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HomeMy WebLinkAbout04-22-2024 Agenda Packet AGENDA CITY COUNCIL WORK SESSION April 22, 2024 - 6:00 PM Lakeville City Hall, Marion Conference Room Members of the public can participate in person at the Lakeville City Hall, Marion Conference Room, 20195 Holyoke Avenue. Members of the public may join the meeting via Teams Meeting, Meeting ID: 280 091 545 848 or by calling Toll Number 1-323- 433-2142; Conference ID: 678 432 13#. The mayor will allow for public comments and questions at the appropriate time. The City Council is provided background information for agenda items in advance by staff and appointed commissions, committees, and boards. Decisions are based on this information, as well as City policy, practices, input from constituents, and a council member’s personal judgment. 1. Call to order, moment of silence and flag pledge 2. Citizen Comments 3. Discussion Items 6:05 p.m. a. Fire Station Study Michael Meyer 6:50 p.m. b. Franchise Fees Courtney Miller, Julie Stahl 7:35 p.m. c. Local Preference in Contracting Allyn Kuennen 7:55 p.m. d. 2024A Debt Issuance Julie Stahl 8:10 p.m. e. 2023 4th Quarter Financial Report - General Fund Julie Stahl 4. Items for Future Discussion 5. Committee/ City Administrator Updates 6. Adjourn Page 1 of 95 Date: 4/22/2024 Fire Station Study Proposed Action Staff is seeking direction regarding fire stations to serve our community. Overview At the October 2023 City Council work session, staff presented several options regarding the renovation of the existing or the construction of new fire stations to prepare the department for future staffing of stations. Staff has continued to work through the timing, funding and construction of these improvements. Attached are Options D3 and D4. The renovations of FS4 were completed in the Spring 2024 to provide sleeping quarters for 24-hour staffing and the six full-time firefighters hired in March. The temp renovation of FS1 is scheduled to be completed in the Fall of 2024 to provide sleeping quarters for 24-hour staffing and the next six full-time firefighters to be hired in early 2025. Supporting Information 1. 4.22.24 Fire Station Recommendations 2. FD Options D3 and D4 3. Station Response Maps 4. FS2 Design 5. FS5 Design 6. LFD Study - Council Presentation 10-10-23 Financial Impact: $ Budgeted: No Source: Envision Lakeville Community Values: Safety Throughout the Community Report Completed by: Michael Meyer Page 2 of 95 City of Lakeville Memorandum To: Mayor and City Council Members Justin Miller, City Administrator From: Mike Meyer, Fire Chief Copy:Todd Sellner, Assistant Fire Chief Allyn Kuennen, Assistant City Administrator Date: April 22, 2024 Subject: Review Fire Station Options D3 and D4 At the October 2023 City Council work session staff presented several options regarding the renovation of the existing or the construction of new fire stations to prepare the department for future staffing of stations. Staff has continued to work through the timing, funding and construction of these improvements. Attached are Options D3 and D4. The renovations of FS4 were completed in the Spring 2024 to provide sleeping quarters for 24-hour staffing and the six full-time fire fighters hired in March. The temp renovation of FS1 is scheduled to be completed in the Fall of 2024 to provide sleeping quarters for 24-hour staffing and the next six full-time fire fighters to be hired in early 2025. Option D3 Proposes the Following: •Purchase new land at the Dodd and Cedar Avenue area and construct a new “Station 5” (see attached design) that would serve the areas previously served by FS 2 and 4. This would provide the ability for FS 2 and 4 to be eliminated. •At this point the city could pause the full renovation of FS 3 and 1, while staff determines the full effect of the new “Station 5” on the future needs of FS 3 and 1. •If full renovations of FS 3 and 1 is needed, they could be completed in 2027 and 2028. •The cost of Option D3 which includes renovation FS 1, 3 and 5 is estimated to be between $60.4 and $68.3 million. Option D3 Pros: •Flexible Space: not limited by land/footprint, providing room to account for future needs. •Central location: positioned at Cedar and Dodd, offering easy access to north and southbound Cedar, and potentially east and westbound 179th Street. •Long-Term Planning: designed to meet the long-term needs with ample space for ambulance/Allina and future growth. •The potential of Allina moving their base from Apple Valley to Lakeville. •Potential Revenue: sale of FS 2 land could offset some costs. Page 3 of 95 •Allows for the reduction of fire stations from three to four and associated equipment. Option D3 Cons •Land Purchase Required: acquisition of land is necessary. •Higher Construction Costs: construction of a larger station may incur higher costs. •Longer response times to eastern border of city limits. •Would need to sell or find a reuse for Stations 2 and 4. Option D4 Proposes the Following: •Demo and reconstruct FS2 beginning in 2025 with completion in 2026 (see attached design). •Fully renovate and expand FS3 in 2027. (If this option is considered, do we do both FS2 and FS3 as one construction project) •Fully renovate and expand FS1 in 2028. •With the full renovation of FS 1, 2 and 3 would allow the expansion of their service areas to eliminate the need for FS4 by 2029. (FS4 would be used as a temp location while FS 1, 2 and 3, are renovated). •The cost of Option D4 is estimated to be between $51.6 and $59.6 million. Option D4 Pros: •Cost Effective: rebuilding on the current property limits costs. •Community Proximity: station remains in a residential area, ensuring proximity to POC firefighters. •Allows for the reduction of fire stations from three to four and associated equipment. •Maintains desired response times to eastern border of city limits. •Eliminates the need for temp renovation at FS3. •Allows for the reduction of fire stations from three to four and associated equipment. Option D4 Cons: •Accessibility Challenges: current roundabout configuration limits access, particularly for west bound traffic. •Operational Disruption: maintaining operational capacity during construction would be very challenging. Would need to consider housing equipment temporarily out of the CMF/FS4. •Limited Future Growth: space constraints may limit the station’s ability to meet the future community needs. •Space Limitation: Limited space for ambulance/Allina. •Cost Implications: remodeling Station 1 to accommodate administrative offices will increase costs. Exhibits: Page 4 of 95 •Option D3 •Option D4 •Response maps (FS 1, 3, & 5 (D3) and FS 1, 2, & 3 (D4)) •FS2 Design •FS5 Design •October 2023 CC Work Session Presentation Page 5 of 95 Page 6 of 95 Page 7 of 95 Response Maps Station 5 (Cedar & 179th) Page 8 of 95 Response Maps Station 2 (Dodd & Flagstaff) Page 9 of 95 Page 10 of 95 Page 11 of 95 Page 12 of 95 Page 13 of 95 October 23, 2023 Lakeville Fire Department Facility Study Quinn Hutson, AIA – Principal B rooke Jacobson, AIA – Principal Page 14 of 95 Who We Are •F ull service, mid-sized firm •50+ years of experience •Leaders in public safety design •Strong design; quality work throughout •Engaged representation Page 15 of 95 CNH ARCHITECTS Information Gathering ›Staff interviews ›Site & Building review ›City ordinance ›Fire station design standards Page 16 of 95 CNH ARCHITECTS Station 1 - Holyoke 1985Built 1995, 2012Remodeled 38 yearsAge 11,760 SFTotal Area 4 apparatus bays (2 back-in)Apparatus Page 17 of 95 CNH ARCHITECTS Station 2 - Dodd 1976Built 1985, 1991, 2003Remodeled 47 yearsAge 5,760 SFTotal Area 4 apparatus bays (3 back-in)Apparatus Page 18 of 95 CNH ARCHITECTS Station 3 - Kenrick 1988Built N/ARemodeled 35 yearsAge 5,341 SFTotal Area 2 apparatus bays (1 back-in)Apparatus Page 19 of 95 CNH ARCHITECTS Station 4 2002Built 2012Remodeled 21 yearsAge 12,632 SFTotal Area 3 apparatus bays (1 back-in)Apparatus Page 20 of 95 Stations 1 - 4 Existing Conditions Page 21 of 95 Firefighter Health Does Not Meet Need For: ›Carcinogen separation ›Vehicle exhaust extraction Page 22 of 95 Firefighter Health Does Not Meet Need For: ›Adequate decontamination ›Separate turnout gear space Page 23 of 95 Firefighter Health Does Not Meet Need For: ›Mental health support ›Indoor / outdoor fitness space Page 24 of 95 Firefighter Health Does Not Meet Need For: ›Lack of dorms ›Controlled lighting transitions Page 25 of 95 Safety Does Not Meet Need For: ›Drive-through bays ›Separation of apparatus & public traffic Page 26 of 95 Safety Does Not Meet Need For: ›Station design Best Practices ›Current building codes ›Sufficient clearance around apparatus Page 27 of 95 Training Does Not Meet Need For: ›Ground ladder training/evolutions ›Hose advancement/stair evolutions Page 28 of 95 Training Does Not Meet Need For: ›Confined space rescue ›Search + rescue maze Page 29 of 95 Training Does Not Meet Need For: ›High rise training ›Wall/floor breach Page 30 of 95 Training Does Not Meet Need For: ›Advanced technical rescue (rope rescue/rappelling) ›Alarm panel/sprinkler system Page 31 of 95 Shortage of Space ›Does not allow for all current & future needs ›No flexibility incorporated for current uses Page 32 of 95 Shortage of Space ›Site & building not functionally organized ›Inefficient operational flow Page 33 of 95 Sustainability Does not meet current LEED strategies ›Low-efficiency mechanical systems ›Lighting not fully LED or controlled ›Poor thermal exterior envelope ›No stormwater treatment ›Poor indoor air quality CNH ARCHITECTS High energy use Page 34 of 95 Station Options Page 35 of 95 Station 1 – Option 1 Apparatus/Training Decontamination Support Public Station Offices Administration Residence Common Circulation Existing Building Footprint First Floor Second Floor Page 36 of 95 Station 1 – Option 2 Proposed Site Layout CNH Architects Station 1 – Option 1 Firefighter Parking Parking County Rd 50 H o l y o k e A v e Page 37 of 95 Station 1 – Option 2 First Floor S econd Floor Apparatus/Training Decontamination Support Public Station Offices Administration Residence Common Circulation Page 38 of 95 Station 1 – Option 2 Proposed Site Layout CNH Architects Station 1 – Option 2 CNH Architects Firefighter Parking Parking County Rd 50 H o l y o k e A v e Page 39 of 95 Station 2 First Floor Second Floor Apparatus/Training Decontamination Support Public Station Offices Administration Residence Common Circulation Page 40 of 95 Station 1 – Option 2 Proposed Site Layout CNH Architects Station 2 CNH ArchitectsCNH Architects Parking F l a g s t a f f A v e W Page 41 of 95 Station 3 – Option 1 First Floor Second Floor Apparatus/Training Decontamination Support Public Station Offices Administration Residence Common Circulation Existing Building Footprint Page 42 of 95 Station 1 – Option 2 Proposed Site Layout CNH Architects Station 3 – Option 1 CNH ArchitectsCNH ArchitectsCNH Architects Parking Firefighter Parking Page 43 of 95 Station 3 – Option 2 First Floor Second Floor Apparatus/Training Decontamination Support Public Station Offices Administration Residence Common Circulation Page 44 of 95 Station 1 – Option 2 Proposed Site Layout CNH Architects Station 3 – Option 2 CNH ArchitectsCNH ArchitectsCNH ArchitectsCNH Architects Parking Firefighter Parking Page 45 of 95 Station 4 First Floor Second Floor Apparatus/Training Decontamination Support Public Station Offices Administration Residence Common Circulation Existing Building Footprint Page 46 of 95 Station 1 – Option 2 Proposed Site Layout CNH Architects Station 4 CNH ArchitectsCNH ArchitectsCNH ArchitectsCNH ArchitectsCNH Architects 185 th St W Firefighter Parking Page 47 of 95 Combined Station First Floor S econd Floor Apparatus/Training Decontamination Support Public Station Offices Administration Residence Common Circulation Page 48 of 95 Station 1 – Option 2 Proposed Site Layout CNH Architects Combined Station CNH ArchitectsCNH ArchitectsCNH ArchitectsCNH ArchitectsCNH ArchitectsCNH Architects Parking Firefighter Parking Page 49 of 95 Cost Estimates – Short-Term Station 2 $84,100Hard Cost $2,523Occupied Facility / Phasing Factor $86,623Sub-total $8,662Contingency (10%) $95,285Total Cost Prices shown above are as of August 1, 2023. Constru ction cost inflation should be added to the project hard costs above from the date listed to projected project construction midpoint at a rate of 5% per year. Station 1 $45,440Hard Cost $1,363Occupied Facility / Phasing Factor $46,803Sub-total $4,680Contingency (10%) $51,484Total Cost Page 50 of 95 Cost Estimates – Short-Term Station 4 $75,975Hard Cost $2,279Occupied Facility / Phasing Factor $78,254Sub-total $7,825Contingency (10%) $86,080Total Cost Prices shown above are as of August 1, 2023. Constru ction cost inflation should be added to the project hard costs above from the date listed to projected project construction midpoint at a rate of 5% per year. Station 3 $75,600Hard Cost $2,268Occupied Facility / Phasing Factor $77,868Sub-total $7,787Contingency (10%) $85,655Total Cost Page 51 of 95 Station 1 – Option 2 $16,533,740Hard Cost $992,024Phasing Factor $2,357,106Soft Cost $19,882,870Sub-total $1,988,287Contingency (10%) $21,871,157Total Cost Cost Estimates Station 1 - Option 1 $11,622,700Hard Cost $697,362Phasing Factor $2,043,515Soft Cost $14,363,577Sub-total $1,436,358Contingency (10%) $15,799,935Total Cost Prices shown above are as of August 1, 2023. Constru ction cost inflation should be added to the project hard costs above from the date listed to projected project construction midpoint at a rate of 5% per year.Page 52 of 95 Cost Estimates Station 2 $14,350,530Hard Cost $861,032Phasing Factor $2,257,025Soft Cost $17,468,587Sub-total $1,746,859Contingency (10%) $19,215,445Total Cost Prices shown above are as of August 1, 2023. Constru ction cost inflation should be added to the project hard costs above from the date listed to projected project construction midpoint at a rate of 5% per year.Page 53 of 95 Station 3 – Option 2 $13,856,498Hard Cost $0Phasing Factor $2,299,665Soft Cost $16,156,163Sub-total $1,615,616Contingency (10%) $17,771,780Total Cost Cost Estimates Station 3 – Option 1 $12,042,400Hard Cost $481,696Phasing Factor $2,024,808Soft Cost $14,548,904Sub-total $1,454,890Contingency (10%) $16,003,794Total Cost Prices shown above are as of August 1, 2023. Constru ction cost inflation should be added to the project hard costs above from the date listed to projected project construction midpoint at a rate of 5% per year.Page 54 of 95 Combined Station $19,995,110Hard Cost $0Phasing Factor $2,910,007Soft Cost $22,905,117Sub-total $2,290,512Contingency (10%) $25,195,629Total Cost Cost Estimates Station 4 $10,968,950Hard Cost $658,137Phasing Factor $2,203,047Soft Cost $13,830,134Sub-total $1,383,013Contingency (10%) $15,213,147Total Cost Prices shown above are as of August 1, 2023. Constru ction cost inflation should be added to the project hard costs above from the date listed to projected project construction midpoint at a rate of 5% per year.Page 55 of 95 Study Recommendations ›Short-Term Fix: Remodel Station 4, then Station 1 ›Stations 2 & 4: Combined all new station approach ›Station 1: Addition and remodel approach ›Station 3: Addition and remodel approach C NH ARCHITECTS Page 56 of 95 Questions South Metro Fire Department Assessment Study Page 57 of 95 Date: 4/22/2024 Franchise Fees Proposed Action Staff recommends adoption of the following motion: No formal action required. Staff seeks Council direction on further action. Overview At the February work session, staff presented information on franchise fees to the City Council. At that time, the Council reviewed the information, including franchise fee rate structures and potential funding targets. Since that time, staff complied additional information from the utility companies that provides a clearer picture of possible revenues. Under Minnesota Statute 216B.36, cities can impose a fee on utility companies that use the public rights-of-way to deliver service. The City can determine the amount, structure, and use of franchise fees. Generally, they are structured as a flat rate per utility account, or a percentage of consumption used by each utility account. In Minnesota, most franchise fees are flat rates. The information included in this report reflects the flat rate approach, since it is not susceptible to energy price and usage patterns, allowing the revenues to be more predictable. Lakeville currently has franchise agreements with all four utility providers; CenterPoint Energy, Minnesota Energy Resources Company ("MERC"), Xcel Energy, Inc. ("Xcel Energy"), and Dakota Electric Association, that allow franchise fees to be implemented. Page 58 of 95 What Other Cities Collect Utility Franchise Fees? Below is a table that shows Lakeville's comparable market cities and their franchise fee rate structures. Some uses of funds include pavement management, sustainability, and trail/park maintenance. Electric and Gas Accounts There are currently 28,858 residential electric accounts, 26,792 residential gas accounts, 2,107 commercial electric accounts, and 1,226 commercial gas accounts. The table below shows several different monthly rate amounts and possible annual revenues. Page 59 of 95 Market Value Data on Exempt Properties Lakeville’s total Market Value for tax year 2024 is $13,841,264,700 – of which, $603,028,400 (4.4%) is exempt from Property Taxes. Exempt Properties Market Value Non-city Parcels with Buildings $464,899,900 City-Owned Parcels (some land w/o bldgs)$134,646,800 Land-only Properties* (ROWs, cemeteries, etc.)$3,481,700 * Franchise fees would not be able to be collected from these. Exempt properties realize the benefits of our roads, public safety services, and public infrastructure with no cost to them. Through franchise fees, new construction homes (eliminating the one to two- year lag before City receives property taxes) and renters would also contribute toward municipal service costs. Under Minnesota Statute 216B.36, cities can impose a fee on utility companies to, “raise revenue or defray increased municipal costs accruing as a result of utility operations, or both.” Listed below are upcoming projects that could be funded by franchise fees. Annual Levy Required Financial Targets FY2025 FY2026 FY2027 FY2028 FY2029 2025 - 2029 Total Pavement Management *$2,130,500 $2,194,415 $2,194,415 $2,260,247 $2,260,247 $11,039,824 Public Safety Training Facility **$1,116,613 $1,116,613 $1,116,613 $1,116,613 $1,116,613 $5,583,067 Fire Station Remodels/Builds ***$2,372,803 $2,372,803 $2,372,803 $3,768,251 $3,768,251 $14,654,913 Building Maintenance Fund *$150,000 $150,000 $150,000 $150,000 $175,000 $775,000 Veh/Equip Rplcmt Fund *$500,000 $1,500,000 $2,000,000 $2,000,000 $2,000,000 $8,000,000 Construction Timeline 2025 2026 2027 2028 2029 2025-2029 Public Safety Training Facility **$16,000,000 $16,000,000 Fire Station Remodels/Builds ***$26,000,000 $18,000,000 $20,000,000 $64,000,000 * Current funding source is Operating Levy ** Current funding source is bonding ($16M) or additional grants. Total project is $21M-$24M, $7M fed grant secured; constr in 2025 *** FD Option D3 - Current funding source is bonding ($44M in 2025, $20M in 2028). 2024 Renovation costs (Stn1 & 4) total $389K (from Bldg fund-Psfty Aid) If the City Council wishes to move forward with franchise fees, staff will begin preliminary communications with the two gas and two electric providers in Lakeville regarding the requirements for implementing new franchise fees. Each provider has a franchise agreement in place that will need to be amended. The City would then adopt an ordinance for each service provider to enact the fee. The ordinance would contain the governing terms of the fees imposed, Page 60 of 95 along with setting effective and expiration dates. Future City Council action may change or eliminate the fee within a new ordinance. After City Council approval, the City would be required to notify the Minnesota Public Utility Commission and then allow time for the utility companies to implement the fees into their billing processes. The new revenue is collected by the utility providers from their customers along with their normal billing procedures. Service providers transfer funds to the City on a quarterly basis. Supporting Information Financial Impact: $Budgeted: No Source: Envision Lakeville Community Values: Good Value for Public Service Report Completed by: Courtney Miller, Assistant to the City Administrator Page 61 of 95 Date: 4/22/2024 Local Preference in Contracting Proposed Action For discussion only. Overview At its annual retreat, the City Council requested staff to review the possibility of providing preference to local contractors or services when bidding for or proposing projects. This question was reviewed by the City Attorney and attached is the response. Staff is seeking Council direction on how to proceed. Supporting Information 1. Memorandum from Campbell Knutson Financial Impact: $0 Budgeted: No Source: Envision Lakeville Community Values: Good Value for Public Service Report Completed by: Allyn Kuennen, Assistant City Administrator Page 62 of 95 1 230612v1 M E M O R A N D U M TO: Allyn Kuennen FROM: Andrea McDowell Poehler DATE: April 10, 2024 RE: Local Preference in Contracting ______________________________________________________________________________ QUESTION PRESENTED Can the City of Lakeville (“City”) add a local bidding preference when contracting for goods or services? DISCUSSION I. Minnesota cities have no authority to add a local bidding preference to projects that are let through competitive bidding. Minnesota cities “have no inherent powers and possess only such powers as are expressly conferred by statute or implied as necessary in aid of those powers which have been expressly conferred.” Mangold Midwest Co. v. Village of Richfield, 274 Minn. 347, 357, 143 N.W.2d 813, 820 (1966). While the Minnesota Statutes do give cities the authority to enter into contracts, the statutes also require cities to follow specific procedures for awarding certain types of contracts. Under Minnesota Statutes Section 471.345 contracts in excess of $175,000 must be competitively bid and under Minnesota Statutes Sections 412.311 1 and 429.041 2 the City Council must let the contract to the lowest responsible bidder. The City cannot have a local preference in awarding competitively bid contracts because competitively bid contracts are required by law to be awarded to the lowest responsible bidder without regard to locality. II. A city could have a local preference for contracts that are not let through competitive bidding. Local preference in public contracting has been challenged on Constitutional grounds. The challenges have included claims that the local preference violates (1) the Commerce Clause, (2) the Privileges and Immunities Clause, and (3) the Equal Protection Clause. The challenges have failed. 1 Contracts for the purchase of merchandise, materials or equipment or for any kind of construction work. 2 Contracts for local improvements. Page 63 of 95 2 230612v1 A. Commerce Clause The Commerce Clause prohibits state and local governments from taking actions that burden interstate commerce. U.S. Const. Art. I § 8; Healy v. Beer Institute, Inc., 491 U.S. 324 fn. 1. (1989). There is a well-recognized exception to the Commerce Clause for “market participants” that was established in Hughes v. Alexandria Scap Corp., 426 U.S. 794 (1976). In Hughes, the United States Supreme Court upheld a State of Maryland local preference in favor of in-state scrap metal processors. The local preference did not violate the commerce clause because the state was acting as a market participant when it paid bounties more readily to in-state scrap processors for the destruction of junk vehicles formerly titled in Maryland. The local preference also did not violate the Equal Protection Clause because the state had a rational basis for the local preference. B. Privileges and Immunities Clause The Privileges and Immunities Clause prevents states and local governments from discriminating against citizens of other states. U.S. Const. Art. 4 § 2. The Privileges and Immunities clause is not applicable to corporations. Western and Southern Life Ins. Co. v. State Bd. Of Equalization of California, 451 U.S. 648, 656 (1981). Since local preferences affect corporations, it is not likely the Privileges and Immunities Clause would be a substantial basis for a challenge to a local preference. Even if the Privileges and Immunities Clause were applicable, in order to overcome a Privileges and Immunities Clause challenge, a local preference must (1) not burden a fundamental privilege protected by the Clause; or (2) if it does burden a fundamental privilege, there must be a “substantial reason” for discrimination against citizens of another state. See United Building & Construction Trades Council of Camden County & Vicinity v. Mayor and Council of the City of Camden, 465 U.S. 208, 222 (1984). As justification offered for a discriminatory law, nonresidents must be shown to “constitute a peculiar source of the evil at which the statute is aimed.” Id. However, “every inquiry under the Privileges and Immunities Clause must [* * *] be conducted with due regard for the principle that states should have considerable leeway in analyzing local evils and in prescribing cures. This caution is particularly appropriate when a governmental body is merely setting conditions on the expenditure of funds it controls.” Id. at 222-223. C. Equal Protection The Equal Protection Clause provides no state may “deny to any person within its jurisdiction the equal protection of the laws.” U.S. Const. Amend. XIV § 1. Under the Equal Protection Clause a classification that does not impinge on a fundamental right or discriminate against a suspect class will be upheld if the classification is rationally related to a legitimate governmental purpose. Armour v. City of Indianapolis, 566 U.S. 673, 680 (2012). With respect to government contracts, the Supreme Court has said that “like private individuals and businesses, the government enjoys unrestricted power to produce its own supplies, to determine with whom to deal and to fix the terms and conditions upon which it will make needed purchases.” Perkins v. Lukens Steel Co., 310 U.S. 113, 127 (1940). This leaves little room for an equal protection challenge under the rational Page 64 of 95 3 230612v1 basis test if the local preference serves a legitimate interest such as encouraging local industry or enhancing the local tax base. D. Federal Grants While local preference may not be prohibited by the U.S. Constitution, many federal grants prohibit local preference in contracting. II. What are the advantages and disadvantages of local preference policies? Commentators have identified the following advantages of local preference policies: • Local preference policies assist the local economy. • Local preference policies improve and protect the local economy. • Local preference policies keep tax dollars spent on contracts in the community. Commentators have also identified the following disadvantages of local preference policies: • Local preference policies increase the costs of projects for local taxpayers. • Local preference policies limit competition among suppliers. • Local preference policies reduce the incentive for local businesses to provide the best value for the dollar for the purchased goods or services. • Local preference policies limit the pool of suppliers. High quality suppliers may be excluded to the detriment of the City. • Local preference policies affect, complicate, and potentially burden the procurement administrative processes. • Local preference policies invite reciprocal policies being enacted in other jurisdictions limiting the ability of local businesses to do business in other jurisdictions. • Local preference policies subsidize certain businesses with tax dollars. III. What are the challenges in implementing local preference policies. Commentators have identified several challenges in implementing local preference policies. One challenge is defining what is “local”. Does local mean the City, zip code, county, state, country, or continent? Also, who will be covered by the preference in that geographic area? Residents of the area? Taxpayers? Companies with a majority of employees living in the area? Companies with a majority shareholders living in the area? Companies headquartered in the area? Companies with a principal place of business in the area? Companies located outside the area whose owner lives in the area. Cities need to determine a defensible and fair process for determining the definition of a local business. Another challenge is defining the preference. How will local suppliers be preferred? There are three types of local preferences: (1) hiring preferences, which require contractors to hire a certain percentage of local workers; (2) purchasing preferences, which require contractors to use supplies Page 65 of 95 4 230612v1 or materials that are made locally; or (3) contract award preferences, which give local proposers an advantage in the award of public contracts. CONCLUSION The City cannot apply a local preference to contracts that have to be competitively bid. The City can apply a local preference to contracts that do not have to be competitively bid. However, the City should carefully consider the advantages, disadvantages, and challenges of implementing a local preference policy. Page 66 of 95 Date: 04/22/2024 2024A Bond Issuance -Street Reconstruction & Park Referendum Projects Proposed Action: Staff recommends adoption of the following motion: No formal action required. Staff is seeking Council direction regarding the issuance of 2024A bonds. Overview Staff is presenting the 2024A bond issuance for your consideration. The bonds will provide funding for the following projects: •#24-02 – 2024 Street Reconstruction Project •#24-03 – Collector Rehabilitation •Park Referendum Projects The 2024A bond issuance is estimated to be $22,365,000. It reflects the following: •The term of the bonds is 20 years: o $7,290,000 - Street reconstruction portion = 10 years o $15,075,000 - Park referendum portion = 20 years •The structure of the 2024A bonds is compliant with the City’s Debt Policy such that the total maturity length is equal to or less than 20 years and at least 50% of the principal will be retired within 10 years. The City’s municipal advisor, Northland Securities, has prepared the attached Finance Plan for the 2024A bond issuance. Financial Impacts Based on the current bond estimate, the following chart shows the estimated 2025 debt service levy: 2024 Debt Service Levy $11,537,150 Levy Adjustment for Existing Debt 51,547 Levy for New 2024A Debt Issue-Street 772,480 Levy for New 2024A Debt Issue-Park Referendum 1,154,333 Page 67 of 95 Levy for Est 2025A Debt Issue-Street 93,529 Subtotal 2,071,889 Estimated 2025 Debt Service Levy $13,609,039 One-time reductions were made in the 2024 debt service levy due to excess reserves available in the debt service funds. The $2,071,889 increase in debt service levy represents a 4.75% increase based on the total 2024 property tax levy. The estimate includes levies for the 2025 bond issuance, as well, to cover the first estimated interest payment. Staff will be reviewing cash balances in the debt service funds to see if there are opportunities to reduce the 2025 debt service levy. Staff will also be reviewing the 2024A debt structure to determine what changes can be made to moderate the impact on the tax levy. The 2025 total tax levy will also be impacted by other adjustments to revenues and expenditures, service levels, project funding, etc. Park Referendum Bonds The following chart shows the timelines and bond issuance amounts: Issuance Year/Serie s Amount Projects First Year of Impact to Levy 2022B $4,845,000 Hasse Arena public multi-use pavilion (outdoor rink) 2023 2022C $13,735,000 Art Center improvements, Park ID sign replacements, basketball court replacements, Antlers Community Park improvements, trails gaps/connectivity design and ROW acquisition; Ritter Farm Park cabin and site improvements design. 2023 2023A $4,345,000 Trails gaps/connectivity construction; Ritter Farm Park cabin and site improvements construction. 2024 2024A $15,075,000 Avonlea Community Park design and construction; East Community Park design and construction. 2025 $38,000,000 Maximum Bonding Authorized Page 68 of 95 Funding from Dakota County is anticipated for several of the projects. Other funding sources (i.e. Park Dedication Funds, Utility Funds, General Fund reserves, etc.) or project reductions will need to be identified for project costs more than the maximum bonding. Staff is combining the 2024A park referendum projects above with the 2024 street reconstruction bonds. This approach will save the City money by limiting costs of bond issuance. Also attached to this memo is a summary of the tax levies for the four park referendum bond issuances. The 2024A estimate is based on the Finance Plan. The 2024 bond issuance estimate is based on the remaining amount that the City would be authorized to issue. Key dates coming up for the 2024A Bonds: May 20, 2024 ➢Council adopts resolution setting the sale of bonds. June 17, 2024 ➢Bond Sale – 10:00 a.m. ➢Council adopts resolution approving the bond sale. July 17, 2024 ➢Closing on Bonds. Supporting Information 1. 1. Preliminary Finance Plan – April 22, 2024 2. 2. Park Referendum Debt Levies Financial Impact: $ 22,365,000 Budgeted: Yes Source: Various Envision Lakeville Community Values: Good Value for Public Service Report Completed by: Julie Stahl, Finance Director Page 69 of 95 Finance Plan City of Lakeville, Minnesota $22,365,000 General Obligation Bonds, Series 2024A April 22, 2024 150 South 5th Street, Suite 3300 Minneapolis, MN 55402 612-851-5900 800-851-2920 www.northlandsecurities.com Member FINRA and SIPC | Registered with SEC and MSRB Page 70 of 95 Contents Executive Summary Issue Overview Purpose Authority Structure Security and Source of Repayment Plan Rationale Issuing Process Attachment 1 – Preliminary Debt Service Schedules Attachment 2 – Estimated Levy Schedules Attachment 3 – Related Considerations Not Bank Qualified Arbitrage Compliance Continuing Disclosure Premiums Rating Attachment 4 – Calendar of Events Attachment 5 - Risk Factors Page 71 of 95 Northland Securities, Inc. Page 2 Executive Summary The following is a summary of the recommended terms for the issuance of $22,365,000 General Obligation Bonds, Series 2024A (the “Bonds”). Additional information on the proposed finance plan and issuing process can be found after the Executive Summary, in the Issue Overview and Attachment 3 – Related Considerations. Purpose Proceeds from the Bonds will be used to finance the City’s 2024 street reconstruction projects and various park improvements, and to finance the costs associated with the issuance of the Bonds. Security The Bonds will be a general obligation of the City. The City will pledge ad valorem taxes for payment of the Bonds. Repayment Term The Bonds will mature annually each February 1 in the years 2026 through 2045. Interest on the Bonds will be payable on February 1, 2025, and semiannually thereafter on each February 1 and August 1. Estimated Interest Rate True interest cost (TIC): 3.90% Interest rates are estimated based on Non-BQ “Aaa” rates as of April 5, 2024, plus 0.25% for planning purposes. Prepayment Option Bonds maturing on and after February 1, 2033, will be subject to redemption on February 1, 2032, and any day thereafter at a price of par plus accrued interest. Rating A rating will be requested from Moody’s Investor Services (Moody’s). The City’s general obligation debt is currently rated "Aaa” by Moody’s. Tax Status The Bonds will be tax-exempt, non-bank qualified obligations. Risk Factors There are certain risks associated with all debt. Risk factors related to the Bonds are discussed in Attachment 5. Type of Bond Sale Public Sale – Competitive Bids Proposals Received Monday, June 17, 2024 @ 10:00 A.M. Council Consideration Monday, June 17, 2024 @ 6:00 P.M. Page 72 of 95 Northland Securities, Inc. Page 3 Issue Overview Purpose Proceeds from the Bonds will be used to finance the following projects (together, the “Projects”): • the 2024 street reconstruction and collector rehabilitation project (the “Street Reconstruction Portion”); and • various park projects as approved by voters on November 2, 2021 (the “Park Referendum Portion”). The proceeds will also be used to pay costs associated with issuing the Bonds. The Bonds have been sized based on cost estimates provided by City Staff as of April 10, 2024. The table below contains the estimated sources and uses of funds for the bond issue. Authority The Bonds will be issued pursuant to the authority of Minnesota Statutes, Chapter 475 and Section 475.58, Subdivision 3b. Street Reconstruction Portion Under Section 475.58, Subdivision 3b., street reconstruction bonds can be used to finance the reconstruction and bituminous overlay of existing city streets. Eligible improvements may include turn lanes and other improvements having a substantial public safety function, realignments, other modifications to intersect with state and county roads and the local share of state and county road projects. Eligible improvements do not include the portion of project cost allocable to widening a street or adding curbs and gutters where none previously existed. Before issuing street reconstruction bonds, the City must hold a public hearing on the street reconstruction project and the proposed bonds, and then must pass a resolution approving the Street Reconstruction Plan and issuance of street reconstruction bonds. The City held the required public hearing and approved the Street Reconstruction Plan on October 2, 2023. Park Referendum Portion The Park Referendum Portion will be issued pursuant to Chapter 475 and a park referendum held on November 2, 2021, and approved by voters by a margin of 7,346 “Yes” votes to 4,681 “No” votes, resulting in 61.08% approval. This issuance will use the remaining amount approved by voters. 2024 Street Reconstruction & Collector Rehab Proj. Park Referendum Issue Summary Sources Of Funds Par Amount of Bonds $7,290,000.00 $15,075,000.00 $22,365,000.00 Total Sources $7,290,000.00 $15,075,000.00 $22,365,000.00 Uses Of Funds Deposit to Project Construction Fund 7,045,000.00 14,538,000.00 21,583,000.00 Deposit to Capitalized Interest (CIF) Fund 128,639.51 304,130.03 432,769.54 Total Underwriter's Discount (1.050%)76,545.00 158,287.50 234,832.50 Costs of Issuance 35,748.14 73,923.64 109,671.78 Rounding Amount 4,067.35 658.83 4,726.18 Total Uses $7,290,000.00 $15,075,000.00 $22,365,000.00 Page 73 of 95 Northland Securities, Inc. Page 4 Structure The Street Reconstruction Portion of the Bonds has been structured to result in relatively level annual debt service payments over 10 years. The Park Referendum Portion has been structured to result in relatively level annual debt service payments over 20 years. The proposed structure for the bond issue and preliminary debt service projections for each portion of the bond issue are illustrated in Attachment 1 and the estimated levies are illustrated in Attachment 2. Security and Source of Repayment The Bonds will be general obligations of the City. The finance plan relies on the following assumptions for the revenues used to pay debt service, as provided by City staff: • Special Assessments. Although not pledged as security to the Bonds, the City is expected to levy special assessments against benefited properties in the amount of $862,000 for the Street Reconstruction Portion of the Bonds. The assessments are structured for level annual payments of principal with interest charged at a rate of 2% over the True Interest Cost of the Street Reconstruction Portion of the Bonds (currently estimated to be 5.50%). The plan assumes that the assessments will be levied in 2024 for initial payment in 2025. • Property Taxes. The revenues needed to pay debt service on the Bonds are expected to come from property tax levies. The initial projections show that for the Street Reconstruction Portion of the Bonds, an annual net levy ranging from approximately $772,480 to $822,370, is needed to meet the 105% statutory requirement. The initial projections show that for the Park Referendum Portion of the bonds, an annual levy averaging $1,156,533, is needed to meet the 105% statutory requirement. The levy may be adjusted annually based on actual monies in the debt service fund. The initial levies will be made in 2024 for taxes payable in 2023. Given the timing of the initial revenue from the tax levy, capitalized interest will be included in the bond issue to cover the first interest payment due on February 1, 2025, before the first tax collections are received. Plan Rationale The Finance Plan recommended in this report is based on a variety of factors and information provided by the City related to the financed project and City objectives, Northland’s knowledge of the City and our experience in working with similar cities and projects. The issuance of General Obligation Bonds provides the best means of achieving the City’s objectives and cost-effective financing. The City has successfully issued and managed this type of debt for previous projects. Issuing Process Northland will receive bids from underwriters to purchase the Bonds on Monday, June 17, 2024, at 10:00 A.M. Market conditions and the marketability of the Bonds support issuance through a competitive sale. This process has been chosen as it is intended to produce the lowest combination of interest expense and underwriting expense on the structure, date and time set to receive bids. The calendar of events for the issuing process can be found in Attachment 4. Municipal Advisor: Northland Securities, Inc., Minneapolis, Minnesota Bond Counsel: Dorsey & Whitney LLP, Minneapolis, Minnesota Paying Agent: US Bank Trust Company, National Association, St. Paul, Minnesota Page 74 of 95 Northland Securities, Inc. Page 5 Attachment 1 – Preliminary Debt Service Schedules Total Combined *Based on preliminary, Non-Bank Qualified “Aaa” rates as of April 5, 2024, plus 0.25%. Date Principal Coupon Interest Total P+I Fiscal Total 07/17/2024 ----- 02/01/2025 --432,769.54 432,769.54 432,769.54 08/01/2025 --401,538.75 401,538.75 - 02/01/2026 1,165,000.00 3.400%401,538.75 1,566,538.75 1,968,077.50 08/01/2026 --381,733.75 381,733.75 - 02/01/2027 1,205,000.00 3.250%381,733.75 1,586,733.75 1,968,467.50 08/01/2027 --362,152.50 362,152.50 - 02/01/2028 1,245,000.00 3.200%362,152.50 1,607,152.50 1,969,305.00 08/01/2028 --342,232.50 342,232.50 - 02/01/2029 1,285,000.00 3.200%342,232.50 1,627,232.50 1,969,465.00 08/01/2029 --321,672.50 321,672.50 - 02/01/2030 1,325,000.00 3.150%321,672.50 1,646,672.50 1,968,345.00 08/01/2030 --300,803.75 300,803.75 - 02/01/2031 1,365,000.00 3.150%300,803.75 1,665,803.75 1,966,607.50 08/01/2031 --279,305.00 279,305.00 - 02/01/2032 1,410,000.00 3.150%279,305.00 1,689,305.00 1,968,610.00 08/01/2032 --257,097.50 257,097.50 - 02/01/2033 1,455,000.00 3.250%257,097.50 1,712,097.50 1,969,195.00 08/01/2033 --233,453.75 233,453.75 - 02/01/2034 1,500,000.00 3.400%233,453.75 1,733,453.75 1,966,907.50 08/01/2034 --207,953.75 207,953.75 - 02/01/2035 1,555,000.00 3.550%207,953.75 1,762,953.75 1,970,907.50 08/01/2035 --180,352.50 180,352.50 - 02/01/2036 740,000.00 3.650%180,352.50 920,352.50 1,100,705.00 08/01/2036 --166,847.50 166,847.50 - 02/01/2037 770,000.00 3.800%166,847.50 936,847.50 1,103,695.00 08/01/2037 --152,217.50 152,217.50 - 02/01/2038 795,000.00 3.800%152,217.50 947,217.50 1,099,435.00 08/01/2038 --137,112.50 137,112.50 - 02/01/2039 830,000.00 3.900%137,112.50 967,112.50 1,104,225.00 08/01/2039 --120,927.50 120,927.50 - 02/01/2040 860,000.00 4.000%120,927.50 980,927.50 1,101,855.00 08/01/2040 --103,727.50 103,727.50 - 02/01/2041 895,000.00 4.050%103,727.50 998,727.50 1,102,455.00 08/01/2041 --85,603.75 85,603.75 - 02/01/2042 930,000.00 4.150%85,603.75 1,015,603.75 1,101,207.50 08/01/2042 --66,306.25 66,306.25 - 02/01/2043 970,000.00 4.250%66,306.25 1,036,306.25 1,102,612.50 08/01/2043 --45,693.75 45,693.75 - 02/01/2044 1,010,000.00 4.400%45,693.75 1,055,693.75 1,101,387.50 08/01/2044 --23,473.75 23,473.75 - 02/01/2045 1,055,000.00 4.450%23,473.75 1,078,473.75 1,101,947.50 Total $22,365,000.00 -$8,773,182.04 $31,138,182.04 - Yield Statistics Bond Year Dollars $229,992.25 Average Life 10.284 Years Average Coupon 3.8145555% Net Interest Cost (NIC)3.9166600% True Interest Cost (TIC)3.9047308% Bond Yield for Arbitrage Purposes 3.7745834% All Inclusive Cost (AIC)3.9662180% IRS Form 8038 Net Interest Cost 3.8145555% Weighted Average Maturity 10.284 Years Optional Redemption 02/01/2032 @100.000% Page 75 of 95 Northland Securities, Inc. Page 6 Street Reconstruction Portion Date Principal Coupon Interest Total P+I Fiscal Total 07/17/2024 ----- 02/01/2025 --128,639.51 128,639.51 128,639.51 08/01/2025 --119,356.25 119,356.25 - 02/01/2026 630,000.00 3.400%119,356.25 749,356.25 868,712.50 08/01/2026 --108,646.25 108,646.25 - 02/01/2027 650,000.00 3.250%108,646.25 758,646.25 867,292.50 08/01/2027 --98,083.75 98,083.75 - 02/01/2028 670,000.00 3.200%98,083.75 768,083.75 866,167.50 08/01/2028 --87,363.75 87,363.75 - 02/01/2029 695,000.00 3.200%87,363.75 782,363.75 869,727.50 08/01/2029 --76,243.75 76,243.75 - 02/01/2030 715,000.00 3.150%76,243.75 791,243.75 867,487.50 08/01/2030 --64,982.50 64,982.50 - 02/01/2031 735,000.00 3.150%64,982.50 799,982.50 864,965.00 08/01/2031 --53,406.25 53,406.25 - 02/01/2032 760,000.00 3.150%53,406.25 813,406.25 866,812.50 08/01/2032 --41,436.25 41,436.25 - 02/01/2033 785,000.00 3.250%41,436.25 826,436.25 867,872.50 08/01/2033 --28,680.00 28,680.00 - 02/01/2034 810,000.00 3.400%28,680.00 838,680.00 867,360.00 08/01/2034 --14,910.00 14,910.00 - 02/01/2035 840,000.00 3.550%14,910.00 854,910.00 869,820.00 Total $7,290,000.00 -$1,514,857.01 $8,804,857.01 - Page 76 of 95 Northland Securities, Inc. Page 7 Park Referendum Portion Date Principal Coupon Interest Total P+I Fiscal Total 07/17/2024 ----- 02/01/2025 --304,130.03 304,130.03 304,130.03 08/01/2025 --282,182.50 282,182.50 - 02/01/2026 535,000.00 3.400%282,182.50 817,182.50 1,099,365.00 08/01/2026 --273,087.50 273,087.50 - 02/01/2027 555,000.00 3.250%273,087.50 828,087.50 1,101,175.00 08/01/2027 --264,068.75 264,068.75 - 02/01/2028 575,000.00 3.200%264,068.75 839,068.75 1,103,137.50 08/01/2028 --254,868.75 254,868.75 - 02/01/2029 590,000.00 3.200%254,868.75 844,868.75 1,099,737.50 08/01/2029 --245,428.75 245,428.75 - 02/01/2030 610,000.00 3.150%245,428.75 855,428.75 1,100,857.50 08/01/2030 --235,821.25 235,821.25 - 02/01/2031 630,000.00 3.150%235,821.25 865,821.25 1,101,642.50 08/01/2031 --225,898.75 225,898.75 - 02/01/2032 650,000.00 3.150%225,898.75 875,898.75 1,101,797.50 08/01/2032 --215,661.25 215,661.25 - 02/01/2033 670,000.00 3.250%215,661.25 885,661.25 1,101,322.50 08/01/2033 --204,773.75 204,773.75 - 02/01/2034 690,000.00 3.400%204,773.75 894,773.75 1,099,547.50 08/01/2034 --193,043.75 193,043.75 - 02/01/2035 715,000.00 3.550%193,043.75 908,043.75 1,101,087.50 08/01/2035 --180,352.50 180,352.50 - 02/01/2036 740,000.00 3.650%180,352.50 920,352.50 1,100,705.00 08/01/2036 --166,847.50 166,847.50 - 02/01/2037 770,000.00 3.800%166,847.50 936,847.50 1,103,695.00 08/01/2037 --152,217.50 152,217.50 - 02/01/2038 795,000.00 3.800%152,217.50 947,217.50 1,099,435.00 08/01/2038 --137,112.50 137,112.50 - 02/01/2039 830,000.00 3.900%137,112.50 967,112.50 1,104,225.00 08/01/2039 --120,927.50 120,927.50 - 02/01/2040 860,000.00 4.000%120,927.50 980,927.50 1,101,855.00 08/01/2040 --103,727.50 103,727.50 - 02/01/2041 895,000.00 4.050%103,727.50 998,727.50 1,102,455.00 08/01/2041 --85,603.75 85,603.75 - 02/01/2042 930,000.00 4.150%85,603.75 1,015,603.75 1,101,207.50 08/01/2042 --66,306.25 66,306.25 - 02/01/2043 970,000.00 4.250%66,306.25 1,036,306.25 1,102,612.50 08/01/2043 --45,693.75 45,693.75 - 02/01/2044 1,010,000.00 4.400%45,693.75 1,055,693.75 1,101,387.50 08/01/2044 --23,473.75 23,473.75 - 02/01/2045 1,055,000.00 4.450%23,473.75 1,078,473.75 1,101,947.50 Total $15,075,000.00 -$7,258,325.03 $22,333,325.03 - Page 77 of 95 Northland Securities, Inc. Page 8 Attachment 2 – Estimated Levy Schedules Street Reconstruction Portion Park Referendum Portion Date Total P+I CIF 105% Levy Less: Special Assessment Revenue*Net Levy Levy Year Collection Year 02/01/2025 128,639.51 (128,639.51)--- 02/01/2026 868,712.50 -912,148.13 139,667.94 772,480.19 2024 2025 02/01/2027 867,292.50 -910,657.13 128,869.00 781,788.13 2025 2026 02/01/2028 866,167.50 -909,475.88 124,128.00 785,347.88 2026 2027 02/01/2029 869,727.50 -913,213.88 119,387.00 793,826.88 2027 2028 02/01/2030 867,487.50 -910,861.88 114,646.00 796,215.88 2028 2029 02/01/2031 864,965.00 -908,213.25 109,905.00 798,308.25 2029 2030 02/01/2032 866,812.50 -910,153.13 105,164.00 804,989.13 2030 2031 02/01/2033 867,872.50 -911,266.13 100,423.00 810,843.13 2031 2032 02/01/2034 867,360.00 -910,728.00 95,682.00 815,046.00 2032 2033 02/01/2035 869,820.00 -913,311.00 90,941.00 822,370.00 2033 2034 Total $8,804,857.01 (128,639.51)$9,110,028.38 $1,128,812.94 $7,981,215.44 *Special assessment revenue is based on assessments totaling $862,000, spread in equal principal payments over 10 years and assessed at a rate of 5.50% (2.00% over the True Interest Cost, rounded to the nearest 0.05%). Date Total P+I CIF 105% Levy Levy Year Collection Year 02/01/2025 304,130.03 (304,130.03)- 02/01/2026 1,099,365.00 -1,154,333.25 2024 2025 02/01/2027 1,101,175.00 -1,156,233.75 2025 2026 02/01/2028 1,103,137.50 -1,158,294.38 2026 2027 02/01/2029 1,099,737.50 -1,154,724.38 2027 2028 02/01/2030 1,100,857.50 -1,155,900.38 2028 2029 02/01/2031 1,101,642.50 -1,156,724.63 2029 2030 02/01/2032 1,101,797.50 -1,156,887.38 2030 2031 02/01/2033 1,101,322.50 -1,156,388.63 2031 2032 02/01/2034 1,099,547.50 -1,154,524.88 2032 2033 02/01/2035 1,101,087.50 -1,156,141.88 2033 2034 02/01/2036 1,100,705.00 -1,155,740.25 2034 2035 02/01/2037 1,103,695.00 -1,158,879.75 2035 2036 02/01/2038 1,099,435.00 -1,154,406.75 2036 2037 02/01/2039 1,104,225.00 -1,159,436.25 2037 2038 02/01/2040 1,101,855.00 -1,156,947.75 2038 2039 02/01/2041 1,102,455.00 -1,157,577.75 2039 2040 02/01/2042 1,101,207.50 -1,156,267.88 2040 2041 02/01/2043 1,102,612.50 -1,157,743.13 2041 2042 02/01/2044 1,101,387.50 -1,156,456.88 2042 2043 02/01/2045 1,101,947.50 -1,157,044.88 2043 2044 Total $22,333,325.03 (304,130.03)$23,130,654.75 Page 78 of 95 Northland Securities, Inc. Page 9 Attachment 3 – Related Considerations Not Bank Qualified We understand the City (in combination with any subordinate taxing jurisdictions or debt issued in the City’s name by 501(c)3 corporations) anticipates issuing more than $10,000,000 in tax- exempt debt during this calendar year. Therefore, the Bonds will not be designated as “bank qualified” obligations pursuant to Federal Tax Law. Arbitrage Compliance Project/Construction Fund. All tax-exempt bond issues are subject to federal rebate requirements which require all arbitrage earned to be rebated to the U.S. Treasury. The rebate exemption the City expects to qualify for is the “24-month exception.” Debt Service Fund. The City must maintain a bona fide debt service fund for the Bonds or be subject to yield restriction in the debt service fund. A bona fide debt service fund involves an equal matching of revenues to debt service expense with a balance forward permitted equal to the greater of the investment earnings in the fund during that year or 1/12 of the debt service of that year. The City should become familiar with the various Arbitrage Compliance requirements for this bond issue. The Resolution for the Bonds prepared by Bond Counsel explains the requirements in greater detail. Continuing Disclosure Type: Full Dissemination Agent: Northland Securities, Inc. The requirements for continuing disclosure are governed by SEC Rule 15c2-12. The primary requirements of Rule 15c2-12 actually fall on underwriters. The Rule sets forth due diligence needed prior to the underwriter’s purchase of municipal securities. Part of this requirement is obtaining commitment from the issuer to provide continuing disclosure. The document describing the continuing disclosure commitments (the “Undertaking”) is contained in the Official Statement that will be prepared to offer the Bonds to investors. The City has more than $10,000,000 of outstanding debt and is required to undertake “full” continuing disclosure. Full disclosure requires annual posting of the audit and a separate continuing disclosure report, as well as the reporting of certain “material events.” Material events set forth in the Rule, including, but not limited to, bond rating changes, call notices, and issuance of “financial obligations” (such as USDA loans, Public Finance Authority loans and lease agreements) must be reported within ten days of occurrence. The report contains annual financial information and operating data that “mirrors” material information presented in the Official Statement. The specific contents of the annual report will be described in the Undertaking that appears in the appendix of the Official Statement. Northland currently serves as dissemination agent for the City, assisting with the annual reporting. The information for the Bonds will be incorporated into our reporting. Premiums In the current market environment, it is likely that bids received from underwriters will include premiums. A premium bid occurs when the purchaser pays the City an amount in excess of the par amount of a maturity in exchange for a higher coupon (interest rate). The use of premiums Page 79 of 95 Northland Securities, Inc. Page 10 reflects the bidder’s view on future market conditions, tax considerations for investors and other factors. Ultimately, the true interest cost (“TIC”) calculation will determine the lowest bid, regardless of premium. A premium bid produces additional funds that can be used in several ways: • The premium means that the City needs less bond proceeds and can reduce the size of the issue by the amount of the premium. • The premium can be deposited in the Construction Fund and used to pay additional project costs, rather than used to reduce the size of the issue. • The premium can be deposited in the Debt Service Fund and used to pay principal and interest. Northland will work with City staff prior to the sale day to determine use of premium (if any). Rating A rating will be requested from Moody’s Investor Services (Moody’s). The City’s general obligation debt is currently rated “Aaa” by Moody’s. The rating process will include a conference call with the rating analyst. Northland will assist City staff in preparing for and conducting the rating call. Page 80 of 95 Northland Securities, Inc. Page 11 Attachment 4 – Calendar of Events The following checklist of items denotes each milestone activity as well as the members of the finance team who will have the responsibility to complete it. Please note this proposed timetable assumes regularly scheduled City Council meetings. Date Action Responsible Party March 25 City provides preliminary project costs City Staff April 8 General Information Certificate sent to City for updates Northland April 10 City provides final project costs no later than noon City Staff April 15 Finance Plan sent to City for meeting packet for April 22 Workshop Meeting Northland April 22 City Council Workshop to review proposed issuance of 2024A Bonds – 6:00 pm City Council Review April 23 Request for rating submitted to Moody’s, and scheduling of rating call Northland April 29 General Information Certificate returned to Northland City Staff May 6 Preliminary Official Statement sent to City for sign off, sent to Rating Agency to initiate rating processes, and sent to Dorsey & Whitney for review Northland May 14 Meeting to prepare for rating call City Staff, Northland April 2024 May 2024 Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat 1 2 3 4 5 6 1 2 3 4 7 8 9 10 11 12 13 5 6 7 8 9 10 11 14 15 16 17 18 19 20 12 13 14 15 16 17 18 21 22 23 24 25 26 27 19 20 21 22 23 24 25 28 29 30 26 27 28 29 30 31 June 2024 July 2024 Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat 1 1 2 3 4 5 6 2 3 4 5 6 7 8 7 8 9 10 11 12 13 9 10 11 12 13 14 15 14 15 16 17 18 19 20 16 17 18 19 20 21 22 21 22 23 24 25 26 27 23 24 25 26 27 28 29 28 29 30 31 30 Holiday Page 81 of 95 Northland Securities, Inc. Page 12 Date Action Responsible Party Week of May 20 or May 27 Rating call with Moody’s City Staff, Northland, Rating Agency May 20 City adopts Set Sale Resolution – 6:00 p.m. City Council Action, Northland, Dorsey & Whitney May 23 City comments and sign off on Preliminary Official Statement due to Northland City Staff June 3 Rating Received no later than this date City Staff, Northland, Rating Agency June 5 Distribution of Preliminary Official Statement Northland June 10 Authorizing Resolution sent to City Dorsey & Whitney, Northland June 17 Bond Sale – 10:00 a.m. Bond Purchase Agreement Signed - 6:00 p.m. Authorizing Resolution Adopted City Council Action, Northland, Dorsey & Whitney June 24 Closing Documents Distributed Dorsey & Whitney July 17 Closing on the Bonds (Proceeds Available) Northland, City Staff, Dorsey & Whitney Page 82 of 95 Northland Securities, Inc. Page 13 Attachment 5 - Risk Factors Property Taxes: Property tax levies shown in this Finance Plan are based on projected debt service and other revenues. Final levies will be set based on the results of sale. Levies should be reviewed annually and adjusted as needed. The debt service levy must be included in the preliminary levy for annual Truth in Taxation hearings. Future Legislative changes in the property tax system, including the imposition of levy limits and changes in calculation of property values, would affect plans for payment of debt service. Delinquent payment of property taxes would reduce revenues available to pay debt service. Special Assessments: Special assessments for the financed projects have not been levied at this time. This Finance Plan is based on the assumptions listed earlier in this report. Changes in the terms and timing for the actual assessments will alter the projected flow of funds for payment of debt service on the Bonds. Also, special assessments may be prepaid. It is likely that the income earned on the investment of prepaid assessments will be less than the interest paid if the assessments remained outstanding. Delinquencies in assessment collections would reduce revenues needed to pay debt service. The collection of deferred assessments, if any, have not been included in the revenue projections. Projected assessment income should be reviewed annually and adjusted as needed. General: In addition to the risks described above, there are certain general risks associated with the issuance of bonds. These risks include, but are not limited to: • Failure to comply with covenants in bond resolution. • Failure to comply with Undertaking for continuing disclosure. • Failure to comply with IRS regulations, including regulations related to use of the proceeds and arbitrage/rebate. The IRS regulations govern the ability of the City to issue its bonds as tax-exempt securities and failure to comply with the IRS regulations may lead to loss of tax- exemption. Page 83 of 95 Council Workshop 2024.04.22 CITY OF LAKEVILLE PARK REFERENDUM - DEBT SERVICE TAX LEVIES 2022B 2022C 2023A 2024 (Est)Park Tax Hasse Park Ref Park Ref Park Ref Refer Collection Outdoor Rink Projects Projects Projects TOTALS Year $4,845,000 $13,735,000 $4,345,000 $15,075,000 $38,000,000 2023 340,927 600,000 - - 940,927 2024 337,344 1,104,042 339,990 - 1,781,376 2025 338,601 1,105,880 343,403 1,154,333 2,942,217 2026 339,651 1,106,405 341,040 1,156,234 2,943,330 2027 340,489 1,105,617 343,665 1,158,294 2,948,065 2028 340,998 1,103,517 340,515 1,154,724 2,939,754 2029 341,282 1,105,355 342,353 1,155,900 2,944,889 2030 336,084 1,105,617 338,415 1,156,725 2,936,841 2031 341,271 1,104,305 339,465 1,156,887 2,941,928 2032 340,725 1,101,417 339,990 1,156,389 2,938,521 2033 339,806 1,102,205 339,990 1,154,525 2,936,526 2034 338,378 1,103,465 341,670 1,156,142 2,939,655 2035 336,554 1,103,465 342,930 1,155,740 2,938,689 2036 339,573 1,102,205 343,770 1,158,880 2,944,427 2037 336,769 1,102,874 338,940 1,154,407 2,932,990 2038 338,783 1,102,402 339,150 1,159,436 2,939,770 2039 340,331 1,104,895 338,940 1,156,948 2,941,115 2040 336,005 1,106,011 343,560 1,157,578 2,943,154 2041 336,457 1,104,515 342,300 1,156,268 2,939,539 2042 336,404 1,101,594 340,620 1,157,743 2,936,362 2043 - - 338,520 1,156,457 1,494,977 2044 - - - 1,157,045 1,157,045 TOTALS 6,776,432 21,575,785 6,819,225 23,130,655 58,302,097 Page 84 of 95 Date: 4/22/2024 2023 4th Quarter Financial Report - General Fund Proposed Action Discussion only Overview The attached financial report and analysis offers readers a narrative overview of the financial activities of th City for the 2023 4th quarter. Supporting Information 1. 2023 4th Quarter Financial Report Financial Impact: $ Budgeted: Yes Source: General Fund Envision Lakeville Community Values: Good Value for Public Service Report Completed by: Julie Stahl, Finance Director Page 85 of 95 i        FINANCIAL HIGHLIGHTS:   The following financial report and analysis offers readers a narrative overview of the financial activities  of the City for the year ended December 31, 2023. This report only covers the General Fund.  Readers  should take note that this information is preliminary as the City’s annual audit has not been  completed and some amounts may be estimated as the final audit work is still being completed. The  readers are encouraged to consider the information presented here in conjunction with the unaudited  financial statements attached to this report, the adopted budget and the five‐year Capital  Improvement Plan.  The City received $3.15 million in one‐time Public Safety Aid funding in December.  The City set aside  $1.3 million in the Building Fund.  The 2023 financial report reflects $1.85 million of this aid in the  General Fund.   General Fund     ‐     Revenues  Total revenues are $335,00 higher than budget estimates and $148,700 lower than the prior year.     Property tax revenues.   General property taxes were lower than budget estimates by $253,000 or 0.9%.   All  delinquent taxes are recorded in the General Fund and other funds receive 100% of their  current levy.  Tax payments form Dakota County were received in June, July, December,  with the final settlement received in January 2024.     Licenses and Permits.     Licenses and Permit revenues were higher than the amended budget by $173,000.  Overall  permit revenue decreased $354,000 over the prior year.  The following chart shows the  2023 actual number of building permits as well as a comparison of the 2023 budget to  actual.                YTD 4th 2023 YTD 4th Quarter Adopted Quarter Permit Type 2022 Budget 2023 Single Family 325 350 309 Townhome 222 120 152 Apartments (Units) 13 (167 units) 1 (200 units) 9 (252 units) Commercial 11 4 8 Industrial 0 2 2 Page 86 of 95 ii     Historical Building Permits  As shown in the chart below building permits for single family had record breaking years in 2019, 2020 and 2021 and now trending to a steady growth as seen in years past. The mix of permit types is changing to include a mix of townhomes and apartment complexes.      Intergovernmental.   Intergovernmental revenues are higher than the amended budget estimates by $104,000.   Police State Aid ($642,000) was $62,000 higher than the original budget and prior year.   Fire State Aid exceeded the original budget by $58,000.   Revenues for public safety  programs such as traffic safety, protective vest replacement grants and firefighter training  grants continue to be strong.      Intergovernmental revenues are lower than the prior year by $2.7 million.  This is primarily  due to the City recognizing $4,873,307 related to the American Rescue Plan Act (ARPA) in  2022.  In 2023 the City received $3.15 million in one‐time Public Safety Aid funding and  $1.85 million of this aid is in the General Fund – the remainder is reflected in the Building  Fund.     Charges for Services.  Charges for Services are below amended budget estimates by $264,000.   General government services are higher than amended budget estimates by $152,000 and  are exceeding the prior year estimate by $186,000.  $258,000 has been received for fiscal  agent fees from the Dakota 911 and Lakeville Arenas which is a majority of the increase  between budget and comparison with the prior year.       Page 87 of 95 iii     Public Safety revenues are $27,000 lower than budget estimates. Police security services  are in line with the prior year. SRO contributions are down from budget estimates due to  changes in staffing of the SRO Officers.  The current agreement with Eureka Township  results in a 2023 fee of $49,350 and was billed out in June of the current year.      Public works revenues for engineering‐related services in connection with developer  construction administration, inspection, and GIS are lower than the amended budget by  $376,000 and prior year by $711,000.  This is consistent with the level of developmental  activity.     Parks and Recreation revenues are $17,000 higher than amended budget and slightly  higher compared to 2022.   The Arts Center revenues are $30,000 less than budget  estimates but $121,00 higher than 2022. Increased programing at the Arts Center  contributed to the variance.     Court Fines.  • Revenues from court fines ($238,000) are in line with budget estimates and are higher than  the prior year by $13,000. Court fine revenues and the membership fees paid to the Dakota  911 are both impacted by the number of CAD calls. COVID‐19 impacted court fines in past  years but are showing moderate increases compared to prior revenues during COVID‐19.      Investment Revenue and Miscellaneous   Investment income is $730,000 due to increase in market conditions at the end of 2023.   The 2023 budget was anticipating $281,000 in investment revenue.  The investment  gain is comprised of investment earnings of $351,000 and an increase for the market  value adjustment of $379,000.  Investments are typically held until maturity and any  potential losses in the market value will likely be gained back in future periods.       General Fund     ‐     Expenditures  Total expenditures are about $752,000 or 2.0 % less than the amended budget. This is offset by  the budget for transfers from (in) other funds for a net increase of $307,000. Transfers in are now  accounted for within the applicable departments to account for interfund allocations.     Personnel Services – Personnel services of $26,665,203 were lower than the amended budget  by $643,254 or 3.0%.  Compared to 2022, personnel services were $1.6M higher in 2023.  Higher costs were due to additional staff added in 2023.  Four police officers, a crime analyst  and a Parks Maintenance II position were new additions in 2023.  The increase was partially  offset with savings that resulted from employee vacancies, leave without pay and lower hours  for seasonal positions.     Motor Fuels. Motor fuels expense is $91,000 higher than the budget and $55,000 higher than  in 2022 as fuel costs continue to rise.  The City does have a contract for fuel prices in place to  mitigate some of the price increases.      Street Chemicals.   2023 deicing materials were equal to budget estimates and under the  amended budget by $10,000.  2023 costs exceeded the prior year by $24,000. Purchases at the  Page 88 of 95 iv    end of the 2023‐2024 winter season will be stored at the central maintenance facility and will  be utilized in the late fall if needed. City staff complete a mid‐year inventory calculation.       Utilities.  Electric costs in 2023 were $84,000 lower than in 2022 and within the amended  budget.  Energy saving improvements in lighting and building automation continues to help in  reducing energy consumption.   Natural gas costs in 2023 were $77,000 lower than in 2022.      Mayor and Council. Expenditures are consistent with the amended budget and with the same  period in 2022.     City Administration. Expenditures are consistent with the amended budget.  Overall are higher  than the prior year due to a community survey and update to the Envision Lakeville report.     City Clerk. Expenditures are down compared to the prior year due to election costs in the Fall  of 2022.  The County had billed for election equipment costs in the first quarter of 2022.     Legal. Legal fees were 24 percent under budget estimates. Expenditures are slightly lower than  the same period in 2022.     Planning. Salaries are down in 2023 due to the vacant Planning & Zoning Specialist position  being filled with an outside contractor.      Community and Economic Development. Salaries are down in 2023 due to retirement of  Community and Economic Development director in 2022 and related severance payout.     Inspections. Salaries are higher than budget and the previous year due to filling a vacant  Building Inspector position during the first quarter of 2023 and the retirement of the Building  Official.   Capital outlay exceeded budget primarily due to the delays between ordering and  receiving vehicles.      General Government Facilities. Salaries are up over the same period in 2022 resulting from  employee transitions and vacancies in 2022.  Commodities and other charges and services are  within the amended budget estimates.     Finance Department. Expenditures overall are in line with the amended budget.   Personnel  costs are higher than the previous year due to staff transitioning through the step process and  additional temporary resources for the ERP implementation.       Information Technology. Timing of annual maintenance agreements can impact the expense  comparison each year.  However, this department is lower than budget estimates due to  vacancies due to internal promotions within the department and back filling.     Human Resources.  Personnel costs are below budget and higher than 2022 due to hiring a new  Human Resources Technician in December 2022. Professional fees are up over the prior year  due to ERP‐related transition costs for upgrading NEOGOV and beginning the setup of UKG  Page 89 of 95 v    time and attendance software.  Professional fees are also higher in 2023 due to contract  negotiation renewal discussions.     Police. Personnel services are below budget due to employee vacancies throughout the year.  In 2023 there were four new police officer positions added and a crime analyst.  Dakota 911  membership fees increased $85,000 from 2022 and vary each year due to CAD call volume.   Other charges and services were higher than budget due to increase utility costs and increase  in domestic preparedness fees from Dakota County.     Fire. Personnel services are under budget and higher than the prior year due to the addition of  a Fire Inspector in 2023.   Firefighter pay is contingent on the number of fire calls during the  year. Commodities are exceeding prior year due to acquisition of wireless headsets (14) in the  first quarter to ensure delivery in 2023.      Engineering/GIS. Personnel services are below budget estimates due to employee vacancies in  the Assistant City Engineer and Civil Engineer positions. This is contributing to the increase in  professional engineering fees needed to complete projects.      Forestry Previously this division was included in the Enterprise Fund Environmental Resources  and has since transitioned to the General Fund as a separate division.  Personnel services are  below budget estimates due to employee transition from a vacancy at the end of 2022 and  replaced at a lower rate.     Construction Services. Personnel services are below budget due to position vacancies.      Streets. Personnel services are slightly under budget due to employee transitions and over the  prior year due to increases in overtime cost related to snow events. Commodities are up over  the prior year due to additional chemicals purchased at the end of the 2023/2024 winter  season which will be stored for use in the fall if needed.      Parks. Personnel services are below budget due to employee transitions and higher than the  previous year due to the additional Park Maintenance II position.       Recreation, Heritage Center and Arts Center. Expenses are higher than budget due to employee  transitions and overlap between positions.   Arts Center expenses are exceeding the prior year  due to added costs associated with the Art Board Grant awarded in 2023. The Shuttered Venue  grant period expired in 2022.  Page 90 of 95 i      General Fund     ‐     Fund Balance     Fund Balance.  During the adoption of the 2024 budget, the 2023 unrestricted Fund balance  was projected to be $20,873,739 with a 56% fund balance ratio to current expenditures. The  actual unrestricted fund balance is anticipated to be $22,150,714 – or 61% of current  expenditures.  That is a $1.28 million increase resulting from the previous discussions.     The estimated unrestricted fund balance ratio is 54.1% of next year’s budgeted expenditures  which is higher than 40‐50% range established by City policy.     Assigned Fund Balance.  The City Council approved the use of $1,528,000 of General Fund  balance as a funding source for the 2024 General Fund Budget.        Page 91 of 95 Unaudited   2023 2023 Variance from Variance from Adopted Amended 12/31/23 Amended Budget Actual 12/31/22 2022 Actual Budget Budget Actual Positive (Neg)Percent Actual Positive(Neg) Revenues General property taxes 26,954,875$     26,954,875$     26,701,304$     (253,571)$             99.1% 25,488,775$    1,212,529$      Licenses and permits 2,943,346          3,316,346          3,489,815          173,469                 105.2% 3,843,424        (353,609)          Intergovernmental 1,512,699          3,504,175          3,608,385          104,210                 103.0% 6,314,319        (2,705,934)       Charges for services 3,392,946          3,717,502          3,453,349          (264,153)               92.9% 3,847,524        (394,175)          Court fines 240,000             240,000             238,097             (1,903)                    99.2% 224,461           13,636              Investment income 281,000             281,000             729,681             448,681                 259.7% (1,292,356)       2,022,037        Miscellaneous 46,257               46,257               174,210             127,953                 376.6%117,361           56,849                Total revenues 35,371,123       38,060,155       38,394,841       334,686                 100.9%38,543,508      (148,667)          Expenditures Mayor and Council 138,778             131,869             125,353             6,516                     95.1% 132,295           6,942                Committees and Commissions 127,877             133,622             132,694             928                        99.3% 117,501           (15,193)            City Administration 629,559             601,516             591,586             9,930                     98.3% 539,024           (52,562)            City Clerk 183,931             198,546             197,360             1,186                     99.4% 308,996           111,636           Legal Counsel 97,350               97,350               74,170               23,180                   76.2% 79,790              5,620                Planning 662,843             664,256             640,541             23,715                   96.4% 623,932           (16,609)            Community and Econ. Development 519,673             521,836             534,834             (12,998)                  102.5% 602,385           67,551              Inspections 1,936,637          1,857,140          1,902,352          (45,212)                  102.4% 1,835,664        (66,688)            General Government Facilities 684,889             591,083             575,273             15,810                   97.3% 621,474           46,201              Finance 1,134,847          1,174,106          1,159,904          14,202                   98.8% 1,071,071        (88,833)            Information Systems 1,072,579          857,604             721,101             136,503                 84.1% 955,398           234,297           Human Resources 887,396             727,323             663,385             63,938                   91.2% 496,840           (166,545)          Insurance 250,000             250,000             250,000              ‐                              100.0% 285,000           35,000              Police 14,311,128       14,448,605       14,436,535       12,070                   99.9% 13,241,685      (1,194,850)       Fire 2,666,423          3,067,511          2,884,992          182,519                 94.0% 2,446,597        (438,395)          Engineering 1,120,397          906,557             767,475             139,082                 84.7% 925,411           157,936           Forestry 566,047             566,379             543,397             22,982                   95.9%‐                        (543,397)          Construction Services 621,899             701,328             587,436             113,892                 83.8% 452,332           (135,104)          Streets 4,064,622          3,989,832          4,018,033          (28,201)                  100.7% 3,815,075        (202,958)          Parks 3,470,194          3,498,227          3,382,318          115,909                 96.7% 3,055,026        (327,292)          Recreation 847,937             901,685             890,163             11,522                   98.7% 888,542           (1,621)              Heritage Center 140,673             141,046             138,933             2,113                     98.5% 127,203           (11,730)            Arts Center 763,663             958,594             1,016,290          (57,696)                  106.0% 801,732           (214,558)            Total expenditures 36,899,342       36,986,015       36,234,125       751,890                 98.0%33,422,973      (2,811,152)       Excess (deficiency) of revenues over expenditures (1,528,219)        1,074,140          2,160,716          1,086,576             5,120,535        (2,959,819)       Other financing sources (uses) Transfer from other funds 1,171,099          817,523             372,169             (445,354)               45.5% (1,210,768)       1,582,937        Transfer to other funds (2,353,880)        (2,353,880)        (2,253,880)        100,000                 95.8%(5,453,977)       3,200,097        Total other financing sources (uses) (1,182,781)        (1,536,357)        (1,881,711)        (345,354)               (6,664,745)       4,783,034        Net change in fund balance (2,711,000)        (462,217)            279,005             741,222                 (1,544,210)       1,823,215        Beginning fund balance 21,881,813       22,007,407       22,007,407        ‐                              23,985,822      (1,978,415)       Ending fund balance 19,170,813$     21,545,190$     22,286,412$     741,222$              22,441,612$    (155,200)$        Adj fund bal, Dec 31 (net of restricte 18,499,362$        20,873,739$        22,150,714$    1,276,975             21,770,162$    Net change in fund balance percenta (12.4%)(2.1%)1.3%(6.4%) Ratio: Fund Bal to CY expenditures 50.1%56.4%61.1% Ratio: Fund Bal to NY expenditures 48.7%51.0%54.1% Expense Summary: Personnel services 27,622,402       27,308,457       26,665,203       643,254                97.6%25,105,524     (1,559,679)      Commodities 2,211,459         2,266,459         2,362,387         (95,928)                 104.2%1,857,318       (505,069)         Other charges and services 6,967,481         7,234,617         7,067,786         166,831                97.7%6,337,977       (729,809)         Capital outlay 98,000              176,482            138,749            37,733                  78.6%122,154           (16,595)           36,899,342       36,986,015       36,234,125       751,890                98.0%33,422,973     (2,811,152)      General Fund Summary Statement of Revenues, Expenditures and Changes in Fund Balances For the Twelve Month Period Ended December 31, 2023 Comparative Page 92 of 95 Unaudited General Fund Schedule of Expenditures 2023 2023 Variance from Variance from Adopted Amended 12/31/23 Amended Budget Actual 12/31/22 2022 Actual Expenditures Budget Budget Actual Positive (Neg)Percent Actual Positive(Neg) Mayor and Council Personnel services 62,561$             55,652$             51,908$             3,744$                   93% 60,166$           8,258$              Commodities 50                       50                       140                     (90)                         280% 57                     (83)                    Other charges and services 76,167               76,167               73,305               2,862                     96%72,072              (1,233)              Total 138,778             131,869             125,353             6,516                     95%132,295           6,942                Committees/Commissions Personnel services 77,677               78,562               76,375               2,187                     97% 70,470              (5,905)              Commodities 2,500                 2,500                 94                       2,406                     4% 1,842                1,748                Other charges and services 47,700               52,560               56,225               (3,665)                    107%45,189              (11,036)            Total 127,877             133,622             132,694             928                        99%117,501           (15,193)            City Administration Personnel services 525,250             478,207             477,955             252                        100% 470,529           (7,426)              Commodities 4,500                 4,500                 1,168                 3,332                     26% 3,401                2,233                Other charges and services 99,809               118,809             110,934             7,875                     93% 65,094              (45,840)            Capital outlay ‐                      ‐                     1,529                 (1,529)                    0%‐                    (1,529)              Total 629,559             601,516             591,586             9,930                     98%539,024           (52,562)            City Clerk Personnel services 143,506             143,691             143,568             123                        100% 262,771           119,203           Commodities 300                     300                     1,932                 (1,632)                    644% 1,784                (148)                  Other charges and services 40,125               54,555               51,860               2,695                     95%44,441              (7,419)              Total 183,931             198,546             197,360             1,186                     99%308,996           111,636           Legal Counsel Other charges and services 97,350               97,350               74,170               23,180                   76%79,790              5,620                Planning Personnel services 643,697             645,110             632,621             12,489                   98% 614,358           (18,263)            Commodities 1,901                 1,901                 1,635                 266                        86% 2,615                980                   Other charges and services 17,245               17,245               6,285                 10,960                   36%6,959                674                   Total 662,843             664,256             640,541             23,715                   96%623,932           (16,609)            Community and Economic Development Personnel services 383,365             383,538             382,254             1,284                     100% 441,378           59,124              Commodities 275                     275                     151                     124                        55% 495                   344                   Other charges and services 136,033             138,023             152,429             (14,406)                  110%160,512           8,083                Total 519,673             521,836             534,834             (12,998)                  102%602,385           67,551              Inspection Personnel services 1,511,300          1,380,823          1,449,132          (68,309)                  105% 1,362,074        (87,058)            Commodities 16,207               16,207               13,486               2,721                     83% 20,695              7,209                Other charges and services 347,130             398,110             408,637             (10,527)                  103% 367,418           (41,219)            Capital outlay 62,000               62,000               31,097               30,903                   50%85,477              54,380              Total 1,936,637          1,857,140          1,902,352          (45,212)                  102%1,835,664        (66,688)            (continued) Comparative Page 93 of 95 Unaudited General Fund Schedule of Expenditures 2023 2023 Variance from Variance from Adopted Amended 12/31/23 Amended Budget Actual 12/31/22 2022 Actual Expenditures (continued)Budget Budget Actual Positive (Neg)Percent Actual Positive(Neg) General Government Facilities Personnel services 415,602$           323,926$           323,114$           812$                      100% 381,851$         58,737$           Commodities 22,898               22,898               21,218               1,680                     93% 21,164              (54)                    Other charges and services 246,389             244,259             230,941             13,318                   95%218,459           (12,482)            Total 684,889             591,083             575,273             15,810                   97%621,474           46,201              Finance Personnel services 950,108             1,018,151          1,016,143          2,008                     100% 872,760           (143,383)          Commodities 1,400                 1,400                 2,578                 (1,178)                    184% 2,451                (127)                  Other charges and services 183,339             154,555             139,649             14,906                   90% 187,422           47,773              Capital outlay ‐                      ‐                     1,534                 (1,534)                    0%8,438                6,904                Total 1,134,847          1,174,106          1,159,904          14,202                   99%1,071,071        (88,833)            Information Technology Personnel services 555,347             340,372             309,465             30,907                   91% 524,798           215,333           Commodities 3,800                 3,800                 2,903                 897                        76% 5,128                2,225                Other charges and services 513,432             513,432             407,134             106,298                 79% 425,472           18,338              Capital outlay ‐                      ‐                     1,599                 (1,599)                    0%‐                    (1,599)              Total 1,072,579          857,604             721,101             136,503                 84%955,398           234,297           Human Resources Personnel services 716,626             499,013             442,183             56,830                   89% 353,758           (88,425)            Commodities 1,975                 1,975                 1,734                 241                        88% 1,271                (463)                  Other charges and services 168,795             226,335             219,468             6,867                     97% 133,634           (85,834)            Capital outlay ‐                      ‐                      ‐                      ‐                         0%8,177                8,177                Total 887,396             727,323             663,385             63,938                   91%496,840           (166,545)          Insurance Other charges and services 250,000             250,000             250,000              ‐                         100%285,000           35,000              Police Personnel services 11,628,936       11,766,413       11,731,229       35,184                   100% 10,784,534      (946,695)          Commodities 497,057             497,057             485,699             11,358                   98% 380,271           (105,428)          Other charges and services 2,185,135          2,185,135          2,219,607          (34,472)                  102% 2,076,880        (142,727)          Capital outlay ‐                      ‐                      ‐                      ‐                         0%‐                     ‐                    Total 14,311,128       14,448,605       14,436,535       12,070                   100%13,241,685      (1,194,850)       Fire Personnel services 1,574,572          1,912,660          1,654,580          258,080                 87% 1,477,131        (177,449)          Fire Relief Contribution/State Aid 521,700             584,700             577,878             6,822                     99% 513,676           (64,202)            Commodities 225,645             225,645             283,890             (58,245)                  126% 142,116           (141,774)          Other charges and services 344,506             344,506             368,644             (24,138)                  107%313,674           (54,970)            Total 2,666,423          3,067,511          2,884,992          182,519                 94%2,446,597        (438,395)          (continued) Comparative Page 94 of 95 Unaudited General Fund Schedule of Expenditures 2023 2023 Variance from Variance from Adopted Amended 12/31/23 Amended Budget Actual 12/31/22 2022 Actual Expenditures (continued)Budget Budget Actual Positive (Neg)Percent Actual Positive(Neg) Engineering Personnel services 951,500$           737,660$           628,373$           109,287$              85% 802,263$         173,890$         Commodities 8,786                 8,786                 6,665                 2,121                     76% 5,917                (748)                  Other charges and services 160,111             160,111             132,437             27,674                   83% 97,169              (35,268)            Capital outlay ‐                      ‐                      ‐                      ‐                         0%20,062              20,062              Total 1,120,397          906,557             767,475             139,082                 85%925,411           157,936           Forestry Personnel services 218,114             218,446             212,436$           6,010$                   97%‐$                  (212,436)$        Commodities 7,593                 7,593                 7,356                 237                        97%‐                    (7,356)              Other charges and services 340,340             340,340             323,610             16,730                   95%‐                    (323,610)          Capital outlay ‐                      ‐                     (5)                        5                             0%‐                    5                       Total 566,047             566,379             543,397             22,982                    ‐                        (543,397)          Construction Services Personnel services 591,652             592,599             485,491             107,108                 82% 415,312           (70,179)            Commodities 12,141               12,141               7,856                 4,285                     65% 8,433                577                   Other charges and services 18,106               18,106               15,608               2,498                     86% 28,587              12,979              Capital outlay ‐                     78,482               78,481               1                             100%‐                    (78,481)            Total 621,899             701,328             587,436             113,892                 84%452,332           (135,104)          Streets Personnel services 2,644,947          2,570,157          2,532,081          38,076                   99% 2,507,579        (24,502)            Commodities 993,915             993,915             1,018,402          (24,487)                  102% 895,540           (122,862)          Other charges and services 425,760             425,760             467,550             (41,790)                  110%411,956           (55,594)            Total 4,064,622          3,989,832          4,018,033          (28,201)                  101%3,815,075        (202,958)          Parks  Personnel services 2,500,425          2,528,458          2,454,874          73,584                   97% 2,185,343        (269,531)          Commodities 324,472             324,472             319,432             5,040                     98% 274,667           (44,765)            Other charges and services 645,297             645,297             608,012             37,285                   94%595,016           (12,996)            Total 3,470,194          3,498,227          3,382,318          115,909                 97%3,055,026        (327,292)          Recreation Personnel services 501,101             502,599             503,709             (1,110)                    100% 505,102           1,393                Commodities 31,844               31,844               34,461               (2,617)                    108% 31,298              (3,163)              Other charges and services 314,992             367,242             351,993             15,249                   96% 352,142           149                   Capital outlay ‐                      ‐                      ‐                      ‐                         0%‐                     ‐                    Total 847,937             901,685             890,163             11,522                   99%888,542           (1,621)              Heritage Center Personnel services 76,804               77,177               73,107               4,070                     95% 72,185              (922)                  Commodities 11,850               11,850               11,769               81                          99% 8,745                (3,024)              Other charges and services 52,019               52,019               54,057               (2,038)                    104%46,273              (7,784)              Total 140,673             141,046             138,933             2,113                     99%127,203           (11,730)            Arts Center Personnel services 427,612             470,543             506,727             (36,184)                  108% 427,486           (79,241)            Commodities 42,350               97,350               139,818             (42,468)                  144% 49,428              (90,390)            Other charges and services 257,701             354,701             345,231             9,470                     97% 324,818           (20,413)            Capital outlay 36,000               36,000               24,514               11,486                   68%‐                    (24,514)            Total 763,663             958,594             1,016,290          (57,696)                  106%801,732           (214,558)          Comparative Page 95 of 95