HomeMy WebLinkAbout06-24-2024 CC Agenda PacketAgenda
City Council Meeting
Monday, June 24, 2024, 6:00 PM
City Council Chambers | 2780 Kelley Parkway, Orono, MN 55356
952-249-4600 /https://www.oronomn.gov/
1. Orono Firefighter Swearing in Ceremony
2. City Council Minutes
3. Work Session Schedule
4. Claims/Bills
5. Equipment Loan Agreement between the City of Lino Lakes and the City of Orono
6. Hire IT Technician
7. Lake Minnetonka Conservation District
8. 2023 Annual Comprehensive Financial Report Presentation
9. Property Assessment Service Contract - Hennepin County
10. Correspondence with City of Long Lake Fire Service from Orono Fire Department.
11. Council Committee Reports
12. Closed session to discuss Long Lake v. Orono litigations
Roll Call
Pledge of Allegiance
Approval of Agenda
Ceremony
Consent Agenda
Presentations
Finance Report
Attorney Report
City Administrator/Engineer Report
Council Committee Reports
Public Comments - (Limit 3 Minutes per Person)
This is an opportunity for the public to address the City Council. 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. The council will first open the podium to Orono residents before opening
the podium to any member of the public wishing to address the council.
Mayor/Council Report
Closed Session
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1
Adjournment
Upcoming Events
June 28 Voting Opens
July 1 Grand Opening Orono Fire
July 4-5 Independence Day - Holiday
July 8 City Council
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2
Date: June 24, 2024 Item: 1
Presenter: James Van Eyll, Fire Chief
Section: Ceremony
Title: Orono Firefighter Swearing in Ceremony
1.Purpose:
The purpose of this action is to administer the oath of office to the firefighters and fire officers.
2.Background:
The Orono Fire Department has hired 22 firefighters over the past year. The firefighters have
completed all the necessary training to be a firefighter or are currently enrolled.
Mayor Walsh will administrator the Oath of Office and Each firefighter will receive their badge
from a family member or friend of their choosing.
3.Staff Recommendation:
No Staff Recommendation Needed
AGENDA ITEM
COUNCIL ACTION REQUESTED
No Council Action Requested
3
Date: June 24, 2024 Item: 2
Presenter: Christine Lusian, City Clerk
Section: Consent Agenda
Title: City Council Minutes
1.Purpose:
The purpose of this item is to approve the City Council Meeting Minutes of June 10, 2024
2.Staff Recommendation:
Approve the City Council work session and regular meeting minutes.
AGENDA ITEM
COUNCIL ACTION REQUESTED
Approve the City Council Work Session and Regular Meeting Minutes of June 10, 2024.
Exhibits
06-10-2024 CC Minutes
06-10-2024 CC Minutes - work session
4
Minutes
City Council Regular Meeting
Monday, June 10, 2024, 6:00 PM
City Council Chambers 2780 Kelley Parkway, Orono, MN 55356
Page 1 of 3
Mayor Walsh called the meeting to order at 6:00 p.m., followed by the Pledge of Allegiance.
ROLL CALL
Orono City Council members present: Mayor Dennis Walsh, City Council Members Matt Johnson,Alisa
Benson, and Richard Crosby III.Members absent: City Council Member Maria Veach.
Staff present were City Administrator/Engineer Adam Edwards, Finance Director Maggie Jin,Fire Chief
James Van Eyll, Park Director Josh Lemons and Community Development Director Laura Oakden.
PLEDGE OF ALLEGIANCE
APPROVAL OF AGENDA
CONSENT AGENDA
1.City Council Minutes
2.Work Session Schedule
3.Claims/Bills
4.Rental Licenses
5.Waste Hauler Licenses
6.2023 Funds Transfer
This item was removed from the Consent Agenda
7.Employee Pay Correction –Resolution 7484
8.Cellular Tower Lease Extension -New Cingular Wireless
9.Plumbing Improvements at Temporary Fire Station
This item was removed from the Consent Agenda
10.Hire Part-Time Fire Fighters
This item was removed from the Consent Agenda
11.Appoint Public Works Maintenance Worker
Crosby moved, Johnson seconded, to approve the Agenda and the Consent Agenda with items 6, 9
and 10 removed. VOTE: Ayes 4, Nays 0.
COMMUNITY DEVELOPMENT REPORT
Community Development Director Oakden reported on Building Permit Revenue from the previous
month and compared to last year as well as other department activities.
PARKS REPORT
12.Accept Tree Donation –Resolution 7485
The City Council is requested to review the Staff report, receive a presentation,and discuss and adopt the
resolution accepting a donation of three quaking aspen for the new public works site and three apple trees
for the golf course from the Orono Garden Club.
5
Minutes
City Council Regular Meeting
Monday, June 10, 2024, 6:00 PM
City Council Chambers 2780 Kelley Parkway, Orono, MN 55356
Page 2 of 3
The Council discussed the item and asked questions of staff and Claire Berrett, president of the Orono
Garden Club.
Johnson moved, Crosby seconded, to adopt Resolution 7485 accepting the donation of trees from
the Orono Garden Club. VOTE: Ayes 4, Nays 0.
PUBLIC SAFETY REPORT
9. Plumbing Improvements at Temporary Fire Station
The City Council is requested to review the Staff report, receive a presentation,and discuss and approve
awarding the contract for basic plumbing improvements to install laundry facilities to low bidder B & D
Plumbing for $9,753.
Crosby moved, Johnson seconded, to award the contract for the plumbing improvement to B & D
Plumbing. VOTE: Ayes 3, Nays 1 (Benson).
10. Hire Part-Time Fire Fighters
The City Council is requested to review the staff report, receive a presentation,and discuss and approve
hiring Stephanie Erven as a part-time firefighter.
Johnson moved, Crosby seconded, to approve a conditional job offer to Stephanie Erven with an
effective start date of June 11 at a rate of $20 per hour. VOTE: Ayes 3, Nays 1 (Benson).
Fire Chief Van Eyll updated the City Council on the stand-up status of the new Orono Fire Department in
terms of staffing and equipment for a July 1 start-up.
CITY ATTORNEY REPORT
Amy Schmidt of Cambell Knutson was present on behalf of City Attorney Soren Mattick and did not
have a report.
CITY ADMINISTRATOR/ENGINEER REPORT
6.2023 Funds Transfer
The City Council is requested to review the staff report, receive a presentation,and discuss and approve
the 2023 Funds Transfer.
Johnson moved, Crosby seconded, to approve the 2023 Funds Transfer. VOTE: Ayes 4, Nays 0.
COUNCIL COMMITTEE REPORTS
13.Council Committee Reports
Walsh and Benson reported on a meeting of the Legal Committee.City Administrator Edwards reported
for Council Member Veach on the Long Lake Fire Advisory Board meeting.
6
Minutes
City Council Regular Meeting
Monday, June 10, 2024, 6:00 PM
City Council Chambers 2780 Kelley Parkway, Orono, MN 55356
Page 3 of 3
PUBLIC COMMENTS
Ritchie Anderson, 3205 Crystal Bay Road, Orono;and Kelly Grady, 271 Greenhill Lane, Long Lake
provided comments.
MAYOR/COUNCIL REPORT
Mayor and Council provided reports.
ADJOURNMENT
Walsh moved, Crosby seconded, to adjourn the meeting at 7:06 p.m.to Monday, June 24, 2024 at
6:00 p.m.VOTE: Ayes 4, Nays 0.
ATTEST:
____________________________________________________________________________
Christine Lusian, City Clerk Dennis Walsh, Mayor
Minutes approved by Orono City Council June 24, 2024. Meeting videos and transcripts available
at oronomn.gov.
7
Minutes
City Council Work Session
Monday, June 10, 2024, 5:00 PM
City Council Chambers | 2780 Kelley Parkway, Orono, MN 55356
ROLL CALL
City Council members present: Mayor Dennis Walsh, City Council Members Alisa Benson, Richard
Crosby,and Matt Johnson.
Staff present: City Administrator/Engineer Adam Edwards, Community Development Director
Laura Oakden,Planners Melanie Curtis and Natalie Nye, and City Clerk Christine Lusian.
DRIVEWAY WIDTH / AVERAGE LAKE SHORE SETBACK
Community Development Director Oakden introduced the topics of driveway size and lake
setback with options to update the process on how requests are reviewed and processed. Council
discussed details like hardcover, development closer to the lake, sideview protection, staff time
required with variances, appeals process, code amendment process and public notification
requirements. Council asked to develop amended language at a future work session and
community development director Oakden agreed to coordinate.
ADJOURNMENT
Work session ended at 5:48 p.m.
ATTEST:CITY COUNCIL
________________________________________________________________________
Christine Lusian, City Clerk Dennis Walsh, Mayor
8
Date: June 24, 2024 Item: 3
Presenter: Adam Edwards, City Administrator / Engineer
Section: Consent Agenda
Title: Work Session Schedule
1.Purpose:
The purpose of the action item is to forecast future work session agendas.
2.
Date Subject Date Subject
8 Jan Annual Appointments 8 Jul
22 Jan Recodification-streets, utilities, parks 22 Jul General Fund Budget Update
12 Feb Average Lakeshore Setback (Part 3)12 Aug Average Lakeshore Setback (Part 5)
Cannabis Discussion
26 Feb
Interview Commissioner Applicants
(Parks/Planning)-- if needed; Police
Department Canine Program Overview
26 Aug Enterprise Budget Update
11 Mar
Elected and appointed official civility;
tech use at the dais; appropriate use of
staff time
9 Sep Preliminary Levy / Budget
8 Apr Street Maintenance 2025
Meeting Minutes 23 Sep
22 Apr 14 Oct Draft Capital Improvement Plans
13 May Street Maintenance 2025 (Part 2)28 Oct Draft Capital Improvement Plans
28 May Grants Primer 12 Nov
10 Jun Average Lakeshore Setback (Part 4)
Driveway Width within the Shoreland 25 Nov Fee Schedule Update
24 Jun Preliminary Budget Guidance 2025 9 Dec Council Vision and Goal Setting
Background:
This is an opportunity for council members to propose and agree to future work session topics.
Work session meetings are at 5 pm on the same days as 6 pm regular council meetings. The table
below lists upcoming proposed subjects and dates.
3.Staff Recommendation:
I recommend the next work session occur as scheduled.
AGENDA ITEM
COUNCIL ACTION REQUESTED
Move to approve the draft work session schedule.
9
Date: June 24, 2024 Item: 4
Presenter: Alicia Johnson, Resource Management Technician
Section: Consent Agenda
Title: Claims/Bills
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 123692 to
123796 and ACH transactions 20130488 to 20130495 totaling $590,195.48.
3.Staff Recommendation:
Staff recommends approval of a motion authorizing payment to the claims listed as presented.
AGENDA ITEM
COUNCIL ACTION REQUESTED
Motion to approve the claims list as presented.
Exhibits
Check Register 2024-06-18
10
City of Orono Check Register - COUNCIL REPORT Page: 1
Check Issue Dates: 6/7/2024 - 6/24/2024 Jun 18, 2024 04:41PM
Check Check Invoice Invoice GL Account Description Department Invoice
Payee Issue Date Number Number Amount
ASPEN EQUIPMENT CO 06/10/2024 123692 PSO062391-101-43000-221 RUBBER SNOW DEFLECTOR Public Works Department 891.11
ASPEN EQUIPMENT CO 06/10/2024 123692 PSO062391-101-43000-221 RUBBER SNOW DEFLECTOR Public Works Department 891.11-
Total 123692:.00
ASPEN EQUIPMENT CO 06/10/2024 123693 PSO062391-101-43000-221 RUBBER SNOW DEFLECTOR Public Works Department 891.11
Total 123693:891.11
CENTERPOINT ENERGY MAIN 06/07/2024 123695 06.2024 1106 602-49450-381 GAS SERVICE 1106 LOMA LINDA GENERATOR 4/Sewer 25.62
Total 123695:25.62
DAHLHEIMER BEVERAGE MON 06/07/2024 123696 2197117 613-49830-094 CONCESSIONS Golf Course 190.20
DAHLHEIMER BEVERAGE MON 06/07/2024 123696 2197117 613-49830-091 ALCOHOL Golf Course 472.35
Total 123696:662.55
LAKESCAPE LLC 06/07/2024 123697 1252 101-45200-404 BEACH CLEAN-UPS Parks 948.75
Total 123697:948.75
MGX EQUIPMENT SERVICES LL 06/07/2024 123698 PSO062391-101-43000-221 RUBBER SNOW DEFLECTOR Public Works Department 891.11
Total 123698:891.11
Perry's Truck Repair 06/07/2024 123699 2099 701-49800-403 433 CHIPPER BOX 443.20
Total 123699:443.20
SHERWIN WILLIAMS 06/07/2024 123700 8622-9 440-48960-530 PAINT AND SUPPLIES FOR NEW FIRE HQ 27.46
Total 123700:27.46
WALSER AUTOMOTIVE GROUP 06/07/2024 123701 212809 101-42110-550 TSV- 2024 MAZDA (GRANT CAR)Police Department 7,605.20
WALSER AUTOMOTIVE GROUP 06/07/2024 123701 212809 437-42110-550 TSV- 2024 MAZDA (GRANT CAR)30,420.80
Total 123701:38,026.00
XCEL ENERGY 06/07/2024 123702 879405320 602-49450-381 3425 LYRIC 04/28/24-05/28/24 Sewer 24.02
11
City of Orono Check Register - COUNCIL REPORT Page: 2
Check Issue Dates: 6/7/2024 - 6/24/2024 Jun 18, 2024 04:41PM
Check Check Invoice Invoice GL Account Description Department Invoice
Payee Issue Date Number Number Amount
Total 123702:24.02
CENTRAL PENSION FUND SOU 06/14/2024 123703 06.13.24 FU 101-21705 CENTRAL PENSION FUND 06.13.2024 992.00
Total 123703:992.00
DEEP ROOTS CONCESSIONS L 06/14/2024 123704 1023 613-49830-489 FOOD TRUCK Golf Course 600.00
Total 123704:600.00
Jefferson Fire & Safety 06/14/2024 123705 IN315209 415-42260-580 NOZZELS FOR E1 AND E2 12,205.01
Total 123705:12,205.01
LEAGUE OF MN CITIES 06/14/2024 123706 2ND PAYME 703-49960-151 2024 2ND HALF WC INSURANCE 112,248.00
Total 123706:112,248.00
MHSRC/Range 06/14/2024 123707 337900-1098 101-42110-437 TRAINING - EVOC/PIT REFRESHER KLUKAS Police Department 510.00
Total 123707:510.00
MIKE NORTH CONSTRUCTION 06/14/2024 123708 24-16 613-49830-489 GOLF COURSE PAVILION Golf Course 40,000.00
Total 123708:40,000.00
A 1 RENT IT 3607 06/24/2024 123709 201471-1 101-45200-404 TILLER RENTAL Parks 56.00
Total 123709:56.00
ALMA HOMES LLC 06/24/2024 123710 RPS23-0000 101-22205 ESCROW REFUND - RPS23-000020 - 550 ORON 10,000.00
Total 123710:10,000.00
ANTHONY & LISA REHMAN 06/24/2024 123711 RPS21-0001 101-22205 ESCROW REFUND - RPS21-000120 - 2703 WALT 1,000.00
Total 123711:1,000.00
BARBARA BURWELL 06/24/2024 123712 Z23-000042 - 101-22205 ESCROW REFUND - Z23-000042 - 1055 TANAGE 1,000.00
12
City of Orono Check Register - COUNCIL REPORT Page: 3
Check Issue Dates: 6/7/2024 - 6/24/2024 Jun 18, 2024 04:41PM
Check Check Invoice Invoice GL Account Description Department Invoice
Payee Issue Date Number Number Amount
Total 123712:1,000.00
BIFFS INC 06/24/2024 123713 CM97947 101-45200-404 BIFFS CREDIT Parks 300.00-
BIFFS INC 06/24/2024 123713 W969999 101-45200-415 BIFF RENTAL Parks 257.00
BIFFS INC 06/24/2024 123713 W970000 101-45200-415 BIFF RENTAL Parks 166.00
BIFFS INC 06/24/2024 123713 W970001 101-45200-415 BIFF RENTAL Parks 182.00
BIFFS INC 06/24/2024 123713 W970002 613-49830-415 BIFF RENTAL Golf Course 91.00
BIFFS INC 06/24/2024 123713 W970003 101-45200-415 BIFF RENTAL Parks 91.00
BIFFS INC 06/24/2024 123713 W970004 101-45200-415 BIFF RENTAL Parks 166.00
BIFFS INC 06/24/2024 123713 W970005 101-45200-415 BIFF RENTAL Parks 91.00
BIFFS INC 06/24/2024 123713 W970006 101-43100-415 BRUSH SITE Brush Site 91.00
Total 123713:835.00
BOLTON & MENK INC.06/24/2024 123714 0337541 602-16500 22-021 FORCEMAIN REPLACEMENT (TONKAWA)3,746.00
BOLTON & MENK INC.06/24/2024 123714 0337542 435-48976-304 23-001 2023 FOX STREET IMPROVEMENT PROJ 209.00
BOLTON & MENK INC.06/24/2024 123714 0337543 408-48800-590 21-040 NAVARRE PARKING LOT 104.50
BOLTON & MENK INC.06/24/2024 123714 0337544 602-16500 24-014 SANITARY SEWER REHAB (CIPP)1,869.50
BOLTON & MENK INC.06/24/2024 123714 0337546 101-43280-304 LA21-000037 ORCHARD CREEK Special Services 1,700.50
BOLTON & MENK INC.06/24/2024 123714 0337547 101-43280-304 LA21-000036 ORONO CROSSINGS Special Services 455.50
BOLTON & MENK INC.06/24/2024 123714 0337548 101-43170-305 GIS MAINTENANCE GENERAL Engineering 379.00
BOLTON & MENK INC.06/24/2024 123714 0337549 234-45680-304 24-026 LURTON PARK PARKING LOT 1,224.50
BOLTON & MENK INC.06/24/2024 123714 0337550 101-43000-304 EASMENT WORK - FOX AND ORONO ORCHARD Public Works Department 2,043.50
BOLTON & MENK INC.06/24/2024 123714 0337550 101-43170-305 CAD ZONE MAP UPDATES -FIRE Engineering 196.50
BOLTON & MENK INC.06/24/2024 123714 0337551 435-48978-304 24-001 2024 STREETS IMPROVEMENTS PROJE 2,124.00
BOLTON & MENK INC.06/24/2024 123714 0337552 101-43280-304 LA24-000019 860 BROWN ROAD Special Services 2,361.50
BOLTON & MENK INC.06/24/2024 123714 0338118 710-49970-575 24-036 ARCGIS ONLINE UPGRADE PROJECT 2,358.00
Total 123714:18,772.00
BOND TRUST SERVICES CORP 06/24/2024 123715 88437 322-47000-611 INTEREST 2014A 23,806.25
Total 123715:23,806.25
BOYER TRUCKS INC 06/24/2024 123716 093P13817 701-49800-240 SHOP LIGHTS 120.00
Total 123716:120.00
BURSCH BROS. INC 06/24/2024 123717 SE22-00000 101-22205 ESCROW REFUND - SE22-000006 - 1160 WILLO 1,000.00
13
City of Orono Check Register - COUNCIL REPORT Page: 4
Check Issue Dates: 6/7/2024 - 6/24/2024 Jun 18, 2024 04:41PM
Check Check Invoice Invoice GL Account Description Department Invoice
Payee Issue Date Number Number Amount
Total 123717:1,000.00
CAMPBELL KNUTSON 06/24/2024 123718 2717-0000G 101-41600-307 ADMINISTRATION/GENERAL MATTERS 05/24 Law/Legal Services 6,084.74
CAMPBELL KNUTSON 06/24/2024 123718 2717-0004G 101-42110-307 POLICE MATTERS 05/24 Police Department 595.00
CAMPBELL KNUTSON 06/24/2024 123718 2717-0201G 101-41600-307 MISC RECORDINGS 5/24 Law/Legal Services 811.25
CAMPBELL KNUTSON 06/24/2024 123718 2717-0740G 703-49960-379 LITIGATION - MERA CLAIM 2,522.39
CAMPBELL KNUTSON 06/24/2024 123718 2717-0800G 101-42400-307 B&Z ASSISTANCE 05/24 Building & Zoning 357.00
CAMPBELL KNUTSON 06/24/2024 123718 2717-0802G 101-42400-307 B&Z ASSISTANCE 05/24 Building & Zoning 153.00
CAMPBELL KNUTSON 06/24/2024 123718 2717-0844G 703-49960-379 LMCD/DRAGONFLY HILL 136.00
CAMPBELL KNUTSON 06/24/2024 123718 2717-0896G 101-43280-307 LA23-000062 3838 CHERRY AVE Special Services 82.50
CAMPBELL KNUTSON 06/24/2024 123718 2717-0908G 101-43280-307 ORTLIP LEGAL FEE - 4865 WEST BRANCH Special Services 1,292.50
CAMPBELL KNUTSON 06/24/2024 123718 2717-0909G 101-43280-307 RPS22-000095 975 LONG BRIDGE LANE Special Services 93.60
CAMPBELL KNUTSON 06/24/2024 123718 2717-0910G 101-43280-307 LA24-000004 2245 WATERTOWN RD Special Services 710.79
CAMPBELL KNUTSON 06/24/2024 123718 2717-0912G 101-43280-307 LA24-000006 1359 PARK DRIVE Special Services 82.50
CAMPBELL KNUTSON 06/24/2024 123718 2717-0913G 101-43280-307 LA24-000015 200 BIG ISLAND Special Services 82.50
CAMPBELL KNUTSON 06/24/2024 123718 2717-0914G 101-43280-307 LA24-000016 3339 CRYSTAL BAY ROAD Special Services 137.50
CAMPBELL KNUTSON 06/24/2024 123718 2717-0915G 101-43280-307 LA24-000027 3295 FOX STREET Special Services 302.50
CAMPBELL KNUTSON 06/24/2024 123718 2717-0916G 101-43280-307 LA24-000017 1090 WILDHURST TRAIL Special Services 82.50
CAMPBELL KNUTSON 06/24/2024 123718 2717-0917G 101-43280-307 LA24-000022 1355 VINE PLACE Special Services 55.00
CAMPBELL KNUTSON 06/24/2024 123718 2717-0918G 101-43280-307 LA24-000024 2890 GOLDENROD WAY Special Services 55.00
CAMPBELL KNUTSON 06/24/2024 123718 2717-0919G 101-43280-307 LA24-000030 3465 6TH AVENUE NORTH Special Services 82.50
Total 123718:13,718.77
Capital One Trade Credit 06/24/2024 123719 3282159247 601-49400-489 METER STORAGE CABINET 331.39
Total 123719:331.39
Century Link 06/24/2024 123720 06.2024 WAT 601-49400-321 WTP PHONE/INTERNET 05/04/24-06/03/2024 141.76
Total 123720:141.76
CITY OF BLOOMINGTON 06/24/2024 123721 23666 601-49400-489 LAB FEES 42.00
Total 123721:42.00
CITY OF LONG LAKE 06/24/2024 123722 05.2024 UTIL 601-49400-387 MAY 2024 WATER 2,445.73
CITY OF LONG LAKE 06/24/2024 123722 05.2024 UTIL 602-49450-387 MAY 2024 SEWER Sewer 3,391.74
14
City of Orono Check Register - COUNCIL REPORT Page: 5
Check Issue Dates: 6/7/2024 - 6/24/2024 Jun 18, 2024 04:41PM
Check Check Invoice Invoice GL Account Description Department Invoice
Payee Issue Date Number Number Amount
Total 123722:5,837.47
CIVICPLUS 06/24/2024 123723 306825 614-49840-329 ELECTRONIC UPDATE, IMAGES, GRAPHS, TABU Cable Franchise 4,750.00
Total 123723:4,750.00
CORE & MAIN LP 06/24/2024 123724 U979518 601-49400-227 CURB STOPS FOR STOCK 696.83
Total 123724:696.83
COURTNEY PAULSEN 06/24/2024 123725 LA24-000017 101-22205 ESCROW REFUND - LA24-000017 - 1090 WILDHU 700.00
Total 123725:700.00
DAHLHEIMER BEVERAGE MON 06/24/2024 123726 2203096 613-49830-091 ALCOHOL Golf Course 520.50
DAHLHEIMER BEVERAGE MON 06/24/2024 123726 2209135 613-49830-091 ALCOHOL Golf Course 847.45
Total 123726:1,367.95
DMJ ASPHALT INC.06/24/2024 123727 17137 101-43000-408 ASPHALT REPAIR WORK 2000 WEBBER HILLS Public Works Department 2,126.00
Total 123727:2,126.00
DUNAWAY CONSTRUCTION 06/24/2024 123728 SE20-00001 101-22205 ESCROW REFUND - SE20-000014 - 4780 NORTH 1,000.00
Total 123728:1,000.00
EARL F ANDERSON & ASSOC 06/24/2024 123729 0136350-IN 440-48970-530 BOLLARD COVERS NEW OPW INTERIOR BOLLA 1,064.30
EARL F ANDERSON & ASSOC 06/24/2024 123729 0136446-IN 603-49500-221 ORGANICS DROP-OFF SIGN - NAVARRE MUNICI 109.95
Total 123729:1,174.25
ECM PUBLISHERS INC 06/24/2024 123730 1001708 101-42400-340 PH FOR B&Z Building & Zoning 164.71
ECM PUBLISHERS INC 06/24/2024 123730 1001812 101-43000-340 SEASONAL MAINTENANCE WORKER ADVERTIS Public Works Department 161.50
ECM PUBLISHERS INC 06/24/2024 123730 1001813 101-41900-340 IT TECHNICIAN JOB POSTING Central Services 129.20
Total 123730:455.41
EMERGENCY TECHNICAL DEC 06/24/2024 123731 1373 101-42260-310 GEAR CLEANING AND REPAIR Fire Protection Services 130.00
15
City of Orono Check Register - COUNCIL REPORT Page: 6
Check Issue Dates: 6/7/2024 - 6/24/2024 Jun 18, 2024 04:41PM
Check Check Invoice Invoice GL Account Description Department Invoice
Payee Issue Date Number Number Amount
Total 123731:130.00
ENDE SEPTIC SERVICE 06/24/2024 123732 SE20-00001 101-22205 ESCROW REFUND - SE20-000012 - 2850 WEAR 1,000.00
Total 123732:1,000.00
FACTORY MOTOR PARTS 06/24/2024 123733 1-9771913 701-49800-222 428 PARTS 46.38
Total 123733:46.38
FACTORY MOTOR PARTS 06/24/2024 123734 128-194701 701-49800-222 SQUAD CAR PARTS 20.72
FACTORY MOTOR PARTS 06/24/2024 123734 1-9768836 701-49800-222 428 PARTS 695.10
FACTORY MOTOR PARTS 06/24/2024 123734 1-9783030 701-49800-222 SQUAD CAR PARTS 389.17
FACTORY MOTOR PARTS 06/24/2024 123734 229-011872 701-49800-222 SQUAD CAR PARTS 20.72
FACTORY MOTOR PARTS 06/24/2024 123734 70-561520 701-49800-222 SQUAD CAR PARTS 133.05
FACTORY MOTOR PARTS 06/24/2024 123734 70-561570 701-49800-222 SQUAD CAR BATTERY 159.86
FACTORY MOTOR PARTS 06/24/2024 123734 70-561699 701-49800-222 SQUAD CAR PARTS 217.05
Total 123734:1,635.67
FALCON MECHANICAL INC.06/24/2024 123735 3666 440-48970-530 AIR COMPRESSOR HOSE REEL PIPING 1,928.41
Total 123735:1,928.41
FAUL PSYCHOLOGICAL 06/24/2024 123736 2009 101-42260-305 PSYCH TESTING FOR ERVEN Fire Protection Services 665.00
Total 123736:665.00
FERGUSON WATERWORKS #25 06/24/2024 123737 0531410 601-49400-227 5/8 & 3/4 METER GASKETS 50.99
Total 123737:50.99
FIRE SAFETY USA, INC 06/24/2024 123738 187610 415-42260-580 MOUNTS FOR ADAPTERS ON E1 205.00
Total 123738:205.00
GAIL BLACKSTONE 06/24/2024 123739 4465 FORES 999-10015 UB REFUND - 4465 FOREST LAKE LANDING - BL 148.22
16
City of Orono Check Register - COUNCIL REPORT Page: 7
Check Issue Dates: 6/7/2024 - 6/24/2024 Jun 18, 2024 04:41PM
Check Check Invoice Invoice GL Account Description Department Invoice
Payee Issue Date Number Number Amount
Total 123739:148.22
GENE SIMON 06/24/2024 123740 RAS23-0000 101-34410 BP REFUND - RAS23-000085 - 520 SANDHILL DR 105.69
Total 123740:105.69
GENUINE PARTS COMPANY/NA 06/24/2024 123741 598668 701-49800-222 SQUAD CAR BRAKES 112.00
GENUINE PARTS COMPANY/NA 06/24/2024 123741 600098 701-49800-222 OIL FILTERS 106.56
GENUINE PARTS COMPANY/NA 06/24/2024 123741 600161 701-49800-222 E-1 HUB SEALS 116.80
GENUINE PARTS COMPANY/NA 06/24/2024 123741 600241 701-49800-215 GREASE GUN COUPLER 15.66
GENUINE PARTS COMPANY/NA 06/24/2024 123741 600294 701-49800-213 HUB OIL 38.07
GENUINE PARTS COMPANY/NA 06/24/2024 123741 600390 701-49800-222 428 FUEL FILTERS 249.98
GENUINE PARTS COMPANY/NA 06/24/2024 123741 600520 701-49800-222 E-1 FIRE BATTERY 216.99
GENUINE PARTS COMPANY/NA 06/24/2024 123741 600585 701-49800-221 BATTERY DISCONNECT 13.29
Total 123741:869.35
GERTEN GREENHOUSES INC. - 06/24/2024 123742 7010/15 701-49800-212 PROPANE 51.98
Total 123742:51.98
GOPHER ACE 06/24/2024 123743 020640/1 101-43000-224 NUTS AND BOLTS Public Works Department 12.76
GOPHER ACE 06/24/2024 123743 020654/1 701-49800-215 WIRE WHEEL FOR DRILL 9.99
GOPHER ACE 06/24/2024 123743 020661/1 101-43000-221 SUPPLIES FOR BRINE MAKER Public Works Department 42.36
GOPHER ACE 06/24/2024 123743 020685/1 701-49800-215 PIPE THREAD TAP AND DIE 23.99
GOPHER ACE 06/24/2024 123743 020691/1 101-43000-221 PARTS FOR BRINE MAKER INST Public Works Department 14.99
GOPHER ACE 06/24/2024 123743 020770/1 101-41900-223 MOUNTING HARDWARE FOR WELDING EQUIPM Central Services 40.16
GOPHER ACE 06/24/2024 123743 020771/1 101-41900-404 KEYS FOR NEW PW Central Services 3.99
GOPHER ACE 06/24/2024 123743 020772/1 101-41900-404 ANT BAIT Central Services 8.59
GOPHER ACE 06/24/2024 123743 020773/1 101-43000-224 NUTS AND BOLTS Public Works Department 68.97
GOPHER ACE 06/24/2024 123743 020779/1 101-43000-221 HANG POSTERS AT NEW PW Public Works Department 27.98
GOPHER ACE 06/24/2024 123743 20637/1 101-45200-221 BACKPACK BLOWER Parks 649.99
GOPHER ACE 06/24/2024 123743 20699/1 701-49800-215 OIL 6.59
GOPHER ACE 06/24/2024 123743 20720/1 101-42110-201 OFFICE SUPPLIES Police Department 18.58
GOPHER ACE 06/24/2024 123743 20766/1 101-45200-404 WEED MATTING Parks 64.98
GOPHER ACE 06/24/2024 123743 20843/1 101-43000-221 FOR MAIL BOX @ NEW PW Public Works Department 7.59
GOPHER ACE 06/24/2024 123743 20850/1 701-49800-221 E-1 FIRE TRUCK POWER STRIP 45.98
17
City of Orono Check Register - COUNCIL REPORT Page: 8
Check Issue Dates: 6/7/2024 - 6/24/2024 Jun 18, 2024 04:41PM
Check Check Invoice Invoice GL Account Description Department Invoice
Payee Issue Date Number Number Amount
Total 123743:1,047.49
GOPHER STATE ONE CALL 06/24/2024 123744 4050659 602-49450-227 LOCATES - SEWER Sewer 261.22
GOPHER STATE ONE CALL 06/24/2024 123744 4050659 601-49400-382 LOCATES - WATER 261.23
Total 123744:522.45
HAWKINS INC 06/24/2024 123745 6777287 601-49400-216 CHLORINE TANKS 2,631.07
HAWKINS INC 06/24/2024 123745 6783758 601-49400-216 CHLORINE TANKS 70.00
Total 123745:2,701.07
HAYES & SONS EXC INC 06/24/2024 123746 SE22-00000 101-22205 ESCROW REFUND - SE22-000009 - 555 FERNDA 1,000.00
HAYES & SONS EXC INC 06/24/2024 123746 SE22-00002 101-22205 ESCROW REFUND - SE22-000029 - 325 HOLLAN 1,000.00
Total 123746:2,000.00
HENDEL HOMES 06/24/2024 123747 SE22-00002 101-22205 ESCROW REFUND - SE22-000027 - 1735 FOX ST 1,000.00
Total 123747:1,000.00
HENNEPIN CO. ACCTS RECEIV 06/24/2024 123748 1000227977 101-42110-414 RADIO/MDC LEASES Police Department 2,864.18
HENNEPIN CO. ACCTS RECEIV 06/24/2024 123748 1000227998 101-43000-415 PW RADIOS Public Works Department 305.58
HENNEPIN CO. ACCTS RECEIV 06/24/2024 123748 1000228047 101-42260-414 HENNEPIN RADIO FEES Fire Protection Services 819.48
Total 123748:3,989.24
HENNEPIN COUNTY ACCOUNT 06/24/2024 123749 1000228189 101-41600-309 JAIL INVOICE TO CITIES Law/Legal Services 323.60
Total 123749:323.60
HENNEPIN COUNTY TREASUR 06/24/2024 123750 1000227266 101-42110-319 SOCIAL WORKER 1/1/24-12/31/24 Police Department 11,817.00
Total 123750:11,817.00
JAMES & JUDITH WILLIAMS 06/24/2024 123751 345 FERNDA 999-10015 UB REFUND - 345 FERNDALE RD N - WILLIAMS 119.03
Total 123751:119.03
18
City of Orono Check Register - COUNCIL REPORT Page: 9
Check Issue Dates: 6/7/2024 - 6/24/2024 Jun 18, 2024 04:41PM
Check Check Invoice Invoice GL Account Description Department Invoice
Payee Issue Date Number Number Amount
JOHNSON, ALICIA 06/24/2024 123752 06.2024 REI 101-41900-489 COFFEE FOR PW OPEN HOUSE Central Services 11.99
JOHNSON, ALICIA 06/24/2024 123752 06.2024 REI 101-41900-489 LEMONADE FOR PW OPEN HOUSE Central Services 7.54
JOHNSON, ALICIA 06/24/2024 123752 06.2024 REI 101-41500-437 TRAINING - MILEAGE REIMBURSEMENT Finance Department 30.82
Total 123752:50.35
KLINGBERG EXCAVATING 06/24/2024 123753 SE21-00000 101-22205 ESCROW REFUND - SE21-000008 - 2150 6TH AV 1,000.00
Total 123753:1,000.00
KNOX ASSOCIATES INC 06/24/2024 123754 INV-KA-3009 415-42260-580 KNOX BOX FOR EACH FIRE TRUCK 7,065.00
Total 123754:7,065.00
KODIAK POWER SOLUTIONS 06/24/2024 123755 15292772 602-49450-489 TRIP CHARGE FOR ESTIMATE FROM TREE FALL Sewer 543.75
Total 123755:543.75
LAKESIDE EMBROIDERY, LLC.06/24/2024 123756 3164 613-49830-095 MERCHANDISE Golf Course 308.00
Total 123756:308.00
LAPOINTE UTILITIES INC 06/24/2024 123757 ROW24-000 101-22205 ESCROW REFUND - ROW24-000014 - 85 FERND 1,500.00
LAPOINTE UTILITIES INC 06/24/2024 123757 ROW24-000 101-22205 ESCROW REFUND - ROW24-000028 - 1380 ORO 1,500.00
LAPOINTE UTILITIES INC 06/24/2024 123757 ROW24-000 101-22205 ESCROW REFUND - ROW24-000029 - 205 NORT 1,500.00
Total 123757:4,500.00
LEO WEB PROTECT INC.06/24/2024 123758 8048528831 101-42110-416 MONTHLY SUBSCRIPTION 5/24 Police Department 143.06
Total 123758:143.06
LIGHTHOUSE APPAREL 06/24/2024 123759 87689 613-49830-095 MERCHANDISE- CLOTHING Golf Course 997.46
Total 123759:997.46
MACQUEEN EQUIPMENT LLC 06/24/2024 123760 P30789 415-42260-580 FIRE HOSE FOR RESCUE PUMPER 1,407.20
MACQUEEN EQUIPMENT LLC 06/24/2024 123760 P30951 415-42260-580 BOOTS FOR NEW FIREFIGHTERS 602.61
MACQUEEN EQUIPMENT LLC 06/24/2024 123760 P31140 415-42260-580 ADAPTERS FOR APPARATUS 2,232.52
MACQUEEN EQUIPMENT LLC 06/24/2024 123760 P31172 415-42260-580 BOOTS FOR NEW FIREFIGHTERS 601.70
19
City of Orono Check Register - COUNCIL REPORT Page: 10
Check Issue Dates: 6/7/2024 - 6/24/2024 Jun 18, 2024 04:41PM
Check Check Invoice Invoice GL Account Description Department Invoice
Payee Issue Date Number Number Amount
MACQUEEN EQUIPMENT LLC 06/24/2024 123760 P31202 101-42260-226 FRONTS FOR HELMETS Fire Protection Services 193.00
Total 123760:5,037.03
MARTIN MARIETTA MATERIALS 06/24/2024 123761 42609486 101-43000-224 PATCHING Public Works Department 149.38
Total 123761:149.38
MATT BOATMAN 06/24/2024 123762 CBG24-0000 101-34410 BP REFUND - CBG24-000003-2060 6TH AVE N 490.96
Total 123762:490.96
MELISSA MAIN 06/24/2024 123763 1422 PARK 999-10015 UB REFUND - 1422 PARK DR - MAIN 95.48
Total 123763:95.48
MINNEAPOLIS OXYGEN COMPA 06/24/2024 123764 00127097 701-49800-215 ACETYLENE, OXYGEN 76.30
Total 123764:76.30
MINNESOTA INBOARD WATERS 06/24/2024 123765 SEP24-0000 101-32180 SPECIAL EVENT PERMIT REFUND - SEP24-0000 100.00
Total 123765:100.00
Minnesota Pollution Control Agen 06/24/2024 123766 WASTEWAT 602-49450-441 MPCA LICENSE Sewer 45.00
Total 123766:45.00
MN DEPT OF HEALTH 06/24/2024 123767 2024 WATER 601-49400-433 WATER LICENCE RENEWAL - SCOTT 23.00
Total 123767:23.00
MNSPECT LLC 06/24/2024 123768 448705 101-42400-310 STATE PLAN REVIEW Building & Zoning 28.75
Total 123768:28.75
MOTOROLA 06/24/2024 123769 1411090695 101-42110-575 MOTOROLA SOLUTIONS / VIDEO MANAGER Police Department 7,995.00
MOTOROLA 06/24/2024 123769 8281912964 415-42260-580 MOBILE FOR T1 5,729.76
20
City of Orono Check Register - COUNCIL REPORT Page: 11
Check Issue Dates: 6/7/2024 - 6/24/2024 Jun 18, 2024 04:41PM
Check Check Invoice Invoice GL Account Description Department Invoice
Payee Issue Date Number Number Amount
Total 123769:13,724.76
MTI DISTRIBUTING INC 06/24/2024 123770 1434226-00 613-49830-404 MOWER REPAIR Golf Course 25.19
MTI DISTRIBUTING INC 06/24/2024 123770 1434259-00 613-49830-221 MOWER BLADES Golf Course 138.60
MTI DISTRIBUTING INC 06/24/2024 123770 1434322-00 101-45200-223 STABLES FOR FENCE AND ERROSION BLANKE Parks 24.00
Total 123770:187.79
Oertel Architects, Ltd 06/24/2024 123771 21-12.21 440-48970-319 21-039 PUBLIC WORKS BUILDING 3,230.25
Oertel Architects, Ltd 06/24/2024 123771 23-26.5 440-48975-319 24-034 NAVARRE FIRE GARAGE 17,895.34
Total 123771:21,125.59
OPD BUSINESS SOLUTIONS LL 06/24/2024 123772 3691236510 101-42110-201 OFFICE SUPPLIES Police Department 15.59
OPD BUSINESS SOLUTIONS LL 06/24/2024 123772 3691247390 101-42110-201 OFFICE SUPPLIES Police Department 14.98
OPD BUSINESS SOLUTIONS LL 06/24/2024 123772 3691247400 101-42110-201 OFFICE SUPPLIES Police Department 32.78
Total 123772:63.35
PATRICK SUTTER 06/24/2024 123773 LA24-000015 101-22205 ESCROW REFUND-LA24-000015 - 200 BIG ISLAN 700.00
Total 123773:700.00
PLUNKETT'S 06/24/2024 123774 8597660 101-41900-404 PEST CONTOL Central Services 261.26
Total 123774:261.26
QUALITY FLOW SYSTEMS INC 06/24/2024 123775 47009 602-49450-406 LS REPAIRS Sewer 3,850.00
Total 123775:3,850.00
QUALITY STAINLESS INC 06/24/2024 123776 INV451616 701-49800-221 TRUCK BRINE TANKS 52.71
QUALITY STAINLESS INC 06/24/2024 123776 INV453250 701-49800-221 TRUCK BRINE TANKS 166.61
Total 123776:219.32
SCHULTZ, SUSAN 06/24/2024 123777 06.2024 REI 101-42110-226 UNIFORMS ALLOWANCE SCHULTZ Police Department 104.39
21
City of Orono Check Register - COUNCIL REPORT Page: 12
Check Issue Dates: 6/7/2024 - 6/24/2024 Jun 18, 2024 04:41PM
Check Check Invoice Invoice GL Account Description Department Invoice
Payee Issue Date Number Number Amount
Total 123777:104.39
SECURITY & SOUND CO 06/24/2024 123778 28318 710-49970-311 DOOR SOFTWARE 300.00
Total 123778:300.00
SHAUGHNESSY LAWN CARE 06/24/2024 123779 06.2024 101-45200-404 PARK MOWING - 05/15/2024-06/15/2024 Parks 4,285.71
Total 123779:4,285.71
SiteOne Landscape Supply LLC 06/24/2024 123780 142479819-0 613-49830-216 CHEMICALS Golf Course 97.25
SiteOne Landscape Supply LLC 06/24/2024 123780 142886133-0 101-45200-223 HYDRO MULCH BAILS Parks 616.14
Total 123780:713.39
SJ FISHER CONSTRUCTION 06/24/2024 123781 RAS24-0000 101-34410 PERMIT REFUND- RAS24-000027 - 3339 CRYSTA 803.35
Total 123781:803.35
SNAP-ON INDUSTRIAL 06/24/2024 123782 ARV-600587 701-49800-240 MECHANIC TOOLS 69.47
SNAP-ON INDUSTRIAL 06/24/2024 123782 ARV-604315 701-49800-240 MECHANICS TOOLS 1,043.80
SNAP-ON INDUSTRIAL 06/24/2024 123782 ARV-604564 701-49800-240 MECHANIC TOOLS 106.26
SNAP-ON INDUSTRIAL 06/24/2024 123782 ARV-605680 701-49800-240 MECHANIC TOOLS 113.37
SNAP-ON INDUSTRIAL 06/24/2024 123782 ARV-606243 701-49800-240 MECHANIC TOOLS 143.72
SNAP-ON INDUSTRIAL 06/24/2024 123782 ARV-606380 701-49800-240 MECHANIC TOOLS 32.83
SNAP-ON INDUSTRIAL 06/24/2024 123782 ARV-606390 701-49800-240 MECHANIC TOOLS 314.87
SNAP-ON INDUSTRIAL 06/24/2024 123782 ARV-606486 701-49800-240 MECHANIC TOOLS 34.66
SNAP-ON INDUSTRIAL 06/24/2024 123782 ARV-607429 701-49800-240 MECHANIC TOOLS 420.49
SNAP-ON INDUSTRIAL 06/24/2024 123782 ARV-608045 701-49800-240 MECHANIC TOOLS 289.12
SNAP-ON INDUSTRIAL 06/24/2024 123782 ARV-610946 701-49800-240 MECHANIC TOOLS 405.96
Total 123782:2,974.55
STREICHER'S 06/24/2024 123783 I1696172 101-42110-226 UNIFORMS/FOURNIER Police Department 139.98
STREICHER'S 06/24/2024 123783 I1696619 101-42110-226 UNIFORMS/MCCOY Police Department 36.99
STREICHER'S 06/24/2024 123783 I1696852 101-42110-226 UNIFORMS/FOURNIER Police Department 49.99
STREICHER'S 06/24/2024 123783 I1697250 101-42110-226 UNIFORMS/RUSSETH Police Department 70.99
STREICHER'S 06/24/2024 123783 I1697806 101-42110-226 UNIFORMS/SCHAUER Police Department 54.99
STREICHER'S 06/24/2024 123783 I1697959 101-42110-226 UNIFORMS/RUSSETH Police Department 39.00
22
City of Orono Check Register - COUNCIL REPORT Page: 13
Check Issue Dates: 6/7/2024 - 6/24/2024 Jun 18, 2024 04:41PM
Check Check Invoice Invoice GL Account Description Department Invoice
Payee Issue Date Number Number Amount
STREICHER'S 06/24/2024 123783 I1698077 101-42110-226 UNIFORMS/RUSSETH Police Department 674.94
STREICHER'S 06/24/2024 123783 I1698870 101-42110-226 UNIFORMS/RUSSETH Police Department 264.99
STREICHER'S 06/24/2024 123783 I1698988 101-42110-226 UNIFORMS/SCHWARZ Police Department 137.97
STREICHER'S 06/24/2024 123783 I1699549 101-42110-226 UNIFORMS/HENNESSY Police Department 108.99
STREICHER'S 06/24/2024 123783 I1699587 101-42110-226 UNIFORMS/KLUKAS Police Department 74.99
STREICHER'S 06/24/2024 123783 I1700458 101-42110-226 UNIFORMS/SONNEK Police Department 1,722.00
STREICHER'S 06/24/2024 123783 I1700693 101-42110-226 UNIFORMS/RUSSETH Police Department 1,578.90
STREICHER'S 06/24/2024 123783 I1700857 101-42110-226 UNIFORMS/FOURNIER Police Department 49.99
STREICHER'S 06/24/2024 123783 I1700984 101-42110-226 UNIFORMS/VARGAS Police Department 49.99
STREICHER'S 06/24/2024 123783 I1701500 101-42110-226 UNIFORMS/MCCOY Police Department 361.00
STREICHER'S 06/24/2024 123783 I1701805 101-42110-226 UNIFORMS/SCHAUER Police Department 199.00
STREICHER'S 06/24/2024 123783 I1701873 101-42110-226 UNIFORMS/RUSSETH Police Department 302.99
Total 123783:5,917.69
STRYKER SALES LLC 06/24/2024 123784 9206361393 101-42260-219 SPARE BATTERY FOR LUCAS DEVICE Fire Protection Services 817.70
Total 123784:817.70
SUN AUTO TIRE & SERVICE 06/24/2024 123785 520800870 701-49800-402 STAFF VEHICLE ALIGNMENT 129.59
Total 123785:129.59
Temple Israel/Camp TEKO 06/24/2024 123786 CAS22-0000 101-22205 ESCROW REFUND - CAS22-000003 - 645 TONKA 1,000.00
Temple Israel/Camp TEKO 06/24/2024 123786 CPS22-0000 101-22205 ESCROW REFUND - CPS22-000002 - 645 TONKA 1,000.00
Total 123786:2,000.00
TERMINAL SUPPLY INC.06/24/2024 123787 42351-00 701-49800-215 SHOP SUPPLIES 565.30
TERMINAL SUPPLY INC.06/24/2024 123787 42783-00 701-49800-215 BOLTS 872.17
Total 123787:1,437.47
THOMSON REUTERS - WEST 06/24/2024 123788 850240878 101-42110-311 DATA PROCESSING/THOMSON REUTERS Police Department 302.99
Total 123788:302.99
TimeSaver Off Site Secretarial Inc 06/24/2024 123789 M29220 101-41300-319 CC MINUTES 5/13, 5/28 Administration 531.50
TimeSaver Off Site Secretarial Inc 06/24/2024 123789 M29220 101-42400-319 PLANNING COMMISSION MINUTES 5/20 Building & Zoning 167.00
TimeSaver Off Site Secretarial Inc 06/24/2024 123789 M29259 101-41300-319 CC MINUTES 6/10 Administration 167.00
23
City of Orono Check Register - COUNCIL REPORT Page: 14
Check Issue Dates: 6/7/2024 - 6/24/2024 Jun 18, 2024 04:41PM
Check Check Invoice Invoice GL Account Description Department Invoice
Payee Issue Date Number Number Amount
Total 123789:865.50
ULINE 06/24/2024 123790 178898281 601-49400-227 STORAGE CONTAINER PALLETS WATER SUPPL 867.52
ULINE 06/24/2024 123790 179054046 101-43000-221 FLAMMABLE STORAGE CABINETS FOR FUEL A Public Works Department 4,665.64
ULINE 06/24/2024 123790 179521904 101-43000-224 CREDIT ON DAMAGED CABINET Public Works Department 103.80-
Total 123790:5,429.36
UNIFIRST CORPORATION 06/24/2024 123791 1410065158 613-49830-404 LAUNDRY Golf Course 124.77
UNIFIRST CORPORATION 06/24/2024 123791 1410065162 701-49800-221 SHOP TOWELS - PW 3.35
UNIFIRST CORPORATION 06/24/2024 123791 1410065162 101-43000-404 RUGS - PW Public Works Department 26.13
UNIFIRST CORPORATION 06/24/2024 123791 1410065162 101-41900-223 MOPS/CLEANING TOWELS Central Services 27.18
UNIFIRST CORPORATION 06/24/2024 123791 1410065162 602-49450-226 UNIFORMS PW-SEWER DEPT Sewer 28.20
UNIFIRST CORPORATION 06/24/2024 123791 1410065162 601-49400-226 UNIFORMS PW-WATER DEPT 28.20
UNIFIRST CORPORATION 06/24/2024 123791 1410065162 701-49800-226 UNIFORMS - FLEET 37.63
UNIFIRST CORPORATION 06/24/2024 123791 1410065162 651-49910-226 UNIFORMS - STORMWATER Storm Water 50.66
UNIFIRST CORPORATION 06/24/2024 123791 1410065162 101-43000-226 UNIFORMS-STREETS Public Works Department 50.67
UNIFIRST CORPORATION 06/24/2024 123791 1410065162 101-41900-226 UNIFORMS-FACILITY Central Services 12.14
UNIFIRST CORPORATION 06/24/2024 123791 1410065162 613-49830-226 UNIFORMS-GOLF COURSE Golf Course 5.84
UNIFIRST CORPORATION 06/24/2024 123791 1410065162 101-45200-226 UNIFORMS-PARKS Parks 5.84
UNIFIRST CORPORATION 06/24/2024 123791 1410066824 613-49830-404 LAUNDRY Golf Course 42.50
UNIFIRST CORPORATION 06/24/2024 123791 1410066828 602-49450-226 UNIFORMS PW-SEWER DEPT Sewer 27.87
UNIFIRST CORPORATION 06/24/2024 123791 1410066828 601-49400-226 UNIFORMS PW-WATER DEPT 27.85
UNIFIRST CORPORATION 06/24/2024 123791 1410066828 701-49800-221 SHOP TOWELS - PW 3.35
UNIFIRST CORPORATION 06/24/2024 123791 1410066828 101-43000-404 RUGS - PW Public Works Department 26.13
UNIFIRST CORPORATION 06/24/2024 123791 1410066828 101-41900-223 MOPS/CLEANING TOWELS Central Services 27.18
UNIFIRST CORPORATION 06/24/2024 123791 1410066828 701-49800-226 UNIFORMS - FLEET 36.41
UNIFIRST CORPORATION 06/24/2024 123791 1410066828 651-49910-226 UNIFORMS - STORMWATER Storm Water 50.28
UNIFIRST CORPORATION 06/24/2024 123791 1410066828 101-43000-226 UNIFORMS-STREETS Public Works Department 50.24
UNIFIRST CORPORATION 06/24/2024 123791 1410066828 101-41900-226 UNIFORMS-FACILITY Central Services 11.40
UNIFIRST CORPORATION 06/24/2024 123791 1410066828 613-49830-226 UNIFORMS-GOLF COURSE Golf Course 7.90
UNIFIRST CORPORATION 06/24/2024 123791 1410066828 101-45200-226 UNIFORMS-PARKS Parks 5.66
Total 123791:717.38
US Bank Equipment Finance 06/24/2024 123792 531510006 710-49970-413 COPIERS - 06/24 1,469.20
Total 123792:1,469.20
24
City of Orono Check Register - COUNCIL REPORT Page: 15
Check Issue Dates: 6/7/2024 - 6/24/2024 Jun 18, 2024 04:41PM
Check Check Invoice Invoice GL Account Description Department Invoice
Payee Issue Date Number Number Amount
VALLEY RICH CO 06/24/2024 123793 33349 601-49400-405 REPAIR HYDRANT GATE VALVE 6,328.50
Total 123793:6,328.50
WM CORPORATE SERVICES, IN 06/24/2024 123794 0114462-280 603-49500-444 ORGANICS MAY 2024 90.28
WM CORPORATE SERVICES, IN 06/24/2024 123794 0114462-280 603-49500-316 RECYCLING JUN 2024 19,439.25
WM CORPORATE SERVICES, IN 06/24/2024 123794 7935399-159 603-49500-442 DUMPSTER FOR ROADSIDE DEBRIS 463.98
WM CORPORATE SERVICES, IN 06/24/2024 123794 7935400-159 603-49500-442 SPRING CLEAN UP 2024 6,694.78
Total 123794:26,688.29
Wright-Hennepin Coop Electric 06/24/2024 123795 3503138822 101-43100-381 BRUSH SITE 05/01-06/01 Brush Site 32.15
Wright-Hennepin Coop Electric 06/24/2024 123795 3503138822 613-49830-381 GC SECURITY TO 07/31/2024 Golf Course 42.21
Wright-Hennepin Coop Electric 06/24/2024 123795 3503138822 101-43000-381 ELECTRICAL SERVICE 05/01/24-06/01/24 Public Works Department 214.11
Total 123795:288.47
XCEL ENERGY 06/24/2024 123796 880859498 613-49830-381 ELECTRIC SERVICE 5/24/24-6/23/24 Golf Course 4.74
XCEL ENERGY 06/24/2024 123796 880859498 101-42110-381 ELECTRIC SERVICE 5/24/24-6/23/24 Police Department 2.77
XCEL ENERGY 06/24/2024 123796 880859498 101-43000-381 ELECTRIC SERVICE 5/24/24-6/23/24 Public Works Department 16.21
XCEL ENERGY 06/24/2024 123796 880859498 101-43000-386 ELECTRIC SERVICE 5/24/24-6/23/24 Public Works Department 494.01
Total 123796:517.73
AMAZON CAPITAL SERVICE 06/24/2024 20130488 1677-7LYM-Y 701-49800-240 MECHANICS TOOL CARTS 265.58-
AMAZON CAPITAL SERVICE 06/24/2024 20130488 17YX-WTDR-101-43000-221 24X18 DRY ERASE BOARD Public Works Department 23.71
AMAZON CAPITAL SERVICE 06/24/2024 20130488 17YX-WTDR-101-43000-221 CORK BOARD NEW SHOP Public Works Department 39.89
AMAZON CAPITAL SERVICE 06/24/2024 20130488 17YX-WTDR-101-41900-489 ARROW STICKERS FOR OPEN HOUSE Central Services 19.49
AMAZON CAPITAL SERVICE 06/24/2024 20130488 17YX-WTDR-101-43000-221 COMMAND STRIPS FOR NEW BUILDING Public Works Department 13.59
AMAZON CAPITAL SERVICE 06/24/2024 20130488 17YX-WTDR-101-43000-226 GLOVES FOR TRACE 2PAIR Public Works Department 27.56
AMAZON CAPITAL SERVICE 06/24/2024 20130488 17YX-WTDR-101-43000-221 CORK BOARD NEW SHOP Public Works Department 39.89
AMAZON CAPITAL SERVICE 06/24/2024 20130488 17YX-WTDR-101-43000-224 C BATTERIES Public Works Department 19.49
AMAZON CAPITAL SERVICE 06/24/2024 20130488 17YX-WTDR-101-43000-224 10PACK HOSE SPRAY Public Works Department 48.95
AMAZON CAPITAL SERVICE 06/24/2024 20130488 17YX-WTDR-101-43000-221 6 PACK DOOR STOP FOR NEW PW Public Works Department 29.99
AMAZON CAPITAL SERVICE 06/24/2024 20130488 1DW4-KQMC 101-41900-201 SHEET PROTECTORS Central Services 21.18
AMAZON CAPITAL SERVICE 06/24/2024 20130488 1DW4-KQMC 101-41900-201 PRINTABLE POSTCARDS Central Services 71.48
AMAZON CAPITAL SERVICE 06/24/2024 20130488 1KQY-FVXQ-101-42260-223 WASH BRUSHES FOR TRUCKS Fire Protection Services 152.30
AMAZON CAPITAL SERVICE 06/24/2024 20130488 1PPD-31LL-1 701-49800-215 SHOP SUPPLIES 192.75
AMAZON CAPITAL SERVICE 06/24/2024 20130488 1PPD-31LL-1 701-49800-222 VEHICLE PARTS 124.77
AMAZON CAPITAL SERVICE 06/24/2024 20130488 1PPD-31LL-1 701-49800-240 MECHANICS TOOL CART 228.06
25
City of Orono Check Register - COUNCIL REPORT Page: 16
Check Issue Dates: 6/7/2024 - 6/24/2024 Jun 18, 2024 04:41PM
Check Check Invoice Invoice GL Account Description Department Invoice
Payee Issue Date Number Number Amount
AMAZON CAPITAL SERVICE 06/24/2024 20130488 1PPD-31LL-1 701-49800-215 SHOP SUPPLIES 18.69
AMAZON CAPITAL SERVICE 06/24/2024 20130488 1VP1-7L3N-415-42260-580 SAFETY GLASSES PPE 35.99
AMAZON CAPITAL SERVICE 06/24/2024 20130488 1VP1-7L3N-101-42260-240 DOLLY Fire Protection Services 89.99
AMAZON CAPITAL SERVICE 06/24/2024 20130488 1VP1-7L3N-101-42260-201 TRASH CONTAINER FOR SHOP AREA Fire Protection Services 62.97
AMAZON CAPITAL SERVICE 06/24/2024 20130488 1VP1-7L3N-101-42260-201 CABLE TIES Fire Protection Services 8.86
AMAZON CAPITAL SERVICE 06/24/2024 20130488 1VP1-7L3N-101-42260-215 PLASTIC FIELD BOX FOR STORAGE Fire Protection Services 69.45
AMAZON CAPITAL SERVICE 06/24/2024 20130488 1VP1-7L3N-440-48960-530 4" BASE MOLDING 57.99
AMAZON CAPITAL SERVICE 06/24/2024 20130488 1VP1-7L3N-101-42260-215 SAFETY CONES Fire Protection Services 107.99
AMAZON CAPITAL SERVICE 06/24/2024 20130488 1VP1-7L3N-440-48960-530 6" BASE MOLDING 97.99
AMAZON CAPITAL SERVICE 06/24/2024 20130488 1VP1-7L3N-101-42260-201 TRASH BIN FOR SHOP AREA Fire Protection Services 98.49
AMAZON CAPITAL SERVICE 06/24/2024 20130488 1VP1-7L3N-101-42260-226 GARMENT BAGS FOR UNIFORMS Fire Protection Services 61.98
AMAZON CAPITAL SERVICE 06/24/2024 20130488 1VP1-7L3N-101-42260-226 HANGERS FOR UNIFORMS Fire Protection Services 44.99
AMAZON CAPITAL SERVICE 06/24/2024 20130488 1VP1-7L3N-440-48960-530 MURPHY BED 1,294.52
AMAZON CAPITAL SERVICE 06/24/2024 20130488 1VP1-7L3N-440-48960-530 ENTRANCE FLOOR MAT 128.00
AMAZON CAPITAL SERVICE 06/24/2024 20130488 1VP1-7L3N-440-48960-530 ENTRANCE FLOOR MAT 151.00
AMAZON CAPITAL SERVICE 06/24/2024 20130488 1VP1-7L3N-101-42260-219 LARGE MEDICAL GLOVES Fire Protection Services 59.99
AMAZON CAPITAL SERVICE 06/24/2024 20130488 1VP1-7L3N-101-42260-219 X-LARGE MEDICAL GLOVES Fire Protection Services 59.99
AMAZON CAPITAL SERVICE 06/24/2024 20130488 1VP1-7L3N-101-42260-219 SMALL MEDICAL GLOVES Fire Protection Services 59.99
AMAZON CAPITAL SERVICE 06/24/2024 20130488 1VP1-7L3N-101-42260-226 PILLOWS Fire Protection Services 27.99
AMAZON CAPITAL SERVICE 06/24/2024 20130488 1VP1-7L3N-101-42260-226 MATTRESS PROTECTOR Fire Protection Services 29.99
AMAZON CAPITAL SERVICE 06/24/2024 20130488 1VP1-7L3N-101-42260-226 QUEEN SHEET SET Fire Protection Services 39.98
AMAZON CAPITAL SERVICE 06/24/2024 20130488 1VP1-7L3N-101-42260-219 MED MEDICAL GLOVES Fire Protection Services 59.99
AMAZON CAPITAL SERVICE 06/24/2024 20130488 1VP1-7L3N-101-42260-219 VICKS OINTMENT Fire Protection Services 28.74
AMAZON CAPITAL SERVICE 06/24/2024 20130488 1VPJ-HQ3P-710-49970-221 CITY SERVER BATTERY BACKUP 152.38
AMAZON CAPITAL SERVICE 06/24/2024 20130488 1X7M-WLQH 101-41900-404 CREDIT Central Services 68.50-
AMAZON CAPITAL SERVICE 06/24/2024 20130488 1XWT-LYLQ-101-41900-404 CLEANING SUPPLIE Central Services 131.30
AMAZON CAPITAL SERVICE 06/24/2024 20130488 1XWT-LYLQ-101-41900-404 CREDIT Central Services 17.09-
Total 20130488:3,681.17
FSSolutions 06/24/2024 20130489 FL00634541 101-43000-319 DRUG TESTING 2ND QTR 2024 Public Works Department 176.30
Total 20130489:176.30
INNOVO BENEFITS ADMINISTR 06/24/2024 20130490 1405165 101-21706 HEALTH INSURANCE - 07.2024 62,615.04
INNOVO BENEFITS ADMINISTR 06/24/2024 20130490 1405165 101-42110-135 HEALTH INSURANCE - 07.2024-DM Police Department 768.54
INNOVO BENEFITS ADMINISTR 06/24/2024 20130490 1405165 601-49400-135 HEALTH INSURANCE - 07.2024-BR 768.54
Total 20130490:64,152.12
26
City of Orono Check Register - COUNCIL REPORT Page: 17
Check Issue Dates: 6/7/2024 - 6/24/2024 Jun 18, 2024 04:41PM
Check Check Invoice Invoice GL Account Description Department Invoice
Payee Issue Date Number Number Amount
JANI-KING OF MINNESOTA, INC 06/24/2024 20130491 MIN0624024 101-41900-404 FIRESTATION CLEANING Central Services 5,000.00
Total 20130491:5,000.00
LOGIS-WIRE 06/24/2024 20130492 13011 101-42110-310 POLICE RECORDS Police Department 18,219.00
LOGIS-WIRE 06/24/2024 20130492 13011 710-49970-311 POLICE MOBILE 2,390.00
LOGIS-WIRE 06/24/2024 20130492 13011 710-49970-311 HOSTED WATCHGUARD 3,118.00
LOGIS-WIRE 06/24/2024 20130492 13011 710-49970-311 HOSTED SERVERS MAIL01 625.00
LOGIS-WIRE 06/24/2024 20130492 13011 710-49970-311 HOSTED OR APPS2 1,979.00
LOGIS-WIRE 06/24/2024 20130492 13011 710-49970-401 HOSTED WIRELESS 350.00
LOGIS-WIRE 06/24/2024 20130492 13011 710-49970-329 INTERNET 1,891.00
LOGIS-WIRE 06/24/2024 20130492 13011 710-49970-311 HOSTED SERVER RELAY 353.00
LOGIS-WIRE 06/24/2024 20130492 13011 710-49970-401 FIBER SERVICES 585.00
LOGIS-WIRE 06/24/2024 20130492 13011 101-41900-221 HOSTED BACKUPS Central Services 3,338.00
LOGIS-WIRE 06/24/2024 20130492 13011 710-49970-311 HOSTED COMPLIANCE ARCHIVE 1,690.00
LOGIS-WIRE 06/24/2024 20130492 13011 710-49970-311 HOSTED SERVERS 2,361.00
LOGIS-WIRE 06/24/2024 20130492 13011 710-49970-575 POLICE CAD 4,724.00
LOGIS-WIRE 06/24/2024 20130492 16008 710-49970-311 HOSTED SERVERS 5,382.00
LOGIS-WIRE 06/24/2024 20130492 18008 710-49970-311 VPN DEVICE SERVICE 5,193.00
LOGIS-WIRE 06/24/2024 20130492 22014 710-49970-311 NETWORK SERVICES 4,966.25
Total 20130492:57,164.25
MEDSURETY LLC 06/24/2024 20130493 06.14.24 FSA 101-21719 FSA 06.14.24 1,666.64
MEDSURETY LLC 06/24/2024 20130493 06.18.24 FSA 101-21719 FSA 5.10.24-6.16.24 151.61
MEDSURETY LLC 06/24/2024 20130493 5.3.24-6.9.24 101-21719 MFSA 01.19.24-02.25.24 FUNDS 70.91
Total 20130493:1,889.16
METROPOLITAN COUNCIL- SAC 06/24/2024 20130494 05.2024 SAC 101-20809 SAC 05/2024 2,485.00
METROPOLITAN COUNCIL- SAC 06/24/2024 20130494 05.2024 SAC 101-39610 SAC 05/2024 DISCOUNT 24.85-
Total 20130494:2,460.15
MN DEPT OF REVENUE-WIRE 06/24/2024 20130495 05.2024 Sale 101-34650 POLICE REPORT SALES TAX 17.00
MN DEPT OF REVENUE-WIRE 06/24/2024 20130495 05.2024 Sale 601-39610 WATER METER SALES 92.00
MN DEPT OF REVENUE-WIRE 06/24/2024 20130495 05.2024 Sale 601-20806 WATER TAXABLE SALES 1,013.00
MN DEPT OF REVENUE-WIRE 06/24/2024 20130495 05.2024 Sale 601-20806 WATER TAXABLE SALES BULK WATER 1.00
MN DEPT OF REVENUE-WIRE 06/24/2024 20130495 05.2024 Sale 613-37910 GREEN FEES 2,567.00
MN DEPT OF REVENUE-WIRE 06/24/2024 20130495 05.2024 Sale 613-37920 GOLF CART RENTAL 899.00
27
City of Orono Check Register - COUNCIL REPORT Page: 18
Check Issue Dates: 6/7/2024 - 6/24/2024 Jun 18, 2024 04:41PM
Check Check Invoice Invoice GL Account Description Department Invoice
Payee Issue Date Number Number Amount
MN DEPT OF REVENUE-WIRE 06/24/2024 20130495 05.2024 Sale 613-37930 BEER - SALES TAX 143.00
MN DEPT OF REVENUE-WIRE 06/24/2024 20130495 05.2024 Sale 613-37940 CONCESSIONS - SALES TAX 201.00
MN DEPT OF REVENUE-WIRE 06/24/2024 20130495 05.2024 Sale 613-37960 GOLF BALL SALES 44.00
MN DEPT OF REVENUE-WIRE 06/24/2024 20130495 05.2024 Sale 613-37970 PRO SHOP SALES - SALES TAX 20.00
MN DEPT OF REVENUE-WIRE 06/24/2024 20130495 05.2024 Sale 613-37980 CLOTHING (HAT) SALES TAX 16.00
Total 20130495:5,013.00
Grand Totals: 590,195.48
28
Date: June 24, 2024 Item: 5
Presenter: James Van Eyll, Fire Chief
Section: Consent Agenda
Title: Equipment Loan Agreement between the City of Lino Lakes and the City of
Orono
1.Purpose:
The purpose of this council action item is to have a back up plan in place for a fire tanker/tender
truck if our newly purchased truck isn't available before July 1, 2024.
2.Background:
The City of Orono does not supply municipal water to some areas of the City. The Orono Fire
Department will need to supply their own water supply in those non-hydrant areas. The City of
Orono approved the purchase of a new tanker for use by the fire department. The tanker, due to
longer than normal leads times, might not be available for us to use on July 1, 2024.
3.Cost:
The cost to rent a fire tanker/tender from the City of Lino Lakes is $2,000 per month along with
any maintenance and the pumps test that is required.
4.Funding:
The funding for this rental will be out of the operating fund of the fire department.
5.Staff Recommendation:
I recommend to approve the equipment loan agreement.
AGENDA ITEM
COUNCIL ACTION REQUESTED
Motion to approve the Equipment Loan Agreement between the City of Lino Lakes and the City of
Orono for use by the Orono Fire Department.
Exhibits
Equipment Loan Agreement.DOCX
29
EQUIPMENT LOAN AGREEMENT
BETWEEN THE CITY OF LINO LAKES AND THE CITY OF ORONO FOR USE BY
THE ORONO FIRE DEPARTMENT
This agreement (“Agreement”) is made and entered into by and between the City of Lino
Lakes, Minnesota (the “Lender”) and the City of Orono, Minnesota (the “Borrower”).
1.Loaned Equipment. In exchange for good and valuable consideration, the sufficiency and
receipt of which is hereby acknowledged, the Lender agrees to loan the following
equipment (the “Equipment”) to the Borrower:
Vehicle Vin Description
a.Tender 2 #610 1FDYS82A3NVA08424 1992 Ford/ Toyne Tender
2. Fees. The fee shall be $2,000 per month paid by the Borrower for the use of the
Equipment.
3. Term. The Borrower shall be entitled to use the Equipment until December 31
st, 2024 or
until the Lender recalls the Equipment or the Borrower returns the Equipment, whichever
date is the earliest. The Lender may recall the Equipment at any time with a 30-day notice.
The Lender and any officer, employee or agent of the Lender may not be held liable for
recalling the Equipment.
4. Inspection, Maintenance, and Return of Equipment. The Borrower is responsible for
scheduling and any fees associated with Emergency Apparatus Maintenance (“EAM”)
performance of a vehicle inspection, pump certification prior to sending it to the Lender,
and must return the Equipment in the same condition in which it was received, except
normal wear and tear. Any Equipment using fuel or other fluids must be returned with the
same level of fuel that the Equipment had when loaned to the Borrower. The Borrower is
responsible for any repairs and deficiencies found during the EAM inspection and pump
certification not identified on the previous report from EAM on the equipment. The
Borrower is responsible for removing any and all graphics that were added to the
equipment, if any, prior to returning the Equipment to the Lender.
5. Routine Maintenance. The Borrower is responsible for any routine maintenance required
to operate the Equipment while in the Borrower’s possession. Routine maintenance would
include fuel, lubricants, fluids, repair of a flat tire, and other items that are typically
incidental to the use of the Equipment.
6. Trained Personnel. The Borrower agrees that only trained personnel shall be allowed to
operate the Equipment.
7. Transportation. The Borrower shall be responsible for transporting the Equipment to and
from the Borrower’s location.
30
2
8. Storage. Borrower shall store the Equipment in a safe place while in the Borrower’s
possession.
9. Insurance. The Borrower agrees to maintain the appropriate automobile, property and
liability coverages with the League of Minnesota Cities Insurance Trust under standard
LMCIT liability coverage forms. The Borrower shall add the Lender as an “additional
insured” to the Borrower’s liability coverage for purposes of this Agreement. The
Borrower’s coverage shall be primary and non-contributory to any other coverage available
to the Lender. [Note: Under the LMCIT coverage document, a covered party includes any
person or organization from whom a city leases premises or equipment that is not an
automobile and to whom the city is contractually obligated to have named as an additional
covered party under an agreement.]
10. Workers’ Compensation. The Borrower shall be responsible for injuries to or death of its
own personnel while using the Equipment. The Borrower will maintain workers’
compensation insurance covering its own personnel while they are using the Equipment.
The Borrower waives the right to sue the Lender for any workers’ compensation benefits
paid to its own personnel or their dependents, even if the injuries were caused wholly or
partially by the negligence of the Lender or its officers, employees, volunteers or agents.
11. Damage to Equipment. The Borrower shall be responsible for any damage to or loss of the
Equipment while the Equipment is in the Borrower’s possession.
12. Indemnification. To the fullest extent permitted by law, without waiver of any the
Borrower’s immunities or limits on liability pursuant to Minnesota Statutes, Chapter 466 or
any other applicable law, the Borrower agrees to defend, indemnify and hold the Lender
harmless against any claims brought or actions filed against the Lender or any officer,
employee or agent of the Lender for injury to, death of, or damage to the property of any
third person or persons, arising from the Borrower’s negligent use of the Equipment or the
Borrower’s failure to perform its obligations under this Agreement.
13. Entire Agreement. This Agreement supersedes any prior or contemporaneous
representations or agreements, whether written or oral, between the Borrower and Lender
and contains the entire agreement.
14. Amendments. Any modification or amendment to this Agreement shall require a written
agreement signed by both the Borrower and the Lender.
15. Governing Law. This Agreement shall be governed by and interpreted in accordance with
the laws of the State of Minnesota.
16. Captions. Captions or headings contained in this Agreement are included for convenience
only and form no part of the agreement between the Borrower and the Lender.
17. Waivers. The waiver by either the Borrower or the Lender of any breach or failure to
comply with any provision of this Agreement by the other party shall not be construed as,
31
3
or constitute a continuing waiver of such provision or a waiver of any other breach of or
failure to comply with any other provision of this Agreement.
18. Counterparts. This Agreement may be executed in counterparts, each of which shall be an
original, all of which shall constitute but one and the same instrument.
19. Savings Clause. If any court finds any portion of this Agreement to be contrary to law or
invalid, the remainder of the Agreement will remain in full force and effect.
20. Effective Date. This Agreement is effective on the date last executed by one of the Parties
below.
IN WITNESSA WHEREOF, the Borrower and Lender, by action of their respective governing
bodies, caused this Agreement to be approved.
CITY OF LINO LAKES,CITY OF ORONO,
MINNESOTA MINNESOTA
Dated: ______________________________Dated: ______________________________
BY:BY:
Its Mayor Its Mayor
AND:________________________________AND:
Its Clerk Its Clerk
32
Date: June 24, 2024 Item: 6
Presenter: Maggie Jin, Finance Director
Section: Consent Agenda
Title: Hire IT Technician
1.Purpose:
The purpose of this action is to hire and appoint the IT Technician position.
2.Background:
At the May 13th Council meeting, the IT Technician position was amended and recruitment for the
position was authorized.
3.Recruitment:
Staff posted the position through June 2nd and received thirty applications. The interview process
was conducted on June 11th and 12th. Staff have selected a candidate to fill the position.
4.Recommended Candidate:
Jon Guimont is the recommended candidate for the IT Technician Position. Jon has had over 2
years of experience in IT support and have been serving in the public sector for over 7 years.
5.Recommended Compensation:
Staff recommends that Mr. Guimont be appointed to the position of IT Technician effective July
15, 2024.
a. Salary. Starting wage of $29.28 (Grade 8, Start Step)
b. Benefits. Vacation will accrue at a rate of 10 days per year and follow Local 12 Union
agreement. Vacation and sick leave will begin on the start date. The employee will be
eligible to participate in the City's benefit package starting the first day of the month
following 30 days of employment.
AGENDA ITEM
COUNCIL ACTION REQUESTED
Motion to appoint Jon Guimont to the position of IT Technician effective July 15, 2024.
33
Date: June 24, 2024 Item: 7
Presenter: Adam Edwards, City Administrator / Engineer
Section: Presentations
Title: Lake Minnetonka Conservation District
1.Purpose:
Orono's Lake Minnetonka Conservation District representative, Mr. Richie Anderson, will
provide an update on LMCD activities and budget.
2.Staff Recommendation:
No
AGENDA ITEM
COUNCIL ACTION REQUESTED
None
34
Date: June 24, 2024 Item: 8
Presenter: Maggie Jin, Finance Director
Section: Presentations
Title: 2023 Annual Comprehensive Financial Report Presentation
1.Purpose:
The purpose of this item is to publicly present the 2023 audit and draft Annual Comprehensive
Financial Report (ACFR) to the Council and public.
2.Background:
Upon completion of the annual audit, the City’s auditors publicly present the results to the Mayor
and Council. Tyler See from Abdo Solutions is here tonight to present the 2023 audit results.
3.Staff Recommendation:
No action is required. This is an information item only.
AGENDA ITEM
COUNCIL ACTION REQUESTED
No action is required. This is an information item only.
Exhibits
A. 2023 Draft Annual Comprehensive Financial Report
B. 2023 Draft Executive Governance Summary
C. 2023 Draft Other Required Reports
35
ANNUAL COMPREHENSIVE
FINANCIAL REPORT
FOR THE YEAR ENDED
DECEMBER 31, 2023
CITY OF ORONO,
MINNESOTA
CITY OF ORONOCITY OF ORONO,,
MINNESOTAMINNESOTA
36
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BLANKINTENTIONALLY
37
CITY OF ORONO, MINNESOTA
ANNUAL COMPREHENSIVE
FINANCIAL REPORT
FOR THE YEAR ENDED
DECEMBER 31, 2023
REPORT PREPARED BY:
FINANCE DEPARTMENT
REPORT PREPARED BY:REPORT PREPARED BY:
FINANCE DEPARTMENTFINANCE DEPARTMENT
38
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BLANKINTENTIONALLY
39
City of Orono, Minnesota
Annual Comprehensive Financial Report
Table of Contents
For the Year Ended December 31, 2023
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 35
Statement of Activities 36
Fund Financial Statements
Governmental Funds
Balance Sheet 40
Reconciliation of the Balance Sheet to the Statement of Net Position 43
Statement of Revenues, Expenditures and Changes in Fund Balances 44
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances
to the Statement of Activities 46
General Fund
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 47
Proprietary Funds
Statement of Net Position 48
Statement of Revenues, Expenses and Changes in Net Position 49
Statement of Cash Flows 50
Notes to the Financial Statements 51
Required Supplementary Information
-
General Employees Retirement Fund 84
-
General Employees Retirement Fund 84
Notes to the Required Supplementary Information - General Employee Retirement Fund 85
-
Public Employees Police and Fire Fund 87
-
Public Employees Police and Fire Fund 87
Notes to the Required Supplementary Information - Public Employees Police and Fire Fund 88
90
5
o the Statement of Activitieso the Statement of Activities
General FundGeneral Fund
Statement of Revenues, Expenditures and Changes in FundStatement of Revenues, Expenditures and Changes in Fund Balances --Budget and ActualBudget and Actual
roprietary Fundsroprietary Funds
StatementStatement of Net Positionof Net Position
Statement of Revenues, ExpensesStatement of Revenues, Expenses aand Changes in Net Positionnd Changes in Net Position
StatementStatement of Cash Flowsof Cash Flows
Notes to the Financial StatementsNotes to the Financial Statements
Required Supplementary InformationRequired Supplementary Information
40
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6 41
City of Orono, Minnesota
Annual Comprehensive Financial Report
Table of Contents (Continued)
For the Year Ended December 31, 2023
Page No.
Combining and Individual Fund Financial Statements and Schedules
Nonmajor Governmental Funds
Combining Balance Sheet 94
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 95
Nonmajor Special Revenue Funds
Combining Balance Sheet 98
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 100
Nonmajor Debt Service Funds
Combining Balance Sheet 104
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 105
Nonmajor Capital Projects Fund
Combining Balance Sheet 108
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 110
Nonmajor Proprietary Funds
Combining Statement of Net Position 114
Combining Statement of Revenues, Expenses and Changes in Net Position 115
Combining Statement of Cash Flows 116
General Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 117
Internal Service Funds
Combining Statement of Net Position 120
Combining Statement of Revenues, Expenses and Changes in Net Position 121
Combining Statement of Cash Flows 122
Statistical Section (Unaudited)
Financial Trends
Summary Financial Report - Revenues and Expenditures for General Operations - Governmental Funds 127
Net Position by Component 128
Changes in Net Position 130
Fund Balances of Governmental Funds 134
Changes in Fund Balances of Governmental Funds 136
Revenue Capacity
Assessed Value and Estimated Actual Value of Taxable Property 138
Property Tax Rates - Direct and Overlapping Governments 139
Principal Property Taxpayers 140
Property Tax Levies and Collections 141
Debt Capacity
Ratios of Outstanding Debt by Type 142
Ratios of General Bonded Debt Outstanding 143
Direct and Overlapping Governmental Activities Debt 145
Legal Debt Margin Information 146
Pledged Revenue Coverage 148
Demographic and Economic Information
Demographic and Economic Statistics 149
Principal Employers 151
Operating Information
Full-Time Equivalent Employees by Function 152
Operating Indicators by Function 154
Capital Asset Statistics by Function 156
7
Schedule of Revenues, Expenditures and Changes in Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Balances -Budget and ActualBudget and Actual
Internal Service FundsInternal Service Funds
bining Statement of Net Positionbining Statement of Net Position
Combining Statement of Revenues, Expenses andCombining Statement of Revenues, Expenses and Changes in Net PositionChanges in Net Position
Combining Statement of Cash FlowsCombining Statement of Cash Flows
Statistical Section (Unaudited)Statistical Section (Unaudited)
Financial TrendsFinancial Trends
Summary Financial Report Summary Financial Report -Revenues and Expenditures for General OperationsRevenues and Expenditures for General Operations -Governmental Fundsunds
Net PositioNet Position by Componentn by Component
42
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8 43
INTRODUCTORY SECTION
CITY OF ORONO, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2023
9
FOR THE YEAR ENDEDFOR THE YEAR ENDED
DECEMBER 31, DECEMBER 31, 2023
44
Maint. Worker
Maint. Worker
Maint. Worker
Cadet/
CSO
City Staff Organization
Patrol Officer
City Administrator / City Engineer
Engineering
(Bolton and Menk)
Full Time Part Time
ContractSeasonal / ReserveCity Attorney
(Campbell
Knutson)
Fire
In 2023
Building Official
IT Tech
Resource Mgmt Tech
Front Desk
Park Maintenance
Lead Worker
Clubhouse
Events / Rec
Utilities Streets &Storm
Brush site
Fleet Mechanic
Custodian / Grounds
Prosecuting
Attorney
Accountant
Management
Assistant /
Communications
PlannersPlanner
Planning Admin
PW / Parks Admin
Golf CourseGolf CourseGolf CourseGC Attendants
Golf CourseGolf CourseGolf Course
GC Greenkeeper
Parks Maint.
Maint. Worker
Brush siteBrush site
Maint. Worker
Maint. WorkerMaint. WorkerMaint. WorkerMaint. Worker
City Council
Residents of Orono
Front
Desk
Office Mgr
Front
Desk
Deputy
Chief
Sergeant
Cadet/
CSO Police Reserve
InvestigatorInvestigator
Sergeant Sergeant
Patrol Officer
- SRO
Patrol OfficerPatrol Officer
Patrol Officer
- SRO
Patrol Officer
- DTF
Patrol OfficerPatrol OfficerPatrol Officer Patrol Officer
Patrol OfficerPatrol OfficerPatrol OfficerPatrol OfficerPatrol Officer Patrol Officer
Patrol OfficerPatrol OfficerPatrol OfficerPatrol OfficerPatrol Officer Police ReservePolice ReservePolice Reserve
Sergeant
Building Inspector
Sergeant
Police
Chief
Community
Development Director
Public Works
Superintendent
Parks Superintendent
(Parks and Golf course)
Finance DirectorCity Clerk
10
Fire
In 2023
IT Tech
Resource Mgmt Tech
Park Maintenance
Lead Worker
Planner
Planning Admin
Office Mgr
Front
Community
Development Director
Public Works
Superintendent
Parks Superintendent
(Parks and Golf course)
Finance Director
45
City of Orono, Minnesota
Elected and Appointed Officials
For the Year Ended December 31, 2023
11 46
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12 47
FINANCIAL SECTION
CITY OF ORONO, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2023
13
FOR THE FOR THE YEAR ENDEDYEAR ENDED
DECEMBER 31, DECEMBER 31, 2023
48
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14 49
INDEPENDENT AUDITOR S REPORT
Honorable Mayor and City Council
City of Orono, Minnesota
Opinions
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, 2023
financial statements as listed in the table of contents.
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, 2023, 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.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the
standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of
Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our
other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the
audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements
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.
In preparing the financial statements, management is required to evaluate whether there are conditions or events,
considered in the aggregate, that raise substantial doubt about the City
months beyond the financial statement date, including any currently known information that may raise substantial doubt
shortly thereafter.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an
audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will
always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial
likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on
the financial statements.
15
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the
standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of
Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our
other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the
audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
50
In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,
and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test
basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
City
Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise
substantial doubt about the City
We are required to communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the
audit.
Other Matters
Required Supplementary Information
s Discussion and
Analysis starting on page 19 and the Schedules s of
Employer s Contributions, the related notes disclosures and the Schedule of
Related Ratios starting on page 84 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
our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information
because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the
Cit The combining and individual fund financial statements and schedules are presented for
purposes of additional analysis and are not a required part of the basic financial statements. The combining and
individual fund financial statements and schedules are the responsibility of management and were derived from and
relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such
information has been subjected to the auditing procedures applied in the audit of the basic financial statements and
certain additional procedures, including comparing and reconciling such information directly to the underlying accounting
and other records used to prepare the basic financial statements or to the basic financial statements themselves, and
other additional procedures in accordance with auditing standards generally accepted in the United States of America. In
our opinion, the combining and individual fund financial statements and schedules are fairly stated, in all material
respects in relation to the basic financial statements as a whole.
16
Required Supplementary Information
s Discussion and
starting on page 19 and the Schedules s of
s Contributions,the related notes disclosures and the Schedule of
Related Ratios starting on page 84 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 state ments 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 consi
51
Other Information
Management is responsible for the other information in the annual report. The other information comprises the
thereon. Our opinions on the basic financial statement do not cover the other information, and we do not express an
opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and
consider whether a material inconsistency exists between the other information and the basic financial statements or the
other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an
uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated NEED DATE, on our
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,
That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the
Abdo
Minneapolis, Minnesota
NEED DATE
17
Minneapolis, Minnesota
52
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18 53
As management of the City of Orono
narrative overview and analysis of the financial activities of the City for the fiscal year ended December 31, 2023.
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 as shown in the summary of net position on the following
pages. The unrestricted amount of net position may be used to meet the C
and creditors.
pages. The increase this year was due to an increase in property taxes and unrestricted investment earnings, and
charges for services in the business-type activities continuing to outweigh expenses.
For the current fiscal year, the City's governmental funds fund balances are shown in the Financial Analysis of the
City's Funds section of the MD&A. The total fund balance decreased in comparison with the prior year. This
decrease was mainly due to an increase in capital outlay expenditures for project construction. The total of
discretion.
decreased from prior year.
scheduled debt
service payments as shown on the outstanding debt table.
19
resources at the close of the most recent fiscal year as shown in the summary of net position on the followingresources at the close of the most recent fiscal year as shown in the summary of net position on the following
pages. The unrestricted amount of net position may be used to meet the Cpages. The unrestricted amount of net position may be used to meet the C
and creditors.and creditors.
pages. The increase this year was due to an increase in pages. The increase this year was due to an increase in property taxes and unrestricted investment earningsproperty taxes and unrestricted investment earnings
charges for services in the businesscharges for services in the business--type activities continuing to outweigh expenses.type activities continuing to outweigh expenses.
For the current fiscal year, the City's governmental funds fund balances are shown in the Financial Analysis of theFor the current fiscal year, the City's governmental funds fund balances are shown in the Financial Analysis of the
City's Funds section of the MD&A. The total fund balance City's Funds section of the MD&A. The total fund balance decreased in comparison with the prior year. Thiscreased in comparison with the prior year. This
54
Overview of the Financial Statements
basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial
statements, and 3) notes to the financial statements. This report also contains other supplemental information in addition
to the basic financial statements themselves. The following chart shows how the various parts of this annual report are
arranged and related to one another:
The financial statements also include notes that explain some of the information in the financial statements and provide
more detailed data. The statements are followed by a section of combining and individual fund financial statements and
schedules that further explains and supports the information in the financial statements. Figure 1 shows how the required
parts of this annual report are arranged and relate to one another. In addition to these required elements, we have
included a section with combining and individual fund financial statements and schedules that provide details about
nonmajor governmental funds, which are added together and presented in single columns in the basic financial
statements. Internal service funds statements are also included, reflecting balances prior to their elimination from the
government---type activities
columns of said statements.
Figure 1
Required Components of the
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
20
Management's
Discussion and
Analysis
Basic
Financial
Statements
Required
Supplementary
Information
55
statements, including the portion of the City government
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 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
-sector business.
The statement of net position , 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
fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs,
regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items
that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).
21
All deferred All deferred
outflows/inflows of outflows/inflows of
resources, regardless of resources, regardless of
focusfocus
Type of asset/liability Type of asset/liability
informationinformation
All assets and liabilities, All assets and liabilities,
both financial and capital, both financial and capital,
and shortand short--term and longterm and long-
termterm
Only assets expected to be Only assets expected to be
used up and liabilities that used up and liabilities that
come due during the year or come due during the year or
soon thereafter; no capital soon thereafter; no capital
assets includedassets included
All assets and liabilities, All assets and liabilities,
both financial and capital, both financial and capital,
and shortand short--term and longterm and long
term
Type of deferred Type of deferred
outflows/inflows of outflows/inflows of
resources informationresources information
All deferred All deferred
outflows/inflows of outflows/inflows of
resources, regardless of resources, regardless of
Only deferred outflows of Only deferred outflows of
resources expected to be used resources expected to be used
up and deferred inflows or up and deferred inflows or
56
Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes
and intergovernmental revenue (governmental activities) from other functions that are intended to recover all or a
significant portion of their costs through user fees and charges (business-type activities). The governmental activities of
the City include general government, public safety, public works, culture and recreation, community development, and
interest on long-term debt. The business-type activities of the City include water and sewer utilities and the golf course.
The government-wide financial statements start on page 35 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
-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
-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, Municipal State Aid Street fund, Pavement Management Plan and Project Construction 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 40 of this report.
Proprietary Funds. Proprietary funds provide the same type of information as the government-wide financial statements,
only in more detail. The proprietary fund financial statements provide separate information for all the water, sewer, and
golf course funds, which are considered to be major funds of the City. Conversely, all internal service funds are combined
into a single aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal
service funds is provided in the form of combining statements elsewhere in this report.
The City maintains two different types of proprietary funds. Enterprise funds are used to report the same functions
presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to
account for its water, sanitary sewer and golf operations. Internal service funds are an accounting device used to
accumulate and allocate costs internally among the City's various functions. The City uses internal service funds to
account for insurance, compensated absences, fleet management and IT services. Because these services benefit both
governmental and business-type activities, they are allocated to both governmental and business-type activities in the
government-wide financial statements.
The basic proprietary fund financial statements start on page 48 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.
22
governmental fundsgovernmental funds and governmental activitiesgovernmental activities.
The City maintains The City maintains numerousnumerous individual governmental fundsindividual governmental funds. . Information is presented separately in the governmental 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 fund balance sheet and in the governmental fund statement of revenues, expenditures and changes in fund balances for
fundfund,Municipal State Aid StreetMunicipal State Aid Street fundfund, Pavement Management Plan and Project Construction , Pavement Management Plan and Project Construction funds which are
considered to be major fundsconsidered to be major funds. Data from the other Data from the other governmental funds are combined into a single, aggregated governmental funds are combined into a single, aggregated
presentationpresentation. . Individual fund data for each of these nonmajor governmental funds is provided in the form of Individual fund data for each of these nonmajor governmental funds is provided in the form of combining
statements or schedulesstatements or schedules elsewhere in this report.elsewhere in this report.
The City adopts an annual appropriated budget for its General fundThe City adopts an annual appropriated budget for its General fund A bA budgetary comparison statudgetary comparison statement ement hashas been
57
Other Information. In addition to the basic financial statements and accompanying notes, this report also presents
pensions
and other postemployment benefits to its employees.
Required supplementary information can be found starting on page 84 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 94 of this report.
Supplementary Information.In addition to the basic financial statements and accompanying notes, this report also
benefits and other post-employment benefits to its employees. Required supplementary information can be found on
page 84 of this report.
The combining statements referred to earlier in connection with nonmajor governmental funds and internal service funds
are presented following the notes to the financial statements. Combining and individual fund financial statements and
schedules start on page 94 of this report.
Government-wide Financial Analysis
the City, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources at the close of
the most recent fiscal year.
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
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.
23
the most recent fiscal year. the most recent fiscal year.
reflects its investment in capital assets (e.g., land, builreflects its investment in capital assets (e.g., land, buil dings, machinery
and equipment)and equipment)less any related debt used to acquire those assets that is still outstanding. The City uses these capital less any related debt used to acquire those assets that is still outstanding. The City uses these capital
investment in its capitinvestment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this al assets is reported net of related debt, it should be noted that the resources needed to repay this
be provided from other sources, since the capital assets themselves cannot be used to liquidate these be provided from other sources, since the capital assets themselves cannot be used to liquidate these
58
City of Orono s Summary of Net Position
may be used. The remaining balance of unrestricted net position
citizens and creditors.
At the end of the current fiscal year, the City is able to report positive balances in the net investment in capital asset,
restricted, and unrestricted categories.
24 59
Significant changes from the prior year are noted below:
City of Orono s Changes in Net Position
The increase in Program Revenues from the prior year relates to charges for services and operating grants and
contributions. Charges for services increased due to increases in public safety charges and utilities. Operating
grants and contributions increased due to public safety aid.
The increase in Public Safety expenses from prior year is expenses is due to an increase in police and fire
expenses.
The increase in Golf Course expenses from prior year is due to the Golf Course operations moving from
governmental activities to business-type activities in the current year.
25 60
Governmental Activities.Governmental activities increased . 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
$8,000,000
$9,000,000
General
Government
Public Safety Public Works Parks and
Recreation
Community
Development
Interest on Long-
term Debt
Expenses Program Revenues
Revenues by Source - Governmental Activities
26
GovernmentGovernment RecreationRecreation DevelopmentDevelopment term Debtterm Debt
ExpensesExpenses Program RevenuesProgram Revenues
RevenueRevenuess by Source by Source --Governmental ActivitiesGovernmental Activities
61
Business-type Activities. Business-type activities de
position table.
Charges for services for business-type activities increased due to an increase in water, sewer, and stormwater
sales.
Operating grants and contributions for business-type activities increased due to the recognition of ARPA revenue
in the Sewer fund.
Total expenses for business-type activities increased due to an increase in personnel services for both the Water
and Sewer Fund and an increase in MCES (Metropolitan Council Environmental Services) expenses in the Sewer
Fund.
Expenses and Program Revenues - Business-type Activities
Revenues by Source - Business-type Activities
27 62
Financial Analysis of the City
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal
requirements.
Governmental Funds. governmental funds is to provide information on near-term inflows, outflows
and balances of spendable
particular, unassigned fund balance
spending at the end of the fiscal year. The table below outlines the governmental fund balances for the year ending
December 31, 2023:
51 of this report.
The General fund is the chief operating fund of the City. At the end of the current year, the fund balance of the General
fund balance to total fund expenditures. The total unassigned fund balance as a percent of total fund expenditures is
shown in the chart below along with total fund balance as a percent of total expenditures.
decreased during the current fiscal year as shown in the table above. The
decrease in fund balance was due to transfers out to other governmental funds.
28
fund balance to total fund expfund balance to total fund expenditures. The total unassigned fund balance as a percent of total fund expenditures is enditures. The total unassigned fund balance as a percent of total fund expenditures is
shown in the chart below along with total fund balance as a percent of total expenditures.shown in the chart below along with total fund balance as a percent of total expenditures.
63
Other major governmental fund analysis is shown below:
Proprietary Funds. -wide
financial statements, but in more
follows:
29 64
General Fund Budgetary Highlights
not amended during the year as shown above. Actual revenues were over the final
budget and actual expenditures were also over the final budget amounts as shown above.
Capital Asset and Debt Administration
Capital Assets. -type activities as of
December 31, 2023, is shown below in capital asset table (net of accumulated depreciation). This investment in capital
assets includes land, structures, improvements, machinery and equipment, vehicles, roads, highways and bridges.
Major capital asset events during the current fiscal year included the following:
The 2021 Street Improvement project was completed.
The 2022 Street Improvement project was completed.
The CSAH 112 18-043 Project was completed.
The CSAH 19 Watermain Replacement project was completed.
Substantial work was completed on the Tonkawa Force Main Replacement project.
Substantial work was completed on the 2023 Sanitary Sewer Rehabilitations project.
Substantial work was completed on the Public Works Facility.
The City purchased a 2009 Pierce Ladder Truck (unit 505).
The City purchased a 2023 Ford F350 (unit 710).
30
notnot amended during the year as shown above. Actual revenues were over the final amended during the year as shown above. Actual revenues were over the final
actual actual expenditures were expenditures were also overalso over the final budget amounts as shown above. the final budget amounts as shown above.
sset and Debt Administrationsset and Debt Administration
ssetsssets. . -type activities as of type activities as of
December 31, 2023December 31, 2023, is shown below in capital asset table (net of accumulated depreciation). This investment in capital , is shown below in capital asset table (net of accumulated depreciation). This investment in capital
assets includes land, structures, improvements, machinery and equipment, vehicles, roads, highways and bridges. assets includes land, structures, improvements, machinery and equipment, vehicles, roads, highways and bridges.
65
City of Orono s Capital Assets
(Net of Depreciation)
64 of this report.
Long-term Debt.At the end of the current fiscal year, the City had total bonded debt outstanding consisting of revenue
they are all backed by the full faith and credit of the City.
State statutes limit the amount of G.O. debt a Minnesota city may issue to 3 percent of total estimated market value. The
current debt limitation for the City is $147,070,777. Only the $17,110,000 in G.O. bonds is counted within the statutory
limitation.
City of Orono s Outstanding Debt
-term debt can be found in Note 3F starting on page 67 of this report.
Utility rate increases are scheduled to be around 2% per year. These sustainable increases were made possible
by analyzing the utility funds capital needs and making the difficult decision to increase rates significantly over
the past three years.
Property values continue to rise, but at a much lower rate than in previous years. With indications that interest
rates may remain at relatively high levels through next year, it is unlikely that the property tax base will expand as
dramatically as it has over the last three years.
The creation and equipping of the Orono Fire Department has resulted in short term spike in capital expenditures
so that large spikes in capital expenditures can be avoided in the future.
Requests for Information
Questions concerning any of the information provided in this report or requests for additional information should be
addressed by writing to the City of Orono, 2750 Kelley Parkway, Orono, Minnesota 55356 or by calling (952) 249-4600.
31
City of OronoCity of Orono Outstanding DebtOutstanding Debt
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32 67
GOVERNMENT-WIDE FINANCIAL STATEMENTS
CITY OF ORONO, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2023
33
FOR THE FOR THE YEAR ENDEDYEAR ENDED
DECEMBER 31, DECEMBER 31, 2023
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34 69
City of Orono, Minnesota
Statement of Net Position
December 31, 2023
Governmental Business-type
Activities Activities Total
Assets
Cash and temporary investments 16,965,777$ 4,367,495$ 21,333,272$
Receivables
Accrued interest 49,522 458 49,980
Taxes 74,890 - 74,890
Accounts 77,651 483,423 561,074
Special assessments 28,000 35,612 63,612
Lease 1,280,518 - 1,280,518
Due from other governments 860,111 9,730 869,841
Prepaid items 136,312 64,266 200,578
Capital assets
Land and construction in progress 23,271,602 1,521,138 24,792,740
Depreciable assets (net of accumulated depreciation) 28,150,650 20,384,110 48,534,760
Total Assets 70,895,033 26,866,232 97,761,265
Deferred Outflows of Resources
Deferred pension resources 6,172,066 137,957 6,310,023
Liabilities
Accounts and contracts payable 2,075,047 107,941 2,182,988
Accrued salaries payable 105,590 18,228 123,818
Due to other governments 625,677 19,350 645,027
Accrued interest payable 176,820 6,052 182,872
Deposits payable 1,336,899 7,000 1,343,899
Noncurrent liabilities
Due within one year
Long-term liabilities 1,222,931 148,982 1,371,913
Due in more than one year
Long-term liabilities 17,146,631 495,771 17,642,402
Net pension liability 5,110,716 482,079 5,592,795
Other postemployment benefits liability 1,016,678 159,172 1,175,850
Total Liabilities 28,816,989 1,444,575 30,261,564
Deferred Inflows of Resources
Deferred lease resources 1,206,973 - 1,206,973
Deferred pension resources 5,979,032 135,527 6,114,559
Total Deferred Inflows of Resources 7,186,005 135,527 7,321,532
Net Position
Net investment in capital assets 34,721,961 21,343,572 56,065,533
Restricted for
Debt service 681,679 - 681,679
Public safety 371,306 - 371,306
Park improvements 134,054 - 134,054
Drug and alcohol law enforcement 694,510 - 694,510
Home buyer purchase assistance program 142,095 - 142,095
Housing 601,467 - 601,467
Unrestricted 3,717,033 4,080,515 7,797,548
Total Net Position 41,064,105$ 25,424,087$ 66,488,192$
The notes to the financial statements are an integral part of this statement.
35
Accounts and contracts payableAccounts and contracts payable 2,075,0472,075,047 107,941107,941 2,182,9882,182,988
Accrued salaries payableAccrued salaries payable 105,590 18,22818,228
Due to other governmentsDue to other governments 625,677625,677 19,35019,350
Accrued interest payableAccrued interest payable 176,820 6,0526,052
Deposits payableDeposits payable 1,336,8991,336,899 7,0007,000 1,343,899
Noncurrent liabilitiesNoncurrent liabilities
Due within one yearDue within one year
Long-term liabilitiesLong-term liabilities 1,222,9311,222,931 148,982148,982 1,371,913
Due in more than one yearDue in more than one year
Long-term liabilitiesLong-term liabilities 17,146,63117,146,631 495,771495,771 17,642,402
70
City of Orono, Minnesota
Statement of Activities
For the Year Ended December 31, 2023
Operating Capital
Charges for Grants and Grants and
Expenses Services Contributions Contributions
Governmental Activities
General government 1,983,264$ 897,294$ -$ -$
Public safety 7,894,893 2,965,900 1,058,792 -
Public works 2,047,315 1,417,579 642,943 28,000
Parks and recreation 562,310 75,295 - 22,659
Community development 154,566 - - -
Interest on long-term debt 399,542 - - -
Total Governmental Activities 13,041,890 5,356,068 1,701,735 50,659
Business-type Activities
Water 1,298,511 1,680,871 - -
Sewer 2,079,800 2,278,986 - 79,136
Storm water 486,937 765,631 - 5,251
Recycling 242,530 269,132 8,519 -
Cable television 68,069 68,368 - -
Golf course 492,173 441,621 - -
Total Business-type Activities 4,668,020 5,504,609 8,519 84,387
Total 17,709,910$ 10,860,677$ 1,710,254$ 135,046$
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
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.
36
242,530242,530 269,132269,132 8,5198,519
Cable televisionCable television 68,06968,069 68,36868,368 --
Golf course Golf course 492,173492,173 441,621441,621 --
Total Business-type ActivitiesTotal Business-type Activities 4,668,0204,668,020 5,504,6095,504,609 8,5198,519
17,709,91017,709,910$ $ 10,860,67710,860,677$ 1,710,2541,710,254$ $
General RevenuesGeneral Revenues
TaxesTaxes
Property taxes, levied for general purposesProperty taxes, levied for general purposes
71
Governmental Business-type
Activities Activities Total
(1,085,970)$ -$ (1,085,970)$
(3,870,201) - (3,870,201)
41,207 - 41,207
(464,356) - (464,356)
(154,566) - (154,566)
(399,542) - (399,542)
(5,933,428) - (5,933,428)
- 382,360 382,360
- 278,322 278,322
- 283,945 283,945
- 35,121 35,121
- 299 299
- (50,552) (50,552)
- 929,495 929,495
(5,933,428) 929,495 (5,003,933)
7,366,232 - 7,366,232
1,002,000 - 1,002,000
78,908 - 78,908
406 451,305 451,711
508,318 305,311 813,629
2,990,324 (2,990,324) -
11,946,188 (2,233,708) 9,712,480
6,012,760 (1,304,213) 4,708,547
35,051,345 26,728,300 61,779,645
41,064,105$ 25,424,087$ 66,488,192$
Changes in Net Position
Net (Expenses) Revenues and
The notes to the financial statements are an integral part of this statement.
37
35,121 35,12135,121
--299 299299
-(50,552)(50,552) (50,552)(50,552)
-929,495929,495 929,495929,495
(5,933,428)(5,933,428)929,495929,495 (5,003,933)(5,003,933)
7,366,2327,366,232 7,366,2327,366,232
72
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38 73
FUND FINANCIAL STATEMENTS
CITY OF ORONO, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2023
39
FOR THE YEAR ENDEDFOR THE YEAR ENDED
DECEMBER 31, DECEMBER 31, 2023
74
City of Orono, Minnesota
Balance Sheet
Governmental Funds
December 31, 2023
Municipal Pavement
State Aid Management
General Street Plan
Assets
Cash and temporary investments 4,108,896$ 163,447$ 507,380$
Receivables
Accrued interest 7 - 503
Taxes 74,890 - -
Accounts 77,651 - -
Special assessments - - -
Lease - - 1,280,518
Due from other governments 113,858 689,362 6,932
Due from other funds 1,504,286 - -
Prepaid items 93,611 - -
Total Assets 5,973,199$ 852,809$ 1,795,333$
Liabilities
Accounts and contracts payable 137,165$ -$ 27,536$
Accrued salaries payable 101,701 - -
Due to other governments 104,801 - 111,094
Due to other funds - 1,504,286 -
Deposits payable 1,336,899 - -
Total Liabilities 1,680,566 1,504,286 138,630
Deferred Inflows of Resources
Deferred lease resources - - 1,206,973
Unavailable revenues - delinquent taxes 74,890 - -
Unavailable revenues - special assessments - - -
Unavailable revenues - intergovernmental - 689,362 -
Total Deferred Inflows of Resources 74,890 689,362 1,206,973
Fund Balances
Nonspendable 93,611 - -
Restricted - - -
Committed - - -
Assigned - - 449,730
Unassigned 4,124,132 (1,340,839) -
Total Fund Balances 4,217,743 (1,340,839) 449,730
Total Liabilities, Deferred Inflows
of Resources and Fund Balances 5,973,199$ 852,809$ 1,795,333$
The notes to the financial statements are an integral part of this statement.
40
Accounts and contracts payableAccounts and contracts payable 137,165137,165$ --$ $ $
Accrued salaries payableAccrued salaries payable 101,701101,701 --
Due to other governmentsDue to other governments 104,801104,801 --
Due to other fundsDue to other funds - 1,504,2861,504,286
Deposits payableDeposits payable 1,336,8991,336,899 --
Total LiabilitiesTotal Liabilities 1,680,5661,680,566 1,504,2861,504,286
75
Project Other Total
Construction Governmental Governmental
Fund Funds Funds
7,137,787$ 4,618,593$ 16,536,103$
42,783 4,802 48,095
- - 74,890
- - 77,651
- 28,000 28,000
- - 1,280,518
2,601 47,358 860,111
- 601,467 2,105,753
- - 93,611
7,183,171$ 5,300,220$ 21,104,732$
1,666,271$ 171,172$ 2,002,144$
- - 101,701
408,543 753 625,191
- 601,467 2,105,753
- - 1,336,899
2,074,814 773,392 6,171,688
- - 1,206,973
- - 74,890
- 28,000 28,000
- - 689,362
- 28,000 1,999,225
- - 93,611
977,410 2,829,931 3,807,341
- 313,344 313,344
4,130,947 2,221,855 6,802,532
- (866,302) 1,916,991
5,108,357 4,498,828 12,933,819
7,183,171$ 5,300,220$ 21,104,732$
The notes to the financial statements are an integral part of this statement.
41
1,666,2711,666,271 171,172171,172$ $ 2,002,1442,002,144$
--- 101,701101,701
408,543408,543 753753 625,191625,191
-601,467601,467 2,105,7532,105,753
--- 1,336,8991,336,899
2,074,8142,074,814 773,392773,392 6,171,6886,171,688
76
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42 77
City of Orono, Minnesota
Reconciliation of the Balance Sheet
to the Statement of Net Position
Governmental Funds
December 31, 2023
Amounts reported for the governmental activities in the statement of net position are different because
Total Fund Balances - Governmental Funds 12,933,819$
Capital assets used in governmental activities are not financial resources and therefore
are not reported as assets in governmental funds.
Cost of capital assets 63,518,482
Less: accumulated depreciation (12,096,230)
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. 396,524
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 (691,861)
Bonds payable (17,039,900)
Plus premium on bonds issued (637,801)
Other postemployment benefits payable (1,016,678)
Net pension liability (5,110,716)
Some receivables are not available soon enough to pay for the current period's expenditures,
and therefore are unavailable in the funds.
Delinquent taxes 74,890
Special assessments 28,000
Intergovernmental 689,362
Governmental funds do not report long-term amounts related to pensions and OPEB.
Deferred outflows of pension resources 6,172,066
Deferred inflows of pension resources (5,979,032)
Governmental funds do not report a liability for accrued interest until due and payable. (176,820)
Total Net Position - Governmental Activities 41,064,105$
The notes to the financial statements are an integral part of this statement.
43
Compensated absences payableCompensated absences payable (691,861)(691,861)
Bonds payableBonds payable (17,039,900)(17,039,900)
Plus premium on bonds issuedPlus premium on bonds issued (637,801)
Other postemployment benefits payableOther postemployment benefits payable (1,016,678)
Net pension liabilityNet pension liability (5,110,716)
Some receivables are not available soon enough to pay for the current period's expenditures,Some receivables are not available soon enough to pay for the current period's expenditures,
and therefore are unavailable in the funds.and therefore are unavailable in the funds.
Delinquent taxesDelinquent taxes
78
City of Orono, Minnesota
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the Year Ended December 31, 2023
Municipal Pavement
State Aid Management
General Street Plan
Revenues
Taxes 5,613,956$ -$ 1,000,000$
Special assessments - - -
Licenses and permits 801,514 - -
Intergovernmental 686,742 158,642 88,172
Charges for services 3,872,716 - 243,137
Fines and forfeitures 57,761 - -
Investment earnings 182,787 7,722 1,161
Miscellaneous 105,346 - -
Total Revenues 11,320,822 166,364 1,332,470
Expenditures
Current
General government 1,700,101 - -
Public safety 7,082,379 - -
Public works 1,420,306 - -
Parks and recreation 444,116 - -
Community development - - -
Capital outlay
Public safety 179,339 -
Public works - 153 461,822
Parks and recreation - - -
Debt service
Principal - - -
Interest and other charges - - -
Total Expenditures 10,826,241 153 461,822
Excess (Deficiency) of Revenues
Over (Under) Expenditures 494,581 166,211 870,648
Other Financing Sources (Uses)
Transfers in 49,847 - 1,000,000
Transfers out (1,580,000) - (303,672)
Financed purchase issued - - -
Total Other Financing Sources (Uses) (1,530,153) - 696,328
Net Change in Fund Balances (1,035,572) 166,211 1,566,976
Fund Balances, January 1 5,253,315 (1,507,050) (1,117,246)
Fund Balances, December 31 4,217,743$ (1,340,839)$ 449,730$
The notes to the financial statements are an integral part of this statement.
44
General governmentGeneral government 1,700,1011,700,101
Public safetyPublic safety 7,082,3797,082,379 --
Public worksPublic works 1,420,3061,420,306 --
Parks and recreationParks and recreation 444,116444,116 --
Community developmentCommunity development -- --
Capital outlayCapital outlay
Public safetyPublic safety 179,339179,339 --
Public worksPublic works - 153153
Parks and recreationParks and recreation ---
79
Project Other Total
Construction Governmental Governmental
Fund Funds Funds
375,000$ 1,449,908$ 8,438,864$
- 22,698 22,698
- 62,446 863,960
- 372,456 1,306,012
- 28,525 4,144,378
- 102,312 160,073
118,804 197,110 507,584
- 71,543 176,889
493,804 2,306,998 15,620,458
- - 1,700,101
- 2,171 7,084,550
- - 1,420,306
- 23,076 467,192
- 154,566 154,566
- 708,195 887,534
14,237,654 734,541 15,434,170
- 31,432 31,432
- 1,095,000 1,095,000
- 450,581 450,581
14,237,654 3,199,562 28,725,432
(13,743,850) (892,564) (13,104,974)
3,000,000 1,871,376 5,921,223
- (976,702) (2,860,374)
- 484,900 484,900
3,000,000 1,379,574 3,545,749
(10,743,850) 487,010 (9,559,225)
15,852,207 4,011,818 22,493,044
5,108,357$ 4,498,828$ 12,933,819$
The notes to the financial statements are an integral part of this statement.
45
1,700,1011,700,101
-2,1712,171 7,084,5507,084,550
--- 1,420,3061,420,306
-23,07623,076 467,192467,192
-154,566154,566 154,566154,566
-708,195708,195 887,534887,534
14,237,65414,237,654 734,541734,541 15,434,17015,434,170
--31,43231,432 31,43231,432
80
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, 2023
Amounts reported for governmental activities in the statement of activities are different because
Total Net Change in Fund Balances - Governmental Funds (9,559,225)$
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 16,312,780
Depreciation expense (1,157,766)
Revenues in the statement of activities that do not provide current financial resources are not
reported as revenue in the funds.
Capital assets contributed to other funds (70,525)
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.(11,399)
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 1,095,000
Current year amortization of deferred charges 38,205
Finance purchase arrangement issued (484,900)
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. 12,834
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.(1,434)
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 28,000
Property taxes 8,276
Intergovernmental 396,129
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 (61,730)
Other postemployment benefits 61,511
Long-term pension activity is not reported in governmental funds.
Pension expense (603,725)
Pension revenue from State contributions 10,729
Change in Net Position - Governmental Activities 6,012,760$
The notes to the financial statements are an integral part of this statement.
46
the effect of premiums, discounts and similar items when debt is first issued, whereas these amounts the effect of premiums, discounts and similar items when debt is first issued, whereas these amounts
are amortized in the statement of activities.are amortized in the statement of activities.
Principal repaymentsPrincipal repayments 1,095,000
Current year amortization of deferred chargesCurrent year amortization of deferred charges
Finance purchase arrangement issuedFinance purchase arrangement issued (484,900)
Interest on long-term debt in the statement of activities differs from the amount reported in theInterest on long-term debt in the statement of activities differs from the amount reported in the
governmental fund because interest is recognized as an expenditure in the funds when it is due,governmental fund because interest is recognized as an expenditure in the funds when it is due,
and thus requires the use of current financial resources. In the statement of activities, however,and thus requires the use of current financial resources. In the statement of activities, however,
interest expense is recognized as the interest accrues, regardless of when it is due.interest expense is recognized as the interest accrues, regardless of when it is due.
81
City of Orono, Minnesota
Statement of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual
General Fund
For the Year Ended December 31, 2023
Actual Variance with
Original Final Amounts Final Budget
Revenues
Taxes 5,664,500$ 5,664,500$ 5,613,956$ (50,544)$
Licenses and permits 585,200 585,200 801,514 216,314
Intergovernmental 403,000 403,000 686,742 283,742
Charges for services 4,051,270 4,051,270 3,872,716 (178,554)
Fines and forfeitures 80,000 80,000 57,761 (22,239)
Investment earnings 160,900 160,900 182,787 21,887
Miscellaneous
Rents and refunds 5,400 5,400 5,400 -
Other 43,000 43,000 99,946 56,946
Total Revenues 10,993,270 10,993,270 11,320,822 327,552
Expenditures
Current
General government 1,623,750 1,623,750 1,700,101 (76,351)
Public safety 6,911,170 6,911,170 7,082,379 (171,209)
Public Works 1,032,600 1,032,600 1,420,306 (387,706)
Parks and recreation 784,750 784,750 444,116 340,634
Capital outlay
Public safety 221,000 221,000 179,339 41,661
Public Works 20,000 20,000 - 20,000
Total Expenditures 10,593,270 10,593,270 10,826,241 (232,971)
Excess of Revenues
Over Expenditures 400,000 400,000 494,581 94,581
Other Financing Sources (Uses)
Transfers in - - 49,847 49,847
Transfers out (400,000) (400,000) (1,580,000) (1,180,000)
Total Financing Sources (Uses) (400,000) (400,000) (1,530,153) (1,130,153)
Net Change in Fund Balances - - (1,035,572) (1,035,572)
Fund Balances, January 1 5,253,315 5,253,315 5,253,315 -
Fund Balances, December 31 5,253,315$ 5,253,315$ 4,217,743$ (1,035,572)$
Budgeted Amounts
The notes to the financial statements are an integral part of this statement.
47
General governmentGeneral government 1,623,7501,623,750 1,623,7501,623,750 1,700,1011,700,101
Public safetyPublic safety 6,911,1706,911,170 6,911,1706,911,170 7,082,3797,082,379 (171,209)(171,209)
Public WorksPublic Works 1,032,6001,032,600 1,032,6001,032,600 1,420,3061,420,306 (387,706)
Parks and recreationParks and recreation 784,750784,750 784,750784,750 444,116444,116
Capital outlayCapital outlay
Public safetyPublic safety 221,000221,000 221,000221,000 179,339179,339
Public WorksPublic Works 20,00020,000 20,00020,000 --
Total ExpendituresTotal Expenditures 10,593,27010,593,270 10,593,27010,593,270 10,826,24110,826,241 (232,971)
82
Governmental
Activities -
Internal
Water Sewer Storm Water Nonmajor Business-type Total Service Funds
Assets
Current Assets
Cash and temporary investments 267,184$ 2,327,068$ 1,562,423$ 117,461$ 4,274,136$ 523,033$
Receivables
Accrued interest - - - 458 458 1,427
Accounts 107,181 193,454 124,546 58,242 483,423 -
Special assessments 9,708 25,904 - - 35,612 -
Due from other governments - 9,730 - - 9,730 -
Prepaid items - 64,224 - 42 64,266 42,701
Total Current Assets 384,073 2,620,380 1,686,969 176,203 4,867,625 567,161
Noncurrent Assets
Capital assets
Land 62,195 24,654 6,368 - 93,217 -
Construction in progress 11,259 1,416,662 - - 1,427,921 -
Buildings and systems 1,670,843 32,968 - - 1,703,811 -
Distribution/collection system 7,843,795 20,581,583 2,716,733 205,474 31,347,585 -
Machinery and equipment 100,444 661,685 245,870 267,544 1,275,543 -
Total Capital Assets 9,688,536 22,717,552 2,968,971 473,018 35,848,077 -
Less accumulated depreciation (3,734,973) (9,428,142) (554,370) (225,344) (13,942,829) -
Net Capital Assets 5,953,563 13,289,410 2,414,601 247,674 21,905,248 -
Total Assets 6,337,636 15,909,790 4,101,570 423,877 26,772,873 567,161
Deferred Outflows of Resources
Deferred pension resources 49,489 49,880 19,062 19,526 137,957 -
Liabilities
Current Liabilities
Accounts and contracts payable 8,577 97,398 1,043 923 107,941 72,903
Accrued salaries payable 6,486 6,409 2,866 2,467 18,228 3,889
Due to other governments 10,549 8,767 - 34 19,350 486
Accrued interest payable 6,052 - - - 6,052 -
Deposits payable 7,000 - - - 7,000 -
Compensated absences payable - current portion 11,991 10,304 40,202 - 62,497 -
Bond premium - current portion 1,485 - - - 1,485 -
Bonds payable - current portion 85,000 - - - 85,000 -
Total Current Liabilities 137,140 122,878 44,111 3,424 307,553 77,278
Noncurrent Liabilities
Bond premium 6,676 - - - 6,676 -
Bonds payable 470,000 - - - 470,000 -
Compensated absences payable 3,664 3,148 12,283 - 19,095 -
Net pension liability 172,935 174,300 66,612 68,232 482,079 -
Other postemployment benefits payable 48,962 48,255 30,814 31,141 159,172 -
Total Noncurrent Liabilities 702,237 225,703 109,709 99,373 1,137,022 -
Total Liabilities 839,377 348,581 153,820 102,797 1,444,575 77,278
Deferred Inflows of Resources
Deferred pension resources 48,617 49,001 18,727 19,182 135,527 -
Net Position
Net investment in capital assets 5,391,887 13,289,410 2,414,601 247,674 21,343,572 -
Unrestricted 107,244 2,272,678 1,533,484 73,750 3,987,156 489,883
Total Net Position 5,499,131$ 15,562,088$ 3,948,085$ 321,424$ 25,330,728 489,883$
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 93,359
25,424,087$
Business-type Activities - Enterprise Funds
City of Orono, Minnesota
Statement of Net Position
Proprietary Funds
December 31, 2023
The notes to the financial statements are an integral part of this statement.
48
Net Capital AssetsNet Capital Assets 5,953,563 13,289,41013,289,410 2,414,6012,414,601 247,674247,674 21,905,24821,905,248
Total AssetsTotal Assets 6,337,6366,337,636 15,909,79015,909,790 4,101,5704,101,570 423,877 26,772,87326,772,873
Deferred Outflows of ResourcesDeferred Outflows of Resources
Deferred pension resourcesDeferred pension resources 49,48949,489 49,88049,880 19,06219,062 19,52619,526 137,957137,957
Current LiabilitiesCurrent Liabilities
Accounts and contracts payableAccounts and contracts payable 8,577 97,398 1,0431,043 923 107,941107,941
Accrued salaries payableAccrued salaries payable 6,4866,486 6,409 2,8662,866 2,467 18,22818,228
Due to other governmentsDue to other governments 10,54910,549 8,767 -- 34 19,35019,350
83
Governmental
Activities -
Internal
Water Sewer Storm Water Nonmajor Business-type Total Service Funds
Operating Revenues
Charges for services 1,660,476$ 2,276,657$ 765,622$ 604,329$ 5,307,084$ 709,161$
Other - - - 161,260 161,260 583,474
Total Operating Revenues 1,660,476 2,276,657 765,622 765,589 5,468,344 1,292,635
Operating Expenses
Personnel services 344,017 357,495 213,340 251,630 1,166,482 367,835
Supplies 41,206 17,243 5,030 55,084 118,563 30,970
Professional services 82,260 100,880 53,348 260,207 496,695 144,349
Other Services and Charges - - - 190,800 190,800 2,891
Utilities 117,695 40,959 - - 158,654 -
Repairs and maintenance 276,395 166,075 26,899 - 469,369 442,657
Depreciation 169,003 380,677 66,135 20,322 636,137 -
Administrative charges from the General fund 137,650 137,650 69,680 3,125 348,105 -
Insurance 33,401 19,220 4,920 - 57,541 359,578
Other 81,993 858,032 46,817 21,545 1,008,387 -
Total Operating Expenses 1,283,620 2,078,231 486,169 802,713 4,650,733 1,348,280
Operating Income (Loss) 376,856 198,426 279,453 (37,124) 817,611 (55,645)
Nonoperating Revenues (Expenses)
Investment earnings 69,586 121,675 110,113 3,937 305,311 50,115
Intergovernmental - 451,305 - 8,519 459,824 -
Miscellaneous revenues 20,395 2,329 9 13,532 36,265 -
Interest and amortization expense (13,191) - - - (13,191) -
Total Nonoperating
Revenues (Expenses) 76,790 575,309 110,122 25,988 788,209 50,115
Income (Loss) Before
Contributions and Transfers 453,646 773,735 389,575 (11,136) 1,605,820 (5,530)
Contributions and Transfers
Capital contributions from governmental funds - - - 70,525 70,525 -
Connection fees - 21,530 5,251 - 26,781 -
Intergovernmental - 57,606 - - 57,606 -
Transfers out (1,010,499) (1,046,750) (1,003,600) - (3,060,849) -
Total Transfers and Contributions (1,010,499) (967,614) (998,349) 70,525 (2,905,937) -
Change in Net Position (556,853) (193,879) (608,774) 59,389 (1,300,117) (5,530)
Net Position - January 1 6,055,984 15,755,967 4,556,859 262,035 26,630,845 495,413
Net Position, December 31 5,499,131$ 15,562,088$ 3,948,085$ 321,424$ 25,330,728$ 489,883$
Change in net position as shown above (1,300,117)$
(4,096)
Change in net position - business-type activities (1,304,213)$
Adjustment to reflect the consolidation of internal
service fund activities to the enterprise funds.
City of Orono, Minnesota
Statement of Revenues, Expenses and Changes in Net Position
Proprietary Funds
For the Year Ended December 31, 2023
Business-type Activities - Enterprise Funds
The notes to the financial statements are an integral part of this statement.
49
Investment earnings Investment earnings 69,58669,586 121,675121,675 110,113110,113 3,9373,937 305,311305,311
IntergovernmentalIntergovernmental - 451,305451,305 -- 8,519 459,824459,824
Miscellaneous revenuesMiscellaneous revenues 20,39520,395 2,3292,329 99 13,532 36,26536,265
Interest and amortization expenseInterest and amortization expense (13,191)(13,191) - -- - (13,191)(13,191)
Total NonoperatingTotal Nonoperating
Revenues (Expenses) Revenues (Expenses)76,79076,790 575,309575,309 110,122110,122 25,98825,988 788,209788,209
Income (Loss) BeforeIncome (Loss) Before
Contributions and TransfersContributions and Transfers 453,646453,646 773,735 389,575389,575 (11,136) 1,605,8201,605,820
Contributions and TransfersContributions and Transfers
84
Governmental
Activities -
Internal
Water Sewer Storm Nonmajor Business-type Total Service Funds
Cash Flows from Operating Activities
Receipts from customers and users 1,630,529$ 2,264,458$ 742,450$ 757,953$ 5,395,390$ 1,292,637$
Other operating receipts 20,395 2,329 9 13,532 36,265 -
Payments to suppliers (783,869) (1,327,558) (210,669) (547,877) (2,869,973) (958,247)
Payments to employees (341,147) (349,994) (166,635) (160,853) (1,018,629) (365,638)
Net Cash Provided (Used) by
Operating Activities 525,908 589,235 365,155 62,755 1,543,053 (31,248)
Cash Flows from Noncapital
Financing Activities
Intergovernmental - 451,305 - 8,519 459,824
Transfers to other funds (1,010,499) (1,046,750) (1,003,600) - (3,060,849) -
Net Cash Provided (Used) by .
Noncapital Financing Activities (1,010,499) (595,445) (1,003,600) 8,519 (2,601,025) -
Cash Flows from Capital and
Related Financing Activities
Connection fees received - 21,530 5,251 - 26,781 -
Special assessments received 27,601 56,226 - - 83,827 -
Acquisition of capital assets (859,360) (1,073,996) (289) (29,233) (1,962,878) -
Intergovernmental - 57,606 - - 57,606 -
Interest paid on debt (15,429) - - - (15,429) -
Principal paid on bonds (85,000) - - - (85,000) -
Net Cash Provided (Used) by Capital
and Related Financing Activities (932,188) (938,634) 4,962 (29,233) (1,895,093) -
Cash Flows from Investing Activities
Investment receipts 70,250 134,358 115,941 4,181 324,730 51,523
Net Increase (Decrease) in
Cash and Cash Equivalents (1,346,529) (810,486) (517,542) 46,222 (2,628,335) 20,275
Cash and Cash Equivalents, January 1 1,613,713 3,137,554 2,079,965 71,239 6,902,471 502,758
Cash and Cash Equivalents, December 31 267,184$ 2,327,068$ 1,562,423$ 117,461$ 4,274,136$ 523,033$
Reconciliation of Operating Income (Loss)
to Net Cash Provided (Used) by Operating Activities
Operating income (loss) 376,856$ 198,426$ 279,453$ (37,124)$ 817,611$ (55,645)$
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities
Depreciation 169,003 380,677 66,135 20,322 636,137 -
Other income related to operations 20,395 2,329 9 13,532 36,265 -
(Increase) decrease in assets/deferred
outflows of resources
Accounts receivable (29,947) (3,123) (23,172) (7,636) (63,878) 2
Due from other governments - (9,076) - - (9,076) -
Inventories - - - - - -
Prepaid items - (308) - (42) (350) (23,459)
Deferred pension resources 32,212 30,983 (752) (15,116) 47,327 -
Increase (decrease) in liabilities/deferred
inflows of resources
Accounts and contracts payable (14,909) 19,240 (3,975) (17,108) (16,752) 45,171
Accrued salaries payable 1,489 2,422 1,854 1,927 7,692 2,197
Due to other governments 1,640 (6,431) - 34 (4,757) 486
Compensated absences payable 4,967 5,013 25,425 - 35,405 -
Net pension liability (72,036) (67,452) 11,539 53,643 (74,306) -
Other postemployment benefits payable (12,379) (12,313) (10,088) 31,141 (3,639) -
Deferred pension resources 48,617 48,848 18,727 19,182 135,374 -
Net Cash Provided (Used) by
Operating Activities 525,908$ 589,235$ 365,155$ 62,755$ 1,543,053$ (31,248)$
Schedule of Noncash Capital and
Related Financing Activities
Capital assets acquired on account -$ 36,242$ -$ -$ 36,242$ -$
Amortization of bond premium 1,485 - - - 1,485 -
Capital assets contributed from governmental activities - - - 70,525 70,525 -
City of Orono, Minnesota
Statement of Cash Flows
Proprietary Funds
For the Year Ended December 31, 2023
Business-type Activities - Enterprise Funds
The notes to the financial statements are an integral part of this statement.
50
Net Cash Provided (Used) by CapitalNet Cash Provided (Used) by Capital
and Related Financing Activitiesand Related Financing Activities (932,188)(932,188) (938,634)(938,634) 4,9624,962 (29,233)(29,233) (1,895,093)(1,895,093)
Cash Flows from Investing ActivitiesCash Flows from Investing Activities
Investment receipts Investment receipts 70,25070,250 134,358134,358 115,941115,941 4,181 324,730324,730
Net Increase (Decrease) in Net Increase (Decrease) in
Cash and Cash EquivalentsCash and Cash Equivalents (1,346,529)(1,346,529) (810,486)(810,486) (517,542)(517,542) 46,222 (2,628,335)(2,628,335)
Cash and Cash Equivalents, January 1Cash and Cash Equivalents, January 1 1,613,7131,613,713 3,137,554 2,079,9652,079,965 71,239 6,902,4716,902,471
Cash and Cash Equivalents, December 31Cash and Cash Equivalents, December 31 267,184267,184$ $ 2,327,068$ 1,562,4231,562,423$ $ 117,461$ 4,274,1364,274,136$ $
85
City of Orono, Minnesota
Notes to the Financial Statements
December 31, 2023
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
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
organization or (2) the potential for the organization to provide specific benefits to, or impose specific financial burdens
on the primary government.
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
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.
51
Component UnitComponent Unit
The Orono Housing and Redevelopment Authority (Orono HRA) is a legally separate organization created in accordance 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 with Minnesota Statute § 469.003. Its purpose is to clear and redevelop blighted areas within the City and to provide
adequate housing for adequate housing for low--and moderateand moderate--incomeincome residents. The Orono HRA is fiscally dependent upon the City, and its residents. The Orono HRA is fiscally dependent upon the City, and its
blended component unit of the City, with its fundblended component unit of the City, with its funds reported as though they are funds of the City. The financial activity at s 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 this time is limited to debt payments within the Orono HRA debt service funds, namely the public facilities and project
revenue bonds.revenue bonds.
86
City of Orono, Minnesota
Notes to the Financial Statements
December 31, 2023
Note 1: Summary of Significant Accounting Policies (Continued)
C. Measurement Focus, Basis of Accounting and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources measurement focus and the
accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and
expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are
recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon
as all eligibility requirements imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources measurement focus and the
modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available.
Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to
pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within
60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under
accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences,
pensions, and claims and judgments, are recorded only when payment is due.
Property taxes, franchise taxes, licenses and interest associated with the current fiscal period are all considered to be
susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special
assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the
current period. All other revenue items are considered to be measurable and available only when cash is received by the
City.
Revenue resulting from exchange transactions, in which each party gives and receives essentially equal value, is recorded
on the accrual basis when the exchange takes place. On a modified accrual basis, revenue is recorded in the year in which
the resources are measurable and become available.
Non-exchange transactions, in which the City receives value without directly giving equal value in return, include property
taxes, grants, entitlement and donations. On an accrual basis, revenue from property taxes is recognized in the year for
which the tax is levied. Revenue from grants, entitlements and donations is recognized in the year in which all eligibility
requirements have been satisfied. Eligibility requirements include timing requirements, which specify the year when the
resources are required to be used or the year when use is first permitted, matching requirements, in which the City must
provide local resources to be used for a specified purpose, and expenditure requirements, in which the resources are
provided to the City on a reimbursement basis. On a modified accrual basis, revenue from non-exchange transactions
must also be available before it can be recognized.
Unearned revenue arises when assets are recognized before revenue recognition criteria have been satisfied. Grants and
entitlements received before eligibility requirements are met are also recorded as unearned revenue.
The preparation of financial statements in conformity with accounting principles generally accepted in the United States
of America requires management to make estimates and assumptions that affect certain reported amounts and
disclosures. Accordingly, actual results could differ from those estimates.
52
assessments rassessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the eceivable 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 current period. All other revenue items are considered to be measurable and available only when cash is received by the
Revenue resulting from exchange transactions, in which each party gives and receives essentially equal value, is recorded 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 on the accrual basis when the exchange takes place. On a modified accrual basis, revenue is recorded in the year in which
the resourcethe resources are measurable and become available. s are measurable and become available.
exchange transactions, in which the City receives value without directly giving equal value in return, include property 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 taxes, grants, entitlement and donations. On an accrual basis, revenue from property taxes is recognized in the year for
87
City of Orono, Minnesota
Notes to the Financial Statements
December 31, 2023
Note 1: Summary of Significant Accounting Policies (Continued)
The City reports the following major governmental funds:
The General fund is the govern It accounts for all financial resources of the general
government, except those required to be accounted for in another fund.
The Municipal State Aid Street fund is used to collect and spend resources on the various projects related to state aid
streets and highways.
The Pavement Management Plan fund collects and allocates resources related to the repair and maintenance of roads
within the city.
The Project Construction fund is used to collect and spend resources related to various construction projects within
the city.
The City reports the following major proprietary funds:
The Water fund and the Sewer fund account for activities related to the operation of a water distribution system and a
sanitary sewer distribution system, respectively.
The Sewer Fund is used to account for the provision of water services to the residents of the City who have sanitary
sewer service available.
The Storm Water Fund
system.
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
cles,
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
functions of the City. Elimination of these charges would distort the direct costs and program revenues reported for the
various functions concerned.
Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and
expenses generally result from providing services and producing and delivering goods in connection with a proprietary
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.
53
Sewer FundSewer Fund is used to account for the provision of water services to the residents of the City who have sanitary is used to account for the provision of water services to the residents of the City who have sanitary
sewer service available.sewer service available.
Storm Water FundStorm Water Fund
system.system.
Internal service fundsInternal service funds account for account for insurance, compensated absences, fleet management, and ITinsurance, compensated absences, fleet management, and IT services provided to services provided to
88
City of Orono, Minnesota
Notes to the Financial Statements
December 31, 2023
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.-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
4.
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.
7. Commercial paper issued by United States banks corporations or their Canadian subsidiaries, of highest quality
category by at least two nationally recognized rating agencies, and maturing in 270 days or less.
8. Repurchase or reverse repurchase agreements and securities lending agreements with financial institutions
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
branch of a foreign bank, a United States insurance company, or its Canadian subsidiary, whose similar debt
obligations were rated in one of the top two rating categories by a nationally recognized rating agency.
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted
accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1
inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level
3 inputs are significant unobservable inputs.
54
Shares Shares of investment companies registered under the Federal Investment Company Act of 1940 and received the of investment companies registered under the Federal Investment Company Act of 1940 and received the
highest credit rating, rated in one of the two highest credit rating, rated in one of the two highest rating categories by a statistical rating agency, and have a highest rating categories by a statistical rating agency, and have a
final maturity of thirteen months or less.final maturity of thirteen months or less.
General General
Obligation of a school district with an original maturity not exceeding 13 months and (i) rated in the highest Obligation of a school district with an original maturity not exceeding 13 months and (i) rated in the highest
89
City of Orono, Minnesota
Notes to the Financial Statements
December 31, 2023
Note 1: Summary of Significant Accounting Policies (Continued)
The City has the following recurring fair value measurements as of December 31, 2023:
Negotiable certificates of deposits, government and municipal bonds of $11,998,562 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 2023. 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.
Lease Receivable
revenue. The variable payments are recorded as an inflow of resources in the period the payment is received.
A deferred inflow of resources is recorded for the lease. The deferred inflow of resources is recorded at the initiation of
the lease in an amount equal to the initial recording of the lease receivable. The deferred inflow of resources is amortized
on a straight-line basis over the term of the lease.
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, 2023, the total delinquent
special assessment receivable balance is $89,201.
55
All miscellaneous accounts receivable are shown at net of an allowance for doubtful accounts. All miscellaneous accounts receivable are shown at net of an allowance for doubtful accounts. Accounts receivable Accounts receivable
include amounts billed for servicesinclude amounts billed for services, such as water, sewer, storm water and nuisance charges, , such as water, sewer, storm water and nuisance charges, provided before year end. provided before year end.
Unbilled utility enterprise fund receivables are also included for services provided in Unbilled utility enterprise fund receivables are also included for services provided in 2023. The City annu. The City annually certifies ally certifies
delinquent water, delinquent water, sewer,storm waterstorm water and nuisanceand nuisance accounts to the County for collection in the following year. Therefore, accounts to the County for collection in the following year. Therefore,
there has been no allowance for doubtful accounts established.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 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.are assessable to the property taxes and are collectible upon the sale of the assessed property.
90
City of Orono, Minnesota
Notes to the Financial Statements
December 31, 2023
Note 1: Summary of Significant Accounting Policies (Continued)
Interfund Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal
-current portion of interfund loans). All other outstanding balances between funds are reported
the governmental activities and business-type
activities are reported in the government-
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:
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
assets 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 pension
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.
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Capital assets, which include property, buildings, improvements, equipment, and infrastructure assets are reported in the Capital assets, which include property, buildings, improvements, equipment, and infrastructure assets are reported in the
applicable governmental or businessapplicable governmental or business--type activities columns in the governmenttype activities columns in the government--wide financial statements. Such assets wide financial statements. Such assets
are capitalized aare capitalized at historical cost, or estimated historical cost for assets where actual historical cost is not available. t 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 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 iniassets as those with an initial, individual cost of $5,000 or more for governmenttial, individual cost of $5,000 or more for government--wide and $5,000 for proprietary funds 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 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 assevalue of the asset or materially extend asset lives are not capitalized. As allowed by accounting principles generally t 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 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.governmental activities acquired prior to January 1, 2004.
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City of Orono, Minnesota
Notes to the Financial Statements
December 31, 2023
Note 1: Summary of Significant Accounting Policies (Continued)
Compensated Absences
Certain City employees earn personal time off, vacation, compensation time, and sick leave at various rates based on
longevity. These compensated absences are paid to an employee leaving in good standing, at their current rate of pay,
with the exception of sick leave in which one-half is paid to the departing employee. A liability for these amounts is
reported in governmental funds only if they have matured, for example, as a result of employee resignations and
retirements. For the most part, the General fund is typically used to liquidate governmental compensated absences
payable.
Postemployment Benefits other than Pensions
Under Minnesota statute 471.61, subdivision 2b, public employers must allow retirees and their dependents to continue
coverage indefinitely in an employer-sponsored health care plan, under the following conditions: 1) Retirees must be
receiving (or eligible to receive) an annuity from a Minnesota public pension plan, 2) Coverage must continue in a group
plan until age 65, and retirees must pay no more than the group premium, and 3) Retirees are able to add dependent
coverage during open enrollment period or qualifying life event prior to retirement. All premiums are funded on a pay-as-
you-go basis. The liability was determined, in accordance with GASB Statement No. 75, at January 1, 2021. 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
s 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
except that PERA For this purpose, plan contributions are recognized as of employer payroll
paid dates and benefit payments and refunds are recognized when due and payable in accordance with the benefit terms.
Investments are reported at fair value. For the most part, the General fund is typically used to liquidate governmental
pension liabilities.
57
ObliObligationsgationsObliObli
In the governmentIn the government-wide financial statements, and proprietary fund types in the fund financial statements, longwide financial statements, and proprietary fund types in the fund financial statements, long -term debt
and other longand other long--term obligations are reported as liabilities in the applicable governmental activities, businessobligations are reported as liabilities in the applicable governmental activities, business -type
activities, or proprietary fund tactivities, or proprietary fund type statement of net position. ype statement of net position. The recognition of bond premiums and discounts are The recognition of bond premiums and discounts are
amortized over the life of the bonds uamortized over the life of the bonds using the straightsing the straight-line method. line method. Bonds payable are reported net of the applicBonds payable are reported net of the applicable bond
premium or discount. premium or discount. Bond issuance costs are reported as an expense in the period incurred. Bond issuance costs are reported as an expense in the period incurred. In accordance with federal In accordance with federal
s follow the arbitrage requirements.s follow the arbitrage requirements.
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City of Orono, Minnesota
Notes to the Financial Statements
December 31, 2023
Note 1: Summary of Significant Accounting Policies (Continued)
The City participates in various pension plans, total pension expense for the year ended December 31, 2023 is as follows:
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 assets that applies to a future period(s) and so will not be recognized as an inflow of
resources (revenue) until that time. The City has four types of items, which arise only under a modified accrual basis of
accounting that qualifies as needing to be reported in this category. Accordingly, the item, unavailable revenue, is
reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from three
sources: delinquent property taxes, special assessments and intergovernmental revenue. These amounts are deferred
and recognized as an inflow of resources in the period that the amounts become available. The City also recognizes a
deferred lease resources, which is reported under both the modified accrual and full accrual basis
Furthermore, the City has one additional item which qualifies for reporting in this category on the statement of net
position. The item, deferred pension resources, is 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 -
first, then unrestricted resources as they are needed.
58
accounting that qualifies as needing to be reported in this category. Accordingly, the item, unavailable revenue, is accounting that qualifies as needing to be reported in this category. Accordingly, the item, unavailable revenue, is
reported only in the governmental funds balance sheet. The governmental funds reportreported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from tunavailable revenues from t
sources: delinquent property taxessources: delinquent property taxes, special assessments, special assessments and and intergovernintergovernmental revenuemental revenue. These amounts are deferred . These amounts are deferred
and recognized as an inflow of resources in the period that the amounts become available. The City also recognizes a and recognized as an inflow of resources in the period that the amounts become available. The City also recognizes a
deferred lease deferred lease resources, which is reported under both the modified accrual and full accrual basis, which is reported under both the modified accrual and full accrual basis
Furthermore, the City has Furthermore, the City has one one additional item which qualifadditional item which qualifiesies for reporting in this category on the statement of net for reporting in this category on the statement of net
position. Theposition. The item, deferred pension resources, item, deferred pension resources, isis reported only in thereported only in the statement of net position and results from actuarial statement of net position and results from actuarial
calculations involving net differences between projected and actualcalculations involving net differences between projected and actual earnings on plan investments and changes in earnings on plan investments and changes in
93
City of Orono, Minnesota
Notes to the Financial Statements
December 31, 2023
Note 1: Summary of Significant Accounting Policies (Continued)
Fund Balance
In the fund financial statements, fund balance is divided into five classifications based primarily on the extent to which the
City is bound to observe constraints imposed upon the use of resources reported in the governmental funds. These
classifications are defined as follows:
Nonspendable - Amounts that cannot be spent because they are not in spendable form, such as prepaid items.
Restricted - Amounts related to externally imposed constraints established by creditors, grantors or contributors; or
constraints imposed by state statutory provisions.
Committed - Amounts constrained for specific purposes that are internally imposed by formal action (resolution) of
-making authority. Committed amounts cannot be used
for any other purpose unless the City Council modifies or rescinds the commitment by resolution.
Assigned -
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
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 budget.
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.
59
UnassignedUnassigned -These are residual amounts in the General fund not reported in any other classification. The General These are residual amounts in the General fund not reported in any other classification. The General
fund is the only fund that can report a positive unassigned fund balance. Other funds would report a negative fund is the only fund that can report a positive unassigned fund balance. Other funds would report a negative
unassigned fund balance should the total ounassigned fund balance should the total of nonspendable, restricted and committed fund balances exceed the total f nonspendable, restricted and committed fund balances exceed the total
net resources of that fund.net resources of that fund.
The City considers restricted amounts to be spent first when both restricted and unrestricted fund balance is available. The City considers restricted amounts to be spent first when both restricted and unrestricted fund balance is available.
Additionally, the City would first use committed, then assigned, and lastly unassigned amounts of unrestricted fund Additionally, the City would first use committed, then assigned, and lastly unassigned amounts of unrestricted fund
balance when expenditures are made.balance when expenditures are made.
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City of Orono, Minnesota
Notes to the Financial Statements
December 31, 2023
Note 2: Stewardship, Compliance and Accountability (Continued)
B. Excess of Expenditures Over Appropriations
For the year ended December 31, 2023, expenditures exceeded appropriations in the following fund:
Excess of
Expenditures
Over
Budget Actual Appropriations
Major
General Fund 10,593,270$ 10,826,241$ 232,971$
Fund
These excess expenditures were funded by excess fund balance and greater than anticipated revenues.
C. Deficit Fund Equity
The following fund had a fund equity deficit at December 31, 2023:
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
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.
60 95
City of Orono, Minnesota
Notes to the Financial Statements
December 31, 2023
Note 3: Detailed Notes on All Funds (Continued)
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;
national bond rating service, or revenue obligation securities of any state or local government with taxing powers
tter 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
Time deposits that are fully insured by any federal agency.
Minnesota statutes require that all collateral shall be placed in safekeeping in a restricted account at a Federal Reserve
Bank, or in an account at a trust department of a commercial bank or other financial institution that is not owned or
controlled by the financial institution furnishing the collateral. The selection should be approved by the government entity.
$795,468 and the bank balance was $867,872. 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.
61
Time deposits that are fully insured by any federal agency.Time deposits that are fully insured by any federal agency.
Minnesota statutes require that all collateral shall be placed in safekeeping in a restricted account at a Federal Reserve 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 Bank, or in an account at a trust department of a commercial bank or other financial institution that is not owned or
controlled by tcontrolled by the financial institution furnishing the collateral. The selection should be approved by the government entity. he financial institution furnishing the collateral. The selection should be approved by the government entity.
$$795795,4,46868 and the bank balance was and the bank balance was $867,872. . TThe bank he bank
was covered by federal depository insurancewas covered by federal depository insurance .
96
City of Orono, Minnesota
Notes to the Financial Statements
December 31, 2023
Note 3: Detailed Notes on All Funds (Continued)
investment balances were as follows:
(1) Ratings are provided by 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.
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. 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
page 56
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.
Reverse repurchase agreements
Mortgage-backed securities, as defined in Minnesota Statute § 118A.04, Subd. 6
Future contracts
Options
Guaranteed investment contracts
62
Interest rate risk in disclosed using the segmented time distribution method.Interest rate risk in disclosed using the segmented time distribution method.
Indicates not applicable or available.Indicates not applicable or available.
The investments of the City are The investments of the City are subject to the following risks:subject to the following risks:
Interest Rate RiskInterest Rate Risk --Interest Rate RiskInterest Rate Risk isis the risk that changes in interest rates will adversely affect ththe risk that changes in interest rates will adversely affect the fair value of
an investment. an investment. duration of duration of
investments to a maturity of eight years, and twenty percent (20 percent) of the portfolio to a specific maturity.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 The City was not exposed to interest rate risks due to the fact that their investments are not exposed to highly
97
City of Orono, Minnesota
Notes to the Financial Statements
December 31, 2023
Note 3: Detailed Notes on All Funds (Continued)
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.
to 35% of a specific type. As of December 31, 2023, the following issuer exceeded 5 percent of the Ci
investments: MN Municipal Money Markets (4M) (40 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.
and must have a minimum capital and surplus of $10,000,000 and a net worth to asset ratio minimum of 5
percent As of
December 31, 2023, 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, 2023, 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
investments with a specific dealer to 30 percent of the investment portfolio.
A reconciliation of cash and temporary investments as shown on the statement of net position for the City follows:
63
control of who holds the securities. City investment policies require that security/broker/dealers be restricted to control of who holds the securities. City investment policies require that security/broker/dealers be restricted to
those regulated by the Securities and Exchthose regulated by the Securities and Exchange Commission, have a minimum capital of $40,000,000 and may ange Commission, have a minimum capital of $40,000,000 and may
investments wiinvestments with a specific dealer to 30th a specific dealer to 30 percentpercent of the investment portfolioof the investment portfolio.
A reconciliation of cash and temporary investments as shown on the statement of net position for the City A reconciliation of cash and temporary investments as shown on the statement of net position for the City follows:
98
City of Orono, Minnesota
Notes to the Financial Statements
December 31, 2023
Note 3: Detailed Notes on All Funds (Continued)
B. Capital Assets
Capital asset activity for the year ended December 31, 2023 was as follows:
Depreciation expense was charged to functions of the governmental activities as follows:
Governmental Activities
General Government 216,669$
Public Safety 283,529
Public Works 539,171
Culture and Recreation 118,397
Total Depreciation Expense - Governmental Activities 1,157,766$
64 99
City of Orono, Minnesota
Notes to the Financial Statements
December 31, 2023
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 169,003$
Sewer 380,677
Storm water 66,135
Cable 16,395
Golf course 3,927
Total Depreciation Expense - Business-type Activities 636,137$
65 100
City of Orono, Minnesota
Notes to the Financial Statements
December 31, 2023
Note 3: Detailed Notes on All Funds (Continued)
C. Construction Commitments
The City has active construction projects as of December 31, 2023. The projects include street and road improvements,
the public works facility and the watermain replacement project
as follows:
D. Lease Receivable
As of December 31, 2023, the City had the following lease receivables:
Under the Verizon Antenna lease, Verizon pays the City $52,141 per year in exchange for placing a cell phone antenna on a
City owned building. The city is paid these amounts each January, with a 3% increase each year until 2036. Under the T
Mobile Antenna lease agreement, T Mobile pays the City $53,569 per year in exchange for placing a cell phone antenna on
a City owned building. The city is paid these amounts each June, with a 5% increase each year until 2029.
E. Interfund Receivables, Payables and Transfers
The composition of interfund balances at December 31, 2023 is as follows:
Purpose Amount
General Fund Municipal State Aid Street To provide cash flows 1,504,286$
Senior Housing TIF HRA General Fund Loan for Land Purchase 601,467
Total 2,105,753$
Payable FundReceivable Fund
66 101
City of Orono, Minnesota
Notes to the Financial Statements
December 31, 2023
Note 3: Detailed Notes on All Funds (Continued)
The City made transfers during the fiscal year 2023 as shown and described below:
The City annually budgets transfers for specific purposes. Annual transfers include transfers made to cover funds annual
operations, transfers for debt service payments, transfers made as part of capital improvements plans and other transfers
made for various reasons.
F. 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.
67
operations, transfers for debt service payments, transfers made as part of capital improvements plans and other transfers operations, transfers for debt service payments, transfers made as part of capital improvements plans and other transfers
made for varimade for various reasons.ous reasons.
term term Debt
ObligationObligation ImprovementImprovement (GG..OO.) Bonds.) Bonds
The bonds were issued to finance variousThe bonds were issued to finance various improvements and will be repaid from taxesimprovements and will be repaid from taxes, special assessments,assessments,and pledged
102
City of Orono, Minnesota
Notes to the Financial Statements
December 31, 2023
Note 3: Detailed Notes on All Funds (Continued)
Annual debt service requirements to maturity for G.O. improvement bonds are as follows:
Year Ending
December 31, Principal Interest Total
2024 595,000$ 407,144$ 1,002,144$
2025 615,000 387,275 1,002,275
2026 635,000 366,519 1,001,519
2027 655,000 344,557 999,557
2028 680,000 321,538 1,001,538
2029-2033 2,595,000 1,300,245 3,895,245
2034-2038 2,625,000 996,220 3,621,220
2039-2043 2,885,000 723,620 3,608,620
2044-2048 3,190,000 422,308 3,612,308
2049-2051 2,080,000 88,924 2,168,924
Total 16,555,000$ 5,358,350$ 21,913,350$
Governmental Activities
Financed Purchase Agreement
This agreement was issued to finance the purchase of a fire truck in 2023.
Authorized Issue Maturity Balance at
and Issued Date Date Year End
Governmental Activites
Fire Truck Financed Purchase Agreement 484,900$ 5.00 % 12/01/23 12/01/29 484,900$
Interest
Description Rate
68 103
City of Orono, Minnesota
Notes to the Financial Statements
December 31, 2023
Note 3: Detailed Notes on All Funds (Continued)
Annual debt service requirements to maturity for the financed purchase agreements is as follows:
Changes in Long-term Liabilities
Long-term liability activity for the year ended December 31, 2023 was as follows:
69 104
City of Orono, Minnesota
Notes to the Financial Statements
December 31, 2023
Note 3: Detailed Notes on All Funds (Continued)
G. Components of Fund Balance
Fund equity balances are classified below to reflect the limitations and restrictions of the respective funds.
70 105
City of Orono, Minnesota
Notes to the Financial Statements
December 31, 2023
Note 4:Defined Benefit Pension Plans - Statewide
A. Plan Description
General Employees Retirement Plan
Public Employees Police and Fire Plan
B. Benefits Provided
General Employee Plan Benefits
The City participates in the following cost-sharing multiple-employer defined benefit pension plans administered by the
are tax qualified plans under Section 401(a) of the Internal Revenue Code.
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.
The Police and Fire Plan, originally established for police officers and firefighters not covered by a local relief
association, now covers all police officers and firefighters hired since 1980. Effective July 1, 1999, the Police and Fire
Plan also covers police officers and firefighters belonging to a local relief association that elected to merge with and
transfer assets and administration to PERA.
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.
Benefit increases are provided to benefit recipients each January. The postretirement increase is equal to 50 percent of
the cost-of-living adjustment (COLA) announced by the SSA, with a minimum increase of at least 1 percent and a
maximum of 1.5 percent. Recipients that have been receiving the annuity or benefit for at least a full year as of the June
30 before the effective date of the increase will receive the full increase. Recipients receiving the annuity or benefit for at
least one month but less than a full year as of the June 30 before the effective date of the increase will receive a
reduced prorated increase. In 2023, legislation repealed the statute delaying increases for members retiring before full
retirement age.
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.
71
B. Benefits ProvidedB. Benefits Provided
General Employee Plan BenefitsGeneral Employee Plan Benefits
PERA provides retirement, disability and death benefits. Benefit provisions are established by state statute and can only 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 be modified by the state Legislature. Vested, terminated employees who are entitled to benefits but are not receiving
them yet are bound by the provisions in effect at the time they last terminated their public service.them yet are bound by the provisions in effect at the time they last terminated their public service.
106
City of Orono, Minnesota
Notes to the Financial Statements
December 31, 2023
Note 4:Defined Benefit Pension Plans - Statewide (Continued)
Police and Fire Plan Benefits
C. Contributions
General Employees Fund Contributions
Police and Fire Fund Contributions
Benefits for Police and Fire Plan members first hired after June 30, 2010, but before July 1, 2014, vest on a prorated
basis from 50 percent after five years up to 100 percent after ten years of credited service. Benefits for Police and Fire
Plan members first hired after June 30, 2014 vest on a prorated basis from 50 percent after ten years up to 100 percent
after twenty years of credited service. The annuity accrual rate is 3 percent of average salary for each year of service. For
Police and Fire Plan members who were first hired prior to July 1, 1989, a full annuity is available when age plus years of
service equal at least 90.
Benefit increases are provided to benefit recipients each January. The postretirement increase is fixed at 1 percent.
Recipients that have been receiving the annuity or benefit for at least 36 months as of the June 30 before the effective
date of the increase will receive the full increase. Recipients receiving the annuity or benefit for at least 25 months but
less than 36 months as of the June 30 before the effective date of the increase will receive a reduced prorated increase.
Minnesota statutes, chapter 353 sets the rates for employer and employee contributions. Contribution rates can only be
modified by the state Legislature.
Coordinated Plan members were required to contribute 6.50 percent of their annual covered salary in fiscal year 2023
General Employees Fund for the years ending December 31, 2023, 2022 and 2021 were $203,588, $178,034 and
statute.
Police and Fire Plan members were required to contribute 11.80 percent of their annual covered salary in fiscal year
the Police and Fire Fund for the years ending December 31, 2023, 2022 and 2021 were $546,390, $460,205 and
statute.
72
General Employees Fund ContributionsGeneral Employees Fund Contributions
Minnesota statutes, chapter 353 sets the rates for employer and employee contributions. Contribution rates can only be Minnesota statutes, chapter 353 sets the rates for employer and employee contributions. Contribution rates can only be
modified by the state Legislature. modified by the state Legislature.
Coordinated Plan members were required to contribute 6.50 percent of their annual covered salary in fiscal year 2023 Coordinated Plan members were required to contribute 6.50 percent of their annual covered salary in fiscal year 2023
General Employees Fund for the years ending December 31, 2023, 2022 and 2021 were $203,588, $178,034 and General Employees Fund for the years ending December 31, 2023, 2022 and 2021 were $203,588, $178,034 and
107
City of Orono, Minnesota
Notes to the Financial Statements
December 31, 2023
Note 4:Defined Benefit Pension Plans - Statewide (Continued)
D. Pension Costs
General Employees Fund Pension Costs
City Proportionate Share of the Net Pension Liability 1,800,588$
State of Minnesota's Proportionate Share of the Net Pension
Liability Associated with the City 49,654
Total 1,850,242$
Deferred Deferred
Outflows Inflows
of Resources of Resources
Differences Between Expected and Actual Economic Experience 58,294$ 10,247$
Changes in Actuarial Assumptions 242,132 493,526
Net Difference Between Projected and Actual Investment Earnings - 2,425
Changes in Proportion 114,742 -
Contributions Paid to PERA Subsequent to the Measurement Date 100,110 -
Total 515,278$ 506,198$
For the year ended December 31, 2023, the City recognized pension expense of $373,657 for its proportionate share of
Fund.
resources and deferred inflows of resources related to pensions from the following sources:
At December 31, 2023, the City reported a liability of $1,800,588 for its proportionate share of the General Employees
pension liability associated with the City totaled $49,654. The net pension liability was measured as of June 30, 2023,
and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of
PERA during the measurement period for employer payroll paid dates from July 1, 2022 through June 30, 2023 relative
was 0.0322 percent at the end of the measurement period and 0.0303 percent for the beginning of the period.
73
State of Minnesota's Proportionate Share of the Net PensionState of Minnesota's Proportionate Share of the Net Pension
Liability Associated with the CityLiability Associated with the City 49,65449,654
1,850,242$ $
For the year ended December 31, 2023, the City recognized pension expense of $373,657 for its proportionate share of For the year ended December 31, 2023, the City recognized pension expense of $373,657 for its proportionate share of
108
City of Orono, Minnesota
Notes to the Financial Statements
December 31, 2023
Note 4:Defined Benefit Pension Plans - Statewide (Continued)
109,724$
(190,125)
28,431
(39,060)
Police and Fire Fund Pension Costs
City Proportionate Share of the Net Pension Liability 3,792,207$
State of Minnesota's Proportionate Share of the Net Pension
Liability Associated with the 152,722
Total 3,944,929$
The State of Minnesota is included as a non-employer contributing entity in the Police and Fire Retirement Plan Schedule
of Employer Allocations and Schedule of Pension Amounts by Employer, Current Reporting Period Only (pension
allocation schedules) for the $9 million in direct state aid. Police and Fire Plan employers need to recognize their
situation accounting and financial reporting requirements. For the year ended December 31, 2023, the City recognized
City recognized an additional $9,198 as negative pension expense (grant revenue) for its proportionate share of the
2027
net pension liability. The net pension liability was measured as of June 30, 2023, and the total pension liability used to
employer payroll paid dates from July 1, 2022 through June 30, 2023, relative to the total employer contributions
measurement period and 0.2234 percent for the beginning of the period.
The State of Minnesota is not included as a non-employer contributing entity in the Police and Fire Pension Plan pension
allocation schedules for the $9 million in supplemental state aid. The City recognized $19,764 for the year ended
December 31, 2023 as revenue and an offsetting reduction of net pension liability for its proportionate share of the State
subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended
December 31, 2024. Other amounts reported as deferred outflows and inflows of resources related to pensions will be
recognized in pension expense as follows:
2024
2025
2026
The State of Minnesota contributed $18 million to the Police and Fire Fund in the plan fiscal year ended June 30, 2023.
The contribution consisted of $9 million in direct state aid that does meet the definition of a special funding situation
and $9 million in supplemental state aid that does not meet the definition of a special funding situation. The $9 million
direct state was paid on October 1, 2022. Thereafter, by October 1 of each year, the state will pay $9 million to the Police
and Fire Fund until full funding is reached or July 1, 2048, whichever is earlier. The $9 million in supplemental state aid
will continue until the fund is 90 percent funded, or until the State Patrol Plan (administered by the Minnesota State
Retirement System) is 90 percent funded, whichever occurs later. The State of Minnesota's proportionate share of the
net pension liability associated with the City totaled $152,722.
74
measurement period and 0.2234 percent for the beginning of the period.measurement period and 0.2234 percent for the beginning of the period.
The State of Minnesota contributed $18 million to the Police and Fire Fund in the plan fiscal year ended June 30, 2023. The State of Minnesota contributed $18 million to the Police and Fire Fund in the plan fiscal year ended June 30, 2023.
The contribution consisted of $9 million in direct state aid that does meet the definition of a special funding situation The contribution consisted of $9 million in direct state aid that does meet the definition of a special funding situation
and $9 million in supplemental state aid that does not meet the definition of a special funding situation. The $9 million and $9 million in supplemental state aid that does not meet the definition of a special funding situation. The $9 million
direct state was paid on October 1, 2022. Thereafter, by October 1 of each year, the state will pay $9 million to the Police direct state was paid on October 1, 2022. Thereafter, by October 1 of each year, the state will pay $9 million to the Police
and Fire Fund until full funding is reached or July 1, 2048, whichever is earlier. The $9 million in supplemental state aid and Fire Fund until full funding is reached or July 1, 2048, whichever is earlier. The $9 million in supplemental state aid
will continue until the fund is 90 percent funded, or until the State Patrol Plan (administered by the Minnesota State will continue until the fund is 90 percent funded, or until the State Patrol Plan (administered by the Minnesota State
Retirement System) is 90 percent funded, whichever occurs later. The State of Minnesota's proportionate share of the Retirement System) is 90 percent funded, whichever occurs later. The State of Minnesota's proportionate share of the
109
City of Orono, Minnesota
Notes to the Financial Statements
December 31, 2023
Note 4:Defined Benefit Pension Plans - Statewide (Continued)
Deferred Deferred
Outflows Inflows
of Resources of Resources
Differences Between Expected and Actual Economic Experience 1,046,427$ -$
Changes in Actuarial Assumptions 4,409,989 5,331,900
Net Difference Between Projected and Actual Investment Earnings - 102,474
Changes in Proportion 62,434 173,987
Contributions Paid to PERA Subsequent to the Measurement Date 275,895 -
Total 5,794,745$ 5,608,361$
174,523$
27,914
916,070
(267,149)
(940,869)
E. Long-term Expected Return on Investment
Domestic Equity 33.5 %5.10 %
International Equity 16.5 5.30
Fixed Income 25.0 0.75
Private Markets 25.0 5.90
Total 100.0 %
Asset Class Allocation Rate of Return
resources and deferred inflows of resources from the following sources:
subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended
December 31, 2024. Other amounts reported as deferred outflows and inflows of resources related to pensions will be
recognized in pension expense as follows:
2024
2025
2026
2027
2028
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:
Long-term
Target Expected Real
75
174,523$ $
27,914
916,070
(267,149)
(940,869)
E. Long-term Expected Return on InvestmentE. Long-term Expected Return on Investment
recognized in pension expense as follows:recognized in pension expense as follows:
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City of Orono, Minnesota
Notes to the Financial Statements
December 31, 2023
Note 4:Defined Benefit Pension Plans - Statewide (Continued)
F. Actuarial Assumptions
The following changes in actuarial assumptions and plan provisions occurred in 2023:
General Employees Fund
Changes in Actuarial Assumptions
- The investment return assumption and single discount rate were changed from 6.5 percent to 7.0 percent.
Changes in Plan Provisions
- The benefit increase delay for early retirements on or after January 1, 2024, was eliminated.
Police and Fire Fund
Changes in Actuarial Assumptions
- The investment return assumption was changed from 6.5 percent to 7.0 percent.
- The single discount rate changed from 5.4 percent to 7.0 percent.
The total pension liability in the June 30, 2023, actuarial valuation was determined using an individual entry-age normal
actuarial cost method. The long-term rate of return on pension plan investments used in the determination of the total
liability is 7.0 percent. This assumption is based on a review of inflation and investments return assumptions from a
number of national investment consulting firms. The review provided a range of return investment return rates deemed
to be reasonable by the actuary. An investment return of 7.0 percent was deemed to be within that range of
reasonableness for financial reporting purposes.
Inflation is assumed to be 2.25 percent for the General Employees Plan and 2.25 percent for the Police and Fire Plan.
Benefit increases after retirement are assumed to be 1.25 percent for the General Employees Plan and 1.00 percent for
the the Police and Fire Plan.
Salary growth assumptions in the General Employees Plan range in annual increments from 10.25 percent after one year
of service to 3.0 percent after 27 years of service. In the Police and Fire Plan, salary growth assumptions range from
11.75 percent after one year of service to 3.0 percent after 24 years of service.
Mortality rates for the General Employees Plan are based on the Pub-2010 General Employee Mortality Table. Mortality
rates for the Police and Fire Plan is based on the Pub-2010 Public Safety Employee Mortality tables. The tables are
Actuarial assumptions for the General Employees Plan are reviewed every four years. The most recent four-year
experience study for the General Employees Plan was completed in 2022. The assumption changes were adopted by the
Board and became effective with the July 1, 2023 actuarial valuation. The most recent four-year experience study for the
Police and Fire Plan was adopted by the Board and became effective with the July 1, 2021 actuarial valuation.
- The vesting period of those hired after June 30, 2010, was changed from five years of allowable service to three
years of allowable service.
- A one-time, non-compounding benefit increase of 2.5 percent minus the actual 2024 adjustment will be payable in a
lump sum for calendar year 2024 by March 31, 2024.
- An additional one-time direct state aid contribution of $170.1 million will be contributed to the Plan on
October 1, 2023.
76
The following changes in actuarial assumptions and plan provisions occurred in 2023: The following changes in actuarial assumptions and plan provisions occurred in 2023:
rates for the Police and Fire Plan is based on the Pub-2010 Public Safety Employee Mortality tables. The tables are rates for the Police and Fire Plan is based on the Pub-2010 Public Safety Employee Mortality tables. The tables are
Actuarial assumptions for the General Employees Plan are reviewed every four years. The most recent four-year Actuarial assumptions for the General Employees Plan are reviewed every four years. The most recent four-year
experience study for the General Employees Plan was completed in 2022. The assumption changes were adopted by the experience study for the General Employees Plan was completed in 2022. The assumption changes were adopted by the
Board and became effective with the July 1, 2023 actuarial valuation. The most recent four-year experience study for the Board and became effective with the July 1, 2023 actuarial valuation. The most recent four-year experience study for the
Police and Fire Plan was adopted by the Board and became effective with the July 1, 2021 actuarial valuation.Police and Fire Plan was adopted by the Board and became effective with the July 1, 2021 actuarial valuation.
111
City of Orono, Minnesota
Notes to the Financial Statements
December 31, 2023
Note 4:Defined Benefit Pension Plans - Statewide (Continued)
Changes in Plan Provisions
- The total and permanent duty disability benefit was increased, effective July 1, 2023.
G. Discount Rate
H. Pension Liability Sensitivity
1 Percent 1 Percent
Decrease (6.0%)Current (7.0%)Increase (8.0%)
General Employees Fund 3,185,385$ 1,800,588$ 661,540$
Police and Fire Fund 7,524,190 3,792,207 724,017
I. Pension Plan Fiduciary Net Position
pension liability would be if it were calculated using a discount rate one percentage point lower or one percentage point
higher than the current discount rate:
report that includes financial statements and required supplementary information. That report may be obtained on the
Internet at www.mnpera.org.
The discount rate used to measure the total pension liability in 2023 was 7.0 percent. The projection of cash flows used
to determine the discount rate assumed that contributions from plan members and employers will be made at rates set
in Minnesota statutes. Based on these assumptions, the fiduciary net position of the General Employees and Police and
Fire Funds 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.
- Psychological treatment is required effective July 1, 2023 prior to approval for a duty disability benefit for a
- The vesting requirement for new hires after June 30, 2014 was changed from a graded 20-year vesting schedule to
a graded 10-year vesting schedule, with 50 percent vesting after five years increasing incrementally to 100 percent
after 10 years.
- A one-time, non-compounding benefit increase of 3.0 percent will be payable in a lump sum for calendar year 2024
by March 31, 2024.
- An additional one-time direct state aid contribution of $19.4 million will be contributed to the Plan on
October 1, 2023.
77
H. Pension Liability SensitivityH. Pension Liability Sensitivity
in Minnesota statutes. Based on these assumptions, the fiduciary net position of the General Employees and Police and in Minnesota statutes. Based on these assumptions, the fiduciary net position of the General Employees and Police and
Fire Funds were projected to be available to make all projected future benefit payments of current plan members. Fire Funds 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 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.benefit payments to determine the total pension liability.
112
City of Orono, Minnesota
Notes to the Financial Statements
December 31, 2023
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.
medical coverage, and to obtain requests for proposals in order to provide the most favorable benefits and premiums for
City employees and retirees. The City does not issue a publicly available report.
Inactive Plan Members or Beneficiaries Currently Receiving Benefit Payments 3
Active Plan Members 52
Total Plan Members 55
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, 2023, the
.5 percent of covered-employee payroll. For fiscal year 2023, the City contributed $0
to the plan. As of January 1, 2023, there were three
C. Actuarial Methods and Assumptions
$1,175,850 was measured as of January 1, 2023, and the total OPEB liability used to
calculate the total OPEB liability was determined by an actuarial valuation as of January 1, 2023. Roll forward procedures
were used to roll forward the total OPEB liability to the measurement date.
The total OPEB liability in the January 1, 2023 actuarial valuation was determined using the following actuarial
assumptions, applied to all periods included in the measurement, unless otherwise specified:
Discount Rate 4.05%
Payroll Growth Rate N/A
20-Year Municipal Bond Yield 4.05%
Inflation Rate 2.50%
Medical Trend Rate 8% degrading to 4.14% by 2027
The discount rate used to measure the total OPEB liability was 4.05 percent as of January 1, 2023. Mortality rates were
based on the recently published PERA actuarial valuations.
The actuarial assumptions used in the January 1, 2023 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.
78
contributions are based on projected paycontributions are based on projected pay asas youyou go financing requirements. go financing requirements. For the year ended December 31, For the year ended December 31, 20232023
.5 .5 percent of coveredpercent of covered-employee payroll. employee payroll. For fiscal year For fiscal year 20232023, the City contributed, the City contributed
o the plan. As of o the plan. As of January 1, January 1, 2023, there were, there were threethree
Actuarial Methods and AssumptionsActuarial Methods and Assumptions
$1,$1,175,850175,850 was measured as of was measured as of JanuaryJanuary 1, 20232023, and the total OPEB liability used to , and the total OPEB liability used to
calculate the total OPEB liability was determined by an actuarial valuation as of January 1, calculate the total OPEB liability was determined by an actuarial valuation as of January 1, 2023. Roll forward procedures . Roll forward procedures
were used to roll forward the total OPEB liability to the measurement date.were used to roll forward the total OPEB liability to the measurement date.
113
City of Orono, Minnesota
Notes to the Financial Statements
December 31, 2023
Note 5: Postemployment Benefits Other Than Pensions (Continued)
D. Changes in the Total OPEB Liability
Since the prior measurement date, the following assumptions changed:
The discount rate was changed from 2.06% to 4.05%.
E. Sensitivity of the Total OPEB Liability
liability would be if it were
calculated using a discount rate that is 1-percentage point lower (1.06 percent) or 1-percentage-point higher (3.06
percent) than the current discount rate:
1 Percent 1 Percent
Decrease (3.05%) Current (4.05%) Increase (5.05%)
1,024,206$ 1,175,850$ 1,355,452$
ere
calculated using a Healthcare Cost Trent Rate that is 1-percentage point lower (7 percent decreasing to 6 percent) or 1-
percentage-point higher (9 percent increasing to 8 percent) than the current cost trend rate:
79
prior measurement date, the following assumptions changed:prior measurement date, the following assumptions changed:
The discount rate was changed from The discount rate was changed from 2.2.0606% to % to 4.055%.%.
Sensitivity of the Total OPEB LiabilitySensitivity of the Total OPEB Liability
liability would be if it were liability would be if it were
calculated using a discount rate that is 1calculated using a discount rate that is 1-percentage point lower (percentage point lower (1.06 06 percent) or 1percent) or 1-percentage-point higher (point higher (3.06
percent) than the current discount rate:percent) than the current discount rate:
114
City of Orono, Minnesota
Notes to the Financial Statements
December 31, 2023
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 claims in excess of various amounts. The City retains risk for the
deductible portion of the insurance policies and for any exclusions from the insurance policies. These amounts are
considered immaterial to the financial statements.
The City continues to carry commercial insurance for all other risks of loss, including disability and employee health
insurance.
There were no significant reductions in insurance from the previous year or settlements in excess of insurance coverage
for any of the past three fiscal years.
The risk management activities of the City are accounted for by the Risk Management fund, an internal service fund,
which charges its costs to user departments. The fund is designed to build up a reserve which will provide the City the
opportunity to assume a greater share of its insurance risks and thereby reducing the cost to purchase insurance.
B. Contingencies
Tax Increment Financing Districts
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.
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
(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 childcare 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.
80
There were no significant reductions in insurance from the previous year or settlements in excess of insurance coverage 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.for any of the past three fiscal years.
The risk management activities of the City are accounThe risk management activities of the City are accounted for by the Risk Management fted for by the Risk Management fund, an internal service fund, und, an internal service fund,
which charges which charges its costs to user departments. its costs to user departments. The fund is designed to build up a reserve which will provide the City the 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.opportunity to assume a greater share of its insurance risks and thereby reducing the cost to purchase insurance.
ContingenciesContingencies
115
City of Orono, Minnesota
Notes to the Financial Statements
December 31, 2023
Note 6: Other Information (Continued)
All property of the Plan and income attributable to that property is solely the property of the City, subject to the claims of
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
the amount of $2,000,000. The grant is repayable to the state if the property is not maintained for low-impact recreation
and conservation use.
E. Police Services Contracts
As of December 31, 2019, the City of Orono had several contracts to provide police services to neighboring cities. The
most significant of those was a contract with the city of Mound, which the City entered into as of January 1, 2013 and
which extends 10 years to December 31, 2022. The contract also included annual payments from the city of Mound
starting at $1,545,000 in 2013 and increasing between 1%-5% each year through the end of the contract. The contract has
been renewed as of December 31, 2023.
The City also has a contract with the cities of Minnetonka Beach and Spring Park to furnish law enforcement services to
each respective city. The original contract term ended December 31, 2012 and includes the option to verbally extend it
each year for an additional one-year period. The contract has been extended each year through 2023.
81
The City also has a contract with the cities of Minnetonka Beach and The City also has a contract with the cities of Minnetonka Beach and Spring Park to furnish law enforcement services to Spring Park to furnish law enforcement services to
each respective city. The original contract term ended December 31, 2012 and includes the option to verbally extend it each respective city. The original contract term ended December 31, 2012 and includes the option to verbally extend it
each year for an additional oneeach year for an additional one-year period. The contract has been extended each year year period. The contract has been extended each year through 2023.
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82 117
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF ORONO, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2023
83 118
City of Orono, Minnesota
Required Supplementary Information
For the Year Ended December 31, 2023
Schedule of hare of PERA Net Pension Liability - General Employees Fund
Note: Schedule is intended to show 10-year trend. Additional years will be reported as they become available.
Schedule of E PERA Contributions - General Employees Fund
Note: Schedule is intended to show 10-year trend. Additional years will be reported as they become available.
84
Note: Schedule is Note: Schedule is intended to show 10intended to show 10-year trend. Additional years will be reported as they become available.year trend. Additional years will be reported as they become available.-
Schedule of ESchedule of E PPERAERA Contributions ontributions -General Employees FundGeneral Employees Fund
119
City of Orono, Minnesota
Required Supplementary Information (Continued)
For the Year Ended December 31, 2023
Notes to the Required Supplementary Information - General Employees Fund
Changes in Actuarial Assumptions
2023 - The investment return assumption and single discount rate were changed from 6.5 percent to 7.00 percent.
2022 - The mortality improvement scale was changed from Scale MP-2020 to Scale MP-2021.
2021 - The investment return and single discount rates were changed from 7.50 percent to 6.50 percent, for financial
reporting purposes. The mortality improvement scale was changed from Scale MP-2019 to Scale MP-2020.
2020 - The price inflation assumption was decreased from 2.50% to 2.25%. The payroll growth assumption was
decreased from 3.25% to 3.00%. Assumed salary increase rates were changed as recommended in the June 30, 2019
experience study. The net effect is assumed rates that average 0.25% less than previous rates. Assumed rates of
retirement were changed as recommended in the June 30, 2019 experience study. The changes result in more unreduced
(normal) retirements and slightly fewer Rule of 90 and early retirements. Assumed rates of termination were changed as
recommended in the June 30, 2019 experience study. The new rates are based on service and are generally lower than the
previous rates for years 2-5 and slightly higher thereafter. Assumed rates of disability were changed as recommended in
the June 30, 2019 experience study. The change results in fewer predicted disability retirements for males and females.
The base mortality table for healthy annuitants and employees was changed from the RP-2014 table to the Pub-2010
General Mortality table, with adjustments. The base mortality table for disabled annuitants was changed from the RP-
2014 disabled annuitant mortality table to the PUB-2010 General/Teacher disabled annuitant mortality table, with
adjustments. The mortality improvement scale was changed from Scale MP-2018 to Scale MP-2019. The assumed
spouse age difference was changed from two years older for females to one year older. The assumed number of married
male new retirees electing the 100% Joint & Survivor option changed from 35% to 45%. The assumed number of married
female new retirees electing the 100% Joint & Survivor option changed from 15% to 30%. The corresponding number of
married new retirees electing the Life annuity option was adjusted accordingly.
2019 - The mortality projection 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.
85
General Mortality table, with adjustments. The base mortality table for disabled annuitants was changed from the RPGeneral Mortality table, with adjustments. The base mortality table for disabled annuitants was changed from the RP
2014 disabled annuitant mortality table to the PUB2014 disabled annuitant mortality table to the PUB-2010 General/Teacher disabled annuitant mortality table, with 2010 General/Teacher disabled annuitant mortality table, with
tments. The mortality improvement scale was changed from Scale MPtments. The mortality improvement scale was changed from Scale MP-2018 to Scale MP2018 to Scale MP-2019. The assumed 2019. The assumed
spouse age difference was changed from two years older for females to one year older. The assumed number of married 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% Joimale new retirees electing the 100% Joint & Survivor option changed from 35% to 45%. The assumed number of married nt & 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 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 adjustemarried new retirees electing the Life annuity option was adjuste d accordingly.d accordingly.
The mortality projection was changed from MPThe mortality projection was changed from MP--2017 to MP2017 to MP-20182018
120
City of Orono, Minnesota
Required Supplementary Information (Continued)
For the Year Ended December 31, 2023
Notes to the Required Supplementary Information - General Employees Fund (Continued)
Changes in Plan Provisions
2023 - An additional one-time direct state aid contribution of $170.1 million will be contributed to the Plan on October 1,
2023. The vesting period of those hired after June 30, 2010, was changed from five years of allowable service to three
years of allowable service. The benefit increase delay for early retirements on or after January 1, 2024, was eliminated. A
one-time, non-compounding benefit increase of 2.5 percent minus the actual 2024 adjustment will be payable in a lump
sum for calendar year 2024 by March 31, 2024.
2022 - There were no changes in plan provisions since the previous valuation.
2021 - There were no changes in plan provisions since the previous valuation.
2020 - Augmentation for current privatized members was reduced to 2.0% for the period July 1, 2020 through
December 31, 2023 and 0.0% after. Augmentation was eliminated for privatizations occurring after June 30, 2020.
2019 - The employer supplemental contribution was changed prospectively, decreasing from $31.0 million to $21.0
through 2031.
2018 - The augmentation adjustment in early retirement factors is eliminated over a five-year period starting July 1, 2019,
resulting in actuarial equivalence after June 30, 2024. Interest credited on member contributions decreased from 4.00
percent to 3.00 percent, beginning July 1, 2018. Deferred augmentation was changed to 0.00 percent, effective
January 1, 2019. Augmentation that has already accrued for deferred members will still apply. Contribution stabilizer
provisions were repealed. Postretirement benefit increases were changed from 1.00 percent per year with a provision to
increase to 2.50 percent upon attainment of 90.00 percent funding ratio to 50.00 percent of the Social Security Cost of
Living Adjustment, not less than 1.00 percent and not more than 1.50 percent, beginning January 1, 2019. For retirements
on or after January 1, 2024, the first benefit increase is delayed until the retiree reaches normal retirement age; does not
apply to Rule of 90 retirees, disability benefit recipients, or survivors. Actuarial equivalent factors were updated to reflect
revised mortality and interest assumptions.
2017 -
and $6,000,000 thereafter. The Employer Supplemental Contribution for the Minneapolis Employees Retirement Fund
changed from $21,000,000 to $
$16,000,000 to $6,000,000 in calendar years 2019 to 2031.
2016 - There were no changes in plan provisions since the previous valuation.
2015 - On January 1, 2015, the Minneapolis Employees Retirement Fund was merged into the General Employees Fund,
which increased the total pension liability by $1.1 billion and increased the fiduciary plan net position by $892 million.
Upon consolidation, state and employer contributions were revised.
86
The augmentation adjustment in early retirement factors is eliminated over a fiveThe augmentation adjustment in early retirement factors is eliminated over a five--year period starting July 1, 2019, year period starting July 1, 2019,
resulting in actuarial equivalence after June 30, 2024. Interest credited on member contributions decreased from 4.00 resulting in actuarial equivalence after June 30, 2024. Interest credited on member contributions decreased from 4.00
percent to 3.0percent to 3.00 percent, beginning July 1, 2018. Deferred augmentation was changed to 0.00 percent, effective 0 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 January 1, 2019. Augmentation that has already accrued for deferred members will still apply. Contribution stabilizer
provisions were repealed. Postretirement provisions were repealed. Postretirement benefit increases were changed from 1.00 percent per year with a provision to 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 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 moreLiving Adjustment, not less than 1.00 percent and not more than 1.50 percent, beginning January 1, 2019. For retirements than 1.50 percent, beginning January 1, 2019. For retirements
on or after January 1, 2024, the first benefit increase is delayed until the retiree reaches normal retirement age; does not 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 survapply to Rule of 90 retirees, disability benefit recipients, or survivors. Actuarial equivalent factors were updated to reflect ivors. Actuarial equivalent factors were updated to reflect
121
City of Orono, Minnesota
Required Supplementary Information (Continued)
For the Year Ended December 31, 2023
PERA Net Pension Liability - Public Employees Police and Fire Fund
Note: Schedule is intended to show 10-year trend. Additional years will be reported as they become available.
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)
12/31/23 546,390$ 546,390$ -$ 3,086,949$ 17.70 %
12/31/22 460,205 460,205 - 2,600,029 17.70
12/31/21 462,202 462,202 - 2,611,311 17.70
12/31/20 455,708 455,708 - 2,574,623 17.70
12/31/19 411,298 411,298 - 2,426,539 16.95
12/31/18 370,490 370,490 - 2,286,975 16.20
12/31/17 354,408 354,408 - 2,187,704 16.20
12/31/16 340,380 340,380 - 2,101,111 16.20
12/31/15 333,041 333,041 - 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.
87
Note: Schedule is intended to show 10Note: Schedule is intended to show 10-year trend. Additional years will be reported as they become available.year trend. Additional years will be reported as they become available.-
PPERAERA Contributions Contributions -Public Employees Police and Fire FundPublic Employees Police and Fire Fund
Contributions inContributions in
Relation to theRelation to the
Statutorily Statutorily Contribution City'sStatutorily Statutorily Contribution City's
Required Required Deficiency CoveredRequired Required Deficiency Covered
Contributions asContributions as
a Percentage ofa Percentage of
Covered
122
City of Orono, Minnesota
Required Supplementary Information (Continued)
For the Year Ended December 31, 2023
Notes to the Required Supplementary Information - Police and Fire Fund
Changes in Actuarial Assumptions
2023 - The investment return assumption was changed from 6.5 percent to 7.00 percent. The single discount rate
changed from 5.4 percent to 7.0 percent.
2022 - The mortality improvement scale was changed from Scale MP-2020 to Scale MP-2021. The single discount rate
changed from 6.50 percent to 5.40 percent.
2021 - The investment return and single discount rates were changed from 7.50 percent to 6.50 percent, for financial
reporting purposes. The inflation assumption was changed from 2.50 percent to 2.25 percent. The payroll growth
assumption was changed from 3.25 percent to 3.00 percent. The base mortality table for healthy annuitants and
employees was changed from the RP-2014 table to the Pub-2010 Public Safety Mortality table. The mortality improvement
scale was changed from MP-2019 to MN-2020. The base mortality table for disabled annuitants was changed from the
RP-2014 healthy annuitant mortality table (with future mortality improvement according to Scale MP-2019) to the Pub-
2010 Public Safety disabled annuitant mortality table (with future mortality improvement according to Scale MP-2020).
Assumed rates of salary increase were modified as recommended in the July 14, 2020 experience study. The overall
impact is a decrease in gross salary increase rates. Assumed rates of retirement were changed as recommended in the
July 14, 2020 experience study. The changes result in slightly more unreduced retirements and fewer assumed early
retirements. Assumed rates of withdrawal were changed from select and ultimate rates to service-based rates. The
changes result in more assumed terminations. Assumed rates of disability were increased for ages 25-44 and decreased
for ages over 49. Overall, proposed rates result in more projected disabilities. Assumed percent married for active female
members was changed from 60 percent to 70 percent. Minor changes to form of payment assumptions were applied.
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 vested members and 2 percent for non-vested
members. The base mortality table for healthy annuitants was changed from the RP-2000 fully generational table to the
RP-2014 fully generational table (with a base year of 2006), with male rates adjusted by a factor of 0.96. The mortality
improvement scale was changed from Scale AA to Scale MP-2016. The base mortality table for disabled annuitants was
changed from the RP-2000 disabled mortality table to the mortality tables assumed for healthy retirees. Assumed
termination rates were decreased to 3.0 percent for the first three years of service. Rates beyond the select period of
three years were adjusted, resulting in more expected terminations overall. Assumed percentage of married female
members was decreased from 65 percent to 60 percent. Assumed age difference was changed from separate
assumptions for male members (wives assumed to be three years younger) and female members (husbands assumed to
be four years older) to the assumption that males are two years older than females. The assumed percentage of female
members electing joint and survivor annuities was increased. The assumed post-retirement benefit increase rate was
changed from 1.00 percent for all years to 1.00 percent per year through 2064 and 2.50 percent thereafter. The single
discount rate was changed from 5.6 percent to 7.5 percent.
2016 - The assumed post-retirement benefit increase rate was changed from 1.0 percent per year through 2037 and 2.5
percent per year thereafter to 1.0 percent per year for all future years. The assumed investment return was changed from
7.9 percent to 7.5 percent. The single discount rate was changed from 7.9 percent to 5.6 percent. The assumed future
salary increases, payroll growth and inflation were decreased by 0.25 percent to 3.25 percent for payroll growth and 2.50
percent for inflation.
88
retirements. Assumed rates of withdrawal were changed from select and ultimate rates to serviceretirements. Assumed rates of withdrawal were changed from select and ultimate rates to service--based rates. The based rates. The
changes result in more assumed terminations. Assumed rates of disabilichanges result in more assumed terminations. Assumed rates of disability were increased for ages 25ty were increased for ages 25--44 and decreased 44 and decreased
for ages over 49. Overall, proposed rates result in more projected disabilities. Assumed percent married for active female for ages over 49. Overall, proposed rates result in more projected disabilities. Assumed percent married for active female
members was changed from 60 percent to 70 percent. Minor changes to form of payment asmembers was changed from 60 percent to 70 percent. Minor changes to form of payment as sumptions were applied.sumptions were applied.
The mortality projection scale was changed from MPThe mortality projection scale was changed from MP-2018 to MP2018 to MP-20192019
The mortality projection scale was changed from MPThe mortality projection scale was changed from MP-2017 to MP2017 to MP-2018. 2018.
The mortality projection scale was changed from MPThe mortality projection scale was changed from MP 2016 to MP2016 to MP 2017. As set by statute, the assumed post2017. As set by statute, the assumed post
123
City of Orono, Minnesota
Required Supplementary Information (Continued)
For the Year Ended December 31, 2023
Notes to the Required Supplementary Information - Police and Fire Fund (Continued)
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.
Changes in Plan Provisions
2023 - Additional one-time direct state aid contribution of 19.4 million will be contributed to the Plan on October 1, 2023.
Vesting requirement for new hires after June 30, 2014, was changed from a graded 20-year vesting schedule to a graded
10-year vesting schedule, with 50 percent vesting after five years, increasing incrementally to 100% after 10 years. A one-
time, non-compounding benefit increase of 3.0 percent will be payable in a lump sum for calendar year 2024 by March 31,
2024. Psychological treatment is required effective July 1, 2023, prior to approval for a duty disability benefit for a
increased, effective July 1, 2023.
2022 - There were no changes in plan provisions since the previous valuation.
2021 - There were no changes in plan provisions since the previous valuation
2020 - There were no changes in plan provisions since the previous valuation
2019 - There were no changes in plan provisions since the previous valuation
2018 - As set by statute, the assumed post-retirement benefit increase was changed from 1.0 percent per year through
2064 and 2.5 percent per year, thereafter, to 1.0 percent for all years, with no trigger. An end date of July 1, 2048 was
added to the existing $9.0 million state contribution. New annual state aid will equal $4.5 million in fiscal years 2019 and
2020, and $9.0 million thereafter until the plan reaches 100 percent funding, or July 1, 2048, if earlier. Member
contributions were changed from 10.80 percent to 11.30 percent of pay, effective January 1, 2019 and 11.80 percent of
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 - There were no changes in plan provisions since the previous valuation
2015 - The post-retirement benefit increase to be paid after attainment of the 90 percent funding threshold was changed,
from inflation up to 2.5 percent, to a fixed rate of 2.5 percent.
89
There were no changes in plan provisions since the previous valuationThere were no changes in plan provisions since the previous valuation
As set by statute, the assumed postAs set by statute, the assumed post-retirement benefit increase was changed from 1.0 percent per year through 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 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 exiadded to the existing $9.0 million state contribution.sting $9.0 million state contribution.New annual state aid will equal $4.5 million in fiscal years 2019 and 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.2020, and $9.0 million thereafter until the plan reaches 100 percent funding, or July 1, 2048, if earlier. Member Member
contributions were changed fromcontributions were changed from 10.80 percent to 11.30 percent of pay, effective January 1, 2019 and 11.80 percent of 10.80 percent to 11.30 percent of pay, effective January 1, 2019 and 11.80 percent of
pay, effective January 1, 2020.pay, effective January 1, 2020.Employer contributions were changed from 16.20 percent to 16.95 percent of pay, Employer contributions were changed from 16.20 percent to 16.95 percent of pay,
effective January 1, 2019 and 17.70 percent of pay, effective January 1, 2020.effective January 1, 2019 and 17.70 percent of pay, effective January 1, 2020.Interest credited on member contributions Interest credited on member contributions
124
City of Orono, Minnesota
Required Supplementary Information (Continued)
For the Year Ended December 31, 2023
Note: Schedule is intended to show 10-year trend. Additional years will be reported as they become available.
90 125
COMBINING AND INDIVIDUAL FUND
FINANCIAL STATEMENTS AND SCHEDULES
CITY OF ORONO, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2023
91
FOR THE FOR THE YEAR ENDEDYEAR ENDED
DECEMBER 31, DECEMBER 31, 2023
126
THIS PAGE IS LEFT
BLANKINTENTIONALLY
92 127
NONMAJOR GOVERNMENTAL FUNDS
93 128
City of Orono, Minnesota
Nonmajor Governmental Funds
Combining Balance Sheet
December 31, 2023
Total
Nonmajor
Special Debt Capital Governmental
Revenue Service Projects Funds
Assets
Cash and temporary investments 1,395,253$ 514,818$ 2,708,522$ 4,618,593$
Receivables
Accrued interest 1,330 1,009 2,463 4,802
Special assessments 28,000 - - 28,000
Due from other governments 38,596 7,241 1,521 47,358
Due from other funds 601,467 - - 601,467
Total Assets 2,064,646$ 523,068$ 2,712,506$ 5,300,220$
Liabilities
Accounts and contracts payable 48,402$ 3,425$ 119,345$ 171,172$
Due to other governments 753 - - 753
Due to other funds 601,467 - - 601,467
Total Liabilities 650,622 3,425 119,345 773,392
Deferred Inflows of Resources
Unavailable revenues - special assessments 28,000 - - 28,000
Fund Balances
Restricted 1,600,126 858,499 371,306 2,829,931
Committed 313,344 - - 313,344
Assigned - - 2,221,855 2,221,855
Unassigned (527,446) (338,856) - (866,302)
Total Fund Balances 1,386,024 519,643 2,593,161 4,498,828
Total Liabilities, Deferred Inflows of Resources
and Fund Balances 2,064,646$ 523,068$ 2,712,506$ 5,300,220$
94
Due to other fundsDue to other funds 601,467601,467
Total LiabilitiesTotal Liabilities 650,622650,622 3,4253,425 119,345119,345
Deferred Inflows of ResourcesDeferred Inflows of Resources
Unavailable revenues - special assessmentsUnavailable revenues - special assessments 28,00028,000 -- --
Fund BalancesFund Balances
RestrictedRestricted 1,600,126 858,499858,499 371,306371,306 2,829,931
CommittedCommitted 313,344 ---
129
City of Orono, Minnesota
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
For the Year Ended December 31, 2023
Total
Nonmajor
Special Debt Capital Governmental
Revenue Service Projects Funds
Revenues
Taxes 228,908$ 1,002,000$ 219,000$ 1,449,908$
Special assessments 22,698 - - 22,698
Licenses and permits 62,446 - - 62,446
Intergovernmental - - 372,456 372,456
Charges for services 28,525 - - 28,525
Fines and forfeitures 102,312 - - 102,312
Investment earnings 56,947 36,222 103,941 197,110
Miscellaneous - - 71,543 71,543
Total Revenues 501,836 1,038,222 766,940 2,306,998
Expenditures
Current
Public safety 2,171 - - 2,171
Parks and recreation 23,076 - - 23,076
Community development 154,566 - - 154,566
Capital outlay
Public safety - - 708,195 708,195
Public works - - 734,541 734,541
Parks and recreation 31,432 - - 31,432
Debt service
Principal - 1,095,000 - 1,095,000
Interest and other charges - 450,581 - 450,581
Total Expenditures 211,245 1,545,581 1,442,736 3,199,562
Excess (Deficiency) of Revenues
Over (Under) Expenditures 290,591 (507,359) (675,796) (892,564)
Other Financing Sources
Transfers in 500,000 362,767 1,008,609 1,871,376
Transfers out - (235,267) (741,435) (976,702)
Financed purchase issued - - 484,900 484,900
Total Other Financing Sources (Uses) 500,000 127,500 752,074 1,379,574
Net Change in Fund Balances 790,591 (379,859) 76,278 487,010
Fund Balances, January 1 595,433 899,502 2,516,883 4,011,818
Fund Balances, December 31 1,386,024$ 519,643$ 2,593,161$ 4,498,828$
95
Public safetyPublic safety 2,1712,171 - --
Parks and recreationParks and recreation 23,07623,076 - --
Community developmentCommunity development 154,566154,566 - --
Capital outlayCapital outlay
Public safetyPublic safety -- - 708,195708,195
Public worksPublic works -- - 734,541734,541
Parks and recreationParks and recreation 31,432 - --
Debt serviceDebt service
130
THIS PAGE IS LEFT
BLANKINTENTIONALLY
96 131
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.
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.
HRA General Fund accounts for revenues from and expenditures related to housing programs.
97 132
City of Orono, Minnesota
Nonmajor Special Revenue Funds
Subcombining Balance Sheet
December 31, 2023
225 231 233 234
Drug
and Felony Affordable Lurton
Park Forfeiture Housing Park
Assets
Cash and temporary investments 277,041$ 694,510$ 142,068$ 105,183$
Receivables
Accrued interest 1,220 - 27 -
Special assessments - - - -
Due from other governments 1,039 - - -
Due from other funds - - - -
Total Assets 279,300$ 694,510$ 142,095$ 105,183$
Liabilities
Accounts and contracts payable -$ -$ -$ -$
Due to other governments - - - -
Due to other funds - - - -
Total Liabilities - - - -
Deferred Inflows of Resources
Unavailable revenues - special assessments - - - -
Fund Balances
Restricted 62,446 694,510 142,095 8,693
Committed 216,854 - - 96,490
Unassigned - - - -
Total Fund Balances 279,300 694,510 142,095 105,183
Total Liabilities, Deferred Inflows
of Resources and Fund Balances 279,300$ 694,510$ 142,095$ 105,183$
98
Total LiabilitiesTotal Liabilities
Deferred Inflows of ResourcesDeferred Inflows of Resources
Unavailable revenues - special assessmentsUnavailable revenues - special assessments - - --
Fund Balances Fund Balances
RestrictedRestricted 62,44662,446 694,510694,510 142,095142,095
CommittedCommitted 216,854216,854 - --
UnassignedUnassigned -- - --
Total Fund BalancesTotal Fund Balances 279,300 694,510694,510 142,095142,095
133
235 238 239 241
Carmen Bay
Senior Lake HRA General
Housing TIF Big Island Improvement Fund Total
74,692$ 90,414$ 11,345$ -$ 1,395,253$
82 - 1 - 1,330
- - 28,000 - 28,000
37,378 - 179 - 38,596
- - 601,467 601,467
112,152$ 90,414$ 39,525$ 601,467$ 2,064,646$
37,378$ -$ 11,024$ -$ 48,402$
753 - - 753
601,467 - - 601,467
639,598 - 11,024 - 650,622
- - 28,000 - 28,000
- 90,414 501 601,467 1,600,126
- - - - 313,344
(527,446) - - (527,446)
(527,446) 90,414 501 601,467 1,386,024
112,152$ 90,414$ 39,525$ 601,467$ 2,064,646$
99
639,598639,598 11,02411,024 650,622650,622
-- 28,00028,000 -- 28,00028,000
-90,41490,414 501501 601,467601,467 1,600,1261,600,126
-- - - 313,344313,344
(527,446)(527,446)- -- (527,446)(527,446)
(527,446)(527,446)90,414 501501 601,467 1,386,0241,386,024
134
City of Orono, Minnesota
Nonmajor Special Revenue Funds
Subcombining Statement of Revenues, Expenditures
and Changes in Fund Balances
For the Year Ended December 31, 2023
225 231 233 234
Drug
and Felony Affordable Lurton
Park Forfeiture Housing Park
Revenues
Taxes 150,000$ -$ -$ -$
Special assessments - - - -
Licenses and permits 62,446 - - -
Charges for services - - - 28,525
Fines and forfeitures - 102,312 - -
Investment earnings 1,219 35,689 7,265 5,337
Total Revenues 213,665 138,001 7,265 33,862
Expenditures
Current
Public safety - 2,171 - -
Parks and recreation - - - 411
Community development - - - -
Capital outlay
Parks and recreation 31,432 - - -
Total Expenditures 31,432 2,171 - 411
Excess (Deficiency) of Revenues
Over (Under) Expenditures 182,233 135,830 7,265 33,451
Other Financing Sources (Uses)
Transfers in 500,000 - - -
Net Change in Fund Balances 682,233 135,830 7,265 33,451
Fund Balances, January 1 (402,933) 558,680 134,830 71,732
Fund Balances, December 31 279,300$ 694,510$ 142,095$ 105,183$
100
Community developmentCommunity development
Capital outlayCapital outlay
Parks and recreationParks and recreation 31,43231,432 - --
Total ExpendituresTotal Expenditures 31,43231,432 2,171 --
Excess (Deficiency) of RevenuesExcess (Deficiency) of Revenues
Over (Under) ExpendituresOver (Under) Expenditures 182,233182,233 135,830135,830 7,2657,265
Other Financing Sources (Uses)Other Financing Sources (Uses)
Transfers inTransfers in 500,000
135
235 238 239 241
Carmen Bay
Senior Lake HRA General
Housing TIF Big Island Improvement Fund Total
78,908$ -$ -$ -$ 228,908$
- - 22,698 - 22,698
- - - - 62,446
- - - - 28,525
- - - - 102,312
2,310 4,805 322 - 56,947
81,218 4,805 23,020 - 501,836
- - - - 2,171
- - 22,665 - 23,076
154,566 - - - 154,566
- - - - 31,432
154,566 - 22,665 - 211,245
(73,348) 4,805 355 - 290,591
- - - - 500,000
(73,348) 4,805 355 - 790,591
(454,098) 85,609 146 601,467 595,433
(527,446)$ 90,414$ 501$ 601,467$ 1,386,024$
101
154,566154,566 154,566154,566
-- -- -- 31,43231,432
154,566154,566 - 22,66522,665 -- 211,245211,245
(73,348)(73,348)4,8054,805 355355 -- 290,591290,591
500,000500,000
136
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102 137
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 is used to collect and spend resources related to bonds issued in 2010.
2014 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.
2021 Improvement Bonds accounts for resources accumulated and payments for principal and interest associated with
financing improvement projects.
103 138
City of Orono, Minnesota
Nonmajor Debt Service Funds
Subcombining Balance Sheet
December 31, 2023
321 322 323 324
2014 2016 2021
2010 General Improvement Refunding Improvement
Obligation Bonds Bonds Bonds Bonds Total
Assets
Cash and temporary investments (16)$ 702,433$ 153,594$ (341,193)$ 514,818$
Receivables
Accrued interest 215 794 - - 1,009
Due from other governments 292 1,678 - 5,271 7,241
Total Assets 491$ 704,905$ 153,594$ (335,922)$ 523,068$
Liabilities
Accounts payable 3,425$ -$ -$ -$ 3,425$
Fund Balances
Restricted - 704,905 153,594 - 858,499
Unassigned (2,934) - - (335,922) (338,856)
Total Fund Balances (2,934) 704,905 153,594 (335,922) 519,643
Total Deferred Inflows
of Resources and Fund Balances 491$ 704,905$ 153,594$ (335,922)$ 523,068$
104
Total Fund BalancesTotal Fund Balances (2,934) 704,905704,905 153,594153,594 (335,922)(335,922)
Total Deferred InflowsTotal Deferred Inflows
of Resources and Fund Balancesof Resources and Fund Balances 491$ $ 704,905704,905$ $ 153,594$ $ (335,922)(335,922)$ $
139
City of Orono, Minnesota
Nonmajor Debt Service Funds
Subcombining Statement of Revenues, Expenditures
and Changes in Fund Balances
For the Year Ended December 31, 2023
321 322 323 324
2014 2016 2021
2010 General Improvement Refunding Improvement
Obligation Bonds Bonds Bonds Bonds Total
Revenues
Taxes -$ 242,000$ -$ 760,000$ 1,002,000$
Investment earnings 214 26,203 9,805 - 36,222
Total Revenues 214 268,203 9,805 760,000 1,038,222
Expenditures
Debt service
Principal - 235,000 520,000 340,000 1,095,000
Interest and other charges 3,491 49,622 13,950 383,518 450,581
Total Expenditures 3,491 284,622 533,950 723,518 1,545,581
Excess (Deficiency) of Revenues
Over (Under) Expenditures (3,277) (16,419) (524,145) 36,482 (507,359)
Other Financing Sources
Transfers in 235,267 95,000 32,500 - 362,767
Transfers out - - (235,267) (235,267)
Total Other Financing
Sources (Uses) 235,267 95,000 (202,767) 127,500
Net Change in Fund Balances 231,990 78,581 (726,912) 36,482 (379,859)
Fund Balances, January 1 (234,924) 626,324 880,506 (372,404) 899,502
Fund Balances, December 31 (2,934)$ 704,905$ 153,594$ (335,922)$ 519,643$
105
Transfers inTransfers in 235,267 95,000 32,50032,500 --
Transfers outTransfers out - - (235,267)
Total Other FinancingTotal Other Financing
Sources (Uses)Sources (Uses)235,267235,267 95,00095,000 (202,767)
Net Change in Fund BalancesNet Change in Fund Balances 231,990231,990 78,58178,581 (726,912)(726,912) 36,48236,482
Fund Balances, January 1Fund Balances, January 1 (234,924)(234,924) 626,324626,324 880,506 (372,404)(372,404)
Fund Balances, December 31Fund Balances, December 31 (2,934)(2,934)$ $ 704,905704,905$ 153,594$ $ (335,922)(335,922)$ $
140
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106 141
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.
Fire Fund accounts for the revenues and expenditures relating to the fire department.
Navarre Fire Station Construction Fund accounts for the construction costs of a new fire station in the Navarre area of
the City.
Big Island Public Project Fund accounts for the improvement of the Big Island Nature Park.
Police Capital Fund accounts for the revenues and expenditures relating to the Orono Police Department.
107 142
405 406 408 415
Improvement Permanent Community
Equipment Revolving Investment
Outlay Improvement Construction Fire
Assets
Cash and temporary investments 284,760$ 1,097,970$ 510,269$ 372,485
Receivables
Accrued interest 1,349 - 1,114 -
Due from other governments - - 1,521 -
Total Assets 286,109$ 1,097,970$ 512,904$ 372,485$
Liabilities
Accounts and contracts payable 72,737$ -$ 46,608$ -$
Fund Balances
Restricted - - - 371,306
Assigned 213,372 1,097,970 466,296 1,179
Total Fund Balances 213,372 1,097,970 466,296 372,485
Total Liabilities
and Fund Balances 286,109$ 1,097,970$ 512,904$ 372,485$
City of Orono, Minnesota
Nonmajor Capital Projects Funds
Subcombining Balance Sheet
December 31, 2023
108
and Fund Balancesand Fund Balances 286,109$ $ 1,097,9701,097,970$ $ 512,904512,904$ $ $ $
143
425 430 437
Navarre Big Island
Fire Station Public Police
Construction Project Capital Total
907$ 51,192$ 390,939$ 2,708,522$
- - - 2,463
- - - 1,521
907$ 51,192$ 390,939$ 2,712,506$
-$ -$ -$ 119,345$
- - - 371,306
907 51,192 390,939 2,221,855
907 51,192 390,939 2,593,161
907$ 51,192$ 390,939$ 2,712,506$
109
907907 51,19251,192$ $ 390,939390,939$ $ 2,712,5062,712,506$
144
City of Orono, Minnesota
Nonmajor Capital Projects Funds
Subcombining Statement of Revenues, Expenditures
and Changes in Fund Balances
For the Year Ended December 31, 2023
405 406 408 415
Improvement Permanent Community
Equipment Revolving Investment
Outlay Improvement Construction Fire
Revenues
Taxes -$ -$ 219,000$ -$
Intergovernmental - - - 372,456
Investment earnings 13,398 67,639 5,381 1,417
Miscellaneous - - 71,543 -
Total Revenues 13,398 67,639 295,924 373,873
Expenditures
Capital outlay
Public safety - - - 666,788
Public works 304,619 - 429,922 -
Total Expenditures 304,619 - 429,922 666,788
Excess (Deficiency) of Revenues
Over (Under) Expenditures (291,221) 67,639 (133,998) (292,915)
Other Financing Sources
Transfers in 397,250 - - 180,500
Financed purchase issued - - - 484,900
Transfers out (80,500) (430,859) - -
Total Other Financing
Sources (Uses) 316,750 (430,859) - 665,400
Net Change in Fund Balances 25,529 (363,220) (133,998) 372,485
Fund Balances, January 1 187,843 1,461,190 600,294 -
Fund Balances, December 31 213,372$ 1,097,970$ 466,296$ 372,485$
110
Other Financing Sources Other Financing Sources
Transfers inTransfers in 397,250 - --
Financed purchase issuedFinanced purchase issued - - --
Transfers outTransfers out (80,500)(80,500) (430,859) --
Total Other FinancingTotal Other Financing
Sources (Uses) Sources (Uses)316,750316,750 (430,859) --
Net Change in Fund BalancesNet Change in Fund Balances 25,52925,529 (363,220) (133,998)(133,998)
145
425 430 437
Navarre Big Island
Fire Station Public Police
Construction Project Capital Total
-$ -$ -$ 219,000$
- - - 372,456
- 14,619 1,487 103,941
- - - 71,543
- 14,619 1,487 766,940
- - 41,407 708,195
- - - 734,541
- - 41,407 1,442,736
- 14,619 (39,920) (675,796)
- - 430,859 1,008,609
- - - 484,900
- (230,076) - (741,435)
- (230,076) 430,859 752,074
- (215,457) 390,939 76,278
907 266,649 - 2,516,883
907$ 51,192$ 390,939$ 2,593,161$
111
--- 430,859430,859 1,008,6091,008,609
--- - 484,900484,900
--(230,076)(230,076) - (741,435)(741,435)
--(230,076)(230,076) 430,859430,859 752,074752,074
--(215,457)(215,457) 390,939 76,27876,278
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112 147
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
Cable Television Fund accounts for the revenues and expenses created from the cable franchise agreements that the City
is a part of.
Golf Course Fund
113 148
Recycling Cable Television Golf Course Total
Assets
Current Assets
Cash and temporary investments 79,540$ (10,986)$ 48,907$ 117,461$
Receivables
Accrued interest - 458 - 458
Accounts 42,199 16,043 - 58,242
Prepaid items - - 42 42
Total Current Assets 121,739 5,515 48,949 176,203
Noncurrent Assets
Capital assets
Improvements other than buildings - - 205,474 205,474
Machinery and equipment - 267,544 - 267,544
Total Capital Assets - 267,544 205,474 473,018
Less accumulated depreciation - (86,468) (138,876) (225,344)
Net Capital Assets - 181,076 66,598 247,674
Total Assets 121,739 186,591 115,547 423,877
Deferred Outflows of Resources
Deferred pension resources 1,741 - 17,785 19,526
Liabilities
Current Liabilities
Accounts and contracts payable 227 - 696 923
Accrued salaries payable 287 46 2,134 2,467
Due to other governments - - 34 34
Total Current Liabilities 514 46 2,864 3,424
Noncurrent Liabilities
Net pension liability 6,084 - 62,148 68,232
Other postemployment benefits payable 332 81 30,728 31,141
Total Noncurrent Liabilities 6,416 81 92,876 99,373
Total Liabilities 6,930 127 95,740 102,797
Deferred Inflows of Resources
Deferred pension resources 1,711 - 17,471 19,182
Net Position
Investment in capital assets - 181,076 66,598 247,674
Unrestricted 114,839 5,388 (46,477) 73,750
Total Net Position 114,839$ 186,464$ 20,121$ 321,424$
City of Orono, Minnesota
Combining Statement of Net Position
Nonmajor Proprietary Funds
December 31, 2023
Business-type Activities - Enterprise Funds
114
Total AssetsTotal Assets 121,739 186,591 115,547115,547
Deferred Outflows of ResourcesDeferred Outflows of Resources
Deferred pension resourcesDeferred pension resources 1,7411,741 -- 17,78517,785
Current LiabilitiesCurrent Liabilities
Accounts and contracts payableAccounts and contracts payable 227227 696696
149
Recycling Cable Television Golf Course Total
Operating Revenues
Charges for services 255,612$ 68,368$ 280,349$ 604,329$
Golf shop - - 21,915 21,915
Golf cart rentals - - 112,871 112,871
Food and beverage - - 26,474 26,474
Total Operating Revenues 255,612 68,368 441,609 765,589
Operating Expenses
Personnel services 13,685 (4,633) 242,578 251,630
Other services and charges 190,800 190,800
Supplies - 216 54,868 55,084
Professional services 207,269 52,938 - 260,207
Depreciation - 16,395 3,927 20,322
Administrative charges from the General Fund - 3,125 - 3,125
Other 21,545 - - 21,545
Total Operating Expenses 242,499 68,041 492,173 802,713
Operating Income (Loss) 13,113 327 (50,564) (37,124)
Nonoperating Revenues
Intergovernmental 8,519 - - 8,519
Investment earnings 3,803 (14) 148 3,937
Miscellaneous revenues 13,520 - 12 13,532
Total Nonoperating
Revenues (Expense) 25,842 (14) 160 25,988
Income (Loss) Before Contributions
and Transfers 38,955 313 (50,404) (11,136)
Capital Contributions from Governmental funds - - 70,525 70,525
Change in Net Position 38,955 313 20,121 59,389
Net Position - January 1 75,884 186,151 - 262,035
Net Position, December 31 114,839$ 186,464$ 20,121$ 321,424$
City of Orono, Minnesota
Combining Statement of Revenues, Expenses and Changes in Net Position
Nonmajor Proprietary Funds
For the Year Ended December 31, 2023
Business-type Activities - Enterprise Funds
115
Total Operating ExpensesTotal Operating Expenses 242,499242,499 68,04168,041 492,173492,173 802,713802,713
Operating Income (Loss)Operating Income (Loss)13,11313,113 327 (50,564)(50,564)
Nonoperating Revenues Nonoperating Revenues
IntergovernmentalIntergovernmental 8,5198,519 - --
Investment earningsInvestment earnings 3,8033,803 (14) 148148
Miscellaneous revenuesMiscellaneous revenues 13,520 - 1212
Total NonoperatingTotal Nonoperating
150
Recycling Cable Television Golf Course Total
Cash Flows from Operating Activities
Receipts from customers and users 245,941$ 70,403$ 441,609$ 757,953$
Other operating receipts 13,520 - 12 13,532
Payments to suppliers (246,618) (56,279) (244,980) (547,877)
Payments to employees (12,944) (27) (147,882) (160,853)
Net Cash Provided (Used) by
Operating Activities (101) 14,097 48,759 62,755
Cash Flows from Noncapital
Financing Activities
Intergovernmental receipts 8,519 - - 8,519
Cash Flows from Capital and
Related Financing Activities
Acquisition of capital assets - (29,233) - (29,233)
Cash Flows from Investing Activities
Investment receipts 4,033 - 148 4,181
Net Increase (Decrease) in
Cash and Cash Equivalents 12,451 (15,136) 48,907 46,222
Cash and Cash Equivalents, January 1 67,089 4,150 - 71,239
Cash and Cash Equivalents, December 31 79,540$ (10,986)$ 48,907$ 117,461$
Reconciliation of Operating Loss
to Net Cash Provided (Used) by Operating Activities
Operating Income (loss) 13,113$ 327$ (50,564)$ (37,124)$
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities
Depreciation - 16,395 3,927 20,322
Other income related to operations 13,520 - 12 13,532
(Increase) decrease in assets/deferred
outflows of resources
Accounts receivable (9,671) 2,035 - (7,636)
Prepaid items - - (42) (42)
Deferred pension resources 936 1,733 (17,785) (15,116)
Increase (decrease) in liabilities/deferred
inflows of resources
Accounts and contracts payable (17,804) - 696 (17,108)
Accrued salaries payable 104 (311) 2,134 1,927
Due to other governments - - 34 34
Net pension liability (2,342) (6,163) 62,148 53,643
Other postemployment benefits payable 332 81 30,728 31,141
Deferred pension resources 1,711 - 17,471 19,182
Net Cash Provided (Used) by
Operating Activities (101)$ 14,097$ 48,759$ 62,755$
City of Orono, Minnesota
Combining Statement of Cash Flows
Nonmajor Proprietary Funds
For the Year Ended December 31, 2023
Business-type Activities - Enterprise Funds
116
Cash and Cash Equivalents, January 1Cash and Cash Equivalents, January 1 67,08967,089 4,1504,150 --
Cash and Cash Equivalents, December 31Cash and Cash Equivalents, December 31 79,54079,540$ (10,986)$ 48,90748,907$ $
Reconciliation of Operating LossReconciliation of Operating Loss
to Net Cash Provided (Used) by Operating Activitiesto Net Cash Provided (Used) by Operating Activities
Operating Income (loss)Operating Income (loss)13,11313,113$ $ 327$ $ (50,564)(50,564)$ $
Adjustments to reconcile operating income (loss)Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activitiesto net cash provided (used) by operating activities
DepreciationDepreciation -- 16,395 3,9273,927
Other income related to operationsOther income related to operations 13,52013,520 - 12
151
City of Orono, Minnesota
General Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual
For the Year Ended December 31, 2023
Actual Variance with
Original Final Amounts Final Budget
Revenues
Taxes 5,664,500$ 5,664,500$ 5,613,956$ (50,544)$
Licenses and permits 585,200 585,200 801,514 216,314
Intergovernmental 403,000 403,000 686,742 283,742
Charges for services 4,051,270 4,051,270 3,872,716 (178,554)
Fines and forfeitures 80,000 80,000 57,761 (22,239)
Investment earnings 160,900 160,900 182,787 21,887
Miscellaneous
Rents and refunds 5,400 5,400 5,400 -
Other 43,000 43,000 99,946 56,946
Total Revenues 10,993,270 10,993,270 11,320,822 327,552
Expenditures
Current
General government
Administration 536,350 536,350 529,366 6,984
Election 38,800 38,800 35,817 2,983
Assessing 260,000 260,000 254,000 6,000
Finance 334,000 334,000 334,415 (415)
Legal 125,000 125,000 144,782 (19,782)
Human services 12,400 12,400 9,500 2,900
Central services 317,200 317,200 392,221 (75,021)
Total general government 1,623,750 1,623,750 1,700,101 (76,351)
Public safety
Police 5,371,400 5,371,400 5,446,994 (75,594)
Fire 718,800 718,800 793,437 (74,637)
Inspection and Zoning 820,970 820,970 841,948 (20,978)
Total public safety 6,911,170 6,911,170 7,082,379 (171,209)
Public works
Streets 1,032,600 1,032,600 1,420,306 (387,706)
Parks and recreation
Golf course 364,800 364,800 - 364,800
Other 419,950 419,950 444,116 (24,166)
Total parks and recreation 784,750 784,750 444,116 340,634
Capital outlay
Public safety 221,000 221,000 179,339 41,661
Public Works 20,000 20,000 - 20,000
Total capital outlay 241,000 241,000 179,339 61,661
Total Expenditures 10,593,270 10,593,270 10,826,241 (232,971)
Excess of Revenues
Over Expenditures 400,000 400,000 494,581 94,581
Other Financing Sources (Uses)
Transfers in - - 49,847 49,847
Transfers out (400,000) (400,000) (1,580,000) (1,180,000)
Total Other Financing
Sources (Uses) (400,000) (400,000) (1,530,153) (1,130,153)
Net Change in Fund Balances - - (1,035,572) (1,035,572)
Fund Balances, January 1 5,253,315 5,253,315 5,253,315 -
Fund Balances, December 31 5,253,315$ 5,253,315$ 4,217,743$ (1,035,572)$
Budget Amounts
117
Human servicesHuman services 12,40012,400 12,40012,400 9,5009,500
Central servicesCentral services 317,200317,200 317,200317,200 392,221392,221
Total general governmentTotal general government 1,623,7501,623,750 1,623,750 1,700,1011,700,101
Public safetyPublic safety
5,371,4005,371,400 5,371,4005,371,400 5,446,9945,446,994
718,800718,800 718,800 793,437793,437
Inspection and ZoningInspection and Zoning 820,970820,970 820,970 841,948841,948
Total public safetyTotal public safety 6,911,1706,911,170 6,911,170 7,082,3797,082,379
Public worksPublic works
152
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118 153
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,
Compensated Absences Fund was established to account for the accrual of sick and vacation days that are earned by the
Fleet Management Fund
various vehicles.
IT Services was established to account for the cost of IT services to the various City functions and departments.
119 154
City of Orono, Minnesota
Internal Service Funds
Combining Statement of Net Position
December 31, 2023
703 705 701 710
Insurance Compensated Fleet
Fund Absences Management IT Services Total
Assets
Current Assets
Cash and temporary investments 277,455$ 741,180$ (231,627)$ (263,975)$ 523,033$
Receivables
Accrued interest 84 - 608 735 1,427
Accounts - - - - -
Prepaid items 8,000 - - 34,701 42,701
Total Assets 285,539 741,180 (231,019) (228,539) 567,161
Liabilities
Current Liabilities
Accounts and contracts payable 1,650 - 7,695 63,558 72,903
Accrued salaries payable 49 - 1,602 2,238 3,889
Due to other governments - - 486 - 486
Total Liabilities 1,699 - 9,783 65,796 77,278
Net Position
Unrestricted 283,840$ 741,180$ (240,802)$ (294,335)$ 489,883$
120
UnrestrictedUnrestricted 283,840$ $ 741,180741,180$ $ (240,802)(240,802)$ $ (294,335)(294,335)$ $ $ $
155
City of Orono, Minnesota
Internal Service Funds
Combining Statement of Revenues, Expenses and Changes in Net Position
For the Year Ended December 31, 2023
703 705 701 710
Insurance Compensated Fleet
Fund Absences Management IT Services Total
Operating Revenues
Charges for services 701,411$ -$ 7,750$ -$ 709,161$
Other 18,920 - 220,716 343,838 583,474
Total Operating Revenues 720,331 - 228,466 343,838 1,292,635
Operating Expenses
Personnel services 252,679 - - 115,156 367,835
Supplies - - 795.00 30,175 30,970
Professional services - - - 144,349 144,349
Repairs and maintenance - - 340,193 102,464 442,657
Other Services and Charges 2,891 2,891
Insurance 359,578 - - - 359,578
Total Operating Expenses 612,257 - 343,879 392,144 1,348,280
Operating Income (Loss) 108,074 - (115,413) (48,306) (55,645)
Nonoperating Revenues
Investment earnings 10,713 38,063 605 734 50,115
Change in Net Position 118,787 38,063 (114,808) (47,572) (5,530)
Net Position, January 1 165,053 703,117 (125,994) (246,763) 495,413
Net Position, December 31 283,840$ 741,180$ (240,802)$ (294,335)$ 489,883$
121
Nonoperating RevenuesNonoperating Revenues
Investment earningsInvestment earnings 10,71310,713 38,06338,063 605 734734
Change in Net PositionChange in Net Position 118,787118,787 38,06338,063 (114,808)(114,808) (47,572)(47,572)
Net Position, January 1Net Position, January 1 165,053165,053 703,117703,117 (125,994)(125,994) (246,763)(246,763) 495,413
Net Position, December 31Net Position, December 31 283,840283,840$ 741,180$ $ (240,802)(240,802)$ $ (294,335)(294,335)$ 489,883$
156
City of Orono, Minnesota
Internal Service Funds
Combining Statement of Cash Flows
For the Year Ended December 31, 2023
703 705 701 710
Insurance Compensated Fleet
Fund Absences Management IT Services Total
Cash Flows from Operating Activities
Receipts from customers and users 720,331$ -$ 228,468$ 343,838$ 1,292,637$
Payments to suppliers (357,928) - (335,727) (264,592) (958,247)
Payments to employees (252,889) - 1,602 (114,351) (365,638)
Net Cash Provided (Used) by Operating Activities 109,514 - (105,657) (35,105) (31,248)
Cash Flows from Investing Activities
Investment receipts (loss) 11,298 40,229 (3) (1) 51,523
Net Increase (Decrease) in
Cash and Cash Equivalents 120,812 40,229 (105,660) (35,106) 20,275
Cash and Cash Equivalents, January 1 156,643 700,951 (125,967) (228,869) 502,758
Cash and Cash Equivalents, December 31 277,455$ 741,180$ (231,627)$ (263,975)$ 523,033$
Reconciliation of Operating Income (Loss)
to Net Cash Provided (Used) by Operating Activities
Operating income (loss) 108,074$ -$ (115,413)$ (48,306)$ (55,645)$
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities
(Increase) decrease in assets
Interest Receivable - - 2 - 2
Prepaid items - - - (23,459) (23,459)
Increase (decrease) in liabilities
Accounts and contracts payable 1,650 - 7,666 35,855 45,171
Accrued salaries payable (210) - 1,602 805 2,197
Due to other governments - - 486 - 486
Net Cash Provided (Used) by
Operating Activities 109,514$ -$ (105,657)$ (35,105)$ (31,248)$
122
(Increase) decrease in assets(Increase) decrease in assets
Interest ReceivableInterest Receivable -- -- 22 -
Prepaid itemsPrepaid items -- -- - (23,459)(23,459)
Increase (decrease) in liabilitiesIncrease (decrease) in liabilities
Accounts and contracts payableAccounts and contracts payable 1,6501,650 -- 7,6667,666 35,85535,855
Accrued salaries payableAccrued salaries payable (210)(210) -- 1,6021,602 805805
Due to other governmentsDue to other governments - -- 486 -
Net Cash Provided (Used) byNet Cash Provided (Used) by
Operating ActivitiesOperating Activities 109,514109,514$ $ --$ $ (105,657)$ (35,105)(35,105)$ $
157
STATISTICAL SECTION (UNAUDITED)
CITY OF ORONO, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2023
123
FOR THE YEAR FOR THE YEAR ENDED
DECEMBER 31, DECEMBER 31, 2023
158
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124 159
STATISTICAL SECTION (UNAUDITED)
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
Contents Pages
Financial Trends 127 - 136
performance and well-being have changed over time.
Revenue Capacity 138 - 141
These schedules contain information to help the reader assess the City
property taxes.
Debt Capacity 142 - 148
These schedules present information to help the reader assess the affordability of the City
outstanding debt and the City
Demographic and Economic Information 149 - 151
These schedules offer demographic and economic indicators to help the reader understand the environment within
which the City
Operating Information 152 - 156
These schedules contain service and infrastructure data to help the reader understand how the information in the
City 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.
125
These schedules offer demographic and economic indicators to help the reader understand the environment within These schedules offer demographic and economic indicators to help the reader understand the environment within
which the which the CityCity
nformationnformation 15
These schedules contain service and infrastructure data to help the reader understand how the information in the These schedules contain service and infrastructure data to help the reader understand how the information in the
CityCity provides and the activities it performs.provides and the activities it performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the annual Sources: Unless otherwise noted, the information in these schedules is derived from the annual financial reports for the financial reports for the
160
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126 161
City of Orono, Minnesota
Summary Financial Report
Governmental Funds
Revenues and Expenditures For General Operations
For the Years Ended December 31, 2023 and 2022
2023 2022
Revenues
Taxes 8,438,864$ 7,014,703$ 20.30 %
Special assessments 22,698 24,446 (7.15)
Licenses and permits 863,960 734,843 17.57
Intergovernmental 1,306,012 1,475,319 (11.48)
Charges for services 4,144,378 4,121,474 0.56
Fines and forfeits 160,073 83,741 91.15
Investment earnings (loss) 507,584 (287,118) N/A
Miscellaneous 176,889 128,852 37.28
Total Revenues 15,620,458$ 13,296,260$ 17.48 %
Per Capita 1,849$ 1,567$ 18.01 %
Expenditures
Current
General government 1,700,101$ 1,406,879$ 20.84 %
Public safety 7,084,550 6,096,418 16.21
Public works 1,420,306 922,394 53.98
Parks and recreation 467,192 724,281 (35.50)
Community development 154,566 46,406 233.07
Capital outlay
Public safety 887,534 191,140 364.34
Public works 15,434,170 2,279,810 576.99
Parks and recreation 31,432 62,880 (50.01)
Debt service
Principal 1,095,000 735,000 48.98
Interest and other charges 450,581 460,111 (2.07)
Total Expenditures 28,725,432$ 12,925,319$ 122.24 %
Per Capita 3,401$ 1,523$ 123.24
Total Long-term Indebtedness 17,677,701$ 18,326,006$ (3.54) %
Per Capita 2,093 2,160 (3.10)
General Fund Balance - December 31 4,217,743$ 5,253,315$ (19.71) %
Per Capita 499 619 (19.35)
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, Crystal Bay,
Minnesota 55323. Questions about this report should be directed to the Finance Department at (952) 249-4600.
127
ExpendituresExpenditures
General governmentGeneral government 1,700,1011,700,101$ 1,406,8791,406,879$ 20.84
Public safetyPublic safety 7,084,5507,084,550 6,096,4186,096,418 16.21
Public worksPublic works 1,420,3061,420,306 922,394922,394 53.98
Parks and recreationParks and recreation 467,192467,192 724,281724,281 (35.50)
Community developmentCommunity development 154,566154,566 46,40646,406 233.07
Capital outlayCapital outlay
Public safetyPublic safety 887,534887,534 191,140191,140 364.34
162
City of Orono, Minnesota
Statistical Section (Unaudited)
Net Position by Component
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2014 2015 2016 2017
Governmental Activities
Net investment in capital assets 10,720,258$ 14,269,848$ 16,660,990$ 19,020,035$
Restricted 3,535,595 3,835,852 9,046,977 3,699,095
Unrestricted 9,616,862 3,740,883 (3,794,950) 894,132
Total Governmental Activities Net Position 22,229,721$ 23,872,715$ 21,846,583$ 21,913,017$
Business-type Activities
Net investment in capital assets 15,586,266$ 16,042,333$ 15,505,885$ 16,427,467$
Unrestricted 6,105,512 5,946,733 6,411,818 6,001,307
Total Business-type Activities Net Position 21,989,066$ 21,917,703$ 22,428,774$ 22,628,017$
Total Primary Government
Net investment in capital assets 26,441,993$ 26,762,591$ 29,775,733$ 33,088,457$
Restricted 3,596,762 3,535,595 3,835,852 9,046,977
Unrestricted 13,882,744 15,563,595 10,152,701 2,206,357
Total Primary Government Net Position 45,861,781$ 43,764,286$ 44,341,791$ 46,241,279$
Fiscal Year
Note: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.
128
UnrestrictedUnrestricted 13,882,74413,882,744 15,563,59515,563,595 10,152,70110,152,701 2,206,3572,206,357
Total Primary Government Net PositionTotal Primary Government Net Position 45,861,78145,861,781$ 43,764,28643,764,286$ 44,341,79144,341,791$ 46,241,279$
Note:The City implemented GASB Statement No. 68 and GASB Statement No. 67 in fiscal 2015. Years prior to 2015 have not been Note: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.restated. The City implemented GASB Statement No. 75 in fiscal 2018. Years prior to 2018 have not been restated.
163
2018 2019 2020 2021 2022 2023
23,370,988$ 25,500,646$ 28,256,953$ 31,430,458$ 33,174,764$ 34,721,961$
3,434,418 2,418,794 2,252,227 1,767,721 1,409,778 2,625,111
(840,224) 1,122,484 (116,070) (544,720) (828,174) 3,717,033
23,613,262$ 25,965,182$ 29,041,924$ 30,393,110$ 33,756,368$ 41,064,105$
16,940,333$ 17,917,465$ 18,679,663$ 18,910,474$ 20,387,984$ 21,343,572$
5,687,684 5,086,696 4,389,380 4,774,995 6,340,316 4,080,515
23,004,161$ 23,069,043$ 23,685,469$ 25,278,271$ 26,728,300$ 25,424,087$
35,960,368$ 41,288,453$ 44,180,309$ 47,167,427$ 53,562,748$ 56,065,533$
3,699,095 3,434,418 3,202,919 2,867,209 2,704,755 2,625,111
6,581,816 4,246,472 5,511,864 4,658,925 5,512,142 7,797,548
48,969,343$ 52,895,092$ 54,693,561$ 59,239,303$ 61,779,645$ 66,488,192$
Fiscal Year
129
6,581,8166,581,816 4,246,4724,246,472 5,511,8645,511,864 4,658,9254,658,925 5,512,1425,512,142 7,797,5487,797,548
48,969,34348,969,343 52,895,09252,895,092$ $ 54,693,56154,693,561$ 59,239,30359,239,303$ $ 61,779,645$ $ 66,488,19266,488,192$
164
City of Orono, Minnesota
Statistical Section (Unaudited)
Changes in Net Position (Continued on the Following Pages)
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2014 2015 2016 2017
Expenses
Governmental activities
General government 1,719,267$ 1,864,543$ 2,314,539$ 2,722,779$
Public safety 4,984,389 5,107,619 6,263,133 5,486,330
Public works 854,079 999,097 752,976 393,354
Culture and recreation 254,177 324,731 413,797 420,410
Recycling - - - -
Interest on long-term debt 287,181 283,146 258,874 173,552
Total Governmental Activities Expenses 8,099,093 8,579,136 10,003,319 9,196,425
Business-type activities
Water 556,766 581,758 634,562 680,595
Sewer 1,184,629 1,332,617 1,401,278 1,429,209
Storm water 186,719 163,747 225,113 190,935
Recycling 114,983 116,642 118,054 126,333
Cable television 12,675 31,802 31,724 48,684
Golf course - - - -
Total Business-type Activities Expenses 2,055,772 2,226,566 2,410,731 2,475,756
Total Primary Government Expenses 10,154,865$ 10,805,702$ 12,414,050$ 11,672,181$
Program Revenues
Governmental activities
Charges for services
General government 692,254$ 736,643$ 770,750$ 947,851$
Public safety 2,570,751 2,737,342 2,720,584 2,947,439
Public works 2,998 3,933 5,108 385
Culture and recreation 207,977 499,083 420,184 195,449
Operating grants and contributions 925,968 732,114 671,059 1,174,782
Capital grants and contributions 22,060 13,549 1,070 609
Total Governmental Activities Program Revenues 4,422,008 4,722,664 4,588,755 5,266,515
Business-type activities
Charges for services
Water 452,429 492,947 594,198 629,736
Sewer 1,200,043 1,297,786 1,505,467 1,408,480
Storm water 318,787 527,255 538,870 289,643
Recycling 113,501 128,387 142,470 140,218
Cable television 71,412 99,632 77,511 76,352
Golf course - - - -
Operating grants and contributions 34,500 34,500 34,500 -
Capital grants and contributions 178,371 16,765 - 45,218
Total Business-type Activities Program Revenues 2,369,043 2,597,272 2,893,016 2,589,647
Total Primary Government Program Revenues 6,791,051$ 7,319,936$ 7,481,771$ 7,856,162$
Fiscal Year
130
Cable television Cable television 12,675 31,80231,802 31,72431,724
Golf courseGolf course - -- --
Total Business-type Activities ExpensesTotal Business-type Activities Expenses 2,055,7722,055,772 2,226,566 2,410,7312,410,731 2,475,756
Total Primary Government ExpensesTotal Primary Government Expenses 10,154,86510,154,865$ 10,805,70210,805,702$ $ 12,414,05012,414,050$ 11,672,181$
Program RevenuesProgram Revenues
Governmental activitiesGovernmental activities
Charges for servicesCharges for services
General governmentGeneral government 692,254692,254$ 736,643$ $ 770,750770,750$ $
165
2018 2019 2020 2021 2022 2023
1,947,411$ 818,147$ 1,865,451$ 1,572,281$ 2,028,478$ 1,983,264$
5,661,624 5,422,838 6,361,790 5,445,046 6,607,975 7,894,893
2,131,198 946,735 1,946,959 1,705,585 2,084,036 2,047,315
465,170 535,357 696,274 731,394 832,389 562,310
- 141,722 111,781 59,265 46,406 154,566
155,122 150,164 138,240 359,970 543,012 399,542
10,360,525 8,014,963 11,120,495 9,873,541 12,142,296 13,041,890
915,730 984,452 1,044,516 1,110,702 1,170,772 1,298,511
1,381,752 1,538,449 1,743,277 1,676,642 1,974,089 2,079,800
143,194 433,908 354,524 310,626 443,573 486,937
127,044 173,049 227,227 232,165 244,021 242,530
51,943 90,586 91,128 100,970 64,010 68,069
- - - - - 492,173
2,619,663 3,220,444 3,460,672 3,431,105 3,896,465 4,668,020
12,980,188$ 11,235,407$ 14,581,167$ 13,304,646$ 16,038,761$ 17,709,910$
1,147,449$ 966,665$ 984,876$ 1,225,915$ 1,168,166$ 897,294$
3,102,546 2,656,733 2,607,888 2,798,742 2,772,525 2,965,900
5,826 881,011 638,149 849,480 1,118,347 1,417,579
389,206 86,501 11,711 175,232 120,403 75,295
1,741,370 419,114 976,217 550,474 493,022 1,701,735
820,165 649,359 617,082 273,445 763,475 50,659
7,206,562 5,659,383 5,835,923 5,873,288 6,435,938 7,108,462
699,562 871,125 1,257,201 1,616,435 1,818,457 1,680,871
1,477,225 1,600,046 1,902,088 2,232,546 2,294,626 2,278,986
421,838 361,199 701,562 715,037 741,332 765,631
136,922 131,013 212,038 234,732 248,455 269,132
78,716 80,237 79,588 74,787 72,991 68,368
- - - - - 441,621
34,500 21,058 - 15,982 468,486 8,519
7,400 253,370 6,050 364,815 44,627 84,387
2,856,163 3,318,048 4,158,527 5,254,334 5,688,974 5,597,515
10,062,725$ 8,977,431$ 9,994,450$ 11,127,622$ 12,124,912$ 12,705,977$
Fiscal Year
131
51,94351,943 90,586 91,12891,128 100,970 64,01064,010 68,06968,069
--- -- -- -- 492,173492,173
2,619,6632,619,663 3,220,4443,220,444 3,460,6723,460,672 3,431,1053,431,105 3,896,4653,896,465 4,668,020
12,980,18812,980,188 11,235,40711,235,407$ 14,581,16714,581,167$ $ 13,304,64613,304,646$ $ 16,038,76116,038,761$ $ 17,709,91017,709,910$ $
1,147,4491,147,449 966,665966,665$ $ 984,876$ $ 1,225,9151,225,915$ $ 1,168,1661,168,166$ 897,294$
166
City of Orono, Minnesota
Statistical Section (Unaudited)
Changes in Net Position (Continued)
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2014 2015 2016 2017
Net Revenues (Expenses)
Governmental activities (3,677,085)$ (3,856,472)$ (5,414,564)$ (3,929,910)$
Business-type activities 313,271 370,706 482,285 113,891
Total Primary Government Net Revenues (Expenses) (3,363,814)$ (3,485,766)$ (4,932,279)$ (3,816,019)$
General Revenues and Other Changes in Net Position
Governmental activities
Taxes
Property taxes 4,809,875$ 4,819,345$ 5,021,340$ 5,268,854$
Tax increments - - - -
Grants and contributions not restricted to specific programs - - - -
Other general revenues 17,337 44,051 149,388 53,207
Unrestricted investment earnings (loss) 215,606 144,252 109,752 114,356
Gain on sale of capital assets 7,961 6,466 45,518 38,738
Transfers 269,300 320,209 155,000 155,000
Total Governmental Activities 5,320,079 5,334,323 5,480,998 5,630,155
Business-type activities
Other general revenues 163,719 141,546 160,967 185,909
Grants and contributions not restricted to specific programs - - - -
Unrestricted investment earnings (loss) 124,098 67,076 57,319 54,443
Transfers (269,300) (320,209) (155,000) (155,000)
Total Business-type Activities 18,517 (111,587) 63,286 85,352
Total Primary Government 5,338,596$ 5,222,736$ 5,544,284$ 5,715,507$
Change in Net Position
Governmental activities 1,642,994$ 1,477,851$ 66,434$ 1,700,245$
Business-type activities 331,788 259,119 545,571 199,243
Total Primary Government 1,974,782$ 1,736,970$ 612,005$ 1,899,488$
Note: 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
132
TransfersTransfers 269,300 320,209320,209 155,000155,000
Total Governmental ActivitiesTotal Governmental Activities 5,320,0795,320,079 5,334,323 5,480,9985,480,998 5,630,155
Business-type activitiesBusiness-type activities
Other general revenuesOther general revenues 163,719163,719 141,546141,546 160,967160,967
Grants and contributions not restricted to specific programsGrants and contributions not restricted to specific programs - - -
Unrestricted investment earnings (loss)Unrestricted investment earnings (loss)124,098124,098 67,076 57,31957,319
TransfersTransfers (269,300)(269,300) (320,209) (155,000)(155,000)
167
2018 2019 2020 2021 2022 2023
(3,153,963)$ (2,355,580)$ (5,284,572)$ (4,000,253)$ (5,706,358)$ (5,933,428)$
236,500 97,604 697,855 1,823,229 1,792,509 929,495
(2,917,463)$ (2,257,976)$ (4,586,717)$ (2,177,024)$ (3,913,849)$ (5,003,933)$
5,510,133$ 5,630,633$ 5,999,083$ 6,551,553$ 6,779,524$ 8,368,232$
- 76,344 82,686 145,895 187,356 78,908
- 26,372 5,321 1,784 16,817 406
193,279 - - - - -
132,799 259,332 173,308 (6,927) (287,466) 508,318
- 63,105 36,217 48,388 2,940 -
(41,000) 160,661 170,000 212,500 97,500 2,990,324
5,795,211 6,216,447 6,466,615 6,953,193 6,796,671 11,946,188
79,683 - - - - -
- - - - - 451,305
51,588 127,939 88,571 (17,927) (244,980) 305,311
41,000 (160,661) (170,000) (212,500) (97,500) (2,990,324)
172,271 (32,722) (81,429) (230,427) (342,480) (2,233,708)
5,967,482$ 6,183,725$ 6,385,186$ 6,722,766$ 6,454,191$ 9,712,480$
2,641,248$ 3,860,867$ 1,182,043$ 2,952,940$ 1,090,313$ 6,012,760$
408,771 64,882 616,426 1,592,802 1,450,029 (1,304,213)
3,050,019$ 3,925,749$ 1,798,469$ 4,545,742$ 2,540,342$ 4,708,547$
Fiscal Year
133
(41,000)(41,000)160,661 170,000170,000 212,500 97,50097,500 2,990,3242,990,324
5,795,2115,795,211 6,216,4476,216,447 6,466,6156,466,615 6,953,1936,953,193 6,796,671 11,946,188
79,68379,683 - -- - -- -
--- -- -- -- 451,305
51,58851,588 127,939127,939 88,57188,571 (17,927)(17,927) (244,980)(244,980) 305,311
41,00041,000 (160,661)(160,661) (170,000)(170,000) (212,500)(212,500) (97,500)(97,500) (2,990,324)
168
City of Orono, Minnesota
Statistical Section (Unaudited)
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
2014 2015 2016 2017
General Fund
Nonspendable 40,532$ 74,800$ 25,376$ 13,277$
Unassigned 3,886,128 4,233,687 4,400,222 4,433,559
Total General Fund 3,926,660$ 4,308,487$ 4,425,598$ 4,446,836$
All Other Governmental Funds
Restricted 3,625,599$ 3,957,346$ 6,383,149$ 3,685,145$
Committed - - - -
Assigned 4,029,776 2,951,616 3,358,915 3,148,848
Unassigned - (178,573) (872,147) (1,050,959)
Total All Other Governmental Funds 7,655,375$ 6,730,389$ 8,869,917$ 5,783,034$
Fiscal Year
134 169
2018 2019 2020 2021 2022 2023
118,170$ 119,157$ 30,343$ 40,670$ 33,771$ 93,611$
4,336,396 4,288,536 4,516,690 4,619,903 5,219,544 4,124,132
4,454,566$ 4,407,693$ 4,547,033$ 4,660,573$ 5,253,315$ 4,217,743$
3,495,176$ 3,250,008$ 2,908,430$ 18,561,508$ 18,046,016$ 3,807,341$
- 16,741 36,329 38,712 64,885 313,344
2,403,358 2,721,806 2,773,589 3,245,236 3,217,483 6,802,532
(2,759,730) (2,676,572) (3,111,513) (4,484,366) (4,088,655) (2,207,141)
3,138,804$ 3,311,983$ 2,606,835$ 17,361,090$ 17,239,729$ 8,716,076$
Fiscal Year
135 170
City of Orono, Minnesota
Statistical Section (Unaudited)
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
2014 2015 2016 2017
Revenues
Taxes 4,840,777$ 4,839,722$ 5,057,941$ 5,258,546$
Licenses and permits 675,204 846,343 715,281 613,218
Intergovernmental 745,062 545,236 496,497 1,025,044
Charges for services 2,569,831 2,896,458 2,973,534 3,165,196
Fines and forfeitures 153,821 134,754 133,354 101,824
Investment earnings 195,862 133,204 97,843 105,079
Special assessments 62,632 70,349 8,537 2,226
Miscellaneous 58,012 64,867 143,976 66,122
Total Revenues 9,301,201 9,530,933 9,626,963 10,337,255
Expenditures
Current
General government 1,282,487 1,285,064 1,362,293 1,474,265
Public safety 4,906,572 4,906,117 5,073,430 5,298,939
Streets 454,964 496,239 480,765 486,138
Culture and recreation 231,356 268,831 281,340 304,333
Community development - - - -
Recycling 4,572 - - 1,590
Capital outlay 3,973,460 2,114,343 1,721,077 2,150,260
Debt service
Principal 1,900,000 1,010,000 1,085,788 3,556,024
Interest and other charges 302,728 331,317 344,562 237,286
Bond issuance costs - - - -
Total Expenditures 13,056,139 10,411,911 10,349,255 13,508,835
Deficiency of Revenues
under expenditures (3,754,938) (880,978) (722,292) (3,171,580)
Other Financing Sources (Uses)
Transfers in 905,848 1,451,397 1,565,385 1,262,405
Transfers out (636,548) (1,131,188) (1,410,385) (1,107,405)
Bond issued 4,070,177 - - -
Financed purchase issued - - - -
Premium on bonds issued - - 94,956 -
Refunding bonds issued - - 2,680,000 -
Sale of capital assets 22,662 17,610 48,975 38,738
Total Other Financing Sources (Uses) 4,362,139 337,819 2,978,931 193,738
Net Change in Fund Balances 607,201$ (543,159)$ 2,256,639$ (2,977,842)$
Debt Service as a Percentage of
Noncapital Expenditures 16.50% 24.20% 15.80% 16.40%
Fiscal Year
136
Culture and recreationCulture and recreation 231,356 268,831268,831 281,340281,340
Community developmentCommunity development - -- --
RecyclingRecycling 4,572 - -
Capital outlayCapital outlay 3,973,4603,973,460 2,114,343 1,721,0771,721,077
Debt serviceDebt service
1,900,0001,900,000 1,010,0001,010,000 1,085,7881,085,788
Interest and other chargesInterest and other charges 302,728302,728 331,317 344,562344,562
Bond issuance costsBond issuance costs - - -
Total ExpendituresTotal Expenditures 13,056,13913,056,139 10,411,91110,411,911 10,349,25510,349,255 13,508,835
171
2018 2019 2020 2021 2022 2023
5,448,238$ 5,709,173$ 6,043,234$ 6,691,522$ 7,014,703$ 8,438,864$
954,278 742,042 502,714 781,642 734,843 863,960
1,616,583 966,874 1,439,511 1,048,012 1,475,319 1,306,012
3,211,749 3,647,122 3,578,117 3,941,998 4,121,474 4,144,378
124,060 299,661 72,428 244,444 83,741 160,073
122,659 259,332 173,308 (6,927) (287,118) 507,584
22,935 22,783 35,881 35,759 24,446 22,698
171,219 73,649 141,544 52,371 128,852 176,889
11,671,721 11,720,636 11,986,737 12,788,821 13,296,260 15,620,458
1,433,076 1,271,893 1,732,325 1,348,363 1,406,879 1,700,101
5,628,086 5,446,200 5,599,888 5,857,388 6,096,418 7,084,550
595,740 773,965 1,089,733 811,636 922,394 1,420,306
421,996 480,870 570,346 636,267 724,281 467,192
- 141,722 111,781 59,265 46,406 154,566
- - - - - -
5,771,819 2,607,061 2,568,670 2,892,541 2,533,830 16,353,136
660,000 890,000 925,000 2,150,000 735,000 1,095,000
187,404 184,385 164,613 87,476 460,111 450,581
- - - 325,901 - -
14,698,121 11,796,096 12,762,356 14,168,837 12,925,319 28,725,432
(3,026,400) (75,460) (775,619) (1,380,016) 370,941 (13,104,974)
1,486,307 1,678,274 570,000 1,195,797 397,500 5,921,223
(1,217,307) (1,517,613) (400,000) (983,297) (300,000) (2,860,374)
- - - 15,350,000 - -
- - - - - 484,900
- - - 653,923 - -
- - - - - -
33,097 41,105 39,811 31,388 2,940 -
302,097 201,766 209,811 16,247,811 100,440 3,545,749
(2,724,303)$ 126,306$ (565,808)$ 14,867,795$ 471,381$ (9,559,225)$
33.70% 8.60% 10.92% 19.31% 11.32% 12.45%
Fiscal Year
137
421,996421,996 480,870 570,346570,346 636,267636,267 724,281 467,192467,192
--141,722141,722 111,781111,781 59,26559,265 46,40646,406 154,566154,566
--- - -- -- -
5,771,8195,771,819 2,607,0612,607,061 2,568,670 2,892,5412,892,541 2,533,8302,533,830 16,353,136
660,000660,000 890,000890,000 925,000925,000 2,150,0002,150,000 735,000735,000 1,095,0001,095,000
187,404187,404 184,385184,385 164,613164,613 87,47687,476 460,111460,111 450,581
--- -- 325,901325,901 -- -
14,698,12114,698,121 11,796,09611,796,096 12,762,35612,762,356 14,168,83714,168,837 12,925,31912,925,319 28,725,432
172
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
2014 2,353,751,300$ 52,385,700$ 11,937,300$ 2,418,074,300$ 27,566,309$ 17.815 1.14 %
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 31,164,748 17.325 1.14
2017 2,810,505,878 53,590,300 15,428,800 2,879,524,978 32,961,379 16.759 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 3,345,856,800 62,889,100 19,996,200 3,428,742,100 39,482,419 16.512 1.15
2021 3,504,086,699 62,576,300 19,758,800 3,586,421,799 41,490,542 16.780 1.16
2022 4,244,348,144 67,523,100 21,577,100 4,333,448,344 50,742,986 16.820 1.17
2023 4,801,678,218 67,489,400 33,191,600 4,902,359,218 57,794,187 16.569 1.18
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
138 173
City of Orono, Minnesota
Statistical Section (Unaudited)
Property Tax Rates - Direct and Overlapping Governments
Last Ten Fiscal Years
Fiscal Special
Year Districts
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
2021 15.309 1.471 16.780 22.657 38.210 9.235 86.882
2022 14.758 2.062 16.820 23.903 38.535 9.217 88.475
2023 14.589 1.980 16.569 18.934 34.542 8.164 78.209
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
139 174
City of Orono, Minnesota
Statistical Section (Unaudited)
Principal Property Taxpayers
Current and Nine Years Ago
Net Net
Tax Tax
Taxpayer Capacity Rank Capacity Rank
Brackett Point Property LLC 323,000$ 1 0.56 %- %
Private Residence 201,650 2 0.35 207,313 1 0.75
Private Residence 188,275 3 0.33 119,625 2 0.43
Private Residence 164,250 4 0.28 105,565 3 0
Metro Storage 155,490 5 0.27
1725 Bohns Point LLC 150,600 6 0.26
Private Residence 143,188 7 0.25 104,258 4 0.38
WJM Properties LLC 128,730 8 0.22 97,010 6 0.35
Private Residence 120,238 9 0.21 100,275 5 0.36
Private Residence 119,847 10 0.21 95,288 7 0
Private Residence - 0.00 83,213 8 0.30
Private Residence - 0.00 81,863 9 0.30
Private Residence - 0.00 77,188 10 0.28
Total 1,695,268$ 2.94 % 1,071,598$ 3.88 %
Source: Hennepin County Assessor's Office
Tax Capacity Tax Capacity
2023 2014
Percent of Percent of
Total Net Total Net
140
Source: Hennepin County Assessor's OfficeSource: Hennepin County Assessor's Office
175
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
2014 4,743,144$ 4,701,760$ 99.13 41,384$ 4,743,144$ 100.00 %
2015 4,772,000 4,748,327 99.50 23,673 4,772,000 100.00
2016 4,954,480 4,968,026 * 100.27 (13,546) 4,954,480 100.00
2017 5,205,230 5,235,100 * 100.57 (29,870) 5,205,230 100.00
2018 5,439,951 5,379,375 98.89 55,321 5,434,696 99.90
2019 5,816,338 5,771,646 99.23 41,390 5,813,036 99.94
2020 6,007,450 5,935,931 98.81 67,220 6,003,151 99.93
2021 6,610,682 6,556,718 99.18 47,572 6,604,290 99.90
2022 6,944,776 6,897,016 99.31 41,433 6,938,449 99.91
2023 8,387,000 8,337,685 99.23 - 8,337,685 99.41
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
141
Source: Hennepin County Treasurer - Auditor.Source: Hennepin County Treasurer - Auditor.
* In 2016 and 2017 the City collected slightly more taxes than they levied for as some residents chose to prepay * In 2016 and 2017 the City collected slightly more taxes than they levied for as some residents chose to prepay
their property taxes.their property taxes.
176
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 Finance Obligation (G.O.)Primary Per
Year Bonds Bonds Purchase Bonds Government Capita
2014 10,620,000$ -$ 17,374$ 1,280,000$ 11,917,374$ 2.04 1,571$
2015 9,610,000 - 11,812 1,195,000 10,816,812 1.81 1,421
2016 11,431,701 - 6,024 1,138,557 12,557,725 2.48 1,613
2017 7,660,000 - - 1,045,000 8,705,000 1.27 1,132
2018 7,000,000 - - 965,000 7,965,000 1.10 978
2019 6,110,000 - - 885,000 6,995,000 0.91 863
2020 5,265,000 - - 805,000 6,070,000 0.72 733
2021 3,115,000 15,350,000 - 725,000 19,190,000 2.17 2,308
2022 2,300,000 15,350,000 - 640,000 18,290,000 2.07 2,200
2023 1,545,000 15,010,000 484,900 555,000 17,594,900 1.56 2,107
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
142
See the Schedule of Demographic and Economic Statistics for personal income and population data.See the Schedule of Demographic and Economic Statistics for personal income and population data.
177
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)
2014 10,620,000$ 1,280,000$ 1,189,565$ 10,710,435$ 0.44 1,407$
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 3,179,045 0.12 413
2017 7,660,000 1,045,000 1,854,112 10,622,589 0.37 1,304
2018 7,000,000 965,000 2,080,923 5,884,077 0.20 726
2019 6,110,000 885,000 2,152,818 4,842,182 0.15 585
2020 5,265,000 805,000 2,140,542 3,929,458 0.11 473
2021 18,465,000 725,000 1,298,000 17,892,000 0.50 2,209
2022 17,650,000 640,000 1,441,100 16,848,900 0.39 1,995
2023 17,039,900 555,000 858,499 16,181,401 0.33 1,916
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
143
(1) See the Schedule of Assessed Value and Estimated Actual Value of Taxable Property for property value data.(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.(2) Population data can be found in the Schedule of Demographic and Economic Statistics.
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144 179
Estimated Share
Total Debt of Overlapping
Outstanding Sinking Funds Net Debt Debt
Direct Debt:
City of Orono 17,039,900 $192,995 16,846,905 100.00 %1,352,005$
ISD No. 276 (Minnetonka)119,195,000 2,029,744 117,165,256 0.25 292,913
ISD No. 277 (Westonka)27,385,000 810,781 26,574,219 26.22 6,967,760
ISD No. 278 (Orono)56,655,000 4,231,576 52,423,424 53.14 27,857,808
ISD No. 284 (Wayzata)203,805,000 16,836,062 186,968,938 0.91 1,701,417
Hennepin County 1,071,970,000 15,635,474 1,056,334,526 2.16 22,816,826
Hennepin Suburban Park 54,980,000 5,324,926 49,655,074 2.98 1,479,721
Hennepin Regional RR Authority 81,665,000 1,042,557 80,622,443 2.16 1,741,445
Metropolitan Council 238,225,000 148,501,870 89,723,130 1.07 960,037
1,853,880,000 194,412,990 1,659,467,010 63,817,927
65,169,932$
(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 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.
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
The percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable percentages
Overlapping Debt:
Applicable
Percentage
Governmental Unit
City of Orono, Minnesota
Direct and Overlapping Governmental Activities Debt
as of December 31, 2023
Estimated
Statistical Section (Unaudited)
145
Overlapping governments are those that coincide,Overlapping governments are those that coincide,atat least in part, with the geographic boundariespart, with the geographic boundaries of the City. This schedulethe City. This schedule
Overlapping governments are those that coincide,Overlapping governments are those that coincide,atat leastleast in part, with the geographic boundariespart, with the geographic boundaries of the City. This schedulethe City. This schedule
estimates the portionestimates the portion of the outstanding debtthe outstanding debt of those overlapping governments thatthose overlapping governments that is borne by the residents and businessesthe residents and businesses
the City. Excludes revenue and special assessment bonds.the City. Excludes revenue and special assessment bonds.
The percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable percentages The percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable percentages
180
City of Orono, Minnesota
Statistical Section (Unaudited)
Legal Debt Margin Information
Last Ten Fiscal Years
2014 2015 2016 2017
Debt Limit 72,492,057$ 72,942,051$ 75,942,705$ 81,932,428$
Total Net Debt Applicable to Limit 6,319,308 10,660,892 8,714,780 8,062,670
Legal Debt Margin 66,172,749$ 62,281,159$ 67,227,925$ 73,869,758$
Total Net Debt Applicable to the Limit
as a Percent of Debt Limit 8.72% 14.62% 11.48% 9.84%
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.
146 181
2018 2019 2020 2021 2022 2023
86,385,749$ 90,093,594$ 95,106,635$ 102,551,528$ 107,592,654$ 147,070,777$
8,705,000 5,884,077 4,842,172 17,443,799 17,390,498 17,075,257
77,680,749$ 84,209,517$ 90,264,463$ 85,107,729$ 90,202,156$ 129,995,520$
10.08% 6.53% 5.09% 17.01% 16.16% 11.61%
Taxable Market Value 4,902,359,218$
Debt Limit (3 Percent of Market Value)147,070,777$
Debt Applicable to Limit
General obligation bonds 17,594,900
Less: amount available in debt service funds (519,643)
Total Net Debt Applicable to Limit 17,075,257
Legal Debt Margin 129,995,520$
Fiscal Year
Legal Debt Margin Calculation for Fiscal Year 2020
147
Debt Limit (3 Percent of Market Value)Debt Limit (3 Percent of Market Value)147,070,777147,070,777$ $
Debt Applicable to LimitDebt Applicable to Limit
General obligation bondsGeneral obligation bonds 17,594,90017,594,900
Less: amount available in debt service fundsLess: amount available in debt service funds (519,643)
Total Net Debt Applicable to LimitTotal Net Debt Applicable to Limit 17,075,25717,075,257
Legal Debt MarginLegal Debt Margin 129,995,520129,995,520$
182
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$ 32.78 %
2016 706,460 624,253 82,207 75,000 74,044 149,044 80.85
2017 746,514 643,048 103,466 75,000 25,181 100,181 103.28
2018 714,159 818,330 (104,171) 80,000 21,480 101,480 (102.65)
2019 854,551 782,665 71,886 80,000 22,031 102,031 70.45
2020 1,254,730 883,550 371,180 80,000 20,431 100,431 3.70
2021 1,616,088 951,757 664,331 80,000 18,831 98,831 6.72
2022 2,115,650 11,504,710 965,179 85,000 17,180 102,180 9.45
2023 1,660,476 1,114,617 545,859 85,000 15,429 100,429 5.44
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
148 183
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)
2014 7,611 597,463,500$ 78,500$ 46 - 2,760 4.6 %
2015 7,785 506,281,905 65,033 46 - 2,757 2.9
2016 7,691 685,014,271 89,067 43 - 2,808 2.8
2017 8,147 724,455,244 89,923 47 - 2,790 3.3
2018 8,102 770,192,324 95,062 47 - 2,820 2.5
2019 8,284 838,995,236 101,279 47 - 2,850 2.6
2020 8,315 850,888,430 106,162 48 - 2,834 4.2
2021 8,100 859,912,200 106,162 48 - 2,850 2.3
2022 8,485 1,068,545,500 126,500 45 - 2,885 4.2
2023 8,447 1,099,312,600 135,400 45 - 2,928 3.0
Note: Information on education level was only available in 2010 census data.
Data sources
(1)Metropolitan Council Estimate in 2022 Estimated, publiclished 7/2023
(2)Based on Metropolitan Council's estimate - numbers are delayed by a year.
(3)Hennepin County average/median for non-census years.
(4)Minnesota Department of Education, as reported by ISD No. 278 (Orono).
(5)Minnesota Department of Economic Security; Hennepin County average for non-census years.
Rate (4)
Unemployment
149
Based on Metropolitan Council's estimate - numbers are delayed by a year.Based on Metropolitan Council's estimate - numbers are delayed by a year.
Hennepin County average/median for non-census years. Hennepin County average/median for non-census years.
Minnesota Department of Education, as reported by ISD No. 278 (Orono).Minnesota Department of Education, as reported by ISD No. 278 (Orono).
Minnesota Department of Economic Security; Hennepin County average for non-census years. Minnesota Department of Economic Security; Hennepin County average for non-census years.
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150 185
City of Orono, Minnesota
Statistical Section (Unaudited)
Principal Employers
Current Year and Nine Years Ago
Employees Rank Employees Rank
ISD No. 278 (Orono)410 1 22.78 %346 1 26.29 %
Woodhill Country Club 204 2 11.33 %144 3 8.23 %
Wayzata Country Club 158 3 8.78 %230 2 13.14 %
Jem Technical 124 4 6.89 %115 4 6.57 %
Springhill Country Club 121 5 6.72 %80 6 4.57 %
Otten Brothers 100 6 5.56 %98 5 5.60 %
Lunds 80 7 4.44 %75 7 4.29 %
City of Orono 63 8 3.50 %63 9 2.86 %
Culver's 50 9 2.78 %45 8 2.46 %
Trails of Orono 42 10 2.33 %- - -
Service 800 - - - 30 10 1.71 %
Morries' Automotive - - - 30 11 1.71 %
Total 1,352 75.11 % 1,256 77.43 %
Source: City of Orono and State Department of Commerce and Employers
*Total W-2's sent out, which includes part-time and seasonal employees.
2023 2014
Employment Employment
Percent Percent
of City of City
151
1,3521,352 75.11 %1,2561,256 77.4377.43
Source: City of Orono and State Department of Commerce and EmployersSource: City of Orono and State Department of Commerce and Employers
*Total W-2's sent out, which includes part-time and seasonal employees.*Total W-2's sent out, which includes part-time and seasonal employees.
186
City of Orono, Minnesota
Statistical Section (Unaudited)
Full-time Equivalent Employees by Function
Last Ten Fiscal Years
2014 2015 2016 2017
General Government 6.8 7.8 8.0 8.0
Public Safety
Police
Officers 28.0 27.0 27.0 27.0
Civilians 4.0 4.0 4.0 4.0
Fire - - - -
Code Enforcement 6.0 6.0 5.0 5.0
Public Works 4.5 4.5 4.5 4.5
Parks (1) - - - -
Water 1.5 1.5 1.5 1.5
Sewer 2.5 2.5 2.5 2.5
Storm Water 0.5 0.5 0.5 0.5
Fleet - - - -
Golf 5.0 5.0 5.0 5.0
Total 58.8 58.8 58.0 58.0
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 66.5 employees while the Prinicipal Employers schedule shows 63 due to their part time
employees included within the table above.
152
TotalTotal 58.858.8 58.858.8 58.058.0
Source: City budgets and personnel records.Source: City budgets and personnel records.
(1) Separated Parks department in 2018 due to hiring Park Supervisor at the end of 2017(1) Separated Parks department in 2018 due to hiring Park Supervisor at the end of 2017
Note: This table shows 66.5 employees while the Prinicipal Employers schedule shows 63 due to their part time Note: This table shows 66.5 employees while the Prinicipal Employers schedule shows 63 due to their part time
employees included within the table above. employees included within the table above.
187
2018 2019 2020 2021 2022 2023
8.0 8.0 7.0 7.0 8.0 9.0
30.0 30.0 30.0 29.0 33.0 29.0
4.0 4.0 4.0 4.0 4.0 4.0
- - - - - 1.0
5.0 5.0 4.8 4.0 6.0 6.0
5.0 5.0 5.0 5.0 4.0 5.0
0.5 0.5 0.5 2.3 3.5 3.5
2.5 2.5 2.5 3.3 3.0 3.0
2.5 2.5 2.5 3.0 3.0 3.0
0.5 0.5 0.5 1.2 1.0 1.0
- - - - 1.0 1.0
3.0 3.0 3.0 0.5 1.0 1.0
61.0 61.0 59.8 59.3 67.5 66.5
153
61.061.0 61.0 59.859.8 59.3 67.5 66.566.5
188
City of Orono, Minnesota
Statistical Section (Unaudited)
Operating Indicators by Function
Last Ten Fiscal Years
2014 2015 2016 2017
Public Safety
Police
Initial reports 10,990 10,056 9,320 6,462
Citations 2,437 1,495 1,929 1,509
Building/Zoning
Building permits issued 485 470 466 518
Land use applications 56 63 59 110
Water
New connections 1,036 1,023 1,036 1,041
Radio read meters - start 2004 1,036 1,010 1,024 1,029
Annual water pumped
(thousands of gallons) 96,006 95,701 96,936 108,627
Waste Water
New connections 2,218 2,238 2,243 2,256
Annual sewer flow
(thousands of gallons) (2) 190,710 201,000 211,900 173,840
Storm Water
Sweeping (centerline Miles) (1) 46 46 46 92
Drainage projects 1 1 3 3
Golf
Rounds played 10,890 14,334 11,976 11,387
Parks
Dog park pass (3) - - - 475
Sources: City department records.
(1)Historical data is based on the miles of roads that was included in each sweeping. 2017 data is
based on the miles of road that was swept in total.
(2)Data received from Metropolitan Council.
(3)Passes are issued for each year starting in November of the year prior. Lurton Dog Park opened in 2017.
Function
154
Annual sewer flowAnnual sewer flow
(thousands of gallons) (2)(thousands of gallons) (2)190,710190,710 201,000201,000 211,900211,900
Storm WaterStorm Water
Sweeping (centerline Miles) (1)Sweeping (centerline Miles) (1)4646 4646 4646
Drainage projectsDrainage projects 11 1 3
Rounds playedRounds played 10,89010,890 14,334 11,97611,976
189
2018 2019 2020 2021 2022 2023
5,875 4,997 4,496 4,582 4,094 3,124
1,675 1,331 907 1,064 1,428 1,321
535 660 442 460 425 530
81 95 77 62 71 63
1,087 1,109 1,090 1,126 1,165 1,186
1,072 1,096 1,071 1,165 1,161 1,186
108,923 106,490 131,048 161,542 160,986 149,705
2,287 2,352 2,298 2,485 2,403 2,384
195,420 219,740 234,390 111,024 163,214 238,880
46 46 48 48 48 52
7 6 6 5 3 1
7,007 7,289 16,000 13,964 14,549 15,745
546 537 512 788 799 609
155
195,420195,420 219,740219,740 234,390234,390 111,024111,024 163,214163,214 238,880238,880
4646 4646 4848 48 4848 5252
77 66 66 5 33 1
7,0077,007 7,2897,289 16,00016,000 13,96413,964 14,549 15,74515,745
190
City of Orono, Minnesota
Statistical Section (Unaudited)
Capital Asset Statistics by Function
Last Ten Fiscal Years
2014 2015 2016 2017
Public Safety
Police
Stations 1 1 1 1
Patrol units 14 14 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 23
Wells 3 3 4 4
Water plants 2 2 2 2
Maximum daily capacity
(thousands of gallons) 2,160 2,160 3,800 3,800
Sewer
Miles of sanitary sewer 47 47 47 61
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
156
33 33 44
Water plantsWater plants 22 22 22
Maximum daily capacity Maximum daily capacity
(thousands of gallons)(thousands of gallons)2,1602,160 2,160 3,8003,800
Miles of sanitary sewerMiles of sanitary sewer 4747 47 4747
Pumping stationsPumping stations 4646 46 4646
ClubhouseClubhouse 11 1 1
191
2018 2019 2020 2021 2022 2023
1 1 1 1 1 1
14 14 14 18 18 18
1 1 1 1 1 1
46 46 48 48 48 48
135 148 151 151 151 151
228 228 228 228 228 228
22 22 22 22 22 22
4 4 4 4 4 4
23 23 23 23 23 23
4 4 4 4 4 4
2 2 2 2 2 2
3,800 3,800 3,800 3,800 3,800 3,800
61 62 63 63 63 63
45 45 45 45 45 46
1 1 1 1 1 1
9 9 9 9 9 9
157
44 4 44 4 4 44
22 22 22 2 2 22
3,8003,800 3,8003,800 3,8003,800 3,8003,800 3,8003,800 3,8003,800
6161 6262 6363 63 6363 63
4545 4545 45 4545 4545 46
11 1 1 11 1 1
192
Executive Governance
Summary
Executive Governance
Summary
193
NEED DATE
Management, Honorable Mayor and City Council
City of Orono, Minnesota
We have audited the financial statements of the governmental activities, the business-type activities, each major fund and
the aggregate remaining fund information of the City of Orono, Minnesota, (the City) for the year ended
December 31, 2023. 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 June 7, 2024. Professional standards also require that
we communicate to you the following information related to our audit.
Significant Audit Findings
In planning and performing our audit of the financial statements, we considered the 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 City
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
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 a
significant deficiency, however significant deficiencies may exist that have not been identified. As described below, we
identified a deficiency in internal control that we consider to be a material weakness, as finding 2023-001.
2
City
internal control.
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
material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a
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.
194
2023-001 Material Audit Adjustments
Condition:During our audit, material adjustments were needed to correct the year-end balances for various
accounts receivable and investment balances.
Criteria:
accounting system need to agree to the underlying supporting documentation.
Cause:City staff did not correctly adjust for receivable and payable balances during the year.
Effect:
control, which could lead to a material misstatement.
Recommendation:We recommend management review the related journal entries, obtain an understanding of why
the entries were necessary and modify current procedure to ensure that future corrections are not
needed.
Management Response:
Management agrees with the finding and understands the reason the adjustments were needed. Procedures over year-
end adjustments will be reevaluated to eliminate the need for related audit adjustments in the future.
Compliance and Other Matters
misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants,
and noncompliance with which could have a direct and material effect on the financial statements. However, providing an
opinion on compliance with those provisions was not an objective of our audit. Also, in accordance with the Uniform
Guidance, we examined, on a test basis, evidence
Federal programs for the purpose of expressing an opinion on the City
compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal
programs. While our audit provides a reasonable basis for our opinion, it does not provide a legal determination on the
matters that is required to be reported in accordance with the Uniform Guidance , 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. No new accounting policies were adopted
and the application of existing policies were not changed during the year ended December 31, 2023. We noted no
transactions entered into by the governmental unit 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.
3
misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants,
and noncompliance with which could have a direct and material effect on the financial statements. However, providing an
opinion on compliance with those provisions was not an objective of our audit. Also, in accordance with the Uniform
Guidance, we examined, on a test basis, evidence
Federal programs for the purpose of expressing an opinion on the City
compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal
programs. While our audit provides a reasonable basis for our opinion, it does not pro vide a legal determination on the
195
Accounting estimates are an integral part of the financial statements prepared by management and are based on
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 included below:
calculated using the straight-line method.
allocations are also used in allocating accrued compensated absences payable.
retirement age for active employees, life expectancy, turnover, and healthcare cost trend rate.
received during the lease term.
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
-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. Management has corrected all such
misstatements. The following material misstatements detected as a result of audit procedures were corrected by
management:
Year-end balances for various accounts receivable accounts.
Investment balances needed to be adjusted to market value.
4
-sharing
multiple employer Coordinated and Police and Fire pensi on 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
196
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 au
audit.
Management Representations
We have requested certain representations from management that are included in the management representation letter
dated NEED DATE.
Management Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting matters,
principle to the City
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) (
Liability, the Schedule of Changes in Net Pension Liability
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
inquiries, the basic financial statements, and other knowledge we
obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or
provide any assurance on the RSI.
We were engaged to report on the supplementary information (combining and individual fund financial statements and
schedules), which accompany the financial statements but are not RSI. With respect to this supplementary information,
we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to
determine that the information complies with accounting principles generally accepted in the United States of America,
the method of preparing it has not changed from the prior period, and the information is appropriate and complete in
relation to our audit of the financial statements. We compared and reconciled the supplementary information to the
underlying accounting records used to prepare the financial statements or to the financial statements themselves.
We were not engaged to report on the introductory or statistical sections, which accompany the financial statements but
are not RSI. We did not audit or perform other procedures on this other information and we do not express an opinion or
provide any assurance on them.
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with
normal course of our professional relationship and our responses were not a condition to our retention.
5
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
inquiries, the basic financial statements, and other knowledge we
obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or
provide any assurance on the RSI.
We were engaged to report on the supplementary information (combining and individual fund financial statements
), 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
197
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. 100 -Accounting Changes and Error Corrections Effective: 12/31/2024
GASB Statement No. 101 -Compensated Absences Effective: 12/31/2024
GASB Statement No. 102 Certain Risk Disclosures Effective: 12/31/2025
Further information on upcoming GASB pronouncements.
* * * *
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
NEED DATE
6
convenience. We wish to thank you for the continued opportunity to be of service and for the courtesy and cooperation
us by your staff.
Minneapolis, Minnesota
198
Other Required
Reports
Other Required
Reports
199
City of Orono, Minnesota
Other Required Reports
Table of Contents
For the Year Ended December 31, 2023
Page No.
Other Required Reports
on Minnesota Legal Compliance 3
Reporting and on Compliance and Other Matters Based on
an Audit of Financial Statements Performed in Accordance
with Government Auditing Standards 4
For Each Major Program and Report on
Internal Control over Compliance Required
By the Uniform Guidance 6
Schedule of Expenditures of Federal Awards 9
Notes to the Schedule of Expenditures of Federal Awards 10
Schedule of Findings and Questioned Costs 11
Corrective Action Plan 13
2 200
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, 2023, and the related notes to the financial statements, and have issued our report thereon dated
NEED DATE.
In connection with our audit, nothing came to our attention that caused us to believe that the City failed to comply with the
provisions of the contracting and bidding, deposits and investments, conflicts of interest, public indebtedness, claims and
disbursements, miscellaneous provisions, and tax increment financing sections of the Minnesota Legal Compliance Audit
Guide for Cities, promulgated by the State Auditor pursuant to Minn. Stat. § 6.65. However, our audit was not directed
primarily toward obtaining knowledge of such noncompliance. Accordingly, had we performed additional procedures,
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
NEED DATE
3
primarily toward obtaining knowledge of such noncompliance. Accordingly, had we performed additional procedures,
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.
201
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 statementsof 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, 2023,
financial statements, and have issued our report thereon dated NEED DATE.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City's internal control over financial
reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the
purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the
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
detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in
internal control that is less severe than a material weakness, yet important enough to merit attention by those charged
with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was
not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies
and therefore, material weaknesses or significant deficiencies may exist that were not identified. We identified a certain
deficiency in internal control, described in the accompanying Schedule of Finding and Response as item 2023-001 that we
consider to be a material weakness.
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free from material
misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant
agreements, noncompliance with which could have a direct and material effect on the 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
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
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
202
Response to Finding
Government Auditing Standards
identified in our audit and described in the accompanying Schedule of Finding and Re was
not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we
express no opinion on the response.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results
report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the
Abdo
Minneapolis, Minnesota
NEED DATE
5 203
FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER
COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE
Honorable Mayor and City Council
City of Orono, Minnesota
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the City of Orono, Minnesota (the City) compliance with the types of compliance requirements described
in the OMB Compliance Supplement
programs for the year ended December 31, 2023
In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above that
could have a direct and material effect on each of its major federal programs for the year ended December 31, 2023.
Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of
America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200,
Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).
Our responsibilities under those standards
Responsibilities for the Audit of Compliance section of our report.
We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant
ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation,
and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules,
and provisions o
6
could have a direct and material effect on each of its major federal programs for the year ended December 31, 2023
Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of
America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200,
Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).
Our responsibilities under those standards
Responsibilities for the Audit of Compliance section of our report.
204
Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance
based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not
a guarantee that an audit conducted in accordance with generally accepted auditing standards, Government Auditing
Standards,and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting
material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance
requirements referred to above is considered material if there is a substantial likelihood that, individually or in the
aggregate, it would influence the judgment made by a reasonable user of the
compliance with the requirements of each major federal program as a whole.
In performing an audit in accordance with generally accepted auditing standards, Government Auditing Standards, and the
Uniform Guidance, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform
audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence
compliance requirements referred to above and performing such other
procedures as we considered necessary in the circumstances.
audit procedures that are appropriate in the circumstances and to test and report on internal control over
compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the
We are required to communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that
we identified during the audit.
Report on Internal Control Over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not
allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and
correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material
weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over
compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance
requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant
deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over
compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in
internal control over compliance, yet important enough to merit attention by those charged with governance.
Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal
control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance.
Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we
consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in
internal control over compliance may exist that were not identified.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over
compliance. Accordingly, no such opinion is expressed.
7
audit procedures that are appropriate in the circumstances and to test and report on internal control over
compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the
We are required to communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that
we identified during the audit.
Report on Internal Control Over Compliance
205
Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance
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, as of and for the year ended December 31, 2023,
issued our report thereon dated NEED DATE, which contained unmodified opinions on those financial statements. Our
audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic
financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of
additional analysis as required by the Uniform Guidance and is not a required part of the basic financial statements. Such
information is the responsibility of management and was derived from and relates directly to the underlying accounting
and other records used to prepare the basic financial statements. The information has been subjected to the auditing
procedures applied in the audit of the financial statements and certain additional procedures, including comparing and
reconciling such information directly to the underlying accounting and other records used to prepare the basic financial
statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing
standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal
awards is fairly stated in all material respects in relation to the basic financial statements as a whole.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal
control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly,
this report is not suitable for any other purpose.
Abdo
Minneapolis, Minnesota
NEED DATE
8 206
City of Orono, Minnesota
Schedule of Expenditures of Federal Awards
For the Year Ended December 31, 2023
9 207
City of Orono, Minnesota
Notes to the Schedule of Expenditures of Federal Awards
For the Year Ended December 31, 2023
1. Basis of Presentation
The accompanying schedule of expenditures of federal awards includes the federal grant activity of the City of Orono,
Minnesota (the City) under programs of the federal government for the year ended December 31, 2023. The City's
reporting entity is defined in Note 1A to the City's financial statements. The information in this schedule is presented in
accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule
presents only a selected portion of operations of the City, it is not intended to and does not present the financial position,
changes in net position or cash flows of the City.
2. Summary of Significant Accounting Policies for Expenditures
Expenditures reported on this schedule are reported on the modified accrual basis of accounting. Such expenditures are
recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost Principles for Non-Profit-
Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of
expenditures are not allowable or are limited as to reimbursement.
3. Pass-through Entity Identifying Numbers
Pass-through entity identifying numbers are presented where available.
4. Subrecipients
No federal expenditures presented in this schedule were provided to subrecipients.
5. Indirect Cost Rate
During the year ended December 31, 2023, the City did not elect to use the 10 percent de minimis indirect cost rate.
10
through entity identifying numbers are presented where available.through entity identifying numbers are presented where available.
SubrecipientsSubrecipients
No federal expenditures presented in this schedule were provided to subrecipients. No federal expenditures presented in this schedule were provided to subrecipients.
Indirect Cost RateIndirect Cost Rate
During the year ended December 31, During the year ended December 31, 20232023, the City did not elect to use the 10 percent de minimis indirect cost rate. , the City did not elect to use the 10 percent de minimis indirect cost rate.
208
City of Orono, Minnesota
Schedule of Findings and Questioned Costs
For the Year Ended December 31, 2023
11 209
City of Orono, Minnesota
Schedule of Finding and Response
For the Year Ended December, 31 2023
Finding Description
2023-001 Material Audit Adjustments
Condition:During our audit, material adjustments were needed to correct the year-end balances for various
accounts receivable and investment balances.
Criteria:
accounting system need to agree to the underlying supporting documentation.
Cause:City staff did not correctly adjust for receivable and payable balances during the year.
Effect:
control, which could lead to a material misstatement.
Recommendation:We recommend management review the related journal entries, obtain an understanding of why
the entries were necessary and modify current procedure to ensure that future corrections are not
needed.
Management Response:
Management agrees with the finding and understands the reason the adjustments were needed. Procedures over year-
end adjustments will be reevaluated to eliminate the need for related audit adjustments in the future.
12
Management agrees with the finding and understands the reason the adjustments were needed. Procedures over yearManagement agrees with the finding and understands the reason the adjustments were needed. Procedures over year
end adjustments will be reevaluated to eliminate the need for related audit adjustments in the future.end adjustments will be reevaluated to eliminate the need for related audit adjustments in the future.
210
CORRECTIVE ACTION PLAN
The following is our response to finding in the audit as of December 31, 2023
FINDING 2023-001 Material Audit Adjustment
During our audit, material adjustments were needed to correct the year-end balances for various accounts receivable and
investment balances.
Corrective Action Plan (CAP):
1. Explanation of Disagreement with Audit Finding:
There is no disagreement with the audit finding.
2. Actions Planned in Response to Finding:
Procedures over year-end adjustments will be reevaluated to eliminate the need for related audit adjustments in
the future.
3. Official Responsible for Ensuring CAP:
Maggie Jin, Finance Director, is the official responsible for ensuring corrective action.
4. Planned Completion Date for CAP:
Fiscal year end 2024.
5. Plan to Monitor Completion of CAP:
The City Administrator will monitor the completion of the corrective action.
13
Actions Planned in Response to Finding:Actions Planned in Response to Finding:
Procedures over Procedures over yearyear-end adjustments will be reevaluated to eliminate the need for related audit adjustments in end adjustments will be reevaluated to eliminate the need for related audit adjustments in
the future.the future.
Official Responsible for Ensuring CAP:Official Responsible for Ensuring CAP:
Maggie JinMaggie Jin, , Finance DirectorFinance Director, is the official responsible for ensuring corrective action., is the official responsible for ensuring corrective action.
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Date: June 24, 2024 Item: 9
Presenter: Maggie Jin, Finance Director
Section: Finance Report
Title: Property Assessment Service Contract - Hennepin County
1.Purpose:
To gain approval to use Hennepin County Assessors for assessing city properties for an indefinite
term of years, to be reviewed on a five-year cycle.
2.Background:
The City has contracted with Hennepin County for assessment services since August of 1998. The
current one-year agreement expires on July 31, 2024. The proposed agreement covers assessment
services for an indefinite term and will be used set the tax base for taxes collected in 2026 and
beyond.
Currently, 2024 assessment services are $254,000 to be paid by the City of Orono. On May 14,
2024, the Board of Hennepin County Commissioners adopted County Resolution 24-0199. This
resolution allows negotiation to be made with jurisdictions within Hennepin County with
population under 30,000 and currently under agreement with the county for local assessment
services to be performed by the County assessors at no cost to the City. Future assessment services
will be included in the County portion of property taxes and no longer paid by the City.
The County Assessor will be present at the Council Meeting to provide information.
3.Staff Recommendation:
Staff recommends continuing the partnership with Hennepin County Assessor’s office to provide
assessment services for city properties. An experienced staff with knowledge of the unique and
high quality properties allow the assessors assigned to Orono to provide excellent customer service
to our residents. As part of the County, the local assessors also have access to other assessing
expertise that the dwindling number of private assessors do not have available to them. City staff
also benefits from having the assessors in person to provide direct support to the Administration,
Finance and Planning departments.
AGENDA ITEM
COUNCIL ACTION REQUESTED
Motion to approve the attached Hennepin County Joint Powers Agreement for Assessment Services.
Exhibits
A. JPA for Assessment Services
B. County Resolution 24-0199 Executed
C. County Resolution 24-0199 Details (With Text)
D. Assessor Responsibilities Memo
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JOINT POWERS AGREEMENT FOR ASSESSMENT SERVICES
THIS JOINT POWERS AGREEMENT (“Agreement”) is made and entered into
by and between the County of Hennepin, a body politic and corporate under the laws of the
State of Minnesota (the “County”), and the City of Orono, a municipal corporation under the
laws of the State of Minnesota (the “City”).
RECITALS
1. WHEREAS, Pursuant to Minn. Stat. § 471.59, subdivision 1, the parties to this
Agreement agree to exercise certain powers on behalf of the other or to cooperate with
respect to their powers, to the extent and according to the terms provided herein;
2. WHEREAS, Minnesota Statutes Section 273.072 authorizes the County and any city or
town lying wholly or partially within the County of Hennepin and constituting a separate
assessment district to enter into an agreement, pursuant to Minnesota Statutes Section
471.59, for the provision of assessment services in the city or town by the county assessor;
3. WHEREAS, the City lies wholly within the County of Hennepin and constitutes a
separate assessment district;
4. WHEREAS, the City desires the County to perform property tax assessments on behalf
of the City and the County agrees to do so; and
5. WHEREAS, the City is willing to share all information, records, data, reports, etc.,
necessary to allow the County to carry out its responsibilities under this Agreement.
NOW, THEREFORE, for mutual consideration, the receipt and sufficiency of which
is hereby acknowledged by the parties, the parties agree as follows:
AGREEMENT
1. Recitals. The foregoing recitals are incorporated in this Agreement.
2. Purpose. This Agreement describes the duties and responsibilities of each of the parties
related to the provision of assessment services to the City by the County.
3. Indefinite Term. This Agreement shall become effective on the Effective Date (as
defined in section 19) and shall, unless otherwise terminated in accordance with the
provisions hereof, continue in effect for an indefinite term of years.
4. Termination. This Agreement may be terminated by either party, with or without cause,
upon ninety (90) days’ written notice.
5. County Responsibilities.
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5.1 The County shall perform, at no cost to the City, property assessments for the City
as required by Minnesota Law. The City agrees that the County may perform the
assessment services as it deems appropriate. County is responsible for performing
the assessment services in compliance with Minnesota Law.
6. City Responsibilities:
6.1 The City shall provide to the County, at no cost, all information, records, data,
reports, etc., and the personnel required to transmit the same, as are necessary to
allow the County to carry out its responsibilities hereunder, and the City agrees to
cooperate in good faith with the County in carrying out the work under this
Agreement.
6.2 The City shall provide to the County, at no cost, office space, and office furniture
required by the County. Specifically, the City agrees to furnish, without charge,
secured office space as needed by the County at appropriate places in the City's
offices. Such office space shall be sufficient in size to accommodate reasonably two
(2) appraisers and any furniture placed therein. The office space shall be available
for the County's use upon request during typical business hours, and during all such
hours the County shall be provided with levels of heat, air conditioning and
ventilation as are appropriate for the seasons.
7. Non-Discrimination. In accordance with Hennepin County Affirmative Action Policy
and the County Commissioners' policies against discrimination, no person shall be
excluded from full employment rights or participation in or the benefits of any program,
service or activity on the grounds of race, color, creed, religion, age, sex, disability,
marital status, sexual orientation, public assistance status, ex-offender status or national
origin; and no person who is protected by applicable Federal or State laws, rules and
regulations against discrimination shall be otherwise subjected to discrimination.
8. Relationship of Parties; Employees. It is agreed that nothing herein contained is
intended or should be construed in any manner as creating or establishing the relationship
of joint venturers or co-partners between the parties hereto or as constituting the City as
the agent, representative or employee of the County for any purpose or in any manner
whatsoever.
It is further agreed that in the performance of this Agreement, no employee of the City
shall be considered an employee of the County, and no employee of the County shall be
considered an employee of the City. Each party is responsible for any and all
compensation, rights or benefits of any kind owing to its own employees, including
claims pursuant to the Workers’ Compensation Act.
9. Indemnification.
9.1 City: The City agrees that it will defend, indemnify and hold the County, its elected
officials, officers, agents, employees and duly authorized volunteers harmless from
any and all liability (statutory or otherwise) claims, suits, damages, judgments,
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3
interest, costs or expenses (including reasonable attorney’s fees, witness fees and
disbursements incurred in the defense thereof) resulting from or caused by the
negligent or intentional acts or omissions of the City, its officers, agents,
contractors, employees or duly authorized volunteers in the performance of the
responsibilities provided by this Agreement. The City’s liability shall be governed
by Minn. Stat. Chapter 466 and other applicable law, rule and regulation, including
common law.
9.2 County: The County agrees that it will defend, indemnify and hold the City, its
elected officials, officers, agents, employees and duly authorized volunteers
harmless from any and all liability (statutory or otherwise) claims, suits, damages,
judgments, interest, costs or expenses (including reasonable attorney’s fees, witness
fees and disbursements incurred in the defense thereof) resulting from or caused by
the negligent or intentional acts or omissions of the County, its officers, agents,
contractors, employees or duly authorized volunteers in the performance of the
responsibilities provided by this Agreement. The County’s liability shall be
governed by Minn. Stat. Chapter 466 and other applicable law, rule and regulation,
including common law. Notwithstanding the foregoing, the City’s exclusive remedy
for any violation of this Agreement by the County is specific performance of the
Agreement.
10. Dispute Resolution. The parties will use a dispute resolution process for any unresolved
dispute between the parties before exercising any legal remedies. The dispute resolution
process is a three-level dispute resolution ladder that escalates a dispute. At each level of
the dispute resolution process, the parties’ representatives will meet and explore
resolution until either party determines that effective resolution is not possible at the
current level and notifies the other party that the process is elevated to the next level. The
parties designate the following dispute resolution representatives: Level 1: County
Assessor and City Administrator; Level 2: Assistant County Administrator Resident
Services and City Administrator; Level 3: County Administrator and City Administrator.
The parties will complete the dispute resolution process in good faith before resorting to
any other legal process or remedy.
11. Force Majeure. If a force majeure event occurs, neither party is responsible for a failure
to perform or a delay in performance due to the force majeure event. A force majeure
event is an event beyond a party’s reasonable control, such as unusually severe weather,
fire, floods, other acts of God, labor disputes, acts of war or terrorism, or public health
emergencies.
12. Records. All records kept by the County and City with respect to the provided hereunder
are subject to examination by representatives of each party. All data collected, created,
received, maintained or disseminated for any purpose by the County and City under this
Agreement are governed by Minnesota Statutes, Chapter 13 (“Act”), and the Minnesota
Rules implementing the Act.
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13. Audit. Under Minnesota Statutes, Section 16C.05, subdivision 5, the parties agree that
the books, records, documents, and accounting procedures and practices relevant to this
Agreement are subject to examination by either party and the state auditor or legislative
auditor, as appropriate, for at least six years from the end of this Agreement.
14. Notice. Any notice or demand, which may or must be given or made by a party hereto,
under the terms of this Agreement or any statute or ordinance, shall be in writing and
shall be sent registered or certified mail to the other party addressed as follows:
TO CITY: City Administrator
City of Orono
2750 Kelley Parkway
Orono, MN 55356
TO COUNTY: Hennepin County Administrator
2300A Government Center
Minneapolis, MN 55487
copies to: County Assessor
Hennepin County
2103A Government Center
Minneapolis, MN 55487
Any party may designate a different addressee or address at any time by giving written
notice thereof as above provided. Any notice, if mailed, properly addressed, postage
prepaid, registered or certified mail, shall be deemed dispatched on the registered date or
that stamped on the certified mail receipt and shall be deemed received within the second
business day thereafter or when it is actually received, whichever is sooner. Any notice
delivered by hand shall be deemed received upon actual delivery.
15. Amendment. Any modifications to this Agreement must be in writing as a formal
amendment and executed by both parties.
16. Entire Agreement. This Agreement is the entire agreement between the parties and
supersedes all oral agreements and negotiations between the parties relating to this
Agreement. All exhibits and attachments to this Agreement are incorporated into the
Agreement. If there is a conflict between the terms of this Agreement and any of the
exhibits, the Agreement governs.
17. Severability; Waiver. The provisions of this Agreement are severable. If a court finds
any part of this Agreement void, invalid, or unenforceable, it will not affect the validity
and enforceability of the remainder of this Agreement. A waiver by a party of any part of
this Agreement is not a waiver of any other part of the Agreement or of a future breach
of the Agreement.
18. Counterparts. This Agreement may be executed in multiple counterparts, all of which
when taken together shall compromise one agreement. Delivery of an executed
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counterpart of a signature page of this Agreement by facsimile transmission or electronic
transmission (e.g., ‘pdf’ or ‘tif’) shall be effective as delivery of a manually executed
counterpart of this Agreement.
19. Effective Date. This Agreement will be effective on August 1, 2024. Each party is
signing this Agreement on the date stated below that party’s signature.
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COUNTY BOARD AUTHORIZATION
Reviewed by the County Attorney’s COUNTY OF HENNEPIN
Office STATE OF MINNESOTA
______________________________ By: _____________________________________
Assistant County Attorney Chair of Its County Board
Date: ________________________
ATTEST:_________________________________
Deputy/Clerk of County Board
Date:_____________________________________
By: ______________________________________
County Administrator
Date:_____________________________________
By: ______________________________________
Assistant County Administrator
- Residential Services
Date:
_____________________________________
Recommended for Approval
By: _______________________________
County Assessor/Director,
County Assessor Department
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CITY OF ORONO
By: _________________________________
Dennis Walsh, Mayor
By: _________________________________
Adam Edwards, City Administrator
219
300 South Sixth Street
Minneapolis, MN
55487-0240
RESOLUTION
Board of Hennepin County Commissioners
RESOLUTION: 24-0199
At a meeting of the Board of Hennepin County Commissioners on 5/14/2024, a motion was
made by Marion Greene, seconded by Kevin Anderson, that this Resolution be adopt. The
motion passed.
BE IT RESOLVED, that the County Administrator is directed to negotiate joint powers agreements
with jurisdictions within Hennepin County with populations under 30,000 and jurisdictions currently
under agreement with the county for local assessment services to be performed by the Hennepin
County Assessor at no cost to these jurisdictions.
RESOLUTION ADOPTED ON 5/14/2024
The question was on the adoption of the resolution with the votes as follows:
Aye:6 Commissioner Fernando, Commissioner Greene, Commissioner
Lunde, Commissioner Conley, Commissioner Goettel, and
Commissioner Anderson
Maria Rose
Maria Rose
Page 1 Printed on 5/15/24 Hennepin County, Minnesota
220
300 South Sixth Street
Minneapolis, MN
55487-0240
Hennepin County, Minnesota
Legislation Details (With Text)
File #: Version:124-0199
Status:Type:Resolution Approved
File created:In control:4/26/2024 Board of Hennepin County Commissioners
On agenda:Final action:4/30/2024 5/14/2024
Title:Joint Powers Agreements with the several jurisdictions for assessment services to be performed by
Hennepin County
Sponsors:
Indexes:
Code sections:
Attachments:1. RESOLUTION
Action ByDate Action ResultVer.
Board of Hennepin County
Commissioners
5/14/2024 1
Resident Services Committee5/7/2024 1
Item Description:
Joint Powers Agreements with the several jurisdictions for assessment services to be performed by Hennepin
County
Resolution:
BE IT RESOLVED,that the County Administrator is directed to negotiate joint powers agreements with
jurisdictions within Hennepin County with populations under 30,000 and jurisdictions currently under
agreement with the county for local assessment services to be performed by the Hennepin County Assessor at
no cost to these jurisdictions.
Background:
For more than 50 years, Hennepin County has been contracting with cities to provide local assessing services.
These contracts have required cities to pay the county to perform this local assessor work. The first joint
powers agreement between a city and the county began in 1972. Hennepin County has had a long-term
strategy of contracting with cities to perform local assessing to ensure accuracy, efficiency, and equitability
across all jurisdictions.
Over the past several years, Hennepin County has significantly increased the number of cities with whom it
contracts for assessing services. Currently, 34 of 45 cities contract with the county either wholly or partially for
these functions, with 33 of the contracts expiring on July 31, 2024. In addition, the county is statutorily
responsible for the assessments of the Minneapolis/St. Paul Airport and Fort Snelling. These 34 cities
collectively pay the county approximately $5.1 million in 2024 for these services.
This resolution directs the county to offer a joint powers agreement for local assessing services to cities with
populations of 30,000 or less and those currently under current contract with the county at no cost to these
cities beginning with the 2025 assessment. By the county providing this service at no cost to these cities, this
will reduce the city property tax levy obligations for these cities by $5.1 million collectively. The county
assessor’s 2025 budget will reflect an increase of $5.1 million from the county property tax levy to offset this
loss of contract revenue.
Hennepin County, Minnesota Printed on 5/20/2024Page 1 of 2
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File #:24-0199,Version:1
State law authorizes counties to perform these local assessor obligations in cities with a population less than
30,000 at county cost, Minn. Stat. §§ 273.052 and 273.053; and authorizes counties to contract with cities to
perform these obligations if these cities choose to contract with the county. Minn. Stat. §273.072.
The joint powers agreements will be perpetual agreements and highlight the services and responsibilities to be
provided by the county assessor as required by law. These joint powers agreements will come forward in a
separate board action request later this year.
Recommendation from County Administrator: Recommend Approval
Hennepin County, Minnesota Printed on 5/20/2024Page 2 of 2
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Hennepin County Assessor’s Office
300 S. 6th St. – MC213, Minneapolis, MN 55487
612-348-3046 | hennepin.us
Memo
To: City Managers, City Administrators, City Clerks, Finance Directors
From: Joshua Hoogland, Hennepin County Assessor
Date: 6/12/2024
Re: Duties and responsibilities of assessors
Duties and responsibilities performed by the Hennepin County Assessor’s Office
When choosing the county assessor to perform these functions, a lead appraiser is assigned to
the city for day-to-day duties and response to taxpayers and city officials. Duties and
responsibilities when choosing the county assessor’s office to perform assessing services are
listed below.
• Actually view all real and personal property within a 5 year period, as required by law.
• Review and appropriately value all new construction, additions, and renovation each
year.
• Adjust estimated market values on those properties not physically inspected as deemed
necessary per sales ratio analysis.
• Analyze sales, revalue all properties each year in accordance with the real estate market
and prepare the initial assessment roll.
• Print and mail valuation notices.
• Respond to taxpayers regarding assessment or appraisal problems or inquiries in a
timely fashion.
• Serve as an assessment resource to taxpayers and city officials.
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• Conduct valuation reviews prior to Board of Review or Open Book Meetings, as deemed
relevant by the City – approximate dates: March 1 through May 15.
• Attend Board of Review or conduct Open Book Meeting. Prepare all necessary review
appraisals. Approximate dates: April 1 – May 31.
• Maintain an updated property file – current values, classification data and characteristic
data.
• Prepare divisions and combinations as required by plats or other parcel changes.
• Administer the abatement process pursuant to Minn. Stat. §375.192.
• Prepare appraisals; defend and/or negotiate all Tax Court cases.
• Provide all computer hardware and software applications necessary to complete
contracted services.
• Process all homestead and special program applications.
Contact
Hennepin County Assessor
Joshua Hoogland
(612) 348-8853
joshua.hoogland@hennepin.us
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Date: June 24, 2024 Item: 10
Presenter: Adam Edwards, City Administrator / Engineer
Section: City Administrator/Engineer Report
Title: Correspondence with City of Long Lake Fire Service from Orono Fire
Department.
1.Purpose:
The purpose of this item is to discuss potential offers of fire service to the City of Long Lake.
2.Background:
Over the past several weeks the cities have had several exchanges with one another, constituents
and the media as well as a third round of mediation all to no avail. In order to get things
progressing and try and solve some of the disagreements between the two cities elected officials,
the legal committee recommends Orono make an overture of good will via an offer of long term
support for fire services to Long Lake.
3.Staff Recommendation:
I recommend council discuss possible offers to Long Lake. A draft letter is attached for
consideration.
AGENDA ITEM
COUNCIL ACTION REQUESTED
Move to approve correspondence with Long Lake.
Exhibits
240620-Draft_Letter_to_Long_Lake_on_Free_Fire_Service (1).docx
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CITY OF ORONO
2750 K ELLEY P ARKWAY ,O RONO ,M INNESOTA 55356
www.oronomn.gov
June 24, 2024
Long Lake City Council VIA EMAIL: sweske@longlakemn.gov
City of Long Lake
450 Virginia Avenue, PO Box 606
Long Lake, MN 55356
Dear Long Lake City Council,
As a follow up to our letter of May 13th, we would like to provide an offer of a future fire service
partnership. The offer will allow the citizens of Long Lake to reap the benefits of the new Orono Fire
Department (OFD) service model and address any budget or tax impact that Long Lake will face due to
the end of the existing fire service contract at the end of 2025.
The basic outline of the proposed offer is:
1.The City of Orono will provide fire service to the City of Long Lake at no cost for a period of 20
years. This is estimated at a $150,000 / per year value to Long Lake.There would be further options for
extension periods for a fee based on an 1/3 Property value, 1/3 population and 1/3 service call calculation.
2.The City of Long Lake will agree to sell or lease its 50% interest in the Willow Drive Fire Station
to the City of Orono
a.If selling,the Orono offer would be for 50% of the appraised value.
b.If leasing,Orono would pay Long Lake $20,000 per year for 20 years. With options for
additional periods of service at $70,000 per year.
3.OFD would provide service to Long Lake at the end of the current contract, January 1, 2026 after
a period of orderly transition throughout 2025. During this transition period:the two departments would
work and train together;the OFD duty crews would be available to respond throughout the OFD and
Long Lake Fire Department (LLFD)service area;and the City of Orono would welcome any LLFD
firefighter who wish to continue serving their communities to apply for a position on the OFD.
If this outline is acceptable for the Long Lake City Council, please let us know by July 31, 2024. The
next steps would be to direct our respective staffs to begin the process of working through the details of
the agreement.
Regardless of your response,we remain enthusiastic about the opportunity to collaborate and address
shared challenges in ways that serve the mutual interests of both communities. We look forward to your
response.
Respectfully,
On behalf of the Orono City Council
Denny Walsh, Mayor
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Date: June 24, 2024 Item: 11
Presenter: Adam Edwards, City Administrator / Engineer
Section: Council Committee Reports
Title: Council Committee Reports
1.Purpose:
The purpose of the agenda item is for the Orono council members to update one another on recent
council committee meetings.
2.Last Meeting:
The following Committee meetings occurred since the last Council meeting.
a. The Communications Committee met on June 20th.
3.Members:
A. Communications Committee.
Council Members. Denny Walsh & Maria Veach
City Staff Members. Adam Edwards
AGENDA ITEM
COUNCIL ACTION REQUESTED
Discussion Item - no formal action required.
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Date: June 24, 2024 Item: 12
Presenter: Adam Edwards, City Administrator / Engineer
Section: Closed Session
Title: Closed session to discuss Long Lake v. Orono litigations
1.Purpose:
The City Council may close the meeting as permitted by Minn. Stat. §13D.05 subd.3(c)(3) to hold
a confidential, attorney-client privileged discussion of legal rights and remedies, potential legal
action, and strategy regarding the Long Lake v. Orono litigation.
2.Staff Recommendation:
None
AGENDA ITEM
COUNCIL ACTION REQUESTED
None
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