HomeMy WebLinkAbout01-24-2022 Council PacketAgenda
Council Meeting
Monday, January 24, 2022 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
Approval of Agenda
Consent Agenda
1. City Council Meeting Minutes of January 10, 2022
2. Council Work Session Minutes of January 10, 2022
3. Claims/Bills
4. Approval of 2022 Tobacco Licenses
5. Approval of Rental Licenses
6. Approval of One-Day Gambling License for Urban Boatbuilders – Resolution No. 7245
7. Approval to Hire Resource Management Technician
8. 2022 Engineering and Design Support Approval
9. Approval of Spring Load Restrictions – Resolution No. 7246
10. Approval to Purchase Tee-Mower
11. Authorization for Number of Signatures on Checks
12. LA21-000069 – Jeff Hoxie, Hoxie Homes o/b/o William & Alena Swanson, 4635 Tonkaview Lane,
Variance and ROW Encroachment Agreement – Resolution No. 7247
13. LA20-000001 – Neil Weber o/b/o Orono Apartments LLC, 2475 Kelley Parkway, Extension of
Approval Final Master Development Plan – Resolution No. 7248
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.
Presentation
14. Auditors Presentation
Finance Report
Community Development Report
City Attorney Report
City Administrator/Engineer Report
Mayor/Council Report
Agenda
Council Meeting
Monday, January 24, 2022 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
Adjournment
Upcoming Events
2022
02-07-2022 Park Commission Meeting, Monday, 6:00 p.m.
02-14-2022 City Council Work Session, Monday, 5:00 p.m.
02-14-2022 City Council Meeting, Monday, 6:00 p.m.
02-21-2022 Offices Closed – Official Holiday
02-22-2022 Planning Commission Meeting, Tuesday, 6:00 p.m. (Dennis Walsh)
02-28-2022 City Council Work Session, Monday, 5:00 p.m.
02-28-2022 City Council Meeting, Monday, 6:00 p.m.
03-14-2022 City Council Work Session, Monday, 5:00 p.m.
03-14-2022 City Council Meeting, Monday, 6:00 p.m.
03-21-2022 Planning Commission Meeting, Monday, 6:00 p.m. (Richard F. Crosby II)
03-28-2022 City Council Work Session, Monday, 5:00 p.m.
03-28-2022 City Council Meeting, Monday, 6:00 p.m.
MINUTES OF THE
ORONO CITY COUNCIL MEETING
Monday, January 10, 2022
6:00 o’clock p.m.
_____________________________________________________________________________________
Page 1 of 4
ROLL CALL
The Orono City Council met on the above-mentioned date with the following members present: Mayor
Dennis Walsh, City Council Members Aaron Printup, Richard Crosby III, and Victoria Seals. City
Council Member Matt Johnson was absent. Representing Staff were City Attorney Soren Mattick, City
Administrator/Engineer Adam Edwards, Finance Director Ron Olson, Public Works Superintendent D.J.
Goman, Community Development Director Jeremy Barnhart, and City Planner Melanie Curtis.
Mayor Walsh called the meeting to order at 6:00 p.m., followed by the Pledge of Allegiance.
APPROVAL OF AGENDA
CONSENT AGENDA
1. CITY COUNCIL MEETING MINUTES OF DECEMBER 6, 2021
2. COUNCIL WORK SESSION MINUTES OF DECEMBER 6, 2021
3. SPECIAL CITY COUNCIL MEETING MINUTES OF DECEMBER 13, 2021
4. CLAIMS/BILLS
5. APPROVAL OF RENTAL LICENSES
6. AUTHORIZE LEGAL REVIEW FOR ORONO MUNICIPAL CODE
7. APPROVAL OF SEASONAL EMPLOYEE APPOINTMENTS
8. AMEND 2022 ANNUAL APPOINTMENTS – FIRE ADVISORY BOARD –
RESOLUTION NO. 7244
9. APPROVE PURCHASE OF GPS DATA COLLECTION EQUIPMENT
10. APPROVAL TO ACCEPT DONATION
11. APPROVAL TO ACCEPT DONATION FOR POLICE DEPARTMENT FITNESS AREA
12. APPROVAL TO ACCEPT CHAD STENSRUD RESIGNATION
13. REQUEST TO HIRE FULL-TIME POLICE OFFICER
14. AUTHORIZATION TO PURCHASE 2022 SQUAD CARS
15. APPROVAL OF POSITION DESCRIPTION AND RECRUITING
Crosby moved, Seals seconded, to approve the Consent Agenda as submitted. VOTE: Ayes 4, Nays
0.
PUBLIC COMMENTS
There were no public comments.
MINUTES OF THE
ORONO CITY COUNCIL MEETING
Monday, January 10, 2022
6:00 o’clock p.m.
_____________________________________________________________________________________
Page 2 of 4
PRESENTATION
16. LMCD REPRESENTATIVE UPDATE – RICHIE ANDERSON
Mr. Anderson, 3205 Crystal Bay Road, gave a presentation on behalf of the Lake Minnetonka
Conservation District (LMCD). He noted they had a budget approved the previous year and there will not
be an Aquatic Invasive Species (AIS) levy of $11,500 taxed to the City this year as it will come out of
reserves, which are at approximately $550,000. Mr. Anderson noted the Finance Committee moved to sell
the harvesters and accepted a bid so they are now gone. He shared about the Save the Lake Committee
and noted the funding ($84,000) for two full-time deputies on the lake noting they will take $44,000 out
of reserves to fund this. Mr. Anderson commended the businesses in Orono for donating $32,500 for
2022, and that they are at $78,000 of the $84,000 funding needed for 2022. Mr. Anderson also noted there
is now an AIS Committee, which he is also a part of. The committee has come up with funding for new
projects and will work on Harrison’s Bay, and he is working with some people on Brown’s Bay. Mr.
Anderson closed by expressing his thankfulness to the City Council for sticking with him and supporting
him.
17. RECOGNITION OF POLICE OFFICERS AND FIREFIGHTERS
Police Chief Correy Farniok is present tonight to recognize the outstanding job the police and fire
departments did in severe conditions and also the over-and-above work of officers entering a burning
home to make sure there were no individuals inside the house. He read a statement noting on December
27, 2021 at 11:42 p.m. officers responded to a call on Westwood Road in the City of Minnetonka Beach.
Information was received that an individual had gas and candles and a fire inside the house. Officers
arrived in three minutes and the second floor of the house was fully engulfed with two individuals outside
the house – it was unclear whether anyone was still in the building. Officer Mike Fournier and Sgt. Tim
Sonnek entered the residence to begin looking for possible victims with no one else located. Chief
Farniok noted Long Lake Fire Department responded along with surrounding fire departments and
worked through the night in bitter cold conditions. The house was severely damaged and he wants to
thank the officers that entered the burning building to look for others and to the many surrounding fire
departments that responded.
Mayor Walsh thanked them and noted the City Council is behind them 100%.
Fire Chief Van Eyll thanked the officers and the other fire departments that helped that evening.
FINANCE DIRECTOR REPORT
Finance Director Olson shared slides on screen noting they are at 114% of building permit revenues and
104% of adjusted 2021 revenues as of December 31, 2021.
MINUTES OF THE
ORONO CITY COUNCIL MEETING
Monday, January 10, 2022
6:00 o’clock p.m.
_____________________________________________________________________________________
Page 3 of 4
COMMUNITY DEVELOPMENT REPORT
18. LA21-000069 - JEFF HOXIE, HOXIE HOMES O/B/O WILLIAM & ALENA SWANSON,
4635 TONKAVIEW LANE, VARIANCE AND RIGHT-OF-WAY ENCROACHMENT
AGREEMENT
William Severson, Applicant, was present with Architect Mike Eckert, 1039 Nebraska Ave West, St.
Paul.
Staff presented a summary packet of information. City Planner Curtis stated the City Council reviewed
the application in December and gave direction to the applicant to pull new additions to the second story
away from the property line at least 10 feet. The applicants have redesigned the second story portion of
the addition to follow that guidance and it now meets a 10 foot setback from the property line.
Mayor Walsh appreciates that the applicant listened, went back, and redesigned to stay back 10 feet and
he supports what the applicant has brought tonight.
Printup moved, Crosby seconded, to approve the LA21-000069, Tonkaview Lane variance and to
direct Staff to draft an encroachment agreement the meeting. VOTE: Ayes 4, Nays 0.
CITY ATTORNEY REPORT
Attorney Mattick had nothing to report.
COMMUNITY DEVELOPMENT REPORT
Barnhart noted the department is working through the Big Island dock license through the LMCD, the
Planning Commission will see the park dedication ordinance that the City Council began working through
in November, and he shared that the LMCD is working on some potential code changes to their ordinance
which Barnhart and Edwards will work on a response from Orono.
CITY ADMINISTRATOR/ENGINEER REPORT
Edwards said Staff is using the winter period to work on some human resources initiatives such as
updating the personnel policy and handbook, improving vendors for payroll management, and looking at
a market comparison study for wages in preparation for the collective bargaining agreement negotiations
later in the year. He noted the City Clerk Anna Carlson has been working very hard on getting the
organics program up and running and the City is getting a grant from Hennepin County to do the organics
work.
MINUTES OF THE
ORONO CITY COUNCIL MEETING
Monday, January 10, 2022
6:00 o’clock p.m.
_____________________________________________________________________________________
Page 4 of 4
MAYOR/COUNCIL REPORT
Crosby had a meeting with the Highway Safety Commission for Highway 12 and shared the Jersey
barriers have helped tremendously. He congratulated the police and fire for their response to the house
fire, noting it is a tragedy and he encouraged the community to rally around the family during this time.
Printup noted the previous day was Law Enforcement Appreciation Day and thanked the police and
shared that they are loved. He noted even public works shows up during these emergency scenes such as
the fire and they are all recognized and appreciated.
Seals stated the police chiefs and local mayors got together and she is glad to hear those conversations are
happening. She noted the police are doing their job in crimes, break-ins, etc., and it sometimes gets
missed that they are arresting people; however it is like a revolving door as they keep getting out over and
over again.
Mayor Walsh clarified the police arrest these people, send them to Hennepin County, and the County lets
them back out. This is the circle they are in.
Seals shared that Chief Farniok has stated some of the offenders have been in-and-out 14-plus times. It is
good to see cities stand together and tell them enough is enough.
Mayor Walsh stated the people in Hennepin County – Keith Ellison, Mike Freeman, and the City Council
down there – need to start doing the right thing about enforcing the laws. He stated elections count and
the people can get rid of them. He noted Orono is doing their part and has great police, fire, public works,
and the City Council supports them.
ADJOURNMENT
Crosby moved, Seals seconded, to adjourn the meeting at 6:51 p.m. VOTE: Ayes 4, Nays 0.
ATTEST:
_____________________________________ _______________________________________
Anna Carlson, City Clerk Dennis Walsh, Mayor
Orono City Council
Work Session Minutes
Monday, January 10, 2022
Council Chambers
5:30 p.m.
Page 1 of 1
PRESENT: Mayor Dennis Walsh, Council Members Richard F. Crosby II, Victoria Seals, and
Aaron Printup. Staff members present were City Administrator/Engineer Adam Edwards, and
City Clerk Anna Carlson.
1. City Administrator Review Process Discussion
Mayor Walsh began the discussion explaining why we are reviewing this process. City
Administrator Adam Edwards described the current process used for staff reviews and
asked for input from the City Council.
Walsh asked if the Council would like to use the same process used for other staff
members or if the Council would like to do something more tailored to the City
Administrator position.
There was discussion about the value of the self-assessment section and the current
process laid out in the performance evaluation packet. The overall consensus was geared
towards using the same process used for other staff members.
Edwards noted that the self-assessment is designed for staff to note what they have
worked on or what has been accomplished over the year rather than a list of
achievements.
Walsh asked if Council would consider doing a closed session for an update and how the
City Administrator’s direct reports are doing. The session would be to receive an
overview of how things are going and to evaluate if the right amount of support is being
provided to the organization. This would be a basic outline of staff performance.
Adjourned: 5:39 p.m.
CITY OF ORONO:
ATTEST: ________________________________
Dennis Walsh, Mayor
_________________________________
Anna Carlson, City Clerk
AGENDA ITEM
Prepared By: Ck Reviewed By: RJO Approved By:
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
117927 to118005 and ACH transactions 20130171 to 20130180, totaling $590,783.77.
3. Noteworthy Payments.
Vendor
Amount
Description of Payment
#117949 City of Long
Lake
$113,985.25
Jan 2022 1st qtr fire protection. Total charges for 2022 will
be $455,941.00.
#117965 LeadsOnline
$3,112.00
Yearly Investigation System Service for PD.
#117975 MNSPECT
$28,038.75
December 2021 Inspection services.
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.: 3 Date: January 24, 2022
Item Description: Claims/Bills
Presenter: Carrie Krienke
Accountant
Agenda
Section:
Consent Agenda
City of Orono Check Register - COUNCIL REPORT Page: 1
Check Issue Dates: 1/11/2022 - 1/24/2022 Jan 20, 2022 02:46PM
Check Check Invoice Invoice GL Account Description Department Invoice
Payee Issue Date Number Number Amount
HOME DEPOT CREDIT SERVIC 01/11/2022 117927 7071230 101-43000-226 PPE(HARD HATS)Public Works Department 497.98
Total 117927:497.98
ONYX PERFORMANCE INVEST 01/14/2022 117928 2021-12 101-22205 SECURITY REFUND 57,214.00
Total 117928:57,214.00
ACHEY, PETER 01/24/2022 117929 2022-01 ACH 999-10015 UB REFUND - 4720 BAYSIDE RD 19.29
Total 117929:19.29
ACTIVE911 INC 01/24/2022 117930 365327 101-42110-433 ACTIVE 911 ANNUAL RENEWAL Police Department 70.00
Total 117930:70.00
Advance Auto Parts 01/24/2022 117931 6974-433440 701-49800-222 PARTS 41.98
Advance Auto Parts 01/24/2022 117931 6974-433483 701-49800-222 PARTS 19.78
Total 117931:61.76
AMAZON CAPITAL SERVICE 01/24/2022 117932 1FGG-H4DK-701-49800-222 MAINTENCE 445.29
Total 117932:445.29
ASPEN EQUIPMENT 01/24/2022 117933 10232157 701-49800-221 SNOW PLOW STOPS 225.50
Total 117933:225.50
Aspen Mills 01/24/2022 117934 286304 101-42110-226 VEST AND MOLLE Police Department 899.00
Aspen Mills 01/24/2022 117934 CM4477 101-42110-226 UNIFORM CREDIT Police Department 320.00-
Total 117934:579.00
BARRY RATHBUN 01/24/2022 117935 2022.1 601-49400-226 YEARLY BOOT ALLOWANCE Water 149.99
Total 117935:149.99
BLUE & BROWN BACKGROUND 01/24/2022 117936 2022-01 KIR 101-42110-437 TRAINING - KIRSCHNER (BACKGROND TRAININ Police Department 300.00
City of Orono Check Register - COUNCIL REPORT Page: 2
Check Issue Dates: 1/11/2022 - 1/24/2022 Jan 20, 2022 02:46PM
Check Check Invoice Invoice GL Account Description Department Invoice
Payee Issue Date Number Number Amount
Total 117936:300.00
BLUEBEAM INC 01/24/2022 117937 603007 710-49970-416 BLUEBEAM LICENSING 1,714.00
Total 117937:1,714.00
BOLTON & MENK INC.01/24/2022 117938 0282193 651-49910-304 GENERAL ENGINEERING Storm Water 372.00
BOLTON & MENK INC.01/24/2022 117938 0282194 602-16500 21-014 2021 SANITARY SEWER REHABILITATION 174.00
BOLTON & MENK INC.01/24/2022 117938 0282195 101-43280-304 LA20-000048 SHORELINE ESTATES Special Services 2,312.00
BOLTON & MENK INC.01/24/2022 117938 0282196 101-43280-304 LA21-000014 ORONO CROSSING Special Services 2,062.00
BOLTON & MENK INC.01/24/2022 117938 0282197 101-43280-304 LA20-000030 ORCHARD CREEK Special Services 136.00
BOLTON & MENK INC.01/24/2022 117938 0282198 602-49450-305 GIS MAINTENANCE SEWER Sewer 1,290.00
BOLTON & MENK INC.01/24/2022 117938 0282198 601-49400-305 GIS MAINTENANCE WATER Water 1,520.00
BOLTON & MENK INC.01/24/2022 117938 0282198 651-49910-305 GIS MAINTENANCE STORM SEWER Storm Water 1,220.00
BOLTON & MENK INC.01/24/2022 117938 0282198 101-43170-305 GIS MAINTENANCE GENERAL Engineering 1,375.00
BOLTON & MENK INC.01/24/2022 117938 0282198 101-43050-319 GIS FOR SPRING PARK Public Works - Spring Park 930.00
BOLTON & MENK INC.01/24/2022 117938 0282199 101-43170-304 GENERAL ENGINEERING Engineering 150.00
BOLTON & MENK INC.01/24/2022 117938 0282201 435-48975-304 22-001 2022 STREETS PROJECT 4,853.00
BOLTON & MENK INC.01/24/2022 117938 0282202 408-48800-590 21-040 NAVARRE PARKING LOT 3,227.00
Total 117938:19,621.00
BOYER TRUCKS INC 01/24/2022 117939 003p15974 701-49800-222 TAIL LIGHTS 426 267.09
Total 117939:267.09
BUREAU OF CRIM. APPREHEN 01/24/2022 117940 0000068543 101-42110-311 CJDN FEES Police Department 510.00
Total 117940:510.00
CAMPBELL KNUTSON 01/24/2022 117941 2717-0000G 101-41600-307 GENERAL MATTERS 12/21 Law/Legal Services 560.75
CAMPBELL KNUTSON 01/24/2022 117941 2717-0004G 101-42110-307 POLICE MATTERS 12/21 Police Department 429.00
CAMPBELL KNUTSON 01/24/2022 117941 2717-0201G 101-41600-307 MISC RECORDINGS 12/21 Law/Legal Services 252.90
CAMPBELL KNUTSON 01/24/2022 117941 2717-0740G 101-41600-307 LITIGATION - MERA CLAIM Law/Legal Services 6,398.29
CAMPBELL KNUTSON 01/24/2022 117941 2717-0758G 101-43280-307 LA21-000061 PENCE LANE Special Services 683.68
CAMPBELL KNUTSON 01/24/2022 117941 2717-0770G 101-43280-307 LA21-000069 4635 TONKAVIEW Special Services 137.50
CAMPBELL KNUTSON 01/24/2022 117941 2717-0771G 101-43280-307 LA21-000070 3447 CB ROAD Special Services 55.00
CAMPBELL KNUTSON 01/24/2022 117941 2717-0800G 101-42400-307 STAFF MEETINGS 12/21 Building & Zoning 379.50
CAMPBELL KNUTSON 01/24/2022 117941 2717-0801G 101-41600-307 COUNCIL MEETINGS 12/21 Law/Legal Services 577.50
City of Orono Check Register - COUNCIL REPORT Page: 3
Check Issue Dates: 1/11/2022 - 1/24/2022 Jan 20, 2022 02:46PM
Check Check Invoice Invoice GL Account Description Department Invoice
Payee Issue Date Number Number Amount
CAMPBELL KNUTSON 01/24/2022 117941 2717-0802G 101-42400-307 B&Z ASSISTANCE 12/21 Building & Zoning 49.50
Total 117941:9,523.62
CARGILL SALT 01/24/2022 117942 2906787861 601-49400-216 SALT FOR NAVARRE WATER PLANT Water 5,333.65
Total 117942:5,333.65
CECE S SIGNS 01/24/2022 117943 8921 101-43100-404 GRAPHICS-RISER ROOM Brush Site 50.00
Total 117943:50.00
CENTERPOINT ENERGY 01/24/2022 117944 3001061764 602-16500 GAS LINE - LIFT STATION 1,607.00
Total 117944:1,607.00
Century Link 01/24/2022 117945 WP 2022-01 601-49400-321 WP PHONE/INTERNET- 01/04/2022-02/03/2022 Water 129.44
Total 117945:129.44
CenturyLink 01/24/2022 117946 276550663 614-49840-329 INTERNET 12/8-01/07 LUMEN Cable Franchise 1,056.15
Total 117946:1,056.15
CHUNKS LAKESHORE AUTO 01/24/2022 117947 0017981 101-42110-402 SQUAD MAINTENANCE Police Department 137.93
CHUNKS LAKESHORE AUTO 01/24/2022 117947 0018010 101-42110-402 SQUAD MAINTENANCE Police Department 48.35
CHUNKS LAKESHORE AUTO 01/24/2022 117947 0018016 101-42110-402 SQUAD MAINTENANCE Police Department 67.28
CHUNKS LAKESHORE AUTO 01/24/2022 117947 0018034 101-42110-402 #254 SERVICE Police Department 214.83
Total 117947:468.39
CITY OF BLOOMINGTON 01/24/2022 117948 20246 601-49400-489 WATER TESTING Water 31.50
Total 117948:31.50
CITY OF LONG LAKE 01/24/2022 117949 20210436 101-19999 CSAH 112 TURNBACK P! LANDSCAPING 2,023.09
CITY OF LONG LAKE 01/24/2022 117949 20210438 601-49400-387 4TH QTR 2021 WATER SERVICE Water 1,512.12
CITY OF LONG LAKE 01/24/2022 117949 20210438 602-49450-387 4TH QTR 2021 SEWER SERVICE Sewer 3,072.07
CITY OF LONG LAKE 01/24/2022 117949 20220101 101-42260-318 1ST QTR 2022 FIRE SERVICE Fire Protection Services 113,985.25
City of Orono Check Register - COUNCIL REPORT Page: 4
Check Issue Dates: 1/11/2022 - 1/24/2022 Jan 20, 2022 02:46PM
Check Check Invoice Invoice GL Account Description Department Invoice
Payee Issue Date Number Number Amount
Total 117949:120,592.53
City of Wayzata\DMV 01/24/2022 117950 2022.01 101-42110-441 LICENSE FEES Police Department 60.25
Total 117950:60.25
CITYVIEW PLUMBING & HEATIN 01/24/2022 117951 118529320 601-49400-405 S WATER PLANT REPAIRS Water 389.14
CITYVIEW PLUMBING & HEATIN 01/24/2022 117951 118637345 601-49400-405 SOUTH WATER PLANT PLUMBING REPAIRS Water 1,699.21
Total 117951:2,088.35
COMPASS MINERALS AMERICA 01/24/2022 117952 913537 101-43000-224 NON TREATED ROAD SALT Public Works Department 1,803.75
Total 117952:1,803.75
CONTINENTAL RESEARCH CO 01/24/2022 117953 0032423 101-41900-223 JANITORIAL SUPPLIES Central Services 534.00
Total 117953:534.00
DITTER INC.01/24/2022 117954 i11522 101-42110-404 REPAIR TO BUILDING Police Department 323.46
Total 117954:323.46
DODGE OF BURNSVILLE 01/24/2022 117955 N59158-1 101-42110-550 NEW SQUAD #268 - 2021 DODGE CHARGER Police Department 33.96
Total 117955:33.96
ECM PUBLISHERS INC 01/24/2022 117956 871407 101-42400-340 JANUARY PH Building & Zoning 50.66
Total 117956:50.66
GARY FISCHIER & ASSOC (GFA 01/24/2022 117957 3734268 101-42110-319 PROFESSIONAL SERVICES Police Department 650.00
Total 117957:650.00
GENUINE PARTS COMPANY/NA 01/24/2022 117958 3270-526104 701-49800-221 AUTO MAINTENANCE 8.81
GENUINE PARTS COMPANY/NA 01/24/2022 117958 3270-526170 701-49800-221 AUTO MAINTENANCE 11.46
GENUINE PARTS COMPANY/NA 01/24/2022 117958 3270-526885 701-49800-222 PARTS 409 35.96
GENUINE PARTS COMPANY/NA 01/24/2022 117958 3270-526902 701-49800-221 AUTO MAINTENANCE 39.36
City of Orono Check Register - COUNCIL REPORT Page: 5
Check Issue Dates: 1/11/2022 - 1/24/2022 Jan 20, 2022 02:46PM
Check Check Invoice Invoice GL Account Description Department Invoice
Payee Issue Date Number Number Amount
GENUINE PARTS COMPANY/NA 01/24/2022 117958 3270-526982 701-49800-221 AUTO MAINTENANCE .58-
GENUINE PARTS COMPANY/NA 01/24/2022 117958 3270-527595 701-49800-240 SHOP SUPPLIES 18.22
GENUINE PARTS COMPANY/NA 01/24/2022 117958 3270-528076 701-49800-221 AUTO MAINTENANCE 26.99
GENUINE PARTS COMPANY/NA 01/24/2022 117958 3270-528523 701-49800-221 AUTO MAINTENANCE 16.31
Total 117958:156.53
GOPHER ACE 01/24/2022 117959 9314/1 101-43000-489 MASKING TAPE Public Works Department 4.59
GOPHER ACE 01/24/2022 117959 9337/1 101-43000-224 HARDWARE Public Works Department 8.99
GOPHER ACE 01/24/2022 117959 9338/1 101-43000-224 HARDWARE Public Works Department 17.99
GOPHER ACE 01/24/2022 117959 9354/1 101-45200-223 MISC SUPPLIES Parks 83.98
GOPHER ACE 01/24/2022 117959 9360/1 101-43000-224 HARDWARE Public Works Department 7.47
Total 117959:123.02
GOPHER STATE ONE CALL 01/24/2022 117960 1120652 601-49400-489 SPLIT DISTRIBUTION Water 110.70
GOPHER STATE ONE CALL 01/24/2022 117960 2000652 601-49400-489 SPLIT DISTRIBUTION Water 50.00
Total 117960:160.70
HENNEPIN COUNTY ELECTION 01/24/2022 117961 2021-1 QTR 101-41410-322 2021 PVC'S Elections 454.77
HENNEPIN COUNTY ELECTION 01/24/2022 117961 22MAINT 101-41410-221 VOTING MACHINE MAINTENANCE Elections 2,698.20
Total 117961:3,152.97
HENNEPIN COUNTY SHERIFF 01/24/2022 117962 1000173696 101-41600-309 JAIL BILLS Law/Legal Services 719.73
Total 117962:719.73
JONES, JULIE 01/24/2022 117963 2022-01 101-43000-221 MAIL BOX REIMBURSEMENT Public Works Department 100.00
Total 117963:100.00
KRIENKE, CARRIE 01/24/2022 117964 2021-12 101-41500-331 MILEAGE - BANK DEPOSITS 11/3-12/31/21 Finance Department 78.40
Total 117964:78.40
LeadsOnline 01/24/2022 117965 324759 101-42110-311 INVESTIGATION SYSTEM SERVICE Police Department 3,112.00
City of Orono Check Register - COUNCIL REPORT Page: 6
Check Issue Dates: 1/11/2022 - 1/24/2022 Jan 20, 2022 02:46PM
Check Check Invoice Invoice GL Account Description Department Invoice
Payee Issue Date Number Number Amount
Total 117965:3,112.00
LEOWEBPROTECT.com 01/24/2022 117966 3523 101-42110-319 PROFESSIONAL EXPENSE Police Department 167.94
Total 117966:167.94
MANSFIELD OIL COMPANY 01/24/2022 117967 22907468 101-42110-212 UNLEADED FUEL Police Department 3,531.51
MANSFIELD OIL COMPANY 01/24/2022 117967 22907499 701-49800-212 DIESEL FUEL 1,154.08
MANSFIELD OIL COMPANY 01/24/2022 117967 22907545 101-42110-212 UNLEADED FUEL Police Department 3,193.01
MANSFIELD OIL COMPANY 01/24/2022 117967 22907546 101-45210-212 DIESEL FUEL Golf Course 3,001.26
MANSFIELD OIL COMPANY 01/24/2022 117967 22916082 701-49800-212 DIESEL FUEL 248.75
Total 117967:11,128.61
MCROCK REAL ESTATE GROUP 01/24/2022 117968 2022-01.19 999-10015 UB REFUND - 2585 SHADYWOOD RD 166.73
Total 117968:166.73
METRO CITIES 01/24/2022 117969 960 101-41110-433 2022 MEMBERSHIP Mayor & Council 3,459.00
Total 117969:3,459.00
METROPOLITAN COUNCIL ENVI 01/24/2022 117970 0001134828 602-49450-383 WASTWATER SERVICE 2/2022 Sewer 59,036.55
Total 117970:59,036.55
MINNEAPOLIS OXYGEN COMPA 01/24/2022 117971 00086395 101-43000-415 ACETYLENE, OXYGEN Public Works Department 56.64
MINNEAPOLIS OXYGEN COMPA 01/24/2022 117971 00086396 101-42110-221 MEDICAL OXYGEN Police Department 94.40
MINNEAPOLIS OXYGEN COMPA 01/24/2022 117971 00086397 101-42110-221 MEDICAL OXYGEN Police Department 15.78
Total 117971:166.82
MN DEPT OF PUBLIC SAFETY 01/24/2022 117972 2717000032 601-49400-489 N PLANT EPCRA PROGRAM Water 100.00
MN DEPT OF PUBLIC SAFETY 01/24/2022 117972 2717000042 601-49400-489 SOUTH PLANT EPCRA PROGRAM Water 100.00
MN DEPT OF PUBLIC SAFETY 01/24/2022 117972 2717000062 101-43000-489 PUBLIC WORKS EPCRA PROGRAM Public Works Department 25.00
MN DEPT OF PUBLIC SAFETY 01/24/2022 117972 2722500062 101-43050-319 HAZARDOUS CHEMICAL INVENTORY FEE 2017 Public Works - Spring Park 100.00
Total 117972:325.00
City of Orono Check Register - COUNCIL REPORT Page: 7
Check Issue Dates: 1/11/2022 - 1/24/2022 Jan 20, 2022 02:46PM
Check Check Invoice Invoice GL Account Description Department Invoice
Payee Issue Date Number Number Amount
MN DEPT OF PUBLIC SAFETY A 01/24/2022 117973 2022.01 101-45210-441 ALCOHOL BUYERS CARD Golf Course 20.00
Total 117973:20.00
MN SECRETARY OF STATE NOT 01/24/2022 117974 2021.01 MC 101-42110-441 LICENSES - MCGREGOR Police Department 120.00
Total 117974:120.00
MNSPECT LLC 01/24/2022 117975 8844 101-42400-310 DECEMBER INSPECTION SERVICES Building & Zoning 28,038.75
Total 117975:28,038.75
Morrie's Auto Body & Glass 01/24/2022 117976 28767 101-42110-402 SQUAD MAINTENANCE Police Department 50.00
Total 117976:50.00
MOUND TRUE VALUE 01/24/2022 117977 178904 101-42110-240 MISC SUPPLIES Police Department 14.78
MOUND TRUE VALUE 01/24/2022 117977 179088 101-42110-240 MISC SUPPLIES Police Department 57.98
Total 117977:72.76
MUNICIPAL CODE CORPORATI 01/24/2022 117978 00368476 101-41900-352 CITY CODE UPDATES Central Services 1,468.00
Total 117978:1,468.00
NAVARRE HARDWARE 01/24/2022 117979 335111 101-43000-240 SNOW SHOVEL Public Works Department 43.99
NAVARRE HARDWARE 01/24/2022 117979 335167 101-43000-224 HARDWARE Public Works Department 7.56
NAVARRE HARDWARE 01/24/2022 117979 335173 101-43000-224 HARDWARE Public Works Department 17.99
NAVARRE HARDWARE 01/24/2022 117979 335192 101-43000-224 HARDWARE Public Works Department 65.97
Total 117979:135.51
Newegg Business Inc 01/24/2022 117980 1303677739 710-49970-221 STYLUS PEN 45.83
Newegg Business Inc 01/24/2022 117980 1303677750 710-49970-221 MONITORS 389.96
Newegg Business Inc 01/24/2022 117980 1303681992 710-49970-221 MONITOR - PD 219.99
Newegg Business Inc 01/24/2022 117980 1303682019 101-41900-201 FLASH DRIVES Central Services 33.66
Newegg Business Inc 01/24/2022 117980 1303683917 710-49970-221 EXTERNAL SPEAKER 19.99
Newegg Business Inc 01/24/2022 117980 1303684243 101-41900-201 PLOTTER INK Central Services 217.98
City of Orono Check Register - COUNCIL REPORT Page: 8
Check Issue Dates: 1/11/2022 - 1/24/2022 Jan 20, 2022 02:46PM
Check Check Invoice Invoice GL Account Description Department Invoice
Payee Issue Date Number Number Amount
Total 117980:927.41
OFFICE DEPOT 01/24/2022 117981 2148532080 101-42110-201 OFFICE SUPPLIES Police Department 102.23
OFFICE DEPOT 01/24/2022 117981 2149443280 101-42110-201 OFFICE SUPPLIES Police Department 8.79
OFFICE DEPOT 01/24/2022 117981 2182413640 601-49400-221 FLASHLIGHTS Water 29.99
OFFICE DEPOT 01/24/2022 117981 2182413640 602-49450-221 FLASHLIGHTS Sewer 29.99
OFFICE DEPOT 01/24/2022 117981 2182697940 101-41900-221 CORK BOARDS Central Services 47.98
OFFICE DEPOT 01/24/2022 117981 2182697940 101-41900-201 OFFICE SUPPLIES Central Services 45.62
OFFICE DEPOT 01/24/2022 117981 2182713600 101-41900-221 CORK BOARDS Central Services 16.29
OFFICE DEPOT 01/24/2022 117981 2182713620 101-41900-201 OFFICE SUPPLIES Central Services 10.29
OFFICE DEPOT 01/24/2022 117981 2217823410 101-41900-201 FILE SUPPLIES Central Services 71.15
Total 117981:362.33
On Time Delivery Service Inc.01/24/2022 117982 355603 101-41900-322 DELIVERY - CAMPBELL KNUTSON Central Services 57.18
Total 117982:57.18
ON-SITE MEDICAL SERVICES I 01/24/2022 117983 22069 101-42110-319 PROFESSIONAL SERVICES Police Department 80.00
Total 117983:80.00
Perry's Truck Repair 01/24/2022 117984 53157 701-49800-221 PLOW PARTS 253.11
Perry's Truck Repair 01/24/2022 117984 53199 701-49800-222 PLOW PARTS 515.00
Total 117984:768.11
RITEWAY BUSINESS FORMS 01/24/2022 117985 22-30015 101-41900-201 CHECKS AP Central Services 169.86
Total 117985:169.86
Safety Vehicle Solutions 01/24/2022 117986 2149 701-49800-402 WARNING LIGHTS FOR UNIT 460 1,513.00
Total 117986:1,513.00
SERVPRO #10278 01/24/2022 117987 4398 601-49400-489 2585 CRYSTAL PLACE FLOODING Water 9,467.65
Total 117987:9,467.65
City of Orono Check Register - COUNCIL REPORT Page: 9
Check Issue Dates: 1/11/2022 - 1/24/2022 Jan 20, 2022 02:46PM
Check Check Invoice Invoice GL Account Description Department Invoice
Payee Issue Date Number Number Amount
STREICHERS POLICE EQUIP 01/24/2022 117988 1543235 101-42110-226 MOLLE POUCHES Police Department 134.00
STREICHERS POLICE EQUIP 01/24/2022 117988 1543360 101-42110-226 MOLLE POUCH Police Department 56.00
STREICHERS POLICE EQUIP 01/24/2022 117988 1544160 101-42110-226 UNIFORMS Police Department 99.98
STREICHERS POLICE EQUIP 01/24/2022 117988 1545812 101-42110-226 NEW HIRE EQUIPENT Police Department 704.93
STREICHERS POLICE EQUIP 01/24/2022 117988 1545918 101-42110-226 UNIFROMS Police Department 148.97
Total 117988:1,143.88
THN ENTERPRISES 01/24/2022 117989 2300 101-45200-319 BIG ISLAND MOWER TRANSPORT Parks 1,000.00
Total 117989:1,000.00
THOMAS REUTERS - WEST 01/24/2022 117990 845607376 101-42110-311 DATA PROCESSING Police Department 262.65
Total 117990:262.65
TimeSaver Off Site Secretarial Inc 01/24/2022 117991 M26986 101-41300-319 CC MEETING MINUTES Administration 151.00
Total 117991:151.00
UNIFIRST CO 01/24/2022 117992 0900672194 701-49800-221 SHOP TOWELS - PW 5.90
UNIFIRST CO 01/24/2022 117992 0900672194 101-43000-404 RUGS - PW Public Works Department 19.50
UNIFIRST CO 01/24/2022 117992 0900672194 101-43000-226 UNIFORMS - PW Public Works Department 100.41
Total 117992:125.81
UNIFIRST CORPORATION 01/24/2022 117993 0900668080 701-49800-221 SHOP TOWELS - PW 5.90
UNIFIRST CORPORATION 01/24/2022 117993 0900668080 101-41900-223 MATS - PW Central Services 19.50
UNIFIRST CORPORATION 01/24/2022 117993 0900668080 101-43000-226 UNIFORMS - PW Public Works Department 136.24
UNIFIRST CORPORATION 01/24/2022 117993 0900669456 101-41900-223 MATS - PW Central Services 19.50
UNIFIRST CORPORATION 01/24/2022 117993 0900669456 701-49800-221 SHOP TOWELS - PW 5.90
UNIFIRST CORPORATION 01/24/2022 117993 0900669456 101-43000-226 UNIFORMS - PW Public Works Department 111.49
UNIFIRST CORPORATION 01/24/2022 117993 0900670813 101-41900-223 MATS - PW Central Services 4.50
UNIFIRST CORPORATION 01/24/2022 117993 0900670813 701-49800-221 SHOP TOWELS - PW 5.90
UNIFIRST CORPORATION 01/24/2022 117993 0900670813 101-43000-226 UNIFORMS - PW Public Works Department 125.45
UNIFIRST CORPORATION 01/24/2022 117993 0900673547 101-43000-404 RUGS - PW Public Works Department 19.50
UNIFIRST CORPORATION 01/24/2022 117993 0900673547 701-49800-221 SHOP TOWELS - PW 5.90
UNIFIRST CORPORATION 01/24/2022 117993 0900673547 101-43000-226 UNIFORMS - PW Public Works Department 112.41
City of Orono Check Register - COUNCIL REPORT Page: 10
Check Issue Dates: 1/11/2022 - 1/24/2022 Jan 20, 2022 02:46PM
Check Check Invoice Invoice GL Account Description Department Invoice
Payee Issue Date Number Number Amount
Total 117993:572.19
VARNER MOBILE SERVICES LL 01/24/2022 117994 9120 701-49800-402 REPAIR 427 299.75
Total 117994:299.75
VERIZON WIRELESS 01/24/2022 117995 9896679602 101-41900-321 VERIZON BILL 1/07-02/06/22 Central Services 1,120.14
VERIZON WIRELESS 01/24/2022 117995 9896679602 101-42110-321 VERIZON BILL 1/07-02/06/22 Police Department 1,676.08
VERIZON WIRELESS 01/24/2022 117995 9896679602 101-42400-321 VERIZON BILL 1/07-02/06/22 Building & Zoning 1,331.32
VERIZON WIRELESS 01/24/2022 117995 9896679602 101-43000-321 VERIZON BILL 1/07-02/06/22 Public Works Department 250.07
VERIZON WIRELESS 01/24/2022 117995 9896679602 101-43100-321 VERIZON BILL 1/07-02/06/22 Brush Site 70.02
VERIZON WIRELESS 01/24/2022 117995 9896679602 101-45200-321 VERIZON BILL 1/07-02/06/22 Parks 80.03
VERIZON WIRELESS 01/24/2022 117995 9896679602 101-45210-321 VERIZON BILL 1/07-02/06/22 Golf Course 115.04
VERIZON WIRELESS 01/24/2022 117995 9896679602 601-49400-321 VERIZON BILL 1/07-02/06/22 Water 121.29
VERIZON WIRELESS 01/24/2022 117995 9896679602 602-49450-321 VERIZON BILL 1/07-02/06/22 Sewer 70.02
Total 117995:4,834.01
VESSCO INC 01/24/2022 117996 086221 601-49400-405 INJECTOR REPAIR Water 677.05
Total 117996:677.05
WATCHGUARD VIDEO 01/24/2022 117997 BCMINV001 101-42110-580 BWC AND SQUAD CAMS Police Department 7,691.88
Total 117997:7,691.88
WATER CONSERVATION SVC IN 01/24/2022 117998 11891 101-43050-319 SPRING PARK WATER BREAK Public Works - Spring Park 530.33
Total 117998:530.33
WESTSIDE WHOLESALE TIRE 01/24/2022 117999 898849 101-42110-402 AUTOMOTIVE TIRES Police Department 1,100.88
WESTSIDE WHOLESALE TIRE 01/24/2022 117999 899063 701-49800-222 TIRE 610 694.40
Total 117999:1,795.28
WILLIAMS TOWING 01/24/2022 118000 156391 101-42110-402 SQUAD MAINTENACNE Police Department 155.00
Total 118000:155.00
City of Orono Check Register - COUNCIL REPORT Page: 11
Check Issue Dates: 1/11/2022 - 1/24/2022 Jan 20, 2022 02:46PM
Check Check Invoice Invoice GL Account Description Department Invoice
Payee Issue Date Number Number Amount
WINTER EQUIPMENT COMPAN 01/24/2022 118001 IV50233 701-49800-221 PLOW CUTTING EDGES 2,172.15
Total 118001:2,172.15
Wright-Hennepin Coop Electric 01/24/2022 118002 3502934926 101-43100-381 BRUSH SITE 12/1-01/01 Brush Site 30.82
Wright-Hennepin Coop Electric 01/24/2022 118002 3502934926 101-45210-381 GC SECURITY 02/28/22 Golf Course 41.82
Wright-Hennepin Coop Electric 01/24/2022 118002 3502934926 101-43000-381 ELECTRICAL SERVICE 12/1 - 1-1/22 Public Works Department 242.16
Total 118002:314.80
XCEL ENERGY 01/24/2022 118003 2021.12 Dec 101-41900-381 ELECTRIC 11/22/2021-12/26/2021 Central Services 747.70
XCEL ENERGY 01/24/2022 118003 2021.12 Dec 101-42110-381 ELECTRIC 11/22/2021-12/26/2021 Police Department 2,782.85
XCEL ENERGY 01/24/2022 118003 2021.12 Dec 101-42110-381 ELECTRIC 11/22/2021-12/26/2021 Police Department 39.67
XCEL ENERGY 01/24/2022 118003 2021.12 Dec 101-43000-381 ELECTRIC 11/22/2021-12/26/2021 Public Works Department 183.00
XCEL ENERGY 01/24/2022 118003 2021.12 Dec 101-43000-386 ELECTRIC 11/22/2021-12/26/2021 Public Works Department 2,662.76
XCEL ENERGY 01/24/2022 118003 2021.12 Dec 101-45200-381 ELECTRIC 11/22/2021-12/26/2021 Parks 35.34
XCEL ENERGY 01/24/2022 118003 2021.12 Dec 601-49400-381 ELECTRIC 11/22/2021-12/26/2021 Water 7,027.05
XCEL ENERGY 01/24/2022 118003 2021.12 Dec 602-49450-381 ELECTRIC 11/22/2021-12/26/2021 Sewer 3,749.44
XCEL ENERGY 01/24/2022 118003 2021.12 Dec 101-45210-381 ELECTRIC 11/22/2021-12/26/2021 Golf Course 182.67
Total 118003:17,410.48
OPTUM 01/20/2022 118004 2ND QTR 20 101-41900-319 HSA MAINTENANCE FEE 2ND QTR 2021 Central Services 222.25-
OPTUM 01/24/2022 118004 2ND QTR 20 101-41900-319 HSA MAINTENANCE FEE 2ND QTR 2021 Central Services 222.25
OPTUM 01/20/2022 118004 94-14549 101-41900-319 HSA MAINTENANCE FEE 4TH QTR 2021 Central Services 238.50-
OPTUM 01/24/2022 118004 94-14549 101-41900-319 HSA MAINTENANCE FEE 4TH QTR 2021 Central Services 238.50
Total 118004:.00
OPTUM 01/24/2022 118005 2ND QTR 20 101-41900-319 HSA MAINTENANCE FEE 2ND QTR 2021 Central Services 222.25
OPTUM 01/24/2022 118005 94-14549 101-41900-319 HSA MAINTENANCE FEE 4TH QTR 2021 Central Services 238.50
Total 118005:460.75
ALERUS RETIREMENT AND BE 01/24/2022 201301 C118019 101-41900-319 COBRA ADM FEE - 12/21 Central Services 36.00
Total 20130171:36.00
FURTHER 01/24/2022 201301 01132022 101-21719 FSA 01/14/2022 95.84
City of Orono Check Register - COUNCIL REPORT Page: 12
Check Issue Dates: 1/11/2022 - 1/24/2022 Jan 20, 2022 02:46PM
Check Check Invoice Invoice GL Account Description Department Invoice
Payee Issue Date Number Number Amount
Total 20130172:95.84
ICMA RETIREMENT TRUST 45 01/24/2022 201301 01132022 101-21705 457 - 01/13/2022 1,891.00
Total 20130173:1,891.00
MN PEIP C/O MMB FISCAL SER 01/24/2022 201301 1151021 101-21706 HEALTH INSURANCE 01/2022 56,734.24
MN PEIP C/O MMB FISCAL SER 01/24/2022 201301 1151021 101-42110-135 HEALTH INSURANCE 01/2022 - POLICE CONT Police Department 734.84
MN PEIP C/O MMB FISCAL SER 01/24/2022 201301 1151021 101-15998 COBRA HEALTH INSURANCE 01/2022- NON EMP 3,915.36
MN PEIP C/O MMB FISCAL SER 01/24/2022 201301 1158758 101-42110-135 HEALTH INSURANCE 02/22 - POLICE CONT Police Department 738.84
MN PEIP C/O MMB FISCAL SER 01/24/2022 201301 1158758 101-15998 HEALTH INSURANCE 02/22 - COBRA NON EMPL 3,915.36
MN PEIP C/O MMB FISCAL SER 01/24/2022 201301 1158758 101-21706 HEALTH INSURANCE 02/22 56,730.24
Total 20130174:122,768.88
MN STATE RETIREMENT-HCSP-01/24/2022 201301 01132022 101-21718 PEHSCP - 01/13/2022 23,361.68
Total 20130175:23,361.68
NATIONWIDE RETIREMENT 01/24/2022 201301 01132022RO 101-21705 ROTH - 01/13/2022 175.00
NATIONWIDE RETIREMENT 01/24/2022 201301 01132022US 101-21705 457- 1/13/2022 930.00
Total 20130176:1,105.00
OPTUM 01/24/2022 201301 01072022 101-21717 HSA - 01/13/2022 50.00
OPTUM 01/24/2022 201301 01132022 101-21717 HSA - 01/13/2022 4,945.31
Total 20130177:4,995.31
PSN: PAYMENT SERVICE INVOI 01/24/2022 201301 251620 601-49400-312 WATER FUND PSN FEES Water 324.95
PSN: PAYMENT SERVICE INVOI 01/24/2022 201301 251620 602-49450-312 SEWER FUND PSN FEES Sewer 659.75
PSN: PAYMENT SERVICE INVOI 01/24/2022 201301 251759 101-41900-312 MISC PSN FEES Central Services 2.75
PSN: PAYMENT SERVICE INVOI 01/24/2022 201301 251913 101-41900-312 BUILDING PERMIT PSN FEES Central Services 5.50
Total 20130178:992.95
PUBLIC EMPLOYEES RETIREM 01/24/2022 201301 01132022 101-21704 PERA 12/27/21-01/09/21 43,453.93
City of Orono Check Register - COUNCIL REPORT Page: 13
Check Issue Dates: 1/11/2022 - 1/24/2022 Jan 20, 2022 02:46PM
Check Check Invoice Invoice GL Account Description Department Invoice
Payee Issue Date Number Number Amount
Total 20130179:43,453.93
STATE OF MN DEFERRED COM 01/24/2022 201301 01132022 101-21705 457 - 01/13/2022 1,170.00
Total 20130180:1,170.00
Grand Totals: 590,783.77
AGENDA ITEM
Prepared By: A.Carlson Reviewed By: A.Carlson Approved By:
1.Purpose. The purpose of this action item is to approve the 2021 Tobacco License Renewals.
2.2022 Annual Liquor License Renewals – Applicants.
•Navarre Minnoco
3360 Shoreline Drive
Wayzata, MN 55391
•Holiday Stationstore 2746515
2420 Shadywood Road
Orono, MN 55331
•Holiday Stationstore 2746516
3340 Shoreline Drive
Orono, MN 55391
•Spring Hill Golf Club
725 County Road 6
Wayzata, MN 55391
•Wayzata Country Club
200 Wayzata Blvd.
Wayzata, MN 55391
•Wood & Associates Inc. DBA Navarre
Liquors
3421 Shoreline Drive
Navarre, MN 55392
•C-Store Gas Station
2160 Wayzata Blvd.
Long Lake, MN 55356
3. Staff Recommendation. I recommend approval of the license renewal application listed. The
Applicants have submitted all the requested documents and have met all requirements. The Applications
are on file in the City Clerk’s Office.
COUNCIL ACTION REQUESTED
Motion to approve the above listed Tobacco license renewals for 2022.
Item No.: 4 Date: January 24, 2022
Item Description: Approval of 2022 Tobacco Licenses
Presenter: Anna Carlson,
City Clerk
Agenda
Section:
Consent Agenda
AGENDA ITEM
Prepared By: A. Carlson Reviewed By: A. Carlson Approved By:
1. Purpose. The purpose of this action item is to approve the Rental License for the license period of
January 1, 2022 to December 31, 2023.
2. Rental License Applicant
• Peter Christensen
License # RL21-00033
3. Staff Recommendation. Staff recommends approval of the rental license listed above for the license
period of January 1, 2022 to December 31, 2023. The Rental License Applicant has submitted all of the
requested documents and has met all requirements.
COUNCIL ACTION REQUESTED
Motion to approve the rental license listed above for the license period of January 1, 2022 to December
31, 2023.
Item No.: 5 Date: January 24, 2022
Item Description: Approval of Rental License
Presenter: Anna Carlson,
City Clerk
Agenda
Section:
Consent Agenda
AGENDA ITEM
Prepared By: AMC Reviewed By: AMC Approved By:
1. Purpose. The purpose of this action item is to approve the Gambling Permit for Urban Boatbuilders.
2. Background. The Urban Boatbuilders is planning to host a one-day gambling event on February 6,
2022. Orono City code requires City Council to approve Gambling permits by resolution.
3. Recommendation. The applicants have submitted all the requested documents and have met all
requirements. Staff recommends approval of the gambling permit.
COUNCIL ACTION REQUESTED
Motion to approve Resolution No. 7245
Exhibits
A. Resolution
Item No. 6 Date: January 24, 2022
Item Description: Approval of Lawful Gambling License – Urban Boatbuilders –
Resolution No. 7245
Presenter: Anna Carlson,
City Clerk
Agenda
Section:
Consent Agenda
CITY OF ORONO
RESOLUTION OF THE CITY COUNCIL
NO. 7245
A RESOLUTION APPROVING THE
MINNESOTA LAWFUL GAMBLING APPLICATION FOR EXEMPT PERMIT
OF THE URBAN BOATBUILDERS FOR
A ONE DAY GAMBLING PERMIT
WHEREAS, the Urban Boatbuilders has submitted an application to conduct
lawful gambling activities; and
WHEREAS, the Urban Boatbuilders has proposed to conduct a one day gambling
activity as part of its fundraising activities at the Ice Fishing Extravaganza event to be held on
February 6, 2022; and
WHEREAS, the Urban Boatbuilders is required to obtain approval of the one day
gambling activity from the city in which the activity will occur; and
WHEREAS, the City of Orono has no objection to the conduct of lawful
gambling by the applicant, in accordance with law, at the designated location.
NOW, THEREFORE, BE IT RESOLVED, that the Orono City Council does
hereby approve the application of the Urban Boatbuilders to conduct a one day gambling activity
at the 3400 North Shore Drive, Orono, MN on February 6, 2022.
Adopted at a regular meeting of the Orono City Council this 24th day of January
2022.
____________________________________
ATTEST: Dennis Walsh, Mayor
_______________________________
Anna Carlson, City Clerk
AGENDA ITEM
Prepared By: RJO Reviewed By: A. Carlson Approved By:
1. Purpose. To gain approval of the promotional hire of Anne Hentges as the Resource
Management Technician.
2. Background. The Council approved the filling the position of the Resource Management at
the city council meeting dated 1/10/2022. Anne Hentges, the current Public Works
Support/Utility Billing Specialist has expressed interest in the position. Anne has proven herself
to be a valuable member of the organization. Staff would like to reward Anne with this
promotional opportunity. Per the contract with Local 12, she will be placed at Grade 6 step 7 of
the union pay scale.
3. Funding. There is adequate funding in the 2022 budget for this promotion.
4. Staff Recommendation. Staff recommends the approval promoting Anne Hentges to the
position of Resource Management Technician.
COUNCIL ACTION REQUESTED
Motion to approve promoting Anne Hentges to the position of Resource Management Technician
at Grade 6 step 7 of the Local 12 pay scale.
Item No.: 7 Date: January 24, 2022
Item Description: Hire Resource Management Technician
Presenter: Ron Olson
Finance Director
Agenda
Section:
Consent Agenda
AGENDA ITEM
Prepared By: Reviewed By: A. Carlson Approved By:
1. Purpose. The purpose of this action item is to gain council approval to commence the planning and
engineering of select 2022 Projects.
2. Background. During the capital improvement plan (CIP) process for the 2022 budget several projects
were identified to take place in 2022. Several of these projects require contract design and engineering
support.
3. Scope of Work.
a. Project Scopes of Work.
Project
#
Project Name Project Scope
22-014 Sanitary Sewer
Rehabilitation (CIPP
and Manhole Sealing)
This Sanitary Sewer Rehabilitation project will consist of Cured in Place Pipe
(CIPP) lining of infiltration susceptible sanitary sewer pipes. The purpose of
the project is to reduce Inflow and Infiltration (I&I) into the Sanitary sewer
systems and extend the life to the existing pipes.
22-021 Forcemain
Replacement-
Tonkawa PH3&4
This project will replace aging force main along Tonkawa Road.
22-023 Watermain
Replacement- Along
CSAH 19 South of 15
This project includes the replacement of the water main along CSAH 19
south of CSAH 15.
22-028 North Shore Drive
Ravine Stabilization
The project consists stabilizing a ravine with in the lake access between 4745
and 4731 North Shore Dr.
22-029 SWPPP Update The project consists of updating the City’s SWPPP to comply with the most
recent MS4 permit.
b. Design and Engineering Scopes of Work. The detailed listing for each project is included in
the attached exhibits. In general they all include: Planning and engineering will consist of topographic
surveying, utility inspections, design, permitting, and solicitation of bids for select roads.
4. Cost and Funding.
a. Project Cost and Funding. The table below lists the estimated project costs and funding sources
as outlined in the 2022 CIP.
Project
#
Project Name Project
Cost
Funding Source
22-014 Sanitary Sewer Rehabilitation (CIPP) $ 150,000 Sanitary Sewer Fund
22-021 Forcemain Replacement- Tonkawa PH3&4 $ 355,200 Sanitary & ARP Funds
22-023 Watermain Replacement- Along CSAH 19 South of 15 $ 509,500 Water & ARP Funds
22-028 North Shore Drive Ravine Stabilization $ 96,000 Stormwater Fund
22-029 SWPPP Update $ 20,000 Stormwater Fund
Item No.: 8 Date: January 24, 2022
Item Description: 2022 Engineering and Design Support Approval
Presenter: Adam T. Edwards
City Administrator/City Engineer
Agenda
Section:
Consent Agenda
Prepared By: Reviewed By: A. Carlson Approved By:
b. Engineering and Design Cost. Bolton and Menk prepared the following not to exceed
proposals. The proposals are included as exhibits A-__.
Project
#
Project Description Exhibit Proposal
(Not to Exceed)
22-014 Sanitary Sewer Rehabilitation (CIPP and Manhole Sealing) A $15,000
22-021 Forcemain Replacements Tonkawa PH3&4 B $39,500
22-023 Watermain Replacement along County Road 19 south of 15. C $59,500
22-028 North Shore Drive Ravine Stabilization D $ 11,500
22-029 SWPPP Update E $ 20,200
5. Staff Recommendation. I recommend approval of the proposals from Bolton and Menk and that
Council authorize staff to begin design and planning for these projects.
COUNCIL ACTION REQUESTED:
Motion to direct the City Engineer to move forward with planning for the 2022 Capital Improvement
Project listed and acceptance of the Bolton and Menk’s proposal for design and engineering of the same.
Exhibits
A. Bolton and Menk Proposal- Sanitary Sewer Rehabilitation (CIPP)
B. Bolton and Menk Proposal- Forcemain Replacement- Tonkawa PH3&4
C. Bolton and Menk Proposal- Watermain Replacement- Along CSAH 19 South of 15
D. Bolton and Menk Proposal- North Shore Drive Ravine Stabilization
E. Bolton and Menk Proposal- SWPPP Update
H:\ORNO\2022 New Projects\Fee Estimate - 2022 Sewer Improvements.docx
January 18, 2022
City of Orono
Attn: Adam Edwards
P.O. Box 66
Orono, MN 55323
RE: 2022 Sanitary Sewer Rehabilitation Project
Dear Adam:
As requested, we have prepared a fee estimate for engineering services related to the 20 22 Sanitary Sewer
Rehabilitation Project. It is our understanding that the scope of the project will include sewer lining,
manhole sealing, and top hats on private services lines .
Our scope of services for this project will include the following:
• Reviewing televising information
• Manhole inspections
• Preparation of Plans and Specifications based on aerial photos and City record plan information
• Notification to affected property owners prior to bidding
• Bidding assistance and award recommendations
Based on the above-mentioned scope of work, we propose a not -to-exceed fee of $15,000 . Upon request,
a fee estimate for construction related services will be provided prior to awarding the project.
Please contact me if you have questions or need additional information.
Sincerely,
Bolton & Menk, Inc.
David P. Martini, P.E.
Principal Engineer
H:\ORNO\2022 New Projects\Fee Estimate - Tonkawa Phase Forcemain Replacement .docx
January 18, 2022
City of Orono
Attn: Adam Edwards
PO Box 66
Orono, MN 55323
RE: 2022 Tonkawa Forcemain Replacements Project – Design and Bidding Services
Dear Adam:
As requested, we have prepared a scope of services and design fee estimate for the proposed 2022
Tonkawa Forcemain Replacements Project. It is our understanding that the scope of the project will
include the replacement of approximately 3,700 feet of forcemain along Tonkawa Road. This project is a
continuation of work that began in 2009 and was continued in 2013 and 2021.
Proposed Scope of Engineering Services
To assist the City with this improvement project, Bolton & Menk proposes the following scope of
services:
Topographic Survey – We will document existing conditions and location of the watermain as necessary
to construct the proposed improvements.
Staff Design Meetings – Our team will work with City staff to develop the scope of the project and to get
input on design details. The goal of these meetings is to ensure that the project is designed consistent
with City standards and that the City’s maintenance practices and operations are considered throughout
the design process.
Detailed Design and Bidding – Once the final scope of the project is determined, Bolton & Menk will
prepare detailed plans and specifications and obtain all necessary permits. This work will include
coordination with private property own ers as needed. Upon authorization, the project will be advertised
for competitive bids. Bolton & Menk will administer the bidding process and will ultimately make a
recommendation to the City Council about awarding the project.
Fee Estimate
Based on the scope of services described above, we propose a not -to -exceed fee of $39,500 to be billed on
an hourly basis. Once the Construction Contract is awarded, Bolton & Menk will prepare a separate
scope and fee estimate for construction phase services.
Tonkawa Forcemain Replacements Project
January 18, 2022
Page 2
H:\ORNO\2022 New Projects\Fee Estimate - Tonkawa Phase Forcemain Replacement .docx
Please let me know if you have questions or need additional information
Sincerely,
Bolton & Menk, Inc.
David P. Martini, P.E.
Principal Engineer
H:\ORNO\2022 New Projects\Fee Estimate - CSAH 19 Watermain Replacement .docx
January 18, 2022
City of Orono
Attn: Adam Edwards
PO Box 66
Orono, MN 55323
RE: CSAH 19 Watermain Replacement – Design and Bidding Services
Dear Adam:
As requested, we have prepared a scope of services and design fee estimate for the proposed 2022 CSAH
19 Watermain Replacement Project . It is our understanding that the scope of the project will include the
replacement of watermain along CSAH 19 south of CSAH 15 in two segments (CSAH 15 to Kelly and
Kelly to W. Lafayette.
Proposed Scope of Engineering Services
To assist the city with this improvement project, Bolton & Menk proposes the following scope of
services:
Topographic Survey – We will document existing conditions and location of the watermain as necessary
to construct the proposed improvements.
Staff Design Meetings – Our team will work with City staff to develop the scope of the project and to get
input on design details. The goal of these meetings is to ensure that the project is designed consistent
with City standards and that the City’s maintenance practices and operations are considered throughout
the design process.
Detailed Design and Bidding – Once the final scope of the project is determined, Bolton & Menk will
prepare detailed plans and specifications and obtain all necessary permits. This work will include
coordination with private property own ers as needed. Upon authorization, the project will be advertised
for competitive bids. Bolton & Menk will administer the bidding process and will ultimately make a
recommendation to the City Council about awarding the project.
Fee Estimate
Based on the scope of services described above, we propose a not -to -exceed fee of $59,500 to be billed on
an hourly basis. Once the Construction Contract is awarded, Bolton & Menk will prepare a separate
scope and fee estimate for construction phase services.
CSAH 19 Watermain Replacements Project
January 18, 2022
Page 2
H:\ORNO\2022 New Projects\Fee Estimate - CSAH 19 Watermain Replacement .docx
Please let me know if you have questions or need additional information
Sincerely,
Bolton & Menk, Inc.
David P. Martini, P.E.
Principal Engineer
H:\ORNO\2022 New Projects\Fee Estimate - North Shore Drive Ravine Stabilization.docx
January 18, 2022
City of Orono
Attn: Adam Edwards
P.O. Box 66
Orono, MN 55323
RE: North Shore Drive Ravine Stabilization Project
Dear Adam:
As requested, we have prepared a scope of services and fee estimate for the North Shore Drive Ravine
Stabilization Project. It is our understanding that this project consists of stabilizing the ravine within the
lake access area between 4745 and 4731 Nort h Shore Drive.
Proposed Scope of Engineering Services
To assist the city with this improvement project, Bolton & Menk proposes the following scope of
services:
Project Coordination and Site Assessment
• Coordinate plan objectives and schedule with City staff.
• Conduct site visit and review existing information.
• Survey topography of ravine and adjacent area, including location of trees with diameters 6” or
greater.
• Analyze hydrologic and hydraulic conditions to determine stormwater runoff peak flow rates a nd
volumes.
• Coordinate ravine stabilization solutions with City staff.
• Coordinate and meet with the city as necessary to review plan progress and design
recommendations.
Final Design
• Prepare Construction Plans and Specifications.
• Prepare Engineer’s Estimate of work proposed.
• Coordinate review of plans with City staff and revise as necessary per comments provided.
Bidding Process and Permitting
• Prepare bidding documents and solicit bids from multiple contractors.
• Answer bid questions, meet with contractors, and prepare any necessary addenda.
• Review and tabulate bids.
• Provide a construction contract award recommendation.
• Coordinate plan review and permit requirements with the Minnehaha Creek Watershed District.
North Shore Drive Ravine Stabilization
January 18, 2022
Page 2
H:\ORNO\2022 New Projects\Fee Estimate - North Shore Drive Ravine Stabilization.docx
Assumptions
• No boundary or ALTA surveys will be performed as part of this proposal.
• No construction administration, observation, or staking will be performed as part of this proposal.
Fee Estimate
Based on the scope of services described above, we propose a not -to -exceed fee of $11,500 to be billed on
an hourly basis.
Please let me know if you have questions or need additional information.
Sincerely,
Bolton & Menk, Inc.
David P. Martini, P.E.
Principal Engineer
H:\ORNO\2022 New Projects\Fee Estimate - MS4 Program Updates.docx
January 18, 2022
Adam Edwards
City Administrator / City Engineer
City of Orono
2750 Kelley Parkway
Orono, MN 55356
RE: MS4 Program Updates and Administration
Dear Adam:
As requested, we have prepared a scope of services and fee estimate for completing the MS4 (Municipal
Separate Storm Sewer System) Program updates necessary to meet the new MS4 Permit requirements and
providing annual MS4 Program administration for the city. Based on our understanding of the project,
we propose the following scope of work:
Communication
• Conduct an initial meeting with City staff to review the current MS4 Program and discuss
potential improvements and additions.
• Coordinate and meet with City staff as necessary to review progress toward MS4 Program
updates, discuss interim findings and recommendations, and solicit ideas and insight.
Storm Water Pollution Prevention Program (SWPPP) Updates
• MCM 1: Public Education and Outreach
o Review current Education and Outreach Plan with City to evaluate existing activities and
partnerships.
o Review potential improvements and additions to existing activities and partnerships with
City.
o Coordinate with City to identify stormwater-related issues of high priority.
o Develop educational materials to meet new requirements for distribution. Materials on two
specifically selected stormwater-related issues of high priority, illicit discharg e recognition
and reporting, salting and deicing, and pet waste must be distributed to the target audience
once per year. As part of this proposal, educational material to meet requirements for five
years is included.
o Update Education and Outreach Plan , including target audiences, specific activities,
schedules, and partnerships.
MS4 Program Updates and Administration
January 18, 2022
Page 2
H:\ORNO\2022 New Projects\Fee Estimate - MS4 Program Updates.docx
• MCM 2: Public Participation and Involvement
o Review current public access to SWPPP, methods for public to provide input on adequacy of
SWPPP, and consideration of comments received with City.
o Review potential improvements and additions to public access to SWPPP, methods for public
to provide input on adequacy of SWPPP, and consideration of comments received with City.
o Review current and potentially new public involvement activities with City.
• MCM 3: Illicit Discharge Detection and Elimination (IDDE)
o Review the current IDDE Program with City, including ordinances, inspections, training,
written procedures, enforcement, and documentation.
o Review potential improvements and additions to the IDDE Program with City.
o Provide an ordinance template and coordinate ordinance update for inclusion of regulatory
mechanism that requires owners or custodians of pets to remove and properly dispose of
feces from permittee owned land areas.
o Provide an ordinance template and coordinate ordinance update for inclusion of regulatory
mechanism that requires proper salt storage at commercial, institutional, and non -NPDES
permitted industrial facilities.
o Develop map of high priority areas for illicit discharge inspections to be included in the
City’s GIS.
o Update written procedures for investigation, location, and elimination of illicit discharges,
procedures for spill response, and procedures for enforcement response based on new
requirements and City direction.
o Update the training program based on new requirements and City direction.
• MCM 4: Construction Site Runoff Control
o Review current erosion, sediment, and waste controls with the City, including ordinance s,
inspections, training, written procedures, site plan reviews, enforcement, and documentation.
o Review potential improvements and additions to erosion, sediment, and waste controls with
the city.
o Update written procedures for Site Plan reviews, procedures for construction site inspections,
procedures for receipt and consideration of reports of non -compliance with erosion, sediment,
and/or waste controls from the public, and procedures for enforcement response based on
new requirements and City direction .
• MCM 5: Post-Construction Stormwater Management
o Review current Post-construction Stormwater Management Program with the City, including
ordinances, inspections, training, written procedures, site plan reviews, maintenance
agreements, enforcement, and documentation.
o Review potential improvements and additions to the Post-construction Stormwater
Management Program with the City.
o Update the written procedures for Site Plan reviews, procedures for enforcement response,
and the maintenance agreement template for privately owned stormwater management
facilities necessary to meet governmental requirements based on new requirements and City
direction.
MS4 Program Updates and Administration
January 18, 2022
Page 3
H:\ORNO\2022 New Projects\Fee Estimate - MS4 Program Updates.docx
• MCM 6: Pollution Prevention / Good Housekeeping for Municipal Operations
o Review current Pollution Prevention and Municipal Operation Program with the City,
including the Facility Map, best management practices for municipal operations, the Snow
and Ice Management Policy, training , written procedures for determining treatment pond
effectiveness, Best Management Practice (BMP), outfall and pond inspections, maintenance
activities, and documentation.
o Review potential improvements and additions to the Pollution Prevention and Municipal
Operation Program with the City.
o Update the Facility Map, BMPs for Municipal Operations, the Snow and Ice Management
Policy, written procedures for determining treatment pond effectiveness, and BMP, outfall
and pond inspections based on new requirements and City direction.
o Update the training program based on new requirements and City direction.
o Provide TMDL compliance planning for applicable waste load allocations (WLAs).
Applicable WLAs are for TP on Forest Lake, Hadley Lake, Long Lake, Mooney Lake,
Tanager Lake, Wolsfeld Lake, and Lake Minnetonka’s Jennings Bay , Stubbs Bay, and West
Arm. Compliance planning includes initial determination of compliance or non -compliance.
If WLAs are identified as in non -compliance, a compliance schedule will be provided,
including a list and schedule of BMPs to be applied toward achieving applicable WLAs.
o Develop a mapped inventory of potential areas and sources for bacteria to be included in the
City’s GIS.
o Develop a written plan to prioritize reduction activities to address areas and sources of
bacteria identified in the inventory.
o Assess the City’s Winter Maintenance and Operations Program, including existing
equipment, regular calibration of equipment, operational activities (pre -wetting, increased
plowing prior to deicing, monitoring of road temperatures, etc.), implementation of new or
modified equipment, optimization of mechanical removal procedures, and designation of no
or low salt zones.
Annual MS4 Program Administration
• Document the following information:
o MCM 1: Public Education and Outreach
▪ Description of all specific stormwater-related issues of high priority identified.
▪ Completed Public Education and Outreach Plan.
▪ Activities held, including dates, to reach each target audience.
▪ Educational materials distributed, including dates, to reach each ta rget audience.
o MCM 2: Public Participation and Involvement
▪ Relevant input submitted by public regarding the SWPPP.
▪ City responses to submitted input, including any modifications to the SWPPP.
▪ Dates, locations, and estimated number of participants for events.
▪ Notices for public meetings where opportunity is provided to public to review the
SWPPP and comment on its adequacy.
MS4 Program Updates and Administration
January 18, 2022
Page 4
H:\ORNO\2022 New Projects\Fee Estimate - MS4 Program Updates.docx
o MCM 3: Illicit Discharge Detection and Elimination
▪ Illicit discharge inspections.
▪ Reports of alleged illicit discharges.
▪ Dates and location of discovery of illicit discharges.
▪ Sources of illicit discharges.
▪ Remedial and enforcement actions taken to address illicit discharges.
▪ Training provided to all field staff and staff designated for specific IDDE Prog ram duties.
o MCM 4: Construction Site Runoff Control
▪ Site Plan reviews
▪ Training as it relates to this MCM, including site plan review and inspections.
▪ Enforcement actions taken to address erosion, sediment, and/or waste controls.
o MCM 5: Post Construction Stormwater Management
▪ Site Plan reviews.
▪ Maintenance agreements for privately owned BMPs.
▪ Training as it relates to this MCM, including site plan review and inspections.
▪ Enforcement actions taken to ensure compliance with this MCM.
o MCM 6: Pollution Prevention / Good Housekeeping for Municipal Operations
▪ BMP, outfall, and pond inspections.
▪ Maintenance activities on BMPs, outfalls, and ponds.
▪ Training as it relates to this MCM, including winter maintenance activities
▪ Sediment excavation for City owned ponds.
▪ TMDL compliance progress.
▪ Deicer amount applied each season.
• Provide annual assessment of the Public Education Program, the Public Participation and
Involvement Program, the IDDE Program, the Construction Site Runoff Cont rol Program, the
Post Construction Stormwater Management Program, and the Pollution Prevention and Good
Housekeeping for Municipal Operations Program for 2021.
• Coordinate public meetings with City staff to invite input on adequacy of the City’s MS4
Program and present program updates and activities to the City Council.
• Provide assistance with MS4 Annual Report.
Assumptions
• No training materials will be provided as part of this estimate. A separate Fee Estimate can be
provided for the various trainings required on an as -needed basis if desired by the city.
• Inspections for illicit discharge will not be provided as part of this estimate. A separate Fee
Estimate can be provided for illicit discharge inspections on an as-needed basis if desired by the
city.
• Inspections of structural BMPs, outfalls, and ponds will not be provided as part of this estimate.
A separate estimate can be provided for inspections if desired by the city.
Fee Estimate
Based on the scope of services described above, we propose a not -to -exceed fee of $20,200 to be billed on
an hourly basis.
MS4 Program Updates and Administration
January 18, 2022
Page 5
H:\ORNO\2022 New Projects\Fee Estimate - MS4 Program Updates.docx
Please let me know if you have questions or need additional information.
Sincerely,
Bolton & Menk, Inc.
David P. Martini, P.E.
Principal Engineer
AGENDA ITEM
Prepared By: Reviewed By: A. Carlson Approved By:
1.Purpose. The purpose of this council action is to update the City’s seasonal weight restriction
resolution.
2.Background. Each year during the spring thaw (typically early-March to mid-May), State, County
and local highway authorities impose axle weight restrictions to protect their roadways. The two primary
causes for premature deterioration of asphalt streets are weather and traffic. As the frost is leaving the
ground during the spring thaw, the gravel under the street has high moisture content, which affects the
load carrying capacity of the asphalt pavement. Therefore, in order to prolong the service life of the
streets and highways, axle weight restrictions are imposed during the spring thaw when streets are most
susceptible to damage due to heavy loads. Staff has updated the resolution regarding seasonal weight
restrictions on Orono public city streets that was last adopted in January of 2021 by Resolution.
3.Revisions. No revisions are proposed for 2022.
4.Staff Recommendation. I recommending approval of the attached resolution.
COUNCIL ACTION REQUESTED
Motion to adopt the attached resolution establishing seasonal weight restrictions on Orono public city
streets.
Exhibits
A.Seasonal Weight Restriction Resolution
B.Seasonal Weight Restriction Map
Item No.: 9 Date: January 24, 2020
Item Description: Approval of Spring Load Restrictions – Resolution No. 7246
Presenter: Adam T. Edwards
City Administrator/City Engineer
Agenda
Section:
Consent Agenda
CITY OF ORONO
RESOLUTION OF THE CITY COUNCIL
NO. 7246
Page 1 of 3
A RESOLUTION ESTABLISHING SEASONAL WEIGHT
RESTRICTIONS ON ORONO PUBLIC CITY STREETS
Overview. The City of Orono ordains that axle weight limits are restricted on the following
streets in the City of Orono to protect these streets from damage when road and weather
conditions warrant in accordance with regulations as provided in Minnesota State Statutes
Chapter 169.87. These weight restrictions are in effect during the spring thaw season. Streets
may be posted for weight restrictions any time that road and weather conditions warrant weight
limits to protect streets from damage.
Notification. Impacted Streets will be signposted. The city follows MnDOT scheduling from
imposing and removing spring road weight limit restrictions Dates are posted at -
http://dotapp7.dot.state.mn.us/research/seasonal_load_limits/sllindex.asp or by calling (651) 366-
5400 or toll free at 1-800-723-6543. These dates generally fall between March 1st and May 15th
dependent on weather conditions.
Exemptions. Exceptions to the seasonal load limits in Orono are made for emergency response
vehicles, school buses and emergency utility repair vehicles/equipment.
Refuse Collection. An exemption is provided for refuse collection vehicles to exceed
the posted limits, except no refuse collections vehicles shall be operated during restricted times
where the gross weight on any single axle exceeds seven (7) tons.
Utilities. An exemption is allowed for utility companies providing utility service within
the City when responding to an emergency. An emergency response shall include power outages,
gas leaks, emergency communication, line down or severed, etc.
Septic. An exemption to posted weight limits is also allowed for septic tank service
companies, well drilling and service companies, and companies delivering fuel for heating
purposes. An emergency response is limited to septic or sewer system failures posing an
imminent threat to public health and safety, well failure resulting in loss of water supply, or lack
of heating fuel.
Process. All persons requesting an exemption to the posted weight limits for response to
an emergency situation must notify the Orono Police Department Administrative Office. This
notification must include a description and location of the emergency, the number and weight of
vehicles responding to the emergency, and the route to be used to reach the emergency site. The
City reserves the right to request supporting documentation of the nature and location of the
emergency. All persons responding to emergency situations shall limit travel on seasonal weight
restricted streets to the minimum distance required to reach the site from the closest road that is
not subject to seasonal weight restrictions.
The following streets are limited to a four (4) ton axle per axle weight limit during the period of
spring load restrictions:
Arbor Street
Baldur Park Road
Barrett Avenue
Bayview Place
Bederwood Drive
Birch Lane
Blaine Avenue
Bohn’s Point Lane
Bohn’s Point Road
Brackett’s Point Road
Briar Street
Carman Road
CITY OF ORONO
RESOLUTION OF THE CITY COUNCIL
NO. 7246
Page 2 of 3
Carman Street
Caroline Avenue
Casco Avenue
Casco Circle
Casco Point Road
Cherry Avenue
Cherry Place
Chevy Chase Drive
Chippewa Lane
Concordia Street
Corral Road
Country Club Road
Crestview Avenue
Crystal Avenue
Crystal Bay Road
Crystal Place
Cygnet Place
Dahl Road
Dakota Avenue
Dickenson Street
Dickenson St. Alleys
Dickey Lake Drive
Dunwoody Avenue
East Long Lake Road
Eastlake Street
Eileen Street
Elm Lane
Elm Street
Elmwood Avenue
Ethel Avenue
Fagerness Point Road
Fairview Cottage Lane
Farview Lane
Ferndale Green
Ferndale Road West
Forest Arms Lane
Forest Lake Drive
Forest Lake Landing
Fox Ridge Road
Fox Street
Frederick Street
Garden Court
Glendale Cove Lane
Glendale Drive
Goldenrod Way
Grandview Avenue
Hackberry Hill
Hanlon Avenue
Heritage Drive
Heritage Lane
High Lane
Highwood Lane
Highwood Road
Hunter Drive
Ivy Place
Keene Avenue
Kelly Avenue
Kenwood Way
Lafayette Ridge Court
Lakeview Avenue
Lakeview Terrace
Leaf Street
Linden Avenue
Linden Lane
Livingston Avenue
Loma Linda Avenue
Long Lake Boulevard
Lydiard Avenue
Lydiard Circle
Lyman Avenue
Lyric Avenue
Maple Lane
Maple Place
Mapleridge Lane
Minnetonka Avenue
Minnetonka Highlands
Lane
Minnie Avenue
Myrtlewood Road
Navarre Avenue
Navarre Lane
North Arm Drive
North Arm Drive
West
North Arm Lane
Northern Avenue
Oak Street
Old Beach Road
Old Long Lake Road
Olive Avenue
Orchard Beach Place
Orchard Park Road
Orono Lane
Orono Orchard Road
Park Avenue
Park Drive
Park Lane
Partenwood Lane
Partenwood Road
Pheasant Road
Prospect Avenue
Railroad Avenue
Rest Point Circle
Rest Point Lane
Rest Point Road
Russell Avenue
Sandhill Drive
Shadywood Cir
Shevlin Drive
Smith Avenue
Spates Avenue
Spring Hill Road
Spruce Place
Spruce Way
Starkey Road
Stubbs Bay Road
Tamarack Drive
Togo Road
Tonka Avenue
Tonkaview Lane
Townline Road
Turnham Road
Vine Place
Watertown Road
Wear Circle
Wear Lane North
Webb Street
Webber Hills Road
West Lafayette Road
Westlake Street
Wildhurst Trail
Willow Drive (South
of Hwy 12)
Willowbrook Road
Windjammer Lane
Woodhill Avenue
Wood Duck Trail
The following streets are limited to a four (4) ton axle per axle weight limit year round:
CITY OF ORONO
RESOLUTION OF THE CITY COUNCIL
NO. 7246
Page 3 of 3
Fox Street (between Orono Orchard Road and Brown Road) with the exception of vehicles
servicing properties with their primary access on this section of roadway. The exception is not
valid during the spring load restriction period
The following streets remain at a nine (9) ton per axle weight limit year round:
Brown Road North
Ferndale Road North
Kelley Parkway
McCulley Road
Old Crystal Bay Road
Willow Drive (North of Wayzata
Blvd/CSAH 112)
ATTEST: CITY OF ORONO:
_______________________________ ________________________________
Anna Carlson, City Clerk Dennis Walsh, Mayor
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Spring Weight RestrictionsOrono, MN March 2020
Legend
City Limits Lakes & Ponds
0 3,5 00
FeetSource: Met. Coun cil, City of O ro no, He nnepin County, MnDO T
!I Spring Weight Restrictions
4 Tons per
9 Tons per
4 Tons per Axle
Year R ound
This map reflects restrictions for City of Orono public streets. It does not preclude any further restrictions on roadways belonging to the State of Minnesota, Hennepin County, or any other jurisdiction.
AGENDA ITEM
Prepared By: Joshua Lemons Reviewed By: A. Carlson Approved By:
1. Purpose. The purpose of this action item is to gain approval to purchase 2022 Golf Course Tee
Mower
2. Background. The parks department has budgeted for the replacement of the golf course tee mower
in 2022. The current tee mower is a John Deere purchased in 2004. The mower has required serious
repairs the last few years and continuously leaks hydraulic fluid on the course.
3. Cost. Staff Solicited quotes from two vendors.
Vendor Make Model Quote
MTI Distributing Toro Greensmaster 3150-Q $43,976.18
Frontier Ag and Turf John Deere 2700 PrecisionCut $41,299.14
4. Funding. The Greens mower is will be funded by the Equipment Outlay Fund.
5. Staff Recommendation. I recommend that we purchase the Toro Greensmaster 3150-Q from MTI
Distributing. While the Toro unit is slightly more expensive, it outcompetes the John Deere in almost
every category. Toro is based in Minnesota and parts are affordable and much easier to acquire. The
parts are interchangeable with the Toro greens mower that the golf course already has, this means that we
will always have a cutting unit in case one is down for repairs.
COUNCIL ACTION REQUESTED
Motion to approve the purchase of a Toro Greensmaster for the golf course.
Exhibits:
A. Toro Greensmaster 3150-Q Quote
B. John Deere 2700 Precision Cut Triplex Quote
Item No.: 10 Date: January 24, 2022
Item Description: Authorization to purchase 2022 Golf Course Tee Mower
Presenter: Joshua Lemons
Parks and Golf Superintendent
Agenda
Section:
Consent Agenda
Josh Lemons Quote Expiration Date:1/15/2022
Orono Golf Course
City of Orono
Qty Model
Number Description Quote Price Each Quote Price
Extended
1 04358 Greensmaster 3150-Q $40,898.56 $40,898.56
3 04652 8 Blade Cutting Unit
3 120-9600 High HOC Kit
3 04255 Narrow Wiehle Roller (One roller)
1 04476 3 WD Kit (Without ROPS)
Subtotal $40,898.56
7.525% Sales Tax $3,077.62
Total $43,976.18
Quote is valid for 30 days; pending product availability
Net 30 Terms with qualified credit
New Toro commercial equipment comes with a two-year manufacturer warranty
Equipment delivery and set-up at no additional charge
All commercial products purchased by a credit card will be subject to a 2.5% service fee.
Thank you for the opportunity to submit this quote. If you have any questions, please do not hesitate in contacting us.
Larry Gorman Karen Wangensteen
Outside Sales Representative Inside Sales Representative
612-877-0830 763-592-5643
I commit to the purchase as detailed on the above quote. I reserve the right to opt out of intended purchase at any time prior to scheduled delivery.
Name:
Signature:
Date:
MTI Distributing
Equipment Quote
December 16, 2021
MTI Distributing, Inc. • 4830 Azelia Avenue N. #100 • Brooklyn Center, MN 55429
OMNIA PARTNERS CONTRACT PRICING - CONTRACT #2017025
City of Orono Omnia Partners Member #5053711
Date:20 December 2021 Offer Expires:01 March 2022
Confidential
25800388Quote Id:
Prepared For:
CITY OF ORONO ORONO GOLF COURSE
Prepared By:Jacob Walters
Frontier Ag & Turf
12040 Point Douglas Dr South
Hastings,MN 55033
Tel: 651-437-7747
Fax: 651-437-3483
Salesperson : X ______________Accepted By : X ______________
Confidential
Quote Summary
Prepared For:
CITY OF ORONO ORONO GOLF COURSE
PO BOX 66
CRYSTAL BAY, MN 55323
Prepared By:
Jacob Walters
Frontier Ag & Turf
12040 Point Douglas Dr South
Hastings, MN 55033
Phone: 651-437-7747
Sales tax not included in quote Quote Id:25800388
20 December 2021
20 December 2021
Created On:
Last Modified On:
Expiration Date:01 March 2022
Equipment Summary Suggested List Selling Price Qty Extended
JOHN DEERE 2400 PrecisionCut
Triplex Mower
$ 50,439.30 $ 36,051.51 X 1 =$ 36,051.51
JOHN DEERE 2700 PrecisionCut
Triplex Mower
$ 58,255.00 $ 41,299.14 X 1 =$ 41,299.14
JOHN DEERE 2700 E-Cut Hybrid
Triplex Mower
$ 61,735.00 $ 43,709.36 X 1 =$ 43,709.36
Equipment Total $ 121,060.01
Quote Summary
Equipment Total $ 121,060.01
SubTotal $ 121,060.01
Est. Service Agreement Tax $ 0.00
Total $ 121,060.01
Down Payment (0.00)
Rental Applied (0.00)
Balance Due $ 121,060.01
Selling Equipment
Quote Id: 25800388 Customer:CITY OF ORONO ORONO GOLF COURSE
Confidential
JOHN DEERE 2400 PrecisionCut Triplex Mower
Hours:
Stock Number:
Suggested List
$ 50,439.30
Selling Price
$ 36,051.51
Code Description Qty Unit Extended
1272TC 2400 PrecisionCut Triplex Mower 1 $ 31,599.00 $ 31,599.00
Standard Options - Per Unit
001A United States and Canada 1 $ 0.00 $ 0.00
183B Less JDLink™ Hardware 1 $ 0.00 $ 0.00
0443 All Other Countries (English / Spanish)1 $ 0.00 $ 0.00
1022 Smooth Tires and Wheels
(20x10.00-10, 2 ply)
1 $ 611.00 $ 611.00
1193 Rear Wheel Assist - GRIP All-Wheel
Drive
1 $ 3,338.00 $ 3,338.00
1201 Quick Adjust 5 (QA5) 7-blade Heavy
Section Cutting Units
1 $ 8,803.00 $ 8,803.00
1300 50.8 mm (2-in.) Diameter Machined
Grooved Solid Rollers with Solid
Endcaps
1 $ 643.00 $ 643.00
1400 Cutting Unit ONLY Counterweights 1 $ 243.00 $ 243.00
1602 50.8 mm (2-in.) Diameter Wide Tube /
Hollow Smooth Front Rollers
1 $ 438.00 $ 438.00
2009 Standard Seat 1 $ 575.00 $ 575.00
3200 Cutting Unit Attaching Yokes and
Paddle Clip Style Molded One-Piece
Grass Catchers
1 $ 1,893.00 $ 1,893.00
Standard Options Total $ 16,544.00
Dealer Attachments
BUC10675 LED Work Light Kit 1 $ 631.30 $ 631.30
Dealer Attachments Total $ 631.30
Value Added Services Total $ 0.00
Suggested Price $ 50,439.30
Customer Discounts
Customer Discounts Total $ -14,387.79 $ -14,387.79
Total Selling Price $ 36,051.51
JOHN DEERE 2700 PrecisionCut Triplex Mower
Selling Equipment
Quote Id: 25800388 Customer:CITY OF ORONO ORONO GOLF COURSE
Confidential
Hours:
Stock Number:
Suggested List
$ 58,255.00
Selling Price
$ 41,299.14
Code Description Qty Unit Extended
1232TC 2700 PrecisionCut Triplex Mower 1 $ 40,079.00 $ 40,079.00
Standard Options - Per Unit
001A United States and Canada 1 $ 0.00 $ 0.00
183B Less JDLink™ Hardware 1 $ 0.00 $ 0.00
0443 All Other Countries (English / Spanish)1 $ 0.00 $ 0.00
1022 Smooth Tires and Wheels
(20x10.00-10, 2 ply)
1 $ 611.00 $ 611.00
1193 Rear Wheel Assist - GRIP All-Wheel
Drive
1 $ 3,338.00 $ 3,338.00
1201 Quick Adjust 5 (QA5) 7-blade Heavy
Section Cutting Units
1 $ 8,803.00 $ 8,803.00
1300 50.8 mm (2-in.) Diameter Machined
Grooved Solid Rollers with Solid
Endcaps
1 $ 643.00 $ 643.00
1400 Cutting Unit ONLY Counterweights 1 $ 243.00 $ 243.00
1602 50.8 mm (2-in.) Diameter Wide Tube /
Hollow Smooth Front Rollers
1 $ 438.00 $ 438.00
2009 Standard Seat 1 $ 575.00 $ 575.00
3203 Cutting Unit Attaching Yokes and
Translucent Yellow Grass Catchers
1 $ 1,271.00 $ 1,271.00
9766 LED Work Light Kit 1 $ 589.00 $ 589.00
Standard Options Total $ 16,511.00
Value Added Services Total $ 0.00
Suggested Price $ 58,255.00
Customer Discounts
Customer Discounts Total $ -16,955.86 $ -16,955.86
Total Selling Price $ 41,299.14
JOHN DEERE 2700 E-Cut Hybrid Triplex Mower
Hours:
Stock Number:
Suggested List
$ 61,735.00
Selling Price
$ 43,709.36
Code Description Qty Unit Extended
1242TC 2700 E-Cut Hybrid Triplex Mower 1 $ 43,559.00 $ 43,559.00
Selling Equipment
Quote Id: 25800388 Customer:CITY OF ORONO ORONO GOLF COURSE
Confidential
Standard Options - Per Unit
001A United States and Canada 1 $ 0.00 $ 0.00
183B Less JDLink™ Hardware 1 $ 0.00 $ 0.00
0443 All Other Countries (English / Spanish)1 $ 0.00 $ 0.00
1022 Smooth Tires and Wheels
(20x10.00-10, 2 ply)
1 $ 611.00 $ 611.00
1193 Rear Wheel Assist - GRIP All-Wheel
Drive
1 $ 3,338.00 $ 3,338.00
1201 Quick Adjust 5 (QA5) 7-blade Heavy
Section Cutting Units
1 $ 8,803.00 $ 8,803.00
1300 50.8 mm (2-in.) Diameter Machined
Grooved Solid Rollers with Solid
Endcaps
1 $ 643.00 $ 643.00
1400 Cutting Unit ONLY Counterweights 1 $ 243.00 $ 243.00
1602 50.8 mm (2-in.) Diameter Wide Tube /
Hollow Smooth Front Rollers
1 $ 438.00 $ 438.00
2009 Standard Seat 1 $ 575.00 $ 575.00
3203 Cutting Unit Attaching Yokes and
Translucent Yellow Grass Catchers
1 $ 1,271.00 $ 1,271.00
9766 LED Work Light Kit 1 $ 589.00 $ 589.00
Standard Options Total $ 16,511.00
Value Added Services Total $ 0.00
Suggested Price $ 61,735.00
Customer Discounts
Customer Discounts Total $ -18,025.64 $ -18,025.64
Total Selling Price $ 43,709.36
AGENDA ITEM
Prepared By: RJO Reviewed By: Approved By:
1. Purpose. To gain Council approval to increase the check amount require a third signature
from $5,000 to $25,000.
2. Background. As part of the City’s Financial Internal Controls, the City requires a third
signature on checks greater than $5,000. This has been the amount for many years and as costs
have increased the number of checks requiring a third signature has increased greatly. A
majority of the checks exceeding the limit are now for items like: Electrical Service, Road Salt,
Fuel, Escrow Refunds, Recycling Service, and other routine operating expenditures. The
requirement for a third signature Staff would like to increase the limit for the third signature to
$25,000.
A listing of checks issued in 2021 that were in the amount between $5,000 and $25,000 is
included with this memo so that the Council can see an example of check in the affected range.
3. Cost. There is no cost to this change.
4. Staff Recommendation. Staff recommends the approval of an increase to $25,000 to the
amount requiring a third signature on checks.
COUNCIL ACTION REQUESTED
Motion to approve increasing the amount of checks that require a third signature to $25,000.
Exhibits
A. Check Listing
Item No.: 11 Date: January 24, 2022
Item Description: Authorization for Signatures on Checks
Presenter: Ron Olson
Finance Director
Agenda
Section:
Consent Agenda
Check Listing $5,000 to $25,000
Payee Check Numbe Amount
A 1 ELECTRIC SERVICE OF WACONIA 117749 21,016.85 Casco Point Rink
ABDO EICK & MEYERS LLP 115765 6,000.00 Audit Fees
ADAMS, DON 115584 10,000.00 Escrow Refund
All Flags LLC 116266 6,112.90 Flag Poles
ALTERNATIVE BUSINESS FURNITURE 116174 5,292.86 Conference Room 2 Chairs
ARTCRAFT HOMES, INC 116732 20,000.00 Escrow Refund
ASPEN EQUIPMENT 117495 6,050.00 Snow Plow Replacement
Aspen Mills 116733 5,265.39 Body Armor - PD
Blackstone Contractors LLC 117647 5,635.63 Big Island Project - Retainage
BOLLIS, CHRIS 116790 10,000.00 Escrow Refund
BOLTON & MENK INC.117815 5,799.00 Engineering Services
BOLTON & MENK INC.117164 16,098.50 Engineering Services
BOLTON & MENK INC.115592 18,657.00 Engineering Services
Bratt Tree Company 116541 13,350.00 Tree Removal - ROW and Parks
CAMPBELL KNUTSON 117358 6,000.32 Legal Services
CAMPBELL KNUTSON 116875 6,663.26 Legal Services
CAMPBELL KNUTSON 115671 7,491.55 Legal Services
CAMPBELL KNUTSON 116648 7,739.17 Legal Services
CAMPBELL KNUTSON 116066 8,324.47 Legal Services
CAMPBELL KNUTSON 115871 8,944.33 Legal Services
CAMPBELL KNUTSON 116456 9,334.87 Legal Services
CAMPBELL KNUTSON 116271 10,752.01 Legal Services
CAMPBELL KNUTSON 117709 11,117.52 Legal Services
CAMPBELL KNUTSON 117559 14,176.75 Legal Services
CAMPBELL KNUTSON 117392 15,829.29 Legal Services
CARDMEMBER SERVICE 117498 5,796.16 Misc Purchases/Trainings/food
CARDMEMBER SERVICE 117655 5,967.35 Misc Purchases/Trainings/food
CARDMEMBER SERVICE 115965 6,992.79 Misc Purchases/Trainings/food
CARDMEMBER SERVICE 116794 7,539.02 Misc Purchases/Trainings/food
CARGILL SALT 115673 5,023.06 Softener Salt
CARGILL SALT 116372 5,159.79 Softener Salt
CARGILL SALT 115873 5,184.38 Softener Salt
CARGILL SALT 116544 5,226.08 Softener Salt
CARGILL SALT 116069 5,329.36 Softener Salt
CARGILL SALT 117499 5,340.70 Softener Salt
CARGILL SALT 116651 5,508.09 Softener Salt
CARGILL SALT 115597 6,405.30 Road Salt
CARGILL SALT 117050 6,666.83 Road Salt
CARGILL SALT 117169 7,592.02 Road Salt
CARGILL SALT 116878 9,820.57 Softener Salt and Road Salt
Carmen Bay Lake Improvement District 115778 16,345.19 Payment of LID taxes collected
Carmen Bay Lake Improvement District 116879 17,093.12 Payment of LID taxes collected
CARTEGRAPH 117656 15,764.14 Annual Fees
CENTERPOINT ENERGY MAIN 115967 5,048.84 Gas Service
Check Listing $5,000 to $25,000
CHARLES CUDD 115676 10,000.00 Escrow Refund
CHARLES CUDD 117144 10,000.00 Escrow Refund
CHILDRENS WORKSHOP MONTESSORI 117145 10,000.00 Escrow Refund
CITY OF WAYZATA 116190 5,579.15 Water/Sewer
CITY OF WAYZATA 115971 5,821.45 Water/Sewer
CITY OF WAYZATA 116381 6,832.20 Water/Sewer
CITY OF WAYZATA 115787 6,915.60 Water/Sewer
CITY OF WAYZATA 117661 8,166.35 Water/Sewer
CITY OF WAYZATA 117503 8,647.30 Water/Sewer
CITY OF WAYZATA 116552 8,841.50 Water/Sewer
CITY OF WAYZATA 115600 8,971.80 Water/Sewer
CITY OF WAYZATA 117277 12,062.25 Water/Sewer
CITY OF WAYZATA 117055 12,799.55 Water/Sewer
CITY OF WAYZATA 117133 16,028.50 Water/Sewer
CITY OF WAYZATA 116742 18,285.85 Water/Sewer
CIVIC SYSTEMS LLC 116885 5,482.22 Website
CIVIC SYSTEMS LLC 115681 6,882.00 Accounting Semi Annual Support
CIVIC SYSTEMS LLC 116800 6,882.00 Accounting Semi Annual Support
COMPASS MINERALS AMERICA 115788 5,037.25 Road Salt
COMPASS MINERALS AMERICA 116554 10,100.96 Road Salt
CORE & MAIN 116556 6,445.23 Valve Parts
Corporate 4 Insurance Agency Inc.117714 8,000.00 Annual Insurance Broker Fee
DAVID AHLERS 115603 10,000.00 Escrow Refund
DAVID GUTERMUTH 116959 10,000.00 Escrow Refund
DELTA DENTAL 116196 5,799.84 Dental Insurance Premium
DOCK & LIFT INC 116467 9,032.00 Dock/Swim raft
Donald & Heidi Haberman 116961 9,000.00 Escrow Refund
EKHOLM, PAUL & LAURA 116561 6,365.00 Drainage Settlement
ERIN & TOBY TYLER 117284 10,000.00 Escrow Refund
EVENSON, CHRIS 117407 10,000.00 Escrow Refund
FERGUSON WATERWORKS #2516 117408 6,007.68 Water Meters
FERGUSON WATERWORKS #2516 117064 23,030.00 Water Meters
FRANZEL, JAMES 117576 10,000.00 Escrow Refund
FRANZEL, JAMES 117669 10,000.00 Escrow Refund
GINKEL, JOANN 116808 10,000.00 Escrow Refund
GM CONTRACTING 117412 13,087.42 Tonkawa Forcemain
GRANICUS INC.116287 7,626.43 Streaming Meetings
HARTMAN, KEVIN 116674 9,000.00 Escrow Refund
Henn county Community Corrections & Reh 115800 7,570.60 Sentence To Serve
Hoffman & McNamara Co 116813 5,012.10 CSAH 112 Phase 2 Landscaping
HOLLYWOOD PYROTECHNICS INC 117674 6,700.00 Fireworks -
HOWELL, THOMAS & SHEILA 116573 10,000.00 Escrow Refund
JAQUA, DAVID 117423 9,000.00 Escrow Refund
JIM ROE MUSEUM PLANNING 116101 8,000.00 Big Island Sign - Concept Plan
JIM ROE MUSEUM PLANNING 116575 18,000.00 Big Island Signs
Check Listing $5,000 to $25,000
LAKE MTKA CONSERVATION DIST 115896 14,875.00 LMCD Levy
LAKE MTKA CONSERVATION DIST 116577 14,875.00 LMCD Levy
LAKE MTKA CONSERVATION DIST 116816 14,875.00 LMCD Levy
LAKE MTKA CONSERVATION DIST 117299 14,875.00 LMCD Levy
LANO EQUIPMENT 116818 12,474.44 Trailer
LaPointe Utilities Inc 117377 6,000.00 Escrow Refund
LaPointe Utilities Inc 116756 7,500.00 Escrow Refund
LaPointe Utilities Inc 117363 7,500.00 Escrow Refund
LaPointe Utilities Inc 116819 9,000.00 Escrow Refund
LEAGUE OF MN CITIES 117724 8,698.00 Membership
Lecy Bros Homes & Remodeling 115812 10,000.00 Escrow Refund
LOGIS 117301 11,025.00 Police Application-Network Services
LOGIS 117725 11,025.00 Police Application-Network Services
LOGIS 116821 11,556.25 Police Application-Network Services
LOGIS 115899 11,920.59 Police Application-Network Services
LOGIS 116901 12,264.40 Police Application-Network Services
LOGIS 117592 12,447.50 Police Application-Network Services
LOGIS 117197 12,487.25 Police Application-Network Services
LOGIS 116581 12,498.03 Police Application-Network Services
LOGIS 116105 12,528.37 Police Application-Network Services
LOGIS 116400 13,162.75 Police Application-Network Services
LOGIS 115710 19,922.12 Police Application-Network Services
LOGIS 116213 23,155.01 Police Application-Network Services
MACQUEEN EQUIPMENT 116106 12,532.13 Unit 460 Repairs
MANSFIELD OIL COMPANY 117085 5,103.67 Gasoline and Diesel
MANSFIELD OIL COMPANY 116684 5,305.65 Gasoline and Diesel
MANSFIELD OIL COMPANY 117303 6,639.31 Gasoline and Diesel
MANSFIELD OIL COMPANY 116582 6,847.12 Gasoline and Diesel
MANSFIELD OIL COMPANY 115712 8,115.71 Gasoline and Diesel
MANSFIELD OIL COMPANY 116986 8,341.59 Gasoline and Diesel
MANSFIELD OIL COMPANY 115998 8,442.89 Gasoline and Diesel
MANSFIELD OIL COMPANY 117486 11,758.48 Gasoline and Diesel
MET COUNCIL ENVIRONMENTAL SERV 115902 7,430.15 SAC Remittance
METRO WEST INSPECTIONS SVCS INC 115620 8,591.50 Building Inspection Services
METRO WEST INSPECTIONS SVCS INC 115817 10,937.25 Building Inspection Services
METRO WEST INSPECTIONS SVCS INC 116000 14,585.00 Building Inspection Services
METRO WEST INSPECTIONS SVCS INC 116216 17,172.50 Building Inspection Services
MEYER, CATHERINE 116584 9,000.00 Escrow Refund
MINNESOTA EQUIPMENT 117728 6,422.32 Rogh and Greens Mowere Maint
MINNESOTA EQUIPMENT 115622 7,003.40 Repair Unit 450
Minnesota Topsoil 116827 5,002.50 Black Dirt
Minnesota Topsoil 117598 5,890.00 Yard Wast Haul Out
Minnesota Topsoil 116990 12,960.00 Brush Site Grinding
Minnesota Topsoil 117830 15,280.00 Brush Site Grinding
MISSION COMMUNICATIONS LLC 116303 5,248.80 SCADA Annual Service
Check Listing $5,000 to $25,000
MISSION COMMUNICATIONS LLC 117682 8,308.66 SCADA Annual Service - 2022
MN DEPT OF REVENUE-WIRE 116590 5,673.00 Sales Tax Payment
MN DEPT OF REVENUE-WIRE 20130109 6,771.00 Sales Tax Payment
MN DEPT OF REVENUE-WIRE 116905 7,270.00 Sales Tax Payment
MN DEPT OF REVENUE-WIRE 20130099 7,284.00 Sales Tax Payment
MN STATE RETIREMENT-HCSP-ING 115757 8,347.57 Post Empl Health Savings PR Contributio
MNSPECT LLC 117309 20,992.15 Building Inspection Services
Modern Power Solutions LLC 116829 7,579.00 Generator Annual Maint
Modern Power Solutions LLC 117833 12,250.00 LS #15 Generator
MP Asphalt Maintenance 116995 19,220.00 Crack Sealing
MSI CUSTOM HOMES 117150 10,000.00 Escrow Refund
MTI DISTRIBUTING INC 116222 5,384.31 Golf Reel Sharpening
NAUSS, DARREN 116254 9,775.00 Escrow Refund
NELSON, STEVE 117314 10,000.00 Escrow Refund
NORTON HOMES 117152 10,000.00 Escrow Refund
Oertel Architects, Ltd 117248 12,088.76 PW Building Design
Oertel Architects, Ltd 117001 13,392.50 PW Building Design
Oertel Architects, Ltd 117098 13,419.38 PW Building Design
OLSEN, DALE 117788 10,000.00 Escrow Refund
OMANN CONTRACTING COMPANIES INC 115629 9,170.00 Blacktopping
OPG-3 INC 115824 6,348.00 Laserfich Support
PINNACLE PEAK HOLDING CORP 116529 6,900.24 Wireless Headsets - PW
PROLAWNS 116227 18,373.02 GC Fertilizer/Pesticides
QUALITY FLOW SYSTEMS INC 117455 5,550.17 Chlorine Pump
QUALITY FLOW SYSTEMS INC 116127 6,507.00 LS Repairs
QUALITY FLOW SYSTEMS INC 116705 6,745.00 LS Repairs
QUALITY FLOW SYSTEMS INC 117005 7,802.40 LS Repairs/Mission Unit
QUALITY FLOW SYSTEMS INC 117619 7,811.00 LS Repairs, Controller
QUALITY FLOW SYSTEMS INC 117323 9,497.00 LS Repairs
RANDYS ENVIRONMENTAL SERVICES 116706 10,835.80 Monthly Garbage and Clean Up day
RUDOLPH, KYLE 117795 8,000.00 Escrow Refund
Schneider Excavating and Grading Inc 117216 10,345.51 Walters Point Main Project
SHAUGHNESSY LAWN CARE 116610 6,427.00 Park Mowing
SHAUGHNESSY LAWN CARE 115637 8,800.00 Park Mowing
SHAUGHNESSY LAWN CARE 117108 11,787.00 Park Mowing
SOJOURNER 115732 6,700.00 Annual Service Fee
STEWART TITLE COMPANY 117221 10,000.00 Escrow Refund
STONEWOOD 117798 10,000.00 Escrow Refund
STONEWOOD LLC 115832 10,000.00 Escrow Refund
STREICHERS POLICE EQUIP 117222 9,808.71 Police Uniforms/Equipment
STREICHERS POLICE EQUIP 117626 12,039.75 Police Uniforms/Equipment
STREICHERS POLICE EQUIP 117011 19,982.76 Police Uniforms/Equipment
STREICHERS POLICE EQUIP 115734 20,458.09 Police Uniforms/Equipment
SWANSON HOMES 116767 10,000.00 Escrow Refund
THE GILLESPIE CENTER 116716 9,500.00 Annual Contribution
Check Listing $5,000 to $25,000
THN ENTERPRISES 116508 7,500.00 Thn Application-Network Tervices
THN ENTERPRISES 117480 13,500.00 Thn Application-Network Tervices
TIES, MARK & KRISTI 117379 8,700.00 & Application-Network Tervices
TITAN MACHINERY 117633 6,154.81 Titan Application-Network Tervices
TITAN MACHINERY 117843 20,988.27 Titan Application-Network Tervices
VACKER INC 116852 5,744.00 Vacker Application-Network Vervices
VALLEY RICH CO 117846 8,884.15 Rich Application-Network Vervices
VALLEY RICH CO 117637 9,246.14 Rich Application-Network Vervices
VALLEY RICH CO 116931 10,567.71 Rich Application-Network Vervices
VALLEY RICH CO 115743 13,055.68 Rich Application-Network Vervices
VEACH, JACK 117037 9,000.00 Escrow Refund
VIRIDIAN WEAPON TECHNOLOGIES 116146 22,148.00 Weapon Application-Network Vervices
WASTE MANAGEMENT RECYCLE 117233 15,488.82 Recycling Service
WASTE MANAGEMENT RECYCLE 115745 16,302.00 Recycling Service
WASTE MANAGEMENT RECYCLE 117019 16,433.88 Recycling Service
WASTE MANAGEMENT RECYCLE 115938 16,458.75 Recycling Service
WASTE MANAGEMENT RECYCLE 116026 16,458.75 Recycling Service
WASTE MANAGEMENT RECYCLE 116245 16,458.75 Recycling Service
WASTE MANAGEMENT RECYCLE 116434 16,458.75 Recycling Service
WASTE MANAGEMENT RECYCLE 116623 16,458.75 Recycling Service
WASTE MANAGEMENT RECYCLE 116854 16,458.75 Recycling Service
WATCHGUARD VIDEO 116624 8,510.00 Watchguard Application-Network Wervi
Witt's End Landscaping 117141 11,425.00 End Application-Network Wervices
Witt's End Landscaping 117475 11,425.00 End Application-Network Wervices
WOODDALE BUILDERS 115850 10,000.00 Escrow Refund
XCEL ENERGY 116150 10,411.84 Electrical Service
XCEL ENERGY 116246 10,412.85 Electrical Service
XCEL ENERGY 116437 14,921.00 Electrical Service
XCEL ENERGY 116626 15,431.57 Electrical Service
XCEL ENERGY 115941 15,457.46 Electrical Service
XCEL ENERGY 115751 15,533.51 Electrical Service
XCEL ENERGY 116858 19,911.51 Electrical Service
XCEL ENERGY 117143 20,693.89 Electrical Service
AGENDA ITEM
Prepared By: mcc Reviewed By: J.Barnhart Approved By:
1.Purpose. This application is regarding setback variances and an encroachment agreement to support
additions to the existing home within the front setback.
2.MN§15.99 Application Deadline. The 60-Day review period will expire on March 2, 2022.
3.Background/ Summary. The City Council reviewed this application on January 10th and directed staff to
draft an approval resolution addressing the setback variances requested for Council’s approval. Staff was also
directed to prepare an encroachment agreement to address the non-building improvements within the right-of-
way. Both documents are attached.
4.Staff Recommendation. Staff recommends approval.
COUNCIL ACTIONS REQUESTED
1. Council should make a motion to adopt Resolution No. 7246; and
2. Council should make a motion to approve the encroachment agreement as drafted.
Exhibits
A.Draft Resolution
B.Draft Encroachment Agreement
C.Draft Council Minutes
References
C Packet 01/10/2022
C Packet 12/06/2021
PC Packet 11/15/2021
Item No.: 12 Date: January 24, 2022
Item Description: LA21-000069 – Jeff Hoxie, Hoxie Homes o/b/o William & Alena
Swanson, 4635 Tonkaview Lane, Variance and ROW Encroachment Agreement –
Resolution No. 7247
Presenter: Melanie Curtis
Planner
Agenda
Section:
Consent Agenda
CITY OF ORONO
RESOLUTION OF THE CITY COUNCIL
NO. 7247
1
A RESOLUTION
APPROVING A VARIANCE FROM
MUNICIPAL ZONING CODE
SECTION 78-330
FILE NO. LA21 -000069
WHEREAS, on October 18, 2021, William Severson and Alena Severson, the
owners, (hereinafter the “Applicants”), applied for a variance from the City Code for the property
addressed 4635 Tonkaview Lane and legally described as:
Parcel ID No. 07-117-23-32-0027: Tract D, Registered Land Survey No. 1036,
Hennepin County, Minnesota (COT 1421614), (hereinafter the “Property”);
WHEREAS, the Applicants have made application to the City of Orono for a front
yard setback variance to Orono Municipal Zoning Code Section 78-330 to allow construction of
footprint additions within the 35-foot front yard and a 2nd story addition proposed with a zero lot
line setback within the required 35-foot front yard; and
WHEREAS, on November 15, 2021, 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 15, 2021, the Planning Commission recommended
approval of the requested variance with a vote of 3 to 2; and
WHEREAS, the City Council at a meeting held December 6, 2021, reviewed the
application and the recommendations of the Planning Commission and City staff, and
recommended certain changes to the proposed plans to reduce the impacts on the setbacks; and
WHEREAS, on January 10, 2022, the City Council directed preparation of findings
for approval of the variance based on the Applicants’ revised plan dated 01/04/2022 reflecting a
minimum 10-foot setback from the front property line; and
WHEREAS, on January 10, 2022, the City Council directed preparation of an
Encroachment Agreement to address the non-building structures encroaching within the right-of
-way.
NOW, THEREFORE, BE IT RESOLVED that the City Council of Orono, Minnesota
hereby approves the requested variance as revised and 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. 7247
2
FINDINGS OF FACT:
1. This application was reviewed as Zoning File #LA21-000069. 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 LR-1B One Family Lakeshore Zoning District.
3. The Property contains 0.52 acres in area and has a defined lot width of approximately 228
feet.
4. The Property is within Tier 2 and hardcover is limited to 30% according to the Stormwater
Quality Overlay District.
5. Applicant has applied for the following variance:
a. Front Yard 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 revised, proposed front setback variance reflecting
a 10-foot setback from the front property line is in harmony with the purpose of the
Ordinance as the existing one story home encroaches beyond the property line. The
Applicants’ plan provides separation and minimization of massing when viewed from the
street.
2. “Variances shall only be permitted . . . when the variances are consistent with the
comprehensive plan.” The proposed upward expansion of the home has been moved 10-
feet away from the front lot line to provide separation and minimizes the massing within
such a close proximity to the front property line; the residential improvement is consistent
with the comprehensive plan.
CITY OF ORONO
RESOLUTION OF THE CITY COUNCIL
NO. 7247
3
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 existing home is almost entirely within the required 35-foot front yard setback.
The proposed expansion over the existing structure has been revised to minimize
massing and provide a 10-foot setback from the property line where a 35-foot
setback is required. The proposed improvement provides an expansion
opportunity yet is reasonably scaled within the substandard setback.
b. The plight of the landowner is due to circumstances unique to his property not created
by the landowner.
The property owners did not create the nonconformities. The Applicants stated that
the original location of the home limits opportunities for upward or footprint
expansions. Staff finds the current existing home is nonconforming and can be
maintained. The revised proposal reflecting a 10-foot front yard setback for the 2nd
story is reasonable considering the existing condition; and
c. The variance, if granted, will not alter the essential character of the locality.”
The variance to permit an increase in the overall upward massing of the home
within the front yard setback meeting a 10-foot separation from the front lot line will
not alter the character of the neighborhood.
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 residential improvements are an allowed use in
the LR-1B District.
CITY OF ORONO
RESOLUTION OF THE CITY COUNCIL
NO. 7247
4
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.” True, the unique conditions applying to this
property are specific to the Property.
9. “The conditions do not apply generally to other land or structures in the district in which the
land is located.” The existing condition of the nonconforming home location on the Property
is specific to the Property. The setback is out of character.
10. “The granting of the application is necessary for the preservation and enjoyment of a
substantial property right of the applicant.” The Applicant states the project is necessary for
the preservation of their property right. The revised plan results in a 2nd story expansion of
the living space providing a 10-foot setback which is more reasonable yet would still require
a setback variance.
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.” The proposed
revised 10-foot setback is supported by practical difficulty and is not contrary to the intent
of the zoning chapter.
12. “The granting of such variance will not merely serve as a convenience to the applicant, but
is necessary to alleviate demonstrable difficulty.” The proposed massing encroachment
over the existing footprint has been stepped into the Property 10-feet is not merely a
convenience to the Applicants.
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 78-330 to allow construction of a 2nd floor
addition 10-feet from the Property line and additions to the footprint to expand the home toward
the south, within the 35-foot front yard setback, according to the revised plans and 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 and revised building plans dated
01/04/2022 submitted by the Applicants and annotated by City staff, attached to this
Resolution as Exhibits A & B.
CITY OF ORONO
RESOLUTION OF THE CITY COUNCIL
NO. 7247
5
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 building permit must be
obtained within one year of the date of Council approval, or the variance will expire on that
date (January 24, 2023).
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 24th day of January, 2022.
ATTEST: CITY OF ORONO:
_______________________________ ________________________________
Anna Carlson, City Clerk Dennis Walsh, Mayor
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New living
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220082v2 1
(reserved for recording information)
ENCROACHMENT AGREEMENT
AGREEMENT made this _______ day of _____________, 2022, by and between
the CITY OF ORONO, a Minnesota municipal corporation (“City”), and ALENA C.
SEVERSON and WILLIAM L. SEVERSON, married to each other (“Seversons” or
“Owners”).
1. BACKGROUND. Seversons are the fee owners of certain real property located
in the City of Orono, County of Hennepin, State of Minnesota, legally described as follows:
Parcel ID No. 07-117-23-32-0027
Tract D, Registered Land Survey No. 1036 , Hennepin County,
Minnesota.
(COT 1421614)
having a street address of 4635 Tonkaview Lane, Mound, Minnesota 55364 (“Subject
Property”). The City owns easements for right-of-way, and drainage and utility purposes over
portions of the Subject Property (“Easement Areas”). Seversons have installed, and desire to
retain, the non-building improvements which consist of retaining walls, a gravel and paver
sidewalk, an air conditioning unit, egress window well, deck and steps, and a fence (collectively
220082v2 2
"Improvements") on the Subject Property and which encroach on the City’s Easement Areas as
depicted on the attached Exhibit “A”.
2. ENCROACHMENT AUTHORIZATION. The City hereby approves the
encroachment in its Easement Areas on the Subject Property for the Improvements conditioned
upon removable fence panels in areas where the fence encroaches on existing utilities and/or
installation of gates having a clear span the width of the easement for City access to its Easement
Areas.
3. HOLD HARMLESS AND INDEMNITY. In consideration of being allowed to
encroach in the Easement Areas, Owners, for themselves, their heirs and assigns, hereby agree to
indemnify and hold the City harmless from any damage caused to the Subject Property,
including the Improvements located in the Easement Areas, caused in whole or in part by the
encroachment into the Easement Areas.
4. TERMINATION OF AGREEMENT. The City may, at its sole discretion,
terminate this Agreement at any time if it is reasonably necessary for the City to occupy the
Easement Areas by giving the then owner of the Subject Property thirty (30) days advance
written notice, except that no notice period will be required in the case of an emergency
condition as determined solely by the City and this Agreement may then be terminated
immediately. The property owner shall remove that portion of the Improvement's to the extent it
impacts the Easement Areas to the effective date of the termination of this Agreement. If the
owner fails to do so, the City may remove the Improvements to the extent it impacts the
Easement Areas and charge the cost of removal back to the owner for reimbursement.
5. RECORDING. This Agreement shall run with the land and shall be recorded
against the title to the Subject Property.
220082v2 3
CITY OF ORONO
By ___________________________________
(SEAL) Dennis Walsh, Mayor
And __________________________________
Adam T. Edwards, City Administrator
STATE OF MINNESOTA )
)ss.
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this _______ day of
__________________, 2022, by Dennis Walsh and by Adam T. Edwards, respectively the
Mayor and City Administrator of the City of Orono, a Minnesota municipal corporation, on behalf
of the corporation and pursuant to the authority granted by its City Council.
____________________________________
Notary Public
220082v2 4
PROPERTY OWNERS:
Alena C. Severson
William L. Severson
STATE OF MINNESOTA )
)ss.
COUNTY OF ____________ )
The foregoing instrument was acknowledged before me this ______ day of
_________________, 2022, by Alena C. Severson and William L. Severson, married to each
other.
____________________________________
Notary Public
DRAFTED BY:
CAMPBELL KNUTSON,
Professional Association
Grand Oak Office Center I
860 Blue Gentian Road, Suite 290
Eagan, Minnesota 55121
Telephone: (651) 452-5000
AMP
220082v2 5
EXHIBIT "A"
AGENDA ITEM
Prepared By: mcc Reviewed By: J Barnhart Approved By:
1. Purpose. This application is regarding setback variances and possibly an encroachment agreement to
support additions to the existing home.
2. MN§15.99 Application Deadline. The 60-Day review period will expire on March 2, 2022.
3. Background/ Summary. The City Council reviewed this application in December and gave direction to
the applicants to pull the new additions back from the property line at least 10-feet. The applicants have
redesigned the 2nd story portion of the addition to follow Council’s guidance. The living space additions
as well as the 2nd story roof eave now meet a 10-foot setback from the property line. They are proposing
somewhat of a reverse dormer where the wall of the 2nd floor addition is recessed into the new roofline.
This should reduce the appearance of mass of the home within the setback. However, due to the
architectural challenges resulting from connecting the new roof to the existing roofline, there are two
small, new areas of roof expansion within the 10-foot
setback (shown in yellow on the revised plans). The
remainder of the footprint additions are unchanged.
Refer to the revised plans attached as Exhibit A for
more detail.
4. Public Comment. No comments from the neighbors
have been received.
5. Staff Recommendation. The applicant has made
changes which reasonably meet staff’s initial
recommendation to redesign the project to achieve a
minimum of 10 foot setback from the front property
line for the 2nd story, including overhangs.
COUNCIL ACTIONS REQUESTED
1. Council should make a motion to approve or deny the
application; and
2. Council should make a motion directing staff
regarding an encroachment agreement to address the
non-building improvements within the right-of-way.
West side of the home
Exhibits
Exhibit A. Revised Plans and Elevations – Annotated by Staff
Exhibit B. Draft PC Minutes
Exhibit C. PC Staff Report
References
C Packet 12/06/2021
PC Packet 11/15/2021
Item No.: # Date: 10 January 2022
Item Description: #LA21-000069, Jeff Hoxie - Hoxie Homes o/b/o William + Alena
Severson, 4635 Tonkaview Ln, Variance + ROW Encroachment
Presenter: Melanie Curtis
Planner
Agenda
Section:
Planning Department
Report
MINUTES OF THE
ORONO CITY COUNCIL MEETING
Monday, January 10, 2022
6:00 o’clock p.m.
_____________________________________________________________________________________
COMMUNITY DEVELOPMENT REPORT
18. LA21-000069 - JEFF HOXIE, HOXIE HOMES O/B/O WILLIAM & ALENA SWANSON,
4635 TONKAVIEW LANE, VARIANCE AND RIGHT-OF-WAY ENCROACHMENT
AGREEMENT
William Severson, Applicant, was present with Architect Mike Eckert, 1039 Nebraska Ave West, St.
Paul.
Staff presented a summary packet of information. City Planner Curtis stated the City Council reviewed
the application in December and gave direction to the applicant to pull new additions to the second story
away from the property line at least 10 feet. The applicants have redesigned the second story portion of
the addition to follow that guidance and it now meets a 10 foot setback from the property line.
Mayor Walsh appreciates that the applicant listened, went back, and redesigned to stay back 10 feet and
he supports what the applicant has brought tonight.
Printup moved, Crosby seconded, to approve the LA21-000069, Tonkaview Lane variance and to
direct Staff to draft an encroachment agreement the meeting. VOTE: Ayes 4, Nays 0.
AGENDA ITEM
Prepared By: J. Barnhart Reviewed By: Approved By:
1. Purpose. Consider an extension to the Final Master Plan Approval granted April 13, 2020.
2. Proposal. The applicant proposes a 56 unit 2 ½ story apartment building on a vacant lot at 2475
Kelley Parkway immediately east of the Orono Dentist office. The Council approved the Final Master
Plan for this project in April, 2020. The project was originally approved via resolution 7085. The
approval was to expire in 2021 with no action (a building permit), the applicant requested, and staff
granted an extension in 2021.
Due to issues related to supply and labor costs in 2021, the applicant held off on construction. The
applicant anticipates construction starting spring of 2022 and requests an extension of the approval. The
current extension expires April 13, 2022.
3. Staff Recommendation. Staff recommends approving the extension.
COUNCIL ACTION REQUESTED
City Council should approve the extension, to April 13, 2023.
Exhibits
A. Draft Resolution – Extension
B. Letter of Request
C. Resolution 7085
References
Land Use Case LA20-000001
Item No.: 13 Date: January 24, 2022
Item Description: #LA20-000001, Neil Weber o/b/o Orono Apartments LLC, 2475
Kelley Parkway, Final Master Development Plan Extension –
Resolution 7248
Presenter: Jeremy Barnhart
Community Development Director
Agenda
Section:
Consent
CITY OF ORONO
RESOLUTION OF THE CITY COUNCIL
NO. 7248
Page 1
A RESOLUTION GRANTING
AN EXTEION TO
RPUD MASTER DEVELOPMENT PLAN APPROVAL
FOR ORONO APARTMENTS
PLANNED UNIT DEVELOPMENT NO. 17
FILE #20-000001
WHEREAS, the City of Orono (hereinafter the “City”) is a municipal corporation
organized and existing under the laws of the State of Minnesota; and
WHEREAS, the City Council of the City of Orono (hereinafter “City Council”) has
adopted land development regulations for the orderly, economic and safe development of land within the
City; and
WHEREAS, Orono Apartments LLC is the owner (hereinafter the “Owner”) of the
property at 2745 Kelley Parkway, legally described at Lot 1, Block 2, City of Orono Addition (hereinafter
the “Property”); and
WHEREAS, the City Council approved the master plan for the proposed 56 unit apartment
building via resolution 7085, which had an original expiration date on April 13, 2021
WHEREAS, City Staff granted a one year extension to April 13, 2022 and permitted by
Ordinance
WHEREAS, on January 7, 2022, due to issues related to material supply and labor, the
applicant requested an extension to April 13, 2023.
NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Orono does
hereby grant an extension to Master Development Plan Approval for PUD No. 17, to expire April 13, 2023
unless a building permit has been obtained.
Adopted by the City Council of Orono this 24th day of January, 2022.
ATTEST:
_______________________________ _______________________________
Anna Carlson, City Clerk Dennis Walsh, Mayor
CITY OF ORONO
RESOLUTION OF THE CITY COUNCIL
NO. 7248
Page 2
STATE OF MINNESOTA
COUNTY OF HENNEPIN
The foregoing instrument was acknowledged before me on this ___ day of __________, 2022 by
Dennis Walsh, Mayor of the City of Orono, a Minnesota municipal corporation and said instrument was
executed on behalf of the City.
__________________________________
Notary Public
STATE OF MINNESOTA
COUNTY OF HENNEPIN
The foregoing instrument was acknowledged before me on this day of __________, 2022 by
Anna Carlson, City Clerk of the City of Orono, a Minnesota municipal corporation and said instrument was
executed on behalf of the City.
____________________________________
Notary Public
7 January 2022
RE: Extension of date required to apply for a building permit. - LA21-000075
2745 Kelley Parkway
Jeremy Barnhart
Community Development Director
City of Orono
We are asking for an extension to ensure that we will not miss the deadline for permit
application.
The project is currently out for pricing with the intention of a spring start of construction.
It is a very strange world regarding construction in today’s world . Lead times currently
on precast can be up to 8 months. That makes it very difficult to schedule construction.
Other construction materials are difficult to obtain. Costs are increasing dramatically
almost at a monthly basis. Therefore, delaying construction has consequences as well.
We are balancing all those factors with the intention of starting this coming spring.
We are looking forward to building a quality product for Orono and its residents as soon
as possible.
Sincerely,
Neil Weber, AIA
Weber Architects & Planners
AGENDA ITEM
Prepared By: RJO Reviewed By: A. Carlson Approved By:
1. Purpose. The purpose of this item is to publically present the 2020 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 2020 audit results.
COUNCIL ACTION REQUESTED:
No action is required. This is an information item only.
Exhibits
A. 2020 Draft CAFR
B. Management Communication Letter
C. Other Required Reports
Legal Compliance
Internal Control
Item No.: 14 Date: January 24, 2022
Item Description: 2020 Comprehensive Annual Financial Report Presentation
Presenter: Ron Olson,
Finance Director
Agenda
Section:
Presentation
ANNUAL COMPREHENSIVE
FINANCIAL REPORT
FOR THE YEAR ENDED
DECEMBER 31, 2020
CITY OF ORONO,
MINNESOTA
THIS PAGE IS LEFT
BLANK INTENTIONALLY
CITY OF ORONO, MINNESOTA
ANNUAL COMPREHENSIVE
FINANCIAL REPORT
FOR THE YEAR ENDED
DECEMBER 31, 2020
REPORT PREPARED BY:
FINANCE DEPARTMENT
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City of Orono, Minnesota
Annual Comprehensive Financial Report
Table of Contents
For the Year Ended December 31, 2020
Page No.
Introductory Section
Organization Chart 10
Elected and Appointed Officials 11
Financial Section
Independent Auditor’s Report 15
Management’s Discussion and Analysis 19
Basic Financial Statements
Government-wide Financial Statements
Statement of Net Position 33
Statement of Activities 34
Fund Financial Statements
Governmental Funds
Balance Sheet 38
Reconciliation of the Balance Sheet to the Statement of Net Position 39
Statement of Revenues, Expenditures and Changes in Fund Balances 40
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances
to the Statement of Activities 41
General Fund
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 43
Proprietary Funds
Statement of Net Position 44
Statement of Revenues, Expenses and Changes in Net Position 47
Statement of Cash Flows 48
Notes to the Financial Statements 51
Required Supplementary Information
Schedule of Employer’s Share of Public Employees Retirement Association Net Pension Liability -
General Employees Retirement Fund 82
Schedule of Employer’s Public Employees Retirement Association Contributions -
General Employees Retirement Fund 82
Notes to the Required Supplementary Information - General Employee Retirement Fund 83
Schedule of Employer’s Share of Public Employees Retirement Association Net Pension Liability -
Public Employees Police and Fire Fund 85
Schedule of Employer’s Public Employees Retirement Association Contributions -
Public Employees Police and Fire Fund 85
Notes to the Required Supplementary Information - Public Employees Police and Fire Fund 86
Schedule of Changes in the City’s Total OPEB Liability and Related Ratios 88
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City of Orono, Minnesota
Annual Comprehensive Financial Report
Table of Contents (Continued)
For the Year Ended December 31, 2020
Page No.
Combining and Individual Fund Financial Statements and Schedules
Nonmajor Governmental Funds
Combining Balance Sheet 92
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 93
Nonmajor Special Revenue Funds
Subcombining Balance Sheet 96
Subcombining Statement of Revenues, Expenditures and Changes in Fund Balances 98
Nonmajor Debt Service Funds
Subcombining Balance Sheet 102
Subcombining Statement of Revenues, Expenditures and Changes in Fund Balances 103
Nonmajor Capital Projects Fund
Subcombining Balance Sheet 106
Subcombining Statement of Revenues, Expenditures and Changes in Fund Balances 108
Nonmajor Proprietary Funds
Combining Statement of Net Position 112
Combining Statement of Revenues, Expenses and Changes in Net Position 113
Combining Statement of Cash Flows 114
General Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 115
Internal Service Funds
Combining Statement of Net Position 118
Combining Statement of Revenues, Expenses and Changes in Net Position 119
Combining Statement of Cash Flows 120
Statistical Section (Unaudited)
Financial Trends
Summary Financial Report - Revenues and Expenditures for General Operations - Governmental Funds 125
Net Position by Component 126
Changes in Net Position 128
Fund Balances of Governmental Funds 132
Changes in Fund Balances of Governmental Funds 134
Revenue Capacity
Assessed Value and Estimated Actual Value of Taxable Property 136
Property Tax Rates - Direct and Overlapping Governments 137
Principal Property Taxpayers 138
Property Tax Levies and Collections 139
Debt Capacity
Ratios of Outstanding Debt by Type 140
Ratios of General Bonded Debt Outstanding 141
Direct and Overlapping Governmental Activities Debt 143
Legal Debt Margin Information 144
Pledged Revenue Coverage 146
Demographic and Economic Information
Demographic and Economic Statistics 147
Principal Employers 149
Operating Information
Full-Time Equivalent Employees by Function 150
Operating Indicators by Function 152
Capital Asset Statistics by Function 154
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INTRODUCTORY SECTION
CITY OF ORONO, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2020
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 Planners
•Planning Assistant
Mayor &
Council
City of Orono
Organizational Chart
City of Orono, Minnesota
Elected and Appointed Officials
For the Year Ended December 31, 2020
Name Title Term Expires
Dennis Walsh Mayor 12/31/24
Aaron Printup Council Member 12/31/22
Victoria Seals Council Member 12/31/24
Richard Crosby II Council Member 12/31/24
Matt Johnson Council Member 12/31/22
Name Title
Adam Edwards City Administrator
Ronald Olson Finance Director - Treasurer
ELECTED
APPOINTED
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FINANCIAL SECTION
CITY OF ORONO, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2020
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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, 2020, and the related notes to the financial statements, which collectively comprise the City’s basic
financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with
accounting principles generally accepted in the United States of America; this includes the design, implementation, and
maintenance of internal control relevant to the preparation and fair presentation of 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 disclosur es in the financial
statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the City’s preparation and fair presentation of the financial statements in order to
design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on
the effectiveness of the City’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by
management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial
position of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund
information of the City as of December 31, 2020, and the respective changes in financial position and, where applicable,
cash flows thereof 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.
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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 19 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 82 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 knowle dge 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 January 11, 2022, 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
Minneapolis, Minnesota
January 11, 2022
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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, 2020.
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 $54,693,561 (net position). Of this amount, $4,658,925
(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 $1,182,043 and business-type activities increased
$616,426, resulting in a total increase of $1,798,469, mainly as a result of increased grant revenue for
governmental activities and increased charges for services for business-type activities.
•As of the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances
of $7,153,868, a decrease of $565,808 in comparison with the prior year.
•At the end of the current fiscal year, unassigned fund balance for the General fund was $4,516,690, or 48.8
percent of next year's budgeted expenditures.
•The City’s total debt decreased $1,032,435, (14.43% percent) during the current fiscal year. The decrease was due
to scheduled debt payments.
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 sho ws 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
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 bu t 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, an d
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 33 of this report.
Fund Financial Statements. A fund is a grouping of related accounts that is used to maintain control over resources that
have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund
accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the 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, 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 38 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, an d
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 44 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 51 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 82 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 92 of this report.
Government-wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of
the City, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $54,693,561
at the close of the most recent fiscal year.
By far, the largest portion of the City’s net position (86.2 percent) reflects its investment in capital assets (e.g., land,
buildings, machinery and equipment) less any related debt used to acquire those assets that is still outstanding. The City
uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending.
Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources
needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to
liquidate these liabilities.
City of Orono’s Summary of Net Position
Increase Increase
2020 2019 (Decrease)2020 2019 (Decrease)
Assets
Current and other assets 11,319,525$ 11,220,921$ 98,604$ 5,691,848$ 5,434,068$ 257,780$
Capital assets, net of depreciation 33,559,854 31,754,497 1,805,357 19,726,605 19,564,663 161,942
Total Assets 44,879,379 42,975,418 1,903,961 25,418,453 24,998,731 419,722
Deferred Outflows of Resources
Deferred other postemployment benefits resources 78,314 15,632 62,682 10,934 2,697 8,237
Deferred pension resources 1,811,018 3,859,103 (2,048,085) 57,752 45,799 11,953
Total Deferred Outflows or Resources 1,889,332 3,874,735 (1,985,403) 68,686 48,496 20,190
Liabilities
Noncurrent liabilities outstanding 10,720,869 11,039,612 (318,743) 1,474,826 1,474,864 (38)
Other liabilities 2,559,517 2,012,386 547,131 281,220 426,171 (144,951)
Total Liabilities 13,280,386 13,051,998 228,388 1,756,046 1,901,035 (144,989)
Deferred Inflows of Resources
Deferred other postemployment benefits resources 175,366 37,525 137,841 24,485 6,476 18,009
Deferred pension resources 2,304,867 3,934,581 (1,629,714) 21,139 70,673 (49,534)
Total Deferred Inflows or Resources 2,480,233 3,972,106 (1,491,873) 45,624 77,149 (31,525)
Net Position
Net investment in capital assets 28,256,953 25,500,646 2,756,307 18,910,474 18,679,663 230,811
Restricted 2,867,209 3,202,919 (335,710) - - -
Unrestricted (116,070) 1,122,484 (1,238,554) 4,774,995 4,389,380 385,615
Total Net Position 31,008,092$ 29,826,049$ 1,182,043$ 23,685,469$ 23,069,043$ 616,426$
Governmental Activities Business-type Activities
An additional portion of the City’s net position (5.2 percent) represents resources that are subject to external restrictions
on how they may be used. The remaining balance of unrestricted net position ($4,658,925) may be used to meet the City’s
ongoing obligations to citizens and creditors.
At the end of the current fiscal year, the City is able to report positive balances in two of the three categories of net
position. The same situation held true for the prior fiscal year.
Significant changes from the prior year are noted below:
City of Orono’s Changes in Net Position
Increase Increase
2020 2019 (Decrease)2020 2019 (Decrease)
Revenues
Program Revenues
Charges for services 4,242,624$ 4,590,910$ (348,286)$ 4,152,477$ 3,043,620$ 1,108,857$
Operating grants and contributions 976,217 419,114 557,103 - 21,058 (21,058)
Capital grants and contributions 617,082 649,359 (32,277) 6,050 253,370 (247,320)
General Revenues
Taxes
Property taxes 5,999,083 5,630,633 368,450 - - -
Tax increment 82,686 76,344 6,342 - - -
Grants and contributions
not restricted to
specific programs 5,321 26,372 (21,051) - - -
Unrestricted investment earnings 173,308 259,332 (86,024) 88,571 127,939 (39,368)
Gain on sale of capital assets 36,217 63,105 (26,888) - - -
Other - - - - - -
Total Revenues 12,132,538 11,715,169 417,369 4,247,098 3,445,987 801,111
Expenses
General government 1,865,451 818,147 1,047,304 - - -
Public safety 6,361,790 5,422,838 938,952 - - -
Streets 1,946,959 946,735 1,000,224 - - -
Culture and recreation 696,274 535,357 160,917 - - -
Community development 111,781 141,722 (29,941) - - -
Interest on long-term debt 138,240 150,164 (11,924) - - -
Water - - - 1,044,516 984,452 60,064
Sewer - - - 1,743,277 1,538,449 204,828
Storm Water - - - 354,524 433,908 (79,384)
Recycling - - - 227,227 173,049 54,178
Cable Television - - - 91,128 90,586 542
Total Expenses 11,120,495 8,014,963 3,105,532 3,460,672 3,220,444 240,228
Change in Net Position
before Transfers 1,012,043 3,700,206 (2,688,163) 786,426 225,543 560,883
Transfers (Net)170,000 160,661 9,339 (170,000) (160,661) (9,339)
Change in Net Position 1,182,043 3,860,867 (2,678,824) 616,426 64,882 551,544
Net Position, January 1 29,826,049 25,965,182 3,860,867 23,069,043 23,004,161 64,882
Net Position, December 31 31,008,092$ 29,826,049$ 1,182,043$ 23,685,469$ 23,069,043$ 616,426$
Governmental Activities Business-type Activities
•The increase in Operating Grants and Contributions from the prior year relates to CARES act funding.
•The increased Public Safety expenses from prior year is expenses related to the COVID-19 pandemic.
•The increased Public Works expense from prior year is due to various street improvement projects.
Governmental Activities. Governmental activities increased the City’s net position by $1,182,043. 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
$7,000,000
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
35.1%
Operating Grants
and
Contributions
8.0%
Capital Grants
and
Contributions
5.1%
Grants and
Contributions
Unrestricted
0.0%
Taxes
50.1%
Other
1.7%
Business-type Activities. The net position of business-type activities increased by $616,426. 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
97.8%
Capital Grants
and Contributions
0.1%
Unrestricted
Investment
Earnings
2.1%
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 $7,153,868,
a decrease of $565,808 in comparison with the prior year. Approximately 10.6 percent of this total amount, $1,405,177,
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 $30,343, 2) restricted $2,908,430, 3)
committed $36,329, or 4) assigned $2,773,589. For further classification refer to Note 3E starting on page 68 of this
report.
Activity in the City’s major funds is discussed below:
Increase
2020 2019 (Decrease)
General 4,547,033$ 4,407,693$ 139,340$
Municipal State Aid Street (1,922,298)$ (2,188,393)$ 266,095$
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.
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 $5,553,312. 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 no changes in fund
balance. Revenues were more than budget by $153,352, primarily due to intergovernmental and charges for services
revenue coming over budget by $134,205 and $115,736 respectively. Expenditures were $33,823 more than budgeted
amounts, primarily due to expenditures for public works coming in over budget by $302,433.
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, 2020, amounts to $53,286,459 (net of accumulated depreciation). This investment in capital assets
includes land (tangible and intangible), buildings, improvements, machinery and equipment, park facilities, roads and
bridges, and other infrastructure.
Major capital asset events during the current fiscal year included the following:
•The 2019, 2020 and 2021 Street Improvement projects.
•Various City vehicles were purchased
•The City also had various sewer and drainage improvements done in 2020
City of Orono’s Capital Assets
(Net of Depreciation)
Additional information on the City’s capital assets can be found in Note 3B starting on page 63 of this report.
Increase Increase
2020 2019 (Decrease)2020 2019 (Decrease)
Land 7,677,435$ 7,337,435$ 340,000$ 86,074$ 86,074$ -$
Construction in Progress 2,077,173 2,124,119 (46,946) 387,468 899,978 (512,510)
Infrastructure 13,691,518 12,595,399 1,096,119 1,076,935 17,040,515 (15,963,580)
Buildings and Systems 6,022,487 6,209,827 (187,340) 762 1,147,476 (1,146,714)
Improvements other than Buildings 1,714,581 1,390,777 323,804 602,996 1,015 601,981
Machinery and Equipment 2,376,660 2,096,940 279,720 17,572,370 389,605 17,182,765
Total 33,559,854$ 31,754,497$ 1,805,357$ 19,726,605$ 19,564,663$ 161,942$
Governmental Activities Business-type Activities
Long-term Debt. At the end of the current fiscal year, the City had total bonded debt outstanding of $5,990,000. 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 valu e. The
current debt limitation for the City is $102,551,528. Only the $5,990,000 in G.O. bonds is counted within the statutory
limitation.
City of Orono’s Outstanding Debt
Increase Increase
2020 2019 (Decrease)2020 2019 (Decrease)
G.O. Revenue Bonds 5,185,000$ 6,110,000$ (925,000)$ 805,000$ 885,000$ (80,000)$
Bond Premium 117,901 143,851 (25,950) 12,616 14,101 (1,485)
Total 5,302,901$ 6,253,851$ (950,950)$ 817,616$ 899,101$ (81,485)$
Governmental Activities Business-type Activities
Additional information on the City’s long-term debt can be found in Note 3D starting on page 66 of this report.
Economic Factors and Next Year’s Budgets and Rates
•Water rates are continuing to be increased based on the updated utility rate study, with the goal of producing a
positive operating income in the future.
•The City has completed the development of a Capital Improvement Plan (CIP) that was formally adopted by the
City Council. This plan is reviewed annually as part of the budget process.
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.
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GOVERNMENT-WIDE FINANCIAL STATEMENTS
CITY OF ORONO, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2020
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City of Orono, Minnesota
Statement of Net Position
December 31, 2019
Governmental Business-type
Activities Activities Total
Assets
Cash and temporary investments 10,204,382$ 5,159,709$ 15,364,091$
Receivables
Accrued interest 18,515 9,798 28,313
Taxes 108,511 - 108,511
Accounts 20,695 256,640 277,335
Special assessments 36,833 248,380 285,213
Due from other governments 859,694 2,980 862,674
Inventories 3,494 14,341 17,835
Prepaid items 67,401 - 67,401
Capital assets
Land and construction in progress 9,754,608 473,542 10,228,150
Depreciable assets (net of accumulated depreciation)23,805,246 19,253,063 43,058,309
Total Assets 44,879,379 25,418,453 70,297,832
Deferred Outflows of Resources
Deferred other postemployment benefits resources 78,314 10,934 89,248
Deferred pension resources 1,811,018 57,752 1,868,770
Total Deferred Outflows of Resources 1,889,332 68,686 1,958,018
Liabilities
Accounts and contracts payable 773,465 239,658 1,013,123
Accrued salaries payable 71,945 8,811 80,756
Due to other governments 98,686 17,571 116,257
Accrued interest payable 64,342 8,180 72,522
Deposits payable 1,528,342 7,000 1,535,342
Unearned revenue 22,737 - 22,737
Noncurrent liabilities
Due within one year
Long-term liabilities 1,539,804 146,423 1,686,227
Due in more than one year
Long-term liabilities 4,369,854 740,458 5,110,312
Net pension liability 4,017,837 477,174 4,495,011
Other postemployment benefits liability 793,374 110,771 904,145
Total Liabilities 13,280,386 1,756,046 15,036,432
Deferred Inflows of Resources
Deferred pension resources 2,304,867 21,139 2,326,006
Deferred other postemployment benefit resources 175,366 24,485 199,851
Total Deferred Inflows of Resources 2,480,233 45,624 2,525,857
Net Position
Net investment in capital assets 28,256,953 18,910,474 47,167,427
Restricted for
Debt service 2,157,042 - 2,157,042
Golf course improvements 283 - 283
Park improvements 94,902 - 94,902
Drug and alcohol law enforcement '411,044 - 411,044
Home buyer purchase assistance program 140,191 - 140,191
Senior housing TIF 63,747 - 63,747
Unrestricted (116,070) 4,774,995 4,658,925
Total Net Position 31,008,092$ 23,685,469$ 54,693,561$
The notes to the financial statements are an integral part of this statement.
City of Orono, Minnesota
Statement of Activities
For the Year Ended December 31, 2020
Operating Capital
Charges for Grants and Grants and
Expenses Services Contributions Contributions
Governmental Activities
General government 1,865,451$ 984,876$ 423,974$ -$
Public safety 6,361,790 2,607,888 476,081 -
Public works 1,946,959 638,149 - 296,919
Parks and recreation 696,274 11,711 76,162 320,163
Community development 111,781 - - -
Interest on long-term debt 138,240 - - -
Total Governmental Activities 11,120,495 4,242,624 976,217 617,082
Business-type Activities
Water 1,044,516 1,257,201 - -
Sewer 1,743,277 1,902,088 - -
Storm water 354,524 701,562 - 6,050
Recycling 227,227 212,038 - -
Cable television 91,128 79,588 - -
Total Business-type Activities 3,460,672 4,152,477 - 6,050
Total 14,581,167$ 8,395,101$ 976,217$ 623,132$
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.
Governmental Business-type
Activities Activities Total
(456,601)$ -$ (456,601)$
(3,277,821) - (3,277,821)
(1,011,891) - (1,011,891)
(288,238) - (288,238)
(111,781) - (111,781)
(138,240) - (138,240)
(5,284,572) - (5,284,572)
- 212,685 212,685
- 158,811 158,811
- 353,088 353,088
- (15,189) (15,189)
- (11,540) (11,540)
- 697,855 697,855
(5,284,572) 697,855 (4,586,717)
5,293,262 - 5,293,262
705,821 - 705,821
82,686 - 82,686
5,321 - 5,321
173,308 88,571 261,879
36,217 - 36,217
170,000 (170,000) -
6,466,615 (81,429) 6,385,186
1,182,043 616,426 1,798,469
29,826,049 23,069,043 52,895,092
31,008,092$ 23,685,469$ 54,693,561$
Changes in Net Position
Net (Expenses) Revenues and
The notes to the financial statements are an integral part of this statement.
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FUND FINANCIAL STATEMENTS
CITY OF ORONO, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2020
City of Orono, Minnesota
Balance Sheet
Governmental Funds
December 31, 2020
Municipal Other Total
State Aid Governmental Governmental
General Street Funds Funds
Assets
Cash and temporary investments 3,552,153$ 614,196$ 5,288,272$ 9,454,621$
Receivables
Accrued interest 4,186 - 12,655 16,841
Taxes 68,984 - 39,527 108,511
Accounts 20,695 - - 20,695
Special assessments - - 36,833 36,833
Due from other governments 94,978 596,821 167,895 859,694
Due from other funds 2,675,998 - - 2,675,998
Prepaid items 26,849 - - 26,849
Inventories 3,494 - - 3,494
Total Assets 6,447,337$ 1,211,017$ 5,545,182$ 13,203,536$
Liabilities
Accounts and contracts payable 132,934$ -$ 628,073$ 761,007$
Accrued salaries payable 70,733 - - 70,733
Due to other governments 98,686 - - 98,686
Due to other funds - 2,536,494 139,504 2,675,998
Deposits payable 1,528,342 - - 1,528,342
Unearned revenue 625 - 22,112 22,737
Total Liabilities 1,831,320 2,536,494 789,689 5,157,503
Deferred Inflows of Resources
Unavailable revenues - delinquent taxes 68,984 - 39,527 108,511
Unavailable revenues - special assessments - - 36,833 36,833
Unavailable revenues - intergovernmental - 596,821 150,000 746,821
Total Deferred Inflows of Resources 68,984 596,821 226,360 892,165
Fund Balances
Nonspendable 30,343 - - 30,343
Restricted - - 2,908,430 2,908,430
Committed - - 36,329 36,329
Assigned - - 2,773,589 2,773,589
Unassigned 4,516,690 (1,922,298) (1,189,215) 1,405,177
Total Fund Balances 4,547,033 (1,922,298) 4,529,133 7,153,868
Total Liabilities, Deferred Inflows
of Resources and Fund Balances 6,447,337$ 1,211,017$ 5,545,182$ 13,203,536$
The notes to the financial statements are an integral part of this statement.
City of Orono, Minnesota
Reconciliation of the Balance Sheet
to the Statement of Net Position
Governmental Funds
December 31, 2020
Amounts reported for the governmental activities in the statement of net position are different because
Total Fund Balances - Governmental Funds 7,153,868$
Capital assets used in governmental activities are not financial resources and therefore
are not reported as assets in governmental funds.
Cost of capital assets 42,999,561
Less: accumulated depreciation (9,439,707)
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.778,317
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 (606,757)
Bonds payable (5,185,000)
Plus premium on bonds issued (117,901)
Other postemployment benefits payable (793,374)
Net pension liability (4,017,837)
Some receivables are not available soon enough to pay for the current period's expenditures,
and therefore are unavailable in the funds.
Delinquent taxes 108,511
Special assessments 36,833
Intergovernmental 746,821
Governmental funds do not report long-term amounts related to pensions and OPEB.
Deferred outflows other postemployment benefit resources 78,314
Deferred inflows other postemployment benefit resources (175,366)
Deferred outflows of pension resources 1,811,018
Deferred inflows of pension resources (2,304,867)
Governmental funds do not report a liability for accrued interest until due and payable.(64,342)
Total Net Position - Governmental Activities 31,008,092$
The notes to the financial statements are an integral part of this statement.
City of Orono, Minnesota
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the Year Ended December 31, 2020
Municipal Other Total
State Aid Governmental Governmental
General Street Funds Funds
Revenues
Taxes 4,647,514$ -$ 1,395,720$ 6,043,234$
Special assessments - - 35,881 35,881
Licenses and permits 497,164 - 5,550 502,714
Intergovernmental 532,205 256,420 650,886 1,439,511
Charges for services 3,454,436 - 123,681 3,578,117
Fines and forfeitures 44,001 - 28,427 72,428
Investment earnings 61,661 9,798 101,849 173,308
Miscellaneous 39,571 - 101,973 141,544
Total Revenues 9,276,552 266,218 2,443,967 11,986,737
Expenditures
Current
General government 1,359,102 - 373,223 1,732,325
Public safety 5,593,636 - 6,252 5,599,888
Public works 1,089,733 - - 1,089,733
Parks and recreation 522,114 - 48,232 570,346
Community development - - 111,781 111,781
Capital outlay
Public safety 212,438 - - 212,438
Public works - 123 1,547,199 1,547,322
Parks and recreation - - 808,910 808,910
Debt service
Principal - - 925,000 925,000
Interest and other charges - - 164,613 164,613
Total Expenditures 8,777,023 123 3,985,210 12,762,356
Excess (Deficiency) of Revenues
Over (Under) Expenditures 499,529 266,095 (1,541,243) (775,619)
Other Financing Sources (Uses)
Transfers in - - 570,000 570,000
Proceeds from sale of capital assets 39,811 - - 39,811
Transfers out (400,000) - - (400,000)
Total Other Financing Sources (Uses)(360,189) - 570,000 209,811
Net Change in Fund Balances 139,340 266,095 (971,243) (565,808)
Fund Balances, January 1 4,407,693 (2,188,393) 5,500,376 7,719,676
Fund Balances, December 31 4,547,033$ (1,922,298)$ 4,529,133$ 7,153,868$
The notes to the financial statements are an integral part of this statement.
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, 2020
Amounts reported for governmental activities in the statement of activities are different because
Total Net Change in Fund Balances - Governmental Funds (565,808)$
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 2,782,167
Depreciation expense (973,216)
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.(3,594)
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 925,000
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.423
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.31,135
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 (1,617)
Property taxes 38,535
Intergovernmental 48,805
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 (60,897)
Other postemployment benefits (123,649)
Long-term pension activity is not reported in governmental funds.
Pension expense (965,052)
Pension revenue from State contributions 23,861
Change in Net Position - Governmental Activities 1,182,043$
The notes to the financial statements are an integral part of this statement.
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City of Orono, Minnesota
Statement of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual
General Fund
For the Year Ended December 31, 2020
Actual Variance with
Original Final Amounts Final Budget
Revenues
Taxes 4,689,000$ 4,689,000$ 4,647,514$ (41,486)$
Licenses and permits 532,200 532,200 497,164 (35,036)
Intergovernmental 398,000 398,000 532,205 134,205
Charges for services 3,338,700 3,338,700 3,454,436 115,736
Fines and forfeitures 75,100 75,100 44,001 (31,099)
Investment earnings 77,100 77,100 61,661 (15,439)
Miscellaneous
Rents and refunds 5,400 5,400 4,950 (450)
Other 7,700 7,700 34,621 26,921
Total Revenues 9,123,200 9,123,200 9,276,552 153,352
Expenditures
Current
General government 1,471,400 1,471,400 1,359,102 112,298
Public safety 5,836,000 5,836,000 5,593,636 242,364
Public Works 787,300 787,300 1,089,733 (302,433)
Parks and recreation 463,500 463,500 522,114 (58,614)
Capital Outlay
Public safety 185,000 185,000 212,438 (27,438)
Total Expenditures 8,743,200 8,743,200 8,777,023 (33,823)
Excess of Revenues
Over Expenditures 380,000 380,000 499,529 119,529
Other Financing Sources (Uses)
Proceeds from sale of capital assets 20,000 20,000 39,811 19,811
Transfers out (400,000) (400,000) (400,000) -
Total Financing Sources (Uses)(380,000) (380,000) (360,189) 19,811
Net Change in Fund Balances - - 139,340 139,340
Fund Balances, January 1 4,407,693 4,407,693 4,407,693 -
Fund Balances, December 31 4,407,693$ 4,407,693$ 4,547,033$ 139,340$
Budgeted Amounts
The notes to the financial statements are an integral part of this statement.
Governmental
Activities -
Internal
Water Sewer Storm Water Other Business-type Total Service Funds
Assets
Current Assets
Cash and temporary investments 544,109$ 2,926,876$ 1,492,116$ 59,648$ 5,022,749$ 886,721$
Receivables
Accrued interest 664 5,999 2,641 494 9,798 1,674
Accounts 73,678 126,981 28,503 27,478 256,640 -
Special assessments 42,565 205,815 - - 248,380 -
Due from other governments 425 2,555 - - 2,980 -
Inventories 14,341 - - - 14,341 -
Prepaid items - - - - - 40,552
Total Current Assets 675,782 3,268,226 1,523,260 87,620 5,554,888 928,947
Noncurrent Assets
Capital assets
Land 55,052 24,654 6,368 - 86,074 -
Construction in progress 6,260 227,299 153,909 - 387,468 -
Buildings and systems 1,670,843 32,968 - - 1,703,811 -
Land Improvements 7,143 - - - 7,143 -
Distribution/collection system 6,291,542 19,468,265 2,381,047 - 28,140,854 -
Machinery and equipment 100,444 644,105 245,870 238,311 1,228,730 -
Total Capital Assets 8,131,284 20,397,291 2,787,194 238,311 31,554,080 -
Less accumulated depreciation (3,124,518) (8,304,402) (361,271) (37,284) (11,827,475) -
Total Noncurrent Assets 5,006,766 12,092,889 2,425,923 201,027 19,726,605 -
Total Assets 5,682,548 15,361,115 3,949,183 288,647 25,281,493 928,947
Deferred Outflows of Resources
Deferred pension resources 21,320 21,247 10,250 4,935 57,752 -
Deferred other postemployment benefits resources 3,342 4,910 2,682 - 10,934 -
Total Deferred Outflows of Resources 24,662 26,157 12,932 4,935 68,686 -
Business-type Activities - Enterprise Funds
City of Orono, Minnesota
Statement of Net Position (Continued on the Following Page)
Proprietary Funds
December 31, 2020
The notes to the financial statements are an integral part of this statement.
Governmental
Activities -
Internal
Water Sewer Storm Water Other Business-type Total Service Funds
Liabilities
Current Liabilities
Accounts and contracts payable 46,206$ 181,761$ 11,691$ -$ 239,658$ 12,458$
Accrued salaries payable 3,596 3,184 1,641 390 8,811 1,212
Due to other governments 8,704 8,867 - - 17,571 -
Accrued interest payable 8,180 - - - 8,180 -
Deposits payable 7,000 - - - 7,000 -
Compensated absences payable - current portion 36,464 15,892 12,582 - 64,938 -
Bond premium - current portion 1,485 - - - 1,485
Bonds payable - current portion 80,000 - - - 80,000 -
Total Current Liabilities 191,635 209,704 25,914 390 427,643 13,670
Noncurrent Liabilities
Bond premium 11,131 - - - 11,131
Bonds payable 725,000 - - - 725,000 -
Compensated absences payable 2,430 1,059 838 - 4,327 -
Net pension liability 176,155 175,552 84,692 40,775 477,174 -
Other postemployment benefits payable 33,858 49,743 27,170 - 110,771 -
Total Noncurrent Liabilities 948,574 226,354 112,700 40,775 1,328,403 -
Total Liabilities 1,140,209 436,058 138,614 41,165 1,756,046 13,670
Deferred Inflows of Resources
Deferred pension resources 7,804 7,777 3,752 1,806 21,139 -
Deferred other postemployment benefit resources 7,484 10,995 6,006 - 24,485 -
Total Deferred Inflows of Resources 15,288 18,772 9,758 1,806 45,624 -
Net Position
Net investment in capital assets 4,190,635 12,092,889 2,425,923 201,027 18,910,474 -
Unrestricted 361,078 2,839,553 1,387,820 49,584 4,638,035 915,277
Total Net Position 4,551,713$ 14,932,442$ 3,813,743$ 250,611$ 23,548,509 915,277$
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 136,960
23,685,469$
City of Orono, Minnesota
Statement of Net Position (Continued)
Proprietary Funds
December 31, 2020
Business-type Activities - Enterprise Funds
The notes to the financial statements are an integral part of this statement.
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Governmental
Activities -
Internal
Water Sewer Storm Water Other Business-type Total Service Funds
Operating Revenues
Charges for services 1,242,867$ 1,880,435$ 701,334$ 286,382$ 4,111,018$ 420,824$
Other - - - - - 475,797
Total Operating Revenues 1,242,867 1,880,435 701,334 286,382 4,111,018 896,621
Operating Expenses
Personnel services 276,079 283,491 131,654 64,792 756,016 291,681
Supplies 55,057 3,138 2,033 277 60,505 26,852
Professional services 38,371 54,036 23,480 230,042 345,929 133,565
Utilities 89,125 35,465 - - 124,590 -
Repairs and maintenance 199,386 157,507 22,260 - 379,153 158,047
Depreciation 208,694 348,371 60,179 11,586 628,830 -
Administrative charges from the General Fund 107,400 107,400 54,476 - 269,276 -
Insurance 7,800 14,000 3,500 - 25,300 248,330
Other 52,254 748,587 61,257 13,771 875,869 -
Total Operating Expenses 1,034,166 1,751,995 358,839 320,468 3,465,468 858,475
Operating Income (Loss)208,701 128,440 342,495 (34,086) 645,550 38,146
Nonoperating Revenues (Expenses)
Investment earnings 6,254 54,108 26,699 1,510 88,571 16,065
Miscellaneous revenues 14,334 21,653 228 5,244 41,459 -
Interest and amortization expense (18,280) - - - (18,280) -
Total Nonoperating
Revenues (Expenses)2,308 75,761 26,927 6,754 111,750 16,065
Income (Loss) Before
Contributions and Transfers 211,009 204,201 369,422 (27,332) 757,300 54,211
Contributions and Transfers
Connection fee - - 6,050 - 6,050 -
Transfers Out (55,000) (115,000) - - (170,000) -
Total Transfers and Contributions (55,000) (115,000) 6,050 - (163,950) -
Change in Net Position 156,009 89,201 375,472 (27,332) 593,350 54,211
Net Position - January 1 4,395,704 14,843,241 3,438,271 277,943 861,066
Net Position, December 31 4,551,713$ 14,932,442$ 3,813,743$ 250,611$ 915,277$
Adjustment to reflect the consolidation of internal service fund activities to the enterprise funds.23,076
Change in net position - business-type activities 616,426$
City of Orono, Minnesota
Statement of Revenues, Expenses and Changes in Net Position
Proprietary Funds
For the Year Ended December 31, 2020
Business-type Activities - Enterprise Funds
The notes to the financial statements are an integral part of this statement.
Governmental
Activities -
Internal
Water Sewer Storm Other Business-type Total Service Funds
Cash Flows from Operating Activities
Receipts from customers and users 1,327,152$ 2,110,981$ 725,138$ 296,871$ 4,460,142$ 896,621$
Other operating receipts 14,334 21,653 228 5,244 41,459 -
Payments to suppliers (557,341) (1,103,430) (180,332) (272,305) (2,113,408) (566,195)
Payments to employees (269,143) (285,373) (129,479) (56,932) (740,927) (292,285)
Net Cash Provided (Used) by
Operating Activities 515,002 743,831 415,555 (27,122) 1,647,266 38,141
Cash Flows from Noncapital
Financing Activities
Transfers to other funds (55,000) (115,000) - - (170,000) -
Cash Flows from Capital and
Related Financing Activities
Connection fees received - - 6,050 - 6,050 -
Special assessments received 4,306 25,815 - - 30,121 -
Acquisition of capital assets (56,235) (547,235) (142,840) (97,477) (843,787) -
Interest paid on debt (20,431) - - - (20,431) -
Principal paid on bonds (80,000) - - - (80,000) -
Net Cash Used by Capital
and Related Financing Activities (152,360) (521,420) (136,790) (97,477) (908,047) -
Cash Flows from Investing Activities
Investment receipts 6,254 55,173 27,240 1,543 90,210 16,374
Net Increase (Decrease) in
Cash and Cash Equivalents 313,896 162,584 306,005 (123,056) 659,429 54,515
Cash and Cash Equivalents, January 1 230,213 2,764,292 1,186,111 182,704 4,363,320 832,206
Cash and Cash Equivalents, December 31 544,109$ 2,926,876$ 1,492,116$ 59,648$ 5,022,749$ 886,721$
City of Orono, Minnesota
Statement of Cash Flows (Continued on the Following Page)
Proprietary Funds
For the Year Ended December 31, 2020
Business-type Activities - Enterprise Funds
The notes to the financial statements are an integral part of this statement.
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)208,701$ 128,440$ 342,495$ (34,086)$ 645,550$ 38,146$
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities
Depreciation 208,694 348,371 60,179 11,586 628,830 -
Other income related to operations 14,334 21,653 228 5,244 41,459 -
(Increase) decrease in assets/deferred
outflows of resources
Accounts receivable 84,710 230,183 23,804 10,489 349,186 -
Due from other governments (425) 363 - - (62) -
Inventories (7,775) - - - (7,775) -
Prepaid items - 51,616 - - 51,616 7,572
Deferred OPEB resources 2,960 4,374 2,438 - 9,772 -
Deferred pension resources (4,386) (4,160) (1,728) (1,679) (11,953) -
Increase (decrease) in liabilities/deferred
inflows of resources
Accounts and contracts payable 2,596 (30,439) (13,326) (28,215) (69,384) (6,973)
Accrued salaries payable (5,495) (5,606) (2,826) (716) (14,643) (604)
Due to other governments (2,769) (4,474) - - (7,243) -
Compensated absences payable 4,359 (1,738) 3,403 - 6,024 -
Net pension liability 34,185 32,300 13,246 13,474 93,205 -
Other postemployment benefits payable (6,360) (8,462) (2,960) - (17,782) -
Deferred pension resources (18,327) (18,590) (9,398) (3,219) (49,534) -
Net Cash Provided (Used) by
Operating Activities 515,002$ 743,831$ 415,555$ (27,122)$ 1,647,266$ 38,141$
Schedule of Noncash Capital and
Related Financing Activities
Capital assets acquired on account -$ 157,525$ 11,153$ -$ 168,678$ -$
Amortization of bond premium 1,485$ -$ -$ -$ 1,485$ -$
Business-type Activities - Enterprise Funds
For the Year Ended December 31, 2020
City of Orono, Minnesota
Statement of Cash Flows (Continued)
Proprietary Funds
The notes to the financial statements are an integral part of this statement.
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BLANK INTENTIONALLY
City of Orono, Minnesota
Notes to the Financial Statements
December 31, 2020
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 burd ens
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.
City of Orono, Minnesota
Notes to the Financial Statements
December 31, 2020
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 thereafte r to
pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected wi thin
60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as und er
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.
City of Orono, Minnesota
Notes to the Financial Statements
December 31, 2020
Note 1: Summary of Significant Accounting Policies (Continued)
The City reports the following major governmental fund s:
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 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 cost s 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.
City of Orono, Minnesota
Notes to the Financial Statements
December 31, 2020
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 subsidia ries, 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; Leve l
3 inputs are significant unobservable inputs.
City of Orono, Minnesota
Notes to the Financial Statements
December 31, 2020
Note 1: Summary of Significant Accounting Policies (Continued)
The City has the following recurring fair value measurements as of December 31, 2020:
• US Treasury securities of $2,520,000 are valued using quoted market prices (Level 1 inputs)
• Negotiable certificates of deposits and municipal bonds of $8,036,587 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 2020. 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, 2020, the total delinquent
special assessment receivable balance is $27,597.
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 b alances outstanding between the governmental activities and business-type
activities are reported in the government-wide financial statements as “internal balances.”
City of Orono, Minnesota
Notes to the Financial Statements
December 31, 2020
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. 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 only one item that qualifies for reporting in this category. Accordingly, the item, deferred pensio n
resources, is reported only in the statements of net position. This item results from actuarial calculations and current
year pension contributions made subsequent to the measurement date.
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 ma de
subsequent to the measurement dates
City of Orono, Minnesota
Notes to the Financial Statements
December 31, 2020
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 resignat ions 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 re tirees 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 mus t 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, 2020. 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 acco rdance 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.
City of Orono, Minnesota
Notes to the Financial Statements
December 31, 2020
Note 1: Summary of Significant Accounting Policies (Continued)
The City participates in various pension plans, total pension expense for the year ended December 31, 2020 is as follows:
Total All
GERP PEPFF Plans
Pension Expense 68,036$ 347,927$ 415,963$
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.
City of Orono, Minnesota
Notes to the Financial Statements
December 31, 2020
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 wh ich 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.
City of Orono, Minnesota
Notes to the Financial Statements
December 31, 2020
Note 2: Stewardship, Compliance and Accountability (Continued)
B.Deficit Fund Equity
The following fund had a fund equity deficit at December 31, 2020:
Amount
Major
Municipal State Aid Street 1,922,298$
Nonmajor Governmental
Pavement Management Plan 822,820
Park 366,395
Fund
The fund deficits are 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 p owers 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.
City of Orono, Minnesota
Notes to the Financial Statements
December 31, 2020
Note 3: Detailed Notes on All Funds (Continued)
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 a negative $138,909 and the bank balance was $223,517. The
bank balance was covered by federal depository insurance.
Investments
The Minnesota Municipal Money Market Fund (the 4M Fund) is regulated by Minnesota statutes and the Board of
Directors of the League of Minnesota Cities and is a customized cash management and investment program for
Minnesota public funds. Sponsored and governed by the League of Minnesota Cities since 1987, the 4M Fund is a
unique investment alternative designed to address the daily and long -term investment needs of Minnesota cities and
other
municipal entities. Allowable under Minnesota statutes, the 4M Fund is comprised of top quality, rated investments.
The Minnesota Municipal Money Market Fund and broker money market investment pools operate in accordance with
appropriate State laws and regulations. The 4M Fund is an external investment pool not registered with the Securities and
Exchange Commission (SEC); however, it follows the same regulatory rules of the SEC under rule 2a7. The reported
value of the pool is the same as the fair value of the pool share. Financial statements of the 4M Fund can be obtained by
contacting RBC Global Asset Management at 100 South Fifth Street, Suite 2300, Minneapolis, MN
55402-1240.
At year end, the City’s investment balances were as follows:
Credit Segmented
Quality/Time
Ratings (1)Distribution (2)Amount Level 1 Level 2 Level 3
Pooled Investments at Amortized Costs
Broker Money Market Funds N/A less than 6 months 1,494,068$
4M fund N/A less than 6 months 3,452,345
Non-pooled Investments at Fair Value
Negotiable Certificates of Deposits N/A less than 1 year 4,196,292 -$ 4,196,292$ -$
Negotiable Certificates of Deposits N/A 1 to 3 years 1,265,097 - 1,265,097 -
Negotiable Certificates of Deposits N/A more than 3 years 1,262,646 - 1,262,646 -
Municipal Bonds AAA 1 to 3 years 526,095 - 526,095 -
Municipal Bonds AAA more than 3 years 786,457 - 786,457 -
Treasury Securities N/A less than 6 months 2,520,000 2,520,000 - -
Total Investments 15,503,000$ 2,520,000$ 8,036,587$ -$
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.
City of Orono, Minnesota
Notes to the Financial Statements
December 31, 2020
Note 3: Detailed Notes on All Funds (Continued)
The investments of the City are subject to the following risks:
• Interest Rate Risk - 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 58
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, 2020, the following issuer exceeded 5 percent of the City’s total
investments: MN Municipal Money Markets (4M) (22.27 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, 2020, 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, 2020, 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 $40,000,000 and may
include “primary” dealers or regional dealers, and are located in Minnesota. The City limits the amount of
investments with a specific dealer to 30 percent of the investment portfolio.
City of Orono, Minnesota
Notes to the Financial Statements
December 31, 2020
Note 3: Detailed Notes on All Funds (Continued)
A reconciliation of cash and temporary investments as shown on the statement of net position for the City follows:
Carrying Amount of Deposits (138,909)$
Investments 15,503,000
Total 15,364,091$
B.Capital Assets
Capital asset activity for the year ended December 31, 2020 was as follows:
Beginning Ending
Balance Increases Decreases Balance
Governmental Activities
Capital Assets not Being Depreciated
Land 7,337,435$ 340,000$ -$ 7,677,435$
Construction in progress 2,124,119 1,716,760 (1,763,706) 2,077,173
Total Capital Assets not
Being Depreciated 9,461,554 2,056,760 (1,763,706) 9,754,608
Capital Assets Being Depreciated
Infrastructure 14,230,052 1,451,983 - 15,682,035
Buildings and systems 9,187,905 - - 9,187,905
Improvements other than buildings 2,633,048 407,668 - 3,040,716
Machinery and equipment 4,903,682 629,462 (198,847) 5,334,297
Total Capital Assets
Being Depreciated 30,954,687 2,489,113 (198,847) 33,244,953
Less Accumulated Depreciation for
Infrastructure (1,634,653) (355,864) - (1,990,517)
Buildings and systems (2,978,078) (187,340) - (3,165,418)
Improvements other than buildings (1,242,271) (83,864) - (1,326,135)
Machinery and equipment (2,806,742) (346,148) 195,253 (2,957,637)
Total Accumulated Depreciation (8,661,744) (973,216) 195,253 (9,439,707)
Depreciated, Net 22,292,943 1,515,897 (3,594) 23,805,246
Governmental Activities
Capital Assets, Net 31,754,497$ 3,572,657$ (1,767,300)$ 33,559,854$
Total Capital Assets Being
City of Orono, Minnesota
Notes to the Financial Statements
December 31, 2020
Note 3: Detailed Notes on All Funds (Continued)
Depreciation expense was charged to functions of the governmental activities as follows:
Governmental Activities
General Government 220,937$
Public Safety 209,714
Public Works 470,382
Culture and Recreation 72,183
Total Depreciation Expense - Governmental Activities 973,216$
Beginning Ending
Balance Increases Decreases Balance
Business-type Activities
Capital Assets not Being Depreciated
Land 86,074$ -$ -$ 86,074$
Construction in progress 899,978 790,773 (1,303,283) 387,468
Total Capital Assets not
Being Depreciated 986,052 790,773 (1,303,283) 473,542
Capital Assets Being Depreciated
Buildings and systems 1,703,811 - - 1,703,811
Land Improvements 7,143 - - 7,143
Machinery and equipment 963,292 265,438 - 1,228,730
Distribution/collection system 27,103,010 1,037,844 - 28,140,854
Total Capital Assets
Being Depreciated 29,777,256 1,303,282 - 31,080,538
Less Accumulated Depreciation for
Buildings and systems (556,335) (70,541) - (626,876)
Land Improvements (6,128) (253) - (6,381)
Machinery and equipment (573,687) (52,047) - (625,734)
Distribution/collection system (10,062,495) (505,989) - (10,568,484)
Total Accumulated Depreciation (11,198,645) (628,830) - (11,827,475)
Total Capital Assets Being
Depreciated, Net 18,578,611 674,452 - 19,253,063
Business-type Activities
Capital Assets, Net 19,564,663$ 1,465,225$ (1,303,283)$ 19,726,605$
City of Orono, Minnesota
Notes to the Financial Statements
December 31, 2020
Note 3: Detailed Notes on All Funds (Continued)
Depreciation expense was charged to programs of the business-type activities as follows:
Business-type Activities
Water 208,694$
Sewer 348,371
Golf Course 60,179
Cable 11,586
Total Depreciation Expense - Business-type Activities 628,830$
C. Interfund Receivables, Payables and Transfers
The composition of interfund balances at December 31, 2020 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 2020 as shown and described below:
Transfer In
Nonmajor
Governmental
Transfer Out
General 400,000$
Water 55,000
Sewer 115,000
Total 570,000$
• The General fund transferred $400,000 to the Nonmajor Governmental funds for future capital purchases and to
support debt service funds.
• The Water and Sewer funds transferred $55,000 and $11 5,000, respectively, to the Nonmajor Governmental funds
for future debt service and capital funding.
City of Orono, Minnesota
Notes to the Financial Statements
December 31, 2020
Note 3: Detailed Notes on All Funds (Continued)
D.Long-term Debt
General Obligation Improvement (G.O.) Bonds
The bonds were issued to finance various improvements and will be repaid from taxes, special assessments and pledged
revenues.
Authorized Issue Maturity Balance at
and Issued Date Date Year End
Governmental Activites
G.O. Improvement Bonds, Series 2010A 4,315,000$ 3.00 - 3.75 %12/30/10 02/01/26 1,425,000$
G.O. Improvement Bonds, Series 2014A 5,275,000 2.00 - 3.00 06/19/14 02/01/29 2,240,000
Street Reconstruction Refunding Bonds, Series 2016A 3,505,000 2.00 - 3.00 12/11/17 02/01/23 1,520,000
Total G.O. Inmprovement Bonds 5,185,000$
Business Activites
G.O. Improvement Bonds, Series 2014A 5,275,000 2.00 - 3.00 06/19/14 02/01/29 805,000$
Interest
RateDescription
Annual debt service requirements to maturity for G.O. improvement bonds are as follows:
Year Ending
December 31,Principal Interest Total
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 495,000 46,375 541,375
2026 - 2029 1,315,000 65,880 1,380,880
Total 5,185,000$ 478,847$ 5,663,847$
Governmental Activities
Year Ending
December 31,Principal Interest Total
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 90,000 11,544 101,544
2026 - 2029 380,000 22,075 402,075
Total 805,000$ 98,628$ 903,628$
Business-type Activities
City of Orono, Minnesota
Notes to the Financial Statements
December 31, 2020
Note 3: Detailed Notes on All Funds (Continued)
Changes in Long-term Liabilities
Long-term liability activity for the year ended December 31, 2020 was as follows:
Beginning Ending Due Within
Balance Increases Decreases Balance One Year
Governmental Activities
Bonds Payable
G.O. improvement bonds 6,110,000$ -$ (925,000)$ 5,185,000$ 945,000$
Bond premium 143,851 - (25,950) 117,901 25,949
Total Bonds Payable 6,253,851 - (950,950) 5,302,901 970,949
Compensated Absences Payable 545,860 568,855 (507,958) 606,757 568,855
Governmental Activity
Long-term Liabilities 6,799,711$ 568,855$ (1,458,908)$ 5,909,658$ 1,539,804$
Business-type Activities
Bonds Payable
G.O. improvement bonds 885,000$ -$ (80,000)$ 805,000$ 80,000$
Bond premium 14,101 - (1,485) 12,616 1,485
Total Bonds Payable 899,101 - (81,485) 817,616 81,485
Compensated Absences Payable 63,241 64,938 (58,914) 69,265 64,938
Business-type Activity
Long-term Liabilities 962,342$ 64,938$ (140,399)$ 886,881$ 146,423$
City of Orono, Minnesota
Notes to the Financial Statements
December 31, 2020
Note 3: Detailed Notes on All Funds (Continued)
E.Components of Fund Balance
Fund equity balances are classified below to reflect the limitations and restrictions of the respective funds.
Municipal
State Aid Other
General Street Governmental Total
Nonspendable
Prepaid items $ 26,849 $-$-$ 26,849
Inventory 3,494 - -3,494
Total Nonspendable 30,343 - - 30,343
Restricted for
Debt service - - 2,198,263 2,198,263
Drug and Alcohol Law Enforcement - - 411,044 411,044
Home Buyer Purchase Assistance - - 140,191 140,191
Lurton Park Development and Maintenance - - 11,248 11,248
Senior Housing - - 63,747 63,747
Golf Course Improvements - - 283 283
Big Island Improvements - - 83,052 83,052
Other Improvements - - 602 602
Total Restricted - - 2,908,430 2,908,430
Committed to
Park maintnence - - 36,329 36,329
Assigned to
Capital improvements - - 2,773,589 2,773,589
Unassigned 4,516,690 (1,922,298) (1,189,215) 1,405,177
Total 4,547,033$ (1,922,298)$ 4,529,133$ 7,153,868$
City of Orono, Minnesota
Notes to the Financial Statements
December 31, 2020
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
All full-time and certain part-time employees of the City are covered by the General Employees Plan. General Employees
Plan members belong to the Coordinated Plan. Coordinated Plan members are covered by Social Security.
Public Employees Police and Fire Plan
The Police and Fire Plan, originally established for police officers and firefighters not covered by a local relief association,
now covers all police officers and firefighters hired since 1980. Effective July 1, 1999, the P olice and Fire Plan 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.
General Employee Plan Benefits
General Employee Plan benefits are based on a member’s highest average salary for any five successive years of
allowable service, age, and years of credit at termination of service. Two methods are used to compute benefits for
PERA's Coordinated Plan members. Members hired prior to July 1, 1989 receive the higher of Method 1 or Method 2
formulas. Only Method 2 is used for members hired after June 30, 1989. Under Method 1, the accrual rate for Coordinated
members is 1.2 percent of average salary for each of the first 10 years of 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.
Benefit increases are provided to benefit recipients each January. Beginning in 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.
Police and Fire Plan Benefits
Benefits for the Police and Fire Plan members first hired after June 30, 2010, but before July 1, 2014, vest on a prorated
basis from 50 percent after five years up to 100 percent after ten years of credited service. Benefits for Police and Fire
Plan members first hired after June 30, 2014 vest on a prorated basis from 50 percent after ten years up to 100 percent
after twenty years of credited service. The annuity accrual rate is 3 percent of average salary for each year of service. 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.
City of Orono, Minnesota
Notes to the Financial Statements
December 31, 2020
Note 4: Defined Benefit Pension Plans - Statewide (Continued)
Annuities, disability benefits and survivor benefits are increased effective every January 1. Beginning January 1, 2 019, the
postretirement increase will be fixed at 1 percent. Recipients that have been receiving the annuity or benefit for at least 3 6
months as of the June 30 before the effective date of the increase will receive the full increase. For recipients receiv ing
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 2020. The City’s
contributions to the General Employees Fund for the year ending December 31, 2020, 2019 and 2018 were $152,742,
$144,815 and $129,021, 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 11.30 percent of pay to 11.80 percent and employer rates
increased from 16.95 percent to 17.70 percent on January 1, 2020. The City’s contributions to the Police and Fire Fund for
the years ending December 31, 2020, 2019 and 2018 were $455,708, $411,298 and $370,490, 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, 2020, the City reported a liability of $1,630,764 for its proportionate share of the General Employees
Fund’s net pension liability. The City’s net pension liability reflected a reduction due to the State of Minnesota’s
contribution of $16 million. The State of Minnesota is considered a non-employer contributing entity and the State’s
contribution meets the definition of a special funding situation. The State of Minnesota’s proportionate share of the net
pension liability associated with the City totaled $50,397. The net pension liability was measured as of June 30, 2020, and
the total pension liability used to calculate the net pension liability was determined by an actuar ial valuation as of that
date. The City’s proportionate share of the net pension liability was based on the City’s contributions received by PERA
during the measurement period for employer payroll paid dates from July 1, 2019 through June 30, 2020 relative to the
total employer contributions received from all of PERA’s participating employers. The City’s proportionate share was
0.0272 percent which was an increase of 0.0005 from its proportion measured as of June 30, 2019.
City's Proportionate Share of the Net Pension Liability 1,630,764$
State of Minnesota's Proportionate Share of the Net Pension
Liability Associated with the City 50,397
Total 1,681,161$
For the year ended December 31, 2020, the City recognized pension expense of $63,650 for its proportionate share of the
General Employees Plan’s pension expense. In addition, the City recognized an additional $4,386 as pension expense (and
grant revenue) for its proportionate share of the State of Minnesota’s contribution of $16 million to the General Employees
Fund.
City of Orono, Minnesota
Notes to the Financial Statements
December 31, 2020
Note 4: Defined Benefit Pension Plans - Statewide (Continued)
At December 31, 2020, the City reported its proportionate share of the General Employees Plan’s deferred outflows of
resources and deferred inflows of resources, related to pensions from the following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Differences Between Expected and
Actual Economic Experience 15,108$ 10,849$
Changes in Actuarial Assumptions 1,943 61,395
Net Difference Between Projected and
Actual Earnings on Plan Investments 39,990 -
Changes in Proportion 60,712 -
Contributions to PERA Subsequent
to the Measurement Date 79,614 -
Total 197,367$ 72,244$
The $79,614 reported as deferred outflows of resources related to pensions resulting from the City’s contributions
subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended
December 31, 2021. Other amounts reported as deferred outflows and inflows of resources related to pensions will be
recognized in pension expense as follows:
(59,282)$
26,676
38,715
39,400
2021
2022
2023
2024
Police and Fire Fund Pension Costs
At December 31, 2020, the City reported a liability of $2,864,247 for its proportionate share of the Police and Fire Fund’s
net pension liability. The net pension liability was measured as of June 30, 2020, and the total pension liability used to
calculate the net pension liability was determined by an actuarial valuation as of that date. The City’s proportionate share
of the net pension liability was based on the City’s contributions received by PERA during the measurement period for
employer payroll paid dates from July 1, 2019 through June 30, 2020 relative to the total employer contributions received
from all of PERA’s participating employers. The City’s proportionate share was 0.2173 percent which was a decrease of
0.0084 from its proportionate share measured as of June 30, 2019.
The State of Minnesota also contributed $13.5 million to the Police and Fire Fund in the plan fiscal year ended
June 30, 2020. The contribution consisted of $4.5 million in direct state aid that does meet the definition of a special
funding situation and $9.0 million in fire state aid that does not meet the definition of a special funding situation. The $4 .5
million direct state was paid on October 1, 2019. Thereafter, by October 1 of each year, the state will pay $9 million to the
Police and Fire Fund until full funding is reached or July 1, 2048, whichever is earlier. The $9 million in fire state aid wi ll
continue until the fund is 90 percent funded, or until the State Patrol Plan (administered by the Minnesota State
Retirement System) is 90 percent funded, whichever occurs later
City of Orono, Minnesota
Notes to the Financial Statements
December 31, 2020
Note 4: Defined Benefit Pension Plans - Statewide (Continued)
As a result, the State of Minnesota is included as a non-employer contributing entity in the Police and Fire Retirement Plan
Schedule of Employer Allocations and Schedule of Pension Amounts by Employer, Current Reporting Period Only (pension
allocation schedules) for the $4.5 million in direct state aid. Police and Fire Plan employers need to recognize their
proportionate share of the State of Minnesota’s pension expense (and grant revenue) under GASB 68 special funding
situation accounting and financial reporting requirements For the year ended December 31, 2020, City recognized pension
expense of $327,169 for its proportionate share of the Police and Fire Fund’s pension expense. In addition, the City
recognized an additional $20,758 as pension expense (and grant revenue) for its proportionate share of the State of
Minnesota’s contribution of $4.5 million to the Police and Fire Fund.
At December 31, 2020, the City reported its proportionate share of the Police and Fire Plan’s deferred outflows of
resources and deferred inflows of resources from the following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Differences Between Expected and
Actual Economic Experience 132,233$ 171,801$
Changes in Actuarial Assumptions 1,064,951 1,890,693
Net Difference Between Projected and
Actual Earnings on Plan Investments 94,496 -
Changes in Proportion 135,168 191,268
Contributions to PEPFP Subsequent
to the Measurement Date 244,555 -
Total 1,671,403$ 2,253,762$
The $244,555 reported as deferred outflows of resources related to pensions resulting from the City’s contributions
subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended
December 31, 2021. Other amounts reported as deferred outflows and inflows of resources related to pensions will be
recognized in pension expense as follows:
(245,621)$
(795,526)
126,085
124,879
(21,730)
Thereafter (15,001)
2021
2022
2023
2024
2025
E. Actuarial Assumptions
The total pension liability in the June 30, 2020 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.
City of Orono, Minnesota
Notes to the Financial Statements
December 31, 2020
Note 4: Defined Benefit Pension Plans - Statewide (Continued)
Actuarial assumptions used in the June 30, 2020 valuation were based on the results of actuarial experience studies. The
most recent four-year experience study in the General Employees Plan was completed in 2019. The assumption changes
were adopted by the Board and become effective with the July 1, 2 020 actuarial valuation in 2020. The recommended
assumptions for that plan were adopted by the Board and will be effective with the July 1, 2021 actuarial valuations if
approved by the Legislature.
The following changes in actuarial assumptions and plan provisions occurred in 2020:
General Employees Fund
Changes in Actuarial Assumptions:
• The price inflation assumption was decreased from 2.50% to 2.25%.
• The payroll growth assumption was decreased from 3.25% to 3.00%.
• Assumed salary increase rates were changed as recommended in the June 30, 2019 experience study. The net
effect is assumed rates that average 0.25% less than previous rates.
• Assumed rates of retirement were changed as recommended in the June 30, 2019 experience study. The changes
result in more unreduced (normal) retirements and slightly fewer Rule of 90 and early retirements.
• Assumed rates of termination were changed as recommended in the June 30, 2019 experience study. The new
rates are based on service and are generally lower than the previous rates for years 2-5 and slightly higher
thereafter.
• Assumed rates of disability were changed as recommended in the June 30, 2019 experience study. The change
results in fewer predicted disability retirements for males and females.
• The base mortality table for healthy annuitants and employees was changed from the RP -2014 table to the Pub-
2010 General Mortality table, with adjustments. The base mortality table for disabled annuitants was changed
from the RP-2014 disabled annuitant mortality table to the PUB-2010 General/Teacher disabled annuitant
mortality table, with adjustments.
• The mortality improvement scale was changed from Scale MP-2018 to Scale MP-2019.
• The assumed spouse age difference was changed from two years older for females to one year older.
• The assumed number of married male new retirees electing the 100% Joint & Survivor option changed from 35%
to 45%. The assumed number of married female new retirees electing the 100% Joint & Survivor option changed
from 15% to 30%. The corresponding number of married new retirees electing the Life annuity option was
adjusted accordingly.
Changes in Plan Provisions:
• Augmentation for current privatized members was reduced to 2.0% for the period July 1, 2020 through
December 31, 2023 and 0.0% after. Augmentation was eliminated for privatizations occurring after June 30, 2020.
City of Orono, Minnesota
Notes to the Financial Statements
December 31, 2020
Note 4: Defined Benefit Pension Plans - Statewide (Continued)
Police and Fire Fund
Changes in Actuarial Assumptions:
• The mortality projection scale was changed from MP-2018 to MP-2019.
Changes in Plan Provisions :
• There have been no changes since the prior valuation.
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 %
Alternative Assets (Private Markets)25.0 5.90
Bonds (Fixed Income)20.0 0.75
International Stocks 17.5 5.30
Cash 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 2020 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 r ates set in
Minnesota statutes. Based on these assumptions, the fiduciary net position of the G eneral 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.
City of Orono, Minnesota
Notes to the Financial Statements
December 31, 2020
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, calculat ed
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 2,613,550$ 1,630,764$ 820,045$
Police and Fire Fund 5,708,856 2,864,247 510,831
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 5: 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 repo rt.
Inactive Plan Members or Beneficiaries Currently Receiving Benefit Payments 5
Active Plan Members 53
Total Plan Members 58
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, 2020, the
City’s average contribution rate was .5 percent of covered-employee payroll. For fiscal year 2020, the City contributed
$30,694 to the plan. As of January 1, 2020, there were five retirees receiving health benefits from the City’s health plan.
City of Orono, Minnesota
Notes to the Financial Statements
December 31, 2020
Note 5: Postemployment Benefits Other Than Pensions (Continued)
C. Actuarial Methods and Assumptions
The City’s total OPEB liability of $904,145 was measured as of January 1, 2020, and the total OPEB liability used to
calculate the total OPEB liability was determined by an actuarial valuation as of January 1, 2020. Roll forward procedures
were used to roll forward the total OPEB liability to the measurement date.
The total OPEB liability in the January 1, 2020 actuarial valuation was determined using the following actuarial
assumptions, applied to all periods included in the measurement, unless ot herwise specified:
Discount Rate 2.74%
Expected Long-Term Investment Return N/A
20-Year Municipal Bond Yield 3.30%
Inflation Rate 2.50%
Salary Increases 3.25%
Medical Trend Rate 7.67% in 2020 grading to 5% over 10 years
The discount rate used to measure the total OPEB liability was 2.74 percent as of January 1, 2020. Mortality rates were
based on the RP-2014 White Collar Mortality Tables (de-trended to 2006) and then projected beyond the valuation date
using scale MP-2017.
The actuarial assumptions used in the January 1, 2020 valuation were based on input from a variety of published sources
of historical and projected future financial data. Each assumption was reviewed for reasonableness with the source
information as well as for consistency with the other economic assumptions.
D. Changes in the Total OPEB Liability
Total OPEB
Liability
(a)
Balances at December 31, 2019 873,437$
Changes for the Year:
Service cost 87,721
Interest 38,684
Differences between expected and actual experience (179,406)
Changes in assumptions or other inputs 114,403
Benefit payments (30,694)
Net Changes 30,708
Balances at December 31, 2020 904,145$
Since the prior measurement date, the following assumptions changed:
• The discount rate was changed from 4.09% to 2.74%.
City of Orono, Minnesota
Notes to the Financial Statements
December 31, 2020
Note 5: 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 w ere
calculated using a discount rate that is 1-percentage point lower (1.74 percent) or 1-percentage-point higher (3.74
percent) than the current discount rate:
1 Percent 1 Percent
Decrease (1.74%)Current (2.74%)Increase (3.74%)
982,132$ 904,145$ 830,597$
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 (6.67 percent decreasing to 5.67 percent)
or 1-percentage-point higher (8.67 percent increasing to 7.67 percent) than the current cost trend rate:
Healthcare Cost
1 Percent Decrease Trend Rates 1 Percent Increase
(6.67% Decreasing (7.67% Decreasing (8.67% Decreasing
to 5.67%)to 6.67%)to 7.67%)
786,208$ 904,145$ 1,044,862$
Note 6: 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 claim s in excess of various amounts. The City retains risk for the
deductible portion of the insurance policies and for any exclusion s 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.
City of Orono, Minnesota
Notes to the Financial Statements
December 31, 2020
Note 6: 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 severa l 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 serv ices 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.
City of Orono, Minnesota
Notes to the Financial Statements
December 31, 2020
Note 7: Subsequent Event
On January 30, 2020, the World Health Organization (“WHO”) announced a global health emergency because of a new
strain of coronavirus (“COVID-19”) and the risks to the international community as virus spreads globally. On
March 11, 2020, the WHO classified the COVID-19 outbreak as a pandemic, based on the rapid increase in exposure
globally. In response to the pandemic, the State of Minnesota has issued stay-at-home orders and other measures aimed
at slowing the spread of the coronavirus.
The full impact of the COVID-19 outbreak continues to evolve as of the date of this report. Due to the rapid development
and fluidity of this situation, the City cannot determine the ultimate impact that the COVID-19 pandemic will have on its
financial condition, liquidity, and future revenue collection, and therefore any prediction as to the ultimate impact on the
City’s financial condition, liquidity, and future results of its revenue collections is uncertain.
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REQUIRED SUPPLEMENTARY INFORMATION
CITY OF ORONO, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2020
City of Orono, Minnesota
Required Supplementary Information
For the Year Ended December 31, 2020
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)
06/30/20 0.0272 %1,630,764$ 50,397$ 1,681,161$ 1,942,203$ 84.0 %79.0 %
06/30/19 0.0267 1,476,182 45,831 1,522,013 1,823,839 80.9 80.2
06/30/18 0.0256 1,420,183 - 1,420,183 1,679,073 84.6 79.5
06/30/17 0.0254 1,621,519 - 1,621,519 1,623,207 99.9 75.9
06/30/16 0.0259 2,102,952 - 2,102,952 1,570,420 133.9 68.9
06/30/15 0.0265 1,373,368 - 1,373,368 766,147 179.3 78.2
City's
City's
Liability as a
Percentage of
Proportionate
Share of the
Net Pension
Plan Fiduciary
the Net Pension of the Total
Liability Pension Liability
Net Position
Proportion of as a Percentage
Payroll
(a/c)
Covered
Note: Schedule is intended to show 10-year trend. Additional years will be reported as they become available.
Schedule of Employer’s PERA Contributions - General Employees Fund
Contributions in
Relation to the
Statutorily Statutorily Contribution City's
Required Required Deficiency Covered
Year Contribution Contribution (Excess) Payroll
Ending (a)(b)(a-b)(c)
12/31/20 152,742$ 152,742$ -$ 2,036,563$ 7.50 %
12/31/19 144,815 144,815 - 1,930,863 7.50
12/31/18 129,021 129,021 - 1,720,280 7.50
12/31/17 122,479 122,479 - 1,633,053 7.50
12/31/16 122,115 122,115 - 1,628,200 7.50
12/31/15 119,404 119,404 - 1,592,053 7.50
(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.
City of Orono, Minnesota
Required Supplementary Information (Continued)
For the Year Ended December 31, 2020
Notes to the Required Supplementary Information - General Employees Fund
Changes in Actuarial Assumptions
2020 - The price inflation assumption was decreased from 2.50% to 2.25%. The payroll growth assumption was
decreased from 3.25% to 3.00%. Assumed salary increase rates were changed as recommended in the June 30, 2019
experience study. The net effect is assumed rates that average 0.25% less than previous rates. Assumed r ates of
retirement were changed as recommended in the June 30, 2019 experience study. The changes result in more unreduced
(normal) retirements and slightly fewer Rule of 90 and early retirements. Assumed rates of termination were changed as
recommended in the June 30, 2019 experience study. The new rates are based on service and are generally lower than the
previous rates for years 2-5 and slightly higher thereafter. Assumed rates of disability were changed as recommended in
the June 30, 2019 experience study. The change results in fewer predicted disability retirements for males and females.
The base mortality table for healthy annuitants and employees was changed from the RP -2014 table to the Pub-2010
General Mortality table, with adjustments. The base mortality table for disabled annuitants was changed from the RP-
2014 disabled annuitant mortality table to the PUB -2010 General/Teacher disabled annuitant mortality table, with
adjustments. The mortality improvement scale was changed from Scale MP-2018 to Scale MP-2019. The assumed
spouse age difference was changed from two years older for females to one year older. The assumed number of married
male new retirees electing the 100% Joint & Survivor option changed from 35% to 45%. The assumed number o f married
female new retirees electing the 100% Joint & Survivor option changed from 15% to 30%. The corresponding number of
married new retirees electing the Life annuity option was adjusted accordingly.
2019 - The mortality projection 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.
City of Orono, Minnesota
Required Supplementary Information (Continued)
For the Year Ended December 31, 2020
Notes to the Required Supplementary Information - General Employees Fund (Continued)
Changes in Plan Provisions
2020 - Augmentation for current privatized members was reduced to 2.0% for the period July 1, 2020 through
December 31, 2023 and 0.0% after. Augmentation was eliminated for privatizations occurring after June 30, 2020.
2019 - The employer supplemental contribution was changed prospectively, decreasing from $31.0 million to $21.0
million per year. The state’s special funding contribution was changed prospectively, requiring $16.0 million due per year
through 2031.
2018 - The augmentation adjustment in early retirement factors is eliminated over a five-year period starting July 1, 2019,
resulting in actuarial equivalence after June 30, 2024. Interest credited on member contributions decreased from 4.00
percent to 3.00 percent, beginning July 1, 2018. Deferred augmentation was changed to 0.00 percent, effective
January 1, 2019. Augmentation that has already accrued for deferred members will still apply. Contribution stabilizer
provisions were repealed. Postretirement benefit increases were changed from 1.00 percent per year with a provision to
increase to 2.50 percent upon attainment of 90.00 percent funding ratio to 50.00 percent of the Social Security Cost of
Living Adjustment, not less than 1.00 percent and not more than 1.50 percent, beginning J anuary 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 fac tors were updated to reflect
revised mortality and interest assumptions.
2017 - The State’s contribution for the Minneapolis Employees Retirement Fund equals $16,000,000 in 2017 and 2018,
and $6,000,000 thereafter. The Employer Supplemental Contribution for the Minneapolis Employees Retirement Fund
changed from $21,000,000 to $31,000,000 in calendar years 2019 to 2031. The state’s contribution changed from
$16,000,000 to $6,000,000 in calendar years 2019 to 2031.
2016 - No changes noted
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 $892 million.
Upon consolidation, state and employer contributions were revised.
City of Orono, Minnesota
Required Supplementary Information (Continued)
For the Year Ended December 31, 2020
Schedule of Employer’s Share of PERA Net Pension Liability - Public Employees Police and Fire Fund
State's
Proportionate
City's Share of
Proportionate the Net Pension
Share of Liability City's
Fiscal the Net Pension Associated with Covered
Year Liability the City Total Payroll
Ending (a)(b)(a+b)(c)
06/30/20 0.2173 % 2,864,247$ 67,471$ 2,931,718$ 2,453,352$ 116.7 % 87.2 %
06/30/19 0.2257 2,402,804 - 2,402,804 2,363,617 101.7 89.3
06/30/18 0.2170 2,312,996 - 2,312,996 2,237,340 103.4 88.8
06/30/17 0.2130 2,875,753 - 2,875,753 2,144,407 134.1 85.4
06/30/16 0.2180 8,748,719 - 8,748,719 2,078,460 420.9 63.9
06/30/15 0.2310 2,624,701 - 2,624,701 2,101,111 124.9 86.6
Liability as a Plan Fiduciary
City's
Proportionate
Share of the
Net Pension
City's Percentage of Net Position
Proportion of Covered as a Percentage
the Net Pension Payroll of the Total
Liability (a/c)Pension Liability
Note: Schedule is intended to show 10-year trend. Additional years will be reported as they become available.
Schedule of Employer’s PERA Contributions - 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)
12/31/20 455,708$ 455,708$ -$ 2,574,623$ 17.70 %
12/31/19 411,298 411,298 - 2,538,879 16.20
12/31/18 370,490 370,490 - 2,286,975 16.20
12/31/17 358,655 358,655 - 2,187,704 16.20
12/31/16 340,380 340,380 - 2,101,111 16.20
12/31/15 330,041 330,041 - 2,055,809 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.
City of Orono, Minnesota
Required Supplementary Information (Continued)
For the Year Ended December 31, 2020
Notes to the Required Supplementary Information - Police and Fire Fund
Changes in Actuarial Assumptions
2020 - The mortality projection scale was changed from MP-2018 to MP-2019
2019 - The mortality projection scale was changed from MP-2017 to MP-2018.
2018 - The mortality projection scale was changed from MP-2016 to MP-2017. 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 v ested 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 fac tor 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.
City of Orono, Minnesota
Required Supplementary Information (Continued)
For the Year Ended December 31, 2020
Notes to the Required Supplementary Information - Police and Fire Fund (Continued)
Changes in Plan Provisions
2020 - No changes noted
2019 - No changes noted
2018 - As set by statute, the assumed post-retirement benefit increase was changed from 1.0 percent per year through
2064 and 2.5 percent per year, thereafter, to 1.0 percent for all years, with no trigger. An end date of July 1, 2048 was
added to the existing $9.0 million state contribution. New annual state aid will equal $4.5 million in fiscal years 2019 and
2020, and $9.0 million thereafter until the plan reaches 100 percent funding, or July 1, 2048, if earlier. Member
contributions were changed from 10.80 percent to 11.30 percent of pay, effective January 1, 2019 and 11.80 percent of
pay, effective January 1, 2020. Employer contributions were changed from 16.20 percent to 16.95 percent of pay,
effective January 1, 2019 and 17.70 percent of pay, effective January 1, 2020. Interest credited on member contributions
decreased from 4.00 percent to 3.00 percent, beginning July 1, 2018. Deferred augmentation was changed to 0.00
percent, effective January 1, 2019. Augmentation that has already accrued for deferred members will still apply.
Actuarial equivalent factors were updated to reflect revised mortality and interest assumptions.
2017 - 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 30.00 percent for vested and non -vested,
deferred members. The CSA has been changed to 33.00 percent for vested members and 2.00 percent for non -vested
members. The base mortality table for healthy annuitants was changed from the RP-2000 fully generational table to the
RP-2014 fully generational table (with a base year of 2006), with male rates adjusted by a factor of 0.96. The mortality
improvement scale was changed from Scale AA to Scale MP-2016. The base mortality table for disabled annuitants was
changed from the RP-2000 disabled mortality table to the mortality tables assumed for healthy retirees. Assumed
termination rates were decreased to 3.00 percent for the first three years of service. Rates beyond the select period of
three years were adjusted, resulting in more expected terminations overall. Assumed percentage of married female
members was decreased from 65.00 percent to 60.00 percent. Assumed age difference was changed from separate
assumptions for male members (wives assumed to be three years younger) and female members (husbands assumed to
be four years older) to the assumption that males are two years older than females. The assumed percentage of female
members electing joint and survivor annuities was increased. The assumed postretirement benefit increase rate was
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 5.60 percent per annum to 7.50 percent per annum.
2016 - No changes noted
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.
City of Orono, Minnesota
Required Supplementary Information (Continued)
For the Year Ended December 31, 2020
Schedule of Changes in the City’s Total OPEB Liability and Related Ratios
2020 2020 2019
Total OPEB Liability
Service cost 87,721$ 90,925$ 82,950$
Interest 38,684 31,294 30,294
Differences between expected and actual experience (179,406) - -
Changes in assumptions 114,403 (49,156) 23,193
Benefit payments (30,694) (36,813) (35,472)
Net Change in Total OPEB Liability 30,708 36,250 100,965
Total OPEB Liability - Beginning 873,437 837,187 736,222
Total OPEB Liability - Ending 904,145$ 873,437$ 837,187$
Covered Payroll 4,200,000$ 4,000,000$ 3,900,000$
City's total OPEB liability as a percentage of
covered payroll 21.53 % 21.84 % 21.47 %
Note: Schedule is intended to show 10-year trend. Additional years will be reported as they become available.
COMBINING AND INDIVIDUAL FUND
FINANCIAL STATEMENTS AND SCHEDULES
CITY OF ORONO, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2020
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NONMAJOR GOVERNMENTAL FUNDS
City of Orono, Minnesota
Nonmajor Governmental Funds
Combining Balance Sheet
December 31, 2020
Total
Nonmajor
Special Debt Capital Governmental
Revenue Service Projects Funds
Assets
Cash and temporary investments 592,108$ 2,186,088$ 2,510,076$ 5,288,272$
Receivables
Accrued interest 2,387 4,169 6,099 12,655
Taxes - 23,121 16,406 39,527
Special assessments 33,600 - 3,233 36,833
Due from other governments 150,317 11,081 6,497 167,895
Total Assets 778,412$ 2,224,459$ 2,542,311$ 5,545,182$
Liabilities
Accounts and contracts payable 214,711$ 3,075$ 410,287$ 628,073$
Due to other funds - - 139,504 139,504
Unearned revenue - - 22,112 22,112
Total Liabilities 214,711 3,075 571,903 789,689
Deferred Inflows of Resources
Unavailable revenues - delinquent taxes - 23,121 16,406 39,527
Unavailable revenues - special assessments 33,600 - 3,233 36,833
Unavailable revenues - Intergovernmental 150,000 - -150,000
Total Deferred Inflows of Resources 183,600 23,121 19,639 226,360
Fund Balances
Restricted 710,167 2,198,263 - 2,908,430
Committed 36,329 - - 36,329
Assigned - - 2,773,589 2,773,589
Unassigned (366,395) - (822,820) (1,189,215)
Total Fund Balances 380,101 2,198,263 1,950,769 4,529,133
Total Liabilities, Deferred Inflows
of Resources and Fund Balances 778,412$ 2,224,459$ 2,542,311$ 5,545,182$
City of Orono, Minnesota
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
For the Year Ended December 31, 2020
Total
Nonmajor
Special Debt Capital Governmental
Revenue Service Projects Funds
Revenues
Taxes 82,686$ 705,821$ 607,213$ 1,395,720$
Special assessments 33,955 - 1,926 35,881
Licenses and permits 5,550 - - 5,550
Intergovernmental 509,498 141,388 - 650,886
Charges for services 18,643 - 105,038 123,681
Fines and forfeitures 28,427 - - 28,427
Investment earnings 15,774 30,124 55,951 101,849
Miscellaneous 81,874 - 20,099 101,973
Total Revenues 776,407 877,333 790,227 2,443,967
Expenditures
Current
General government 373,223 - - 373,223
Public safety 6,252 - - 6,252
Parks and recreation 48,232 - - 48,232
Community development 111,781 - - 111,781
Capital outlay
Public works - - 1,547,199 1,547,199
Parks and recreation 808,910 - - 808,910
Debt service
Principal - 925,000 - 925,000
Interest and other charges - 164,613 - 164,613
Total Expenditures 1,348,398 1,089,613 1,547,199 3,985,210
Deficiency of Revenues
Under Expenditures (571,991) (212,280) (756,972) (1,541,243)
Other Financing Sources
Transfers in - 270,000 300,000 570,000
Net Change in Fund Balances (571,991) 57,720 (456,972) (971,243)
Fund Balances, January 1 952,092 2,140,543 2,407,741 5,500,376
Fund Balances, December 31 380,101$ 2,198,263$ 1,950,769$ 4,529,133$
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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.
CARES Fund accounts for revenues from and expenditures related to uses of the coronavirus relief funds.
City of Orono, Minnesota
Nonmajor Special Revenue Funds
Subcombining Balance Sheet
December 31, 2020
225 231 233 234
Drug
and Felony Affordable Lurton
Park Forfeiture Housing Park
Assets
Cash and temporary investments (207,167)$ 411,298$ 139,901$ 47,534$
Receivables
Accrued interest 1,008 801 290 43
Special assessments - - - -
Due from other governments 150,000 - - -
Total Assets (56,159)$ 412,099$ 140,191$ 47,577$
Liabilities
Accounts and contracts payable 160,236$ 1,055$ -$ -$
Deferred Inflows of Resources
Unavailable revenues - special assessments - - - -
Unavailable revenues - Intergovernments 150,000 - - -
Total Deferred Inflows of Resources 150,000 - - -
Fund Balances
Restricted - 411,044 140,191 11,248
Committed - -- 36,329
Unassigned (366,395) - - -
Total Fund Balances (366,395) 411,044 140,191 47,577
Total Liabilities, Deferred Inflows
of Resources and Fund Balances (56,159)$ 412,099$ 140,191$ 47,577$
235 237 238 239 240
Carmen Bay
Senior Golf Course Lake CARES
Housing TIF Improvement Big Island Improvement Fund Total
100,578$ 282$ 83,052$ 16,630$ -$ 592,108$
244 1 - - - 2,387
- - - 33,600 - 33,600
- - - 317 - 150,317
100,822$ 283$ 83,052$ 50,547$ -$ 778,412$
37,075$ -$ -$ 16,345$ -$ 214,711$
- - - 33,600 - 33,600
- - - - - 150,000
- - - 33,600 183,600
63,747 283 83,052 602 - 710,167
- - - - - 36,329
- - - - (366,395)
63,747 283 83,052 602 - 380,101
100,822$ 283$ 83,052$ 50,547$ -$ 778,412$
City of Orono, Minnesota
Nonmajor Special Revenue Funds
Subcombining Statement of Revenues, Expenditures
and Changes in Fund Balances
For the Year Ended December 31, 2020
225 231 233 234
Drug
and Felony Affordable Lurton
Park Forfeiture Housing Park
Revenues
Taxes -$ -$ -$ -$
Special assessments - - - -
Licenses and permits 5,550 - - -
Intergovernmental 136,275 - - -
Charges for services - - - 18,643
Fines and forfeitures - 28,427 - -
Investment earnings 1,960 7,742 2,685 796
Miscellaneous 5,615 - - 149
Total Revenues 149,400 36,169 2,685 19,588
Expenditures
Current
General Government - - - -
Public safety - 6,252 - -
Parks and recreation 685 - - 3,766
Community development - - - -
Capital outlay
Parks and recreation 808,910 - - -
Total Expenditures 809,595 6,252 - 3,766
Net Change in Fund Balances (660,195) 29,917 2,685 15,822
Fund Balances, January 1 293,800 381,127 137,506 31,755
Fund Balances, December 31 (366,395)$ 411,044$ 140,191$ 47,577$
235 237 238 239 240
Carmen Bay
Senior Golf Course Lake CARES
Housing TIF Improvement Big Island Improvement Fund Total
82,686$ -$ -$ -$ -$ 82,686$
- - - 33,955 - 33,955
- - - - - 5,550
- - - - 373,223 509,498
- - - - - 18,643
- - - - - 28,427
1,464 6 942 179 - 15,774
- - 76,110 - - 81,874
84,150 6 77,052 34,134 373,223 776,407
- - - - 373,223 373,223
- - - - - 6,252
- - - 43,781 - 48,232
111,781 - - - - 111,781
- - - - - 808,910
111,781 - - 43,781 373,223 1,348,398
(27,631) 6 77,052 (9,647) - (571,991)
91,378 277 6,000 10,249 - 952,092
63,747$ 283$ 83,052$ 602$ -$ 380,101$
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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.
2010 General Obligation Bonds accounts for resources accumulated and payments for principal and interest associated
with financing the 2010 street reconstruction project.
2000 Improvement Bonds accounts for resources accumulated and payments for principal and interest associated with
financing improvement projects.
2016 Refunding Bonds accounts for resources accumulated and payments for principal and interest on the 2016
Refunding bonds.
City of Orono, Minnesota
Nonmajor Debt Service Funds
Subcombining Balance Sheet
December 31, 2020
321 322 323
2000 2016
2010 General Improvement Refunding
Obligation Bonds Bonds Bonds Total
Assets
Cash and temporary investments 591,876$ 761,208$ 833,004$ 2,186,088$
Receivables
Accrued interest 1,068 1,559 1,542 4,169
Taxes 4,250 5,789 13,082 23,121
Due from other governments 2,285 2,636 6,160 11,081
Total Assets 599,479$ 771,192$ 853,788$ 2,224,459$
Liabilities
Accounts payable 1,025$ 1,025$ 1,025$ 3,075$
Deferred Inflows of Resources
Unavailable revenues - delinquent taxes 4,250 5,789 13,082 23,121
Fund Balances
Restricted 594,204 764,378 839,681 2,198,263
Total Liabilities, Deferred Inflows
of Resources and Fund Balances 599,479$ 771,192$ 853,788$ 2,224,459$
City of Orono, Minnesota
Nonmajor Debt Service Funds
Subcombining Statement of Revenues, Expenditures
and Changes in Fund Balances
For the Year Ended December 31, 2020
321 322 323
2000 2016
2010 General Improvement Refunding
Obligation Bonds Bonds Bonds Total
Revenues
Taxes 136,222$ 161,190$ 408,409$ 705,821$
Intergovernmental 141,388 - - 141,388
Investment earnings 8,084 12,148 9,892 30,124
Total Revenues 285,694 173,338 418,301 877,333
Expenditures
Debt service
Principal 215,000 225,000 485,000 925,000
Interest and other charges 59,519 63,344 41,750 164,613
Total Expenditures 274,519 288,344 526,750 1,089,613
Excess (Deficiency) of Revenues
Over (Under) Expenditures 11,175 (115,006) (108,449) (212,280)
Other Financing Sources
Transfers in - 100,000 170,000 270,000
Net Change in Fund Balances 11,175 (15,006) 61,551 57,720
Fund Balances, January 1 583,029 779,384 778,130 2,140,543
Fund Balances, December 31 594,204$ 764,378$ 839,681$ 2,198,263$
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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.
Pavement Management Plan Fund accounts for the construction costs related to the pavement management plan.
City of Orono, Minnesota
Nonmajor Capital Projects Funds
Subcombining Balance Sheet
December 31, 2020
405 406 408
Improvement Permanent Community
Equipment Revolving Investment
Outlay Improvement Construction
Assets
Cash and temporary investments 620,755$ 1,514,135$ 653,805$
Receivables
Accrued interest 1,406 3,090 1,461
Taxes - - -
Special assessments - 3,233 -
Due from other governments - --
Total Assets 622,161$ 1,520,458$ 655,266$
Liabilities
Accounts and contracts payable 68,718$ -$ 818$
Due to other funds - - -
Unearned revenue - - -
Total Liabilities 68,718 - 818
Deferred Inflows of Resources
Unavailable revenues - delinquent taxes - - -
Unavailable revenues - special assessments - 3,233 -
Total Deferred Inflows
of Resources - 3,233 -
Fund Balances
Assigned 553,443 1,517,225 654,448
Unassigned - - -
Total Fund Balances 553,443 1,517,225 654,448
Total Liabilities, Deferred
Inflows of Resources
and Fund Balances 622,161$ 1,520,458$ 655,266$
425 430 435
Navarre Big Island Pavement
Fire Station Public Management
Construction Project Plan Total
936$ 47,395$ (326,950)$ 2,510,076$
9 133 - 6,099
- - 16,406 16,406
- - - 3,233
- - 6,497 6,497
945$ 47,528$ (304,047)$ 2,542,311$
-$ -$ 340,751$ 410,287$
- - 139,504 139,504
- - 22,112 22,112
- - 502,367 571,903
- - 16,406 16,406
- - - 3,233
- - 16,406 19,639
945 47,528 - 2,773,589
- - (822,820) (822,820)
945 47,528 (822,820) 1,950,769
945$ 47,528$ (304,047)$ 2,542,311$
City of Orono, Minnesota
Nonmajor Capital Projects Funds
Subcombining Statement of Revenues, Expenditures
and Changes in Fund Balances
For the Year Ended December 31, 2020
405 406 408
Improvement Permanent Community
Equipment Revolving Investment
Outlay Improvement Construction
Revenues
Taxes -$ -$ -$
Special assessments - 1,926 -
Charges for services - - -
Investment earnings 13,008 28,892 13,124
Miscellaneous 5,305 14,794 -
Total Revenues 18,313 45,612 13,124
Expenditures
Capital outlay
Public works 451,584 - 48,723
Excess (Deficiency) of Revenues
Over (Under) Expenditures (433,271) 45,612 (35,599)
Other Financing Sources
Transfers in 300,000 - -
Net Change in Fund Balances (133,271) 45,612 (35,599)
Fund Balances, January 1 686,714 1,471,613 690,047
Fund Balances, December 31 553,443$ 1,517,225$ 654,448$
425 430 435
Navarre Big Island Pavement
Fire Station Public Management
Construction Project Plan Total
-$ -$ 607,213$ 607,213$
- - - 1,926
- - 105,038 105,038
18 909 - 55,951
- - - 20,099
18 909 712,251 790,227
- - 1,046,892 1,547,199
18 909 (334,641) (756,972)
- - - 300,000
18 909 (334,641) (456,972)
927 46,619 (488,179) 2,407,741
945$ 47,528$ (822,820)$ 1,950,769$
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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.
Recycling Cable Television Total
Assets
Current Assets
Cash and temporary investments 50,842$ 8,806$ 59,648$
Receivables
Accrued interest 126 368 494
Accounts 7,724 19,754 27,478
Total Current Assets 58,692 28,928 87,620
Noncurrent Assets
Capital assets
Machinery and equipment - 238,311 238,311
Less accumulated depreciation - (37,284) (37,284)
Total Noncurrent Assets - 201,027 201,027
Total Assets 58,692 229,955 288,647
Deferred Outflows of Resources
Deferred pension resources 1,580 3,355 4,935
Liabilities
Current Liabilities
Accrued salaries payable 129 261 390
Noncurrent Liabilities
Net pension liability 13,051 27,724 40,775
Total Liabilities 13,180 27,985 41,165
Deferred Inflows of Resources
Deferred pension resources 578 1,228 1,806
Net Position
Investment in capital assets - 201,027 201,027
Unrestricted 46,514 3,070 49,584
Total Net Position 46,514$ 204,097$ 250,611$
City of Orono, Minnesota
Combining Statement of Net Position
Nonmajor Proprietary Funds
December 31, 2020
Business-type Activities - Enterprise Funds
Recycling Cable Television Total
Operating Revenues
Charges for services 206,869$ 79,513$ 286,382$
Operating Expenses
Personnel services 21,337 43,455 64,792
Supplies 33 244 277
Professional services 192,785 37,257 230,042
Depreciation - 11,586 11,586
Other 13,771 - 13,771
Total Operating Expenses 227,926 92,542 320,468
Operating Loss (21,057) (13,029) (34,086)
Nonoperating Revenues
Investment earnings 962 548 1,510
Miscellaneous revenues 5,169 75 5,244
Total Nonoperating
Revenues 6,131 623 6,754
Change in Net Position (14,926) (12,406) (27,332)
Net Position - January 1 61,440 216,503 277,943
Net Position, December 31 46,514$ 204,097$ 250,611$
City of Orono, Minnesota
Combining Statement of Revenues, Expenses and Changes in Net Position
Nonmajor Proprietary Funds
For the Year Ended December 31, 2020
Business-type Activities - Enterprise Funds
Recycling Cable Television Total
Cash Flows from Operating Activities
Receipts from customers and users 217,488$ 79,383$ 296,871$
Other operating receipts 5,169 75 5,244
Payments to suppliers (206,589) (65,716) (272,305)
Payments to employees (18,726) (38,206) (56,932)
Net Cash Provided (Used) by
Operating Activities (2,658) (24,464) (27,122)
Cash Flows from Capital and
Related Financing Activities
Acquisition of capital assets - (97,477) (97,477)
Cash Flows from Investing Activities
Investment receipts 982 561 1,543
Net Decrease in
Cash and Cash Equivalents (1,676) (121,380) (123,056)
Cash and Cash Equivalents, January 1 52,518 130,186 182,704
Cash and Cash Equivalents, December 31 50,842$ 8,806$ 59,648$
Reconciliation of Operating Loss
to Net Cash Provided (Used) by Operating Activities
Operating loss (21,057)$ (13,029)$ (34,086)$
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities
Depreciation - 11,586 11,586
Other income related to operations 5,169 75 5,244
(Increase) decrease in assets/deferred
outflows of resources
Accounts receivable 10,619 (130) 10,489
Deferred pension resources (549) (1,130) (1,679)
Increase (decrease) in liabilities/deferred
inflows of resources
Accounts and contracts payable - (28,215) (28,215)
Accrued salaries payable (232) (484) (716)
Net pension liability 4,405 9,069 13,474
Deferred pension resources (1,013) (2,206) (3,219)
Net Cash Provided (Used) by
Operating Activities (2,658)$ (24,464)$ (27,122)$
City of Orono, Minnesota
Combining Statement of Cash Flows
Nonmajor Proprietary Funds
For the Year Ended December 31, 2020
Business-type Activities - Enterprise Funds
City of Orono, Minnesota
General Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual
For the Year Ended December 31, 2020
Actual Variance with
Original Final Amounts Final Budget
Revenues
Taxes 4,689,000$ 4,689,000$ 4,647,514$ (41,486)$
Licenses and permits 532,200 532,200 497,164 (35,036)
Intergovernmental 398,000 398,000 532,205 134,205
Charges for services 3,338,700 3,338,700 3,454,436 115,736
Fines and forfeitures 75,100 75,100 44,001 (31,099)
Investment earnings 77,100 77,100 61,661 (15,439)
Miscellaneous
Rents and refunds 5,400 5,400 4,950 (450)
Other 7,700 7,700 34,621 26,921
Total Revenues 9,123,200 9,123,200 9,276,552 153,352
Expenditures
Current
General government
Administration 461,300 461,300 443,452 17,848
Election 69,500 69,500 51,483 18,017
Assessing 203,000 203,000 203,333 (333)
Finance 276,100 276,100 217,418 58,682
Legal 134,000 134,000 104,528 29,472
Human services 12,400 12,400 9,500 2,900
Central services 315,100 315,100 329,388 (14,288)
Total general government 1,471,400 1,471,400 1,359,102 112,298
Public Saftey
Police 4,688,800 4,688,800 4,476,123 212,677
Fire 433,900 433,900 433,954 (54)
Inspection and Zoning 713,300 713,300 683,559 29,741
Total public saftey 5,836,000 5,836,000 5,593,636 242,364
Public Works
Streets 787,300 787,300 1,089,733 (302,433)
Parks and Recreation
Golf Course 233,500 233,500 278,119 (44,619)
Other 230,000 230,000 243,995 (13,995)
Total parks and recreation 463,500 463,500 522,114 (58,614)
Capital Outlay
Public Saftey 185,000 185,000 212,438 (27,438)
Total Expenditures 8,743,200 8,743,200 8,777,023 (33,823)
Excess of Revenues
Over Expenditures 380,000 380,000 499,529 119,529
Other Financing Sources (Uses)
Proceeds from sale of capital assets 20,000 20,000 39,811 19,811
Transfers out (400,000) (400,000) (400,000) -
Total Other Financing
Sources (Uses)(380,000) (380,000) (360,189) 19,811
Net Change in Fund Balances - - 139,340 139,340
Fund Balances, January 1 4,407,693 4,407,693 4,407,693 -
Fund Balances, December 31 4,407,693$ 4,407,693$ 4,547,033$ 139,340$
Budget Amounts
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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.
City of Orono, Minnesota
Internal Service Funds
Combining Statement of Net Position
December 31, 2020
703 705 701 710
Insurance Compensated Fleet
Fund Absences Management IT Services Total
Assets
Current Assets
Cash and temporary investments 210,311$ 728,664$ 52,578$ (104,832)$ 886,721$
Receivables
Accrued interest 462 1,212 - - 1,674
Prepaid items 8,000 - - 32,552 40,552
Total Assets 218,773 729,876 52,578 (72,280) 928,947
Liabilities
Current Liabilities
Accounts and contracts payable 2,500 - 8,933 1,025 12,458
Accrued salaries payable 170 - - 1,042 1,212
Total Liabilities 2,670 - 8,933 2,067 13,670
Net Position
Unrestricted 216,103$ 729,876$ 43,645$ (74,347)$ 915,277$
City of Orono, Minnesota
Internal Service Funds
Combining Statement of Revenues, Expenses and Changes in Net Position
For the Year Ended December 31, 2020
703 705 701 710
Insurance Compensated Fleet
Fund Absences Management IT Services Total
Operating Revenues
Charges for services 414,185$ -$ 6,639$ -$ 420,824$
Other 9,257 87,840 153,700 225,000 475,797
Total Operating Revenues 423,442 87,840 160,339 225,000 896,621
Operating Expenses
Personnel services 209,494 - - 82,187 291,681
Supplies - - - 26,852 26,852
Professional services - - - 133,565 133,565
Repairs and maintenance - - 135,685 22,362 158,047
Insurance 248,330 - - - 248,330
Total Operating Expenses 457,824 - 135,685 264,966 858,475
Operating Income (Loss)(34,382) 87,840 24,654 (39,966) 38,146
Nonoperating Revenues
Investment earnings 2,922 12,571 572 - 16,065
Change in Net Position (31,460) 100,411 25,226 (39,966) 54,211
Net Position, January 1 247,563 629,465 18,419 (34,381) 861,066
Net Position, December 31 216,103$ 729,876$ 43,645$ (74,347)$ 915,277$
City of Orono, Minnesota
Internal Service Funds
Combining Statement of Cash Flows
For the Year Ended December 31, 2020
703 705 701 710
Insurance Compensated Fleet
Fund Absences Management IT Services Total
Cash Flows from Operating Activities
Receipts from customers and users 423,442$ 87,840$ 160,339$ 225,000$ 896,621$
Payments to suppliers (245,830) - (131,838) (188,527) (566,195)
Payments to employees (209,893) - - (82,392) (292,285)
Net Cash Provided (Used) by Operating Activities (32,281) 87,840 28,501 (45,919) 38,141
Cash Flows from Investing Activities
Investment receipts 2,977 12,825 572 - 16,374
Net Increase (Decrease) in
Cash and Cash Equivalents (29,304) 100,665 29,073 (45,919) 54,515
Cash and Cash Equivalents, January 1 239,615 627,999 23,505 (58,913) 832,206
Cash and Cash Equivalents, December 31 210,311$ 728,664$ 52,578$ (104,832)$ 886,721$
Reconciliation of Operating Income (Loss)
to Net Cash Provided (Used) by Operating Activities
Operating income (loss)(34,382)$ 87,840$ 24,654$ (39,966)$ 38,146$
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities
(Increase) decrease in assets
Prepaid items 2,500 - - 5,072 7,572
Increase (decrease) in liabilities
Accounts and contracts payable - - 3,847 (10,820) (6,973)
Accrued salaries payable (399) - - (205) (604)
Net Cash Provided (Used) by
Operating Activities (32,281)$ 87,840$ 28,501$ (45,919)$ 38,141$
STATISTICAL SECTION (UNAUDITED)
CITY OF ORONO, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2020
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STATISTICAL SECTION (UNAUDITED)
This part of the City’s annual comprehensive 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 125 - 134
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 136 - 139
These schedules contain information to help the reader assess the City’s most significant local revenue source,
property taxes.
Debt Capacity 140 - 146
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 147 - 149
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 150 - 154
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.
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City of Orono, Minnesota
Summary Financial Report
Governmental Funds
Revenues and Expenditures For General Operations
For the Years Ended December 31, 2020 and 2019
2020 2019
Revenues
Taxes 6,043,234$ 5,709,173$ 5.85 %
Special assessments 35,881 22,783 57.49
Licenses and permits 502,714 742,042 (32.25)
Intergovernmental 1,439,511 966,874 48.88
Charges for services 3,578,117 3,647,122 (1.89)
Fines and forfeits 72,428 299,661 (75.83)
Investment earnings 173,308 259,332 (33.17)
Miscellaneous 141,544 73,649 92.19
Total Revenues 11,986,737$ 11,720,636$ 2.27 %
Per Capita 1,447$ 1,447$ 0.02 %
Expenditures
Current
General government 1,732,325$ 1,271,893$ 36.20 %
Public safety 5,599,888 5,446,200 2.82
Public works 1,089,733 773,965 40.80
Parks and recreation 570,346 480,870 18.61
Community development 111,781 141,722 (21.13)
Capital outlay
Public safety 212,438 242,656 (12.45)
Public works 1,547,322 1,887,532 (18.02)
Parks and recreation 808,910 476,873 69.63
Debt service
Principal 925,000 890,000 3.93
Interest and other charges 164,613 184,385 (10.72)
Total Expenditures 12,762,356$ 11,796,096$ 8.19 %
Per Capita 1,541$ 1,456$ 5.81
Total Long-term Indebtedness 5,302,901$ 6,253,851$ (15.21) %
Per Capita 640 772 (17.07)
General Fund Balance - December 31 4,547,033$ 4,407,693$ 3.16 %
Per Capita 549 544 0.89
Total
Percent
Increase
(Decrease)
The purpose of this report is to provide a summary of financial information concerning the City of Orono 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.
City of Orono, Minnesota
Statistical Section (Unaudited)
Net Position by Component
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2011 2012 2013 2014
Governmental Activities
Net investment in capital assets 12,059,075$ 11,373,668$ 10,855,727$ 10,720,258$
Restricted 3,283,445 3,279,963 3,596,762 3,535,595
Unrestricted 5,995,237 7,159,290 7,777,232 9,616,862
Total Governmental Activities Net Position 21,337,757$ 21,812,921$ 22,229,721$ 23,872,715$
Business-type Activities
Net investment in capital assets 15,027,930$ 15,393,009$ 15,586,266$ 16,042,333$
Unrestricted 6,375,719 6,196,614 6,105,512 5,946,733
Total Business-type Activities Net Position 21,403,649$ 21,589,623$ 21,691,778$ 21,989,066$
Total Primary Government
Net investment in capital assets 27,087,005$ 26,766,677$ 26,441,993$ 26,762,591$
Restricted 3,283,445 3,279,963 3,596,762 3,535,595
Unrestricted 12,370,956 13,355,904 13,882,744 15,563,595
Total Primary Government Net Position 42,741,406$ 43,402,544$ 43,921,499$ 45,861,781$
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.
2015 2016 2017 2018 2019 2020
14,269,848$ 16,660,990$ 19,020,035$ 23,370,988$ 25,500,646$ 28,256,953$
3,835,852 9,046,977 3,699,095 3,434,418 2,418,794 2,252,227
3,740,883 (3,794,950) 894,132 (840,224) 1,122,484 (116,070)
21,846,583$ 21,913,017$ 23,613,262$ 25,965,182$ 29,041,924$ 30,393,110$
15,505,885$ 16,427,467$ 16,940,333$ 17,917,465$ 18,679,663$ 18,910,474$
6,411,818 6,001,307 5,687,684 5,086,696 4,389,380 4,774,995
21,917,703$ 22,428,774$ 22,628,017$ 23,004,161$ 23,069,043$ 23,685,469$
29,775,733$ 33,088,457$ 35,960,368$ 41,288,453$ 44,180,309$ 47,167,427$
3,835,852 9,046,977 3,699,095 3,434,418 3,202,919 2,867,209
10,152,701 2,206,357 6,581,816 4,246,472 5,511,864 4,658,925
43,764,286$ 44,341,791$ 46,241,279$ 48,969,343$ 52,895,092$ 54,693,561$
Fiscal Year
City of Orono, Minnesota
Statistical Section (Unaudited)
Changes in Net Position (Continued on the Following Pages)
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2011 2012 2013 2014
Expenses
Governmental activities
General government 1,951,621$ 1,836,682$ 1,931,772$ 1,719,267$
Public safety 3,382,389 3,317,261 4,526,574 4,984,389
Public works 1,060,426 1,194,986 1,610,302 854,079
Culture and recreation 285,897 270,356 279,796 254,177
Recycling 106,649 104,046 - -
Interest on long-term debt 341,008 324,633 413,935 287,181
Total Governmental Activities Expenses 7,127,990 7,047,964 8,762,379 8,099,093
Business-type activities
Water 417,843 473,191 514,522 556,766
Sewer 1,088,467 1,161,273 1,136,040 1,184,629
Storm water 108,399 126,294 145,907 186,719
Recycling - - 114,837 114,983
Cable television - - - 12,675
Interest and fiscal charges 5,705 1,900 899 -
Total Business-type Activities Expenses 1,620,414 1,762,658 1,912,205 2,055,772
Total Primary Government Expenses 8,748,404$ 8,810,622$ 10,674,584$ 10,154,865$
Program Revenues
Governmental activities
Charges for services
General government 551,026$ 482,883$ 646,284$ 692,254$
Public safety 1,035,105 909,170 2,544,587 2,570,751
Public works 18,149 165,503 128,402 2,998
Culture and recreation 258,250 129,918 149,994 207,977
Recycling 77,455 81,224 - -
Operating grants and contributions 715,225 586,891 627,650 925,968
Capital grants and contributions 721,962 18,806 11,187 22,060
Total Governmental Activities Program Revenues 3,377,172 2,374,395 4,108,104 4,422,008
Business-type activities
Charges for services
Water 401,765 502,864 436,770 452,429
Sewer 1,085,540 1,107,357 1,206,926 1,200,043
Storm water 250,197 242,563 314,415 318,787
Recycling - - 110,912 113,501
Cable television - - - 71,412
Operating grants and contributions - - - 34,500
Capital grants and contributions 165,316 19,133 495 178,371
Total Business-type Activities Program Revenues 1,902,818 1,871,917 2,069,518 2,369,043
Total Primary Government Program Revenues 5,279,990$ 4,246,312$ 6,177,622$ 6,791,051$
Fiscal Year
2015 2016 2017 2018 2019 2020
1,864,543$ 2,314,539$ 2,722,779$ 1,947,411$ 818,147$ 1,865,451$
5,107,619 6,263,133 5,486,330 5,661,624 5,422,838 6,361,790
999,097 752,976 393,354 2,131,198 946,735 1,946,959
324,731 413,797 420,410 465,170 535,357 696,274
- - - - 141,722 111,781
283,146 258,874 173,552 155,122 150,164 138,240
8,579,136 10,003,319 9,196,425 10,360,525 8,014,963 11,120,495
581,758 634,562 680,595 915,730 984,452 1,044,516
1,332,617 1,401,278 1,429,209 1,381,752 1,538,449 1,743,277
163,747 225,113 190,935 143,194 433,908 354,524
116,642 118,054 126,333 127,044 173,049 227,227
31,802 31,724 48,684 51,943 90,586 91,128
- - - - - -
2,226,566 2,410,731 2,475,756 2,619,663 3,220,444 3,460,672
10,805,702$ 12,414,050$ 11,672,181$ 12,980,188$ 11,235,407$ 14,581,167$
736,643$ 770,750$ 947,851$ 1,147,449$ 966,665$ 984,876$
2,737,342 2,720,584 2,947,439 3,102,546 2,656,733 2,607,888
3,933 5,108 385 5,826 881,011 638,149
499,083 420,184 195,449 389,206 86,501 11,711
- - - - - -
732,114 671,059 1,174,782 1,741,370 419,114 976,217
13,549 1,070 609 820,165 649,359 617,082
4,722,664 4,588,755 5,266,515 7,206,562 5,659,383 5,835,923
492,947 594,198 629,736 699,562 871,125 1,257,201
1,297,786 1,505,467 1,408,480 1,477,225 1,600,046 1,902,088
527,255 538,870 289,643 421,838 361,199 701,562
128,387 142,470 140,218 136,922 131,013 212,038
99,632 77,511 76,352 78,716 80,237 79,588
34,500 34,500 - 34,500 21,058 -
16,765 - 45,218 7,400 253,370 6,050
2,597,272 2,893,016 2,589,647 2,856,163 3,318,048 4,158,527
7,319,936$ 7,481,771$ 7,856,162$ 10,062,725$ 8,977,431$ 9,994,450$
Fiscal Year
City of Orono, Minnesota
Statistical Section (Unaudited)
Changes in Net Position (Continued)
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2011 2012 2013 2014
Net Revenues (Expenses)
Governmental activities (3,750,818)$ (4,673,569)$ (4,654,275)$ (3,677,085)$
Business-type activities 282,404 109,259 157,313 313,271
Total Primary Government Net Revenues (Expenses)(3,468,414)$ (4,564,310)$ (4,496,962)$ (3,363,814)$
General Revenues and Other Changes in Net Position
Governmental activities
Taxes
Property taxes 4,728,470$ 4,716,941$ 4,746,856$ 4,809,875$
Tax increments - - - -
Grants and contributions not restricted to specific programs - - - -
Other general revenues 186,397 139,494 214,876 17,337
Unrestricted investment earnings 121,403 126,298 (81,067) 215,606
Gain on sale of capital assets 20,813 - 24,410 7,961
Transfers 170,407 166,000 166,000 269,300
Total Governmental Activities 5,227,490 5,148,733 5,071,075 5,320,079
Business-type activities
Other general revenues 201,462 183,619 130,550 163,719
Grants and contributions not restricted to specific programs
Unrestricted investment earnings 59,653 59,096 (19,708) 124,098
Gain on sale of capital assets - - - -
Transfers (170,407) (166,000) (166,000) (269,300)
Total Business-type Activities 90,708 76,715 (55,158) 18,517
Total Primary Government 5,318,198$ 5,225,448$ 5,015,917$ 5,338,596$
Change in Net Position
Governmental activities 1,476,672$ 475,164$ 416,800$ 1,642,994$
Business-type activities 373,112 185,974 102,155 331,788
Total Primary Government 1,849,784$ 661,138$ 518,955$ 1,974,782$
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
2015 2016 2017 2018 2019 2020
(3,856,472)$ (5,414,564)$ (3,929,910)$ (3,153,963)$ (2,355,580)$ (5,284,572)$
370,706 482,285 113,891 236,500 97,604 697,855
(3,485,766)$ (4,932,279)$ (3,816,019)$ (2,917,463)$ (2,257,976)$ (4,586,717)$
4,819,345$ 5,021,340$ 5,268,854$ 5,510,133$ 5,630,633$ 5,999,083$
- - - - 76,344 82,686
- - - - 26,372 5,321
44,051 149,388 53,207 193,279 - -
144,252 109,752 114,356 132,799 259,332 173,308
6,466 45,518 38,738 - 63,105 36,217
320,209 155,000 155,000 (41,000) 160,661 170,000
5,334,323 5,480,998 5,630,155 5,795,211 6,216,447 6,466,615
141,546 160,967 185,909 79,683 - -
- -
67,076 57,319 54,443 51,588 127,939 88,571
- - - - - -
(320,209) (155,000) (155,000) 41,000 (160,661) (170,000)
(111,587) 63,286 85,352 172,271 (32,722) (81,429)
5,222,736$ 5,544,284$ 5,715,507$ 5,967,482$ 6,183,725$ 6,385,186$
1,477,851$ 66,434$ 1,700,245$ 2,641,248$ 3,860,867$ 1,182,043$
259,119 545,571 199,243 408,771 64,882 616,426
1,736,970$ 612,005$ 1,899,488$ 3,050,019$ 3,925,749$ 1,798,469$
Fiscal Year
City of Orono, Minnesota
Statistical Section (Unaudited)
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
2011 2012 2013 2014
General Fund
Nonspendable 31,213$ 66,296$ 30,909$ 40,532$
Unassigned 3,509,254 3,133,691 3,354,809 3,886,128
Total General Fund 3,540,467$ 3,199,987$ 3,385,718$ 3,926,660$
All Other Governmental Funds
Nonspendable -$ 1,189$ -$ -$
Restricted 5,924,524 4,912,412 3,455,223 3,625,599
Committed - - - -
Assigned 3,646,933 3,888,083 4,133,893 4,029,776
Unassigned - - - -
Total All Other Governmental Funds 9,571,457$ 8,801,684$ 7,589,116$ 7,655,375$
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
2015 2016 2017 2018 2019 2020
74,800$ 25,376$ 13,277$ 118,170$ 119,157$ 30,343$
4,233,687 4,400,222 4,433,559 4,336,396 4,288,536 4,516,690
4,308,487$ 4,425,598$ 4,446,836$ 4,454,566$ 4,407,693$ 4,547,033$
-$ -$ -$ -$ -$ -$
3,957,346 6,383,149 3,685,145 3,495,176 3,250,008 2,908,430
- - - - 16,741 36,329
2,951,616 3,358,915 3,148,848 2,403,358 2,721,806 2,773,589
(178,573) (872,147) (1,050,959) (2,759,730) (2,676,572) (3,111,513)
6,730,389$ 8,869,917$ 5,783,034$ 3,138,804$ 3,311,983$ 2,606,835$
Fiscal Year
City of Orono, Minnesota
Statistical Section (Unaudited)
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
2011 2012 2013 2014
Revenues
Taxes 4,761,488$ 4,724,264$ 4,785,052$ 4,840,777$
Licenses and permits 592,111 509,300 613,184 675,204
Intergovernmental 542,711 393,148 421,485 745,062
Charges for services 1,029,515 979,122 2,474,211 2,569,831
Fines and forfeitures 141,304 159,673 175,321 153,821
Investment earnings 110,215 114,624 61,335 195,862
Special assessments 272,772 115,518 68,413 62,632
Miscellaneous 74,676 255,633 205,078 58,012
Total Revenues 7,524,792 7,251,282 8,804,079 9,301,201
Expenditures
Current
General government 1,294,803 1,263,916 1,242,028 1,282,487
Public safety 3,402,270 3,248,071 4,734,635 4,906,572
Streets 458,040 425,192 508,544 454,964
Culture and recreation 241,789 238,424 255,395 231,356
Community development - - - -
Recycling 106,649 104,046 - 4,572
Capital outlay 758,654 1,795,760 1,683,159 3,973,460
Debt service
Principal 2,285,000 1,110,000 1,145,000 1,900,000
Interest and other charges 357,525 362,629 328,633 302,728
Total Expenditures 8,904,730 8,548,038 9,897,394 13,056,139
Deficiency of Revenues
under expenditures (1,379,938) (1,296,756) (1,093,315) (3,754,938)
Other Financing Sources (Uses)
Transfers in 530,407 1,752,437 866,000 905,848
Transfers out (360,000) (1,586,437) (700,000) (636,548)
Bond proceeds - - - 4,070,177
Premium on bonds issued - - - -
Refunding bonds issued - - - -
Sale of capital assets 20,813 20,503 30,110 22,662
Total Other Financing Sources (Uses)191,220 186,503 196,110 4,362,139
Net Change in Fund Balances (1,188,718)$ (1,110,253)$ (897,205)$ 607,201$
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.
2015 2016 2017 2018 2019 2020
4,839,722$ 5,057,941$ 5,258,546$ 5,448,238$ 5,709,173$ 6,043,234$
846,343 715,281 613,218 954,278 742,042 502,714
545,236 496,497 1,025,044 1,616,583 966,874 1,439,511
2,896,458 2,973,534 3,165,196 3,211,749 3,647,122 3,578,117
134,754 133,354 101,824 124,060 299,661 72,428
133,204 97,843 105,079 122,659 259,332 173,308
70,349 8,537 2,226 22,935 22,783 35,881
64,867 143,976 66,122 171,219 73,649 141,544
9,530,933 9,626,963 10,337,255 11,671,721 11,720,636 11,986,737
1,285,064 1,362,293 1,474,265 1,433,076 1,271,893 1,732,325
4,906,117 5,073,430 5,298,939 5,628,086 5,446,200 5,599,888
496,239 480,765 486,138 595,740 773,965 1,089,733
268,831 281,340 304,333 421,996 480,870 570,346
- - - - 141,722 111,781
- - 1,590 - - -
2,114,343 1,721,077 2,150,260 5,771,819 2,607,061 2,568,670
1,010,000 1,085,788 3,556,024 660,000 890,000 925,000
331,317 344,562 237,286 187,404 184,385 164,613
10,411,911 10,349,255 13,508,835 14,698,121 11,796,096 12,762,356
(880,978) (722,292) (3,171,580) (3,026,400) (75,460) (775,619)
1,451,397 1,565,385 1,262,405 1,486,307 1,678,274 570,000
(1,131,188) (1,410,385) (1,107,405) (1,217,307) (1,517,613) (400,000)
- - - - - -
- 94,956 - - - -
- 2,680,000 - - - -
17,610 48,975 38,738 33,097 41,105 39,811
337,819 2,978,931 193,738 302,097 201,766 209,811
(543,159)$ 2,256,639$ (2,977,842)$ (2,724,303)$ 126,306$ (565,808)$
24.20%15.80%16.40%33.70%8.60%10.92%
Fiscal Year
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
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
2020 3,335,498,959 62,889,100 19,996,200 3,418,384,259 39,482,429 16.512 1.16
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
City of Orono, Minnesota
Statistical Section (Unaudited)
Property Tax Rates - Direct and Overlapping Governments
Last Ten Fiscal Years
Fiscal Special
Year Districts
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
2020 14.557 1.955 16.512 23.109 41.084 9.712 90.417
Source: Hennepin County Assessing Department
Millage RateMillage
Operating
Debt
Service
Total
Direct
City of Orono
Hennepin
Total
Rates
School
Overlapping
Direct &
No. 278 County
District
City of Orono, Minnesota
Statistical Section (Unaudited)
Principal Property Taxpayers
Current and Nine Years Ago
Net Net
Tax Tax
Taxpayer Capacity Rank Capacity Rank
178,813$ 1 0.45 %97,010$ 9 0.33 %
Private Residence 166,544 2 0.42 207,813 1 0.71
146,002 3 0.37 - -
Metro Storage HHF Venture 139,451 4 0.35 - -
137,980 5 0.35 148,044 2 0.51
133,013 6 0.34 137,888 3 0.47
121,802 7 0.31 134,175 4 0.46
119,311 8 0.30 108,529 5 0.37
118,798 9 0.30 108,526 6 0.37
1725 Bohns Point LLC 112,869 10 0.29 108,513 7 0.37
- 104,050 8 0.36
- 94,439 10 0.32
Total 1,374,583$ 3.48 %1,248,987$ 4.27 %
Source: Hennepin County Assessor's Office
Private Residence
Wayzata Country Club
Private Residence
Brackett Point Property LLC
Private Residence
Private Residence
Private Residence
Private Residence
WJM Properties LLC
Tax Capacity Tax Capacity
2020 2011
Percent of Percent of
Total Net Total Net
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
2011 4,702,558$ 4,599,372$ 97.81 103,186$ 4,702,558$ 100.00 %
2012 4,702,558 4,632,847 98.52 69,711 4,702,558 100.00
2013 4,701,750 4,677,698 99.49 24,052 4,701,750 100.00
2014 4,743,144 4,701,760 99.13 41,384 4,743,144 99.98
2015 4,772,000 4,748,327 99.50 22,576 4,770,903 99.98
2016 4,954,480 4,968,026 *100.27 (16,394) 4,951,632 99.93
2017 5,205,230 5,235,100 *100.57 (37,936) 5,197,164 99.85
2018 5,439,951 5,379,375 98.89 47,130 5,426,505 99.75
2019 5,816,338 5,771,646 99.23 28,205 5,799,851 99.23
2020 6,007,450 5,935,931 98.81 - 5,935,931 98.81
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
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
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
2020 5,185,000 - -805,000 5,990,000 0.70 747
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
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)
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
2020 5,185,000 805,000 2,908,430 2,276,570 0.07 275
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
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Estimated Share
Total Debt of Overlapping
Outstanding Sinking Funds Net Debt Debt
Direct Debt:
City of Orono 5,185,000$ 2,140,542$ 3,044,458$ 100.00 %3,044,458$
ISD No. 278 (Orono)62,545,000 4,126,874 58,418,126 52.77 30,827,245
ISD No. 276 (Minnetonka)112,035,000 2,539,695 109,495,305 0.26 284,688
ISD No. 277 (Westonka)37,555,000 906,469 36,648,531 26.58 9,741,180
ISD No. 284 (Wayzata)226,360,000 22,043,846 204,316,154 0.93 1,900,140
Hennepin County 1,017,430,000 18,639,702 998,790,298 1.88 18,777,258
Hennepin Suburban Park 52,330,000 9,375,358 42,954,642 2.70 1,159,775
Hennepin Regional RR Authority 94,705,000 845,578 93,859,422 1.88 1,764,557
Metropolitan Council 245,380,000 142,154,372 103,225,628 0.89 918,708
1,848,340,000 200,631,894 1,647,708,106 65,373,551
68,418,009$
(1)
Note 1:
Note:
Source 1:
Source 2:
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 Debt:
Applicable
Percentage
Governmental Unit
City of Orono, Minnesota
Direct and Overlapping Governmental Activities Debt
as of December 31, 2020
Estimated
Statistical Section (Unaudited)
City of Orono, Minnesota
Statistical Section (Unaudited)
Legal Debt Margin Information
Last Ten Fiscal Years
2011 2012 2013 2014
Debt Limit 77,063,427$ 71,461,659$ 72,492,057$ 72,942,051$
Total Net Debt Applicable to Limit 9,014,895 6,898,136 6,319,308 10,660,892
Legal Debt Margin 68,048,532$ 64,563,523$ 66,172,749$ 62,281,159$
Total Net Debt Applicable to the Limit
as a Percent of Debt Limit 11.70%9.65%8.72%14.62%
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.
2015 2016 2017 2018 2019 2020
75,942,705$ 81,932,428$ 86,385,749$ 90,093,594$ 95,106,635$ 102,551,528$
8,714,780 8,062,670 8,705,000 5,884,077 4,842,172 3,791,737
67,227,925$ 73,869,758$ 77,680,749$ 84,209,517$ 90,264,463$ 98,759,791$
11.48%9.84%10.08%6.53%5.09%3.70%
Taxable Market Value 3,418,384,259$
Debt Limit (3 Percent of Market Value)102,551,528$
Debt Applicable to Limit
General obligation bonds 5,990,000
Less: amount available in debt service funds (2,198,263)
Total Net Debt Applicable to Limit 3,791,737
Legal Debt Margin 98,759,791$
Fiscal Year
Legal Debt Margin Calculation for Fiscal Year 2020
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
2020 1,242,867 825,472 417,395 80,000 20,431 100,431 415.60
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
Note: Information prior to 2015 is not available or not existant.
Debt Service
Water G.O. Revenue Bonds
Coverage
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)
2011 7,437 484,396,028$ 62,444$ 35 15.0 2,706 5.3 %
2012 7,428 572,416,536 77,062 45 - 2,711 4.8
2013 7,584 584726400 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
2020 8,284 850,888,430 106,162 48 - 2,843 4.2
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
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City of Orono, Minnesota
Statistical Section (Unaudited)
Principal Employers
Current Year and Nine Years Ago
Employees Rank Employees Rank
ISD No. 278 (Orono)349 1 19.39 %500 1 31.25 %
Woodhill Country Club 180 *2 10.00 125 3 7.81
Wayzata Country Club 160 *3 8.89 200 2 12.50
Jem Technical 104 4 5.78 - - -
Springhill Country Club 112 *5 6.22 80 5 5.00
Otten Brothers 100 6 5.56 100 4 6.25
Lunds 75 7 4.17 60 6 3.75
Culver's 60 8 3.33 43 8 2.69
City of Orono 52 9 2.89 50 7 3.25
Trails of Orono 45 10 2.50 - - -
Service 800 - - - 30 9 1.88
Morries' Automotive - - - 23 10 1.44
Total 1,237 68.72 %1,211 75.82 %
Source: City of Orono and State Department of Commerce and Employers
*Total W-2's sent out, which includes part-time and seasonal employees.
2020 2010
Employment Employment
Percent Percent
of City of City
City of Orono, Minnesota
Statistical Section (Unaudited)
Full-time Equivalent Employees by Function
Last Ten Fiscal Years
2011 2012 2013 2014
General Government 7 7 7 7
Public Safety
Police
Officers 17 17 30 28
Civilians 3 3 4 4
Code Enforcement 6 6 6 6
Public Works 4 5 5 5
Parks (1)- - - -
Water 2 2 2 2
Sewer 3 3 3 3
Storm Water 1 1 1 1
Golf 3 3 3 5
Total 43 44 59 59
Source: City budgets and personnel records.
(1) Separated Parks department in 2018 due to hiring Park Supervisor at the end of 2017
Function
Note: This table shows 61 employees while the Prinicipal Employers schedule shows 54 due to their part time employees
included within the table above.
2015 2016 2017 2018 2019 2020
8 8 8 8 8 7
27 27 27 30 30 30
4 4 4 4 4 4
6 5 4 5 5 5
5 5 5 5 5 5
- - - 1 1 1
2 2 2 3 3 3
3 3 3 3 3 3
1 1 1 1 1 1
5 5 5 3 3 3
59 58 57 61 61 60
City of Orono, Minnesota
Statistical Section (Unaudited)
Operating Indicators by Function
Last Ten Fiscal Years
2011 2012 2013 2014
Public Safety
Police
Initial reports 5,728 6,688 12,128 10,990
Citations 2,086 1,982 3,228 2,437
Building/Zoning
Building permits issued 858 441 449 485
Land use applications 35 48 24 56
Water
New connections 998 1,003 1,036 1,036
Radio read meters - start 2004 808 927 1,001 1,036
Annual water pumped
(thousands of gallons)116,370 125,005 108,486 96,006
Waste Water
New connections 2,215 2,231 2,225 2,218
Annual sewer flow
(thousands of gallons) (2)173,649 177,360 186,310 190,710
Storm Water
Sweeping (centerline Miles) (1)46 46 46 46
Drainage projects 2 1 1 1
Golf
Rounds played 12,041 10,067 6,990 10,890
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.
2015 2016 2017 2018 2019 2020
10,056 9,320 6,462 5,875 4,997 4,496
1,495 1,929 1,509 1,675 1,331 907
470 466 518 535 660 442
63 59 110 81 95 77
1,023 1,036 1,041 1,087 1,109 1,090
1,010 1,024 1,029 1,072 1,096 1,071
95,701 96,936 108,627 108,923 106,490 131,048
2,238 2,243 2,256 2,287 2,352 2,298
201,000 211,900 173,840 195,420 219,740 234,390
46 46 92 46 46 48
1 3 3 7 6 6
14,334 11,976 11,387 7,007 7,289 16,000
City of Orono, Minnesota
Statistical Section (Unaudited)
Capital Asset Statistics by Function
Last Ten Fiscal Years
2011 2012 2013 2014
Public Safety
Police
Stations 1 1 1 1
Patrol units 11 11 14 14
Fire stations 1 1 1 1
Public Works
Highways and streets
Streets (miles) 46 46 46 46
Street lights (1)135 135 135 135
Culture and Recreation
Parks acreage (2)228 228 228 228
Parks 22 22 22 22
Beaches 4 4 4 4
Utilities
Water
Miles of water main 18 18 18 18
Wells 3 3 3 3
Water plants 2 2 2 2
Maximum daily capacity
(thousands of gallons)2,160 2,160 2,160 2,160
Sewer
Miles of sanitary sewer 47 47 47 47
Pumping stations 46 46 46 46
Golf
Clubhouse 1 1 1 1
Holes 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
2015 2016 2017 2018 2019 2020
1 1 1 1 1 1
14 14 14 14 14 14
1 1 1 1 1 1
46 46 46 46 46 48
135 135 135 135 148 151
228 228 228 228 228 228
22 22 22 22 22 22
4 4 4 4 4 4
18 18 23 23 23 23
3 4 4 4 4 4
2 2 2 2 2 2
2,160 3,800 3,800 3,800 3,800 3,800
47 47 61 61 62 63
46 46 46 45 45 45
1 1 1 1 1 1
9 9 9 9 9 9
Management
Communication
City of Orono
Orono, Minnesota
For the year ended December 31, 2020
January 11, 2022
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, 2020. 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 January 22, 2021. Professional standards also require
that we communicate to you the following information related to our audit.
Our Responsibility Under Auditing Standards Generally Accepte d 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 ju dgment, 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 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 statemen ts, 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 deficien cies in internal control that we consider to be
material weaknesses. However, material weaknesses may exist that have not been identified.
2
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free from material
misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant
agreements, noncompliance with which could have a direct and material effect on the financial 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 t he 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.
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 January 11, 2022.
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 (comb ining 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 i n the normal
course of our professional relationship and our responses were not a condition to our retention.
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 fiscal years beginning after June 15, 2021, and all reporting periods
thereafter.
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.
5
Future Accounting Standard Changes (Continued)
Effective Date and Transition
The requirements of this Statement are effective for reporting periods beginning after December 15, 2020. Earlier
application is encouraged.
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. T his 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 issue r;
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 liab ility
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 procee ds 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 th e 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, 2021. Earlier
application is encouraged.
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. R equiring 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 dive rsity,
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.
GASB Statement No. 92 - Omnibus 2020
Summary
The objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve the
consistency of authoritative literature by addressing practice issues that have been identified during implementation and
application of certain GASB Statements. This Statement addresses a variety of topics and includes specific provisions
about the following:
• The effective date of Statement No. 87, Leases, and Implementation Guide No. 2019 -3, Leases, for interim
financial reports
• Reporting of intra-entity transfers of assets between a primary government employer and a component unit
defined benefit pension plan or defined benefit other postemployment benefit (OPEB) plan
• The applicability of Statements No. 73, Accounting and Financial Reporting for Pensions and Related Assets That
Are Not within the Scope of GASB Statement 68, and Amendments to Certain Provisions of GASB Statements 67
and 68, as amended, and No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension
Plans, as amended, to reporting assets accumulated for postemployment benefits
• The applicability of certain requirements of Statement No. 84, Fiduciary Activities, to postemployment benefit
arrangements
• Measurement of liabilities (and assets, if any) related to asset retirement obligations (AROs) in a government
acquisition
• Reporting by public entity risk pools for amounts that are recoverable from reinsurers or excess insurers
• Reference to nonrecurring fair value measurements of assets or liabilities in authoritative literature
• Terminology used to refer to derivative instruments.
7
Future Accounting Standard Changes (Continued)
Effective Date and Transition
The requirements of this Statement are effective as follows:
• The requirements related to the effective date of Statement 87 and Implementation Guide 2019 -3, reinsurance
recoveries, and terminology used to refer to derivative instruments are effective upon issuance.
• The requirements related to intra-entity transfers of assets and those related to the applicability of Statements 73
and 74 are effective for fiscal years beginning after June 15, 2020.
• The requirements related to application of Statement 84 to postemployment benefit arrangements and those
related to nonrecurring fair value measurements of assets or liabilities are effective for reporting periods
beginning after June 15, 2020.
• The requirements related to the measurement of liabilities (and assets, if any) associated with AROs in a
government acquisition are effective for government acquisitions occurring in reporting periods beginning after
June 15, 2020.
Earlier application is encouraged and is permitted by topic.
How the Changes in This Statement Will Improve Accounting and Financial Reporting
The requirements of this Statement will enhance comparability in the application of accounting and financial reporting
requirements and will improve the consistency of authoritative literature. More comparable reporting will improve the
usefulness of information for users of state and local government financial statements.
GASB Statement No. 93 - Replacement of Interbank Offered Rates
Summary
The objective of this Statement is to address those and other accounting and financial reporting implications that result
from the replacement of an IBOR. This Statement achieves that objective by:
• Providing exceptions for certain hedging derivative instruments to the hedge accounting termination provisions
when an IBOR is replaced as the reference rate of the hedging derivative instrument’s variable payment
• Clarifying the hedge accounting termination provisions when a hedged item is amended to replace the reference
rate
• Clarifying that the uncertainty related to the continued availability of IBORs does not, by itself, affect the
assessment of whether the occurrence of a hedged expected transaction is probable
• Removing LIBOR as an appropriate benchmark interest rate for the qualitative evaluation of the effectiveness of
an interest rate swap
• Identifying a Secured Overnight Financing Rate and the Effective Federal Funds Rate as appropriate benchmark
interest rates for the qualitative evaluation of the effectiveness of an interest rate swap
• Clarifying the definition of reference rate, as it is used in Statement 53, as amended
• Providing an exception to the lease modifications guidance in Statement 87, as amended, for certain lease
contracts that are amended solely to replace an IBOR as the rate upon which variable payments depend
8
Future Accounting Standard Changes (Continued)
Effective Date and Transition
The removal of LIBOR as an appropriate benchmark interest rate is effective for reporting periods ending after
December 31, 2021. All other requirements of this Statement are effective for reporting periods beginning after
June 15, 2020. Earlier application is encouraged. The exceptions to the existing provisions for hedge accounting
termination and lease modifications in this Statement will reduce the cost of the accounting and financial reporting
ramifications of replacing IBORs with other reference rates. The reliability and relevance of reported information will be
maintained by requiring that agreements that effectively maintain an existing hedging arrangement continue to be
accounted for in the same manner as before the replacement of a reference rate. As a result, this Statement will preserve
the consistency and comparability of reporting hedging derivative instruments and leases after governments amend or
replace agreements to replace an IBOR.
How the Changes in This Statement Will Improve Accounting and Financial Reporting
The requirements of this Statement will enhance comparability in the application of accounting and financial reporting
requirements and will improve the consistency of authoritative literature. More comparable reporting will improve the
usefulness of information for users of state and local government financial statements.
GASB Statement No. 94 - Public-Private and Public-Public Partnerships and Availability Payment Arrangements
Summary
The primary objective of this Statement is to improve financial reporting by addressing issues related to public -private and
public-public partnership arrangements (PPPs). As used in this Statement, a PPP is an arrangement in which a
government (the transferor) contracts with an operator (a governmental or nongovernmental entity) to provide public
services by conveying control of the right to operate or use a nonfinancial asset, such as infrastructure or other capital
asset (the underlying PPP asset), for a period of time in an exchange or exchange-like transaction. Some PPPs meet the
definition of a service concession arrangement (SCA), which the Board defines in this Statement as a PPP in which (1) the
operator collects and is compensated by fees from third parties; (2) the transferor determines or has the ability to modify
or approve which services the operator is required to provide, to whom the operator is required to provide the services,
and the prices or rates that can be charged for the services; and (3) the transferor is entitled to significant residual interest
in the service utility of the underlying PPP asset at the end of the arrangement.
This Statement also provides guidance for accounting and financial reporting for availability payment arrangements
(APAs). As defined in this Statement, an APA is an arrangement in which a government compensates an operator for
services that may include designing, constructing, financing, maintaining, or operating an underlying nonfinancial asset
for a period of time in an exchange or exchange-like transaction.
Effective Date and Transition
The requirements of this Statement are effective for fiscal years beginning after June 15, 2022, and all reporting periods
thereafter. Earlier application is encouraged.
PPPs should be recognized and measured using the facts and circumstances that exist at the beginning of the period of
implementation (or if applicable to earlier periods, the beginning of the earliest period restated).
How the Changes in This Statement Will Improve Accounting and Financial Reporting
The requirements of this Statement will improve financial reporting by establishing the definitions of PPPs and APAs and
providing uniform guidance on accounting and financial reporting for transactions that meet those definitions. That
uniform guidance will provide more relevant and reliable information for financial statement users and create greater
consistency in practice. This Statement will enhance the decision usefulness of a government’s financial statements by
requiring governments to report assets and liabilities related to PPPs consistently and disclose important information
about PPP transactions. The required disclosures will allow users to understand the scale and important aspects of a
government’s PPPs and evaluate a government’s future obligations and assets resulting from PPPs.
9
Future Accounting Standard Changes (Continued)
GASB Statement No. 95 - Postponement of the Effective Dates of Certain Authoritative Guidance
Summary
The primary objective of this Statement is to provide temporary relief to governments and other stakeholders in light of
the COVID-19 pandemic. That objective is accomplished by postponing the effective dates of certain provisions in
Statements and Implementation Guides that first became effective or are scheduled to become effective for periods
beginning after June 15, 2018, and later.
The effective dates of certain provisions contained in the following pronouncements are postponed by one year:
• Statement No. 83, Certain Asset Retirement Obligations
• Statement No. 84, Fiduciary Activities
• Statement No. 88, Certain Disclosures Related to Debt, including Direct Borrowings and Direct Placements
• Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period
• Statement No. 90, Majority Equity Interests
• Statement No. 91, Conduit Debt Obligations
• Statement No. 92, Omnibus 2020
• Statement No. 93, Replacement of Interbank Offered Rates
• Implementation Guide No. 2017-3, Accounting and Financial Reporting for Postemployment Benefits Other Than
Pensions (and Certain Issues Related to OPEB Plan Reporting)
• Implementation Guide No. 2018-1, Implementation Guidance Update - 2018
• Implementation Guide No. 2019-1, Implementation Guidance Update - 2019
• Implementation Guide No. 2019-2, Fiduciary Activities.
The effective dates of the following pronouncements are postponed by 18 months:
• Statement No. 87, Leases
• Implementation Guide No. 2019-3, Leases.
Effective Date and Transition
The requirements of this Statement are effective immediately.
How the Changes in This Statement Will Improve Accounting and Financial Reporting
Providing governments with sufficient time to apply the authoritative guidance addressed in this Statement will he lp to
safeguard the reliability of their financial statements, which in turn will benefit the users of those financial statements.
10
Future Accounting Standard Changes (Continued)
GASB Statement No. 96 - Subscription-Based Information Technology Arrangements
Summary
This Statement provides guidance on the accounting and financial reporting for subscription -based information
technology arrangements (SBITAs) for government end users (governments). This Statement (1) defines a SBITA; (2)
establishes that a SBITA results in a right-to-use subscription asset - an intangible asset - and a corresponding
subscription liability; (3) provides the capitalization criteria for outlays other than subscription payments, including
implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. To the extent relevant, the
standards for SBITAs are based on the standards established in Statement No. 87, Leases, as amended.
Under this Statement, a government generally should recognize a right-to-use subscription asset - an intangible asset -
and a corresponding subscription liability. A government should recognize the subscription liability at the commencement
of the subscription term, - which is when the subscription asset is placed into service. The subscription liability should be
initially measured at the present value of subscription payments expected to be made during the subscription term.
Future subscription payments should be discounted using the interest rate the SBITA vendor cha rges the government,
which may be implicit, or the government’s incremental borrowing rate if the interest rate is not readily determinable. A
government should recognize amortization of the discount on the subscription liability as an outflow of resources (for
example, interest expense) in subsequent financial reporting periods.
This Statement provides an exception for short-term SBITAs. Short-term SBITAs have a maximum possible term under the
SBITA contract of 12 months (or less), including any options to extend, regardless of their probability of being exercised.
Subscription payments for short-term SBITAs should be recognized as outflows of resources.
This Statement requires a government to disclose descriptive information about its SBITAs other than s hort-term SBITAs,
such as the amount of the subscription asset, accumulated amortization, other payments not included in the
measurement of a subscription liability, principal and interest requirements for the subscription liability, and other
essential information.
Effective Date and Transition
The requirements of this Statement are effective for fiscal years beginning after June 15, 2022, and all reporting periods
thereafter. Earlier application is encouraged. Assets and liabilities resulting from SBITAs should be recognized and
measured using the facts and circumstances that existed at the beginning of the fiscal year in which this Statement is
implemented. Governments are permitted, but are not required, to include in the measurement of the subscriptio n asset
capitalizable outlays associated with the initial implementation stage and the operation and additional implementation
stage incurred prior to the implementation of this Statement.
How the Changes in This Statement Will Improve Accounting and Fina ncial Reporting
The requirements of this Statement will improve financial reporting by establishing a definition for SBITAs and providing
uniform guidance for accounting and financial reporting for transactions that meet that definition. That definition a nd
uniform guidance will result in greater consistency in practice. Establishing the capitalization criteria for implementation
costs also will reduce diversity and improve comparability in financial reporting by governments. This Statement also will
enhance the relevance and reliability of a government’s financial statements by requiring a government to report a
subscription asset and subscription liability for a SBITA and to disclose essential information about the arrangement. The
disclosures will allow users to understand the scale and important aspects of a government’s SBITA activities and
evaluate a government’s obligations and assets resulting from SBITAs.
11
Future Accounting Standard Changes (Continued)
GASB Statement No. 97 - Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue
Code Section 457 Deferred Compensation Plans - an amendment of GASB Statements No. 14 and No. 84, and a
supersession of GASB Statement No. 32
Summary
The primary objectives of this Statement are to (1) increase consistency and comparability related to the reporting of
fiduciary component units in circumstances in which a potential component unit does not have a governing board and the
primary government performs the duties that a governing board typically would perform; (2) mitigate costs associated
with the reporting of certain defined contribution pension plans, defined contribution other postemployment benefit
(OPEB) plans, and employee benefit plans other than p ension plans or OPEB plans (other employee benefit plans) as
fiduciary component units in fiduciary fund financial statements; and (3) enhance the relevance, consistency, and
comparability of the accounting and financial reporting for Internal Revenue Code (IRC) Section 457 deferred
compensation plans (Section 457 plans) that meet the definition of a pension plan and for benefits provided through
those plans.
This Statement requires that for purposes of determining whether a primary government is financially accountable for a
potential component unit, except for a potential component unit that is a defined contribution pension plan, a defined
contribution OPEB plan, or another employee benefit plan (for example, certain Section 457 plans), the absence of a
governing board should be treated the same as the appointment of a voting majority of a governing board if the primary
government performs the duties that a governing board typically would perform.
This Statement also requires that the financial burden criterion in paragraph 7 of Statement No. 84, Fiduciary Activities, be
applicable to only defined benefit pension plans and defined benefit OPEB plans that are administered through trusts that
meet the criteria in paragraph 3 of Statement No. 67, Financial Reporting for Pension Plans, or paragraph 3 of Statement
No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans, respectively.
This Statement (1) requires that a Section 457 plan be classified as either a pension plan or another employee benefit
plan depending on whether the plan meets the definition of a pension plan and (2) clarifies that Statement 84, as
amended, should be applied to all arrangements organized under IRC Section 457 to determine whether those
arrangements should be reported as fiduciary activities.
This Statement supersedes the remaining provisions of Statement No. 32, Accounting and Financial Reporting for Internal
Revenue Code Section 457 Deferred Compensation Plans, as amended, regarding investment va luation requirements for
Section 457 plans. As a result, investments of all Section 457 plans should be measured as of the end of the plan’s
reporting period in all circumstances.
Effective Date and Transition
The requirements of this Statement that (1) exempt primary governments that perform the duties that a governing board
typically performs from treating the absence of a governing board the same as the appointment of a voting majority of a
governing board in determining whether they are financially accountable for defined contribution pension plans, defined
contribution OPEB plans, or other employee benefit plans and (2) limit the applicability of the financial burden criterion in
paragraph 7 of Statement 84 to defined benefit pension plans and defined benefit OPEB plans that are administered
through trusts that meet the criteria in paragraph 3 of Statement 67 or paragraph 3 of Statement 74, respectively, are
effective immediately.
The requirements of this Statement that are related to the accounting and financial reporting for Section 457 plans are
effective for fiscal years beginning after June 15, 2021. For purposes of determining whether a primary government is
financially accountable for a potential component unit, the requirements of this Statemen t that provide that for all other
arrangements, the absence of a governing board be treated the same as the appointment of a voting majority of a
governing board if the primary government performs the duties that a governing board typically would perform, are
effective for reporting periods beginning after June 15, 2021. Earlier application of those requirements is encouraged and
permitted by requirement as specified within this Statement.
12
Future Accounting Standard Changes (Continued)
The Board considered the effective dates for the requirements of this Statement in light of the COVID-19 pandemic and in
concert with Statement No. 95, Postponement of the Effective Dates of Certain Authoritative Guidance.
How the Changes in This Statement Will Improve Accounting and Financial Reporting
The requirements of this Statement will result in more consistent financial reporting of defined contribution pension plans,
defined contribution OPEB plans, and other employee benefit plans, while mitigating the costs as sociated with reporting
those plans. The requirements also will enhance the relevance, consistency, and comparability of (1) the information
related to Section 457 plans that meet the definition of a pension plan and the benefits provided through those pla ns and
(2) investment information for all Section 457 plans.
(1) Note. From GASB Pronouncements Summaries. Copyright 2020 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
Minneapolis, Minnesota
January 11, 2022
13
Other Required
Reports
City of Orono
Orono, Minnesota
For the year ended December 31, 2020
City of Orono, Minnesota
Other Required Reports
Table of Contents
For the Year Ended December 31, 2020
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, 2020, and the related notes to the financial statements, and have issued our report thereon dated
January 11, 2022.
In connection with our audit, nothing came to our attention that caused us to believe that the City failed to comply with the
provisions of the contracting and bidding, deposits and investments, conflicts of interest, public indebtedness, claims and
disbursements, miscellaneous provisions, and tax increment financing sections of the Minnesota Legal Compliance Audit
Guide for Cities, promulgated by the State Auditor pursuant to 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
Minneapolis, Minnesota
January 11, 2022
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
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, 2020, and the related notes to the financial statements, which collectively comprise the City’s basic
financial statements, and have issued our report thereon dated January 11, 2022.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City's internal control over financial
reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the
purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the
effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s
internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees,
in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely
basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a
reasonable possibility that a material misstatement of the 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 whe ther 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 o n 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
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
Minneapolis, Minnesota
January 11, 2022
5
City of Orono
2020 Financial Statement Audit
Introduction
•Audit Opinion and Responsibility
•General Fund Results
•Other Governmental Funds
•Enterprise Funds
•Key Performance Indicators
2
3
Audit Results
Minnesota Legal
ComplianceAuditor’s Opinion
4
General Fund Fund Balances
57.8%56.7%50.6%46.9%48.8%
$7,343,570 $7,613,364 $7,813,408
$8,577,280
$9,143,200 $9,260,500
45%45%45%45%45%
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
$9,000,000
$10,000,000
2016 2017 2018 2019 2020 2021
Unassigned Fund Balance Original Budgeted Expenditures Fund Balance Policy
5
General Fund Budget to Actual
Final
Budgeted Actual Variance with
Amounts Amounts Final Budget
Revenues 9,123,200$ 9,276,552$ 153,352$
Expenditures 8,743,200 8,777,023 (33,823)
Excess of Revenues Over Expenditures 380,000 499,529 119,529
Other Financing Sources (Uses)
Transfers out (400,000) (400,000) -
Proceeds from sale of capital assets 20,000 39,811 19,811
Total Other Financing Sources (Uses)(380,000) (360,189) 19,811
Net Change in Fund Balances - 139,340 139,340
Fund Balances, January 1 4,407,693 4,407,693 -
Fund Balances, December 31 4,407,693$ 4,547,033$ 139,340$
6
General Fund Revenues by Type
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
$5,000,000
Taxes Licenses and
Permits
Miscellaneous Total Other
2018 2019 2020
7
General Fund Expenditures by Type
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
General Government Public Safety Public Works Total Other
2018 2019 2020
8
Special Revenue Fund Balances
Increase
2020 2019 (Decrease)
Nonmajor
Park (366,395)$ 293,800$ (660,195)$
Drug and Felony Forfeiture 411,044 381,127 29,917
Affordable Housing 140,191 137,506 2,685
Lurton Park 47,577 31,755 15,822
Senior Housing TIF 63,747 91,378 (27,631)
Golf Course Improvement 283 277 6
Big Island 83,052 6,000 77,052
Carmen Bay Lake Improvement 602 10,249 (9,647)
Total 380,101$ 952,092$ (571,991)$
Fund
Fund Balances December 31,
$(600,000)
$(400,000)
$(200,000)
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
Restricted Committed Unassigned (Park)
2018 2019 2020
9
Debt Service Funds
Debt Cash Total Bonds
Maturity Balance Assets Outstanding
Nonmajor
2010 General Obligation Bonds 2/1/2026 591,876$ 599,479$ 1,425,000$
2000 Improvement Bonds (2014A Bonds)2/1/2029 761,208 771,192 2,240,000
2016 Refunding Bonds 2/1/2023 833,004 853,788 1,520,000
Total 2,186,088$ 2,224,459$ 5,185,000$
Total Interest Payments 577,475$
Debt Service Fund
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Principal Interest
10
Capital Projects Fund Balances
Increase
2020 2019 (Decrease)
Major
Municipal State Aid Street (1,922,298)$ (2,188,393)$ 266,095$
Nonmajor
Improvement Equipment Outlay 553,443 686,714 (133,271)
Permanent Revolving Improvement 1,517,225 1,471,613 45,612
Community Investment Construction 654,448 690,047 (35,599)
Navarre Fire Station Construction 945 927 18
Big Island Public Project 47,528 46,619 909
Pavement Management (822,820) (488,179) (334,641)
Total 28,471$ 219,348$ (190,877)$
Capital Projects Fund
Fund Balances December 31,
$(4,000,000)
$(3,000,000)
$(2,000,000)
$(1,000,000)
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
Restricted Assigned Unassigned
2018 2019 2020
11
Internal Service Funds
Operating Results
$-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
$1,000,000
2017 2017 2018 2018 2019 2019 2020 2020
Operating Disbursements Operating Receipts
12
Internal Service Funds
Cash Balances
$1,061,048
$796,622
$832,206
$886,721
$(200,000)
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
2017 2018 2019 2020
Insurance Fund Compensated Absences Fleet Management IT Services
13
Water Fund
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
2017 2017 2018 2018 2019 2019 2020 2020
Operating Disbursements Debt Payments Operating Receipts
$898,091
$610,690
$230,213
$544,109
$-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
$1,000,000
2017 2018 2019 2020
Unrestricted Cash Cash Reserve Goal (25% Operating, 25% Capital)
14
Sewer Fund
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
2017 2017 2018 2018 2019 2019 2020 2020
Operating Disbursements Operating Receipts
$2,778,844
$2,578,240
$2,764,292 $2,926,876
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
2017 2018 2019 2020
Unrestricted Cash Cash Reserve Goal (25% Operating, 25% Capital)
15
Storm Water Fund
$-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
2017 2017 2018 2018 2019 2019 2020 2020
Operating Disbursements Operating Receipts
$1,640,265
$1,293,813 $1,186,111
$1,492,116
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
2017 2018 2019 2020
Unrestricted Cash Cash Reserve Goal (25% Operating, 25% Capital)
16
Recycling Fund
$-
$50,000
$100,000
$150,000
$200,000
$250,000
2017 2017 2018 2018 2019 2019 2020 2020
Operating Disbursements Operating Receipts
$50,540
$65,122
$52,518
$50,842
$-
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
2017 2018 2019 2020
Unrestricted Cash Cash Reserve Goal (25% Operating)
17
Cable Fund
$-
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
2017 2017 2018 2018 2019 2019 2020 2020
Operating Disbursements Operating Receipts
$152,810 $152,301
$130,186
$8,806
$-
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
$180,000
2017 2018 2019 2020
Unrestricted Cash
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
2018 2019 2020
General Fund Capital Projects Funds Special Revenue Funds
Debt Service Funds Enterprise Funds Internal Service Funds
18
Cash and Investments Balances
19
Cash and Investments Balances
Continued
Enterprise
$5,022,749
Internal Service
$886,721
Restricted
$2,778,196
Assigned for Capital
$3,124,272
Unrestricted
$3,552,153
•Assigned for Capital (Pavement Management
Plan, Municipal State Aid, Equipment, Community
Investment Construction)
•Restricted (Parks, Forfeiture, Affordable Housing,
TIF, Debt Service)
•Enterprise (Water, Sewer, Storm, Recycling,
Cable)
•Unrestricted (General Fund)
20
Taxes
Key Performance Indicators
2017 2018 2019 2020
Class 4 Cities 59.1%59.8%58.1%N/A
Cities in Hennepin County 43.5%43.7%41.5%N/A
City Of Orono 16%16%16%17%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
Tax Rate
2017 2018 2019 2020
Class 4 Cities $507 $524 $574 N/A
Cities in Hennepin
County $706 $727 $785 N/A
City Of Orono $684 $691 $695 $724
$-
$100
$200
$300
$400
$500
$600
$700
$800
$900
Taxes -Per Capita
21
Debt
Key Performance Indicators
2017 2018 2019 2020
Class 4 Cities $2,223 $2,040 $2,005 N/A
Cities in Hennepin County $1,773 $1,723 $1,751 N/A
City Of Orono $1,603 $1,010 $863 $723
$-
$500
$1,000
$1,500
$2,000
$2,500
Debt -Per Capita
22
Expenditures
Key Performance Indicators
2017 2018 2019 2020
Class 4 Cities $713 $730 $791 N/A
Cities in Hennepin County $793 $809 $872 N/A
City Of Orono $983 $1,025 $1,002 $1,099
$-
$200
$400
$600
$800
$1,000
$1,200
Current Expenditures -Per Capita
2017 2018 2019 2020
Class 4 Cities $377 $418 $426 N/A
Cities in Hennepin County $338 $391 $369 N/A
City Of Orono $1,756 $1,865 $1,456 $1,541
$-
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
$2,000
Capital Expenditures -Per Capita
23
Enterprise Funds
Key Performance Indicators
2017 2018 2019 2020
Class 4 Cities 163%200%119%N/A
Cities in Hennepin County 218%929%248%N/A
City Of Orono 631%645%840%1336%
0%
200%
400%
600%
800%
1000%
1200%
1400%
1600%
Water Fund Debt Service Coverage
24
Questions?