 5,227,490 5,148,733 5,071,075 Business-type activities Other general revenues 203,874 201,462 183,619 130,550 Grants and contributions not restricted to specific programs Unrestricted investment earnings 62,482 59,653 59,096 (19,708) Gain on sale of capital assets - - - - Transfers 1,396,672 (170,407) (166,000) (166,000) Total Business-type Activities 1,663,028 90,708 76,715 (55,158) Total Primary Government 5,162,346$ 5,318,198$ 5,225,448$ 5,015,917$ Change in Net Position Governmental activities (641,386)$ 1,476,672$ 475,164$ 416,800$ Business-type activities 1,707,199 373,112 185,974 102,155 Total Primary Government 1,065,813$ 1,849,784$ 661,138$ 518,955$ Note: The City implemented GASB Statement No. 63 and GASB Statement No. 65 in fiscal 2013. Net position information has been restated for 2012 for this accounting change. Years prior to 2012 have not been restated. The City implemented GASB Statement No. 68 and GASB Statement No. 67 in fiscal 2015. Years prior to 2015 have not been restated. The City implemented GASB Statement No. 75 in fiscal 2018. Years prior to 2018 have not been restated. Fiscal Year (1,396,672)170,407170,407 166,000 Total Governmental ActivitiesTotal Governmental Activities 3,499,318 5,227,4905,227,490 5,148,733 Other general revenuesOther general revenues 203,874 201,462201,462 183,619 Grants and contributions not restricted to specific programsGrants and contributions not restricted to specific programs Unrestricted investment earningsUnrestricted investment earnings 62,48262,482 59,65359,653 Gain on sale of capital assetsGain on sale of capital assets --- 1,396,6721,396,672 (170,407)(170,407)(166,000)(166,000) 138 2014 2015 2016 2017 2018 2019 (3,677,085)$ (3,856,472)$ (5,414,564)$ (3,929,910)$ (3,153,963)$ (2,355,580)$ 313,271 370,706 482,285 113,891 236,500 97,604 (3,363,814)$ (3,485,766)$ (4,932,279)$ (3,816,019)$ (2,917,463)$ (2,257,976)$ 4,809,875$ 4,819,345$ 5,021,340$ 5,268,854$ 5,510,133$ 5,630,633$ - - - - - 76,344 - - - - - 26,372 17,337 44,051 149,388 53,207 193,279 - 215,606 144,252 109,752 114,356 132,799 259,332 7,961 6,466 45,518 38,738 - 63,105 269,300 320,209 155,000 155,000 (41,000) 160,661 5,320,079 5,334,323 5,480,998 5,630,155 5,795,211 6,216,447 163,719 141,546 160,967 185,909 79,683 - - 124,098 67,076 57,319 54,443 51,588 127,939 - - - - - - (269,300) (320,209) (155,000) (155,000) 41,000 (160,661) 18,517 (111,587) 63,286 85,352 172,271 (32,722) 5,338,596$ 5,222,736$ 5,544,284$ 5,715,507$ 5,967,482$ 6,183,725$ 1,642,994$ 1,477,851$ 66,434$ 1,700,245$ 2,641,248$ 3,860,867$ 331,788 259,119 545,571 199,243 408,771 64,882 1,974,782$ 1,736,970$ 612,005$ 1,899,488$ 3,050,019$ 3,925,749$ Fiscal Year 320,209 155,000 155,000 (41,000)160,661160,661 5,334,3235,334,323 5,480,9985,480,998 5,630,155 5,795,211 6,216,4476,216,447 141,546141,546 160,967160,967 185,909185,909 79,68379,683 -- -- 67,07667,076 57,31957,319 54,443 51,58851,588 127,127,939939 ------- (320,209)(320,209)(155,000)(155,000)(155,000)(155,000)41,00041,000 (160,661)(160,661) 139 City of Orono, Minnesota Statistical Section (Unaudited) Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified Accrual Basis of Accounting) 2010 2011 2012 2013 General Fund Reserved 19,586$ -$ -$ -$ Unreserved 3,250,931 - - - Nonspendable - 31,213 66,296 30,909 Unassigned - 3,509,254 3,133,691 3,354,809 Total General Fund 3,270,517$ 3,540,467$ 3,199,987$ 3,385,718$ All Other Governmental Funds Reserved 3,362,303$ -$ -$ -$ Unreserved, reported in Special revenue funds 989,749 - - - Capital project funds 6,682,480 - - - Debt service funds (4,407) - - - Nonspendable - - 1,189 - Restricted - 5,924,524 4,912,412 3,455,223 Committed - - - - Assigned - 3,646,933 3,888,083 4,133,893 Unassigned - - - - Total All Other Governmental Funds 11,030,125$ 9,571,457$ 8,801,684$ 7,589,116$ Note: GASB Statement No. 54 replaced the categories used to classify fund balance. The City implemented GASB Statement No. 54 in 2011, prior year balances were not reclassified. Fiscal Year (4,407) ---1,189 -5,924,5245,924,524 4,912,4124,912,412 ---- -3,646,9333,646,933 3,888,0833,888,083 --- Total All Other Governmental FundsTotal All Other Governmental Funds 11,030,12511,030,125$$9,571,4579,571,457$8,801,6848,801,684$ 140 2014 2015 2016 2017 2018 2019 -$ -$ -$ -$ -$ -$ - - - - - - 40,532 74,800 25,376 13,277 118,170 119,157 3,886,128 4,233,687 4,400,222 4,433,559 4,336,396 4,288,536 3,926,660$ 4,308,487$ 4,425,598$ 4,446,836$ 4,454,566$ 4,407,693$ -$ -$ -$ -$ -$ -$ - - - - - - - - - - - - - - - - - - - - - - - - 3,625,599 3,957,346 6,383,149 3,685,145 3,495,176 3,250,008 - - - - - 16,741 4,029,776 2,951,616 3,358,915 3,148,848 2,403,358 2,721,806 - (178,573) (872,147) (1,050,959) (2,759,730) (2,676,572) 7,655,375$ 6,730,389$ 8,869,917$ 5,783,034$ 3,138,804$ 3,311,983$ Fiscal Year ------ 3,957,3463,957,346 6,383,1496,383,149 3,685,145 3,495,1763,495,176 3,250,008 ------- 2,951,6162,951,616 3,358,9153,358,915 3,148,8483,148,848 2,403,3582,403,358 2,721,806 (178,573)(178,573)(872,147)(872,147)(1,050,959)(1,050,959)(2,759,730)(2,759,730)(2,676,572) 6,730,3896,730,389 8,869,9178,869,917$5,783,0345,783,034$3,138,8043,138,804$$3,311,983$$ 141 City of Orono, Minnesota Statistical Section (Unaudited) Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified Accrual Basis of Accounting) 2010 2011 2012 2013 Revenues Taxes 4,742,169$ 4,761,488$ 4,724,264$ 4,785,052$ Licenses and permits 411,155 592,111 509,300 613,184 Intergovernmental 472,366 542,711 393,148 421,485 Charges for services 1,212,527 1,029,515 979,122 2,474,211 Fines and forfeitures 182,719 141,304 159,673 175,321 Investment earnings 199,131 110,215 114,624 61,335 Special assessments 193,865 272,772 115,518 68,413 Miscellaneous 66,063 74,676 255,633 205,078 Total Revenues 7,479,995 7,524,792 7,251,282 8,804,079 Expenditures Current General government 1,441,065 1,294,803 1,263,916 1,242,028 Public safety 3,501,180 3,402,270 3,248,071 4,734,635 Streets 450,403 458,040 425,192 508,544 Culture and recreation 58,498 241,789 238,424 255,395 Community development - - - - Recycling 100,352 106,649 104,046 - Capital outlay 810,071 758,654 1,795,760 1,683,159 Debt service Principal 925,000 2,285,000 1,110,000 1,145,000 Interest and other charges 321,682 357,525 362,629 328,633 Total Expenditures 7,608,251 8,904,730 8,548,038 9,897,394 Deficiency of Revenues under expenditures (128,256) (1,379,938) (1,296,756) (1,093,315) Other Financing Sources (Uses) Transfers in 3,063,840 530,407 1,752,437 866,000 Transfers out (4,998,351) (360,000) (1,586,437) (700,000) Bond proceeds 3,120,000 - - - Premium on bonds issued 110,597 - - - Refunding bonds issued 1,195,000 - - - Capital lease proceeds 14,000 - - - Sale of capital assets 22,369 20,813 20,503 30,110 Total Other Financing Sources (Uses) 2,527,455 191,220 186,503 196,110 Net Change in Fund Balances 2,399,199$ (1,188,718)$ (1,110,253)$ (897,205)$ Debt Service as a Percentage of Noncapital Expenditures 18.30% 31.20% 20.10% 16.50% Fiscal Year (1) The Water Revenue Bonds and Sewer Revenue Bonds debt service funds and the Water Connection, Sewer Connection, and Water System Improvements capital projects funds were reclassified from governmental to enterprise (business-type) in 2013. Activity prior to 2012 has not been restated for this change. 58,498 241,789241,789 238,424 --- 100,352 106,649106,649 104,046 810,071810,071 758,654758,654 1,795,7601,795,760 925,000925,000 2,285,0002,285,000 1,110,000 Interest and other chargesInterest and other charges 321,682321,682 357,525357,525 362,629 7,608,2517,608,251 8,904,7308,904,730 8,548,038 142 2014 2015 2016 2017 2018 2019 4,840,777$ 4,839,722$ 5,057,941$ 5,258,546$ 5,448,238$ 5,709,173$ 675,204 846,343 715,281 613,218 954,278 742,042 745,062 545,236 496,497 1,025,044 1,616,583 966,874 2,569,831 2,896,458 2,973,534 3,165,196 3,211,749 3,647,122 153,821 134,754 133,354 101,824 124,060 299,661 195,862 133,204 97,843 105,079 122,659 259,332 62,632 70,349 8,537 2,226 22,935 22,783 58,012 64,867 143,976 66,122 171,219 73,649 9,301,201 9,530,933 9,626,963 10,337,255 11,671,721 11,720,636 1,282,487 1,285,064 1,362,293 1,474,265 1,433,076 1,271,893 4,906,572 4,906,117 5,073,430 5,298,939 5,628,086 5,446,200 454,964 496,239 480,765 486,138 595,740 773,965 231,356 268,831 281,340 304,333 421,996 480,870 - - - - - 141,722 4,572 - - 1,590 - - 3,973,460 2,114,343 1,721,077 2,150,260 5,771,819 2,607,061 1,900,000 1,010,000 1,085,788 3,556,024 660,000 890,000 302,728 331,317 344,562 237,286 187,404 184,385 13,056,139 10,411,911 10,349,255 13,508,835 14,698,121 11,796,096 (3,754,938) (880,978) (722,292) (3,171,580) (3,026,400) (75,460) 905,848 1,451,397 1,565,385 1,262,405 1,486,307 1,678,274 (636,548) (1,131,188) (1,410,385) (1,107,405) (1,217,307) (1,517,613) 4,070,177 - - - - - - - 94,956 - - - - - 2,680,000 - - - - - - - - - 22,662 17,610 48,975 38,738 33,097 41,105 4,362,139 337,819 2,978,931 193,738 302,097 201,766 607,201$ (543,159)$ 2,256,639$ (2,977,842)$ (2,724,303)$ 126,306$ 24.20% 15.80% 16.40% 33.70% 8.60% 11.43% Fiscal Year 268,831 281,340 304,333 421,996 480,870480,870 -----141,722141,722 --1,590 --- 2,114,3432,114,343 1,721,0771,721,077 2,150,2602,150,260 5,771,8195,771,819 2,607,0612,607,061 1,010,0001,010,000 1,085,7881,085,788 3,556,0243,556,024 660,000660,000 890,000890,000 331,317331,317 344,562344,562 237,286 187,404187,404 184,385184,385 10,411,91110,411,911 10,349,25510,349,255 13,508,83513,508,835 14,698,12114,698,121 11,796,09611,796,096 143 City of Orono, Minnesota Statistical Section (Unaudited) Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years Fiscal Year Total Taxable Ended Residential Commercial Industrial Total Assessed Total Direct December 31, (1) Property Property Property Market Value Value Tax Rate 2010 2,694,887,700$ 60,108,100$ 7,692,800$ 2,762,688,600$ 31,561,399$13.677 1.14 % 2011 2,504,169,400 56,939,100 7,672,400 2,568,780,900 29,065,900 14.991 1.14 2012 2,319,999,400 54,284,700 7,771,200 2,382,055,300 26,790,406 16.283 1.12 2013 2,353,751,300 53,032,100 9,618,500 2,416,401,900 26,531,505 17.667 1.10 2014 2,367,078,691 52,385,700 11,937,300 2,431,401,691 27,566,309 17.815 1.13 2015 2,468,589,098 50,003,300 12,831,100 2,531,423,498 28,749,183 17.387 1.14 2016 2,664,593,042 51,885,300 14,602,600 2,731,080,942 28,351,935 17.352 1.04 2017 2,810,505,878 53,590,300 15,428,800 2,879,524,978 32,961,379 1.759 1.14 2018 2,932,517,796 49,881,300 20,720,700 3,003,119,796 34,422,178 16.555 1.15 2019 3,094,297,060 54,320,300 21,603,800 3,170,221,160 36,465,048 16.406 1.15 Source: Hennepin County Assessor. (1) Represents the year the taxes are payable, not the year the taxes are levied. Real Property Tax Capacity Actual Value Percentage of Value as a Assessed 144 City of Orono, Minnesota Statistical Section (Unaudited) Property Tax Rates - Direct and Overlapping Governments Last Ten Fiscal Years Fiscal Special Year Districts 2010 11.415 % 2.262 % 13.677 % 17.013 % 42.640 % 9.649 % 82.979 % 2011 12.552 2.439 14.991 19.380 45.840 10.841 91.052 2012 13.634 2.649 16.283 19.939 48.231 11.228 95.681 2013 14.826 2.841 17.667 22.325 49.461 11.858 101.311 2014 14.951 2.864 17.815 22.802 49.959 12.367 102.943 2015 14.633 2.754 17.387 22.601 46.398 9.785 96.171 2016 14.685 2.640 17.325 23.166 45.356 9.520 95.367 2017 14.328 2.431 16.759 23.352 44.087 11.057 95.255 2018 14.391 2.164 16.555 24.024 42.808 10.667 94.054 2019 14.336 2.070 16.406 23.552 41.861 10.119 91.938 Source: Hennepin County Assessing Department Rates School Overlapping Direct & No. 278 County District City of Orono Hennepin Total Millage RateMillage Operating Debt Service Total Direct 145 City of Orono, Minnesota Statistical Section (Unaudited) Principal Property Taxpayers Current and Nine Years Ago Net Net Tax Tax Taxpayer Capacity Rank Capacity Rank Private Residence 244,388$ 1 0.67 % 218,875$ 1 0.69 % Private Residence 148,775 2 0.41 154,268 2 0.49 123,488 3 0.34 153,338 3 0.49 Private Residence 121,021 4 0.33 149,156 4 0.47 107,550 5 0.29 138,039 5 0.44 107,190 6 0.29 116,090 8 0.37 107,013 7 0.29 102,375 8 0.28 122,114 7 0.39 1725 Bohns Point LLC 96,975 9 0.27 Private Residence 91,116 10 0.25 108,401 9 0.34 106,639 10 0.34 124,630 6 0.39 Total 1,249,891$ 3.43 % 1,391,550$ 4.41 % Source: Hennepin County Assessor's Office WJM Properties LLC Wayzata Country Club Private Residence Private Residence Private Residence TonkaHome Holdings LLC Private Residence Tax Capacity Tax Capacity 2019 2010 Percent of Percent of Total Net Total Net Source: Hennepin County Assessor's OfficeSource: Hennepin County Assessor's Office 146 City of Orono, Minnesota Statistical Section (Unaudited) Property Tax Levies and Collections Last Ten Fiscal Years Total Tax Collection Collection Fiscal Levy for of Current of Prior Total Year Fiscal Year Year's Levy Years' Levy Collections 2010 4,665,880$ 4,518,619$ 96.84 % 197,189$ 4,715,808$ 101 % 2011 4,702,558 4,599,372 97.81 167,249 4,766,621 101 2012 4,702,558 4,632,847 98.52 133,075 4,765,922 101 2013 4,701,750 4,677,698 99.49 67,699 4,745,397 101 2014 4,743,144 4,701,760 99.13 141,552 4,843,312 102 2015 4,772,000 4,748,327 99.50 209,651 4,957,978 104 2016 4,954,480 4,968,026 * 100.27 119,121 5,087,147 103 2017 5,205,230 5,235,100 * 100.57 121,505 5,356,605 103 2018 5,439,951 5,379,375 98.89 141,437 5,520,812 101 2019 5,816,338 5,635,838 96.90 43,465 5,679,303 98 Source: Hennepin County Treasurer - Auditor. * In 2016 and 2017 the City collected slightly more taxes than they levied for as some residents chose to prepay their property taxes. Collected to Levy Percentage Percentage of Total of Levy Collections Source: Hennepin County Treasurer - Auditor.Source: Hennepin County Treasurer - Auditor. * In 2016 and 2017 the City collected slightly more taxes than they levied for as some residents chose to prepay their * In 2016 and 2017 the City collected slightly more taxes than they levied for as some residents chose to prepay their 147 City of Orono, Minnesota Statistical Section (Unaudited) Ratios of Outstanding Debt by Type Last Ten Fiscal Years General General Total Fiscal Obligation (G.O.) Public Facility Capital Obligation (G.O.)Primary Per Year Bonds Bonds Leases Bonds Government Capita 2010 9,850,000$ 3,215,000$ 13,398$ -$ 13,078,398$ 2.52 % 1,759$ 2011 9,365,000 1,415,000 10,928 - 10,790,928 2.32 1,451 2012 8,430,000 1,240,000 8,357 - 9,678,357 2.08 1,303 2013 7,470,000 1,055,000 5,682 - 8,530,682 1.46 1,125 2014 10,620,000 - 17,374 1,280,000 11,917,374 1.99 1,566 2015 9,610,000 - 11,812 1,195,000 10,816,812 2.14 1,389 2016 11,431,701 - 6,024 1,138,557 12,576,282 1.84 1,635 2017 7,660,000 - - 1,045,000 8,705,000 1.20 1,068 2018 7,000,000 - - 965,000 7,965,000 1.03 983 2019 6,110,000 - - 885,000 6,995,000 0.84 846 Details regarding the City's outstanding debt can be found in the notes to the financial statements. See the Schedule of Demographic and Economic Statistics for personal income and population data. Percentage of Personal Income Business-type Governmental Activities See the Schedule of Demographic and Economic Statistics for personal income and population data.See the Schedule of Demographic and Economic Statistics for personal income and population data. 148 City of Orono, Minnesota Statistical Section (Unaudited) Ratios of General Bonded Debt Outstanding Last Ten Fiscal Years Governmental Business-type Activities Activities Less General General Amounts Net Fiscal Obligation Obligation Restricted for Bonded Year Bonds Bonds Debt Service Debt Per Capita (2) 2010 13,065,000$ -$ 3,262,816$ 9,802,184$ 0.35 % 1,318$ 2011 10,780,000 - 1,972,796 8,807,204 0.34 1,184 2012 8,430,000 - 1,898,787 6,531,213 0.27 879 2013 7,470,000 - 1,571,736 5,898,264 0.24 778 2014 10,620,000 - 1,189,565 9,430,435 0.39 1,239 2015 9,610,000 1,195,000 2,209,951 8,595,049 0.34 1,104 2016 11,431,701 1,138,557 7,550,955 5,019,303 0.18 653 2017 7,660,000 1,045,000 1,854,112 6,850,888 0.24 841 2018 7,000,000 965,000 2,080,923 5,884,077 0.20 746 2019 6,110,000 885,000 3,250,008 2,859,992 0.09 353 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 See the Schedule of Assessed Value and Estimated Actual Value of Taxable Property for property value data. 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.(2) Population data can be found in the Schedule of Demographic and Economic Statistics. 149 150 Estimated Share Total Debt of Overlapping Outstanding Sinking Funds Net Debt Debt Direct Debt: City of Orono 4,105,000$ 2,152,828$ 1,952,172$ 100.00 % 1,952,172$ ISD No. 278 (Orono) 66,400,000 2,817,720 63,582,280 52.52 33,393,414 ISD No. 276 (Minnetonka) 110,895,000 2,942,491 107,952,509 0.20 215,905 ISD No. 277 (Westonka) 40,425,000 775,790 39,649,210 26.28 10,419,812 ISD No. 284 (Wayzata) 223,335,000 11,686,264 211,648,736 0.95 2,010,663 Hennepin County 990,655,000 7,422,004 983,232,996 1.86 18,288,134 Hennepin Suburban Park 54,325,000 15,201,098 39,123,902 2.62 1,025,046 Hennepin Regional RR Authority 98,385,000 6,785,628 91,599,372 1.86 1,703,748 Metropolitan Council 265,680,000 123,096,295 142,583,705 0.94 1,340,287 1,850,100,000 170,727,290 1,679,372,710 68,397,009 70,349,181$ (1) Note 1: Note: Source 1: Source 2: Overlapping Debt: Applicable Percentage Governmental Unit City of Orono, Minnesota Direct and Overlapping Governmental Activities Debt as of December 31, 2018 Estimated Statistical Section (Unaudited) Hennepin County Total Overlapping Debt Assessed value data used to estimate applicable percentages provided by the County Board of Equalization and Assessment. Debt outstanding data provided by the county. Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the City. This process recognizes that, when considering the government’s ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident and, therefore, responsible for repaying the debt of each overlapping government. The percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the City. Excludes revenue and special assessment bonds. Total Direct and Overlapping Debt Overlapping governmentsOverlapping governments areare those that coincide, at leastthose that coincide, at least inin part,part,withwith the geographic boundaries ofgeographic boundaries of schedule estimatesschedule estimates thethe portion ofportion of the outstanding debt of those overlapping governments thatoutstanding debt of those overlapping governments that The percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable The percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable Overlapping governmentsOverlapping governments are those that coincide, at leastthose that coincide, at least in part,part,withwith the geographic boundaries ofgeographic boundaries of schedule estimatesschedule estimates the portion of thethe outstanding debt of those overlapping governments thatoutstanding debt of those overlapping governments that and businesses of the City. Excludes revenue and special assessment bonds.and businesses of the City. Excludes revenue and special assessment bonds. 151 City of Orono, Minnesota Statistical Section (Unaudited) Legal Debt Margin Information Last Ten Fiscal Years 2010 2011 2012 2013 Debt Limit 82,824,237$ 77,063,427$ 71,461,659$ 72,492,057$ Total Net Debt Applicable to Limit 9,802,184 9,014,895 6,898,136 6,319,308 Legal Debt Margin 73,022,053$ 68,048,532$ 64,563,523$ 66,172,749$ Total Net Debt Applicable to the Limit as a Percent of Debt Limit 11.83% 11.70% 9.65% 8.72% Fiscal Year Note: Under state law, the City's outstanding general obligation debt should not exceed 3 percent of the market value of taxable property. Net debt is payable solely from ad valorem taxes and, therefore, excludes debt financed partially or entirely by special assessments, enterprise fund revenues, or tax increments. Prior to 2008, state law provided that general obligation debt should not exceed 2 percent. By law, the general obligation debt subject to the limitation may be offset by amounts set aside for the extinguishment of those obligations. Note: Under state law, the City's outstanding general obligation debt should not exceed 3 percent of the market value of Note: Under state law, the City's outstanding general obligation debt should not exceed 3 percent of the market value of 152 2014 2015 2016 2017 2018 2019 72,942,051$ 75,942,705$ 81,932,428$ 86,385,749$ 90,093,594$ 95,106,635$ 10,660,892 8,714,780 8,062,670 8,705,000 5,884,077 4,842,172 62,281,159$ 67,227,925$ 73,869,758$ 77,680,749$ 84,209,517$ 90,264,463$ 14.62% 11.48% 9.84% 10.08% 6.53% 5.09% Taxable Market Value 3,170,221,160$ Debt Limit (3 Percent of Market Value)95,106,635$ Debt Applicable to Limit General obligation bonds 6,995,000 Less: amount available in debt service funds (2,152,828) Total Net Debt Applicable to Limit 4,842,172 Legal Debt Margin 90,264,463$ Fiscal Year Legal Debt Margin Calculation for Fiscal Year 2019 Debt Limit (3 Percent of Market Value)Debt Limit (3 Percent of Market Value)$ Debt Applicable to LimitDebt Applicable to Limit General obligation bondsGeneral obligation bonds Less: amount available in debt service fundsLess: amount available in debt service funds Total Net Debt Applicable to LimitTotal Net Debt Applicable to Limit Legal Debt MarginLegal Debt Margin $ 153 City of Orono, Minnesota Statistical Section (Unaudited) Pledged Revenue Coverage Last Ten Fiscal Years Water Less Net Fiscal Charges Operating Available Year and other (2) Expense (1) Revenue Principal (5) Interest Total 2015 615,569$ 577,320$ 38,249$ 85,000$ 31,680$ 116,680$ 33.00 % 2016 706,460 624,253 82,207 75,000 74,044 149,044 55.00 2017 746,514 643,048 103,466 75,000 25,181 100,181 103.00 2018 714,159 818,330 (104,171) 80,000 21,480 101,480 (103.00) 2019 854,551 782,665 71,886 80,000 22,031 102,031 70.46 Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. (1) Excludes depreciation expense. (2) There are no water fund debt service requirements before 2013. (3) There are no sewer fund debt service requirements before 2013. (4) There are no golf course debt service requirements after 2012. (5) Excludes refunded principal paid through cash held with fiscal agent ($2,380,000 in 2013, $2,885,000 in 2014). (6) Excludes refunded principal paid through escrow agent ($4,780,000 in 2014). Debt Service Water G.O. Revenue Bonds Coverage (5) Excludes refunded principal paid through cash held with fiscal agent ($2,380,000 in 2013, $2,885,000 in 2014).(5) Excludes refunded principal paid through cash held with fiscal agent ($2,380,000 in 2013, $2,885,000 in 2014). (6) Excludes refunded principal paid through escrow agent ($4,780,000 in 2014).(6) Excludes refunded principal paid through escrow agent ($4,780,000 in 2014). 154 City of Orono, Minnesota Statistical Section (Unaudited) Demographic and Economic Statistics Last Ten Fiscal Years Education Per Capita Level in Years School Fiscal Population Personal Personal Median of Formal Enrollment Year (1) Income Income Age (2) Schooling (3) 2010 7,437 518,009,361$ 69,653$ 45 - 2,765 2.9 % 2011 7,437 484,396,028 62,444 35 15 2,706 5.3 2012 7,428 572416536 77,062 45 - 2,711 4.8 2013 7,584 584,726,400 77,100 46 - 2,760 4.8 2014 7,611 597,463,500 78,500 46 - 2,757 2.9 2015 7,785 506,281,905 65,033 46 - 2,808 2.8 2016 7,691 685,014,271 89,067 43 - 2,790 3.3 2017 8,147 724,455,244 89,923 47 - 2,807 2.6 2018 7,883 770,192,324 95,062 47 - 2,820 2.5 2019 8,102 837,374,772 101,279 47 - 2,850 2.5 Note: Information on education level was only available in 2010 census data. Data sources (1) Metropolitan Council Estimate in non census years. 2010 based on census data. 2017 based on U.S. Census estimate. (2) Hennepin County average/median for non-census years. 2010 based on census data. (3) Minnesota Department of Education, as reported by ISD No. 278 (Orono). (4) Minnesota Department of Economic Security; Hennepin County average for non-census years. 2010 based on census data. Rate (4) Unemployment Hennepin County average/median for non-census years. 2010 based on census data.Hennepin County average/median for non-census years. 2010 based on census data. Minnesota Department of Education, as reported by ISD No. 278 (Orono).Minnesota Department of Education, as reported by ISD No. 278 (Orono). Minnesota Department of Economic Security; Hennepin County average for non-census years. 2010 based on census data.Minnesota Department of Economic Security; Hennepin County average for non-census years. 2010 based on census data. 155 156 City of Orono, Minnesota Statistical Section (Unaudited) Principal Employers Current Year and Nine Years Ago Employees Rank Employees Rank 393 1 21.83 500 1 31.25 250 2 13.89 200 2 12.50 180 3 10.00 125 3 7.81 104 4 5.78 100 5 5.56 100 4 6.25 90 6 5.00 80 5 5.00 75 7 4.17 60 6 4 60 8 3.33 43 8 2.69 City of Orono 54 9 3.00 52 7 3 Morries' Automotive 28 10 1.56 23 10 1.44 30 9 1.88 Total 1,334 74.12 % 1,213 75.82 % Source: City of Orono and State Department of Commerce and Employers ISD No. 278 (Orono) Culver's Service 800 Otten Brothers Wayzata Country Club Woodhill Country Club Jem Technical Lunds Springhill Country Club 2019 2010 Employment Employment Percent Percent of City of City Source: City of Orono and State Department of Commerce and EmployersSource: City of Orono and State Department of Commerce and Employers 157 City of Orono, Minnesota Statistical Section (Unaudited) Full-time Equivalent Employees by Function Last Ten Fiscal Years 2010 2011 2012 2013 2014 2015 General Government 7 7 7 7 7 8 Public Safety Police Officers 18 17 17 30 28 27 Civilians 4 3 3 4 4 4 Code Enforcement 7 6 6 6 6 6 Public Works 4 4 5 5 5 5 Parks (1) - - - - - - Water 2 2 2 2 2 2 Sewer 3 3 3 3 3 3 Storm Water 1 1 1 1 1 1 Golf 3 3 3 3 5 5 Total 46 43 44 59 59 59 Source: City budgets and personnel records. Function Source: City budgets and personnel records.Source: City budgets and personnel records. 158 2016 2017 2018 2019 8 8 8 8 27 27 30 30 4 4 4 4 5 4 5 5 5 5 5 5 - - 1 1 2 2 3 3 3 3 3 3 1 1 1 1 5 5 3 3 58 57 61 61 159 City of Orono, Minnesota Statistical Section (Unaudited) Operating Indicators by Function Last Ten Fiscal Years 2010 2011 2012 2013 2014 2015 Public Safety Police Initial reports 6,573 5,728 6,688 12,128 10,990 10,056 Citations 2,543 2,086 1,982 3,228 2,437 1,495 Building/Zoning Building permits issued 549 858 441 449 485 470 Land use applications 38 35 48 24 56 63 Water New connections 1,005 998 1,003 1,036 1,036 1,023 Radio read meters - start 2004 720 808 927 1,001 1,036 1,010 Annual water pumped (thousands of gallons) 107,831 116,370 125,005 108,486 96,006 95,701 Waste Water New connections 2,173 2,215 2,231 2,225 2,218 2,238 Annual sewer flow (thousands of gallons) (2) 172,780 173,649 177,360 186,310 190,710 201,000 Storm Water Sweeping (centerline Miles) (1) 46 46 46 46 46 46 Drainage projects - 2 1 1 1 1 Golf Rounds played 13,927 12,041 10,067 6,990 10,890 14,334 Sources: City department records. (2) 2017 data received from Metropolitan Council Function (1) Historical data is based on the miles of roads that was included in each sweeping. 2017 data is bases on the miles of road that was swept in total. (thousands of gallons) (2)(thousands of gallons) (2)172,780172,780 173,649 177,360 186,310186,310 Sweeping (centerline Miles) (1)Sweeping (centerline Miles) (1)46 4646 4646 4646 -2 1 11 13,927 12,04112,041 10,06710,067 6,9906,990 160 2016 2017 2018 2019 9,320 6,462 5,875 4,997 1,929 1,509 1,675 1,331 466 518 535 660 59 110 81 95 1,036 1,041 1,087 1,109 1,024 1,029 1,072 1,096 96,936 108,627 108,923 106,490 2,243 2,256 2,287 2,352 211,900 173,840 195,420 219,740 46 92 46 46 3 3 7 6 11,976 11,387 7,007 7,289 173,840173,840 195,420195,420 219,740 9292 46 4646 33 7 66 11,38711,387 7,0077,007 7,2897,289 161 City of Orono, Minnesota Statistical Section (Unaudited) Capital Asset Statistics by Function Last Ten Fiscal Years 2010 2011 2012 2013 2014 2015 Public Safety Police Stations 1 1 1 1 1 1 Patrol units 11 11 11 14 14 14 Fire stations 1 1 1 1 1 1 Public Works Highways and streets Streets (miles) 46 46 46 46 46 46 Street lights (1) 135 135 135 135 135 135 Culture and Recreation Parks acreage (2) 197 228 228 228 228 228 Parks 21 22 22 22 22 22 Beaches 4 4 4 4 4 4 Utilities Water Miles of water main 18 18 18 18 18 18 Wells 3 3 3 3 3 3 Water plants 2 2 2 2 2 2 Maximum daily capacity (thousands of gallons) 2,160 2,160 2,160 2,160 2,160 2,160 Sewer Miles of sanitary sewer 47 47 47 47 47 47 Pumping stations 46 46 46 46 46 46 Golf Clubhouse 1 1 1 1 1 1 Holes 9 9 9 9 9 9 Source: City department records. (1) Historical streetlights was adjusted to reflect updated inforamtion (2) Historical park acerage was adjusted to reflect updated information Note: No capital asset indicators are avaliable for the general government functions Function 3 3 3 3 2 2 2 22 Maximum daily capacity Maximum daily capacity (thousands of gallons)(thousands of gallons)2,1602,160 2,1602,160 2,1602,160 2,1602,160 Miles of sanitary sewerMiles of sanitary sewer 47 47 4747 4747 46 4646 4646 4646 1 11 1 11 9 99 99 9 162 2016 2017 2018 2019 1 1 1 1 14 14 14 14 1 1 1 1 46 46 46 46 135 135 135 148 228 228 228 228 22 22 22 22 4 4 4 4 18 23 23 23 4 4 4 4 2 2 2 2 3,800 3,800 3,800 3,800 47 61 61 62 46 46 45 45 1 1 1 1 9 9 9 9 4 4 4 22 22 2 3,8003,800 3,800 3,8003,800 6161 61 6262 4646 45 4545 11 11 1 99 9 9 163 City of Orono Orono, Minnesota For the Year Ended December 31, 2019 Management Communication City of Orono Orono, Minnesota For the Year EndedFor the Year Ended December 31, December 31, 2019 NEED DATE Management, Honorable Mayor and City Council City of Orono, Minnesota We have audited the financial statements of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of the City of Orono, Minnesota, (the City) for the year ended December 31, 2019. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated December 10, 2019. Professional standards also require that we communicate to you the following information related to our audit. Our Responsibility Under Auditing Standards Generally Accepted in the United States of America As stated in our engagement letter, our responsibility, as described by professional standards, is to express opinions about whether the financial statements prepared by management with your oversight are fairly presented, in all material respects, in conformity with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your responsibilities. Our responsibility is to plan and perform the audit to obtain reasonable, but not absolute, assurance that the financial statements are free of material misstatement. As part of our audit, we considered the internal control over financial reporting (internal control) of the City. Such considerations were solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control. We are responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures specifically to identify such matters. Significant Audit Findings In planning and performing our audit of the financial statements, we considered the School'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 School’s internal control. Accordingly, we do not express an opinion on the effectiveness of the School’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 entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. financial statements does not relieve you or management of your responsibilities.financial statements does not relieve you or management of your responsibilities. Our responsibility is to plan and perform the audit to obtain reasonable, but not absolute, assurance that the finanOur responsibility is to plan and perform the audit to obtain reasonable, but not absolute, assurance that the finan statements are free of material misstatement. As part of our audit, we considered the internal control over financial statements are free of material misstatement. As part of our audit, we considered the internal control over financial reporting (internal control) of the City. Such considerations were solely for the purpose of determining our audit reporting (internal control) of the City. Such considerations were solely for the purpose of determining our audit to provide any assurance concerning such internal control. We are responsible for communicating to provide any assurance concerning such internal control. We are responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseesignificant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in oversee the financial reporting process. However, we are not required to design procedures specifically to identify such matters.the financial reporting process. However, we are not required to design procedures specifically to identify such matters. Significant Audit Findings Significant Audit Findings 2 Compliance and Other Matters As part of obtaining reasonable assurance about whether the City's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. 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 or Minnesota statutes. Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements. The City did not change accounting policies during the year. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the financial statements include depreciation on capital assets, allocation of payroll and compensated absences, the liability for other postemployment benefits, value of land held for resale, and the assets and liabilities for the City’s pensions. Management’s estimate of depreciation is based on estimated useful lives of the assets. Depreciation is calculated using the straight-line method. Allocations of gross wages and payroll benefits are approved by City Council within the City’s budget and are derived from each employee’s estimated time to be spent servicing the respective functions of the City. These allocations are also used in allocating accrued compensated absences payable. Management’s estimate of its OPEB liability is based on several factors including, but not limited to, anticipated retirement age for active employees, life expectancy, turnover, and healthcare cost trend rate. Management’s estimate of its pension liabilities and assets are based on several factors including, but not limited to, anticipated investment return rate, retirement age for active employees, life expectancy, salary increases and form of annuity payment upon retirement. o The allocation of the pension liability related to Minnesota Public Employee Retirement Association (PERA) is based on the City’s proportionate share of employer contributions to the PERA cost-sharing multiple employer Coordinated and Police and Fire pension plans. We evaluated the key factors and assumptions used to develop these accounting estimates in determining that it is reasonable in relation to the financial statements taken as a whole. The disclosures in the financial statements are neutral, consistent, and clear. Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. No misstatements were noted. Allocations of gross wages and payroll benefits are approved by City Council within the City’s budget and are Allocations of gross wages and payroll benefits are approved by City Council within the City’s budget and are derived from each employee’s estimated time to bderived from each employee’s estimated time to be spent servicing the respective functions of the City. These e spent servicing the respective functions of the City. These allocations are also used in allocating accrued compensated absences payable.allocations are also used in allocating accrued compensated absences payable. Management’s estimate of its OPEB liability is based on several factors including, but not limited to, anticipated Management’s estimate of its OPEB liability is based on several factors including, but not limited to, anticipated retirement age for active employees, life expectancy, turnover, and healthcare cost trend rate.retirement age for active employees, life expectancy, turnover, and healthcare cost trend rate. Management’s estimate of its pension liabilities and assets are based on several factors including, but not limited Management’s estimate of its pension liabilities and assets are based on several factors including, but not limited to, anticipated investment return rate, retirement age for active employees, life expectancy, salary increases and to, anticipated investment return rate, retirement age for active employees, life expectancy, salary increases and 3 Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated NEED DATE. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the City’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Matters We applied certain limited procedures to the required supplementary information (RSI) (Management’s Discussion and Analysis, the Schedules of Employer’s Share of the Net Pension Liability, the Schedule of Changes in Net Pension Liability (Asset) and Related Ratios, the Schedules of Employer’s Contributions and the Schedule of Funding Progress for Other Post-Employment Benefits Plan), which is information that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI. We were engaged to report on the supplementary information (combining and individual fund financial statements and schedules), which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. We were not engaged to report on the introductory or statistical sections, which accompany the financial statements but are not RSI. We did not audit or perform other procedures on this other information and we do not express an opinion or provide any assurance on them. Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the 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 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 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.opinion or provide any assurance on the RSI. We were engaged to report on the supplementary information (combining andWe were engaged to report on the supplementary information (combining and individual fund financial statementsindividual fund financial statements ), which accompany the financial statements but are not RSI. With respect to this supplementary information, ), which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to 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 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 inmethod of preparing it has not changed from the prior period, and the information is appropriate and complete in 4 Future Accounting Standard Changes The following Governmental Accounting Standards Board (GASB) Statements have been issued and may have an impact on future City financial statements: (1) GASB Statement No. 87 -Leases Summary 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’ 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. Effective Date and Transition The requirements of this Statement are effective for reporting periods beginning after December 15, 2019. Earlier application is encouraged. Leases should be recognized and measured using the facts and circumstances that exist at the beginning of the period of implementation (or, if applied to earlier periods, the beginning of the earliest period restated). However, lessors should not restate the assets underlying their existing sales-type or direct financing leases. Any residual assets for those leases become the carrying values of the underlying assets. How the Changes in This Statement Will Improve Accounting and Financial Reporting This Statement will increase the usefulness of governments’ financial statements by requiring reporting of certain lease liabilities that currently are not reported. It will enhance comparability of financial statements among governments by requiring lessees and lessors to report leases under a single model. This Statement also will enhance the decision- usefulness of the information provided to financial statement users by requiring notes to financial statements related to the timing, significance, and purpose of a government’s leasing arrangements. GASB Statement No. 89 -Accounting for Interest Cost Incurred before the End of a Construction Period Summary The objectives of this Statement are (1) to enhance the relevance and comparability of information about capital assets and the cost of borrowing for a reporting period and (2) to simplify accounting for interest cost incurred before the end of a construction period. This Statement establishes accounting requirements for interest cost incurred before the end of a construction period. Such interest cost includes all interest that previously was accounted for in accordance with the requirements of paragraphs 5–22 of Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre- November 30, 1989 FASB and AICPA Pronouncements, which are superseded by this Statement. This Statement requires that interest cost incurred before the end of a construction period be recognized as an expense in the period in which the cost is incurred for financial statements prepared using the economic resources measurement focus. As a result, interest cost incurred before the end of a construction period will not be included in the historical cost of a capital asset reported in a business-type activity or enterprise fund. This Statement also reiterates that in financial statements prepared using the current financial resources measurement focus, interest cost incurred before the end of a construction period should be recognized as an expenditure on a basis consistent with governmental fund accounting principles. become the carrying values of the underlying assets. become the carrying values of the underlying assets. How the Changes in This Statement Will Improve Accounting and Financial ReportingHow the Changes in This Statement Will Improve Accounting and Financial Reporting This Statement will increase the usefulness of governments’ financial statements by requiring reporting of certain lease This Statement will increase the usefulness of governments’ financial statements by requiring reporting of certain lease are not reported. It will enhance comparability of financial statements among governments by are not reported. It will enhance comparability of financial statements among governments by requiring lessees and lessors to report leases under a single model. This Statement also will enhance the decisionrequiring lessees and lessors to report leases under a single model. This Statement also will enhance the decision usefulness of the information provided to financial statement users by requiring notes to financial statements related to the usefulness of the information provided to financial statement users by requiring notes to financial statements related to the timing, significance, and purpose of a government’s leasing arrangements. timing, significance, and purpose of a government’s leasing arrangements. 5 Future Accounting Standard Changes (Continued) Effective Date and Transition The requirements of this Statement are effective for reporting periods beginning after December 15, 2019. Earlier application is encouraged. The requirements of this Statement should be applied prospectively. How the Changes in This Statement Will Improve Accounting and Financial Reporting The requirements of this Statement will improve financial reporting by providing users of financial statements with more relevant information about capital assets and the cost of borrowing for a reporting period. The resulting information also will enhance the comparability of information about capital assets and the cost of borrowing for a reporting period for both governmental activities and business-type activities. GASB Statement No. 91 - Conduit Debt Obligations Summary The primary objectives of this Statement are to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. This Statement achieves those objectives by clarifying the existing definition of a conduit debt obligation; establishing that a conduit debt obligation is not a liability of the issuer; establishing standards for accounting and financial reporting of additional commitments and voluntary commitments extended by issuers and arrangements associated with conduit debt obligations; and improving required note disclosures. All conduit debt obligations involve the issuer making a limited commitment. Some issuers extend additional commitments or voluntary commitments to support debt service in the event the third party is, or will be, unable to do so. An issuer should not recognize a conduit debt obligation as a liability. However, an issuer should recognize a liability associated with an additional commitment or a voluntary commitment to support debt service if certain recognition criteria are met. As long as a conduit debt obligation is outstanding, an issuer that has made an additional commitment should evaluate at least annually whether those criteria are met. An issuer that has made only a limited commitment should evaluate whether those criteria are met when an event occurs that causes the issuer to reevaluate its willingness or ability to support the obligor’s debt service through a voluntary commitment. This Statement also addresses arrangements - often characterized as leases - that are associated with conduit debt obligations. In those arrangements, capital assets are constructed or acquired with the proceeds of a conduit debt obligation and used by third-party obligors in the course of their activities. Payments from third-party obligors are intended to cover and coincide with debt service payments. During those arrangements, issuers retain the titles to the capital assets. Those titles may or may not pass to the obligors at the end of the arrangements. This Statement requires issuers to disclose general information about their conduit debt obligations, organized by type of commitment, including the aggregate outstanding principal amount of the issuers’ conduit debt obligations and a description of each type of commitment. Issuers that recognize liabilities related to supporting the debt service of conduit debt obligations also should disclose information about the amount recognized and how the liabilities changed during the reporting period. Effective Date and Transition The requirements of this Statement are effective for reporting periods beginning after December 15, 2020. Earlier application is encouraged. or voluntary commitments to support debt service in the event the third party is, or will be, unable to do so.or voluntary commitments to support debt service in the event the third party is, or will be, unable to do so. An issuer should not recognize a conduit debt obligation as a liability. However, an issuer should recognize a liability An issuer should not recognize a conduit debt obligation as a liability. However, an issuer should recognize a liability associated with an additional commitment or a voluntary commitment to support debt service if certain recognition criteria associated with an additional commitment or a voluntary commitment to support debt service if certain recognition criteria are met. As long as a conduit debt obligation is outstanding, an issuer that has made an additional commitment should are met. As long as a conduit debt obligation is outstanding, an issuer that has made an additional commitment should evaluate at least annually whether those criteria are met. An issuer that has made only a limited commitment should evaluate at least annually whether those criteria are met. An issuer that has made only a limited commitment should evaluate whether those criteria are met when an event occurs that causes the issuer to reevaluate its willingness or ability evaluate whether those criteria are met when an event occurs that causes the issuer to reevaluate its willingness or ability to support the obligor’s debt service through a voluntary commitment.to support the obligor’s debt service through a voluntary commitment. This Statement also addresses arrangementsThis Statement also addresses arrangements - often characterized as leasesoften characterized as leases - - that are associated with conduit debt that are associated with conduit debt 6 Future Accounting Standard Changes (Continued) How the Changes in This Statement Will Improve Accounting and Financial Reporting The requirements of this Statement will improve financial reporting by eliminating the existing option for issuers to report conduit debt obligations as their own liabilities, thereby ending significant diversity in practice. The clarified definition will resolve stakeholders’ uncertainty as to whether a given financing is, in fact, a conduit debt obligation. Requiring issuers to recognize liabilities associated with additional commitments extended by issuers and to recognize assets and deferred inflows of resources related to certain arrangements associated with conduit debt obligations also will eliminate diversity, thereby improving comparability in reporting by issuers. Revised disclosure requirements will provide financial statement users with better information regarding the commitments issuers extend and the likelihood that they will fulfill those commitments. That information will inform users of the potential impact of such commitments on the financial resources of issuers and help users assess issuers’ roles in conduit debt obligations. (1)Note. From GASB Pronouncements Summaries. Copyright 2019 by the Financial Accounting Foundation, 401 Merritt 7, Norwalk, CT 06856, USA, and is reproduced with permission. * * * * Restriction on Use This purpose of this communication is solely for the information and use of the City Council and management of the City and is not intended to be, and should not be used by anyone other than those specified parties. Our audit would not necessarily disclose all weaknesses in the system because it was based on selected tests of the accounting records and related data. The comments and recommendations in the report are purely constructive in nature, and should be read in this context. If you have any questions or wish to discuss any of the items contained in this letter, please feel free to contact us at your convenience. We wish to thank you for the continued opportunity to be of service and for the courtesy and cooperation extended to us by your staff. ABDO, EICK & MEYERS, LLP Minneapolis, Minnesota NEED DATE and should be read in this context.and should be read in this context. If you have any questions or wish to discuss any of the items contained in this letter, please feel free to contact us at your If you have any questions or wish to discuss any of the items contained in this letter, please feel free to contact us at your convenience. We wish to thank you for the continued opportunity to be of service and for the courtesy and cooperation convenience. We wish to thank you for the continued opportunity to be of service and for the courtesy and cooperation extended to us by your staff. extended to us by your staff. ABDO, EICK & MEYERS, LLPABDO, EICK & MEYERS, LLP 7 Other Required Reports City of Orono Orono, Minnesota For the Year Ended December 31, 2019 City of Orono Orono, Minnesota For the Year EndedFor the Year Ended December 31, December 31, 2019 City of Orono, Minnesota Other Required Reports Table of Contents For the Year Ended December 31, 2019 Page No. Other Required Reports Independent Auditor’s Report on Minnesota Legal Compliance 3 Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 4 2 INDEPENDENT AUDITOR’S REPORT ON MINNESOTA LEGAL COMPLIANCE Honorable Mayor and City Council City of Orono, Minnesota We have audited, in accordance with auditing standards generally accepted in the United States of America, and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States the financial statements of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of the City of Orono, Minnesota (the City) as of and for the year ended December 31, 2019, and the related notes to the financial statements, and have issued our report thereon dated NEED DATE. 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 Minn. Stat. § 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. This report is intended solely for the information and use of those charged with governance and management of the City and the State Auditor and is not intended to be, and should not be, used by anyone other than these specified parties. ABDO, EICK & MEYERS, LLP Minneapolis, Minnesota NEED DATE 3 In connection with our audit, nothing came to our attention that caused us to believe that the City failed to comply with theIn 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 provisions of the contracting and bidding, deposits and investments, conflicts of interest, public indebtedness, claims and sements, miscellaneous provisions, and tax increment financing sections of the sements, miscellaneous provisions, and tax increment financing sections of the Minnesota Legal Compliance Audit Minnesota Legal Compliance Audit , promulgated by the State Auditor pursuant to Minn. Stat. § 6.65, insofar as they relate to accounting , promulgated by the State Auditor pursuant to Minn. Stat. § 6.65, insofar as they relate to accounting matters. However, our audit was not directed primarily toward obtaining knowledge of such noncompliance. Accordingly, 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 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.noncompliance with the above referenced provisions, insofar as they relate to accounting matters. This report is intended solely for the information and use of those charged with governance and management of the City This report is intended solely for the information and use of those charged with governance and management of the City and the State Auditor and is not intended to be, and should not be, used by anyone other than these specified parties.and the State Auditor and is not intended to be, and should not be, used by anyone other than these specified parties. INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Mayor and City Council City of Orono, Minnesota We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of the City of Orono, Minnesota (the City), as of and for the year ended December 31, 2019, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated NEED DATE. 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 entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. 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 determination of financial statement amounts. 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. 4 financial statements, and have issued our report thereon datedfinancial statements, and have issued our report thereon dated NEED DATE. Internal Control Over Financial ReportingInternal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the In planning and performing our audit of the financial statements, we considered the CityCity's internal control over financial 's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the 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 purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the ’s internal control. Accordingly, we do not express an opinion on the effectiveness of the ’s internal control. Accordingly, we do not express an opinion on the effectiveness of the deficiency in internal control deficiency in internal control exists when the design or operation of a control does not allow management or employees, exists when the design or operation of a control does not allow management or employees, 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. ABDO, EICK & MEYERS, LLP Minneapolis, Minnesota NEED DATE 5 AGENDA ITEM Prepared By: A.Carlson Reviewed By: DJR Approved By: DJR 1. Purpose. The purpose of this action item is to formally thank and recognize those who have graciously donated to the City of Orono in 2020. 3. Staff Recommendation. Staff recommends approval of the Resolution. COUNCIL ACTION REQUESTED: Consider to approve the Resolution thanking and recognizing those who have donated to the City of Orono in 2020. Exhibits A. Resolution B. List of 2020 Donations Item No.: 19 Date: December 7, 2020 Item Description: Recognizing Donations Received in 2020 – Resolution Presenter: Dustin Rief, City Administrator Agenda Section: Presentation CITY OF ORONO RESOLUTION OF THE CITY COUNCIL NO. ________________________ RESOLUTION OF THANKS AND APPRECIATION FROM THE CITY COUNCIL OF THE CITY OF ORONO. MINNESOTA TO THOSE WHO HAVE DONATED TO THE CITY IN 2020 WHEREAS, the City of Orono welcomes and encourages support from individual donors, foundations and entities that support the programs and services of the City; and WHEREAS, the City of Orono recognizes that those contributions enhance, beautify, improve, supplement, support, or otherwise benefit the residents of Orono; and WHEREAS, the City of Orono appreciates each and every donation made to the City; and WHEREAS, the City of Orono would like to recognize the donors and donations received in 2020 by including their names and donations listed in Exhibit A; and NOW, THEREFORE, BE IT RESOLVED, that the Orono City Council does hereby thank all those who have generously donated to the City in 2020 and would also respectfully ask all of our citizens to join us in expressing their sincere thanks, gratitude and appreciation to the 2020 donors. Adopted this 7th day of December, 2020. ATTEST: CITY OF ORONO: ________________________ ______________________ Anna Carlson, City Clerk Mayor, Dennis Walsh CITY OF ORONO RESOLUTION OF THE CITY COUNCIL NO. ________________________ Exhibit A. List of 2020 Donations Donors Donation Type Used for AdvisorNet Insurance $650.00 Bench @ Lydiard Beach Mrs. Morris G Levy $200.00 Appreciation of Orono PD Gina Paulucci $10,000.00 Appreciation of Orono PD Patti Welty Time Election judge work w/o compensation J. Carver Distillery (Gina Holman) Hand Sanitizer COVID-19 Franz Weiglein 300 N-95 Masks COVID-19 Mark Kroll 10 N-95 Masks COVID-19 Coca Cola (Kurt Ritter) & Mark Roll Water & Coke Productions COVID-19 25:2 Solutions (Eric Jackson) 28 - 3D printed filtered masks COVID-19 Donald Knutson K-9 First Aid Kit First Aid Navarre Hardware 2 Gallons hand sanitizer Golf Course Colin Charlson - State Farm 17 - $20.00 Gift Cards Appreciation of Orono PD Big Island Legacy $58,000.00 Big Island Park Improvements Schena Joswiak $100 Gift Card - Domino's Pizza Appreciation of Orono PD Anita Litecky 20 -$10 Gift Cards - Caribou Appreciation of Orono PD CenterPoint Energy Community Safety $2,500.00 Grant Rick Carter $625.00 Sitting Stone - Big Island Rodd Kemery $5,000.00 2 ADA accessible Picnic Tables - Big Island Sue Carlson Hand made face masks For Election judges Randy & Marcia Litfin $825.00 Sitting Stone - Big Island Bryce & Paula Johnson $825.00 Sitting Stone - Big Island Carl & Abby Bergquist $200.00 Appreciation of Orono PD Goodman Foundation $10,000.00 Big Island - ADA Trail Project Tom Kolar $852.00 Sitting Stone - Big Island Ben Goodwin $2,000.00 For Future City Event CITY OF ORONO RESOLUTION OF THE CITY COUNCIL NO. ________________________ Council Date Donor Donation 1/13/2020 AdvisorNet Insurance $650.00 Bench @ Lydiard Beach 2/10/2020 Mrs. Morris G Levy $200.00 Appreciation of Orono PD 3/30/2020 Gina Paulucci $10,000.00 Appreciation of Orono PD 4/13/2020 Patti Welty Time Election judge work w/o compensation 4/27/2020 J. Carver Distillery (Gina Holman)Hand Sanitizer COVID-19 Franz Weiglein 300 N-95 Masks COVID-19 Mark Kroll 10 N-95 Masks COVID-19 Coca Cola (Kurt Ritter) & Mark Roll Water & Coke Productions COVID-19 25:2 Solutions (Eric Jackson)28 - 3D printed filtered masks COVID-19 5/11/2020 Donald Knutson K-9 First Aid Kit 6/8/2020 Navarre Hardware 2 Gallons hand sanitizer Golf Course 6/22/2020 Colin Charlson - State Farm 17 - $20.00 Gift Cards Appreciation of Orono PD 6/22/2020 Big Island Legacy $58,000.00 Big Island Park Improvements 7/13/2020 Schena Joswiak $100 Gift Card - Domino's Pizza Appreciation of Orono PD Anita Litecky 20 -$10 Gift Cards - Caribou Appreciation of Orono PD 7/27/2020 CenterPoint Energy Community Safety Grant $2,500.00 8/24/2020 Rick Carter $625.00 Sitting Stone - Big Island Rodd Kemery $5,000.00 2 ADA accessible Picnic Tables - Big Island 9/14/2020 Sue Carlson Hand made face masks For Election judges 9/14/2020 Randy & Marcia Litfin $825.00 Sitting Stone - Big Island Bryce & Paula Johnson $825.00 Sitting Stone - Big Island 9/28/2020 Carl & Abby Bergquist $200.00 Appreciation of Orono PD 10/12/2020 Goodman Foundation $10,000.00 Big Island - ADA Trail Project 11/9/2020 Tom Kolar $852.00 Sitting Stone - Big Island 12/7/2020 Ben Goodwin $2,000.00 For Future City Event AGENDA ITEM Prepared By: Reviewed By: DJR Approved By: DJR 1. Purpose. The purpose of this action item is for Council approve change order expenses related to the 2nd Toilet for the Big Island ADA Trail Project. 2. Background. At the November 9th Council meeting, the council directed staff to add a 2nd vault toilet to the Big Island Project. During those discussions it was assumed that the cost of the 2nd toilet would be the same as or close to the first, $93,000. After the meeting staff requested the contractor to provide a change order quote for the addition of the 2nd Toilet. The quote is for $120,800 (Exhibit A). As this represents a 30% price difference, and at $27,800 is beyond staff approval levels, staff is requesting approval prior to moving forward with the change order. We have been able to identify a location on the overlook that would not require additional archeology work. The shelter location has been adjusted from its previously proposed location to another that avoids archeological impacts. The revised plan sheet showing the proposed toilet location and the adjusted shelter location is shown in Exhibit B. 3. Project Scope. The original project scope consisted of ADA accessible pathway, picnic shelter, interpretive signage and an ADA compliant restroom facility. 4. Change Order Scope. Installation of a second ADA compliant Vault Toilet at the southern overlook site. 5. Cost. $120,800 6. Funding. Funding would come from State Bonding Bill Funds. 7. Project Timeline. When What December 2020 Change Order Summer 2021 Toilet construction 8. Staff Recommendation. I recommend council confirm their intent of providing a 2nd toilet and if so accept the change order proposal from Blackwell Construction. COUNCIL ACTION REQUESTED Motion to: Accept the change order proposal from Blackwell Construction for a send ADA compliant vault toilet at the southern outlook site for $120,800. Exhibits A. Blackwell Change Order. B. Amended Plan sheet for shelter and 2nd toilet locations Item No.: 20 Date: December 7, 2020 Item Description: Big Island Park ADA Trail Project (19-033) – 2nd Toilet Change Order Presenter: Adam T. Edwards Public Works Director/City Engineer Agenda Section: Public Works Director/ City Engineer Report Exhibit A. Exhibit B. AGENDA ITEM Prepared By: J. Barnhart Reviewed By: DJR Approved By: DJR Purpose. This item has two purposes; a. Waive Planning Commission review of a Conditional Use Permit b. After holding the public hearing, consider the Conditional Use Permit allowing a permanent dock in the floodplain. MN§15.99 Application Deadline. The application was received on November 9, 2020 and considered to be complete on November 13, 2020. The 60-Day review period will expire on January 12, 2021. Background. A Conditional Use Permit for a permanent dock on this property was approved in December 9, 2019 (LA18-000094). The applicant proposes to change the configuration of the dock. Typically, Conditional Use Permits are reviewed by the Planning Commission. The City Code permits the Council to waive, by unanimous action, reference to the Planning Commission (Section 78-912). The applicant requests this waiver to permit construction in January, when the ice is thickest. Without the waiver, construction couldn’t start until mid-February. A public hearing has been noticed allowing for possible Council action. Applicable Regulation: Conditional Use Permit (Section 78-916) The Planning Commission may recommend and the Council may grant a Conditional Use Permit (CUP) as the use permit was applied for or in modified form. On the basis of the application and the evidence submitted, the city must find that the proposed use at the proposed location is or will be: 1) Consistent with the community management plan; The property is guided and will continue to be used for residential purposes. 2) Compliant with the zoning code, including any conditions imposed on specific uses as required by article V, division 3 of the City Code; Accessory docks are permitted by the zoning code. 3) Adequately served by police, fire, roads, and stormwater management; The proposed dock is not expected to increase needs for these services. 4) Provided with an adequate water supply and sewage disposal system; The proposed dock will not increase need for water or sanitary sewer services. 5) Not expected to generate excessive demand for public services at public cost; The proposed dock will not increase demand of these services. 6) Compatible with the surrounding area as the area is used both presently and as it is planned to be used in the future; A seasonal dock has been placed in the general area in past years. 7) Consistent with the character of the surrounding area, unless a change of character is called for in the community management plan; The permanent dock is not expected to impact the neighborhood character. 8) Compatible with the character of buildings and site improvements in the surrounding area, unless a change of character is called for in the community management plan; The permanent dock is not expected to impact the character of the improvements in the surrounding area. 9) Not expected to substantially impair the use and enjoyment of the property in the area or have a materially adverse impact on the property values in the area when compared to the impairment or impact of generally permitted uses; The permanent nature of the dock is not Item No.: 21 Date: December 7, 2020 Item Description: LA20-0000972, Russel Kocon and Jacqueline Gibney, 3570 Ivy Place – Conditional Use Permit for Permanent Dock – Resolution Presenter: Jeremy Barnhart, AICP Community Development Director Agenda Section: Planning Department Report AGENDA ITEM Prepared By: J. Barnhart Reviewed By: DJR Approved By: DJR expected to impact the use and enjoyment of property in the area, provided the dock does not impact an established channel into the lake. 10) Provided with screening and buffering adequate to mitigate undesirable views and activities likely to disturb surrounding uses; No screening is proposed or recommended. 11) Not create a nuisance which generates smoke, noise, glare, vibration, odors, fumes, dust, electrical interference, general unsightliness, or other means; No testimony has been offered that suggests the dock will establish a nuisance. 12) Not cause excessive non-residential traffic on residential streets, parking needs that cause a demonstrable inconvenience to adjoining properties, traffic congestion, or unsafe access; The permanent nature of the dock will not increase traffic. 13) Designed to take into account the natural, scenic, and historic features of the area and to minimize environmental impact; The dock built for the floodplain will not impact the natural features of the lake. 14) All exterior lighting shall be so directed so as not to cast glare toward or onto the public right- of-way or neighboring residential uses or districts; no lighting is proposed and 15) Not detrimental to the public health, public safety, or general welfare. The dock is not expected to introduce hazards, though adding reflectors at intervals along the dock will help winter users of the lake. A CUP may be granted subject to such conditions as the Council may prescribe. Additionally, a CUP shall remain in effect as long as the conditions imposed by the City Council are observed, but nothing in this section shall prevent the city from enacting or amending official controls to change the status of conditional uses. Septic System Status Not applicable. The subject property is served by municipal sewer. Conditional Use Permit Analysis The dock is proposed on the west side of Lot 1, Block 1. The dock as proposed is not intended for human habitation, and will have a low flood damage potential. The dock will not impede flood waters. Electrical features, if added, will need to be elevated above regulatory flood elevation. These meet the floodplain standards. There are two easements in the general area that may be impacted by the proposed dock. Shoreline stabilization Easement (Document T5036119) was established in 2012 to stabilize the shoreline. The easement language (Exhibit D) includes the following: “All planted and seeded areas will be maintained in perpetuity free from mowing or other vegetative disturbance, except as specified herein, fertilizer application, yard or other waste disposal, and the placement of structures or any alterations that impede the function of the shoreline in protecting water quality, shading the riparian edge, moderating flow into any adjacent wetland or waterbody, or provided wildlife habitat.” The dock is not expected to impede the water quality protection, riparian edge water shading, or moderating water flow functions. However, site improvements, including but not limited to tree and vegetative removal, storage features, and seating areas can impede these functions and should not be incorporated in the easement area. Staff concurs with the watershed district’s recommendation that a path no wider than 4 feet be established for access to the dock. The Council could require the corresponding dock sections be no wider than 4 feet. Permanent Drainage and Utility Easement (Document T05539808) AGENDA ITEM Prepared By: J. Barnhart Reviewed By: DJR Approved By: DJR The proposed improvement encroaches very minimally into the easement area, and is setback from the sanitary sewer. The improvement is not expected to impact the improvement or the easement. Planning Commission Vote and Comment. The Planning Commission did not review the proposed layout. Their comments from the original proposal could be useful: On November 18, 2019, voted 7-0 to approve the application, subject to a number of conditions suggested by staff at the time, which included reflectors be added (every 25 feet along the edges of the dock), a path no wider than 4 feet be maintained for access to the dock, and all requirements of the DNR and Watershed District shall be followed. Commissioners primarily questioned the impact of the dock on adjacent properties and their use of the lake. Commissions also discussed the impact of the dock on the existing easements in the area. The City Council did not support the condition of the reflectors when they approved the Conditional Use Permit in 2019. Public Comment. To date, no comments for or against the application have been received. The LMCD has approved the permit for the dock, attached as Exhibit E. Staff Recommendation. Staff recommends the Council unanimously waive Planning Commission review, and Council adopt the resolution as drafted, with the following conditions: 1. The path through the Shoreland restoration easement be no wider than 4 feet wide. 2. All requirements of the DNR, Lake Minnetonka Conservation District, and the Watershed District shall be followed COUNCIL ACTION REQUESTED City Council should review the approval resolution and adopt or amend. Exhibits A. Draft Resolution B. Applicant summary C. Applicant explanation D. Location Map E. Site Plan F. Dock plans G. LMCD comment H. Original site plan I. Mailing information References LA18-94 case file Resolution 7057 CITY OF ORONO RESOLUTION OF THE CITY COUNCIL NO. ________________________ Page 1 of 3 A RESOLUTION GRANTING A CONDITIONAL USE PERMIT PURSUANT TO MUNICIPAL ZONING CODE SECTIONS 78-1118(3) FILE NO. LA20-000072 WHEREAS, Russell Kocon and Jacqueline Gibney are the Owners of property at 3570 Ivy Place (hereinafter “the Applicants”) within the City of Orono (hereinafter the “City”), and legally described as follows: Lot 1, Block 1, Ivy Place Second Addition, Hennepin County, Minnesota WHEREAS, the Applicants have made application to the City of Orono for approval of a conditional use permit (CUP) pursuant to Municipal Zoning Code Sections 78-1118(3) for construction of a permanent dock extending into the floodplain; and NOW, THEREFORE BE IT RESOLVED by the City Council of Orono, Minnesota: FINDINGS 1. This application was reviewed as Zoning File LA20-000072. 2. The City Council reviewed this application at a public hearing held on December 7, 2020 and approved the CUP based on the following findings: a. The Property is conforming due to size and width. b. The dock is a water use feature and its extension into the floodplain is reasonable. c. The dock will not support lights, negating any nighttime light pollution. d. The dock will be built of sturdy materials designed for the specific use, minimizing upkeep and annual maintenance. 3. Conditional Use Permit Analysis. The City Council makes the following findings with regard to the criteria necessary for the granting of a conditional use permit. a) Consistent with the community management plan; The property is guided and will continue to be used for residential purposes. CITY OF ORONO RESOLUTION OF THE CITY COUNCIL NO. ________________________ Page 2 of 3 b) Compliant with the zoning code, including any conditions imposed on specific uses as required by article V, division 3 of the City Code; Accessory docks are permitted by the zoning code. c) Adequately served by police, fire, roads, and stormwater management; The proposed dock is not expected to increase needs for these services. d) Provided with an adequate water supply and sewage disposal system; The proposed dock will not increase need for water or sanitary sewer services. e) Not expected to generate excessive demand for public services at public cost; The proposed dock will not increase demand of these services. f) Compatible with the surrounding area as the area is used both presently and as it is planned to be used in the future; A seasonal dock has been placed in the general area in past years. g) Consistent with the character of the surrounding area, unless a change of character is called for in the community management plan; The permanent dock is not expected to impact the neighborhood character. h) Compatible with the character of buildings and site improvements in the surrounding area, unless a change of character is called for in the community management plan; The permanent dock is not expected to impact the character of the improvements in the surrounding area. i) Not expected to substantially impair the use and enjoyment of the property in the area or have a materially adverse impact on the property values in the area when compared to the impairment or impact of generally permitted uses; The permanent nature of the dock is not expected to impact the use and enjoyment of property in the area, provided the dock does not impact an established channel into the lake. j) Provided with screening and buffering adequate to mitigate undesirable views and activities likely to disturb surrounding uses; No screening is proposed or recommended. k) Not create a nuisance which generates smoke, noise, glare, vibration, odors, fumes, dust, electrical interference, general unsightliness, or other means; No testimony has been offered that suggests the dock will establish a nuisance. l) Not cause excessive non-residential traffic on residential streets, parking needs that cause a demonstrable inconvenience to adjoining properties, traffic congestion, or unsafe access; The permanent nature of the dock will not increase traffic. m) Designed to take into account the natural, scenic, and historic features of the area and to minimize environmental impact; The dock built for the floodplain will not impact the natural features of the lake. n) All exterior lighting shall be so directed so as not to cast glare toward or onto the public right-of-way or neighboring residential uses or districts; no lighting is proposed and o) Not detrimental to the public health, public safety, or general welfare. The dock is not expected to introduce hazards. CITY OF ORONO RESOLUTION OF THE CITY COUNCIL NO. ________________________ Page 3 of 3 4. The City Council has considered this application including the findings and recommendation of the Planning Commission, reports by City staff, comments by the Applicants and the public, and the effect of the proposed conditional use permit on the health, safety and welfare of the community. 5. The City Council finds that the Applicants’ request would be in keeping with the spirit and intent of the Zoning Code and Comprehensive Plan of the City. CONCLUSIONS, ORDER AND CONDITIONS Based upon one or more of the above findings, the Orono City Council hereby grants approval of a conditional use permit (CUP) pursuant to Municipal Zoning Code Sections 78-1118(3) for construction of a permanent dock extending into the floodplain, subject to the following conditions: 1. This approval is for dock depicted on the attached Exhibit A. 2. The path through the shoreland restoration easement be no wider than 4 feet wide. 3. All requirements of the DNR, Lake Minnetonka Conservation District, and the Watershed District shall be followed. 4. Authorities granted by this resolution run with the Property not with the Applicants, but are permissive only. Violation of or non-compliance with any of the terms and conditions of this resolution shall constitute a violation of the zoning code, shall automatically terminate any authority granted herein, and shall be punishable as a misdemeanor. Adopted by the Orono City Council on the 7th day of December, 2020. ATTEST: ________________________________ _________________________________ Anna Carlson, City Clerk Dennis Walsh, Mayor Land Use Application Summary Application Date:11/09/2020 Address:3570 Ivy Pl. Wayzata, MN 55391 Parcel Number: Land Use Number:LA20-000072 Application Submitted By:Property Owner Owner:Name: Address: Applicant:Name: RUSSELL KOCON Company: Address: JACQUELINE GIBNEY3570 IVY PL ORONO, MN 55391 Rusty@pearson-arnold.com Contact Information: Associated Contact: Tim Latterner Associated Contact: Associated Contact: Associated Contact: Project Description:Permanent Residential Dock Land Use Application Type:Amendmend Application Appeal of Admin Decision Concept Application Conditional Use Permit Site Plan Application Subdivision Application Subdivision Exception Vacation Application Variance Application Applicant Signature: LA20-72 Exhibit B 1 Jeremy Barnhart From:Rusty Kocon <Rusty@pearson-arnold.com> Sent:Monday, November 9, 2020 11:14 AM To:Jeremy Barnhart Cc:Wendie Seamans Subject:RE: Dock CUP - LA20-000072 Attachments:Perm Dock Site Plans.pdf; Perm Dock Const. Plans.pdf Jeremy. I just filled out the CUP on the city of Orono website. I uploaded the attached two documents (Site Plan and Construction details). Tim from Dock and lift spoke with the LMCD and we are set there. I am just waiting for a letter from Vikki at the LMCD. Please let me know if you need any additional information. I guess I may need a narrative. The reason for the change in dock design was that the existing one was put in prior to any development. They were guessing at the size of boat and what the water depth would allow. The new design is less intrusive to the waterway and safer to navigate with a boat. Please let me know if you need any additional information. Thanks. Best Regards, Rusty C. Kocon Phone: 763-544-6016 | Fax: 763-544-2111 | Mobile: 612-865-2421 rusty@pearson-arnold.com | www.pearson-arnold.com Let us install your parts for you!   For more information go to:  www.pa‐is.com  From: Jeremy Barnhart <jbarnhart@ci.orono.mn.us>   Sent: Monday, November 2, 2020 1:37 PM  To: Rusty Kocon <Rusty@pearson‐arnold.com>  Subject: Dock CUP  Rusty,  Attached are the documents that were provided previously, and my staff report.  For this application, I’ll need  the following:  LA20-72 Exhibit C 2 Site plan (showing where  the dock will be installed.  This should also include the applicable easements that are  in the area.  See the ExB document for reference.   Construction plans:  how will the dock be built  Letter from the LMCD saying they approve the dock location and configuration.  Also, during the initial  discussion, the question about reflectors was raised.  Verify that the LMCD either requires those, or doesn’t.    Narrative.  Why the change from the previous approved version.      That should be enough.  If I have any questions, I ask them when they come up.        Jeremy Barnhart, AICP  Community Development Director  City of Orono  952‐249‐4626    Rusty Kocon via Dock and Lift, 3750 Ivy Place, Orono | Permanent Dock Permit Application For illustrative purposes only. Source: Hennepin County Interactive Property Map, 11/13/2020 EAST UPPER LAKE CARMAN BAY LAFAYETTE BAY OLD CHANNEL BAY LA20-72 Exhibit D Rusty Kocon via Dock and Lift, 3750 Ivy Place, Orono | Permanent Dock Permit Application For illustrative purposes only. Aerial imagery may not depict current conditions. Source: Hennepin County Interactive Property Map, 11/13/2020 3750 Ivy Place CARMAN BAY B o u n d a r y L i n e S h o w n p e r E d g e o f W a t e r a s S h o w n o n I V Y P L A C E Edge of Water 12060 SCALE IN FEET 0 4931 W. 35TH ST. SUITE 200 ST. LOUIS PARK, MN 55416 CivilSiteGroup.com Project No. 17059.06 SHEET 2 OF 2 NW ' l y L i n e o f L o t 1 , Bloc k 1 , I V Y P L A C E SEC O N D A D D N . BLOCK 1 LOT 1 Dra i n a g e & U t i l i t y E a s e m e n t E d g e o f W a t e r Dr a i n a g e & U t i l i t y Ea s e m e n t B o u n d a r y L i n e S h o w n p e r E d g e o f W a t e r a s S h o w n o n I V Y P L A C E IVY PLACE D&U E s m t . SECOND ADD. Edge of Water MINNESOTA CERTIFICATION I hereby certify that this survey, plan or report was prepared by me or under my direct supervision and that I am a duly Licensed Land Surveyor under the laws of the State of Minnesota. Dated this 28th day of October, 2020 ______________________________________________ Rory L. Synstelien Minnesota License No. 44565 Project No. 17059.06 SHEET 1 OF 2 6030 SCALE IN FEET 0 4931 W. 35TH ST. SUITE 200 ST. LOUIS PARK, MN 55416 CivilSiteGroup.com L A 2 0 - 7 2 E x h i b i t F www.lmcd.org • lmcd@lmcd.org To preserve and enhance the “Lake Minnetonka experience” December 2, 2020 Mr. Rusty Kocon 3570 Ivy Place Orono, MN 55391 RE: Residential Permanent Dock Permit for 3570 Ivy Place, Carman Bay, Orono. Dear Mr. Kocon: Thank you for contacting the Lake Minnetonka Conservation District (LMCD). Your permit for a Residential Permanent Dock located at 3570 Ivy Place in Orono is enclosed. The attached permit outlines specifications and a summary of conditions that must be followed as part of the permanent dock approval. Please keep a copy of the permit for your records. Upon installation, please contact the LMCD Office to schedule a final inspection. If you have questions, please contact me at 952-745-0789 or at vschleuning@lmcd.org. We hope you enjoy the Lake Minnetonka experience. Sincerely, Vickie Schleuning Executive Director ENC: Permanent Dock Permit #20-125-09 CC: Tim Latterner, Dock and Lift (wendie@dockandlift.com) Email: rusty@pearson-arnold.com LA20-72 Exhibit G Page 1 of 2 APPROVED LMCD PERMANENT DOCK PERMIT 20-125-09 NON-COMMERCIAL, NON-MULTIPLE Applicant: Rusty Kocon via Tim Latterner of Dock and Lift Property Owner: Rusty Kocon Property Address: 3570 Ivy Place Orono, MN 55391 PID: 20-117-23-42-0040 per Hennepin County Property Interactive Map as of date of permit issue; combination of parcels in process Date of Permit: 12/02/2020 Code Sections: 5-2.05, Residential Permanent Docks; 6-4.05, Residential Permanent Dock Permit Shoreline: Approximately 195 feet Approved BSUs: 2 proposed (Subject to 2-4.05 and 2-4.09) Municipality: Orono Bay: Carman Bay I. Permit Overview A permanent, non-multiple dock structure is approved as follows: • A dock with an overall footprint of approximately 48 feet wide and 70 feet in length as it extends into the lake from the OHW mark (929.4-foot elevation contour). • Two (2) boat storage units (BSUs) are proposed on this dock structure. • Approximately 34 new pilings. Spacing (span) between most pilings will be approximately 10-12 feet. Piling quantity and spacing may need to be adjusted slightly upon install. • The dock decking / structure does not exceed 8 feet in both length and width at any location. • Side setbacks as follows: o 22 feet from the northwesterly side site line o Approximately 58.5 feet from the southeasterly side site line o Other setback requirements may also apply to storage of any watercraft and other structures (side opening slips, canopies, etc.) II. Site-Specific Permit Conditions The approved permit is subject to the following: • The construction of the dock is subject to the approved site plan (received 11/05/2020). III. Standard Permit Conditions • This property is not eligible for a de-icing license as defined by LMCD Code Section 6- 5.09 and in Chapter 10-3. More information about de-icing operations is available in LMCD Code Chapter 10-3. • LMCD staff inspection to verify adherence of installation to approved site plan is required upon completion of the dock installation. • LMCD must be notified at the completion of the installation to schedule a final inspection. 3570 Ivy Place, Orono Permanent Dock Permit December 2, 2020 Page 2 of 2 • No changes may occur to the permanent dock for size, location, or configuration without seeking a new permanent dock permit. • Any structures placed as part of this permit shall be maintained in good condition and shall promptly be removed, together with any watercraft stored on them, if this permit is ever revoked or rendered null and void. • Adjustments to the dock may be required if environmental concerns arise, navigational safety or unreasonable limitation to lake access occurs for adjacent properties due to the dock installation or use. • Approval from the LMCD does not absolve you of the need to secure all necessary permits or approval from all governmental agencies. • Any changes to the property such as subdivision or combination may render the permit null and void and requires a review by the LMCD Executive Director within forty-five (45) days of the change to the property. • Use of the Lake shall at all times remain subject to regulation by the LMCD to assure the public of reasonable and equitable access to the Lake. The issuance of this permit shall grant no vested rights to the use of Lake Minnetonka. IV. Purpose/Impact To provide a secure docking area and adequate water depth for storage of the residents’ watercraft. V. MN DNR General Permit #97-6098 The MN DNR General Permit issued to the Lake Minnetonka Conservation District (LMCD) requires specific standards be met prior to issuing dock licenses. One standard is to obtain review and comments of the proposed application from the MN DNR Fisheries Manager and Hydrologist. This application was provided for review and comments to the MN DNR and representatives of the Minnehaha Creek Watershed District (MCWD) and the City of Orono. No objections were received. Comments from the MCWD and the City were forwarded to the applicant’s dock installer and will be forwarded to the applicant directly. VI. Permit Approval Pursuant to LMCD Code LMCD Code Section 5-2.05, Residential Permanent Docks, and Section 6-4.05, Residential Permanent Dock Permit, this permanent dock permit is granted based on compliance with the approved site plan, conditions referenced within, and applicable codes. Violations of the provisions of the District’s Code of Ordinances are punishable by imprisonment for not more than 90 days and/or imposition of a fine of not more than $1,000.00. Given under my hand and the corporate seal of the LAKE MINNETONKA CONSERVATION DISTRICT this 2nd day of December, 2020. Attest: Vickie Schleuning, Executive Director LA20-72 Exhibit H Hennepin County Locate & Notify Map 3570 Ivy Place 0 100 20050 Feet Date: 11/9/2020 Buffer Size:500Map Comments: This data (i) is furnished 'AS IS' with no representation as tocompleteness or accuracy; (ii) is furnished with no warranty of anykind; and (iii) is notsuitable for legal, engineering or surveyingpurposes. Hennepin County shall not be liable for any damage, injuryor loss resulting from this data. For more information, contact Hennepin County GIS Office300 6th Street South, Minneapolis, MN 55487 / gis.info@hennepin.us LA20-72 Exhibit I RUN DATE: 11/09/2020 HENNEPIN COUNTY PROPERTY INFORMATION SYSTEM (PROPERTY OWNERS LIST)PAGE: 1 38 20-117-23 31 0031 P A FOX & S C FOX LIV TRUST 2914 CASCO POINT RD ORONO MN 55391 PETER A FOX & SUSAN FOX 2914 CASCO POINT RD ORONO MN 55391 38 20-117-23 31 0032 EMMA LOU POWELL 2916 CASCO POINT RD ORONO MN 55391 EMMA LOU POWELL 2916 CASCO PT RD WAYZATA MN 55391 38 20-117-23 31 0033 PAULA N D KANNE/RYAN G KANNE 2920 CASCO POINT RD ORONO MN 55391 PAULA NUNES DIAS KANNE RYAN G KANNE 2920 CASCO POINT RD WAYZATA MN 55391 38 20-117-23 31 0034 JONATHAN A MENTH 2930 CASCO POINT RD ORONO MN 55391 JONATHAN A MENTH 2930 CASCO POINT RD WAYZATA MN 55391 38 20-117-23 31 0042 JONG DUK KIM & YOUNG HYI AN 3600 CASCO AVE ORONO MN 55391 JON DUK KIM & YOUNG HYI AN 4700 COVEY TR MEDINA MN 55340 38 20-117-23 42 0005 VIL OF ORONO 38 ADDRESS UNASSIGNED ORONO MN 00000 CITY OF ORONO PO BOX 66 CRYSTAL BAY MN 55323 38 20-117-23 42 0006 HENNEPIN FORFEITED LAND 38 ADDRESS UNASSIGNED ORONO MN 00000 HENNEPIN FORFEITED LAND NOT FOR SALE/UNDER WATER IN LAKE MTKA 38 20-117-23 42 0016 WILLIAM S DAMPIER 3550 IVY PL ORONO MN 55391 WILLIAM S DAMPIER CLAUDIA DAMPIER 3550 IVY PL ORONO MN 55391 38 20-117-23 42 0017 DANIEL GREGOIRE 3548 IVY PL ORONO MN 55391 DANIEL GREGOIRE 2932 NEBRASKA AVE SANTA MONICA CA 90404 38 20-117-23 42 0018 MICHAEL D DRAZAN 3546 IVY PL ORONO MN 55391 MICHAEL D DRAZAN 3546 IVY PL WAYZATA MN 55391 38 20-117-23 42 0019 RAY F WILSON 3534 IVY PL ORONO MN 55391 RAY F WILSON 3534 IVY PL WAYZATA MN 55391 38 20-117-23 42 0022 J & S WHITE 3516 IVY PL ORONO MN 55391 JAMES M & SHERRY D WHITE 3516 IVY PL WAYZATA MN 55391 38 20-117-23 42 0027 J C WHITE JR & T R WHITE 3560 IVY PL ORONO MN 55391 TERA R & JAMES C WHITE JR 3560 IVY PL WAYZATA MN 55391 38 20-117-23 42 0029 Z STROUT & M STROUT 3525 IVY PL ORONO MN 55391 ZEBADIAH STROUT MOLLY STROUT 3525 IVY PL WAYZATA MN 55391 38 20-117-23 42 0033 JONATHAN P & JULIE S PAUL 3532 IVY PL ORONO MN 55391 JONATHAN P PAUL 3532 IVY PL WAYZATA MN 55391 38 20-117-23 42 0034 TONKA BAY DEVELOPMENT LLC 3545 IVY PL ORONO MN 55391 TONKA BAY DEVELOPMENT LLC 5413 MANITOU RD EXCELSIOR MN 55331 38 20-117-23 42 0035 SAMSON CYRIL DRENTLAW 3535 IVY PL ORONO MN 55391 SAMSON CYRIL DRENTLAW 3535 IVY PL WAYZATA MN 55391 38 20-117-23 42 0037 R KOCON & J GIBNEY 3570 IVY PL ORONO MN 55391 RUSSELL KOCON JACQUELINE GIBNEY 3570 IVY PL ORONO MN 55391 38 20-117-23 42 0038 PAUL J TAUNTON 3600 IVY PL ORONO MN 55391 PAUL J TAUNTON 9980 DEERBROOK DR CHANHASSEN MN 55317 38 20-117-23 42 0039 LAKE WEST DEVELOPMENT LLC 38 ADDRESS UNASSIGNED ORONO MN 00000 LAKE WEST DEVELOPMENT LLC 14525 HWY 7 STE 265 MINNETONKA MN 55345 38 20-117-23 43 0051 WILLIAM D GUST 3034 CASCO POINT RD ORONO MN 55391 WILLIAM D GUST 3034 CASCO POINT RD WAYZATA MN 55391 38 20-117-23 43 0054 LEISEL & MARK PFLEGHAAR 3509 IVY PL ORONO MN 55391 LEISEL & MARK PFLEGHAAR 3509 IVY PL WAYZATA MN 55391 Hennepin County has developed electronic forms of certain property information databases. Hennepin County makes reasonable efforts to produce and publish the most current property information available. The viewer should understand, however, that Hennepin County makes no representation or warranties, either express or implied, or as to merchantability or fitness for a particular purpose regarding the accuracy and/or completeness of the information contained herein. AGENDA ITEM Prepared By: J. Barnhart Reviewed By: DJR Approved By: DJR 1. Purpose. To provide an update on the proposed Shoreline Estates preliminary plat at 1700 Shoreline. 2. MN§462.358 Sub 3b. Application Deadline. The application was received on July 22, 2020 and considered to be complete on that date. The 120-Day review period originally expired on November 19, 2020, but the applicant has granted an extension to February 23, 2021. 3. Background. The City Council reviewed the preliminary plat at its meetings on September 14th and October 26th. At the meeting on October 26th, the Council received a number of comments from a neighboring property owner, the City attorney requested time to address those comments for the Council. The Council tabled action to December 7th. The applicant has revised the plan now showing 6 lots and is preparing engineering plans to accompany the plat. Based on the changes and the desire to ensure all interested parties can comment in the public hearing, the Planning Commission will hold a second public hearing at their meeting on January 19th, and the Council will receive the Commission’s recommendation based their review of this revised plan. Exhibits A. CC minutes October 26, 2020 B. Letter from applicant dated December 3, 2020 References City Council staff report and exhibits October 26, 2020 City Council staff report and exhibits September 14, 2020 City Council Staff Report & Exhibits March 16, 2020 Planning Commission Exhibits dated August 17, 2020 Item No.: 22 Date: December 7, 2020 Item Description: LA20-000048 – Timothy Whitten o/b/o Irwin Jacobs 2018 Rev Trust, 1700 Shoreline Drive Preliminary Plat – Resolution Presenter: Jeremy Barnhart, AICP Community Development Director Agenda Section: Planning Department Report MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, October 26, 2020 6:00 o’clock p.m. _____________________________________________________________________________________ Page 3 of 7 There were no public comments. Mayor Walsh closed the public hearing at 6:18 p.m. Walsh moved, Johnson seconded, to adopt the attached Resolution providing for the certification of delinquent 2020 water and sewer utility charges, recycling program fees, on-site sewage treatment program, storm water charges to Hennepin County for collection of the 2021 Property Taxes. VOTE: Ayes 4, Nays 0. PLANNING DEPARTMENT REPORT 8. LA19-000048 – TIMOTHY WHITTEN O/B/O IRWIN JACOBS 2018 REV TRUST, 1700 SHORELINE DRIVE PRELIMINARY PLAT Mayor Walsh noted the Applicant has requested to table the measure, and asked if anyone would like to come up and discuss. Meredith Kuhlman, 1760 Shoreline Drive, lives west of the proposed development. She noted her father purchased the estate years ago, and it was made into three lots and the Kuhlmans decided to move to Orono because of the great schools and sprawling location. Ms. Kuhlman and her husband watched the last Council meeting and noted Mr. Whitten said he had talked to the neighbors about the development and that many are on board. She said they had not been approached or talked about the development at all and that the original average lakeshore setback (ALS) proposed affected the Kuhlman’s sightline to the lake. Ms. Kuhlman said they object to 5-7 houses being built, even though they will be beautiful, because if they had wanted to invest in a house in a neighborhood, they would have moved to Edina. She noted they tried to be very respectful of neighbors when they built their home and set it back into a hill. The fact that this development will be so densely populated is concerning and increasing traffic on Shoreline Drive adds to that. Ms. Kuhlman understands development of some sort will potentially be at the site, but noted the density of the current proposal as well as the fact that the communication hasn’t been forthright and neighborly. Carolyn Nelson, 1780 Shoreline Drive, lives next to the Kuhlmans; she noted three proposed houses are so close to the wetlands and she thinks it would be unfortunate if they were built there as there is not much of a setback. Ms. Nelson also noted they have trouble on the driveway and the developer better make sure the roads are wide enough to accommodate two delivery trucks passing one another. She believes they are crowding more houses into the space than they ought to. Bob Nelson, 1780 Shoreline Drive, said he doesn’t see why a variance should be granted as the developers know what the rules are and there doesn’t seem to be a reason for the Council to grant a variance. Barbara Burwell, 1100 Millston Road, is the property owner of 1125 and 1075 Shoreline Drive. She stated she appreciates the Councilmembers service to the community. Today she feels sad as they have already talked about the density and proposal but there have been some changes that have upset her. She is not for this subdivision with 7 lots and she understands there is a new proposal which she knows nothing about. She was offered the opportunity to walk the property with the staking of three houses and said it was very helpful but she did not see anything regarding the road, or Lots 4-7. On October 16, 2020 she was notified that the stakes were in place for the road and lots and went to the property on October 21, LA20-48 Exhibit A MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, October 26, 2020 6:00 o’clock p.m. _____________________________________________________________________________________ Page 4 of 7 2020 and met with surveyor Mark Gronburg, realtor Mike Stedman, and developer Tim Whitten. They walked the property and at that point nothing was said regarding changes to the proposal. She noted they now have two proposals, one of which is completely different, with only one business day notice. She noted she objects to the first proposal with 7 lots and she is also not in favor of 6 lots. She believes it is in Minnesota State Statute that there must be 10 days’ notice to bring a proposal. She has retained legal counsel and will ask Attorney Aaron Dean to share what they have been working on. The second proposal was 26 pages and it was not an incidental decision to put it forward the previous Friday night. She feels this is a bait-and-switch as it is a high-density 7 lot development reminding her of a square trying to be put into a circle and she does not understand it as the road goes right into her property and is a very big concern. Ms. Burwell stated this is affecting her property in a big way; at a previous meeting, she noted Mr. Whitten stated the neighbors ‘love the proposal and they have had lots of meetings.’ Ms. Burwell said there has been one meeting on March 12, 2020. She was never asked for her consent and never stated she is for this and has never wanted a development there for reasons such as density, safety, the road, the forest, the beauty, and preservation. Ms. Burwell noted this development is a big step for Orono and she knows the City does not take it lightly. She asked that the City Council deny the application for the subdivision, start over and actually speak with the neighbors to disclose their true intentions. Aaron Dean from Moss and Barnett Law Firm stated he spoke with City Attorney Mattick earlier today and was not surprised by what the Applicant has done; the Applicant owns that they are putting themselves in harm’s way by not providing notice to the neighbors. Just minutes before the meeting, the Applicant asked for a do-over and to table all discussion on the matter; they don’t want a vote because they know they are in trouble. Wherever one lives, they deserve to have peace and the Jacobs Family Trust and their consultants have turned that truth upside down. He said they want the Burwells, Kuhlmans, Nelsons and others to live with uncertainty. Mr. Dean said the time is now to vote on the 7 Lot subdivision and the 6 Lot subdivision and provide finality on those two subdivisions. He noted the neighbors hate it and Ms. Burwell should not have to hire an attorney. He gave a power-point presentation outlining the objections along with video clips of the August 17, 2020 and September 14, 2020 meetings. After audio difficulties, Mr. Dean asked the Council to go back after the presentation to consider comments by the Applicants and in a closed session go back and listen to those very audio clips so they have the benefit of a fresh recollection. Regarding one video clip, Mr. Dean noted Mr. Whitten talking about how the neighbors love the proposal; yet the Applicant only scheduled one meeting in mid- March with a little over one-week notice that no one was able to attend and they called it good because no one attended and voiced any objection. He said it is a shameful act by the Applicant to stand before the Council and say the neighbors are fine with it, when tonight three neighbors spoke and said they never agreed to it. He hopes this colors the view of everything the Applicant says going forward. Mr. Dean noted the Burwell property on screen and said somehow, they have lost sight that the Burwell residence is located on that singular lot. Staff and the developer have said they can draw a new ALS line down to 1125 Millston Road where the caretakers’ house is…but that is not the purpose of the ALS line; rather the ALS line is to protect the actual resident and there has been no consideration to Mrs. Burwell about her actual home. Mr. Dean said the biggest problem with the application is that they are trying to have too much density and they would have been far better off with 2-4 lots depending on configuration. However, this is not the neighbor’s problem, nor is it the Council’s job to come up with a plan that meets City ordinance or state law; it is the Applicants job. Mr. Dean noted Mr. Barnhart said previously that the ALS line was arbitrarily created or “manufactured” in order to have some buildable areas on Lots 1, 2 and 3. The standard for the ALS ordinance is not to arbitrarily set or manufacture a line. This 7 Lot development would require this City Council to ignore the problems with Lots 1, 2, 3 and 6 and possibly Lot 5. Mr. Dean said they would have to overlook 4 lots that would require variances and that is not fair. MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, October 26, 2020 6:00 o’clock p.m. _____________________________________________________________________________________ Page 5 of 7 He asked the Council to keep in mind the proposed ALS (Line B) on the north side is also a manufactured line...now there are two manufactured ALS lines to try and fit a 7 Lot development on a parcel that is not big enough. Mr. Dean noted the Applicant met with Ms. Burwell one day after they submitted the new proposal and did not disclose their intentions; now they want the Council to allow them to sanitize their actions, pull it back and have no vote. He showed an aerial photo on screen and said the top ALS line stops on the Burwell property at an unoccupied accessory garage building. He gave the City Attorney the ordinances regarding principal versus accessory structure and also spoke about the road plans. He said there is a requirement for 10-days’ notice under MN Statute 462.358 subdivision 3B; it was not published in the newspaper or provided to any neighbors. Mr. Dean showed an aerial on screen with a blue line which noted the definition of the ALS which would extend to Ms. Burwell’s home. He hopes the Council takes time to listen to the developer and the video clips and come back tonight with a vote. Pat Steinhoff, a lawyer from the law firm Malkerson, Gunn, Martin, representing the Applicant, noted he thought they would be talking about the request to table and did not realize they would discuss the application itself. He said if the Council is not going to table, he asks that they allow Mr. Whitten and the Applicant to make their presentation on the application. Mayor Walsh said because the Applicant has requested to table; from the Council’s perspective they will table it. However, because others were present at the meeting, he wanted to give them the opportunity to speak. He noted City Attorney Mattick would also address some of the legal arguments. Mr. Steinhoff said the reason the Applicant decided to table is because the application has been in front of the City since March with multiple Planning Commission and City Council meetings. One hour before arriving tonight, they received a 10-page letter from Mr. Dean and it is impossible to thoughtfully respond to everything in the letter, which it what they want to do. Therefore, they immediately contacted City Staff to ask that the application be tabled so they can respond in a thoughtful manner to all the things Ms. Burwell and Mr. Dean have said. He said the reason there are two alternative plans is in previous meetings there were many objections to the ALS, so the intent of the alternative concept plan was to respond to those objections by presenting a plan that put all the lots behind the ALS. Attorney Mattick said he also received Mr. Dean’s letter earlier that afternoon and has a chance to read it, but would like the opportunity to provide the Council with his thoughts on the arguments that Mr. Dean raises. In fairness, before the Council votes on the merits of the application, Attorney Mattick would like to address those comments. Mattick understands that the Applicant would also like the opportunity to submit their thoughts on the items raised. If Mr. Steinhoff can give a date that his memo will be prepared, the City can then take all of the information, respond to it and allow the Council to make a meaningful decision. Mr. Mattick also noted there was discussion about lack of notice and neighbors having to scour the internet for information and he said that is an incredibly fair request and it might make sense to table the discussion to a date-certain so people know when that meeting would happen. The Applicant has provided the City a 60-day extension. Walsh motioned, Crosby seconded, to table LA19-000048 1700 Shoreline Drive until December 7, 2020. VOTE: Ayes 4, Nays 0. MAYOR/COUNCIL REPORT Johnson had nothing to report. AGENDA ITEM Prepared By: J. Barnhart Reviewed By: DJR Approved By: DJR 1. Purpose. To consider a resolution approving a variance to allow 83% of the roof to be covered with solar panels where 70% is permitted. 2. MN§15.99 Application Deadline. The application was received on October 20, 2020 and considered to be complete on October 21st. The 60-Day review period will expire on December 20, 2020. 3. Background. The applicants propose to install a solar array on the roof of their accessory building. The solar array, intended to produce 100% of the property’s electricity needs over the course of a year, covers 83% of the roof surface, the maximum coverage is 70%. The analysis of the variance is included in the planning commission staff report. The roof configuration of the principal structure has many gables, peaks and valleys which would not support a system without variances. There are no other structures on the property, and city ordinances prohibit ground mounted systems. Staff finds that the criteria for granting a variance are satisfied and are supported by the comprehensive plan. Further, the additional surface area will have a negligible impact on any neighboring property. This is the third variance related to solar energy systems reviewed by the City. The Council granted the first, for a ground mounted system (17-3943) in May, 2017. The Council denied a second ground mounted system (LA18-000103) in February, 2019. 4. Planning Commission Vote and Comment. On November 16th, the Planning Commission held a public hearing. Following the public hearing, the Planning Commission voted 5 to 2 on a motion to approve the variance. (Kirchner and Ressler voted no). Those in opposition were concerned about the purpose of the 70% limitation, and thought perhaps an ordinance amendment was appropriate (Ressler). The solar energy regulations were introduced in December 2013 as part of Ord. 119 3rd series. That ordinance included the 70% maximum provision. A number of ordinances from other cities were used to prepare the draft ordinance, but only two were found referencing a limit for the roof mounted systems; Medina’s 70% maximum, and a model ordinance with an 80% maximum. The Planning Commission and Council discussion on the topic occurred over several months in 2013. The staff memo summarizing that action and final direction to staff occurred as part of the November 25th staff report/ meeting. The staff report and minutes is attached as Exhibit J. The entire packet is available upon request. Staff can find no record that the Planning Commission or the City Council discussed the 70% limit at any length. Staff also consulted with previous staff, who could not recall any substantive discussion on the topic. It appears the 70% limit is aesthetic based. 5. Public Comment. One letter in support of the application was received, and is attached as Exhibit I. No letters of opposition have been received. 6. Staff Recommendation. Staff recommends the Council adopt the resolution approving the Item No.: 23 Date: December 7, 2020 Item Description: LA20-000069 – All Energy Solar o/b/o Aron and Kali Johnson, 4760 Bayside, Variance – Resolution Presenter: Jeremy Barnhart, AICP Community Development Director Agenda Section: Planning Department Report AGENDA ITEM Prepared By: J. Barnhart Reviewed By: DJR Approved By: DJR variance. COUNCIL ACTION REQUESTED City Council should review the approval resolution and adopt or amend. Exhibits A. Draft Resolution B. PC Staff report C. PC Minutes - Draft D. Plans E. Practical Difficulties Statement F. Variance Narrative G. Site Visit Pictures H. Minnesota Statutes 462.357 I. Neighbor comment J. Staff report and minutes 11-25-2013 References 13-3616 file PC exhibits dated November 16, 2020 CITY OF ORONO RESOLUTION OF THE CITY COUNCIL NO. ________________________ 1 A RESOLUTION APPROVING A VARIANCE FROM MUNICIPAL ZONING CODE SECTION 78-1379 FILE NO. LA20-000069 WHEREAS, on October 20, 2020, All Energy Solar, o/b/o Aron and Kali Johnson (“Applicants”), applied for a variance from the City Code for the property addressed 4760 Bayside Road and legally described as: Lot 1, Block 1, Bayside Hills, Hennepin County, Minnesota (hereinafter the “Property”); WHEREAS, the Applicants have made application to the City of Orono for a variance to Orono Municipal Zoning Code Section 78-1379 to allow 83 percent coverage of a roof with solar panels, where 70% is permitted; and WHEREAS, on November 16, 2020, after published and mailed notice in accordance with Minnesota Statutes and the City Code, the Planning Commission held a public hearing, at which time all persons desiring to be heard concerning this application were given the opportunity to speak thereon; and WHEREAS, on November 16, 2020, the Planning Commission recommended approval of the variance; and WHEREAS, on December 7, 2020, the City Council reviewed the application and the recommendations of the Planning Commission and City staff; and NOW, THEREFORE, BE IT RESOLVED that the City Council of Orono, Minnesota hereby approves the requested variance as described above based on one or more of the following findings of fact concerning the Property: FINDINGS OF FACT: 1.This application was reviewed as Zoning File #LA20-000069. The analysis contained within staff memos and the exhibits attached to the aforesaid memos, all minutes from the above mentioned meetings, and any and all other materials distributed at these meetings are hereby incorporated by reference. 2.The Property is located in the RR-1A Zoning District. LA20-69 Exhibit A CITY OF ORONO RESOLUTION OF THE CITY COUNCIL NO. ________________________ 2 3. The Property contains 6.87 acres in area and has a defined lot width of 182 feet. 4. The Property is exempt from the Stormwater Quality Overlay District requirements. 5. Applicant has applied for the following variance: a. Variance from the roof coverage limits of 70% 6. In considering this application for variance, the Council has considered the advice and recommendation of the Planning Commission and the effect of the proposed variance upon the health, safety and welfare of the community, existing and anticipated traffic conditions, light and air, danger of fire, risk to the public safety, and the effect on values of property in the surrounding area. ANALYSIS: 1. “Variances shall only be permitted when they are in harmony with the general purposes and intent of the ordinance . . . .” The intent of the 70% rule is to avoid the visual impact of  solar panels covering a roof.  The roof structure is not visible form the street, either from  Bayside (over 600 feet away), or McCulley Road (on the other side of a large berm). 2. “Variances shall only be permitted . . . when the variances are consistent with the comprehensive plan.” The Comprehensive Plan includes “To preserve open space, light, air,  and solar access for all citizens while maintaining night sky” as a general goal  (CMP Part 2  Community Plan Foundation, page 13).  Additionally, Cities are required to include an  element of protection and access to for solar energy systems (CMP Part 3A Solar Access  Protection, page 14.)   3. “Variances may be granted when the applicant for the variance establishes that there are practical difficulties in complying with the zoning ordinance. ‘Practical difficulties,’ as used in connection with the granting of a variance, means that: a. The property owner in question proposes to use the property in a reasonable manner, however, the proposed use is not permitted by the official controls. The placement of the extra solar panels is a reasonable use.   b. The plight of the landowner is due to circumstances unique to his property not created by the landowner. the property owner did not build the house, and the desire to maximize the use of solar  panels did not appear to be the key objective during construction.  c. The variance, if granted, will not alter the essential character of the locality.” CITY OF ORONO RESOLUTION OF THE CITY COUNCIL NO. ________________________ 3 The excess coverage (of panels) will likely not be visible outside of the property.   Lastly, the State Legislature has determined that inadequate access to sunlight  for solar energy systems is a practical difficulty. The configuration of the roof  and lack of alternatives establish a practical difficulty.    4. “Economic considerations alone do not constitute practical difficulties.” Economic  considerations has not been the sole factor in the variance approval determination. 5. “Practical difficulties also include but are not limited to inadequate access to direct sunlight for solar energy systems. Variances shall be granted for earth-sheltered construction as defined in Minn. Stat. § 216C.06, subd. 2, when in harmony with Orono City Code Chapter 78.” The applicant has noted that the design of the house roof, the orientation of the accessory  structure, and the City’s prohibition of ground mounted arrays limit adequate access to  sunlight.   6. “The board or the council may not permit as a variance any use that is not permitted under Orono City Code Chapter 78 for property in the zone where the affected person's land is located.” This condition is not applicable, as solar arrays are permitted in every district. 7. “The board or council may permit as a variance the temporary use of a one-family dwelling as a two-family dwelling.” This criteria does not apply. 8. “The special conditions applying to the structure or land in question are peculiar to such property or immediately adjoining property.” The structure’s orientation to the sun does not  support adequate access to the sun for the applicants needs. 9. “The conditions do not apply generally to other land or structures in the district in which the land is located.” The conditions would apply to other structures not properly oriented to the  sun.    10. “The granting of the application is necessary for the preservation and enjoyment of a substantial property right of the applicant.” The right to the sun for solar arrays is a right  provided by the city and the state legislature. 11. “The granting of the proposed variance will not in any way impair health, safety, comfort or morals, or in any other respect be contrary to the intent of this chapter.” No suggestion that  the increased level of solar panels will impact health, safety, and comfort has been received.   12. “The granting of such variance will not merely serve as a convenience to the applicant, but is necessary to alleviate demonstrable difficulty.” The variance is not merely a convenience to  the applicant.   CITY OF ORONO RESOLUTION OF THE CITY COUNCIL NO. ________________________ 4 CONCLUSIONS, ORDER AND CONDITIONS: Based upon one or more of the above findings, the Orono City Council hereby grants a variance to Orono Municipal Zoning Code Section 78-1379 to allow upto 83 percent roof coverage, subject to the following conditions: 1. Council approval is based on the entire record, above Findings. 2. The approved project shall conform to the building plans submitted by the Applicants and annotated by City staff, attached to this Resolution as Exhibit A. 3. Any amendments to the plans which are not in conformity with City codes may require further Planning Commission and City Council review. 4. Authorities granted by this resolution run with the Property not with the Applicants, but are permissive only and must be exercised by obtaining a building permit for the new construction and commencing construction of said project. A permit must be issued within one year of the date of Council approval, or the variance will expire on that date (December 7, 2021). 5. Violation of or non-compliance with any of the terms and conditions of this resolution may result in the termination of any authority granted herein. ADOPTED by the Orono City Council on this 7th day of December 7, 2020. ATTEST: CITY OF ORONO: _______________________________ ________________________________ Anna Carlson, City Clerk Dennis Walsh, Mayor Date Application Received: October 20, 2020 Date Application Considered as Complete: October 21, 2020 60-Day Review Period Expires: December 20, 2020 To: Chair Ressler and Planning Commission Members Dustin Rief, City Administrator From: Jeremy Barnhart, AICP Community Development Director Date: November 16, 2020 Subject: #LA20-000069, All Energy Solar o/b/o Aron and Kali Johnson, 4760 Bayside, Variance Public Hearing Background The applicants are working on behalf of the property owner. They propose a roof mounted solar array that covers 83% of the roof to which it is affixed, the maximum is 70%. Practical Difficulties Analysis Applicant Submittal Information: The applicant offers that the orientation and design of the roof of the structures offers inadequate access to sunlight are practical difficulties supporting the requested variance. Additionally, they have provided supporting documentation regarding Practical Difficulties attached as Exhibit B, and should be asked for additional testimony regarding the application. The applicants also note that ground mounted solar arrays are not permitted in Orono. Planning Staff Practical Difficulty Analysis: Regarding practical difficulty, Staff notes that the State Statutes (462.357 6. (2)) identify inadequate access to sunlight as a practical difficulty. In its review staff notes that the improvement will have no impact on neighboring properties. Further, staff concurs that the state Statute does define inadequate access to sunlight as a practical difficulty. With the city’s prohibition of ground mounted systems (and recent denial of a ground mounted array variance on a different property (LA18-000103)), the applicant has no other choice. Application Summary: The applicant is requesting a variance to allow solar arrays to cover more than 70% of the roof Staff Recommendation: Planning Department Staff recommends approval LA20-69 ExB FILE #LA20-000069 November 16, 2020 Page 2 of 4 LOT ANALYSIS WORKSHEET Section 78-395 – Accessory Structure Setbacks: RR-1A DISTRICT Required Existing Proposed (Array only) Front 100 627 627 Rear 100 154 156 Side Street 100 88 102 Side 50 300 302 Section 78- 395 - Lot Area/Width: RR-1A DISTRICT Lot Area Lot Width Required 217,800 s.f. (5 acres) 300’ Actual 299,105 s.f. (6.87 acre) 182’ Section 78-1403- Structural Building Coverage: The property is greater than 2 acres, structural coverage does not apply. Section 78-1680 and 78-1700 - Hardcover Calculations: The property is in an exempt zone, hardcover calculations do not apply. Applicable Regulations: Variance (748-1379 (e) 2. h.): Maximum area. In all residential zoning districts, the collector and mounting system of a roof-mounted solar energy system shall cover no more than 70 percent of the roof to which it is affixed. Governing Regulation: Variance (Section 78-123) In reviewing applications for variance, the Planning Commission shall consider the effect of the proposed variance upon the health, safety and welfare of the community, existing and anticipated traffic conditions, light and air, danger of fire, risk to the public safety, and the effect on values of property in the surrounding area. The Planning Commission shall consider recommending approval for variances from the literal provisions of the Zoning Code in instances where their strict enforcement would cause practical difficulties because of circumstances unique to the individual property under consideration, and shall recommend approval only when it is demonstrated that such actions will be in keeping with the spirit and intent of the Orono Zoning Code. Economic considerations alone do not constitute practical difficulties. Practical difficulties also include but are not limited to inadequate access to direct sunlight for solar energy systems. Variances shall be granted for earth-sheltered construction as defined in Minn. Stat. § 216C.06, subd. 2, when in harmony with this chapter. The board or the council may not permit as a variance any use that is not permitted under this chapter for property in the zone where the affected person's land is located. The board or council may permit as a variance the temporary use of a one-family dwelling as a two-family dwelling. FILE #LA20-000069 November 16, 2020 Page 3 of 4 According to MN §462.357 Subd. 6(2) variances shall only be permitted when: 1. The variance is in harmony with the general intent and purpose of the Ordinance. The intent of the 70% rule is to avoid the visual impact of solar panels covering a roof. The roof structure is not visible form the street, either from Bayside (over 600 feet away), or McCulley Road (on the other side of a large berm). The variance is consistent with the comprehensive plan. The Comprehensive Plan includes “To preserve open space, light, air, and solar access for all citizens while maintaining night sky” as a general goal (CMP Part 2 Community Plan Foundation, page 13). Additionally, Cities are required to include an element of protection and access to for solar energy systems (CMP Part 3A Solar Access Protection, page 14.) 2. The applicant establishes that there are practical difficulties. a. The property owner proposes to use the property in a reasonable manner not permitted by the official controls; The placement of solar panels is a reasonable use. b. There are circumstances unique to the property not created by the landowner; the property owner did not build the house, and the desire to maximize the use of solar panels does not appear to be the key objective during construction and c. The variance will not alter the essential character of the locality. The excess coverage (of panels) will likely not be visible outside of the property. Lastly, the State Legislature has determined that inadequate access to sunlight for solar energy systems is a practical difficulty. Additionally City Code 78-123 provides additional parameters within which a variance may be granted as follows: 3. Economic considerations alone do not constitute practical difficulties. Economic considerations has not been the sole factor in the variance approval determination. 4. Practical difficulties also include but are not limited to inadequate access to direct sunlight for solar energy systems. Variances shall be granted for earth-sheltered construction as defined in Minn. Stat. § 216C.06, subd. 2, when in harmony with Orono City Code Chapter 78. The applicant has noted that the design of the house roof, the orientation of the accessory structure, and the City’s prohibition of ground mounted arrays limit adequate access to sunlight. 5. The board or the council may not permit as a variance any use that is not permitted under Orono City Code Chapter 78 for property in the zone where the affected person's land is located. This condition is not applicable, as solar arrays are permitted in every district. 6. The board or council may permit as a variance the temporary use of a one-family dwelling as a two-family dwelling. This condition is not applicable. 7. The special conditions applying to the structure or land in question are peculiar to such property or immediately adjoining property. The structure’s orientation to the sun does not support adequate access to the sun. 8. The conditions do not apply generally to other land or structures in the district in which the land is located. The conditions would apply to other structures not properly oriented to the sun. 9. The granting of the application is necessary for the preservation and enjoyment of a substantial property right of the applicant. The right to the sun for solar arrays is a right provided by the city and the state legislature. 10. The granting of the proposed variance will not in any way impair health, safety, comfort or morals, or in any other respect be contrary to the intent of this chapter. No suggestion FILE #LA20-000069 November 16, 2020 Page 4 of 4 that the increased level of solar panels will impact health, safety, and comfort has been received. 11. The granting of such variance will not merely serve as a convenience to the applicant, but is necessary to alleviate demonstrable difficulty. The variance is not merely a convenience to the applicant. The Commission may recommend or Council may impose conditions in granting of variances. Any conditions imposed must be directly related to and must bear a rough proportionality to the impact created by the variance. No variance shall be granted or changed beyond the use permitted in this chapter in the district where such land is located. Public Comments To date, no public comments have been received. The applicants have submitted Adjacent Owners Acknowledgment forms from neighboring properties, 87 McCulley Road and 4720 Bayside Road. Issues for Consideration 1. Does the Planning Commission find that that the property owner proposes to use the property in a reasonable manner which is not permitted by an official control? 2. Does the Planning Commission find that the variance, if granted, will not alter the essential character of the neighborhood? 3. Does the Commission find it necessary to impose conditions i n order to mitigate the impacts created by the grant ing of the requested variance ? 4. Are there any other issues or concerns with this application? Planning Staff Recommendation Planning Staff recommends approval of the variance as presented. List of Exhibits Exhibit A. Application Exhibit B. Plans Exhibit C. Practical Difficulties Documentation Form Exhibit D. Survey Exhibit E. Variance Narrative Exhibit F. Adjacent Neighbor Acknowledgment Forms Exhibit G. Site Visit pictures Exhibit H. Excerpt Solar Energy System Regulations Exhibit I. State Statute Exhibit J. Mailing information References 2040 Comprehensive Plan MINUTES OF THE ORONO PLANNING COMMISSION Monday, November 16, 2020 6:00 o’clock p.m. _____________________________________________________________________________________ Page 1 of 5  LA20-000069 ALL ENERGY SOLAR, 4760 BAYSIDE ROAD, VARIANCE. STAFF, JEREMY BARNHART Kali Anderson, Applicant, was present. Staff presented a summary of packet information. Regarding practical difficulty, Staff notes that the State Statutes identify inadequate access to sunlight as a practical difficulty; in its review, Staff notes that the improvement will have no impact on neighboring properties. The City prohibits ground mounted solar systems and recently denied a ground mounted array variance on a different property. Staff supports the variance as proposed. Gettman asked if aesthetics is really the only reason that the statute exists, or that actual guidance exists. Barnhart does not know all of the reasons, but that seems to be the most obvious one. From a structure standpoint, if the structure can support the additional amount of solar panels, that is a building code question not necessarily a variance question. Primarily, it is a visual impact type of issue. Collin Buechel, a representative from All Energy Solar, stated they are proposing to meet the variance and to address the question; they will get structural analysis on the roof. Any sort of structural components or concerns will be addressed with a professional engineer licensed in the State of Minnesota doing analysis on the roof. They are applying for a variance for the 70% coverage rule and as Barnhart addressed, one of the big reasons the 70% coverage rule is in place is to minimize the visual appearance. If they were to reduce the solar panel system to meet the 70% coverage, they would also have an irregular layout; as far as an eyesore, the proposed plan is a clean-cut, square on top of the roof. If the intent of that 70% coverage rule, in combination with it not really being visible from either road besides just the homeowners, contributes to that factor. As Barnhart mentioned, according to Minnesota statute, access to direct sunlight is defined as a practical difficulty. He noted the main reason this design was chosen is the City of Orono also does not allow ground mount solar, so one could argue that there is plenty of access to solar in the yard, however given that ground mount systems are not permitted, this roof top system is what they are left with. Libby asked a few questions as he has dealt with some of these designs and engineering on other properties outside of Orono. He asked if this is really oriented to be southwest facing, so as the winter sun zenith drops to the horizon the Applicant will still be able to gather as much sunlight as possible. Mr. Buechel replied that is correct. Libby asked if they are incorporating battery backup with this and are able to store any of this energy and use post sunset. Mr. Buechel said he believes they are not doing any sort of backup system. Libby asked if they are integrating the energy that is gathered there into the primary structure, or is this just solely for the secondary outbuilding. Mr. Buechel noted this will be tied in and the homeowner will be able to offset their electricity use on their residence. LA20-69 Ex C MINUTES OF THE ORONO PLANNING COMMISSION Monday, November 16, 2020 6:00 o’clock p.m. _____________________________________________________________________________________   Page 2 of 5    Bollis noted this will be a trend that will continue and he is curious as far as clients in other cities, if this is a pretty common ordinance. Mr. Buechel said there are some other jurisdictions that allow for the coverage; numbers he has seen are more in the 80% range, rather than 70%. Typically, that is on the actual residence, not necessarily the accessory structures. There are not many that have the coverage limitation and if they did it was usually before; the current building code now incorporates access pathways for firemen to get on the roof and still have access to put out fires. With the new building code being enforced in April of 2020, some of those type of preventative methods for safety and is probably part of what this coverage limitation was used to address, and has now been taken into consideration in the current building code. Erickson asked if they contemplate removing or trimming any trees in order to gain better solar access. Mr. Buechel does not believe so. Kirchner noted it had been said that 83.2% of coverage is required to obtain this aesthetic look of the squared off panels; would it be possible, obviously not at 70%, but to go less than that to obtain a squared off visual appearance. Mr. Buechel replied he may have misspoken. Right now it is a nice, cohesive design, but that number of panels is designed perfectly to offset 100% of their electricity usage, and that is the rationale behind the design. He noted he was more-so speaking on if they remove panels, they lose that design. Kirchner clarified the primary purpose of this design as well as the subsequent variance request is to accommodate the power required at the primary residence and to offset that. The representative from All Energy Solar replied that is correct. Kirchner asked if this could function and provide some power without requiring a variance in going above the 70%. The representative from All Energy Solar answered yes, they could reduce panels and offset a smaller portion of their electricity bill, but the whole rationale is in order for the solar to work for the Applicant, they’d like a full offset. Ressler said he believes the homeowner had comments, as well. Kali Anderson, homeowner at 4760 Bayside Road, noted from a technical standpoint it would absolutely be feasible to have fewer panels. Their goal was to offset all of their energy usage on an annual basis and one reason for that is the interconnect process with Wright-Hennepin Co-op is such that this system didn’t necessarily pencil out financially without being able to offset all of their electricity. Ms. Anderson noted Mr. Buechel had described the logistics and she wants to share why this is important to her family. As stated, the system has been designed to offset the electricity they anticipate needing on an annual basis. In her opinion, the production of energy from carbon-free sources is really becoming more and more important. She thinks the Governor would probably agree, because in March of 2019, the State of Minnesota announced a goal that 100% of our electricity would come from carbon-free sources. In order to meet that goal, she said we need to make changes in both how we use and produce electricity. Some of MINUTES OF THE ORONO PLANNING COMMISSION Monday, November 16, 2020 6:00 o’clock p.m. _____________________________________________________________________________________   Page 3 of 5    these changes will probably go unnoticed by all of us; a lot of these changes will come from the electric companies at the utility scale and we will be none-the-wiser. Some of these changes would be very visible to homeowners, for example, putting extra insulation in our homes to make our homes more efficient. One change they are talking about today is such that it would make Ms. Anderson and her family happy and smile every time they look at these solar panels because they know they are doing everything in their power to reduce the carbon footprint while teaching their children the importance of living within earth-means. On a national scale, the push to become carbon-neutral is of course, stemming from climate change. The international panel on climate change indicated that in order to keep our way of life approximately similar to today’s standards, we need to keep our global temperatures from rising more than 1.5 degrees Celsius. If we imagine for a moment that we allow our earth’s temperature to raise up to 3 degrees Celsius, the National Audubon Society has estimated that 66% of birds in North America would become extinct, including up to 50% of raptors. This estimate was only conducted for birds, but she thinks we can all extrapolate these numbers and imagine the chain effect on the rest of the ecosystem, including our food production. The National Audubon Society also estimates that if we can keep our increase in global temperature to 1.5 degrees Celsius, 75% of these avian species could be saved. In order for our national energy production to become carbon-neutral by 2050, we would need to develop, construct, and bring online approximately 1,000 gigawatts of wind, 1,000 gigawatts of solar, and 1,000 gigawatts of either hydro, nuclear, or another non-carbon energy source. This equates to doubling the work force in the next fifteen years, and doubling that number again ten years after that by the year 2045. Those numbers feel a bit staggering to Ms. Anderson. To bring it back to the local level, she realizes the little tiny system they are talking about here is not even a drop in the bucket when talking about national needs. However, this is very significant to her family; her son is 4 years old, and her daughter is 2 years old and they are already asking what power lines are and what they do. They think wind turbines are really cool and while they haven’t had a lot of exposure to solar panels yet, Ms. Anderson has no doubt that they will be spending hours talking about how they can make energy and how they can give people the ability to turn lights on in their home. If for no other reason, Ms. Anderson is asking the Planning Commission to approve this variance so her children can grow up knowing and understanding that everyone needs to do their part to keep our collective home safe. Chair Ressler opened the public hearing at 6:17 p.m. Chair Ressler closed the public hearing at 6:17 p.m. Chair Ressler said to Barnhart they’ve discussed a bit about what the spirit of the maximum of 70% is how Orono views the maximum for coverages and practical difficulty can allot for accessibility to sunlight. Of course the alternative would be to clear trees and he does not think anyone is for that, either. His question is perhaps Barnhart can give him some insight as far as the 70% access to sunlight if there is not an alternative placement for it in this case. He would have to look a bit closer at the primary, but it does not seem like it’s a large difference between what is allotted and what is requested and that could be argued either way. He is looking for more insight on the definition of the practical difficulty as it relates to accessibility to sunlight. Barnhart replied he may not have a lot of background on that, but the State statute says practical difficulties also include, but are not limited to, inadequate access to direct sunlight for solar energy system. He noted that is all it says on the subject, so maybe the question is, is “inadequate access” the difference between 70% and 83%. The 70% is Orono’s number and is not a State number, so Barnhart applied the practical difficulty for the request for variance. Onscreen, Barnhart pointed out the roofline of the principal structure and said it is really a lot of little roofs and they would get to that 70% pretty MINUTES OF THE ORONO PLANNING COMMISSION Monday, November 16, 2020 6:00 o’clock p.m. _____________________________________________________________________________________   Page 4 of 5    quickly and pretty inefficiently to create the desired amount of solar panel. They have also already learned that the option in terms of providing ground-mounted solar array, which in many respects is much bigger screened, is a variance that the Council in the past has not been willing to accept. He noted they approved one but denied the most recent one. He cannot offer that as a recommendation in terms of variable and what the Applicant is asking for. He thinks the 13% difference between what is allowed and what they are requesting is reasonable, given when they know to be a practical difficulty and the impact it has on the adjacent property. Barnhart thinks they are satisfying the requirements of City code by approving this variance. Kirchner is struggling a little bit, he has heard the practical difficulties were listed as inadequate access to sunlight, and if he understands correctly, it does not seem that there is inadequate access to sunlight. Rather, in order to offset the primary structure’s power consumption, there needs to be this amount of panels. He understands that the roofline of the primary structure is a challenging roof with many gables, which then allows for the accessory structure to be the next best option for the placement of this. He is struggling to understand how the gables on the roof of the primary structure should then allow for the variance over and above the 70% here. Generally, he is very supportive of something like this and he believes it is a great use of the property; it looks like there is a lot of land there and good space to do something like this. He is struggling on truly grasping that the practical difficulty is inadequate access to sunlight. Gettman said the State statute actually says “the practical difficulties shall include, but are not limited to, the access to the sunlight.” He sees this as discretionary and said they have arbitrarily come up with the 70% and that seems to be for the fire control, so if they are able to still do the fire control he does not see any reason why this arbitrary number of 83% would not be acceptable. McCutcheon said one could argue that just because of where we are located north in the northern hemisphere that we have inadequate access to the sun. Being in Minnesota and that far north in the winter it is the access to our sun, he thinks they can all agree, that is inadequate. Going forward, the City will see more of this and the challenges and will have to walk before they run. This situation is not a big ask and he is for it. Erickson said of the various solar applications received to date, this impressed him as perhaps the best one for a number of factors. One, the placement of this building on the roof and in relation to this property and relation to the neighbors, the neighbors will not complain about how it looks. Also, being on the roof is desirable to being on the ground and also reduces any temptation to cut down trees. He noted the southeast placement of this roof is fortunate, because Frank Lloyd Wright had thoughts on passive solar and recommended to his students that they always place their walk out buildings with most of the glass facing southeast. His reasoning was that in that arrangement they would catch the morning sun to warm the building and as the day wore on, the sun would swing around to the west and there wouldn’t be as much solar buildup through the window. He feels very comfortable in supporting this application. Chair Ressler noted perhaps this is an opportunity for the City to look at what their limitations are, why is it 70%, is it because of fire safety and has that been addressed or mitigated, then that could be an opportunity to revisit what those rules and regulations are for. However, it is his interpretation of this variance would be placement for solar panels with accessibility to sunlight, not increasing the available percentage of what has been allotted in the City code. He personally thinks that it is honorable to want to get to a net zero as far as sunlight accessibility goes and he does not dismiss that. He looks at it two ways: either the City needs to increase the allotted amount of percentage of coverage, or they need to MINUTES OF THE ORONO PLANNING COMMISSION Monday, November 16, 2020 6:00 o’clock p.m. _____________________________________________________________________________________   Page 5 of 5    stick with what they’ve got because 70% is the rule and he does not see a reason in this case to go above and beyond it just because it is aesthetically not imposing. If nothing else, perhaps it is an opportunity to research deeper as to why that 70% number could not be increased. Bollis asked Mr. Buechel in designing these systems, in the standard for this to design it for 100%, or 110%, 120%, or something like that. Mr. Buechel said it depends on what the clients are looking to do. Some clients are trying to maximize their return on investment; depending on the utility there are different rebates, tax credits, and it is entirely based off of location, what utility they have, their property, but yes, in general the goal is to design complete offset of electricity for most projects. Bollis asked in that design, do they accommodate for the panels deteriorating over time; do they overdesign in order to offset the 100% 10 years from now. Mr. Buechel replied no, it is based off the wattage of the panels because theoretically they would not deteriorate. He noted if there are newer model panels and a client wanted to remove what they have to get their system higher wattage based on technology improvements, they can do that, as well, and remove and recycle those panels. Kirchner asked with this system, is there any issue with the amount of sunlight it will capture or is it logistics of how many watts each panel is in order to be able to get to the capacity to offset the power usage. Mr. Buechel said they are using one of the highest wattage panels that are available on the market for this project, so it is certainly the access, not so much the difference in panel size. Kirchner said it has to do with how much sunlight those panels are receiving in order to generate the amount of watts they do, or how does that work. Mr. Buechel replied yes, the panel choice and the design is based to off-set 100% of the electricity bill. With their yearly usage, this system should produce what their electricity consumption is forecasted to be. Kirchner said in order to accomplish that, they need to go above and beyond the 70% up to the 83%. Collin replied that is correct. Libby moved, Gettman seconded, to approve LA20-000069, 4760 Bayside Road, Variance as applied. VOTE: Ayes 5 (Bollis, Erickson, Gettman, Libby, McCutcheon), Nays 2 (Kirchner, Ressler). COMPANY INFORMATION CLIENT INFORMATION SYSTEM DETAILS PROJECT-PAGE TITLE ALL ENERGY SOLAR, INC 1264 ENERGY LANE ST PAUL, MN 55108 (800) 620-3370 INFO@ALLENERGYSOLAR.COM PAGE NUMBER A0 REVISIONS LAST: 10/20/20 AM AZIMUTH NOTES: 1. (2) SOLAREDGE SE10000H-US INVERTER(S) 2. ARRAY 1: 18° TILT, 155° AZIMUTH 3. PANELS COVER 83.2% OF ROOF SURFACE COVER PAGE <aCustName(s)> <aCustAddress1> <aCustAddress2> <aCustAddress3> PO <aCustPONumber> N BAYSIDE RD 4760 Bayside RD Maple Plain, MN 55359-9620 Kali Anderson 00030523 REC Alpha 440 49 Flush Roof Mount 21.56 Panel Type # of Panels System Size (kW) COMPANY INFORMATION CLIENT INFORMATION SYSTEM DETAILS PROJECT-PAGE TITLE ALL ENERGY SOLAR, INC 1264 ENERGY LANE ST PAUL, MN 55108 (800) 620-3370 INFO@ALLENERGYSOLAR.COM PAGE NUMBER A1 REVISIONS LAST: 10/20/20 AM NOTES: 1. ELEVATIONS MAY VARY DEPENDING ON GROUND ELEVATION BUT ARE DRAWN TO THE BEST OF OUR ABILITY 2. 2X6 TRUSS @ 8' OC ELEVATION DRAWINGS Aron and Kali Anderson 4760 BAYSIDE RD MAPLE PLAIN, MN 55359 PO 30523 SOUTH EAST ELEVATION SOUTH WEST ELEVATION 1 4 '-0 " 1 4 '-1 0 " 2 2 '-2 " 2 2 '-3 " 1'-4"47'-8"1'-4" 50'-4" 1 4 '-0 " 1 4 '-1 0 " 2 2 '-2 " 2 2 '-3 " 23'-10" 26'-8" COMPANY INFORMATION CLIENT INFORMATION SYSTEM DETAILS PROJECT-PAGE TITLE ALL ENERGY SOLAR, INC 1264 ENERGY LANE ST PAUL, MN 55108 (800) 620-3370 INFO@ALLENERGYSOLAR.COM PAGE NUMBER A2 REVISIONS LAST: 10/20/20 AM MIN MAX SOLAREDGE STRING LENGTH: 120/240V, P300, P320, P370, P400 MODULE WATTS *STRINGING TO BE DETERMINED ON SITE 2X6 TRUSS @ 8' OC RAIL DIAGRAM AZIMUTH <aCustName(s)> <aCustAddress1> <aCustAddress2> <aCustAddress3> PO <aCustPONumber> N Aron and Kali Anderson 4760 BAYSIDE RD MAPLE PLAIN, MN 55359 PO 30523 RACKING FLASHINGMODULE 2X4 PURLINS @ 16" OC (49) REC REC440AA 72 MODULES (49) P505 OPTIMIZERS (2) SOLAREDGE SE10000H-US INVERTER(S) STRINGS: (1) STRING(S) OF 13 OPTIMIZERS (3) STRING(S) OF 12 OPTIMIZERS ((Qty of circuits with the number of inverters optimizers above)) STRING(S) OF (Qty of inverters/optimizers in a circuit/string) OPTIMIZERS ((Qty of circuits with the number of inverters optimizers above)) STRING(S) OF (Qty of inverters/optimizers in a circuit/string) OPTIMIZERS ((Qty of circuits with the number of inverters optimizers above)) STRING(S) OF (Qty of inverters/optimizers in a circuit/string) OPTIMIZERS SNAP-N-RACK MOUNTING HARDWARE: 1. (102) S-5 SOLAR FOOT 2. (14) RAIL SPLICES 3. CLAMPS (84) MIDCLAMPS (28) ENDCLAMPS 4. RAIL LENGTHS: (28) 168" RAILS LEGEND: NEGATIVE END: POSITIVE END: 1 7 " 2 8 6 " 1 7 " 3 2 0 " 16" 572" 16" 604" COMPANY INFORMATION CLIENT INFORMATION SYSTEM DETAILS PROJECT-PAGE TITLE ALL ENERGY SOLAR, INC 1264 ENERGY LANE ST PAUL, MN 55108 (800) 620-3370 INFO@ALLENERGYSOLAR.COM PAGE NUMBER A3 REVISIONS LAST: 10/20/20 AM AZIMUTH PROPERTY MAP <aCustName(s)> <aCustAddress1> <aCustAddress2> <aCustAddress3> PO <aCustPONumber> N NOTES: 1. (2) SOLAREDGE SE10000H-US INVERTER(S) 2. ARRAY 1: 18° TILT, 155° AZIMUTH 3. PANELS COVER 83.2% OF ROOF SURFACE 4760 Bayside RD Maple Plain, MN 55359-9620 Kali Anderson 00030523 REC Alpha 440 49 Flush Roof Mount 21.56 Panel Type # of Panels System Size (kW) PROPOSED SOLAR ARRAY 145' BAYSIDE RDMCCULLEY R D P R O P E R T Y L I N E COMPANY INFORMATION CLIENT INFORMATION SYSTEM DETAILS PROJECT-PAGE TITLE ALL ENERGY SOLAR, INC 1264 ENERGY LANE ST PAUL, MN 55108 (800) 620-3370 INFO@ALLENERGYSOLAR.COM PAGE NUMBER A4 REVISIONS LAST: 10/20/20 AM AZIMUTH MCCULLEY RD STREET VIEW <aCustName(s)> <aCustAddress1> <aCustAddress2> <aCustAddress3> PO <aCustPONumber> N NOTES: 1. (2) SOLAREDGE SE10000H-US INVERTER(S) 2. ARRAY 1: 18° TILT, 155° AZIMUTH 3. PANELS COVER 83.2% OF ROOF SURFACE 4760 Bayside RD Maple Plain, MN 55359-9620 Kali Anderson 00030523 REC Alpha 440 49 Flush Roof Mount 21.56 Panel Type # of Panels System Size (kW) PROPOSED SOLAR ARRAY COMPANY INFORMATION CLIENT INFORMATION SYSTEM DETAILS PROJECT-PAGE TITLE ALL ENERGY SOLAR, INC 1264 ENERGY LANE ST PAUL, MN 55108 (800) 620-3370 INFO@ALLENERGYSOLAR.COM PAGE NUMBER A5 REVISIONS LAST: 10/20/20 AM ACCOUNT: 150-1693-4110 PREMISE: NA METER: 38129830 AZIMUTH NOTES: 1. (2) SOLAREDGE SE10000H- US INVERTER(S) = 20kW AC 2. ARRAY 1: 155° AZIMUTH, 18° TILT (49) REC 440W = 21.56kW 3. ARRAY 2: (Array 2 Azimuth)° AZIMUTH, (Array 2 Tilt)° TILT ((Array 2 Panel Qty)) REC 440W = (Array 2 kW)kW 4. ARRAY 3: (Array 3 Azimuth)° AZIMUTH, (Array 3 Tilt)° TILT ((Array 3 Panel Qty)) REC 440W = (Array 3 kW)kW 5. ARRAY 4: (Array 4 Azimuth)° AZIMUTH, (Array 4 Tilt)° TILT ((Array 4 Panel Qty)) REC 440W = (Array 4 kW)kW SITE MAP N LABELS LOCATED ON PV PRODUCTION METER, BI- DIRECTIONAL METER, AC DISCONNECT(S), INVERTER(S), AND APPROPRIATE LABELS ON MAIN ELECTRIC SERVICE. ALL LABELS ARE PERMANENT, WEATHERPROOF, AND DURABLE THERE ARE NO CLEARANCE ISSUES DUE TO OVERHEAD POWERLINES. NOTES: 1. LOCATION OF SERVICE PANEL AND ELECTRICAL EQUIPMENT ARE SHOWN. FINAL LOCATION MAY CHANGE 2. LOCATION OF SERVICE PANEL AND ADDITIONAL ELECTRICAL EQUIPMENT NOT DRAWN TO SCALE 3. AC DISCONNECT AND PRODUCTION METER WITHIN 10' OF MAIN SERVICE METER/BI-DIRECTIONAL METER. 24/7 UNESCORTED KEYLESS ACCESS TO BE PROVIDED FOR UTILITY AC DISCONNECT, PV PRODUCTION METER, & BI-DIRECTIONAL METER. 4. PV EQUIPMENT SHALL BE INSTALLED IN ACCORDANCE WITH NEC 690 AND POSTED WITH APPLICABLE WARNINGS, SIGNAGE, AND PLAQUES PER NEC 705-10, 690-17, & 690-64 (b)(5). CALL-OUTS: 1: SOLAR PANELS 2: OPTIMIZERS 3: INVERTERS 4: PV SUBPANEL 5: UTILITY FUSED AC DISCONNECT 6: TERMINAL BOX 7: OUTGOING METER 8: INCOMING METER 9: MAIN ELECTRIC SERVICE 10: HOUSE SERVICE METER 11: HOUSE ELECTRIC SERVICE DISTANCES: SOLAR PANELS - OPTIMIZERS: 5' MAX OPTIMIZERS - INVERTERS: 75' MAX INVERTERS - PV SUBPANEL: 2' PV SUBPANEL - UTILITY FUSED AC DISCONNECT: 2' UTILITY FUSED AC DISCONNECT - TERMINAL BOX: 2' TERMINAL BOX - OUTGOING METER: 2' OUTGOING METER - INCOMING METER: 2' TERMINAL BOX - MAIN ELECTRIC SERVICE: 2' BAYSIDE RD M C C U L L E Y R D 4760 Bayside RD Maple Plain, MN 55359-9620 Kali Anderson PO Number 00030523 1&2 3 - 8 9 ARRAY 1 < 1 0 ' 1011 LA20-69 ExD PRACTICAL DIFFICULTIES DOCUMENTATION FORM LA20-000069 1. The property owner proposes to use the property in a reasonable manner not permitted by the Zoning Chapter. Response: The solar ordinance as outlined by the City of Orono allows solar energy systems to be used in all zoning districts, but is only permitted as a roof-mounted system. The property owner proposes to install a roof-mounted solar system. 2. The plight of the landowner is due to circumstances unique to his property not created by the landowner. Response: The residence was built in 1999 and the current property owners purchased in 2018. The residence's roof structure consists of many valleys and hips that are not feasible for solar panels to be installed on. In addition, ground mounted solar PV systems are not permitted in the City of Orono, leaving this structure and more specifically, this roof plane, as the remaining ideal location to place solar panels. 3. The variance, if granted, will not alter the essential character of the locality. Response: Rooftop solar PV is a permitted use in the City of Orono. The proposed array will have limited visibility if any from neighbors and fellow residents due to flush mounted design, natural screening, and location and tilt of the roof plane. 4. Economic considerations alone do not constitute practical difficulties if reasonable use for the property exists under the terms of the Zoning Chapter. Response: Our design meets the 2020 State of Minnesota Building code; however, it does not meet the City of Orono's requirements outlined in Sec. 78-1379 of Orono's Zoning Ordinance. Specifically Sub e, number 2, letter h which states, "Maximum area. In all residential zoning districts, the collector and mounting system of a roof-mounted solar energy system shall cover no more than 70 percent of the roof to which it is affixed". The current array design covers approximately 83% of the roof plane. Minnesota Statute 462.357, subd. 6, states that inadequate access to direct sunlight for solar energy systems is a practical difficulty. 5. Practical difficulties include, but are not limited to, inadequate access to direct sunlight for solar energy systems. Variances shall be granted for earth-sheltered construction as defined in Minnesota Statutes, Section 116J.06, Subd. 2, when in harmony with this Chapter. Response: The property consists of two buildings: the residence and a pole barn. The residence's back roof is Northeast facing while the front is Southwest facing. The pole barn is South-Southeast facing, at 155 degrees azimuth. Due to Minnesota residing on the North side of the equator line, the optimal azimuth for solar access is South, therefore the pole barn is the better suited location for solar panels. Additionally, the residence's roof structure consists of many valleys and hips that are not feasible for solar panels to be installed on. Minnesota Statute 462.357, subd. 6, states that inadequate access to direct sunlight for solar energy systems is a practical difficulty. 6. The Board of Appeals and Adjustments or the Council may not permit as a variance any use that is not allowed under this Chapter for property in the zone where the affected person's land is located. Response: N/A 7. The Board or Council may permit as a variance the temporary use of a one-family dwelling as a two-family dwelling. Response: N/A 8. The special conditions applying to the structure or land in question are peculiar to such property or immediately adjoining property. Response: The property consists of two buildings: the residence and a pole barn. The residence's back roof is Northeast facing while the front is Southwest facing. The pole barn is South-Southeast facing, at 155 degrees azimuth. Due to Minnesota residing on the North side of the equator line, the optimal azimuth for solar access is South, therefore the pole barn is the better suited location for solar panels. Additionally, the residence's roof structure consists of many valleys and hips that are not feasible for solar panels to be installed on. 9. The conditions do not apply generally to other land or structures in the district in which said land is located. Response: N/A 10. The granting of the application is necessary for the preservation and enjoyment of a substantial property right of the applicant. Response: It is the property owner's and right to supplement or utilize alternatives to conventional fuels, in which they are choosing to do so by installing a solar energy system. 11. The granting of the proposed variance will not in any way impair health, safety, comfort, morals, or in any other LA20-69 ExE respect be contrary to the intent of the Zoning Code. Response: The City of Orono's Community Management Plan, Part 3A Environmental Protection Plan outlines the need for protecting solar access. Granting this proposed variance will not impair health, safety, comfort, morals or otherwise, but rather be contributing to the City's 2040 plan. 12. The granting of such variance will not merely serve as a convenience to the applicant but is necessary to alleviate demonstrable difficulty. Response: Our design meets the 2020 State of Minnesota Building code; however, it does not meet the City of Orono's requirements outlined in Sec. 78-1379 of Orono's Zoning Ordinance. Specifically Sub e, number 2, letter h which states, "Maximum area. In all residential zoning districts, the collector and mounting system of a roof-mounted solar energy system shall cover no more than 70 percent of the roof to which it is affixed". The current array design covers approximately 83% of the roof plane. Minnesota Statute 462.357, subd. 6, states that inadequate access to direct sunlight for solar energy systems is a practical difficulty. 1264 Energy Lane St. Paul, MN 55108 www.allenergysolar.com October 19, 2020 Dear City of Orono, Aron and Kali Anderson live at 4760 Bayside Road in Orono. They are seeking to install a solar photovoltaic (PV) system on the roof of a pole barn on their property. Minnesota §462.357, subd. 6, states that inadequate access to direct sunlight for solar energy systems is a practical difficulty. The combination of ground-mounted solar PV arrays not being permitted in Orono and the uniqueness of the property, limit access to direct sunlight on this property. In order to maximize production of the system on the property, All Energy Solar has designed a flush-mounted solar PV system to go on the Southern facing roof plane of the pole barn. The solar will be interconnected to a meter that is located at the pole barn. The array will not be visible from the nearby streets - McCulley and Bayside Roads. Our design meets the 2020 State of Minnesota Building code; however, it does not meet the City of Orono’s requirements outlined in Sec. 78-1379 of Orono’s Zoning Ordinance. Specifically Sub e, number 2, letter h which states, “Maximum area. In all residential zoning districts, the collector and mounting system of a roof-mounted solar energy system shall cover no more than 70 percent of the roof to which it is affixed”. The current array design covers approximately 83% of the roof plane. This proposed system will not impact the character of the neighborhood and will not affect the welfare, safety or health of the community. The proposed system will help Aron and Kali offset their electricity use and contribute to the State of Minnesota’s clean energy goals. Sincerely, All Energy Solar LA20-69 ExF LA20-69 ExG 462.357 OFFICIAL CONTROLS: ZONING ORDINANCE.​ Subdivision 1.Authority for zoning.For the purpose of promoting the public health, safety, morals,​ and general welfare, a municipality may by ordinance regulate on the earth's surface, in the air space above​ the surface, and in subsurface areas, the location, height, width, bulk, type of foundation, number of stories,​ size of buildings and other structures, the percentage of lot which may be occupied, the size of yards and​ other open spaces, the density and distribution of population, the uses of buildings and structures for trade,​ industry, residence, recreation, public activities, or other purposes, and the uses of land for trade, industry,​ residence, recreation, agriculture, forestry, soil conservation, water supply conservation, conservation of​ shorelands, as defined in sections 103F.201 to 103F.221, access to direct sunlight for solar energy systems​ as defined in section 216C.06, flood control or other purposes, and may establish standards and procedures​ regulating such uses. To accomplish these purposes, official controls may include provision for purchase of​ development rights by the governing body in the form of conservation easements under chapter 84C in areas​ where the governing body considers preservation desirable and the transfer of development rights from those​ areas to areas the governing body considers more appropriate for development. No regulation may prohibit​ earth sheltered construction as defined in section 216C.06, subdivision 14, relocated residential buildings,​ or manufactured homes built in conformance with sections 327.31 to 327.35 that comply with all other​ zoning ordinances promulgated pursuant to this section. The regulations may divide the surface, above​ surface, and subsurface areas of the municipality into districts or zones of suitable numbers, shape, and area.​ The regulations shall be uniform for each class or kind of buildings, structures, or land and for each class​ or kind of use throughout such district, but the regulations in one district may differ from those in other​ districts. The ordinance embodying these regulations shall be known as the zoning ordinance and shall​ consist of text and maps. A city may by ordinance extend the application of its zoning regulations to​ unincorporated territory located within two miles of its limits in any direction, but not in a county or town​ which has adopted zoning regulations; provided that where two or more noncontiguous municipalities have​ boundaries less than four miles apart, each is authorized to control the zoning of land on its side of a line​ equidistant between the two noncontiguous municipalities unless a town or county in the affected area has​ adopted zoning regulations. Any city may thereafter enforce such regulations in the area to the same extent​ as if such property were situated within its corporate limits, until the county or town board adopts a​ comprehensive zoning regulation which includes the area.​ Subd. 1a.Certain zoning ordinances.A municipality must not enact, amend, or enforce a zoning​ ordinance that has the effect of altering the existing density, lot-size requirements, or manufactured home​ setback requirements in any manufactured home park constructed before January 1, 1995, if the manufactured​ home park, when constructed, complied with the then existing density, lot-size and setback requirements.​ Subd. 1b.Conditional uses.A manufactured home park, as defined in section 327.14, subdivision 3,​ is a conditional use in a zoning district that allows the construction or placement of a building used or​ intended to be used by two or more families.​ Subd. 1c.Amortization prohibited.Except as otherwise provided in this subdivision, a municipality​ must not enact, amend, or enforce an ordinance providing for the elimination or termination of a use by​ amortization which use was lawful at the time of its inception. This subdivision does not apply to adults-only​ bookstores, adults-only theaters, or similar adults-only businesses, as defined by ordinance.​ Subd. 1d.Nuisance.Subdivision 1c does not prohibit a municipality from enforcing an ordinance​ providing for the prevention or abatement of nuisances, as defined in section 561.01, or eliminating a use​ determined to be a public nuisance, as defined in section 617.81, subdivision 2, paragraph (a), clauses (i) to​ (ix), without payment of compensation.​ Official Publication of the State of Minnesota​ Revisor of Statutes​ 462.357​MINNESOTA STATUTES 2020​1​ LA20-69 Exhibit H Subd. 1e.Nonconformities.(a) Except as otherwise provided by law, any nonconformity, including​ the lawful use or occupation of land or premises existing at the time of the adoption of an additional control​ under this chapter, may be continued, including through repair, replacement, restoration, maintenance, or​ improvement, but not including expansion, unless:​ (1) the nonconformity or occupancy is discontinued for a period of more than one year; or​ (2) any nonconforming use is destroyed by fire or other peril to the extent of greater than 50 percent of​ its estimated market value, as indicated in the records of the county assessor at the time of damage, and no​ building permit has been applied for within 180 days of when the property is damaged. In this case, a​ municipality may impose reasonable conditions upon a zoning or building permit in order to mitigate any​ newly created impact on adjacent property or water body. When a nonconforming structure in the shoreland​ district with less than 50 percent of the required setback from the water is destroyed by fire or other peril to​ greater than 50 percent of its estimated market value, as indicated in the records of the county assessor at​ the time of damage, the structure setback may be increased if practicable and reasonable conditions are​ placed upon a zoning or building permit to mitigate created impacts on the adjacent property or water body.​ (b) Any subsequent use or occupancy of the land or premises shall be a conforming use or occupancy.​ A municipality may, by ordinance, permit an expansion or impose upon nonconformities reasonable​ regulations to prevent and abate nuisances and to protect the public health, welfare, or safety. This subdivision​ does not prohibit a municipality from enforcing an ordinance that applies to adults-only bookstores, adults-only​ theaters, or similar adults-only businesses, as defined by ordinance.​ (c) Notwithstanding paragraph (a), a municipality shall regulate the repair, replacement, maintenance,​ improvement, or expansion of nonconforming uses and structures in floodplain areas to the extent necessary​ to maintain eligibility in the National Flood Insurance Program and not increase flood damage potential or​ increase the degree of obstruction to flood flows in the floodway.​ (d) Paragraphs (d) to (j) apply to shoreland lots of record in the office of the county recorder on the date​ of adoption of local shoreland controls that do not meet the requirements for lot size or lot width. A​ municipality shall regulate the use of nonconforming lots of record and the repair, replacement, maintenance,​ improvement, or expansion of nonconforming uses and structures in shoreland areas according to paragraphs​ (d) to (j).​ (e) A nonconforming single lot of record located within a shoreland area may be allowed as a building​ site without variances from lot size requirements, provided that:​ (1) all structure and septic system setback distance requirements can be met;​ (2) a Type 1 sewage treatment system consistent with Minnesota Rules, chapter 7080, can be installed​ or the lot is connected to a public sewer; and​ (3) the impervious surface coverage does not exceed 25 percent of the lot.​ (f) In a group of two or more contiguous lots of record under a common ownership, an individual lot​ must be considered as a separate parcel of land for the purpose of sale or development, if it meets the​ following requirements:​ (1) the lot must be at least 66 percent of the dimensional standard for lot width and lot size for the​ shoreland classification consistent with Minnesota Rules, chapter 6120;​ Official Publication of the State of Minnesota​ Revisor of Statutes​ 2​MINNESOTA STATUTES 2020​462.357​ (2) the lot must be connected to a public sewer, if available, or must be suitable for the installation of a​ Type 1 sewage treatment system consistent with Minnesota Rules, chapter 7080, and local government​ controls;​ (3) impervious surface coverage must not exceed 25 percent of each lot; and​ (4) development of the lot must be consistent with an adopted comprehensive plan.​ (g) A lot subject to paragraph (f) not meeting the requirements of paragraph (f) must be combined with​ the one or more contiguous lots so they equal one or more conforming lots as much as possible.​ (h) Notwithstanding paragraph (f), contiguous nonconforming lots of record in shoreland areas under a​ common ownership must be able to be sold or purchased individually if each lot contained a habitable​ residential dwelling at the time the lots came under common ownership and the lots are suitable for, or​ served by, a sewage treatment system consistent with the requirements of section 115.55 and Minnesota​ Rules, chapter 7080, or connected to a public sewer.​ (i) In evaluating all variances, zoning and building permit applications, or conditional use requests, the​ zoning authority shall require the property owner to address, when appropriate, storm water runoff​ management, reducing impervious surfaces, increasing setback, restoration of wetlands, vegetative buffers,​ sewage treatment and water supply capabilities, and other conservation-designed actions.​ (j) A portion of a conforming lot may be separated from an existing parcel as long as the remainder of​ the existing parcel meets the lot size and sewage treatment requirements of the zoning district for a new lot​ and the newly created parcel is combined with an adjacent parcel.​ Subd. 1f.Substandard structures.Notwithstanding subdivision 1e, Minnesota Rules, parts 6105.0351​ to 6105.0550, may allow for the continuation and improvement of substandard structures, as defined in​ Minnesota Rules, part 6105.0354, subpart 30, in the Lower Saint Croix National Scenic Riverway.​ Subd. 1g.Feedlot zoning controls.(a) A municipality proposing to adopt a new feedlot zoning control​ or to amend an existing feedlot zoning control must notify the Pollution Control Agency and commissioner​ of agriculture at the beginning of the process, no later than the date notice is given of the first hearing​ proposing to adopt or amend a zoning control purporting to address feedlots.​ (b) Prior to final approval of a feedlot zoning control, the governing body of a municipality may submit​ a copy of the proposed zoning control to the Pollution Control Agency and to the commissioner of agriculture​ and request review, comment, and recommendations on the environmental and agricultural effects from​ specific provisions in the ordinance.​ (c) The agencies' response to the municipality may include:​ (1) any recommendations for improvements in the ordinance; and​ (2) the legal, social, economic, or scientific justification for each recommendation under clause (1).​ (d) At the request of the municipality's governing body, the municipality must prepare a report on the​ economic effects from specific provisions in the ordinance. Economic analysis must state whether the​ ordinance will affect the local economy and describe the kinds of businesses affected and the projected​ impact the proposal will have on those businesses. To assist the municipality, the commissioner of agriculture,​ in cooperation with the Department of Employment and Economic Development, must develop a template​ for measuring local economic effects and make it available to the municipality. The report must be submitted​ Official Publication of the State of Minnesota​ Revisor of Statutes​ 462.357​MINNESOTA STATUTES 2020​3​ to the commissioners of employment and economic development and agriculture along with the proposed​ ordinance.​ (e) A local ordinance that contains a setback for new feedlots from existing residences must also provide​ for a new residence setback from existing feedlots located in areas zoned agricultural at the same distances​ and conditions specified in the setback for new feedlots, unless the new residence is built to replace an​ existing residence. A municipality may grant a variance from this requirement under section 462.358,​ subdivision 6.​ Subd. 1h.Comprehensive plans in greater Minnesota; open spaces.When adopting or updating a​ comprehensive plan in a municipality located within a county that is not a greater than 80 percent area, as​ defined in section 103G.005, subdivision 10b, and that is located outside the metropolitan area, as defined​ by section 473.121, subdivision 2, the municipality shall consider adopting goals and objectives for the​ preservation of agricultural, forest, wildlife, and open space land and the minimization of development in​ sensitive shoreland areas. Within three years of updating the comprehensive plan, the municipality shall​ consider adopting ordinances as part of the municipality's official controls that encourage the implementation​ of the goals and objectives.​ Subd. 1i.Airport safety zones on zoning maps.Airport safety zones must be included on maps that​ illustrate boundaries of zoning districts and that are adopted as official controls.​ Subd. 2.General requirements.(a) At any time after the adoption of a land use plan for the municipality,​ the planning agency, for the purpose of carrying out the policies and goals of the land use plan, may prepare​ a proposed zoning ordinance and submit it to the governing body with its recommendations for adoption.​ (b) Subject to the requirements of subdivisions 3, 4, and 5, the governing body may adopt and amend​ a zoning ordinance by a majority vote of all its members. The adoption or amendment of any portion of a​ zoning ordinance which changes all or part of the existing classification of a zoning district from residential​ to either commercial or industrial requires a two-thirds majority vote of all members of the governing body.​ (c) The land use plan must provide guidelines for the timing and sequence of the adoption of official​ controls to ensure planned, orderly, and staged development and redevelopment consistent with the land​ use plan.​ Subd. 3.Public hearings.No zoning ordinance or amendment thereto shall be adopted until a public​ hearing has been held thereon by the planning agency or by the governing body. A notice of the time, place​ and purpose of the hearing shall be published in the official newspaper of the municipality at least ten days​ prior to the day of the hearing. When an amendment involves changes in district boundaries affecting an​ area of five acres or less, a similar notice shall be mailed at least ten days before the day of the hearing to​ each owner of affected property and property situated wholly or partly within 350 feet of the property to​ which the amendment relates. For the purpose of giving mailed notice, the person responsible for mailing​ the notice may use any appropriate records to determine the names and addresses of owners. A copy of the​ notice and a list of the owners and addresses to which the notice was sent shall be attested to by the responsible​ person and shall be made a part of the records of the proceedings. The failure to give mailed notice to​ individual property owners, or defects in the notice shall not invalidate the proceedings, provided a bona​ fide attempt to comply with this subdivision has been made.​ Subd. 4.Amendments.An amendment to a zoning ordinance may be initiated by the governing body,​ the planning agency, or by petition of affected property owners as defined in the zoning ordinance. An​ amendment not initiated by the planning agency shall be referred to the planning agency, if there is one, for​ study and report and may not be acted upon by the governing body until it has received the recommendation​ Official Publication of the State of Minnesota​ Revisor of Statutes​ 4​MINNESOTA STATUTES 2020​462.357​ of the planning agency on the proposed amendment or until 60 days have elapsed from the date of reference​ of the amendment without a report by the planning agency.​ Subd. 5.Amendment; certain cities of the first class.The provisions of this subdivision apply to the​ adoption or amendment of any portion of a zoning ordinance which changes all or part of the existing​ classification of a zoning district from residential to either commercial or industrial of a property located in​ a city of the first class, except a city of the first class in which a different process is provided through the​ operation of the city's home rule charter. In a city to which this subdivision applies, amendments to a zoning​ ordinance shall be made in conformance with this section but only after there shall have been filed in the​ office of the city clerk a written consent of the owners of two-thirds of the several descriptions of real estate​ situate within 100 feet of the total contiguous descriptions of real estate held by the same owner or any party​ purchasing any such contiguous property within one year preceding the request, and after the affirmative​ vote in favor thereof by a majority of the members of the governing body of any such city. The governing​ body of such city may, by a two-thirds vote of its members, after hearing, adopt a new zoning ordinance​ without such written consent whenever the planning commission or planning board of such city shall have​ made a survey of the whole area of the city or of an area of not less than 40 acres, within which the new​ ordinance or the amendments or alterations of the existing ordinance would take effect when adopted, and​ shall have considered whether the number of descriptions of real estate affected by such changes and​ alterations renders the obtaining of such written consent impractical, and such planning commission or​ planning board shall report in writing as to whether in its opinion the proposals of the governing body in​ any case are reasonably related to the overall needs of the community, to existing land use, or to a plan for​ future land use, and shall have conducted a public hearing on such proposed ordinance, changes or alterations,​ of which hearing published notice shall have been given in a daily newspaper of general circulation at least​ once each week for three successive weeks prior to such hearing, which notice shall state the time, place​ and purpose of such hearing, and shall have reported to the governing body of the city its findings and​ recommendations in writing.​ Subd. 6.Appeals and adjustments.Appeals to the board of appeals and adjustments may be taken by​ any affected person upon compliance with any reasonable conditions imposed by the zoning ordinance. The​ board of appeals and adjustments has the following powers with respect to the zoning ordinance:​ (1) To hear and decide appeals where it is alleged that there is an error in any order, requirement, decision,​ or determination made by an administrative officer in the enforcement of the zoning ordinance.​ (2) To hear requests for variances from the requirements of the zoning ordinance including restrictions​ placed on nonconformities. Variances shall only be permitted when they are in harmony with the general​ purposes and intent of the ordinance and when the variances are consistent with the comprehensive plan.​ Variances may be granted when the applicant for the variance establishes that there are practical difficulties​ in complying with the zoning ordinance. "Practical difficulties," as used in connection with the granting of​ a variance, means that the property owner proposes to use the property in a reasonable manner not permitted​ by the zoning ordinance; the plight of the landowner is due to circumstances unique to the property not​ created by the landowner; and the variance, if granted, will not alter the essential character of the locality.​ Economic considerations alone do not constitute practical difficulties. Practical difficulties include, but are​ not limited to, inadequate access to direct sunlight for solar energy systems. Variances shall be granted for​ earth sheltered construction as defined in section 216C.06, subdivision 14, when in harmony with the​ ordinance. The board of appeals and adjustments or the governing body as the case may be, may not permit​ as a variance any use that is not allowed under the zoning ordinance for property in the zone where the​ affected person's land is located. The board or governing body as the case may be, may permit as a variance​ the temporary use of a one family dwelling as a two family dwelling. The board or governing body as the​ Official Publication of the State of Minnesota​ Revisor of Statutes​ 462.357​MINNESOTA STATUTES 2020​5​ case may be may impose conditions in the granting of variances. A condition must be directly related to and​ must bear a rough proportionality to the impact created by the variance.​ Subd. 6a.Normal residential surroundings for persons with disabilities.It is the policy of this state​ that persons with disabilities should not be excluded by municipal zoning ordinances or other land use​ regulations from the benefits of normal residential surroundings. For purposes of subdivisions 6a through​ 9, "person" has the meaning given in section 245A.02, subdivision 11.​ Subd. 7.Permitted single family use.A state licensed residential facility or a housing with services​ establishment registered under chapter 144D serving six or fewer persons, a licensed day care facility serving​ 12 or fewer persons, and a group family day care facility licensed under Minnesota Rules, parts 9502.0315​ to 9502.0445 to serve 14 or fewer children shall be considered a permitted single family residential use of​ property for the purposes of zoning, except that a residential facility whose primary purpose is to treat​ juveniles who have violated criminal statutes relating to sex offenses or have been adjudicated delinquent​ on the basis of conduct in violation of criminal statutes relating to sex offenses shall not be considered a​ permitted use.​ Subd. 8.Permitted multifamily use.Except as otherwise provided in subdivision 7 or in any town,​ municipal or county zoning regulation as authorized by this subdivision, a state licensed residential facility​ serving from 7 through 16 persons or a licensed day care facility serving from 13 through 16 persons shall​ be considered a permitted multifamily residential use of property for purposes of zoning. A township,​ municipal or county zoning authority may require a conditional use or special use permit in order to assure​ proper maintenance and operation of a facility, provided that no conditions shall be imposed on the facility​ which are more restrictive than those imposed on other conditional uses or special uses of residential property​ in the same zones, unless the additional conditions are necessary to protect the health and safety of the​ residents of the residential facility. Nothing herein shall be construed to exclude or prohibit residential or​ day care facilities from single family zones if otherwise permitted by a local zoning regulation.​ Subd. 9.Development goals and objectives.In adopting official controls after July 1, 2008, in a​ municipality outside the metropolitan area, as defined by section 473.121, subdivision 2, the municipality​ shall consider restricting new residential, commercial, and industrial development so that the new development​ takes place in areas subject to the following goals and objectives:​ (1) minimizing the fragmentation and development of agricultural, forest, wildlife, and open space lands,​ including consideration of appropriate minimum lot sizes;​ (2) minimizing further development in sensitive shoreland areas;​ (3) minimizing development near wildlife management areas, scientific and natural areas, and nature​ centers;​ (4) encouraging land uses in airport safety zones that are compatible with the safe operation of the airport​ and the safety of people in the vicinity of the airport;​ (5) identification of areas of preference for higher density, including consideration of existing and​ necessary water and wastewater services, infrastructure, other services, and to the extent feasible, encouraging​ full development of areas previously zoned for nonagricultural uses;​ (6) encouraging development close to places of employment, shopping centers, schools, mass transit,​ and other public and private service centers;​ (7) identification of areas where other developments are appropriate; and​ Official Publication of the State of Minnesota​ Revisor of Statutes​ 6​MINNESOTA STATUTES 2020​462.357​ (8) other goals and objectives a municipality may identify.​ History: 1965 c 670 s 7; 1969 c 259 s 1; 1973 c 123 art 5 s 7; 1973 c 379 s 4; 1973 c 539 s 1; 1973 c​ 559 s 1,2; 1975 c 60 s 2; 1978 c 786 s 14,15; Ex1979 c 2 s 42,43; 1981 c 356 s 248; 1982 c 490 s 2; 1982​ c 507 s 22; 1984 c 617 s 6-8; 1985 c 62 s 3; 1985 c 194 s 23; 1986 c 444; 1987 c 333 s 22; 1989 c 82 s 2;​ 1990 c 391 art 8 s 47; 1990 c 568 art 2 s 66,67; 1994 c 473 s 3; 1995 c 224 s 95; 1997 c 113 s 20; 1997 c​ 200 art 4 s 5; 1997 c 202 art 4 s 11; 1997 c 216 s 138; 1999 c 96 s 3,4; 1999 c 211 s 1; 2001 c 174 s 1;​ 2001 c 207 s 13,14; 2002 c 366 s 6; 2004 c 258 s 2; 2005 c 56 s 1; 1Sp2005 c 1 art 1 s 92; art 2 s 146; 2007​ c 140 art 12 s 14; 2008 c 297 art 1 s 60,61; 2009 c 149 s 3; 2011 c 19 s 2; 1Sp2019 c 3 art 3 s 110,111​ Official Publication of the State of Minnesota​ Revisor of Statutes​ 462.357​MINNESOTA STATUTES 2020​7​ From: Mick Sletten <mick@futurefundsatm.com> Date: November 11, 2020 at 4:42:36 PM CST To: Jeremy Barnhart <jbarnhart@ci.orono.mn.us> Subject: Solar Jeremy We live at 4680 Bayside Rd. Our Neighbors Aron and Kali Anderson want to install a solar system on their barn. We think it's a great idea! Please let me know if you have any questions? Thank you! Mick Sletten National Sales Director Future Funds ATM Credit Card processing Digital High Tops High Speed cell boxes for ATM's mick@futurefundsatm.com 612.802.8705 Virus-free. www.avast.com LA20-69 Exhibit I L A 2 0 - 6 9 E x h i b i t J AGENDA ITEM Prepared By: LLO Reviewed By:J.Barnhart Approved By DJR 1.Purpose. The applicant is requesting lot area, lot width, and side yard setbacks. 2.Background. The applicant is planning to construct a new home on the property. Currently, the property is vacant. The proposed home has a similar front setback as neighboring properties. The applicant is proposing a rambler style home with a walk out basement. The property is nonconforming with respect to area with 1.22 acres and in width at 123.77’, where the RR-1A district requires 5 acres in area and 300’ in width. The application proposed a 15.5’ north side yard setback and an 18.2’ south side yard setback. The applicant has submitted an amended plan, image below, (Exhibit A) to accommodate the abutting northern neighbor’s comments provided at Planning Commission. The amended plans reflect an 18.2’ northern side yard setback and a southern 15.5’ side yard setback. 3.15.99 Deadline. The applicant made a complete application on November 12, 2020. Following the 60-day deadline the application would expire on January 11, 2020. 4.Planning Commission Vote and Comment. The Planning Commission reviewed the presented item, held the public hearing on November 16, 2020, and discussed the 3 proposed variances. Commissioners were overall in support allowing a home to be built in the substandard lot. Commissioners McCutcheon, Item No.: 24 Date: December 7, 2020 Item Description: LA20-000071 – Jacob Stickney, 15 Stubbs Bay Road/PID 3211823340006, Variances- Resolution Presenter: Laura Oakden Planner Agenda Section: Planning Department Report Kirchner and Gettman, had concerns with the proposed side yard setbacks. The commissioners voted 4-3 to approve the proposed application as presented, with McCutcheon, Kirchner and Gettman opposed. 5. Public Comment. The neighbors to the north Mr. and Mrs. Krump (25 Stubbs Bay Road) commented at the public hearing with concerns regarding the proposed 15.5 foot side yard setback. They requested the house be shifted a few feet to the south to allow a slightly larger side yard setback abutting their property (to the north) and a smaller side yard setback on the south property line. The applicant has amended the proposed plans to match the neighbors request for a 18.2’ north side yard setback and a 15.5’ side yard setback. The applicant submitted an email from the neighbor at 25 Stubbs Bay Road in support of the amended plans (Exhibit C). 6. Staff Recommendation. Planning Department Staff recommends approval. COUNCIL ACTION REQUESTED The Council should review the amended plans and make a motion to approve or amend the included resolution. Exhibits A. Amended Plans B. Draft Resolution C. Neighbor’s Email Comments Proposed Plans and Elevations D. PC Minutes E. PC Staff Report References PC Exhibits A. Application/ Narrative B. Practical Difficulties Documentation Form C. Existing & Proposed Survey/Site Plan D. Proposed Plans and Elevations E. Submitted Structural Calculations /Septic Report F. Neighbor Acknowledgement G. Property Owners List and Map CITY OF ORONO RESOLUTION OF THE CITY COUNCIL NO. ________________________ 1 A RESOLUTION APPROVING A VARIANCE FROM MUNICIPAL ZONING CODE SECTION 78-395 and 78-72 FILE NO. LA20-000071 WHEREAS, on November 12, 2020, _Jacob Stickney (“Applicant”), applied for a variance from the City Code for the property addressed 15 Stubbs Bay Road (PID 3211823340006) and legally described as: That part of the SE ¼ of the SW ¼ of Section 32, Township 118 North, Range 23 West of the 5th Principal Meridian described as follows: The South 264 feet of the East 462.89 feet of said SE ¼ of SW ¼, EXCEPT the North 123.75 feet thereof; and EXCEPT that portion thereof lying South of the following described line: commencing at a point one rod North of the Southeast corner of said SE ¼ of SW 1/4, thence West 462.78 feet; and EXCEPT road. (hereinafter the “Property”); WHEREAS, the Applicants have made application to the City of Orono for a variance to Orono Municipal Zoning Code Section 78-395 to allow for side yard setbacks; and WHEREAS, the Applicants have made application to the City of Orono for a variance to Orono Municipal Zoning Code Section 78-72 to allow for lot area and lot width; and WHEREAS, on November 16, 2020, after published and mailed notice in accordance with Minnesota Statutes and the City Code, the Planning Commission held a public hearing, at which time all persons desiring to be heard concerning this application were given the opportunity to speak thereon; and WHEREAS, on November 16, 2020, the Planning Commission recommended approval of the variance; and WHEREAS, on December 7, 2020 the City Council reviewed the application and the recommendations of the Planning Commission and City staff; and NOW, THEREFORE, BE IT RESOLVED that the City Council of Orono, Minnesota hereby approves the requested variance as described above based on one or more of the following findings of fact concerning the Property: FINDINGS OF FACT: CITY OF ORONO RESOLUTION OF THE CITY COUNCIL NO. ________________________ 2 1. This application was reviewed as Zoning File #LA20-000071. The analysis contained within staff memos and the exhibits attached to the aforesaid memos, all minutes from the above mentioned meetings, and any and all other materials distributed at these meetings are hereby incorporated by reference. 2. The Property is located in the RR-1A Zoning District. 3. The Property contains 1.2 acres in area and has a defined lot width of 123.77 feet. 4. The Property is exempt from hardcover restrictions according to the Stormwater Quality Overlay District. 5. Applicant has applied for the following variances: a. Side yard setback b. Lot area c. Lot width 6. In considering this application for variance, the Council has considered the advice and recommendation of the Planning Commission and the effect of the proposed variance upon the health, safety and welfare of the community, existing and anticipated traffic conditions, light and air, danger of fire, risk to the public safety, and the effect on values of property in the surrounding area. ANALYSIS: 1. “Variances shall only be permitted when they are in harmony with the general purposes and intent of the ordinance . . . .” The applicant is proposing to construct a new single family home on a residential lot which is consistent with the intent of the ordinance. The lot width and lot area variances are consistent with the general intent of the Ordinance. The side yard setback variance request is reasonable considering buildable area of the property. 2. “Variances shall only be permitted . . . when the variances are consistent with the comprehensive plan.” The variances resulting in a permit for a new single family residence in a residential zone are consistent with the Comprehensive Plan. 3. “Variances may be granted when the applicant for the variance establishes that there are practical difficulties in complying with the zoning ordinance. ‘Practical difficulties,’ as used in connection with the granting of a variance, means that: a. The property owner in question proposes to use the property in a reasonable manner, however, the proposed use is not permitted by the official controls. CITY OF ORONO RESOLUTION OF THE CITY COUNCIL NO. ________________________ 3 The applicant is proposing to use the property in a reasonable manner with the construction of a single family home. There is limited space to construct a conforming building on the site. b. The plight of the landowner is due to circumstances unique to his property not created by the landowner. The plight of the property owner is due to the existing substandard lot area and width, and c. The variance, if granted, will not alter the essential character of the locality.” The character of the neighborhood is not likely to be significantly altered by construction of the residence. 4. “Economic considerations alone do not constitute practical difficulties.” Economic considerations have not been a factor in the variance approval determination. 5. “Practical difficulties also include but are not limited to inadequate access to direct sunlight for solar energy systems. Variances shall be granted for earth-sheltered construction as defined in Minn. Stat. § 216C.06, subd. 2, when in harmony with Orono City Code Chapter 78.” This condition is not applicable. 6. “The board or the council may not permit as a variance any use that is not permitted under Orono City Code Chapter 78 for property in the zone where the affected person's land is located.” This condition is not applicable, as a single family home is an allowed use in the RR-1A District. 7. “The board or council may permit as a variance the temporary use of a one-family dwelling as a two-family dwelling.” This condition is not applicable. 8. “The special conditions applying to the structure or land in question are peculiar to such property or immediately adjoining property.” The size and width of the lot within the RR- 1A zoning district is unique, and supports approval of the requested lot width, lot area and setback variances. 9. “The conditions do not apply generally to other land or structures in the district in which the land is located.” The size of the lot is unique within the existing 5-acre zoning district. 10. “The granting of the application is necessary for the preservation and enjoyment of a substantial property right of the applicant.” The applicant stated this is true. 11. “The granting of the proposed variance will not in any way impair health, safety, comfort or morals, or in any other respect be contrary to the intent of this chapter.” Granting of the requested variances would not impair health, safety, comfort or morals and would be in keeping with the intent of the zoning code. CITY OF ORONO RESOLUTION OF THE CITY COUNCIL NO. ________________________ 4 12. “The granting of such variance will not merely serve as a convenience to the applicant, but is necessary to alleviate demonstrable difficulty.” The applicant has stated the narrow lot results in setback challenges for construction of a single family home. The property is unique in size for this zoning district. CONCLUSIONS, ORDER AND CONDITIONS: Based upon one or more of the above findings, the Orono City Council hereby grants a variance to Orono Municipal Zoning Code Section 78-395 and 78-72 to allow side yard setback, lot area and lot width, subject to the following conditions: 1. Council approval is based on the entire record, above Findings. 2. The approved project shall conform to the survey dated 11/18/2020 and building plans submitted by the Applicants and annotated by City staff, attached to this Resolution as Exhibits A. 3. Any amendments to the plans which are not in conformity with City codes may require further Planning Commission and City Council review. 4. Authorities granted by this resolution run with the Property not with the Applicants, but are permissive only and must be exercised by obtaining a building permit for the new construction and commencing construction of said project. A framing inspection must be completed within one year of the date of Council approval, or the variance will expire on that date (December 7, 2021). 5. Violation of or non-compliance with any of the terms and conditions of this resolution may result in the termination of any authority granted herein. ADOPTED by the Orono City Council on this ______ day of ________________, 20__. ATTEST: CITY OF ORONO: _______________________________ ________________________________ Anna Carlson, City Clerk Dennis Walsh, Mayo ScaleProject number Date Drawn byAVASTUDIO.HOUZZ.COMAVA STUDIO 12733 WOODCOURT LANE, MINNETONKA MN 55343 PHONE 612 532 8159 EMAIL AVASTUDIO.AB1@GMAIL.COM 12" = 1'-0"10/14/2020 7:55:50 PM A101Cover Page 72Orono72-2 Stubbs Bay Rd S 10/14/2020 Alexander BocharnikovALL PLANS ARE TO BE REVIEWED BY THE GENERAL CONTRACTOR AND THE MUNICIPAL BUILDING OFFICIAL PRIOR TO CONSTRUCTION.AVA STUDIO LLC. IS NOT RESPONSIBLE FOR ANY PROBLEM AS A RESULT OF AN ERROR OMISSION ON THESE PLANS. 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IS NOT RESPONSIBLE FOR ANY PROBLEM AS A RESULT OF AN ERROR OMISSION ON THESE PLANS. 1/ 8 " = 1 ' - 0 " 2 Re a r 1/ 8 " = 1 ' - 0 " 3 Le f t 1/ 8 " = 1 ' - 0 " 4 Ri g h t 90 ' - 0 " 5' - 6 " 22 ' - 4 " 9' - 4 " 12 ' - 1 0 " 6' - 6 " 14 ' - 0 " 19' - 6" 14 ' - 0 " 5 ' - 0 " 9 ' - 0 " 2 0 ' - 0 " 1 4 ' - 0 " 4 3 ' - 0 " 52 ' - 0 " 20 ' - 0 " 18' - 0" 90 ' - 0 " 1 4 ' - 0 " 1 0 ' - 0 " 29 ' - 0 " 3' - 0"25' - 0"27' - 0"55' - 0"ScaleProject number Date Drawn byAVASTUDIO.HOUZZ.COMAVA STUDIO 12733 WOODCOURT LANE, MINNETONKA MN 55343 PHONE 612 532 8159 EMAIL AVASTUDIO.AB1@GMAIL.COM 1/4" = 1'-0"10/14/2020 7:55:53 PM A103Foundation /Basement 72Orono72-2 Stubbs Bay Rd S 10/14/2020 Alexander Bocharnikov 1/ 4 " = 1 ' - 0 " 1 Fo u n d a t i o n / B a s e m e n t L e v e l ALL PLANS ARE TO BE REVIEWED BY THE GENERAL CONTRACTOR AND THE MUNICIPAL BUILDING OFFICIAL PRIOR TO CONSTRUCTION.AVA STUDIO LLC. IS NOT RESPONSIBLE FOR ANY PROBLEM AS A RESULT OF AN ERROR OMISSION ON THESE PLANS. R E F . UP O V E N 5' - 6 " 22 ' - 0 " 10 ' - 0 " 19 ' - 0 " 14 ' - 0 " 19' - 6" 2 0 ' - 0 " 1 4 ' - 0 " 90 ' - 0 " 12 ' - 0 " 13 ' - 0 " 16 ' - 0 " 11 ' - 0 " 3 ' - 0 " 12 ' - 6 " 6' - 6 " 2 8 ' - 0 " 7 ' - 0 " 1 6 ' - 0 " 4 ' - 0 " 6 ' - 0 " 6 ' - 0 " 4 ' - 0 " 4 ' - 2 1 / 4 " 1 2 ' - 0 " 4' - 6 " 2 ' - 0 " 2 3 ' - 0 " 2' - 6 " 9' - 0 " 2' - 6 " 4' - 0"23' - 0"25' - 0"3' - 0" 1 1 ' - 6 " 8 ' - 6 " 9 ' - 0 " 6' - 2 " 5' - 1 0 " 6' - 6 " 6' - 6 " 7' - 8 " 8' - 4 " 7' - 5 " 3' - 7 " 2 ' - 0 " 3' - 0 " 7 ' - 0 " 7 ' - 0 " 55' - 0" 52 ' - 0 " 20 ' - 0 " 18' - 0" 90 ' - 0 " 10 ' - 0 " 10 ' - 0 " 4' - 0 " 12 ' - 0 " 4' - 0 " 3 4 ' - 0 " 1' - 6 " 16' - 0"2' - 0" 6' - 3 " 6' - 3 " 3' - 3 " 3' - 3 " 14 ' - 0 " 5 ' - 0 " 5' - 0 " 5' - 0 " 7' - 0 " 8' - 0 " 7' - 0 " 4 ' - 2 " 6' - 6 1 / 2 " ScaleProject number Date Drawn byAVASTUDIO.HOUZZ.COMAVA STUDIO 12733 WOODCOURT LANE, MINNETONKA MN 55343 PHONE 612 532 8159 EMAIL AVASTUDIO.AB1@GMAIL.COM 1/4" = 1'-0"10/14/2020 7:55:54 PM A104Main Level 72Orono72-2 Stubbs Bay Rd S 10/14/2020 Alexander Bocharnikov 1/ 4 " = 1 ' - 0 " 1 Ma i n L e v e l ALL PLANS ARE TO BE REVIEWED BY THE GENERAL CONTRACTOR AND THE MUNICIPAL BUILDING OFFICIAL PRIOR TO CONSTRUCTION.AVA STUDIO LLC. IS NOT RESPONSIBLE FOR ANY PROBLEM AS A RESULT OF AN ERROR OMISSION ON THESE PLANS. 6' - 0"13' - 0"6' - 0"25' - 0" 5' - 6 " 4' - 6 " 15' - 0" 2 ' - 6 " 8' - 6 " 5 ' - 0 " 2 ' - 6 " 1 2 ' - 6 " 7' - 0 " 7' - 0 " 14 ' - 0 " 19' - 6"33' - 6" 9 ' - 1 3 / 4 " 3 ' - 8 1 / 2 " 1 5 ' - 1 3 / 4 " 18' - 0" 15 ' - 6 " 33' - 6"6' - 6"6' - 6"ScaleProject number Date Drawn byAVASTUDIO.HOUZZ.COMAVA STUDIO 12733 WOODCOURT LANE, MINNETONKA MN 55343 PHONE 612 532 8159 EMAIL AVASTUDIO.AB1@GMAIL.COM As indicated 10/14/2020 7:55:54 PM A105Upper Level 72Orono72-2 Stubbs Bay Rd S 10/14/2020 Alexander BocharnikovALL PLANS ARE TO BE REVIEWED BY THE GENERAL CONTRACTOR AND THE MUNICIPAL BUILDING OFFICIAL PRIOR TO CONSTRUCTION.AVA STUDIO LLC. IS NOT RESPONSIBLE FOR ANY PROBLEM AS A RESULT OF AN ERROR OMISSION ON THESE PLANS. 1/ 4 " = 1 ' - 0 " 1 Up p e r L e v e l 12 " = 1 ' - 0 " 2 Re a r E l e v a t i o n 3 D R E F . O V E N 2 LAYERS OF ICE & WATER @ ROOF SADDLE RI D G E V E N T 9 " / 1 ' - 0 " 6 " / 1 ' - 0 " 9 " / 1 ' - 0 " 9" / 1 ' - 0 " 9" / 1 ' - 0 " 9 " / 1 ' - 0 " 9 " / 1 ' - 0 " 9" / 1 ' - 0 " 9" / 1 ' - 0 " 9 " / 1 ' - 0 " 1' - 0 " / 1 ' - 0 " 1' - 0 " / 1 ' - 0 " 1' - 0 " / 1 ' - 0 " 9" / 1'-0"9" / 1'-0"ScaleProject number Date Drawn byAVASTUDIO.HOUZZ.COMAVA STUDIO 12733 WOODCOURT LANE, MINNETONKA MN 55343 PHONE 612 532 8159 EMAIL AVASTUDIO.AB1@GMAIL.COM 1/4" = 1'-0"10/14/2020 7:55:54 PM A106Roof Plan 72Orono72-2 Stubbs Bay Rd S 10/14/2020 Alexander Bocharnikov 1/ 4 " = 1 ' - 0 " 1 Ro o f P l a n ALL PLANS ARE TO BE REVIEWED BY THE GENERAL CONTRACTOR AND THE MUNICIPAL BUILDING OFFICIAL PRIOR TO CONSTRUCTION.AVA STUDIO LLC. IS NOT RESPONSIBLE FOR ANY PROBLEM AS A RESULT OF AN ERROR OMISSION ON THESE PLANS. From:Stickney, Jacob M To:Laura Oakden Subject:Fwd: Updated Survey Date:Saturday, November 21, 2020 5:32:29 PM Hi Laura, Here is an email below from Denny Krump with his approval! Thanks Sent from my iPhone Begin forwarded message: From: Dennis Krump <ohletitsnow@gmail.com> Date: November 21, 2020 at 5:26:57 PM CST To: "Stickney, Jacob M" <JMStickney@cbburnet.com> Subject: Re: Updated Survey  Looks great thank you very much. Sent from my iPhone On Nov 21, 2020, at 2:29 PM, Stickney, Jacob M <JMStickney@cbburnet.com> wrote:  Denny, As you will see, the setbacks have been flipped as you proposed. Instead of having 15.5 feet on the right side it’s now 18.2 feet like you wanted! Sent from my iPhone On Nov 21, 2020, at 11:30 AM, Dennis Krump <ohletitsnow@gmail.com> wrote:  The 18.2 should be on the north side and 15 on south side Sent from my iPhone On Nov 20, 2020, at 8:25 AM, Stickney, Jacob M <JMStickney@cbburnet.com> wrote: Hi Denny, Here is the updated survey that we've submitted to the City of Orono. The buyer is totally fine with flipping the setbacks so you'll see 18.2 feet south and 15.5 north! Our city planner Laura Oakden wanted to see if you could email me back with your approval on this update. I think this change will benefit both you and the new owner! Thanks Jacob StickneyStickney Real Estate | GWStickney.comColdwell Banker Burnet | 952.250.1267201 E. Lake Street | Wayzata, MN 55391 *Wire Fraud is Real*. Before wiring any money, call the intended recipient at a number you know is valid to confirm the instructions. Additionally, please note that the sender does not have authority to bind a party to a real estate contract via written or verbal communication. <15 Stubbs Bay New Survey.pdf> MINUTES OF THE ORONO PLANNING COMMISSION Monday, November 16, 2020 6:00 o’clock p.m. _____________________________________________________________________________________ 3. LA20-000071 JACOB STICKNEY, 15 STUBBS BAY ROAD NORTH, VARIANCES. STAFF: LAURA OAKDEN Staff presented a summary of packet information. Planning Staff recommends approval of this Application and finds the existing lot area and width as practical difficulties to support the variance. Staff finds there are inherent practical difficulties with that substandard lot for the new home. The Applicant submitted an acknowledgement signature from the neighbor as Exhibit F. Staff recommends approval of the lot area, lot width, and side-yard setback variances. Gettman asked when this was actually subdivided, and whether this is the same owner that was part of the subdivision that created this situation where they cannot build on it and therefore have a variance. Ms. Oakden replied no, she believes there is a new owner to the property and this lot has been in existence for quite a while as a vacant lot. She does not have the date of when the lot was created. George Stickney, 340 Peavey Road, said to back up a bit, he and his son Jacob are representing the Dunn family. This property has been in the family for 50-60 years or so. Chair Ressler told Mr. Stickney they would close up a few questions with Staff and then they could hear from him. Ms. Oakden noted it sounds like she was speaking inaccurately that the Dunn family is current owner and she will let Mr. Stickney finish speaking to that. Libby asked if this is outside the MUSA and does not have City sewer available to it. Ms. Oakden said that is correct. Kirchner noted in the presentation, Ms. Oakden had mentioned that the setbacks proposed here are similar to neighboring properties. He asked roughly how far off the lot line those are. Ms. Oakden said the neighbor to the north has about a 16 foot side-yard setback and about a 45 foot front yard setback. This Applicant is proposing a 50 foot front yard setback so they meet that exception, and are proposing a 15.5 foot setback to the north, and an 18 foot setback to the south. Kirchner asked if there are any homes to the south of this one. Ms. Oakden replied they do abut a property and showed a map onscreen. She noted there is one home to the north but no other homes in the area. This property has a flag that abuts the vacant lot they are talking about and then pointed out Bederwood Park. McCutcheon noted this is not unusual; there are many lots on this road that are skinny like this. Ms. Oakden replied lots that are very narrow, that is correct. McCutcheon said they subdivided them wrong a long time ago. Mr. George Stickney, 340 Peavey Road, Wayzata, is representing the Dunn family trust. When the family first met with Mr. Stickney and his son and said they really want to sell this lot, their mother has owned it forever and they have never built on it. The family has grown up in Orono, at least 60 years it has been like this, a nice lot, and a vacant lot. To sell the lot, he told the family he is really not going to sell the lot until he gets this settled at the City level, as he needs approved variances. It is a 1.22 acre lot that is in a 5 acre zoning district, as Staff reported; normally with 300 feet of width, a 50 foot setback is acceptable. He said if he was to follow the strict guidelines of the ordinances, he noted onscreen the 100 foot line is right about there [noted onscreen], and said there is about 50 feet by 23.77 feet between the septic to build a house. He stated that will not sell to anybody they know, so they met as a family for the trust with Ms. Curtis and Mr. Barnhart and said they wanted to propose something that is fair. He noted all 4 of the lots on Stubbs Bay Road have a little difficulty being able to be guided with 100 foot front setbacks, they all fail that, and setbacks that are 50 feet on the sides…he stated every one would not be acceptable in today’s standards. He asked what would be reasonable and suggested 50x15 and Staff supported that. Mr. Stickney noted they have a valid purchase agreement with a client that has brought a nice house plan together, and the property has an acceptable septic system, and a survey, and it is a great lot. It will be a nice improvement for the area, but they are not asking for anything more than what is acceptable to the neighbors to the north, and what is needed for this property. He said he can also talk about the flag lot on the south, he knows those people, too, and they will probably never use a driveway, it is a non-issue as it would be about a $200,000 driveway and tree removal…he said they enter the property on Watertown Road. Chair Ressler opened the public hearing at 7:14 p.m. Chair Ressler closed the public hearing at 7:14 p.m. Chair Ressler noted it is in a 5 acre ordinance and it is a 1.2 acre actual lot, there are no problems with front and rear, and the sides both to the north and south are the issues. He said 50 feet is the ordinance, they are proposing 15.5 and 18.2. Deliberation is whether or not that is okay and if that is in the spirit of the neighborhood. Mr. Stickney clarified they are proposing 15 on both sides; the existing plan shows a house that is 18.2 and 15.5. They are proposing that this be guided as a vacant lot so someone could buy it and the buyer is proposing a house that fits like that. Ms. Oakden said the application as presented is this, and they can only act as the volume and the structure that is shown within those encroachments within the setbacks. They cannot set a new setback for this specific property. Mr. Stickney said the application was to create 15 foot side setbacks and that does not mean the new owner should have to create a house that hits both sides of the setback. The new owner wants the flexibility to put a house that fits in there. He said this makes the sale of the lot sellable. Chair Ressler said the proposed survey would have needed to have the proposed house within that 15 feet on both sides and it looks like the survey on record appears it is 18.2 on one side and 15.5 to the other. Mr. Stickney said yes, that is where it sits on the lot, but it sits within the new approved 15 foot side setbacks. He is just clarifying that. Barnhart said they are kind of in a dicey situation because Staff grants a variance based on a proposal and based on the practical difficulties that is proposed. They generally cannot apply practical difficulties on spec, so that is why they have to link it to a plan, which is the plan in front of them. In the future, assuming the Planning Commission approves this plan, this is the boundary and if there are some deviations from that, it may require a variance depending on where those deviations are. At least there is a starting point, but Staff can’t recommend approval of a variance on spec. Mr. Stickney noted the owner of this plan and the buyer of the lots…that is their plan, and they are okay with it where it sits. He said, let’s say they wanted to add a little deck or a stairway; 15 foot side setbacks would be appropriate for that whole side of the street because all of them are encroaching on the front setback and 2-3 of them are encroaching in some manner the 50 foot side setbacks. Chair Ressler said what they have to do is to approve or deny the application as it is submitted and the application that is submitted has a 15.5 foot to the north and 18.2 foot to the south. Any further encroaching upon would probably bring them right back to the drawing board. Mr. Stickney said he is fine with that, so is the new owner, and the family. Dennis Krump, 25 Stubbs Bay Road, is the neighbor to the north and said as far as that 18-foot setback, when he talked to the gentleman earlier with the 15- or 15.5-foot setback, he was assuming that would be on both sides, north and south. From his understanding, the owner had agreed to use the 15 or 15.5 foot and move the house to the south, so they would end up with 18 on the north and 15.5 on the south. That is what he would like; there is no reason to have the house closer than it has to be. He agrees they need at least a 15 foot setback, but he would much rather see the 15 on the south and the 18 on the north. Chair Ressler stated that is good feedback and of course, the Commission must decide on what is in front of them. Mr. Krump said if the owner agrees to do that, are they starting over from scratch again, or like the last person with the stairs and they could just remove one tread; can they do the same thing here. Chair Ressler said if this is approved, then they would be limited to what the specs are of the proposed survey. However, they could certainly flip it between now and Council with the same proposal and ask for that amended version if they wanted to. If it gets to Council and this plan is approved and they wanted to change the setbacks, it would be starting all over again with a new variance. Mr. Krump asked what about like they did with the steps. Chair Ressler replied they would deny it and said they have not gotten to that point, but if they approve or deny it, the Applicant could come with an amended version to the Council that way. Using the steps as an example, if the Commission approves the application as submitted and the application decided they would like to change it the other way around, they could do that. If the Commission denied it…it would be the same story. Kirchner asked to clarify that Mr. Krump is the neighbor to the north with approximately 16 feet. Mr. Krump answered in the affirmative. Kirchner said if he understands correctly, as proposed with that 15.5 feet towards his lot line, Mr. Krump is not really supportive of it, he would rather have the 18 feet on the north side. Kirchner asked if that is correct. Mr. Krump replied that is correct. Erickson pointed out it makes a lot of sense to flip it the way Mr. Krump is suggesting because on the south side is the public park with a big soccer field and no neighbors. Deborah Krump, 25 Stubbs Bay Road, brought up the other road that nobody is using and said why can’t they figure out from the people that own that property, if they can make that lot bigger and go more toward the park to give the Krumps some space because this is really close. She said Mr. Krump has maintained this property for 35 years for the Dunns and to turn around and have somebody sitting on their deck with them is kind of tough. She said if the Applicant wanted to look at something like that, it would be huge for the Krumps. She noted it is a crazy request, but she is going to request it. Chair Ressler appreciates her going on the record and of course the public hearing has been closed, but they can put that in to note because he thinks that is important to know. He said if Ms. Krump wanted to be more formal, she could write a letter of support or what would be agreeable to them to put in front of the Council when they entertain the application, as well. Chair Ressler asked Ms. Oakden if it is correct that as applied, they have 15.5 foot setback to the north, guided for 50 feet; 18.2 foot setback to the south, guided for 50 feet. Ms. Oakden replied that is correct. Chair Ressler noted that is as applied and is what the Commission needs to rule on today. Ms. Oakden replied yes, they must review as the application sits today in front of them. Libby said this could be one of their tougher ones in a while, but he welcomes a challenge. There aren’t really too many options, but the idea of the fact that there is a plan, an active transactional motivation – motivated buyer, motivated seller – a house plan that should be able to fit in to these setbacks…it prompts him to be in favor of this. If the plan does not vary, and he does not think Mr. Stickney plans on a bait and switch because he never has in the past. He would tend to be in favor of this and agree with the recommendations of Staff. Kirchner agrees, he was in support of it and believes it to be appropriate for the area, however, hearing the discussion from the neighbors to the north and that the neighbors to the south could never build on that portion of the flag lot, as they would be right back before the Commission for the same discussion. He does not think the house is overbearing or that it is an unreasonable request. However, knowing that the neighbors to the north are not supportive of it, he does not believe that he can approve it knowing that there are other options on the table. He noted he is not here to redesign the plan or survey so he will leave it at that. Bollis is in favor of it, he thinks it is substantially similar to the other lot to the north. He is not sure what else they could approve to be built on that lot. Obviously the proposed area, where it would fall under the setbacks, cannot be done, so he thinks it is very consistent with the neighborhood. He does not think the Commission can go above and beyond looking at other options as far as purchasing other peoples’ property to make it conforming; they just have to look at it how it is today. Erickson is in favor of it, too, and would be in favor of approving the variance and perhaps they might specify that one side yard could be not less than 15.5 feet and the other side yard could be not less than 18.2 feet. With the stipulation that the Commission will not specify which side yard is which and that can be determined at the City Council meeting. Gettman said they actually have to do that approval; it wouldn’t be that the Commission could give that variance like the one applicant was suggesting. He is also confused as to why they are back to readdressing the variance. He would suggest that they look at flipping the house 90 degrees; so the elevation obviously is the issue but either way they will have to drop off. If they set it closer to that 16.5 foot narrow driveway that cannot be used for a driveway that would obviously give more space for the other neighbors who are here testifying. As mentioned, they are not here to redesign anything but he would be totally against this as proposed. Libby knows the public hearing is closed but said as a point of information, he is curious about some of the remarks that were made by the neighbor because the people have lived there for decades and their information and experience of lifestyle living so close to the subject property. He would like to clarify what the additional road is or the other property that was noted also by Bollis, and there is an eyewitness neighbor that lives here and he can even see Mr. Stickney questioning the statement. Libby said he is not questioning the validity of the statement, but he is curious as a point of information, with Chair Ressler’s permission, to ask the neighbor if they could more clearly explain this unused road after decades of maintaining the property. How could that possibly be a problem solver for this situation. Chair Ressler asked to see an overhead to see if that gives some clarity. Ms. Oakden said she thinks what is being referenced is the roughly 16 feet right here [noted onscreen] and is connected to a parcel that is a flag-shaped lot. She is sure the intent was perhaps some sort of driveway; it has never been approved and is not a right-of-way or dedicated outlot by any means. It is private property. Chair Ressler said to clarify for Mr. Libby, he thinks what the neighbors are referring to is, if they are going to get tighter on one side than the other, why wouldn’t they go to the area that is not really being used. Kirchner noted that is his comment, he is not here to endorse trying to subdivide lots and things like that. It was merely, if they can push the 18 feet to the north to give where there is an existing home a little more space, and pinch a little bit on the south where there is arguably never anything going to be built on a 16 foot flag. He said that would be something he would be more supportive of than as proposed here. Libby said they really don’t know or understand what the ownership of this other portion is, if it is a City easement or if it is privately owned by an adjoining property. Gettman noted Staff has said it is privately owned. Ms. Oakden said it is part of that parcel. Libby said this again falls into that category that the Commission does not want to change the applications but he is just bringing it up as a point of information or clarification. Perhaps for the representative of the property owner, the developer, and the builder, acquisition and subdivision on something like this to solve this kind of problem is very, very common. He has done it himself. To Mr. Kirchner’s point, it is really just adjunct to his own, but it is simply a point of information, they cannot direct in one way or the other. He is glad they had the neighbor here that could speak to it, and Mr. Stickney here to hear it. Chair Ressler does not see any reason why they could center or at the very least have equal distances between the two lot lines, there is structure on one side and not on the other. He would love to see the property centered or even if it was proposed to be inverted. He does not necessarily know that he would be opposed to the application as proposed; he does not see any reason why, besides what has been mentioned as far as one setback from the other. He noted they have approved these projects before, and he generally follows Staff’s opinion on this one recommending approval, he definitely would recognize the suggestion of giving more space and taking up some of the space from the north to the south as constructive feedback that might be helpful for passing with the Council, if this were to pass. He is not opposed to the application as submitted. McCutcheon asked to confirm that deck to the north is 15 feet from the lot, as well. Ms. Oakden clarified the neighbor right here is roughly 16 feet. McCutcheon said to him, it is private property to the north and the south and you must be fair, so perhaps they pick a minimum, so 16 feet from where the neighbor to the north is and 16 feet as the minimum setback north and south. He knows they cannot redraw it, but what they’re really saying is the proposed house envelope instead of 16.5 is 16. He said it seems silly to say, but just to be fair, as the neighbor to the south has just as much right to say they wish it was 2-3 feet to the north. Chair Ressler said perhaps this is an opportunity for the Commission to have a workshop discussion as to how they should be handling these. Right now, he thinks the feedback from the City is that they want the Commission to rule on what they have and provide feedback so it can be taken for review to the Council and it does not get held up but they know exactly what they are ruling on. Based on that, Chair Ressler is hearing some Commissioners are opposed to the application as submitted and must be mindful of what is in front of them. There has been some good feedback regardless of the outcome as to what would be agreeable. McCutcheon said it would be good to have documented evidence of the neighbor to the south’s input on this. It is a unique situation where it is a skinny lot and there are not a lot of options for the future homeowner to have and the Commission is trying to avoid problems in the future. If they only have half the equation it is tough. He asked if Staff went to the neighbors asking for input. Ms. Oakden noted they mailed postings. Mr. Stickney added two impacts. First, regarding the neighbor to the south with the flag lot, he sold a relative of their property and the neighbor was thinking about selling. Mr. Stickney said what are they ever going to do with that flag, and the neighbor responded it has always been there, it is solid trees right to the soccer field. He told the neighbor they will never build a road on that, as it is a flag that is environmentally nuts…he told them it would be $200,000 to correct the soils, remove all the trees, and this plan right now fits on here really well. Moving it a foot and a half south, has an impact on trees. This should be an approvable plan in most every possibility and he can’t see any reason it would not be totally approvable. Given a variable, he likes some of the comments; let’s make it so they can come back to the Council if they want it to center in there. He does not think the sellers will care, but the buyer would probably be amenable to that and that would help everyone. Chair Ressler asked for a motion one way or the other based on what is applied. Libby moved, Erickson seconded, to approve LA20-000071, 15 Stubbs Bay Road North, Variance as recommended by Staff. Ayes 4 (Bollis, Erickson, Libby, Ressler). Nays, 3 (Gettman, Kirchner, McCutcheon). Date Application Received: 10/21/2020 Date Application Considered as Complete: 11/12/2020 60-Day Review Period Expires: 01/11/2021 To: Chair Ressler and Planning Commission Members Dustin Rief, City Administrator From: Laura Oakden Planner Date: November 16, 2020 Subject: LA20-000071, Jacob Stickney, 15 Stubbs Bay Road, PID 3211823340006, Variances, Public Hearing Background The applicant is planning to construct a new home on the property. Currently, the property is vacant. The applicant is proposing to place the new home at a similar front setback as neighboring properties. The applicant is proposing a rambler style home with a walk out basement. The property is nonconforming with respect to area with 1.22 acres and in width at 123.77’, where the RR-1A district requires 5 acres in area and 300’ in width. Practical Difficulties Analysis Applicant Submittal Information: The applicant has identified the existing lot area and width as practical difficulties supporting the requested variances. They have provided supporting documentation regarding Practical Difficulties attached as Exhibit B, and should be asked for additional testimony regarding the application. Planning Staff Practical Difficulty Analysis: Regarding practical difficulty, Staff finds there are inherent practical difficulties with the substandard lot size and width supporting variances for a new home. Application Summary: The applicant is requesting lot area, lot width, and side yard setbacks. Staff Recommendation: Planning Department Staff recommends approval. Red line indicated the required setbacks for the district. LA20-000071 November 16, 2020 Page 2 of 5 LOT ANALYSIS WORKSHEET Section 78-395 - Setbacks: DISTRICT RR-1A Required Proposed Met/ Not Met Front 100’/ **45’ per northern neighbor 50.3’ Met Rear 100’ Roughly 360’ Met Side (North) 50’ 15.5’ Not Met Side (South) 50’ 18.2’ Not Met **Front yard setback. For lots that are non-conforming with respect to area the minimum front yard setback for the principal building, and accessory buildings less than 1,000 square feet, shall be equal to the average depth of the existing front yards on the adjacent lots on each side of the non- conforming lot fronting on the same street. However, the depth of such front yard shall not be less than ten feet. Section 78- 78-395- Lot Area/Width: DISTRICT RR-1A Lot Area Lot Width Required 217,800 s.f. (5 acres) 300’ Actual 53,206 s.f. (1.2 acre) 123.77’ Section 78-1403- Structural Building Coverage: Total Lot Area Total Structural Coverage 53,206 s.f. (1.2 acre) Allowed: 10,628 s.f. (20%) Proposed: 3,627 s.f. (6.82%) Applicable Regulations: Side Yard Setback (78-395) The required side yard setback is 50’. The applicant is proposing a 15.5’ setback to the north and 18.2’ setback to the south. The lot is 123.77’ feet wide and applying the 50’ setbacks on either side would allow for a 23.77’ wide building envelope for a new home. The abutting neighbor with a similar lot size maintains approximately a 16’ side yard setback, similar to the applicant’s request. Lot Area and Width: Lots of Record outside the Shoreland Overlay District (78-72) B. (3) In R or RR districts not served by public sanitary sewer. A lot of record in any R or RR district in the city not served by public sanitary sewer must meet the area and width requirements of this chapter and shall not be utilized for single-family detached dwelling purposes without council approval. Administrative approval may be granted for a lot of record not meeting the lot area and width requirements if the planning director finds that the following conditions are met: a) The lot area and lot width each meet at least 50 percent of the district standard. Not Met b) Suitable primary and alternate septic sites are identified on the property and are protected from future development by execution of a covenant. Not Met c) All other zoning ordinance requirements must be met, including but not limited to the following: 1. Setbacks. Not Met 2. Hardcover. N/A 3. Lot coverage by structures. Met 4. Accessory structure requirements. N/A LA20-000071 November 16, 2020 Page 3 of 5 Governing Regulation: Variance (Section 78-123) In reviewing applications for variance, the Planning Commission shall consider the effect of the proposed variance upon the health, safety and welfare of the community, existing and anticipated traffic conditions, light and air, danger of fire, risk to the public safety, and the effect on values of property in the surrounding area. The Planning Commission shall consider recommending approval for variances from the literal provisions of the Zoning Code in instances where their strict enforcement would cause practical difficulties because of circumstances unique to the individual property under consideration, and shall recommend approval only when it is demonstrated that such actions will be in keeping with the spirit and intent of the Orono Zoning Code. Economic considerations alone do not constitute practical difficulties. Practical difficulties also include but are not limited to inadequate access to direct sunlight for solar energy systems. Variances shall be granted for earth-sheltered construction as defined in Minn. Stat. § 216C.06, subd. 2, when in harmony with this chapter. The board or the council may not permit as a variance any use that is not permitted under this chapter for property in the zone where the affected person's land is located. The board or council may permit as a variance the temporary use of a one-family dwelling as a two-family dwelling. According to MN §462.357 Subd. 6(2) variances shall only be permitted when: 1. The variance is in harmony with the general intent and purpose of the Ordinance. The applicant is proposing to construct a new single family home on a residential lot which is consistent with the intent of the ordinance. The lot width and lot area variances are consistent with the general intent of the Ordinance. The side yard setback variance request is reasonable considering buildable area of the property. 2. The variance is consistent with the comprehensive plan. The variances resulting in a permit for a new single family residence in a residential zone are consistent with the Comprehensive Plan. 3. The applicant establishes that there are practical difficulties. a. The property owner proposes to use the property in a reasonable manner not permitted by the official controls; The applicant is proposing to use the property in a reasonable manner with the construction of a single family home. There is limited space to construct a conforming building on the site. b. There are circumstances unique to the property not created by the landowner; The plight of the property owner is due to the existing substandard lot area and width, and c. The variance will not alter the essential character of the locality. The character of the neighborhood is not likely to be significantly altered by construction of the residence. Additionally City Code 78-123 provides additional parameters within which a variance may be granted as follows: 4. Economic considerations alone do not constitute practical difficulties. Economic considerations have not been a factor in the variance approval determination. 5. Practical difficulties also include but are not limited to inadequate access to direct sunlight for solar energy systems. Variances shall be granted for earth-sheltered construction as defined in Minn. Stat. § 216C.06, subd. 2, when in harmony with Orono City Code Chapter 78. This condition is not applicable. 6. The board or the council may not permit as a variance any use that is not permitted under Orono City Code Chapter 78 for property in the zone where the affected person's land is LA20-000071 November 16, 2020 Page 4 of 5 located. This condition is not applicable, as a single family home is an allowed use in the RR-1A District. 7. The board or council may permit as a variance the temporary use of a one-family dwelling as a two-family dwelling. This condition is not applicable. 8. The special conditions applying to the structure or land in question are peculiar to such property or immediately adjoining property. The size and width of the lot within the RR- 1A zoning district is unique, and supports approval of the requested lot width, lot area and setback variances. 9. The conditions do not apply generally to other land or structures in the district in which the land is located. The size of the lot is unique within the existing 5-acre zoning district. 10. The granting of the application is necessary for the preservation and enjoyment of a substantial property right of the applicant. The applicant stated this is true. 11. The granting of the proposed variance will not in any way impair health, safety, comfort or morals, or in any other respect be contrary to the intent of this chapter. Granting of the requested variances would not impair health, safety, comfort or morals and would be in keeping with the intent of the zoning code, 12. The granting of such variance will not merely serve as a convenience to the applicant, but is necessary to alleviate demonstrable difficulty. The applicant has stated the narrow lot results in setback challenges for construction of a single family home. The property is unique in size for this zoning district. The Commission may recommend or Council may impose conditions in granting of variances. Any conditions imposed must be directly related to and must bear a rough proportionality to the impact created by the variance. No variance shall be granted or changed beyond the use permitted in this chapter in the district where such land is located. Public Comments To date, no public comments have been received. The applicant submitted a neighbor acknowledgement signature as part of the application. Exhibit F Issues for Consideration 1. Does the Planning Commission find that that the property owner proposes to use the property in a reasonable manner which is not permitted by an official control? 2. Does the Planning Commission find that the variance(s), if granted, will not alter the essential character of the neighborhood? 3. Does the Commission find it necessary to impose conditions in order to mitigate the impacts created by the granting of the requested variance(s)? 4. Are there any other issues or concerns with this application? Planning Staff Recommendation Planning Staff recommends approval of the lot area, lot width and side yard setback variances. List of Exhibits Exhibit A. Application/ Narrative Exhibit B. Practical Difficulties Documentation Form Exhibit C. Existing & Proposed Survey/Site Plan Exhibit D. Proposed Plans and Elevations Exhibit E. Submitted Structural Calculations /Septic Report Exhibit F. Neighbor Acknowledgement LA20-000071 November 16, 2020 Page 5 of 5 Exhibit G. Property Owners List and Map AGENDA ITEM Prepared By: mcc Reviewed By: J. Barnhart Approved By: DJR 1. Purpose. This application is regarding an average lakeshore variance for an addition. 2. MN§15.99 Application Deadline. The application was received and was considered to be complete on October 21, 2020. Therefore the 60-Day review period expires on December 20th. 3. Background/ Summary. The new owners of the home would like to construct an addition to the home and add a new deck. The home addition will replace an existing deck, and the new deck will be positioned to the north of the addition. The entire lake side of the home is lakeward of the average lakeshore setback line, limiting expansion opportunities. Due to the configuration of the property and the uniqueness of the neighboring property with the cove inlet on the north side of the subject, much of the home is lakeward of the average lakeshore setback line. An average lakeshore setback variance is required. At the location of the greatest encroachment, the existing house is approximately 50-feet lakeward of the average lakeshore setback line. The proposed 13-foot addition will extend lakeward from the existing home. Due to the home’s orientation the home addition will not extend closer to the lake than the existing home. The bottom two stair treads of the deck stair initially encroached just past the existing pillars on the lake side. The Planning Commission recommended the steps be revised so not to extend past the pillars. 4. Planning Commission Vote and Comment. On November 16th, the Planning Commission held a public hearing. They discussed the request and the encroachment of the deck stair. The Commission voted 5 to 2 in favor of denial as proposed. The general consensus was supportive of the average lakeshore setback variance for the addition and the deck. The Commission indicated that the portion of the stair which extended past the most lakeward pillar on the existing home was not approvable. While technically a denial recommendation, Council should review the minutes for the details of this discussion about the proposed plan which, now that it has been revised, appears to become supportable by the Commission. Item No.: 25 Date: December 7, 2020 Item Description: LA20-000070 - Boyer Building Corp. o/b/o Brian O’Connell + Lynne Rasmussen, 3145 North Shore Drive – Resolution Presenter: Melanie Curtis Planner Agenda Section: Planning Department Report AGENDA ITEM Prepared By: mcc Reviewed By: J. Barnhart Approved By: DJR 5. Public Comment. Supportive comments from the most affected neighbors were received and are attached as Exhibit D. 6. Staff Recommendation. Staff recommends approval of the average lakeshore setback variance based on the revised plan. COUNCIL ACTION REQUESTED Motion to adopt or amend the approval resolution. Exhibits A. Draft Resolution B. Revised Plans C. Draft PC Minutes D. Public Comment E. PC Staff Report References PC Exhibits of 11/16/2020 A. Application B. Practical Difficulties Documentation Form C. Proposed Survey D. Proposed Plans and Elevations E. Aerial Photos F. Submitted Hardcover Calculations G. Neighbor Comments H. Property Owners List I. Plat Map CITY OF ORONO RESOLUTION OF THE CITY COUNCIL NO. ________________________ 1 A RESOLUTION APPROVING A VARIANCE FROM MUNICIPAL ZONING CODE SECTION 78-1279 FILE NO. LA20 -000070 WHEREAS, on October 21, 2020, Boyer Building Corporation (hereinafter the “Applicant”) on behalf of Brian O’Connell and Lynne Rasmussen (hereinafter the “Owners”), applied for a variance from the City Code for the property addressed 3145 North Shore Drive and legally described as: Tract B, RLS No. 1113, Hennepin County, Minnesota (hereinafter the “Property”); WHEREAS, the Applicant has made application to the City of Orono for a variance from Orono Municipal Zoning Code Section 78-1279 to allow construction of an addition and a deck lakeward of the average lakeshore setback line; and WHEREAS, on November 16, 2020, after published and mailed notice in accordance with Minnesota Statutes and the City Code, the Planning Commission held a public hearing, at which time all persons desiring to be heard concerning this application were given the opportunity to speak thereon; and WHEREAS, on November 16, 2020, the Planning Commission voted 5 to 2 in favor of denial as proposed. The Commission’s general consensus was supportive of the average lakeshore setback variance for the addition and the deck. They indicated that the portion of the deck stair which extended past the most lakeward pillar on the existing home was not approvable; and WHEREAS, on November 30, 2020, the Applicant provided a revised plan which reflected the deck stair meeting the Commission’s direction; and WHEREAS, on December 7, 2020, the City Council reviewed the application and the recommendations of the Planning Commission and City staff; and NOW, THEREFORE, BE IT RESOLVED that the City Council of Orono, Minnesota hereby approves the requested variance as described above based on one or more of the following findings of fact concerning the Property: CITY OF ORONO RESOLUTION OF THE CITY COUNCIL NO. ________________________ 2 FINDINGS OF FACT: 1. This application was reviewed as Zoning File #LA20-000070. The analysis contained within staff memos and the exhibits attached to the aforesaid memos, all minutes from the above mentioned meetings, and any and all other materials distributed at these meetings are hereby incorporated by reference. 2. The Property is located in the LR-1B One Family Lakeshore Zoning District. 3. The Property contains 1.13 acres in area and has a defined lot width of 117 feet. 4. The Property is within Tier 1 and hardcover is limited to 25% according to the Stormwater Quality Overlay District. 5. Applicant has applied for the following variance: a. Average Lakeshore Setback Variance 6. In considering this application for variance, the Council has considered the advice and recommendation of the Planning Commission and the effect of the proposed variance upon the health, safety and welfare of the community, existing and anticipated traffic conditions, light and air, danger of fire, risk to the public safety, and the effect on values of property in the surrounding area. ANALYSIS: 1. “Variances shall only be permitted when they are in harmony with the general purposes and intent of the ordinance . . . .” The requested average lakeshore setback variance is in harmony with the Ordinance as the adjacent neighbors’ views of the lake will not be impacted by the improvements. 2. “Variances shall only be permitted . . . when the variances are consistent with the comprehensive plan.” The variances resulting in a permit for construction of an addition to an existing single family residence in a residential zone are consistent with the Comprehensive Plan. 3. “Variances may be granted when the applicant for the variance establishes that there are practical difficulties in complying with the zoning ordinance. ‘Practical difficulties,’ as used in connection with the granting of a variance, means that: CITY OF ORONO RESOLUTION OF THE CITY COUNCIL NO. ________________________ 3 a. The property owner in question proposes to use the property in a reasonable manner, however, the proposed use is not permitted by the official controls. The request to permit construction of improvements lakeward of the average lakeshore setback appears to be reasonable; the unique lagoon shoreline, location of the neighboring home, and home orientation separate the Property from the adjacent neighbors. b. The plight of the landowner is due to circumstances unique to his property not created by the landowner. The location of the existing home, the orientation and location of the neighboring homes, and the character of the lake shoreline with the lagoon on the north are conditions not created by the landowner; c. The variance, if granted, will not alter the essential character of the locality.” It does not appear that the requested average lakeshore setback variance to permit an addition to the home will adversely impact views of the lake currently enjoyed by the adjacent property owners or alter the character of the locality. 4. “Economic considerations alone do not constitute practical difficulties.” Economic considerations have not been a factor in the variance approval determination. 5. “Practical difficulties also include but are not limited to inadequate access to direct sunlight for solar energy systems. Variances shall be granted for earth-sheltered construction as defined in Minn. Stat. § 216C.06, subd. 2, when in harmony with Orono City Code Chapter 78.” This condition is not applicable. 6. “The board or the council may not permit as a variance any use that is not permitted under Orono City Code Chapter 78 for property in the zone where the affected person's land is located.” This condition is not applicable, as an addition to a residence is an allowed use in the LR-1B District. 7. “The board or council may permit as a variance the temporary use of a one-family dwelling as a two-family dwelling.” This condition is not applicable. 8. “The special conditions applying to the structure or land in question are peculiar to such property or immediately adjoining property.” The location of the existing home, the orientation and location of the neighboring homes, the lagoon shoreline, and the character CITY OF ORONO RESOLUTION OF THE CITY COUNCIL NO. ________________________ 4 of the neighborhood are unique conditions affecting the Property and the immediately adjoining properties. 9. “The conditions do not apply generally to other land or structures in the district in which the land is located.” The location of the existing home, the orientation and location of the neighboring homes, the lagoon shoreline, and the character of the neighborhood are unique conditions affecting the Property and the immediately adjoining properties. 10. “The granting of the application is necessary for the preservation and enjoyment of a substantial property right of the applicant.” The applicant states that the variance is necessary to preserve their right to improve their home and property. 11. “The granting of the proposed variance will not in any way impair health, safety, comfort or morals, or in any other respect be contrary to the intent of this chapter.” Granting the requested variance will not adversely impact health, safety, comfort, or morals; nor will it be contrary to the intent of the Code. 12. “The granting of such variance will not merely serve as a convenience to the applicant, but is necessary to alleviate demonstrable difficulty.” The application of the average lakeshore setback on the Property severely limits the options for expanding and/or improving the home; the granting of the requested variance is necessary to alleviate a practical difficulty resulting from the location of the existing home in relation to the neighboring home to the north, the orientation of the neighboring homes, and the character of the lagoon lakeshore affecting the Property and the property to the north. CONCLUSIONS, ORDER AND CONDITIONS: Based upon one or more of the above findings, the Orono City Council hereby grants a variance to Orono Municipal Zoning Code Section 78-1279 to allow construction of an addition and a deck on the lake side of the home, lakeward of the average lakeshore setback, subject to the following conditions: 1. Council approval is based on the entire record, above Findings. 2. The approved project shall conform to the survey dated November 23, 2020, and building plans submitted by the Applicant and annotated by City staff, attached to this Resolution as Exhibits A & B. 3. Any amendments to the plans which are not in conformity with City codes may require further Planning Commission and City Council review. CITY OF ORONO RESOLUTION OF THE CITY COUNCIL NO. ________________________ 5 4. Authorities granted by this resolution run with the Property not with the Applicants, but are permissive only and must be exercised by obtaining a building permit for the new construction and commencing construction of said project. A framing inspection must be completed within one year of the date of Council approval, or the variance will expire on that date (December 7, 2021). 5. Violation of or non-compliance with any of the terms and conditions of this resolution may result in the termination of any authority granted herein. ADOPTED by the Orono City Council on this 7th day of December, 2020. ATTEST: CITY OF ORONO: _______________________________ ________________________________ Anna Carlson, City Clerk Dennis Walsh, Mayor 93 2 . 0 93 2 . 1 932.15931.82932.13932.02 93 1 . 9 5 93 1 . 9 8 93 3 . 1 5 93 3 . 1 5 93 3 . 0 8 932.38 932.09932.59 FLAG POLE 932.18 93 2 . 4 1 93 2 . 4 5 93 2 . 8 6 93 2 . 5 3 93 3 . 5 3 93 3 . 6 4 93 4 . 2 7 933.7 3 93 3 . 9 6 93 3 . 3 7 93 3 . 2 8 93 3 . 8 6 93 3 . 5 4 93 3 . 4 3 93 3 . 0 5 93 3 . 2 5 93 2 . 6 7 93 2 . 9 1 93 3 . 6 3 9 3 4 . 2 2 934 . 6 2 93 4 . 7 8 933.91 TR E E 2 4 93 4 . 7 5 LO W E S T F L O O R 934. 3 3 936.88 PI N E 4 F T AS H 2 4 I N MA P L E 1 8 I N PI N E 1 6 F T POP L A R 1 2 X 3 93 3 . 2 7 931.63931.72931.76931.86 9 3 2 . 0 1 93 1 . 8 3 932.14 93 2 . 5 0 93 3 . 6 6 93 3 . 8 1 93 4 . 6 5 BO T T O M S I D I N G 93 8 . 7 7 BO T T O M S I D I N G 93 4 . 0 3 93 3 . 3 5 93 3 . 3 3 93 3 . 2 3 EH 2 O EH 2 O EH 2 O EH 2 O EH 2 O EH 2 O EH 2 O EH2O EH2O 931.65 931.66 931.66 931.69 931.71 93 1 . 6 5 93 1 . 3 7 93 1 . 5 4 93 2 . 6 3 93 2 . 6 5 EH 2 O 931.78 929.87 929.48 926.86926.73926.64 94 4 . 9 8 FF E G A R 9 4 5 . 2 3 F F E 94 5 . 0 5 FF E PI N E 4 I N TR E E 2 I N 93 8 . 2 6 93 9 . 5 1 94 0 . 3 4 94 0 . 6 5 93 8 . 5 8 93 8 . 4 4 93 7 . 9 8 93 6 . 8 5 93 7 . 1 2 93 5 . 9 7 93 5 . 0 8 93 5 . 2 5 93 6 . 1 1 93 5 . 8 6 93 5 . 1 5 93 2 . 6 6 93 3 . 2 7 93 3 . 2 4 93 3 . 7 9 93 4 . 8 9 936 . 9 6 938. 3 5 93 8 . 5 5 93 9 . 9 3 93 9 . 1 3 93 8 . 5 0 PI N E 1 2 I N P I N E 2 4 I N PI N E 8 I N PI N E 1 2 I N PI N E 2 4 I N TR E E 3 0 I N PI N E 2 4 I N PI N E 1 2 I N PI N E 1 2 I N PI N E 6 I N PI N E 6 I N PIN E 6 I N 93 5 . 5 4 93 6 . 0 4 FF E H U B GV 93 7 . 7 8 93 7 . 4 3 93 7 . 5 7 93 6 . 8 6 93 9 . 5 1 93 9 . 7 7 93 9 . 6 9 94 0 . 4 7 94 0 . 5 1 94 0 . 7 6 94 0 . 7 8 94 1 . 2 0 T R E E 4 8 I N BOU L D E R W A L L TOP : 9 3 8 . 8 BOT T O M : 9 3 5 . 8 BO U L D E R W A L L TO P : 9 3 9 . 8 BO T T O M : 9 3 7 . 4 WO O D M U L C H AR B O R V I T A E R O W AR B O R V I T A E R O W PL A Y S E T WO O D M U L C H WO O D M U L C H BO U L D E R W A L L TO P : 9 3 8 . 1 BO T T O M : 9 3 6 . 5 BO U L D E R W A L L TO P : 9 3 8 . 5 BO T T O M : 9 3 7 . 9 WO O D MU L C H WO O D M U L C H RO C K GA R D E N BO U L D E R S 76. 6 OHW OHW OHW OHW O H W OH W OHW OHW OHWOHWOHWOHWOHWOHWOHWOHWOHW O H W O H W O H W O H W O H W PIL L A R PI L L A R PIL L A R PIL L A R DE C K : 9 4 4 . 8 WOOD M U L C H 118 . 3 13 8 . 6 3 0 . 2 3 2 . 0 7 5 . 0 1 1 . 3 EX I S T I N G H O U S E 31 5 5 N o r t h S h o r e D r . 58.4 E X I S T I N G H O U S E 3 1 3 5 N o r t h S h o r e D r i v e EXISTING HOUSE 3115 North Shore Drive BASED ON THE MINNESOTA D.N.R.HIGHEST RECORDED WATER ELEV.= 931.11 NGVD 29 ORDINARY HIGH WATER ELEV.= 929.4 NGVD 291/2" OPEN 1/2 " O P E N LS # 1 2 7 5 5 ST O N E P A T H 7 . 6 40 . 0 1 8 . 1 2. 6 8 . 5 36 . 5 3 . 9 34 . 7 1 1 . 7 14 . 8 4 . 4 5.1 1 5 . 3 3.6 1 9 . 2 3.6 1 4 . 9 3.9 4 . 3 14 . 9 1 3 . 0 1.9 1 3 . 6 23 . 1 1 3 . 7 2.8 1 2 . 7 3.4 4 . 2 3.5 2 . 7 1.8 1 0 . 6 1.9 2 . 6 3.2 4 . 3 4.4 9 . 6 4.4 4 . 3 3.3 2 . 7 2.4 1 0 . 5 1.8 2 . 6 0.5 1 . 4 13 . 9 EX I S T I N G H O U S E 31 4 5 N o r t h S h o r e D r . GA R A G E R E B A R P K N A I L 1 / 2 O P E N L S # 1 2 7 5 5 263 . 5 33 . 1 1 6 . 4 10 0 . 2 CO R N E R LA N D S I N T R E E 4. 8 29 . 2 3 26 . 0 1 36 . 6 5 1.5 ± 11± 86 . 6 5 LS # 7 7 2 5 PK N A I L DO C K TO P O F B A N K TOP OF BANK S 3 4 ° 1 9 ' 1 5 " W 1 0 5 . 2 7 ( M ) N 4 6 ° 5 0 ' E 7 6 ( R L S N O . 1 1 1 3 ) 2 . 8 ST O N E P A V E R S T E P S 108.5 (SHORELINE LENGTH) AVERAGE LAKESHORE SETBACK 928.89 928.97 928.96 929.00 928.95 928.93 929.42 929 . 3 0 9 3 2 . 5 4 932. 4 6 931.61931.84931.87930.00 929.91 929.86 929.96 929.77 929.60 9 3 2 . 4 3 93 2 . 7 0 93 2 . 9 1 93 2 . 7 2 93 2 . 5 6 93 2 . 3 8 93 2 . 5 2 93 2 . 7 3 93 2 . 5 8 93 2 . 3 7 932.27932.37932.36 93 2 . 4 8 93 2 . 6 1 93 2 . 7 1 93 2 . 7 7 93 2 . 6 1 932.46932.29932.46 93 2 . 5 7 93 2 . 7 4 93 2 . 6 5 932.41931.96932.44 93 2 . 5 9 932.15 932.17 931.90931.99931.85932.26 931.92932.28932.27932.31932.28931.99 932.10 932.14 932.13 93 3 . 1 6 93 4 . 2 9 93 4 . 3 5 93 3 . 4 9 9 3 3 . 5 6 93 4 . 0 4 93 3 . 9 4 93 4 . 1 3 93 4 . 0 0 93 3 . 5 3 93 3 . 1 5 93 3 . 3 3 93 2 . 4 6 93 2 . 1 8 93 1 . 9 8 93 2 . 1 0 EH 2 0 EH 2 0 EH 2 0 932.90932.63 931.98 929.47 929.55 929.47 929.18 929.37 929.47 929.39 929.41 929.17DOCK PR O P O S E D 16 9 S . F . AD D I T I O N EXISTING STEPEXISTING STEP DOCKPILLARPILLAR DR I V E W A Y AR E A N O T CO U N T E D I N HA R D C O V E R (1 , 8 4 5 s . f . ) DR I V E W A Y AR E A N O T CO U N T E D I N HA R D C O V E R (2 0 0 s . f . ) DR I V E W A Y AR E A N O T CO U N T E D I N HA R D C O V E R 1 3 . 0 0 13 . 0 0 1 3 . 1 7 13 . 0 0 PR O P O S E D 22 3 S . F . DE C K / S T E P S PR O P O S E D S T E P S (W I L L N O T E X T E N D B E Y O N D TH E B A C K L I N E O F T H E H O U S E ) 9 3 8 . 5 5 CE R T I F I C A T E O F S U R V E Y DRAWN BY:SNN JOB NO:200693 DATE:07/16/20 KDN CHECK BY:1 2 3 4 23NOV20 REMOVE STEP/ADD ELEV BY FIELD CREW:                                                             E. G . R U D & S O N S , I N C .                           ES T . 1 9 7 7                                                                                                TOTAL LOT AREA ............................................. 49,320 s.f.PROPOSED ADDITION/DECK.................................... 392 s.f.RET WALLS ............................................................159 s.f.HOUSE AND GARAGE ............................................4,355 s.f.BITUMINOUS (benefits this lot) ..............................4,281 s.f.PAVERS/PILLARS ................................................... 278 s.f.CONCRETE ........................................................... 534 s.f.TOTAL IMPERVIOUS SURFACE ...............................9,999 s.f.PERCENT IMPERVIOUS ............................................20.3% BE N C H M A R K : MN D O T C O N T R O L P O I N T " B R 7 1 9 4 " GS I D S T A . # 1 1 1 9 3 EL E V = 9 4 5 . 9 9 2 ( N G V D 2 9 ) BE N C H M A R K - F i e l d s u r v e y w a s c o m p l e t e d b y E . G . R u d a n d S o n s , I n c . o n 0 6 / 2 4 / 2 0 . - B e a r i n g s s h o w n a r e o n t h e H e n n e p i n C o u n t y C o o r d i n a t e S y s t e m ( N A D 8 3 - 8 6 A d j . ) - P a r c e l I D N u m b e r : 0 9 1 1 7 2 3 3 3 0 0 1 3 . - T h i s s u r v e y w a s p r e p a r e d w i t h o u t t h e b e n e f i t o f t i t l e w o r k . A d d i t i o n a l e a s e m e n t s , r e s t r i c t i o n s an d / o r e n c u m b r a n c e s m a y e x i s t o t h e r t h a n t h o s e s h o w n h e r e o n . S u r v e y s u b j e c t t o r e v i s i o n up o n r e c e i p t o f a c u r r e n t t i t l e c o m m i t m e n t o r a n a t t o r n e y ' s t i t l e o p i n i o n . NO T E S TR E E D E T A I L DE N O T E S R E T A I N I N G W A L L DE N O T E S O R D I N A R Y H I G H W A T E R L I N E ( 9 2 9 . 4 E L E V ) DE N O T E S T R E E L I N E LE G E N D DE N O T E S I R O N M O N U M E N T F O U N D A S L A B E L E D DE N O T E S C A T C H B A S I N DE N O T E S S T O R M S E W E R M A N H O L E DE N O T E S H Y D R A N T DE N O T E S W A T E R V A L V E DE N O T E S G A S M E T E R DE N O T E S P O W E R P O L E DE N O T E S C O N C R E T E S U R F A C E DE N O T E S B I T U M I N O U S S U R F A C E DE N O T E S L I G H T P O L E DE N O T E S C A B L E P E D E S T A L DE N O T E S E X I S T I N G S P O T E L E V A T I O N DE N O T E S M I S C E L L A N E O U S M A N H O L E DE N O T E S E L E C T R I C A L B O X DE N O T E S E X I S T I N G C O N T O U R S DE N O T E S A I R C O N D I T I O N I N G U N I T DE N O T E S P A V E R S U R F A C E DE N O T E S G A S V A L V E DE N O T E S C L E A N O U T DE N O T E S C U R B S T O P DE N O T E S C A T C H B A S I N M A N H O L E DE N O T E S P O S T I N D I C A T O R V A V L E DE N O T E S S A N I T A R Y S E W E R M A N H O L E X 9 5 2 . 3 6 GV CO CS PI V DE N O T E S F O U N D P K N A I L DE N O T E S E L E V A T I O N DE N O T E S T R E E Q U A N T I T Y DE N O T E S T R E E S I Z E I N I N C H E S DE N O T E S T R E E T Y P E DE N O T E S F O U N D J U D I C I A L L A N D M A R K Tr a c t B , R e g i s t e r e d L a n d S u r v e y N o . 1 1 1 3 . He n n e p i n C o u n t y , M N . LA N D D E S C R I P T I O N OH W DE N O T E S 7 5 F O O T O F F S E T O R D I N A R Y H I G H W A T E R L I N E (M ) ME A S U R E D B E A R I N G O R D I S T A N C E (P E R R L S N O . 1 1 1 3 ) BE A R I N G O R D I S T A N C E P E R R E G I S T E R E D L A N D S U R V E Y N O . 1 1 1 3 0 20 2 0 4 0 80 10 Da t e : L i c e n s e N o . 4 5 3 5 6 SA M U E L N . N I E M E L A I h e r e b y c e r t i f y t h a t t h i s s u r v e y , p l a n or r e p o r t w a s p r e p a r e d b y m e o r u n d e r my d i r e c t s u p e r v i s i o n a n d t h a t I a m a du l y R e g i s t e r e d L a n d S u r v e y o r u n d e r th e l a w s o f t h e S t a t e o f M i n n e s o t a . 23 N O V 2 0 9SEP20 ADD'L ELEV/UPDATE IMPERVIOUS SNN 20OCT20 PROPOSED/UPDATE IMPERVIOUS SNN 12NOV20 PROPOSED/UPDATE IMPERVIOUS SNN 95 6 . 7 DE N O T E S P R O P O S E D E L E V A T I O N M S P 9 9 9 5 9 3 9 3 9 3 8 5 9 3 8 5 Line of pillar 932.0 932.1 932. 1 5 931 . 8 2 932.13 932.02 931.95 931.98 933.15 933.15 933.08 932.38 93 2 . 0 9 9 3 2 . 5 9 FLAG POLE 932.18 932.41 932.45 932.86 932.53 933.53933.64 934.27 9 3 3 . 7 3 933.96 933.37 933.28 933.86 933.54 933.43 933.05 933.25932.67 932.91 933.63 934. 2 2 9 3 4 . 6 2 934.78 9 3 3 . 9 1 TREE 24 934.75 LOWEST FLOOR 9 3 4 . 3 3 9 3 6 . 8 8 PINE 4FT ASH 24IN MAPLE 18IN PINE 16FT PO P L A R 1 2 X 3 933.27 931.6 3 931 . 7 2 931 . 7 6 931. 8 6 932 . 0 1 931.83 932.14 932.50 933 . 6 6 933.81 934. 6 5 BOT T O M S I D I N G 938. 7 7 BOTT O M S I D I N G 934.03 933.35 933.33 933.23 EH2O EH2O EH2O EH2O EH2O EH2O EH2O EH2O EH2O 931.65 931.6 6 931.66 931. 6 9 931. 7 1 931.65 931.37 931.54 932.63 932.65 EH2O 931.78 929.87 929 . 4 8 926.86 926.73 926.64 944.98 FFE GAR 94 5 . 2 3 FF E 945.05 FFE PINE 4IN TREE 2IN 938.26 939.51 940.34 940.65 938.58 938.44 937.98 936.85 937.12 935.97 935.08 935.25 936.11 935.86 935.15 932.66 933.27 933.24933.79934.89 9 3 6 . 9 6 9 3 8 . 3 5 938.55939.93 939.13 938.50 PINE 12IN PINE 2 4 I N PINE 8IN PINE 12IN PINE 24IN TREE 30IN PINE 24IN PINE 12IN PINE 12IN PINE 6IN PINE 6IN PI N E 6 I N 935.54 936.04 FFE HUB GV 937.78 937.43 937.57 936.86 939.51 939.77 939.69 940.47 940.51 940.76 940.78 941.20 TRE E 4 8 I N B O U L D E R W A L L T O P : 9 3 8 . 8 B O T T O M : 9 3 5 . 8 BOULDER WALL TOP:939.8 BOTTOM:937.4 WOOD MULCH ARBORVITAE ROW ARBORVITAE ROW PLAYSET WOOD MULCH WOOD MULCH BOULDER WALL TOP:938.1 BOTTOM:936.5 BOULDER WALL TOP:938.5 BOTTOM:937.9 WOO D MUL C H WOOD MULCH ROCK GARDEN BOULDERS 7 6 . 6 94 2 934 936 938 940 94 0 944 942 94 0 938940 942 OHW OH W OH W OH W OHW OHW O H W O H W OHW O H W O H W O H W O H W O H W O H W O H W OHW OHW OH W OH W OH W OH W PILLA R PILLAR PILLA R PILL A R DECK : 9 4 4 . 8 W O O D M U L C H 1 1 8 . 3 138.6 30 . 2 32 . 0 75 . 0 11 . 3 EXISTING HOUSE 3155 North Shore Dr. 5 8 . 4 EXISTING H O U S E 3135 North S h o r e D r i v e EXISTING HOUSE 3115 North Shore Drive BASED ON THE MINNESOTA D.N.R. HIGHEST RECORDED WATER ELEV.= 9 3 1 . 1 1 N G V D 2 9 ORDINARY HIGH WATER ELEV.= 929 . 4 N G V D 2 9 1/2 " O P E N 1/ 2 " O P E N LS # 1 2 7 5 5 STONE PATH 7. 6 40.0 18 . 1 2.6 8. 5 36.5 3. 9 34.7 11 . 7 14.8 4. 4 5.1 15 . 3 3.6 19 . 2 3.6 14 . 9 3.9 4. 3 14.9 13 . 0 1.9 13 . 6 23.1 13 . 7 2.8 12 . 7 3.4 4. 2 3.52. 7 1.8 10 . 6 1.9 2. 6 3.2 4. 3 4.4 9. 6 4.4 4. 3 3.32. 7 2.4 10 . 5 1.8 2. 6 0.5 1. 4 13.9 EXISTING HOUSE 3145 North Shore Dr. GARAGE REB A R PK N A I L 1/ 2 O P E N LS # 1 2 7 5 5 2 6 3 . 5 33.1 16 . 4 100.2 CORNER LANDS IN TREE 4.8 29.23 26.01 36.65 1.5± 11± 86.65 LS #77 2 5 PK NAI L DOC K TOP OF BANK TOP OF BANK S3 4 ° 1 9 ' 1 5 " W 1 0 5 . 2 7 ( M ) N4 6 ° 5 0 ' E 7 6 ( R L S N O . 1 1 1 3 ) 9 3 2 930 2. 8 STONE PAVER STEPS 108 . 5 ( S H O R E L I N E L E N G T H ) A V E R A G E L A K E S H O R E S E T B A C K 928.89 928.97 928.96 929.00 928.95 928.93 929.42 9 2 9 . 3 0 932 . 5 4 9 3 2 . 4 6 931.61 931.84 931 . 8 7 930.00 929.91 92 9 . 8 6 9 2 9 . 9 6 929.77 929.60 932.43 932.70 932.91 932.72 932.56 932.38 932.52 932.73 932.58 932.37 9 3 2 . 2 7 932.37 932.3 6 932.48 932.61 932.71 932.77 932.61 932.46 932.29 932.46 932.57932.74 932.65 932.41 931.96 932.44932.59 932.15 932.17 931. 9 0 931.99 931.85 932.26 931.92 932.28 932.27 932.31 932.28 931.99 932.10 932.14 932.13 933.16 934.29 934.35 933.49 933.56 934.04933.94 934.13 934.00 933.53 933.15 933.33 932.46 932.18 931.98 932.10 EH20 EH20 EH20 932.90 932.63931.98 929.47 929.55 929.47 929.18 929.37 929 . 4 7 929.39 929.41 929.17 93 3 DOC K PROP O S E D 169 S . F . ADDI T I O N EXI S T I N G STE P EXISTING STEP DOCK PI L L A R PI L L A R DRIVEWAY AREA NOT COUNTED IN HARDCOVER (1,845 s.f.) DRIVEWAY AREA NOT COUNTED IN HARDCOVER (200 s.f.) DRIVEWAY AREA NOT COUNTED IN HARDCOVER 94 1 9 4 0 93 9 938 93 9 942 933 93 3 9 3 4 932 932 93 2 939 937 941 943 13 . 0 0 13.0 0 13 . 1 7 13.0 0 PROP O S E D 223 S . F . DECK / S T E P S PROPOSED STEPS (WILL NOT EXTEND BEYOND THE BACK LINE OF THE HOUSE) 93 8 . 5 5 CERTIFICATE OF SURVEY NORTH DRAWN BY:SNN JOB NO:200693 DATE:07/16/20 KDNCHECK BY: 1 2 3 4 23NOV20 REMOVE STEP/ADD ELEV BY 200693 FIELD CREW: ~for~LYNN RASSMUSSEN ~of~3145 North Shore Drive, Orono, MN 55391 E. G. RUD & SONS, INC. Professional Land SurveyorsEST. 1977 990 5th Avenue SE, Suite 2Hutchinson, MN 55350 Tel. (320) 587-2025 Fax (320) 587-2595 www.egrud.com IMPERVIOUS SURFACE CALCULATIONS TOTAL LOT AREA ............................................. 49,320 s.f. PROPOSED ADDITION/DECK.................................... 392 s.f. RET WALLS ............................................................159 s.f. HOUSE AND GARAGE ............................................4,355 s.f. BITUMINOUS (benefits this lot) ..............................4,281 s.f. PAVERS/PILLARS ................................................... 278 s.f. CONCRETE ........................................................... 534 s.f. TOTAL IMPERVIOUS SURFACE ...............................9,999 s.f. PERCENT IMPERVIOUS ............................................20.3% BENCHMARK: MNDOT CONTROL POINT "BR 7194" GSID STA. #11193 ELEV=945.992 (NGVD 29) BENCHMARK -Field survey was completed by E.G. Rud and Sons, Inc. on 06/24/20. -Bearings shown are on the Hennepin County Coordinate System (NAD 83 - 86 Adj.) -Parcel ID Number: 0911723330013. -This survey was prepared without the benefit of title work. Additional easements, restrictions and/or encumbrances may exist other than those shown hereon. Survey subject to revision upon receipt of a current title commitment or an attorney's title opinion. NOTES TREE DETAIL DENOTES RETAINING WALL DENOTES ORDINARY HIGH WATER LINE (929.4 ELEV) DENOTES TREE LINE LEGEND DENOTES IRON MONUMENT FOUND AS LABELED DENOTES CATCH BASIN DENOTES STORM SEWER MANHOLE DENOTES HYDRANT DENOTES WATER VALVE DENOTES GAS METER DENOTES POWER POLE DENOTES CONCRETE SURFACE DENOTES BITUMINOUS SURFACE DENOTES LIGHT POLE DENOTES CABLE PEDESTAL DENOTES EXISTING SPOT ELEVATION DENOTES MISCELLANEOUS MANHOLE DENOTES ELECTRICAL BOX DENOTES EXISTING CONTOURS DENOTES AIR CONDITIONING UNIT DENOTES PAVER SURFACE DENOTES GAS VALVE DENOTES CLEAN OUT DENOTES CURB STOP DENOTES CATCH BASIN MANHOLE DENOTES POST INDICATOR VAVLE DENOTES SANITARY SEWER MANHOLE X 952.36 GV CO CS PIV DENOTES FOUND PKNAIL DENOTES ELEVATION DENOTES TREE QUANTITY DENOTES TREE SIZE IN INCHES DENOTES TREE TYPE DENOTES FOUND JUDICIAL LANDMARK Tract B, Registered Land Survey No. 1113. Hennepin County, MN. LAND DESCRIPTION OHW DENOTES 75 FOOT OFFSET ORDINARY HIGH WATER LINE (M)MEASURED BEARING OR DISTANCE (PER RLS NO. 1113)BEARING OR DISTANCE PER REGISTERED LAND SURVEY NO. 1113 020 20 40 8010 Date: License No. 45356 SAMUEL N. NIEMELA I hereby certify that this survey, plan or report was prepared by me or under my direct supervision and that I am a duly Registered Land Surveyor under the laws of the State of Minnesota. 23NOV20 9SEP20 ADD'L ELEV/UPDATE IMPERVIOUS SNN 20OCT20 PROPOSED/UPDATE IMPERVIOUS SNN 12NOV20 PROPOSED/UPDATE IMPERVIOUS SNN 956.7 DENOTES PROPOSED ELEVATION MINUTES OF THE ORONO PLANNING COMMISSION Monday, November 16, 2020 6:00 o’clock p.m. _____________________________________________________________________________________ 2. LA20-000070 BOYER BUILDING CORP., 3145 NORTH SHORE DRIVE, VARIANCE. STAFF: MELANIE CURTIS Brian O’Connell, Applicant, was present. Staff presented a summary of packet information. Ms. Curtis noted due to the unique nature of the lagoon shoreline pushing the northern neighbors’ home further from the lake than the other neighbors on the shoreline, there are practical difficulties affecting this property. She noted Exhibit G in the packet is a supportive letter from the neighbor to the north. Staff recommends approval of the requested variance based on the support and configuration. Kirchner asked regarding a photo onscreen that shows the survey and proposed addition; Ms. Curtis had mentioned none of the proposed addition will go further lakeward than the existing home and asked if that is a staircase shown. Ms. Curtis said yes, that is a stairwell. Kirchner asked how much farther than the front of the house that will extend. Ms. Curtis said she can measure it and get back to him. James McNeal, Architecture and Design, IMS Building 275 Market Street, Minneapolis, noted he worked on this house between 12-15 years ago and had to go through a variance process; having the lagoon is a problem. If one imagines how people perceive things, there is an illusion and they connect the dots. If one was on a boat in Lake Minnetonka looking at this property, they would look at the houses and expect to see them all kind of lined up. All of a sudden there is this lagoon with a narrow channel that takes one into the lagoon and he stated they are not doing anything that is opposing that or losing any design intent for the setbacks and sightlines. The tree line from the house to the right is already blocking that particular person’s view and that person has already approved this design and does not feel like it affects. Mr. McNeal thinks it is a reasonable thing to ask as long as they stay within the setback that is there, they should be able to change a deck to a screen porch, or put a roof over it, or make it a room or dining room as the client wants to do. He thinks this is a reasonable request and they are trying to do their best to maintain the intent of the City’s laws. Gettman asked regarding the staircase; he appreciates Mr. McNeal’s candor that they are trying to keep within the same footprint but how did the staircase end up going outside of that. Mr. McNeal replied mostly because the stairs are at a sharp angle and it immediately goes down. The grade is raised up there to begin with, so sightline-wise, it really is an insignificant portion. For all practical purposes, they do not need the stairs, but it is an ideal. Gettman asked if there were stairs there before. Mr. McNeal replied in the affirmative; there were stairs there before from the existing deck. Chair Ressler opened the public hearing at 6:38 p.m. Chair Ressler closed the public hearing at 6:38 p.m. MINUTES OF THE ORONO PLANNING COMMISSION Monday, November 16, 2020 6:00 o’clock p.m. _____________________________________________________________________________________ Chair Ressler asked Ms. Curtis on slide 17 of the combined file it shows the setback line, taking into consideration the lagoon and his question is if that lagoon was not there, the average lakeshore setback would be more intensified so the lagoon is actually improving the situation or is he reading it wrong. Ms. Curtis replied if the lagoon was not there, the house would likely be in this area [noted onscreen], as they would not build back here [noted onscreen] as a choice. Kirchner asked on the survey, there is a curved-dashed line running under the stairs and asked what that is. Ms. Curtis asked Mr. McNeal if that is landscaping. Mr. McNeal answered it is a grading line. Kirchner noted the stairs do appear to extend forward lakeward of the home and that would be the only concern he has with this that they would be allowing the stairs to go further lakeward and worsening the situation from what it already is. Based on the stairs he would not support it, but other than that he is generally supportive of it. Chair Ressler said the only concern he has is with the lagoon there the neighboring property is rather limited for its view. It certainly is helpful that the neighbor is supportive of it and he asked if 3135 North Shore Drive is the letter of support. Ms. Curtis replied that is true. Chair Ressler noted that certainly helps. Average lakeshore setback versus lake yard setback versus side setback is one that the Planning Commission has been generally agreeable with in the past. In situations like this it is difficult to have everything fit into the boxes with the undulating shorelines. Those are the only concerns he has. McCutcheon said they are so experienced and see it so many times, they only have two angles they can go for. He agrees the addition is not a big deal; for him, the deal-breaker is the stairs and noted they almost look bigger than 10 feet. Not that it is a lot of distance, but when it gets closer to the lake that is when they tend to put the block up. He would be in favor if they can get those stairs away from the lake in some way. Ms. Curtis noted a pillar onscreen. McCutcheon asked if they could do an L stair design to keep it away from the lake a bit. He noted this Commission is famous for being sticklers on getting close to the lake. Chair Ressler noted the homeowner may have something to say. Brian O’Connell, homeowner at 3145 North Shore Drive, noted he would certainly prefer to have a straight-off stair because it is more visually appealing from the lake. He thinks they can work with the builder and the architect to potentially grade that ground so they end it one stair higher. Right now they are literally one foot beyond the existing boundary of the house; one could argue that the decorative elements of the roof go beyond that on the top anyway, but he would certainly prefer that the stair be MINUTES OF THE ORONO PLANNING COMMISSION Monday, November 16, 2020 6:00 o’clock p.m. _____________________________________________________________________________________ straight as it looks better from the lake than an angled stair. However, there could be some things they could do with the grading of that land to make the second stair become the bottom stair. Gettman clarified the concern of the Commissioners and said it is not that the stairs are meeting the same threshold as the rest of the house; it is the extending beyond what currently exists. Mr. O’Connell said his contention is that his house has a certain distance from the lake, the farthest structure to the lake as it exists; his asked if someone who owns an irregularly shaped house versus a rectangular house, is he allowed to build into the rectangle area. Gettman noted that is what they suggested they would not support, the squaring off to say they will meet the farthest point. It is all the rest of that being squared off which ends up being a further intrusion of that protected area. He said the old stairs are dotted on a drawing… Mr. O’Connell said where it says the proposed addition onscreen, that is currently the deck and the new deck will go where the stairs are right now, but it will not be as big as the old deck by design. When they have a proper rise and run of the stairs coming down, they end where they end. Gettman stated it is the lower level floor plan and asked Ms. Curtis to show it onscreen. He noted all of those steps that are going straight toward the lake are farther out than the existing structure in that location; it is not that the Applicant is squaring it off, the concern that the other Commissioners have voiced and he shares, is that in that one corner, they are now extending it an additional 13 feet, roughly. Mr. O’Connell said that is correct and he hears what they are saying. He is also going one tread further than the columns of his house and noted he is limited to the right because of the lagoon setback and cannot have stairs over there. The only place to put a stair on the deck is down the way shown onscreen. He could have a deck with no stairs but he’d strongly prefer not to do that. Mr. McNeal said having the straight stairs like that is less obtrusive to the view from Lake Minnetonka because people are not looking at railings, but rather a simple cascading set of steps. Visually he thinks it works and as the owner said, they are not going out beyond the building and if one were to draw a line from the back of the house one would assume it would be straight rather than jog. He understands the Commissioners are going by rules, but the rules are set because of the inconvenience and that is what they are talking about. Chair Ressler said the rules are partially to protect the enjoyment of the neighboring properties and that is why it is nice to have the supporting letter from the neighbors. However, that cannot be the Commissioners’ entire decision one way or the other but it does not hurt. Mr. O’Connell agrees it is unique with this lagoon noted the neighbors at 3135 - from their house to the water of the lagoon - is a lot shorter distance than from the back of his house to the shore on Lake Minnetonka. If the lagoon was not there, the red line onscreen could potentially move toward the corner of that house and his entire house would be behind it and there would not be a challenge. This lagoon creates a challenge and he is trying to be as respectful as he can with the intent and agrees with the intent as a lakeshore homeowner. However, that lagoon and with the house at 3135 so close to the water, it poses some challenges. MINUTES OF THE ORONO PLANNING COMMISSION Monday, November 16, 2020 6:00 o’clock p.m. _____________________________________________________________________________________ Chair Ressler asked if there were any other comments from Commissioners. He stated he has heard the concerns with the stairs, he has heard the Applicant state that if there is difficulty approving the stairway, perhaps he would consider re-grading which would be part of the application, as well. What they need to decide tonight is if they can approve as applied and if it’s approved it will go to City Council to approve. If it is denied, they will have to give feedback as to why it is denied so perhaps it can go to Council with the feedback on what would be agreeable. John Boyer, the builder, wants to confirm and ask that stairways are not able to encroach into the setback. Ms. Curtis replied the deck stairway is part of the deck itself which is required to meet the setback. When looking at average lakeshore setback, the stairs are obviously coming down from an upper deck; when they allow certain elements to be within the average lakeshore setback, 42 inches in height is the limit in that area. Obviously the part of the deck coming down does hit that point at one of the risers and is not over that point anymore, but it still needs to meet the setback as far as the code is applied. Chair Ressler noted this is not a simple application, he welcomes further discussion and feedback, because there are a lot of complexities with shoreline, the lagoon backing in, and he thinks they should also take into consideration Staff recommendation for approval. Bollis said in general he is in favor of it. He thinks the solution of adjusting the grading so the bottom stair does not protrude past the point that the house already encroaches on the lake, he would be fine with. He would say the Commission deny this with support for that change. Kirchner clarified his earlier point that his concern is that last stair tread, which would be in line with Bollis’ recommendation for the grading to improve that. He asked Gettman if he is more concerned with a lot of what would be filling in that rectangular space where the dotted line is that shows the existing staircase at an angle. Gettman said that is what prompted his concern, but he would be okay having it stop where the pillar stops. It is back to the inching closer and closer to that lakeshore; with the average lakeshore setback it makes it that much more difficult and prejudicial to the homeowner, but unfortunately that is what the Commission has been consistently dealing with. He would be supportive of it going up to but not extending beyond the pillar. Kirchner moved, Gettman seconded, to deny LA20-000070, 3145 North Shore Drive, Variance as proposed with a recommendation that the stairs extending beyond the front pillar be evaluated by the architect, homeowner, and builder for further consideration. Chair Ressler noted the motion is to deny and there was additional discussion that was supportive of the application as applied with the exception that Kirchner would like to see the stairs end no further beyond the pillar most lakeward. He added that he, too, is in favor of that. Of course, they do not want to amend an application by any means as that is difficult to do on the fly. However, he would be in support of that modification if that is agreeable to the Applicant before it gets to the Council. Mr. O’Connell asked process-wise, if they make that modification, they do not need to come back through this process again. MINUTES OF THE ORONO PLANNING COMMISSION Monday, November 16, 2020 6:00 o’clock p.m. _____________________________________________________________________________________ Chair Ressler replied yes and that is why they would not table it because if they tabled, then Mr. O’Connell would have to come back. Mr. O’Connell said they have work to do between now and when the Council sees it. Chair Ressler said yes, and that allows the Applicant to continue on with the process. Erickson would not support denial at this time, he thinks this discussion relevant to this highly unique property with the lagoon and channel leads them to have a neighbor with an extreme setback and it is rare that they get that type of setback. He stated there is a very high uniqueness factor in this location which supports the practical difficulty. Erickson thinks the whole discussion points out the challenge they have in regulating average setback and they have had discussions on it before; last year they talked about changing the formula. In spite of all that, they still have a fair number of variance requests, and initially the Commission was tasked with trying to cut down on variance requests. The reason they have this problem as a City is that the shoreline is highly irregular in many places and the average setbacks works easy-peasy as long as there is a straight piece of shoreline. However, the more nature deviates from that, the more challenging it is for the Commission to fairly regulate what is built next to it. He thinks this is a highly unique situation where the neighbor is not complaining and a highly reputable builder who has been in this area for many decades, as well. For those reasons he would support as approval and if the motion remains as denial he will vote against that. Libby would tend to concur with Erickson, not to read anything additional into the narrative from the Staff, but he thinks the Staff looked at this from a perspective. While he strongly supports the uniformity of the City’s ordinance and the use of the average lakeshore setback as a uniform denominator of how the Commission makes these decisions, he thinks that even though the lagoon is contiguous and is a portion of the lakeshore, he agrees with Erickson that the unique circumstances that the lagoon is separate from the primary lakeshore itself warranted the decision of the Staff to approve this. He would tend to support the Staff’s decision before he would support any other Commissioner’s recommendations. Chair Ressler clarified to Mr. O’Connell that he can take these plans to the City Council as they are regardless of whether the Planning Commission approves or denies. Ms. Curtis can help explain those options, as well. If there is a friendly amendment they wanted to make, they could have both sets of plans ready for that modification if it so goes that direction. He does not want to take public time talking about those options but at least wanted to clarify and simplify. He appreciates the comments made here and thinks the Staff recommendation has some weight to it, as well. He thinks the friendly amendment to make sure that the stair tread does not go further encroaching upon structure that is existing to the lakeshore seems agreeable to the Applicant, and seems agreeable to the spirit of what the rule is in place for. He thinks they are accommodating by allowing additional structure, just not going further than the structure that is here. He appreciates that going on the record for feedback to the Council. Ms. Curtis had a point of clarification. She said that the motion is to deny as proposed, but for the one or two stair treads, is the Commission generally speaking of an approval. She wants to make sure the Applicant understands that it is the stairs that encroach past that pillar that the Commission is not approving, but the rest is agreeable. Kirchner clarified on that, yes, his concern is essentially that final stair tread that appears to extend beyond. His motion for denial is a direct result of the one or two stair treads. Aside from that, in his MINUTES OF THE ORONO PLANNING COMMISSION Monday, November 16, 2020 6:00 o’clock p.m. _____________________________________________________________________________________ motion, he is overall supportive and would recommend approval if those stairs do not extend beyond the furthest lakeward portion of the home. Erickson continued his discussion and said he is uncomfortable in principle of generally denying a proposal that they all agree they are mostly in favor of. That does not seem transparent to him, and seems more manipulative. He would be much more comfortable with a motion to approve and then if they want to add conditions to the approval, he would be open to that. Kirchner asked how approving and adding conditions is any different than a denial and adding a recommendation to that. He said it seems just as manipulative to use words in that manner. Chair Ressler noted he thinks they have gone down a rabbit hole before, because the Commissioners are not here to change the application on the fly, rather they must rule on what they have in front of them today. He thinks the comments and feedback are helpful. Mr. O’Connell said as a homeowner in this process, the optics appear to the homeowners as more positive to have an approval with conditions than a denial. They could be two different means to the same end, but optically, the Council seems more amenable saying you can do this but you have to fix this one thing, versus you can’t do this until you fix this one thing. Chair Ressler does not entirely disagree with Mr. O’Connell, the Commission has been given some direction in the past – and it is nice to have the Mayor in the room – because he is going to lead the next meeting, so he is definitely hearing the feedback. The Commission has had feedback in the past that redesigning applications that are not in front of them become very difficult as far as what the recommendation is. This is very cut and dry; it is going on the record as to what they would be agreeable to and if this motion carries to deny, it is essentially doing it the same way, it is allowing Mr. O’Connell to take that feedback and propose it as that feedback into the Council. VOTE: Ayes 5 (Bollis, Gettman, Kirchner, McCutcheon, Ressler), Nays 2 (Erickson, Libby). Date Application Received: 10/21/2020 Date Application Considered as Complete: 10/21/2020 60-Day Review Period Expires: 12/20/2020 To: Chair Ressler and Planning Commission Members Dustin Rief, City Administrator From: Melanie Curtis, Planner mcc Date: 16 November 2020 Subject: #LA20-000070, Boyer Building Corp. o/b/o Brian O’Connell + Lynne Rasmussen, 3145 North Shore Drive Variance Public Hearing Background The new owners of the home would like to construct an addition to the home and add a new deck. The home addition will replace an existing deck, and the new deck will be positioned to the north of the addition. Due to the configuration of the property and the uniqueness of the neighboring property with the cove inlet on the north side of the subject property, much of the home is lakeward of the average lakeshore setback line. An average lakeshore setback variance is required. Practical Difficulties Analysis Applicant Submittal Information: The applicant has identified the existing home’s footprint, location of the neighboring home, and the exaggerated average lakeshore setback as practical difficulties supporting the requested variance. Additionally, they have provided supporting documentation regarding Practical Difficulties attached as Exhibit B, and should be asked for additional testimony regarding the application. Planning Staff Practical Difficulty Analysis: Regarding practical difficulty, Staff finds that due to the unique nature of the lagoon shoreline which pushes the northern neighbor’s home away from the main shoreline of the lake there are practical difficulties affecting this property. Application Summary: The applicant is requesting approval of an average lakeshore setback variance for a home addition. Staff Recommendation: Planning Department Staff recommends approval. FILE # LA20-000070 16 November 2020 Page 2 of 5 LOT ANALYSIS WORKSHEET Section 78-330 - Setbacks: LR-1B DISTRICT Required Existing Proposed Rear 30’ +150’ No Change North Side 10’ 30.2’ 32.8’ addition North Side Lakeshore (lagoon) 75’ 78’ 78’ addition South Side 10’ 11.3’ No Change Lakeshore 75’ 148’ 151’ addition Average Lakeshore At the point of the greatest encroachment, the house is approximately 50-feet lakeward of the average lakeshore setback line. The 13 foot addition will extend lakeward from the existing home. However due to the orientation the addition will not extend closer to the lake than the existing home. Section 78- 330 - Lot Area/Width: LR-1B DISTRICT Lot Area Lot Width Required 43,560 s.f. (1.0 acres) 140’ Actual 49,320 s.f. (1.13 acre) 117’@ 75’ / 110’ @ OHWL Section 78-1403- Structural Building Coverage: Total Lot Area Total Structural Coverage 49,320 s.f. (1.13 acre) Allowed: 9,846 s.f. (20%) Proposed: 4,524 s.f. (9.1%) Section 78-1700 - Hardcover Calculations: Stormwater Overlay District Tier Total Area in Zone Allowed Hardcover Existing Hardcover Proposed Hardcover Tier 1 49,320 s.f. 12,330 s.f. (25 %) 9,920 s.f. (20.1%) 9,999 s.f. (20.3%) Applicable Regulations: Average Lakeshore Setback Variance (Section 78-1279) The average lakeshore setback line divides the owners’ house in half. The entire lake side of the home is lakeward of the average lakeshore setback line, limiting improvement or expansion opportunities. At the location of the greatest encroachment, the existing house is approximately 50-feet lakeward of the average lakeshore setback line. The proposed 13-foot addition will extend lakeward from the existing home. However, due to the home’s orientation the addition will not extend closer to the lake than the existing home. FILE # LA20-000070 16 November 2020 Page 3 of 5 The applicant’s proposed additions will not encroach into the 75-foot setback, and will be conforming with respect to side yard setback, and hardcover and structural coverage limitations. Governing Regulation: Variance (Section 78-123) In reviewing applications for variance, the Planning Commission shall consider the effect of the proposed variance upon the health, safety and welfare of the community, existing and anticipated traffic conditions, light and air, danger of fire, risk to the public safety, and the effect on values of property in the surrounding area. The Planning Commission shall consider recommending approval for variances from the literal provisions of the Zoning Code in instances where their strict enforcement would cause practical difficulties because of circumstances unique to the individual property under consideration, and shall recommend approval only when it is demonstrated that such actions will be in keeping with the spirit and intent of the Orono Zoning Code. Economic considerations alone do not constitute practical difficulties. Practical difficulties also include but are not limited to inadequate access to direct sunlight for solar energy systems. Variances shall be granted for earth-sheltered construction as defined in Minn. Stat. § 216C.06, subd. 2, when in harmony with this chapter. The board or the council may not permit as a variance any use that is not permitted under this chapter for property in the zone where the affected person's land is located. The board or council may permit as a variance the temporary use of a one-family dwelling as a two-family dwelling. According to MN §462.357 Subd. 6(2) variances shall only be permitted when: 1. The variance is in harmony with the general intent and purpose of the Ordinance. The requested average lakeshore setback variance is in harmony with the Ordinance as the adjacent neighbors’ views of the lake will not be impacted by the improvements. 2. The variance is consistent with the comprehensive plan. The variances resulting in a permit for construction of an addition to an existing single family residence in a residential zone are consistent with the Comprehensive Plan. 3. The applicant establishes that there are practical difficulties. a. The property owner proposes to use the property in a reasonable manner not permitted by the official controls; The request to permit construction of improvements lakeward of the average lakeshore setback appears to be reasonable; the unique lagoon shoreline, location of the neighboring home, and home orientation separate the Property from the adjacent neighbors. b. There are circumstances unique to the property not created by the landowner; The location of the existing home, the orientation and location of the neighboring homes, and the character of the lake shoreline with the lagoon on the north are conditions not created by the landowner; and c. The variance will not alter the essential character of the locality. It does not appear that the requested average lakeshore setback variance to permit an addition to the home will adversely impact views of the lake currently enjoyed by the adjacent property owners or alter the character of the locality. Additionally City Code 78-123 provides additional parameters within which a variance may be granted as follows: 4. Economic considerations alone do not constitute practical difficulties. Economic considerations have not been a factor in the variance approval determination. 5. Practical difficulties also include but are not limited to inadequate access to direct sunlight for solar energy systems. Variances shall be granted for earth-sheltered construction as FILE # LA20-000070 16 November 2020 Page 4 of 5 defined in Minn. Stat. § 216C.06, subd. 2, when in harmony with Orono City Code Chapter 78. This condition is not applicable. 6. The board or the council may not permit as a variance any use that is not permitted under Orono City Code Chapter 78 for property in the zone where the affected person's land is located. This condition is not applicable, as an addition to the home is an allowed use in the LR-1B District. 7. The board or council may permit as a variance the temporary use of a one-family dwelling as a two-family dwelling. This condition is not applicable. 8. The special conditions applying to the structure or land in question are peculiar to such property or immediately adjoining property. The location of the existing home, the orientation and location of the neighboring homes, the lagoon shoreline, and the character of the neighborhood are unique conditions affecting the subject Property and the immediately adjoining properties. 9. The conditions do not apply generally to other land or structures in the district in which the land is located. The location of the existing home, the orientation and location of the neighboring home, and the lagoon shoreline are unique conditions affecting the subject Property. 10. The granting of the application is necessary for the preservation and enjoyment of a substantial property right of the applicant. The applicant states that the variance is necessary to preserve their right to improve their home and property. 11. The granting of the proposed variance will not in any way impair health, safety, comfort or morals, or in any other respect be contrary to the intent of this chapter. Granting the requested variance will not adversely impact health, safety, comfort, or morals; nor will it be contrary to the intent of the Code. 12. The granting of such variance will not merely serve as a convenience to the applicant, but is necessary to alleviate demonstrable difficulty. The application of the average lakeshore setback on this property severely limits the options for expanding and/or improving the home; the granting of the requested variance is necessary to alleviate a practical difficulty resulting from the location of the existing home in relation to the neighboring home to the north, the orientation of the neighboring homes, and the character of the lagoon lakeshore affecting the subject property and the property to the north. The Commission may recommend or Council may impose conditions in granting of variances. Any conditions imposed must be directly related to and must bear a rough proportionality to the impact created by the variance. No variance shall be granted or changed beyond the use permitted in this chapter in the district where such land is located. Public Comments A supportive email was submitted by the neighbor at 3135 North Shore Drive who is the most impacted by the proposed addition. This comment is attached as Exhibit G. Issues for Consideration 1. Does the Planning Commission find that that the property owner proposes to use the property in a reasonable manner which is not permitted by an official control? 2. Does the Planning Commission find that the variance(s ), if granted, will not alter the essential character of the neighborhood? 3. Does the Commission find it necessary to impose conditions in order to mitigate the impacts created by the granting of the requested variance(s)? FILE # LA20-000070 16 November 2020 Page 5 of 5 4. Are there any other issues or concerns with this application? Planning Staff Recommendation Planning Staff recommends approval of the requested variance. List of Exhibits Exhibit A. Application Exhibit B. Practical Difficulties Documentation Form Exhibit C. Proposed Survey Exhibit D. Proposed Plans and Elevations Exhibit E. Aerial Photos Exhibit F. Submitted Hardcover Calculations Exhibit G. Neighbor Comments Exhibit H. Property Owners List Exhibit I. Plat Map AGENDA ITEM Prepared By: J. Barnhart Reviewed By: DJR Approved By: DJR 1. Purpose. To authorize pursuing civil prosecution for zoning code violations at 3895 North Shore Drive. 2. Background. The City has received a number of complaints regarding the condition of the property at 3895 North Shore Drive. Attempts to correct the issue last fall, spring, and summer with the previous owner was slow, and while some progress was made, the issue was forwarded to the prosecuting attorney for criminal prosecution. Late this summer, the bank took ownership of the property, requiring a formal notice of violation being sent to the bank, and a ‘re-start’ of the process. No reply was received. The case was re-referred to the prosecuting attorney. Reviewing the case, it is the opinion of the prosecuting attorney that the Court may not require correction of the issue, even if prosecuted criminally. Further, as a corporate entity, very little can be done to a corporate entity for failing to show up for future court hearings such as issuing a bench warrant. Staff requests authorization to forward this issue to the City Attorney for possible civil enforcement, with the goal that the Court compel clean up, or allow the city to remediate the issues. If authorized, the City Attorney will review the case and seek Council authorization. 3. Staff Recommendation. Staff recommends the Council direct staff to forward the issue to the City Attorney. COUNCIL ACTION REQUESTED City Council should review the pictures and confirm the nuisance Exhibits A. Pictures B. Sections 58-1 (c) and 58-3 Item No.: 26 Date: December 7, 2020 Item Description: Declaration of a Nuisance at 3895 North Shore Drive Presenter: Jeremy Barnhart, AICP Community Development Director Agenda Section: Planning Department Report 3895 North Shore Exhibit A (a) (b) (1) (2) (3) (4) (5) (c) Sec. 58-1. - Maintenance of private property. It is the duty of the owner of every vacant property and the owner and occupant of every occupied property to maintain the property in a neat, clean and presentable manner free of any junk, debris, refuse, litter, dead trees, or noxious weeds, and to remove all other public health or safety hazards from the property. The owner or occupant of every lot or parcel shall regularly cut or otherwise maintain all grass and weeds on the property at a height of not more than six inches, except this provision shall not apply to the following: Publicly owned parks, trails or nature areas. Property actively being farmed or used for agricultural purposes in conformance with chapter 78. Residential properties in excess of one acre gross lot size when located in the RR-1A, RR-1B, LR-1A and RS rural residential zoning districts, provided that such properties or portions of properties shall be maintained in conformance with this subsection upon notice from the city that lack of such maintenance has caused complaints from abutting property owners and is thereby creating a public nuisance. Wetlands vegetation as defined in chapter 78. Grass, weeds or underbrush on any slope in excess of 100 percent (45 degrees). Any violation of this section is declared to be a nuisance and a public safety and welfare hazard, and upon seven days' written notice to the owner, as shown by the records of the office of the county auditor, of private premises on which such material is found or any conditions in violation of this code section exist, the city may remove such matter or correct any conditions in violation, and certify the cost of such removals or corrections as any other special assessment. (Code 1984, § 9.55; Ord. No. 191 2nd series, § 1, 6-14-1999) State Law reference— Minnesota Noxious Weed Law, Minn. Stat. § 18.75 et seq. Sec. 58-3. - Junk cars, furniture, household furnishings and appliances stored on public or private property. It is unlawful to park or store any unlicensed, unregistered or inoperable motor vehicle lacking essential parts, household furnishings or appliances, or parts or components, on any property, public or private, unless housed within a lawfully erected building. Any violation of this section is declared to be a nuisance; and upon seven days' written notice to the owner, as shown by the records in the office of the county auditor, of private premises on which such material is found, the city may remove the vehicle and certify the cost of such removal as any other special assessment. For the purpose of this section, an inoperable motor vehicle shall be defined as lacking parts essential to operation, including but not limited to wheels, tires, motor, drive train, battery; or having two or more flat tires; or having the interior, including the driver's position, used for storage in such a manner that no person can operate the vehicle. 3895 North Shore ExB (Code 1984, § 9.50) State Law reference— Abandoned motor vehicles, Minn. Stat. ch. 168B. AGENDA ITEM Prepared By: J. Barnhart Reviewed By: DJR Approved By: DJR 1. Purpose. To consider authorizing a text amendment that regulates Special Lot Combinations. 2. Background. Special Lot Combinations are agreements between the City and a property owner, where the city agrees to treat two or more lots as one lot (in lieu of formal combination) and the property owner agrees to certain restrictions. In the past, the City has entered into Special Lot Combination agreements with property owners under a few different scenarios, throughout the city. The only reference in the city code of Special Lot Combinations is in the RS zoning district, to combine lots separated by ROW to get to the 5 acre minimum. The most common examples where the city has agreed to a Special Lot Combination include: an individual owns properties, wishing to develop (often a driveway or accessory building), which are separated by a roadway and the County declines combining the two properties into one PID; or an individual who owns multiple properties also wants to construct an improvement on a vacant property which abuts the property with the home (not separated by ROW), such as a driveway or accessory building. By this agreement, the properties are treated and sold as one until such time both parties agree to extinguish the agreement. City Staff recently received two inquiries to complete a special lot combination not in the RS zoning district. Before moving forward on the recent requests, Staff is requesting direction from the Council. If the Council supports the policy of allowing special lot combinations outside of the RS zoning district, staff recommends the Council amend the code to establish standards or conditions as to when such an agreement is appropriate. 3. Staff Recommendation. Staff recommends the Council direct staff to initiate a text amendment providing standards for Special Lot Combination Agreements. COUNCIL ACTION REQUESTED Council should consider providing parameters for special lot combination agreements and direct staff to initiate a text amendment. Exhibits A. Sample Agreement Item No.: 27 Date: December 7, 2020 Item Description: Authorize Text Amendment Related to Special Lot Combinations Presenter: Jeremy Barnhart, AICP Community Development Director Agenda Section: Planning Department Report 1 (reserved for recording information) SPECIAL LOT COMBINATION AGREEMENT THIS INDENTURE is made and entered into this ______ day of ____________, ____, by the CITY OF ORONO, MINNESOTA, a municipal corporation, its successors and assigns (hereinafter referred to as “City”), and _________ and __________, husband and wife (hereinafter referred to as “Owners”). WITNESSETH: WHEREAS, Owners are the fee owners of certain real property in the City of Orono, Hennepin County, Minnesota, legally described as follows (and hereinafter collectively referred to as the “Properties”): PARCEL ID NO. _____ (Torrens) ____________ (hereinafter described as “Parcel A”); and PARCEL ID NO. _______(Torrens) ____________ (hereinafter described as “Parcel B”); and WHEREAS, Owners have applied for a tax parcel combination of the Properties; and WHEREAS, no building permit, variance or conditional use permit shall be issued for any purpose on any record lot composed of two or more tax parcels unless the owner of such record lot shall apply for a formal combination of all commonly owned property into one tax parcel, which shall be executed and filed in the chain of title of each separate parcel; and WHEREAS, notwithstanding the above it is the intent of the Owners and the City that Parcel A and Parcel B are and shall henceforth be continued in common ownership by the same person or persons, and further that Parcel A and Parcel B are intended to be used and/or developed in common by Owners as they were in fact one parcel instead of two. 2 NOW, THEREFORE, for and in consideration of the sum of One Dollar ($1.00) and other valuable consideration, Owners hereby covenant, grant, gift, quit claim and convey to the City the right to restrict, and Owners hereby agree to restrict, limit and preclude the ownership, use, improvement and development of the Properties according to and under the conditions and covenants herein contained, as follows: 1. The City and Owners agree that the Properties shall henceforth be contained in common use and ownership even if recorded as a separate lot or parcel, and that the Properties will not be conveyed, sold, leased or otherwise encumbered except together as if they were a single parcel. 2. Owners may install a driveway on Parcel A that serves Parcel B. Owners may also install driveway monuments on Parcel A. No other accessory structures shall be allowed on Parcel A. 3. The City shall not issue any building permits, zoning variances or conditional use permits for any structure or use on the Properties inconsistent with the covenants contained herein. 4. Owners hereby grant to the City the right to enter upon the Properties for the purposes of inspection and enforcement of the covenants contained herein, and to cause to be lawfully removed from the Properties, without any liability, any structures, uses, substances and natural or unnatural materials inconsistent with the covenants contained herein. 5. In addition to any other remedy the City may have, the covenants and restrictions contained herein may be enforced by injunction. Owners who are in possession of the Properties shall pay to the City all costs and expenses including attorney’s fees incurred by the City in enforcing the terms if this indenture. 6. The parties may mutually agree that the terms and conditions of this indenture may be modified, amended or extinguished and thereafter Parcel A and Parcel B may be separated. 7. Owners agree that recording of this indenture shall not vest any property rights in the Properties and that any zoning of development authorities granted herein or hereinafter because of this indenture shall remain subject to future regulation, modification and/or limitation by the City or other regulatory bodies in accordance with legally applicable and enforceable zoning or other ordinances of the City. 8. The City does not intend that the public should have any interest in the Properties by virtue of this indenture or otherwise, except as hereinabove set forth. 9. All provisions hereof shall run with the land and shall extend to and bind the heirs, successors, representatives, grantees or assigns of the respective parties hereto. 3 CITY OF ORONO BY: ______________________________ Dennis Walsh, Mayor ATTEST: ______________________________ Anna Carlson, City Clerk STATE OF MINNESOTA ) )ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this ____ day of _______________, _____, by Dennis Walsh and Anna Carlson, respectively, the Mayor and City Clerk of the City of Orono, Minnesota, a municipal corporation pursuant to the authority granted by its City Council. ___________________________________ Notary Public 4 OWNERS: _____________________________ Property Owner _____________________________ Property Owner STATE OF MINNESOTA ) )ss. COUNTY OF __________ ) The foregoing instrument was acknowledged before me this ________ day of ____________, _____, by __________ and ______________, husband and wife. ______________________________ Notary Public DRAFTED BY: CAMPBELL KNUTSON Professional Association 317 Eagandale Office Center 1380 Corporate Center Curve Eagan, Minnesota 55121 Telephone: 651-452-5000 SMM/jmo